Cabka N.V.

Annual Report (ESEF) • Apr 15, 2025

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Engineers meticulously discussed its structure, durability, and recyclability. It will be manufactured from recycled plastic, and the material engineers will identify the optimal blend to ensure its maximum strength and longevity. With clear purpose: designed to support efficient and sustainable logistics. Disclaimer This PDF is a copy of the annual report of Cabka N.V. for the year 2024 and is not in the ESEF format as specified by the European Commission Regulatory Technical Standard on ESEF (Regulation (EU) 2019/815). The ESEF reporting package is available on our website at www.investors.cabka.com/reporting-and- investor-library/reports-and-presentation. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 3 Message from the CEO Dear Stakeholders, Upon joining Cabka, I discovered a purpose that goes beyond mere business objectives—creating a future-fit company that transforms challenges into opportunities. Sustainability is not just a strategy; it is our responsibility. At Cabka, we take what others discard and turn it into valuable, meaningful products, demonstrating that waste can indeed become a resource. Reflecting on my first half year as CEO of Cabka, I am filled with a deep sense of pride in what this company represents. Cabka possesses great potential, and I look forward to realizing this full potential together with the individuals who have made Cabka what it is today. 2024: A Year of Rebuilding and Reinforcement The year 2024 was marked by efforts to rebuild and reinforce the company’s foundation, laying the groundwork for sustainable and accelerated growth. Despite challenging market conditions, we made meaningful progress in turning our company around and positioning Cabka as a leader in sustainable innovation within the materials industry. A Foundation Built on Sustainability and Innovation Cabka's core strength lies in its unique ability to create value from sustainability. For three decades, we have seamlessly integrated recycling and materials expertise into our operations, enabling us to supply over half of our raw material needs through backward integration. This approach goes beyond mere compliance; it embodies our commitment to delivering solutions that are inherently circular, reducing waste, and minimizing our environmental footprint. Our innovation extends far beyond recycling. With the support of our dedicated Innovation Center in Valencia, we are pushing the boundaries of product design, material reuse, and customized solutions for our clients. These innovations not only set us apart from our competitors but also reflect our passion for addressing the challenges of tomorrow through creativity, respect, and accountability. 2024: Challenges and Achievements Over the past year, we have navigated several external pressures such as fluctuating raw material costs, increased global economic uncertainty, and shifting geopolitical landscapes. This especially impacted our sales, where we have seen a sales decline in Customized Solutions in the US and in Contract Manufacturing. Despite these headwinds, our team has delivered results that underscore the resilience of our business model. A key milestone for 2024 was enhancing our operational efficiency. By renewing our focus on procurement strategies and implementing automation and IT enhancements, we have identified opportunities to streamline costs while maintaining our commitment to quality and timely delivery. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 4 Additionally, we prioritized strengthening our sales capabilities, boosting “When I joined Cabka, I discovered a purpose that goes far beyond business—creating a future-fit company that transforms challenges into opportunities. Sustainability isn’t just a strategy; it’s our responsibility. At Cabka, we take what others discard and turn it into valuable, meaningful products, proving that waste can become a resource.” our sales force throughout the year. This focus aligns with our strategic vision of geographic expansion and deeper engagement with key customers in high-growth markets. A Commitment to Our People and Values Our employees are the cornerstone of Cabka's success. From the leadership team to the production floor, every individual plays an integral role in our journey. We are committed to investing in leadership development, enhancing our cultural alignment, and fostering an entrepreneurial spirit throughout our organization. Our core values—Passion, Creativity, Respect, and Accountability—serve as guiding principles in every decision we make. These values are not just words; they are the principles that define who we are and how we operate. Looking Ahead to 2025 and Beyond We are at a pivotal moment in Cabka’s journey. Our mid-term 2025 strategy is clear: drive growth through innovation, operational excellence, and sustainability, with a commitment in to deliver on our plan through cost savings, efficiencies and growth. We have implemented a cash saving and operational excellence program, SHIFT, which is designed to reduce our cost base and increase our operational excellence. Together, we will build a stronger, more resilient Cabka that delivers value for all. Our strategy for 2025 is clear: execute, innovate, and grow. • Execution: The cornerstone of our immediate strategy is delivering on our commitments. By focusing on cash generation and operational excellence, we aim to foster trust among our stakeholders and establish a solid financial foundation for future growth. • Innovation: We will continue to invest in research and development, exploring next-generation solutions in track-and-trace technology, IoT-enabled products, and tailored packaging systems. These innovations will not only enhance our product offerings, but also reinforce our position as a forward-thinking leader in the circular economy. • Growth: Growth will be driven by expanding our presence in the U.S. and Eastern Europe, as well as exploring complementary product lines within the reusable transport packaging (RTP) segment, all depending on market conditions. Partnerships with strategic customers will remain a priority, ensuring long-term value creation. The journey ahead is not without challenges, as market circumstances remain challenging given the current macro environment, but I am confident in Cabka's ability to navigate them. With a clear strategy, a commitment to sustainability, and the unwavering dedication of our team, we are well-positioned to achieve our goals. Together, we will build on the foundation of 2024 to drive growth, innovation, and value creation for all our stakeholders in 2025 and beyond. A Word of Thanks I would like to extend my gratitude to our customers for the trust they place in us and for continually challenging us to develop innovative solutions that meet their needs. Additionally, a big thank you to our dedicated employees, whose passion for working at a company that contributes to a more sustainable world and a more circular economy matches my own. Finally, I would like to thank our shareholders for their unwavering support and their confidence in Cabka during the past year. It is my aim to ensure that all our stakeholders will benefit from the realization of Cabka’s full potential in the years to come. Alexander Masharov CEO, Cabka About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 5 Key Figures and Impact Financial Revenue EBITDA Margin (in € million) % 181.9 11.3% ↓ 8% 2023: 196.9 ↓ 1pp 2023: 12.4% Gross Margin Net Working Capital % (in € million) 50.9% 26.5 ↑ 3pp 2023: 48.3% ↑ 2% 2023: 27.1 Net Income EU Taxonomy (in € million) % of revenue aligned -4.2 52% ↓ 285% 2023: 2.3 ↑ 4pp 2023: 48% Growth CAPEX (in € million) 7.7 ↓ 45% 2023: 14.0 Environment Scope 1 & 2 Emissions Scope 3 Emissions (in tonnes CO2e) (in tonnes CO2e) 45,021 163,234 ↓ 4% 2023: 46,885 ↓ 9% 2023: 179,366 Raw Material Intake Recycled Material Intake (in kt) (in %) 145 88% ↓ 8% 2023: 157 ↓ 1pp 2023: 89% Energy Consumption Renewable Energy (in MWh) (in %) 109,849 11.9% ↑ 9% 2023: 101,126 ↑ 7pp 2023: 5.2% Waste Generated Suppliers Assessed on ESG (in tonnes) (in % of suppliers) 21,755 92% n/a 2023: n/a ↑ 53pp 2023: 43% Social Average FTE Females in Senior Roles (number) (in %) 611 20% ↑ 1% 2023: 603 ↓ 4pp 2023: 24% Signed Code of Ethics Female Employees (% of all Cabka employees) ( % of total workforce) 88% 20% ↑ 22pp 2023: 66% ↑ 4pp 2023: 16% Average Training Hours Work-Related Accidents (in number) (in number) 6.44 59 n/a 2023: n/a n/a 2023: n/a Reported incidents (in number) 2 n/a 2023: n/a About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 6 Our Profile Cabka is an industry leader in producing innovative and sustainable transport packaging solutions made from recycled plastic. With over 30 years of experience, we specialize in creating high-quality pallets and large containers that drive efficiency and sustainability across supply chains. Our commitment to circularity and environmental responsibility is at the core of our business, as we transform plastic waste into valuable resources that benefit industries worldwide. Cabka operates internationally, with a strong presence in key markets in Europe and in the United States. Our extensive network of production facilities, distribution partners, and sales offices ensures that we can meet the needs of our customers wherever they are located. Our international footprint allows us to deliver high-quality products and services efficiently and effectively. Our Locations Cabka N.V. is headquartered in the Netherlands and maintains an international presence through multiple production sites and corporate support functions strategically located across Europe and in the United states. Our corporate support functions are based in Amsterdam, the Netherlands, and Berlin, Germany, while our innovation, marketing, and sales are concentrated in Valencia, Spain. Revenue in US and RoW North America (in € million) 21.5 ↓ 34% 2023: 32.6 RoW (in € million) 5.5 ↑ 34% 2023: 4.1 Our operations and value creation are primarily driven by six production locations: two factories in Germany (both in Weira, Thuringia); two factories in Belgium (Ieper and Herstal); one factory in USA (St. Louis, Missouri) and one factory in Spain. Additionally, we have tolling agreements with four contract manufacturers to expand our production capacities. Revenue in Europe DACH West & Nordics (in € million) (in € million) 58.9 60.0 ↓ 3% 2023: 60.8 ↓ 5% 2023: 63.1 CEE South (in € million) (in € million) 10.0 26.0 ↓ 7% 2023: 10.8 ↑ 2% 2023: 25.5 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 7 Our Purpose Our Vision A circular economy built on closed-loop logistic solutions utilizing sustainable material streams. At Cabka, our purpose is to drive positive transformation. We aim to revolutionize the way goods move around the world, benefiting the industry, the environment, our employees, and all our stakeholders. By converting plastic waste into reusable transport packaging, we turn discarded materials into valuable resources. Our transformative power lies in recognizing that while resources are limited, possibilities are endless. Our Mission Cabka is changing the way goods move around the world. We take plastic waste and transform it into reusable transport packaging (RTP) by integrating material, design, and process technology. Cabka is the answer for any company seeking to ship goods at peak efficiency and with the smallest possible environmental impact. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 8 Core Activities and Products Product Portfolio Cabka’s RTP product portfolio consists of over 150 different pallets and large containers. The ECO product portfolio consists of 3 product lines. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 9 Since the company was founded in 1994, Cabka has been dedicated to transforming plastic waste into reusable transport packaging (RTP) products. Thanks to many years of experience and the work of our engineers at our state-of-the-art Innovation Center, we are now leading the industry with our integrated approach closing the loop from waste to recycling to manufacturing. Our reusable packaging solutions provide an efficient and safe method Pioneering Innovation: Transforming Recycled Plastic Technology for over 30 Years Our work is fuelled by innovation. For over 30 years, we have pioneered technology for processing recycled plastic. Our commitment to innovation extends beyond product development. We aim to transform entire systems and challenge the status quo, pushing beyond “good enough” to achieve excellence. Innovation at Cabka is based on a constant focus on research and development, as well as the courage and curiosity to explore new paths. for transporting, storing and distributing goods across various segments in the supply chain. These products are designed for multiple trips in closed-loop environments and well-managed supply chains. They are also commonly used in managed open-loop systems, including reverse logistics, to return empty transport packaging products such as pallets or large containers for reuse or replenishment. At the end of their life, all of our transport packaging products are fully recyclable and can be reused for the manufacturing of new products, making them a truly circular solution. Transport packaging products typically comprise pallets, boxes, and containers in different sizes and weights, as well as auxiliary products such as divider sheets or protective dunnage for a broad set of target sectors and use cases. Cabka focuses solely on two high-value product categories in this market environment, i.e., pallets and large containers. Our products offer our customers significant reductions in their costs and carbon footprint. In addition to transport packaging, we develop and produce ECO Products. These are also made from plastic waste and are used in road construction, traffic safety systems and gardening. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 10 Cabka’s Product-Market- Nest Pallets Lightweight and easy to handle, Cabka’s Nest plastic pallets are highly versatile for many environments. Nestability and reliability are paramount when it comes to Nest pallets, they are built to interlock, making them ideal for saving space during storage and transportation (up to 4 times less space required). Customers can choose from multi- trip or export Nest pallets, in varying dimensions and with optional attachable skids, to move shipments of different sizes and weights safely and securely. Endur Pallets These high-performance pallets have been designed to withstand heavy usage and significant impacts in high- traffic environments. They are ideal in high circulation situations and are versatile enough to meet almost any requirement. Some models are produced using gas injection, resulting in internal cavities that provide enhanced support. Each pallet is highly resistant to bending, and performs exceptionally well in high-bay racking systems. They offer a high-quality, durable solution for storage and transportation needs. Large Containers Cabka offers a portfolio of large containers ideal for almost any shipping, storage, or even retail environment. We offer two large container solutions: the CabCube (foldable large container) – a foldable three-piece sleeve pack container designed for transportation of bulk and large volume parts, and the Pallet Box (rigid large container) – a rigid high-volume container ideal for safe storage and transportation of loose products or bulk goods. Eco Pallets For more demanding applications, Cabka offers its Eco Pallets, which are designed for multi-trip or export uses. These pallets are ideal for automated conveyors and high stacking. They can handle heavy loads while maintaining a low tare weight. Additionally, they offer options for traceability and runner variations, making the Eco pallets versatile for various applications. Hygienic Pallets Cabka’s Hygienic pallets have been specifically designed to satisfy the need for high performance and the international community’s strict hygienic standards. Made from food- safe HDPE, the lightweight Hygienic plastic pallets are easy to clean and dry, with smooth, closed surfaces. Without surface cavities in the molded plastic, dirt does not accumulate, making them safe for their sensitive cargo. Customized Solutions Cabka offers logistics solutions tailored to a customer's specific supply chain, aimed at reducing costs and carbon footprint. These solutions include both pallets and large containers. Many of the products developed in collaboration with customers have become industry standards. Notable examples include various beverage and pooling pallets, as well as the Light Foldable Containers introduced in the Automotive and Retail industries. Combination Overview Cabka caters solutions for a variety of sectors, often tailored to their unique set of use cases. This comprehensive coverage is constantly being improved through product modifications and a strong development pipeline. The following chart provides an overview of Cabka’s current sector coverage: Services In addition to its products, Cabka offers a range of advanced services focused on further enhancing sustainability and supporting our customers’ in their journey towards fully circular logistical chains. These services include in-house tool manufacturing and recycling, providing a secure end-of-life solution for used pallets and containers. Eco Products Cabka’s Eco products are innovative and sustainable, made from unsorted mixed plastics that are 100% post-consumer plastic waste. These products are versatile and can be used in gardening and landscaping as well as for construction and transport. 1 https://www.reusables.org/wp-content/uploads/2023/09/2023-State-of-the-Reusable-Packaging-Industry-Report-Final.pdf About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 11 Trends and Developments Market Reusable transport packaging (RTP) products are used for the storage and transportation of goods along the entire value chain. Transport packaging is comprised of pallets, boxes, and containers in different sizes and weights, as well as auxiliary products such as divider sheets or protective dunnage for a broad set of target sectors and use cases. Cabka focuses solely on the two high-value product categories in this market, i.e., pallets and large containers. In 2023, the global RTP market reached approximately US$ 107 billion 1. The market has realized a compound annual growth rate of 5.7% since 2020. This growth is largely driven by rapid and frequent changes in international supply chain landscapes and the constant rise of e- commerce. As logistics excellence becomes an increasingly important strategic differentiator in our interconnected global economy, more companies are re-evaluating and future-proofing their supply chains. This transformation is primarily driven by the need to enhance both the efficiency and sustainability of their logistic operations. Over the past decade, plastic pallets have gained significant traction due to their numerous advantages, gradually replacing their wooden counterparts. The global RTP market (including containers) is expected to reach US$ 143.7 billion in 2028, resulting in an expected average annual growth rate of 6.1%. External Developments Legislation Significant legislative developments have emerged concerning the Packaging and Packaging Waste Regulation (PPWR). The European Commission has proposed a comprehensive revision of the PPWR to address the growing environmental concerns associated with packaging waste. On December 16, 2024, the European Council formally adopted the new PPWR, making it legally binding across the European Union. This regulation aims to significantly reduce packaging waste and promote a circular economy by setting ambitious targets for reusable and recyclable packaging. Sustainability Companies are increasingly adopting circular business models and using sustainable products, with a strong focus on reusability, recyclability, and the use of recycled materials. In the context of sustainability, transport packaging made from plastic can offer significant advantages over traditional materials like wood and cardboard. Growing awareness of sustainability is driving the development of sustainable products and processes. With the binding commitments of the Paris Agreement to limit global warming, climate change action has become a core focus of corporate and regulatory agendas. Industry players must take action to monitor their emissions and enforce measures that support at least the 1.5°C target. This is especially true and challenging for the logistic and transport sector, which has historically been one of the major emitters of greenhouse gases. A crucial step to reduce the environmental footprint of transport packaging is to increase the number of trips a pallet is able to complete during its lifecycle. Plastic pallets have been proven to endure an average of 200 or more logistic trips, whereas wooden pallets About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 12 typically last for only about 5 trips before breaking or deteriorating due to external factors such as humidity, mold, or vermin infestation. Using recycled plastics instead of virgin plastic further reduces the overall environmental impact of pallets. This approach eliminates the need for primary raw materials and it prevents plastic waste streams from being incinerated or ending up in landfills. Additionally optimizing and customizing plastic pallets for specific customer needs can further decrease the product’s environmental footprint. At the end of their life, all of our transport packaging products are 100% recyclable and can be reused for the manufacturing of new products, making them a truly circular solution. Digitalization The RTP market has seen significant advancements in digitalization in recent times, enhancing supply chain efficiency and sustainability. Key developments include the integration of Internet of Things (IoT) and RFID technologies for real-time tracking and monitoring. IoT-enabled sensors and RFID tags have revolutionized the tracking and monitoring of reusable packaging, providing real-time data on the location, condition, and status of packaging assets, thus reducing the loss rates. Additionally, these digital tools are aiding in sustainability reporting by tracking the environmental impact of RTP assets. These innovations are transforming the RTP market, making it more efficient, transparent, and sustainable. Rationalization of logistic chains Companies are increasingly focused on optimizing transportation, return logistics, and storage cost while simultaneously aiming to reduce handling and cleaning times. The value proposition of plastic pallets fully aligns with these requirements due to their superior properties compared to wooden solutions. Plastic pallets offer higher precision in measurements and weight, consistent quality, and low breakage rates, making them an ideal choice for enhancing efficiency in logistics operations. Automation Robotics and automated handling systems are increasingly utilized to manage and handle reusable packaging materials. As more companies gradually adopt automated warehouse systems, which demand zero tolerance for system failures, the need for accurate, precise, and reliable carrier products tailored to the customers’ specific internal logistic process has grown. These systems reduce manual labor and minimize the risk of damage during transit, leading to improved inventory management, reduced losses, and optimized asset utilization. Economic Climate and the Impact on our Industries Since Cabka’s IPO in 2022, the company experienced a number of headwinds beyond the company’s immediate control. In 2022, the global economy gradually started to recover from the COVID-19 pandemic, characterized by increased consumer demand and economic growth. However, 2023 brought new challenges, including inflationary pressures and geopolitical tensions. The ongoing conflict in Ukraine had a significant impact on energy and raw material prices, which surged in an unprecedented way. The resulting exponential rise in costs led to severe upward pressure on prices and inflation creating a complex economic environment and challenging businesses and policymakers worldwide. The steep rise in interest rates notably affected our customers, leading to a significant destocking effect and restricting capital investments in most of Cabka’s end markets. This was especially evident in our U.S. business, where key customers cut back on their CAPEX spending. In 2024, the global economic landscape began to stabilize, with inflation rates gradually decreasing and central banks beginning to ease monetary policies. However interest rates remained higher than in prior years. The global Purchasing Managers' Index (PMI) data revealed a mixed landscape: while some regions experienced growth, the Eurozone and the United States showed signs of contraction. The Eurozone Manufacturing PMI reflected recessionary conditions throughout 2024, indicating a continued decline in manufacturing output and new orders. The economic climate in 2024 also had a profound impact on the performance in some of the industries we serve. For example in the automotive industry, some of our key customers struggled throughout 2024. Weak economic conditions, including high interest rates and rising vehicle prices resulting from lower governmental support programs, have curbed customer enthusiasm. Economic uncertainties and fluctuating consumer confidence also played a role in the decline. In the construction industry, the global economic environment remained challenging, with fluctuations in interest rates and inflation affecting the construction and concessions sectors. The Food and Beverage (F&B) industry is among those that utilize Cabka’s reusable plastic packaging. This is sensitive to economic conditions and has been vulnerable during these downturns. The F&B sector operates on thin profit margins, making it vulnerable to fluctuations in costs related to ingredients, labor, transport, utilities, rent, and regulatory compliance. While some industries experienced economic recovery and substantial growth in 2024, others faced slower growth and persistent financial challenges. As a result, many industries are postponing investing in optimizing their logistic processes, favoring short-term solutions above more durable and sustainable solutions that are more economical in the long run. However, we expect that the demand for reusable plastic packaging will rise considerably on the back of legislative requirements such as the PPWR and the CSRD and the adoption of smarter and more efficient logistic processes. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 13 History For over 30 years, Cabka has been a leader in transforming waste into valuable resources, driving sustainability and innovation. Our commitment to recycling and the circular economy has fueled our growth and positive environmental impact. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 14 Highlights 2024 2024 was a year of both challenges and great achievements for Cabka. Explore the key highlights that showcase our significant accomplishments this year. Cabka held a business update for DSC investors Niek Hoek was appointed as Chair of the Supervisory Board Became a member of the Plastics Recyclers Europe. By joining PRE, Cabka aligns itself with industry leaders dedicated to promoting high-quality recycling and the efficient use of plastic resources. Tim Litjens announced that he will step down as CEO in September Cabka received a B score in CDP Climate Assessment February February February March March May June August November November December Cabka and Red Bull announced a collaboration to improve supply chain sustainability by replacing wooden pallets with Cabka’s reusable BigBag S5 pallets, made from 100% recycled Cabka, in collaboration with CHEP, won the prestigious Red Dot Product Design Award in the Industrial Packaging category for the CHEP ZirConic® foldable large container. This award recognizes the innovative design, functionality, and sustainability of the CHEP ZirConic® container. Alexander Masharov appointed as the new Chief Executive Officer of Cabka Oliver Seidl was nominated for appointment as an interim member of the Supervisory Board, following the resignation of Manuel Beja. This appointment is subject to the approval of the Annual General Meeting of Shareholders. Cabka held its 2nd Capital Markets Day in Ieper, providing updates on strategic initiatives and financial performance. The Packaging & Packaging Waste Regulation (PPWR) was formally adopted by the European Council, setting clear targets to advance circularity and reduce waste in packaging. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 15 How We Create Value 16 Our Strategy 19 Value chain 20 Value Creation Model 22 Cabka’s Contribution to the SDGs 23 Stakeholders A Day in the Life of a Pallet Forged from Waste Molded by powerful injection molding machines, the Endur i7 emerged strong, solid, and ready for the challenge. Its materials originated from shredded, cleaned plastic waste—what was once packaging or a plastic product, is now destined for a new purpose. Quality checks confirmed: it is robust enough for countless journeys. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 16 Our Strategy The world is rapidly changing driven by increasing sustainability demands, evolving regulations, and shifting customer expectations. At Cabka transformation is not just an option; it is a necessity. We rethink materials, reinvent processes, and reimagine circularity. As pioneers in recycled plastic innovation, we see both challenge and opportunity in the global shift towards responsible production and waste reduction. Our strategy ensures Cabka adapts and thrives, delivering sustainable, high- performance solutions. By strengthening our core, expanding our recycling capabilities, and building a future fit organization, we create a resilient, agile and innovative Cabka - one that is fully aligned with the needs of tomorrow’s circular economy. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 17 Cabka’s three strategic pillars are: Cherish the Core of RTP One of our strategic objectives is to "Cherish the Core of RTP". As a customer-centric organization, we emphasize the importance of nurturing relationships with our customers. By prioritizing their needs, preferences, and experiences, we ensure that every customer relationship is well-maintained. Our collaborative design methodology, combined with our comprehensive understanding of customer supply chains, enables us to offer customized solutions, creating products that address the logistical challenges they encounter. We are committed to the following key initiatives: • Strengthening our core offerings: improving and developing our core portfolio and customized solutions to ensure that our offerings remain relevant and valuable to our customers. • Customer intimacy and collaboration: accelerating the roll-out of new co-developed products, working closely with our clients to innovate and meet their specific needs. • Market expansion in the US: continuing to invest in the US with a strategic focus on regaining market share by leveraging our expertise and resources to expand our presence and influence. • Global customer relations: strengthening connections with global partners to enhance our ability to deliver tailored solutions worldwide and maintain competitive advantage. Expand Recycling Our second strategic objective is focused on enhancing in-house recycling efforts and establishing new material partnerships to ensure a sustainable supply of materials for the future. Our extensive material formulation data base and deep integration into the global recycling network enable us to utilize recycled content effectively. By leveraging our material formulation data, we develop the optimal material formulas for our diverse range of products, with an emphasis on durability, cost- efficiency, and sustainability. To achieve this, we are committed to the following key initiatives: • In-house recycling and partnerships: intensifying our recycling efforts by developing an ECO business outlet in chemical recycling to contribute to a circular economy and ensure a sustainable supply of materials. • Extrusion technology: rolling out more extrusion technology to improve the efficiency and quality of our recycling processes. • Innovation in recycled products: expanding our knowledge of raw materials and leveraging our material formulation data base, we continuously develop new sustainable products. Future Fit Our third strategic objective is to ensure that our products and services are future fit, which emphasizes creating products intended for circular systems, transitioning from low-value to high-value added products not only for our company but also for our customers. Our exceptional product design skills guarantee that our solutions meet the highest sustainability and efficiency standards. By focusing on creating products that are more durable, repairable, and recyclable, we help foster a truly circular economy. Through our products, we enable our customers to transport their goods with maximum efficiency while also minimizing their environmental impact. To achieve this, we are committed to the following key initiatives: • Sustainability & innovation leadership: continuously innovating to introduce new products and services that meet the evolving needs of our existing and new customers. • Regulatory readiness & ESG leadership: leveraging our knowledge of Environmental, Social, and Governance (ESG) and the Packaging and Packaging Waste Regulation (PPWR) to ensure compliance with the highest sustainability standards. • Data-driven agility: embracing the Internet of Things (IoT), AI and analytics to enhance operational efficiency and optimize decision- making. Our strategic projects and solutions are supported by clear metrics and transparent reporting, ensuring we remain accountable and on track to achieve our goals. By driving these initiatives forward, we continue to create long-term value for our stakeholders while protecting the environment for future generations. Integrating Sustainability in our Strategy We believe that the most innovative solutions should also be the most sustainable. Our success is measured by our ability to create solutions that are optimal for both our customers and the environment. We are dedicated to being the circularity leader in our industry, ensuring that our products and practices contribute to a more sustainable and resilient world. To understand the evolving market and stakeholder expectations, we conducted a Double Materiality Assessment (DMA) to identify the most significant sustainability-related aspects (IROs) that impact our business and society. This analysis helps us prioritize actions that mitigate risks, seize opportunities, and enhance our positive impact. For more information, please refer to our sustainability statement in this report. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 18 Cabka's strategy is strongly linked with its sustainability-related goals and focuses on the following key elements: Circular Economy: We accelerate the transition to a circular economy by continuously increasing the use of recycled materials in our products and minimizing waste generation in our operations. Our goal is to maintain a share of recycled content above 80% and continuously work towards circularity. Climate Change and Energy: We support the Paris Agreement by setting near-term Science-Based Targets and aim to achieve a 100% share of renewable energy and be carbon neutral in our own operations by 2030. Sustainable procurement: We are committed to sustainable procurement practices, with a goal of assessing 100% of our key raw material suppliers on their ESG performance to inform our procurement strategy. Social Responsibility: We ensure a diverse and inclusive workplace, fostering a culture of safety and continuous improvement in occupational health. Innovation in Recycling: Our Innovation Center in Valencia is dedicated to developing new recycling technologies, establishing and testing new recycled materials for our production, and enhancing the performance of recycled plastic products. Addressing Challenges and Driving Solutions for a Circular Economy The path to achieving our sustainability goals is not without challenges. As a leader in the reusable plastic packaging industry, we face significant hurdles that require focused effort, strategic planning, and innovation. Main Challenges Ahead 1. Implementation of the EU Packaging and Packaging Waste Regulation (PPWR): The European Union’s PPWR introduces stricter requirements for recyclability, reuse, and the incorporation of recycled materials in packaging products. As a company specializing in sustainable plastic solutions, we must adapt to evolving regulatory standards, ensuring compliance while maintaining product performance and cost effectiveness. The transition requires investments in material innovation, advanced recycling technologies, and enhanced traceability of recycled content. 2. Increasing Demand for Recycled Materials: The growing market demand for recycled plastics presents both opportunities and challenges. As industries transition toward circular business models, securing a consistent supply of raw materials becomes increasingly difficult. This is further complicated by the emergence of chemical recycling technologies, which, while promising, pose a competitive risk to mechanical recycling by diverting plastic waste from traditional recycling streams. The potential for regulatory support and subsidies for chemical recycling could also affect the availability and pricing of mechanically recycled plastics, making it crucial for Cabka to differentiate its solutions through efficiency, quality, and environmental impact. To address these challenges and remain at the forefront of sustainability in the plastics industry, we are implementing a series of strategic solutions: 1. PPWR-Readiness in our Products and Organization: Cabka takes a proactive approach working with several associations and institutions in order to understand and anticipate potential implications for our business and industry, and to identify opportunities emerging from this regulation early on. We also maintain close contacts with our industry partners. Working together with suppliers and customers will be crucial for the successful implementation of this regulation, as it encompasses the entire value chain of packaging from manufacturing to usage and recycling. 2. Expanding Recycling Infrastructure: Aligned with our strategic pillar, we are focussing on enhancing our in-house recycling efforts, investing in advanced recycling technologies to enhance the efficiency and scalability of our operations. These innovations allow us to process greater volumes of post-consumer and post-industrial plastic waste while maintaining high quality standards. Conclusion: Leading with Purpose Cabka’s transformation is driven by purpose—ensuring that sustainability and profitability go hand in hand. As we move forward, we remain guided by our core values—Passion, Creativity, Respect, and Accountability— ensuring that every innovation, every investment, and every decision strengthens our position as a leader in the circular economy. Transformation Matters—Cabka is evolving to create long-term value for our customers, society, and the planet. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 19 Value Chain Value Chain Overview Cabka is dedicated to creating transformative packaging solutions which facilitate the sustainable movement of goods around the world. Our value chain is designed to maximize the use of recycled materials and minimize environmental impact, ensuring a closed-loop system that promotes sustainability at every stage. Feedstock We transform post-consumer and post- industrial plastic waste into Reusable Transport Packaging (RTP) and ECO Products. Our buyback program allows us to recycle end-of-life RTP that we buy back from customers. In addition to recycling materials in-house at our recycling facilities, we also source already recycled plastic material from our supply chain partners. For applications where our customers require stringent hygienic standards, we use primary materials, although this constitutes only a small portion of our overall production. Recycling A substantial part of the plastic waste used in our manufacturing processes is recycled at our in-house recycling facilities. We offer our customers a buy- back program to allow them to return used products to Cabka at the end of life of the product. These products are then processed through our recycling processes, contributing to the production of new products. Innovation and Manufacturing At our Innovation Center in Valencia, we continuously develop and refine our products and our manufacturing and recycling processes, ensuring we meet the evolving needs of our customers and remain at the forefront of sustainable packaging. Our RTP product range includes durable containers, pallets and other products designed for repeated use in the transport and storage of goods. Our ECO Product range comprises products that are used in road construction, traffic safety systems and gardening. Commercialization Our products make their way to our customers all over the globe to fulfill their purpose of increasing the efficiency and sustainability of our customers’ logistic systems. After fulfilling their duty and finally reaching the end of their life, they can be fully recycled due to their sophisticated design, and used as feedstock in new RTP solutions. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 20 Value Creation Model About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 21 Our value creation model is based on the International Integrated Reporting Framework (IIRC) and illustrates how Cabka’s business model generates long-term value for our stakeholders, society, and the environment. This model serves as a summary and does not provide an exhaustive overview of Cabka’s business activities and the inputs it uses and the outputs it produces. All capitals are interconnected and collectively form the foundation of our business model. Cabka aligns its value creation with the UN Sustainable Development Goals (SDGs) to demonstrate our contribution to achieving these targets. Financial Capital Investors and key participants in the capital market, including financial institutions, provide Cabka with the necessary funds to conduct our business activities and invest in assets. This financial capital supports the operation and expansion of our business, enabling sustainable growth and cash flow generation. In turn, this creates long-term value for the company, our shareholders, and other stakeholders, for example in the form of dividends, increased share price, paid interest, and repayment of debt. Manufactured Capital Manufactured capital includes the physical assets and equipment that enable our activities as a recycling and manufacturing business, such as machinery and tools, facilities, and vehicles. Such assets are selected based on our specific operational and sustainability requirements. Human and Intellectual Capital Our goal is to foster an inclusive, safe, and healthy work environment where everyone can thrive and grow. Cabka’s intellectual capital is formed by the collective knowledge and expertise of our workforce developed over three decades, representing one of our most valuable assets. We are committed to continuously enhance the skills and competencies of our employees. Social Capital Our ability to create long-term value is shaped by our relationships with our key stakeholders, including customers and business partners, suppliers, employees, authorities, and communities. We are committed to fostering robust relationships through active engagement on relevant issues and collaboration guided by the needs of our stakeholders. Natural Capital Natural capital for Cabka consists of the energy, water, and plastic material required to manufacture our products and carry out our business activities. Fossil fuels used for creating energy or primary plastics create emissions that contribute to poor air quality and climate change. We are actively working towards reducing any negative impacts connected to the output from the use of fossil-fuel based energy at Cabka. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 22 Cabka’s Contribution to the SDGs As part of Cabka’s ESG strategy development, our management of our material topics has been assessed on how we can contribute to the United Nations Sustainable Development Goals (SDGs). We have selected the SDGs that are most aligned with the results of our double materiality assessment and therefore with our operations and what we stand for as a global enterprise. Throughout the following ESRS statements, the individual SDGs are also mapped against the different topics. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 23 Stakeholders KEY STAKEHOLDERS CABKA’S UNDERSTANDING OF THEIR VIEWS AND INTERESTS Cabka’s Supervisory Board Focused on ensuring strong corporate governance, long-term strategic growth, and responsible business practices aligned with shareholder values and business ethics standards Our employees Expectations regarding job security, career development opportunities, and a positive workplace environment Investors Interested in financial performance, return on investment, transparency, and Cabka’s potential for sustainable growth and innovation Suppliers Primarily interested in the volume of business Cabka provides, timely payments, and favorable pricing agreements Local communities Expect responsible corporate citizenship, community engagement, and contributions to local economy and social well-being Customers Seek strong and reliable partnerships that match their ethical, environmental, and economic values, and collaborative innovation to support a sustainable and efficient supply chain Value chain workers Concerned about fair compensation, safe working conditions, and the ethical standards of companies within the supply chain We define stakeholders as people or entities who can influence or be influenced by our business activities and decisions, in line with the definition for stakeholders determined in Annex II of the Commission Delegated Regulation (EU) 2023/2772. Stakeholders’ Views and Interests Our key stakeholders and their opinions are critical to our business decisions. Hence, it is key to know the needs and expectations of customers, investors, local communities, suppliers, and our people. It is also a core component of building and managing a robust ESG strategy. Continuous stakeholder engagement informs our ESG strategy and has confirmed our key topics and nurtured our future action plans. Cabka’s stakeholders represent a diverse range of interests and perspectives, each approaching us with unique expectations. We are committed to meeting these varied needs and maintaining strong relationships with all our stakeholders. These key stakeholders, along with their views and interests, to the extent that this could be analyzed by Cabka, are: Value Creation for our Stakeholders At Cabka, creating sustainable value for our stakeholders is key to our long-term success. Our approach to stakeholder value creation is rooted in our commitment to innovation, operational excellence and responsible business practices. We aim to deliver sustainable growth by fostering strong relationships with all our stakeholders. Below, we outline how we deliver value to each of our key stakeholder groups: Customers Our customers are central to everything we do. We strive to understand and meet the needs of our customers. Through continuous innovation and a customer-centric approach, we aim to deliver high-quality, reliable products, build long-term relationships, and provide exceptional service. Our commitment to customer satisfaction is reflected in our efforts to ensure that our customers are satisfied with our products and our services, and wish to continue the relationship, contributing to Cabka’s long term success. Employees We invest in the development of our employees, offer training programs, career advancement opportunities, and a supportive work environment. We prioritize their well-being by promoting a healthy work-life balance, ensuring workplace safety, and fostering a culture of diversity and inclusivity. By empowering our employees, we enhance their engagement and productivity, which in turn drives our overall performance. Local Communities As a responsible corporate citizen, we are committed to making a positive impact on the communities where we operate. Through various social responsibility initiatives, we focus on environmental sustainability and social well-being. By supporting community development, we contribute to the overall prosperity and resilience in the regions where we operate. Shareholders We aim to deliver long-term value to our shareholders by consistently and predictably improving our financial performance. We maintain transparent communication with our shareholders, providing regular updates on our financial performance, strategic direction, and market opportunities. We aim to enhance shareholder value and build long-term trust. Suppliers We value the importance of strong partnerships with our suppliers. By fostering collaboration, we ensure a reliable and sustainable supply chain. We work closely with our suppliers to uphold high standards of About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 24 quality, ethics, and sustainability. Our procurement practices emphasize fair treatment and mutual growth, to build partnerships that can endure market volatility. Supervisory Board The Supervisory Board guides Cabka’s strategic direction and governance. We prioritize transparency and collaboration, providing the Board with timely updates on financial performance, strategic initiatives, risk management, and regulatory compliance. Regular meetings and open communication support informed decision-making. Our commitment to good corporate governance is demonstrated through adherence to best practices and regulatory standards. The Board’s diverse expertise enhances oversight and strategic input, ensuring alignment with stakeholders’ long-term interests. Their insights are crucial for sustainable growth, effective risk management, and maintaining corporate integrity. Value Chain Workers We work closely with our suppliers and partners to uphold high standards of labor rights and workplace safety throughout our value chain. This includes rigorous assessments, compliance with international labor standards, compliance with our company safety standards and continuous monitoring to ensure that all workers are treated with dignity and respect. Stakeholder Engagement Conducting a double materiality assessment, as required by the Corporate Sustainability Reporting Directive (CSRD), in the first half of 2024 has greatly enhanced our understanding of the needs, interests, and views of our key stakeholders. This comprehensive assessment evaluates both the financial materiality of sustainability factors on our company and the environmental and social impacts of our business activities on stakeholders. It allows us to identify the most critical issues from multiple viewpoints. To ensure a comprehensive and balanced view of these issues, we actively engaged our stakeholders throughout the process. By integrating their insights, we are better positioned to address stakeholder concerns, align our business strategies with their expectations, and foster more transparent and meaningful dialogue. Cabka’s Management Board and Executive Committee are regularly informed about the views and interests of relevant stakeholders, also in relation to material ESG-related impacts, risks and opportunities (IRO). Such information, when relevant, is included in progress updates on IRO management during monthly executive meetings. Stakeholders’ views are taken into account in the due diligence process of strategic decision- making when necessary and are inherently part of individual meetings between executives and their responsible team members. This way, the interests of our stakeholders are always taken into account for actions and decisions that might affect them. Our Stakeholder Engagement Processes Stakeholder engagement helps Cabka to foster connections, trust, confidence, and support for our organization’s key initiatives. It also mitigates potential risks and conflicts with stakeholder groups, including uncertainty, dissatisfaction, misalignment, disengagement, and resistance to change. Different key stakeholders with different relationships to Cabka require different forms of engagement. Our engagement processes therefore include various approaches, timelines, and platforms. • Engaging with our customers drives our innovation and circular economy strategies. We are in constant contact to understand their needs and integrate these into the strategic development of the business. Our sales team engages directly with our customers and indirectly at industry events and conferences. Satisfaction surveys further help us understand and address our customers’ expectations and concerns. Our membership and engagement in industry associations as well as supplier evaluation programs also guide our ESG strategy. • Engaging with our shareholders at roadshows, in discussions with analysts, and in meetings with our investor relations team helps us to identify trends and expectations in the finance community. Our Capital Markets Day in 2024 provided participants with an in-depth view of Cabka’s value chain and business model. Panel and direct discussions provided insights into the information needs of investors. • We meet and engage with local communities during company visits, direct meetings with local councils, and local events. This contributes to understanding potential concerns local communities might have about Cabka’s business and their expectations regarding corporate citizenship. This knowledge informs Cabka’s strategic decision-making as well as day-to-day business activities. • Strong cooperation with our suppliers is key to achieving our ESG ambitions. Cabka’s Procurement Department is continuously working on advancing interactions with our suppliers through, inter alia, site visits, ESG evaluations, and interviews, to improve sustainability in our supply chain. • Our people are key. Internal communication is also supported through our Cabka intranet and Cabka App, on-site and online meetings, and management updates. Personal development discussions, team events and trainings together with surveys and engaging with employee representatives help to identify social matters to be addressed in our sustainability agenda and provide insights into our peoples’ perception of their work environment. Our whistleblowing tool is an additional communication channel through which issues can be identified and addressed. • Value chain workers are not engaged with directly but all critical suppliers of Cabka are required to adhere to Cabka’s Supplier Code of Conduct, which requires them to adhere to international human rights and other applicable standards. Additionally, key suppliers are assessed on past human rights violations, which further informs purchasing decisions. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 25 Our Impact in 2024 28 Impact on Finance 25 Interview with Frank Roerink 28 Impact on Finance 2024 32 Going concern 35 Impact on Customers & Supply Chain 31 Interview with Iñigo Canalejo 35 Impact on Customers & Supply Chain 39 Impact on People & Environment 35 Interview with Irina Mengert 39 Impact on People & Environment A Day in the Life of a Pallet Loaded for the First Time Loaded onto a truck, the Endur i7 departs the factory in Belgium. Its destination: a logistics hub in Germany. Neatly stacked with other pallets and wrapped for protection, it embarks on its first journey, ready to prove its worth in the vast world of logistics. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 26 Capitalizing on the Growth Market for RTP The reusable plastic packaging market is growing rapidly, with the Reusable Transport Packaging (RTP) market valued at approximately USD 107 billion and projected to expand at a compound annual growth rate of 6.1% from 2024 to 2028. While wooden pallets still dominate the market, reusable plastic packaging is gaining market share due to its durability and sustainability. The average lifespan of our Endur pallets is 60-200 trips compared to the average 5 trips of a wooden pallet, and can deliver up to 90% savings on the total cost of ownership. The European Union's Packaging and Packaging Waste Regulation (PPWR), which will come into effect in 2030, will accelerate this shift by promoting the reduction, reuse, and recycling of packaging materials. Cabka is well-positioned to capitalize on this regulation by offering solutions that help customers reduce costs, packaging waste, and CO2 emissions. In addition, the Corporate Sustainability Reporting Directive (CSRD) requires companies to critically assess the sustainability of their whole supply chain. Frank Roerink Chief Financial Officer, Cabka, Amsterdam Connect > Total savings The average lifespan of our Endur pallets is 60-200 trips compared to just 5 trips for wooden pallets, and can save up to 90% on total ownership costs. 90% About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 27 A day in the life of a pallet Capitalizing on the Growth Market for RTP As packaging and transport are an integral part of nearly every supply chain, this is also having a positive effect on the demand for more sustainable alternatives such as reusable transport packaging. A Competitive Advantage in the US The PPWR applies only to companies in the EU, while the CSRD applies to companies in the EU and those outside the EU conducting business in Europe; hence we take a slightly different approach in the United States. For our US operations, we place the emphasis more on the durability and cost efficiency of our RTP products. Cabka’s pallets and containers last significantly longer than wooden alternatives, not only reducing carbon emissions, but also lowering the truck costs per trip, making them highly attractive. The US market is notably larger than the European market due to its sheer size and the vast distances products are being transported. Moreover, most of our US competitors still rely heavily on virgin plastic. They struggle to integrate recycled plastic due to the complexities it causes in their production processes. A challenge that Cabka, with its expertise and innovative approach, has managed to overcome already for years. Cabka's use of recycled plastic and its US production unit offer a competitive advantage, especially in light of potential tariffs. By emphasizing the durability and cost- efficiency of our reusable plastic pallets, Cabka is strategically well positioned to grow its US market share. Cabka’s Two-Pillar Organic Growth Strategy To improve resilience, Cabka is focusing on organic growth and potential acquisitions. The company is investing in a larger and stronger sales force while exploring acquisition targets that could enhance our geographical presence, customer base, or technical capabilities. We have a two-pillar approach to organic growth. The first pillar involves continuing to excel in our core business, where we are recognized as a trustworthy and reliable supplier of various types of solid plastic pallets. The second pillar focuses on providing customized solutions, such as reusable plastic containers tailored to the needs of specific industries like the automotive industry. Once we develop a pallet or container for a particular customer, we can offer similar solutions to other customers or in other segments, thereby addressing broader market segments and categories. This dual approach ensures that we not only sustain our existing business but also tap into new growth opportunities by meeting the unique needs of different industries. Priorities for 2025 Looking ahead to 2025, we expect market circumstances to remain challenging, nevertheless, we expect a continued shift towards reusable plastic packaging as a result of the recently adopted Packaging & Packaging Waste Regulation (PPWR) legislation and other legislative requirements. Combined with our integrated approach to circularity we expect to gain market share. Cabka's main priorities for 2025 is clear: driving growth through innovation, operational excellence and sustainability. We are committed to further improving our gross margins through cost- effective procurement, controlled capital expenditure and strict working capital management. “Cabka's advantage lies in our unique ability to process recycled plastic, transforming raw materials into high-quality products. This sets us apart and highlights our commitment to sustainability and innovation.” Frank Roerink Chief Financial Officer, Cabka, Amsterdam About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 28 Impact on Finance The year 2024 presented a challenging economic landscape, marked by fluctuating market conditions and change in customer demand. Despite these challenges, we demonstrated resilience and notable progress in our sales in key segments and in our operations in gross margin. This section provides an in- depth analysis of our key financial metrics, cost management, and overall business performance. Key Financials Revenue (in € million) 181.9 ↓ 8% 2023: 196.9 Operational EBITDA margin (in %) 11.3% ↓ 1pp 2023: 12.4% Net cash from operating activities (in € million) 16.4 ↓ 40% 2023: 27.2 2 The presentation of the prior year income statement of has been adjusted to reflect the reclassification of transportation cost and FX gains & losses. For more information refer to note 3.20 of the consolidated financial statements. 3 EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization is an important measurement of the Company's financial performance before taking the cost of capital, depreciation and taxes into consideration. EBITDA margins provide a view of operational efficiency and enable a more accurate and relevant comparison between peer companies. 4 EBIT or Earnings Before Interest and Taxes, is a measure of a company's profitability that excludes interest expenses and tax payments. It represents the company's core, recurring business income before the impact of its capital structure and tax obligations. 5 Non operational restructuring costs includes one-off costs related to employee severance packages totaling €0.7 million and costs related to the small fire that occurred in our operating plant in Weira amounting to €0.5 million. 6 Prior year segmentation has been updated to align with the updated segmentation of certain customer products, for further information refer to note 6.1 of the consolidated financial statements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 29 Financial Performance in 2024 Condensed Income Statement Bridge Operational to IFRS The condensed income statement below provides operational and non- operational result items for insight on underlying operational performance. The Financial Report section of this report provides integral IFRS statements without this distinction. In Euro x 1,000 2024 2023 (restated) 2 Change Sales 181.9 196.9 -8% Other operating income items 10.6 1.7 528% Total Operating income 192.4 198.6 -3% Expenses for materials, energy and purchased services -99.8 -103.4 -4% Gross Profit 92.6 95.1 -3% Operating expenses -72.1 -70.7 2% Operational EBITDA 3 20.5 24.4 -16% Depreciation -20.2 -17.1 18% EBIT /Operating Income 4 0.4 7.3 -95% Net Financial Result -4.9 -4.2 16% Earnings before taxes -4.6 3.0 -251% Taxes 0.4 -0.8 -150% Net income from operations -4.2 2.3 -285% Non-operational items - - Other IPO related expenses -0.7 -1.0 St. Louis Flooding - -3.2 Tax on non-operational items - 0.4 Non operational restructuring costs 5 -1.2 - Fair value of Special shares and Warrants 0.9 - Release of Deferred tax asset in US -4.1 - Net result reported IFRS -9.4 -1.5 Business Overview Sales Performance Full-year sales for 2024 amounted to €181.9 million, reflecting an 8% decrease compared to the previous year (2023: €196.9 million). From the 8% decline, 4% was due to the intentional price reductions we implemented in our customer pricing strategy during the year, passing on the benefits of declining raw material and energy prices to our customers. The remaining decline was the result of lower volumes in our US Customized Solutions and continued soft demand in our Contract Manufacturing segment. In Europe, our Portfolio business grew by 8% year-over-year, reaching €77.5 million (2023: €71.6 million 6). The customized solutions business in Europe remained relatively resilient to market conditions, showing a €0.2 decrease in revenue to €34.5 million compared to €34.7 million4 in 2023. Contract Manufacturing (both strategic and non-strategic business) experienced very weak demand throughout the year. This led to a sales decline of €11.4 million, bringing total sales to €18.3 million (2023: €29.7 million). In the US, our Portfolio business demonstrated notable growth, increasing by 10% year-over-year to €19.9 million in 2024. This growth underscores the success of our commercial strategy to regain market share, as we strengthened our sales force in the region. Conversely, the Customized Solutions segment faced significant challenges due to adverse market conditions, where key customers refrained from committing to further capital expenditures for the time being, resulting in a significant decline of €13.4 million in sales. Lastly, the ECO business delivered robust growth of 4% year-over-year, resulting in €26.3 million sales in 2024 (2023: €25.3 million). Cost Developments In 2024, the company achieved a significant improvement in its operational gross margin, which increased with 3pp to 50.9%, compared to 48.3%2 in 2023. Throughout 2024, the company maintained a strong emphasis on its internal production capacity and strategic cost management across all segments. With the US plant fully operational since the second half of 2023, we were able to refocus on our in-house production capabilities. The introduction of a new raw material processing technology in the US, coupled with increased automation and robotization at our plants, and a gradual shift towards higher value-add products, collectively contributed to the margin improvement. Operating expenses remained relatively stable compared to last year, with the main increase noted in personnel costs. This increase was driven by the expansion of our sales force, with key vacancies filled towards the end of 2023, and the impact of inflation on personnel costs. Depreciation and amortization increased by 18% to €20.2 million, primarily attributable to the capitalization of assets we installed to reopen and expand our plant in the US. EBITDA The company reported an operational EBITDA of €20.5 million for the full year of 2024, which is €3.9 million lower compared to last year (2023: €24.4 million2). The reduction in EBITDA is predominantly attributable to the decrease in sales for the year, followed by inflationary pressures on our fixed cost base. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 30 Debt Facility In August 2024, Cabka successfully negotiated with the bank to waive and adjust certain financial covenants until end of Q2 2025. Net Working Capital Net Working Capital (NWC) position remained well within our medium- term guidance, amounting to €26.5 million or 14.6% of sales as per 31 December 2024. This is mostly in line with the previous year’s position which was €27.1 million or 13.7% of sales as per December 2023. NWC showed a small movement of €0.6 million in 2024. The positive movement is the result of an €8.0 decrease in trade receivables, partially offset by a €4.2 million increase in inventories and a decrease in trade payables of €3.5 million. The increase in inventory value during 2024 related to the optimization of idle production capacity during the periods of lower demand. Recognizing the shift in customer demand in shorter order cycles, the company took a proactive decision to build up inventory. This decision ensured that we can fulfil customer orders promptly and efficiently, meeting their expectations for timely stock availability in the upcoming period. The decrease in trade payables was mainly due to final settlements made towards machinery and equipment installed in our US plant, which were committed during 2022. The significant decrease in trade receivables at the end of 2024 resulted from the factoring implemented in December. Cash flows and Cash Position Cash flows from operating activities amounted to €16.4 million (2023: €27.2 million). Cash flows used in investing activities amounted to €18.0 million (2023: €30.7 million) of which €18.7 million was related to capital investments in property, plant and equipment and intangible assets (2023: €30.9 million). Cabka disposed of certain assets contributing €0.3 million of cash during 2024. In addition, interest earned on short term deposits amounted to €0.4 million. Cash flows from financing activities amounted to €0.4 million (2023: €-11.1 million). Main cash inflow resulted from the funding receipt out of the debt facility amounting to €15.5 million (2023: nil). This inflow was almost completely offset by the repayment of debt facilities and interest totaling €-7.0 million (2023: €-7.2 million), followed by the settlement of lease facilities in 2024 amounting to €-4.4 million (2023: €-2.7 million) and dividend payments of €-3.7 million (2023: €-1.2 million). The total cash balance at 31 December 2023 was €4.4 million (31 December 2023: €7.3 million). CAPEX Total CAPEX for 2024 amounted to €18.7 million (2023: €30.9 million). Included in this total is investments in maintenance & replacement CAPEX amounting to €9.4 million. Excluding the US investments related to the flood, maintenance & replacement CAPEX was €7.7 million, or 4% of total sales. Total investment in 2024 for our St. Louis plant to reopen and expand, amounted to €1.7 million (2023: €8.8 million). In our ECO business we invested €1.7 million (2023: €2.3 million). Tax Positions Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Management’s assessment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits. Management reassessed the deferred tax asset which was accumulated in the US including the effects of the devastating flooding of 2022. The company adopts a conservative stance by only recognizing a deferred asset where there is a high degree of certainty regarding the future profits. Management decided based on the strict guidelines from IFRS and out of prudence to reduce the deferred tax asset. This adjustment has no impact on the fiscal position of the company as it aims for building a growing and profitable US operation. The company does not use contrived or abnormal tax structures that are intended for tax avoidance. Details of the income tax expenses reported in the statement of profit and loss can be found in note 14 of the financial report. Outlook 2025 Market circumstances remain challenging given the current macro environment, with our customers remaining cautious with their capex spending. Nevertheless, we expect a continued shift towards reusable plastic packaging as a result of the recently adopted Packaging & Packaging Waste Regulation (PPWR) legislation and other legislative requirements. Combined with our integrated approach to circularity we expect to gain market share. We have implemented a cash saving and operational excellence program, SHIFT, which is designed to reduce our cost base and increase our operational excellence. Management expects that the investments in R&D activities and the number of employees will be at a similar level as in 2024, with capital expenditures expected to be below the investments made last year and will focus on next generation solutions. We expect sales and EBITDA in 2025 to be at least at the same level as 2024. Investor Relations and Share Performance We aim to maintain close relationships with our shareholders and potential investors. Our communication strategy is designed to uphold the highest standards of transparency, accuracy, and relevance, ensuring our shareholders are well-informed to make sound investment decisions. We are dedicated to delivering consistent, high-quality information to all stakeholders promptly, ensuring the public market is equally informed. To achieve this, we frequently update the market on our performance, strategic progress, and other significant company developments through various channels such as press releases, webcasts, and conference calls. Our practices adhere to the regulations set by Euronext Amsterdam and the Dutch Authority for the Financial Markets (AFM). For further details on Investor Relations, please visit our website. Dialogue with Investors, Analysts and other Stakeholders To maintain an open and continuous dialogue with the financial community, we actively engage with investors through a variety of meetings and conferences. We also accommodate meeting requests from the financial community whenever feasible, ensuring compliance with all applicable regulatory and confidentiality obligations. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 31 When we publish our annual and half-yearly results, our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) together with our Investor relations hosts a webcast to discuss our recent business and financial performance. These webcasts are broadcast online and made available on our website within a week of broadcasting. Our policy is to have at least two representatives of Cabka present at each conversation with shareholders and investors, where possible. Bilateral meetings and conference calls with analysts, investors and shareholders are not held during ‘closed periods’. Our policy of holding bilateral meetings with shareholders is set out in the Bilateral Contacts Policy that can be found in the Corporate Governance section of our website. On November 25, 2024, we held our 2nd Capital Markets Day at our production plant in Ieper, Belgium. The event featured a comprehensive business and strategy update, a factory tour showcasing our production processes, and a panel discussion on the upcoming Packaging and Packaging Waste Regulation (PPWR). Our CEO, Alexander Masharov, emphasized Cabka’s commitment to innovation, sustainability, and overcoming recent market challenges since the company’s listing in 2022. The event provided valuable insights into our strategic vision and reinforced our dedication to leading the industry in sustainable practices. General Meeting of Shareholders Every year Cabka holds an Annual General Meeting of Shareholders (AGM). Additionally, Extraordinary General Meetings of Shareholders (EGMs) can be convened whenever deemed necessary by the Management Board or Supervisory Board. We announce the date, agenda, and other relevant documents for the AGM or EGM at least 42 days in advance on the Investor Relations section of our website. On May 30, 2024, we held our AGM at the Crown Plaza in Amsterdam South. During this meeting, shareholders approved all proposed items on the agenda, including the adoption of the Company's 2023 financial statements and approval of proposed dividend distribution of EUR 0.15 per ordinary share. Detailed information about the 2023 AGM, including minutes, voting results, and attendance, is available on our website. On August 1, 2024, we held an Extraordinary General Meeting of Shareholders (EGM) at our headquarters in Amsterdam. The agenda items included the appointment of Alexander Masharov as managing director and CEO, effective August 1, 2024, as well as the amendment of the remuneration policy of the management board. During this meeting, shareholders approved all proposed items on the agenda, including the appointment of Alexander Masharov as CEO until the end of the AGM in 2028. For more information about the 2024 EGM, including the minutes, voting results, and attendance, please visit our Investor website. Listing and Indices Cabka’s shares are listed and traded on Euronext Amsterdam, under the ticker symbol “CABKA”. Earnings per Share Based on 24,710,600 Ordinary Shares issued, the basic and diluted profit for the year attributable to ordinary equity holders of the parent amounts to € -0.06 per ordinary share (2022: € -1.28 per Ordinary Share). Dividend Distribution In 2024, Cabka N.V. continued its commitment to delivering value to its shareholders by distributing a dividend of €0.15 per share. The dividend was paid on August 16, 2024, following the ex-dividend date of August 8, 2024. This distribution underscores our dedication to maintaining a balanced approach to capital allocation, ensuring that we reward our shareholders while also reinvesting in the business to drive long-term sustainable growth. Analyst Coverage Cabka is currently covered by four analysts, one more than in 2023. The research recommendations at the end of 2024 were as follows: BANK ANALYST TARGET PRICE ABN AMRO ODDO BHF Usama Tariq €5.20 BNP Paribas Exane (sponsored) Thomas Martin €4.10 - €5.70 Degroof Petercam, (sponsored) Luuk van Beek €4.60 Kepler Cheuvreux (sponsored) Patrick Roquas €4.70 Major Shareholders The following table lists the shareholders on record in the AFM register on December 31, 2024, that hold an interest of 3% or more in the share capital of the Company: MAJOR SHAREHOLDERS NOMINAL STAKE RAM.ON GmbH 49.09% Eikenbosch Holding B.V. 4.25% About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 32 Going concern In 2024, Cabka faced significant challenges that impacted its financial performance and raised uncertainties regarding its ability to continue as a going concern. Despite these challenges, management remains committed to implementing strategic measures to address these uncertainties and ensure the company's long-term sustainability. Financial Performance and Challenges The ongoing economic instability and market volatility have adversely impacted the Group's sales and financial performance during 2024. Cabka experienced an 8% decline in sales, from €196.9 million in 2023 to €181.9 million in 2024. This decline was primarily due to lower volumes in the US Customized Solutions and soft demand in the Contract Manufacturing segment. The Group reported a net result of €-9.4 million in 2024, compared to €-1.5 million in 2023. The increase in net debt to €72.0 million in 2024, including lease obligations, was driven by lower cash flows from operations of €16.4 million, cash flows invested into capital expenditures of €18.0 million, interest of €4.7 million, leasing and financing of €5.2 million and a €3.7 million dividend payment over 2023. In August 2024, the Group successfully obtained a suspension of one covenant and an increase of another covenant. However, this suspension and increase of the debt financing covenants is only temporary and is valid up until the end of Q2 2025. It is expected that the market situation will remain challenging for the upcoming period, with customers continuing to be cautious with their capital expenditure, impacting our sales and EBITDA in 2025. Management therefore revised their forecast of sales and EBITDA over 2025, which is expected to be at least at the same level as 2024. Due to the updated forecast management anticipates that there is a high likelihood of another breach of the covenants in the upcoming year. To address these challenges, management is actively implementing several measures to address these uncertainties and mitigate the associated risks: • Cost Optimization: The "SHIFT" program aims to stabilize the company’s net debt via balancing the cash inflow and outflow. The program focuses on reducing costs, reducing capital expenditure, cutting dividends, working capital management and increasing operational excellence. • Boosting Sales: Strengthening the sales force and working on proof- of-concept trials with potential customers. • Strategic Partnerships: Exploring partnerships to enhance revenue streams and market presence. • Strengthening the Balance Sheet: Engaging in proactive discussions with banks to agree appropriate financial covenants, the outcome of which is currently uncertain, while simultaneously exploring additional funding sources. While management remains confident in Cabka's ability to address these challenges, there still exists a material uncertainty on the continuation of the credit facility that may cast doubt on the company's ability to continue as a going concern. Nevertheless, the financial statements have been prepared on a going concern basis, as management is confident that market conditions will improve over time. Management also believes that they will be successful in strengthening the balance sheet, including securing support from lenders. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 33 About IFCO IFCO, founded in 1992, is a global leader in providing reusable packaging solutions for fresh food supply chains, empowering customers to participate in the circular economy in 50+ countries. IFCO operates a pool of over 395 million reusable packaging containers (RPCs) globally, which are used for over 2.2 billion shipments of fresh fruits and vegetables, meat, poultry, seafood, eggs, bread, and other items from suppliers to grocery retailers every year. IFCO RPCs ensure a better fresh food supply chain by protecting freshness and quality and lowering costs, food waste and environmental impact compared to single-use packaging. IFCO’s primary purpose is to make the fresh grocery supply chain sustainable. We do this by reducing waste, enhancing food safety, and optimizing logistics.ply chain sustainable. We do this by reducing waste, enhancing food safety, and optimizing logistics. Iñigo Canalejo Vice-President ESG & Strategic Marketing IFCO, Madrid Connect > Transport efficiency Nestable pallets are approx 2.6 times more efficient compared to traditional pallets, generating transport efficiencies and reducing carbon emissions. 2.6 times About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 34 A day in the life of a pallet Interview with Iñigo Canalejo Vice-President ESG & Strategic Marketing at IFCO pallets can be recycled into new pallets. When we talk about materials, these pallets have an almost infinite life because broken pallets, that cannot be repaired, are simply regrinded to make new pallets. Another factor that’s important for us is recycled content. That is why we like working together with Cabka because of their expertise in recycling and reusing material. However, we are not quite there yet with Nestor, as Nestor is currently still made of 100% virgin plastic. This is because the type of material that’s used for Nestor is quite unique in its performance characteristics. Nestor is both lightweight and durable. The material mix used is revolutionary, ensuring the pallet is both lightweight and durable, extending its lifecycle. However, at the end of its ling lifecycle, Nestor will be recycled in closed loop to manufacture new pallets, also ensuring zero product waste. Upcycling broken pallets into new pallets in closed loop will increase recycled content in future pallets without downgrading materials or jeopardizing its technical capabilities.” IFCO’s ESG Strategy: Thriving in the Circular Economy At IFCO, our purpose is to make the fresh grocery supply chain sustainable. We do this by empowering our customers to participate in the circular economy by replacing single use packaging. Part of our ESG strategy is to expand our IFCO SmartCycle business model beyond RPCs so that we can continue to deliver environmental savings to our customers’ supply chains. To this end, our customer innovation focus area aims to develop new reusable products and services. Together with innovative circular manufactures like Cabka, we help our customers replace single-use packaging with more sustainable and more cost-efficient reusable products. Nestor is a great example of this. The market penetration of reusable packaging in retail is still very low, less than 10%, so there is a lot of room for growth. At present, we have launched the Nestor pallet in Europe, but since IFCO operates in over 50 countries, there’s significant potential for Nestor in other geographical areas such as the UK or the US.” Reusable Packaging as a Service “At IFCO, we don’t produce anything, and we don’t sell anything either. We provide reusable packaging as-a-service. The main products we provide are reusable packing containers (RPC), which are used for fresh produce, mainly for fruit and vegetables, but we also have other crates that are used, for example, for meat, bread, or fish. We don’t manufacture these crates ourselves. We rely on innovative production companies that specialize in the manufacturing of reusable packaging crates, which we then rent out to our customers, which include both growers and retailers. Our customers share and reuse our packaging in their supply chains. Growers use our products to ship fresh produce to retailer supermarkets. The same crate is used end-to-end from the farm all the way to the supermarket. When it’s empty, we collect it, inspect it, if necessary, we repair it, and then we clean it and sanitize it so that its ready to be shipped to the next user. This model helps our customers reduce single-use packaging and therefore carbon emissions and waste” New Nestable Plastic Pallet Co-developed with Cabka “Together with Cabka, we co-developed and recently launched a new lightweight nestable plastic pallet which we fittingly named Nestor. This nestable plastic pallet is based on the same sort of concept that we used 30 years ago when we developed our first reusable foldable crates. Nestor is not only lighter than a traditional pallet, it’s also nestable. That means you can fit almost 2.6 times as many empty pallets in a truck compared to a traditional pallet. This generates efficiencies in transport and logistics, which in turn result in lower carbon emissions. In addition, plastic pallets are far more durable than wooden pallets and much more hygienic.” Closed-loop Recyclable Pallets “Another important aspect for us is that at the end of life, these “At IFCO, we don’t produce anything, and we don’t sell anything either. We provide provide RTP as-a-service” Iñigo Canalejo Vice-President ESG & Strategic Marketing, IFCO, Madrid About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 35 Impact on Customers & Supply Chain Cabka’s commitment to transforming the plastics industry drives value creation across the entire supply chain. Through innovation, sustainability-focused production, and responsible supply chain management, Cabka enables its customers to achieve long- term environmental and economic benefits while remaining compliant with new plastic and packaging regulations. New product launches (number) 5 Employees in R&D (in %) 5% Initiatives & Associations (number) 8 ↑ 14% 2023: 7 Avoided CO2 Emissions (in tonnes) 262,363 ↓ 15% 2023: 309,487 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 36 Partnering for Progress: Driving Value for Customers Our customers appreciate dependable and trustworthy partnerships with suppliers who consistently deliver exceptional products and outstanding customer service. Cabka continuously strives to fulfill and exceed the expectations of our customers. Our products are designed to meet the needs of customers in various industries, geographies, and applications. Through our customized approach, we can create products that are tailored to the individual needs of particular customers. With our durable, safe, and reliable products, and our collaborative innovation to optimize supply chains, Cabka is an excellent business partner. Leading Circularity: Keeping Plastics in the Loop Cabka’s core mission is to promote a circular economy by minimizing the use of virgin plastics and maximizing the recycling of plastic waste. In 2024, we processed 127 kilotons of plastic waste, achieving a recycled raw material inflow rate of 88%. Key initiatives to integrate post- consumer and post-industrial waste streams into new product developments include: • Recycling efficiency: in-house recycling facilities reprocess production scrap, end-of-life products, and various hard-to-recycle waste streams to transform them into sustainable products for our customers. • Buyback program: customers can return products to Cabka at the end of their lifecycle for recycling and reuse, creating a closed-loop system. Innovation-Driven Solutions: From Waste to Value Innovation fuels Cabka’s ability to create cutting-edge, sustainable products. Through a structured stage-gate innovation process, we continuously enhance products and processes with the customer’s needs in mind and sustainability at the forefront. Our Innovation Center in Valencia conducts research on new recycled materials and process technologies, driving efficient product development and advancing Cabka’s R&D capabilities. Cabka’s partnership with industry leaders highlight our ability to develop custom packaging products made from recycled materials. Cabka’s Main Achievements in Innovation Chep ZirConic Container. Red Dot Award in the Product Design category Production Started in Q1-2024 IFCO-NESTOR Pallet Production Started in Q2-2024 BMW Foldable Container Production Started in Q4-2024 Eco EUROPEAN (Eco E5.2) Production Started in Q4-2024 Eco INDUSTRIAL (Eco I5.2) Production Started in Q4-2024 Xella Product validated for production Hulo PILOT PHASE Pilot Phase finalized CHEP Feather Product validated in Dec to start production in Q1-2025 TOSCA EPAL Product validated in Dec to start production in Q1-2025 Optimizing the Logistic Chain Our sustainability principles extend into our procurement and supplier management practices. In 2023, Cabka rolled out a comprehensive sustainability assessment across its continuous raw material suppliers. Our Supplier Code of Conduct outlines Cabka’s expectations regarding environmental and social responsibility, from preventing forced labor to minimizing pollution. Our sustainable procurement policy further solidifies Cabka’s commitment to integrating environmental and social criteria into procurement decisions. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 37 Professionalizing Cabka’s Human Resources In January 2024, Irina Mengert took on the role of CPO within Cabka. From the start, she was tasked with professionalizing the human resources management and corporate governance within the organization. In collaboration with the Management Team, four major focus areas were identified: organizational efficiency, performance management, leadership development, and company culture. Data-driven HR-Related Decisions As part of this professionalization process, the company recognized the opportunity to further enhance workforce insights through data-driven tools. In 2024, the company selected an HR management and information system which is designed to enhance insights into workforce trends, employee performance and productivity. Once this HR system and HR portal are in place, it will empower us to make informed HR decisions much more effectively and efficiently. Irina Mengert Chief People Officer, Cabka, Berlin Connect > Average training hours Cabka enhanced employee development by tracking average training hours per employee. This KPI measures our commitment to continuous learning and growth. 6.44 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 38 A day in the life of a pallet Professionalizing Cabka’s Human Resources Management and Corporate Governance Organizational Efficiency Our aim is to improve our organizational efficiency by increasing employee productivity and promoting employee well-being. The company has made several investments in automation and robotization, increasing efficiency and reducing labor costs at our production plants. In 2024, we focused on expanding our dynamic sales organization. Additionally, the HR team is working on improving the way absenteeism is managed, particularly in production plants. Several initiatives have since been introduced to create a healthier work environment throughout our organization and to encourage a healthier lifestyle, with attention given to both physical and mental health and well-being. Performance Management Performance management is considered critical to ensure alignment between employees and the company goals. Employees are encouraged to learn, develop, and seize opportunities, thereby contributing to Cabka’s success and enhancing their own career prospects and employability. In 2024, key components of performance management, such as goal setting and alignment, continuous feedback and coaching, performance evaluation, and reviews, were embedded within our organization. We will be continuing our focus on professionalizing performance management organization-wide during 2025. Leadership Development In 2024, the company carried out extensive preparations to establish a robust leadership development program, which commenced in January 2025. Fifteen participants were selected by the Executive Leaders Team through the company’s talent review process, identifying a group of talented employees within the organization who could help bring Cabka to the next level. At Cabka, leadership development is considered vital for driving organizational success, fostering innovation, and ensuring long-term business continuity. As part of our leadership development program, we will be providing executive coaching, mentorship, workshops, seminars, and e- learning programs in 2025. Company Culture At Cabka, our aim is to create a positive company culture that fosters employee engagement and helps us attract and retain skilled and knowledgeable employees. Cabka’s company culture is based on four core values: passion, creativity, respect and accountability. Each quarter, we pay special attention to one of these core values across the organization. We think globally, but we act locally, so we take local cultural differences into account and embrace diversity and inclusion. Many of our employees are drawn to Cabka because of its commitment to converting waste into valuable products, aligning with their own personal desire to contribute positively to the environment. Cabka’s sustainability mission is also a competitive advantage when recruiting young professionals and something that we also clearly communicate in our employer branding. “We think globally, but we act locally, embracing diversity and inclusion.” Irina Mengert Chief People Officer, Cabka, Berlin About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 39 Impact on People & Environment At Cabka, we recognize that our success is deeply connected with our people and the environment. In 2024, we continued to invest in our workforce and advanced on our environmental initiatives. Some key indicators are shown below and are further detailed in our sustainability statement. Environment Energy consumption (MWh) 109,849 ↑ 9% 2023: 101,126 Renewable energy (in %) 11.9% ↑ 7pp 2023: 5.2% Total GHG emissions (market-based, in tCO2e) 208,255 ↓ 8% 2023: 226,251 Water consumption (m3) 11,222 ↑ 4% 2023: 10,772 Recycled raw materials (in %) 88% ↓ 1pp 2023: 89% Total amount of plastic waste intake (kt) 127 ↓ 9% 2023: 140 People Gender diversity (% of females) 20% ↑ 4pp 2023: 16% Females in Senior Roles (in %) 20% ↓ 4pp 2023: 24% Work-related Accidents (in number) 59 n/a 2023: n/a Average Training Hours (in number) 6.44 n/a 2023: n/a About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 40 At Cabka, sustainability and shared values are central to our mission of transforming plastic waste into reusable transport packaging. We create value by fostering a culture of inclusivity and respect, ensuring the health and safety of our people, and promoting equality, diversity, and inclusion. Through these pillars, we strengthen our positive impact on people and the environment. Our Innovation Center plays a pivotal role in developing products that reduce the carbon footprint of logistic systems while enhancing product durability and functionality. In 2024, the share of recycled raw material inflow in our operations was 88%, demonstrating Cabka’s commitment to the principle of circularity and positioning us as the circularity leader in the RTP industry. Additionally, we work with take-back clauses for recycling as we aim to support the collection of additional plastics. Cabka is committed to making a positive impact with its operations and ultimately with the product it supplies to the market. With newly launched products such as the IFCO-NESTOR pallet and the BMW foldable box, we enhance supply chain efficiency for our customers and reduce emissions. Moreover, we are continually exploring new processing technologies that enable us to utilize new hard-to-recycle plastic waste streams in our production, further reducing dependency on primary materials. Our people are at the heart of our success. Cabka supports its employees’ well-being through various programs and flexible work arrangements to promote a good work-life balance where possible. We are also actively working to equip our employees with the skills needed to become future leaders of our organization and to contribute to Cabka’s strategic growth. We believe that a diverse and inclusive workforce fuels creativity and innovation. Through our recruitment channels and partnerships, we aim to attract talent from diverse backgrounds. Continuous learning programs provided by Cabka to our people enable their career growth and skills development. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 41 Governance & Risk 42 Corporate Governance Statement 45 Organizational Structure 47 Supervisory Board Report 51 Remuneration Report 55 Risk Management 65 In-Control Statement A Day in the Life of a Pallet First day at the Job Today, the Endur i7 carried its first load—boxes of electronics destined for retailers. Forklifts lifted it with ease, and its smooth surfaces and interlocking design ensured safe stacking. The forklift driver appreciated the pallet’s durability and reliability, as he no longer has to worry about the risk of goods getting damaged during transportation. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 42 Corporate Governance General Cabka N.V. ('Cabka' or 'the Company') is a publicly limited liability company incorporated under the laws of the Netherlands, with its registered seat in Amsterdam and its offices at John M. Keynesplein 10, 1066 EP Amsterdam, the Netherlands, chamber of commerce registration number 80504493. Cabka’s shares are listed on Euronext Amsterdam (symbol: CABKA). Cabka’s corporate governance framework is based on the requirements of the Dutch Civil Code, the Dutch Corporate Governance Code, the Company’s Articles of Association as amended on May 31, 2024, the applicable securities laws, and the regulations concerning the Management Board and the Supervisory Board. Our Articles of Association, which are published online, include most of the Dutch Corporate Governance Code’s principles and best practice provisions applicable to a two-tier governance structure. Since the financial year 2022, Cabka has been subject to the 2016 Dutch Corporate Governance Code, most recently updated on December 20, 2022, which regulates the relationships between the Management Board, Supervisory Board, and General Meeting of Shareholders (the General Meeting). Listed companies in the Netherlands must render account for their compliance with the Dutch Corporate Governance Code. This chapter of the report gives an overview of how Cabka applies the Dutch Corporate Governance Code. Cabka has a two-tier board structure consisting of the Management Board and the Supervisory Board. The Management Board is responsible for the day-to-day management of the Company. The Management Board and the Supervisory Board are jointly responsible for Cabka’s governance structure. Sustainable long-term value creation is the key consideration for the Management Board and Supervisory Board when determining strategy and making decisions, with stakeholder interests taken into careful consideration. The Management Board and the Supervisory Board, including the committees of the Supervisory Board, each have their own regulations, which set rules regarding their duties and responsibilities, composition and working methods. These regulations are available on our website. In addition to the Management Board and the Supervisory Board, Cabka has a third governing body – the General Meeting. Management Board Powers, Responsibilities and Functioning The Management Board is the statutory executive body. The Company has appointed certain key employees to manage Cabka together with the Management Board. The Management Board and these key employees together constitute the Management Team, which is responsible for the day-to-day management of Cabka and for achieving Cabka's objectives, strategy, policy and results. It formulates and implements our (business) strategy and policies in line with the associated risk profile and takes responsibility for internal control systems. The Management Board may take any actions necessary or useful for achieving Cabka’s objectives, except those prohibited by law or by the Articles of Association or those that are expressly the prerogative of the General Meeting or Supervisory Board. In performing its duties, the Management Board must consider the interests of Cabka’s stakeholders (including shareholders, employees, partners and customers) as well as the sustainability issues relevant to the business. The Management Board must submit certain important decisions to the Supervisory Board or the General Meeting for approval. The Management Board keeps the Supervisory Board informed and consults with the Supervisory Board on important matters. The Management Board has informed the Supervisory Board of the main outlines of the Company’s strategy, the general and financial risks, and the risk management and control systems. The Management Board must, in a timely way, provide the Supervisory Board with all the information it needs to carry out its own duties. Composition of the Management Board The Management Board consists of at least two members and includes no non-executive members. The Supervisory Board has appointed one of the Managing Directors as Chief Executive Officer (CEO). In addition, the Supervisory Board has appointed one of the Managing Directors as Chief Financial Officer (CFO) specifically to oversee the Company’s financial affairs. There is currently no direct employee representation through a work council in the Management Board. The Supervisory Board is authorized to make binding nominations to the General Meeting for the appointment of a Management Board member. Each Management Board member is appointed for a term of no more than four years, with their term ending immediately after the General Meeting held in the fourth calendar year after their initial appointment. A Management Board member may be re-appointed for a term of no more than four years at a time. The Management Board is composed of the following members: NAME YEARS IN MANAGEMENT BOARD DATE OF INITIAL APPOINTMENT DATE OF REAPPOINTMENT TERM ENDS IN Alexander Masharov 1 2024 n.a. AGM 2028 Frank Roerink 2 2023 n.a. AGM 2027 Evaluation The Management Board evaluates itself and its individual members at least once a year. The performance of the Management Board and its individual members is also evaluated at every closed session of the Supervisory Board, with the findings communicated to the Management Board by the Chair of the Supervisory Board. In 2024, the evaluation was postponed due to the resignation of Tim Litjens as CEO in March 2024 and the subsequent appointment of Alexander Masharov in August 2024. Remuneration Information on the remuneration policy for Management Board members and their individual remunerations can be found in the Remuneration Report 2024 (page 51). About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 43 Supervisory Board Powers, Responsibilities and Functioning The Supervisory Board supervises the Management Board and the general course of affairs of the Company, its subsidiaries, and the business affiliated therewith. The Supervisory Board is accountable for these matters to the General Meeting. The Supervisory Board also provides advice to the Management Board. The Supervisory Directors assist the Management Board with advice on general policies related to Cabka’s activities. In performing their duties, the Supervisory Board members act in accordance with the Company’s interests while also taking the interests of stakeholders into account. They focus furthermore on the effectiveness of Cabka’s internal risk management and control systems and the integrity and quality of the financial reporting. The Supervisory Board is responsible for nominating and supervising an external accountant who audits, reports on, and issues an auditor’s report on the Company’s annual financial statements for the General Meeting. Composition of the Supervisory Board The composition of Cabka’s Supervisory Board is diverse in gender, nationality, background, knowledge, experience and expertise. As detailed in the Promoting Diversity, Equality and Inclusion section and in line with Cabka's Diversity Policy, Cabka strives to foster an inclusive and diverse environment characterized by an open and inspirational culture. This commitment extends to the composition of the Supervisory Board, which actively promotes diversity across various dimensions, including age, gender, nationality, industry experience, background, skills, knowledge, and perspectives. In 2024, women accounted for 33% of Cabka's Supervisory Board, in accordance with both our internal target and the Dutch legislative requirement of at least 33% male or female Supervisory Board members to ensure gender balance. Cabka’s Supervisory Board consists of at least six members and is authorized to make binding nominations for the appointment of a Supervisory Board member. It appoints one of its members to be Chair. In line with the Dutch Corporate Governance Code, each member is appointed for no more than four years, with their term ending immediately after the General Meeting held in the fourth calendar year after their initial appointment. On November 11, 2024. Mr. Manuel Beja resigned from his duties as Supervisory Board member. On November 13, 2024, the Supervisory Board appointed Mr. Oliver Seidl as interim member of the Supervisory Board, subject to the approval of the AGM in 2025. In the current Supervisory Board three members are Dutch, two Israeli, and one German. The Board’s current members are Niek Hoek (Chair), Gat Ramon (Vice-Chair), Jeanine Holscher, Stephan Nanninga, Oliver Seidl (interim member) and Tova Posner Henkin. For detailed information on their backgrounds, please refer to page 47 and our investor website. Following best practice 2.1.10 of the Dutch Corporate Governance Code, the Supervisory Board establishes that its members are able to act critically and independently of one another, the Management Board, and any particular interests involved. Therefore, 100% of the Supervisory Board members are independent. To safeguard this, the Supervisory Board is composed in such a way that all its members are independent in the meaning of best practice 2.1.8 of the Dutch Corporate Governance Code. Cabka has made an exception to this best practice as its main shareholder Gat Ramon is represented on the Supervisory Board. Niek Hoek and Stephan Nanninga no longer represent the shareholders of the former Dutch Star Companies TWO B.V.. All the former Dutch Star Companies TWO B.V. shareholders hold their shares directly including full voting rights having no restrictions. As a result, five members of the Supervisory Board, Oliver Seidl, Jeanine Holscher, Tova Posner Henkin, Niek Hoek and Stephan Nanninga are fully independent and one, Gat Ramon, represents the major shareholder. Evaluation At least once a year, the Supervisory Board evaluates its own performance as well as the performance of its committees, the Management Board and all individual members thereof. In 2024, the evaluation was postponed due to changes in the Supervisory Board. Remuneration Information on the remuneration policy for Supervisory Board members and their individual remunerations can be found in the Remuneration Report 2024 (page 54). Supervisory Board Committees The Supervisory Board has three committees to cover key areas in greater detail: Audit, Remuneration (of both the Supervisory Board and Management Board), and Nominations (to the Supervisory Board and Management Board), the latter operate combined. The Supervisory Board’s Audit Committee, and Remuneration and Nomination Committee advise the Supervisory Board and inform its decision-making, although the Supervisory Board remains collectively responsible for the fulfillment of the duties delegated to its committees. The Committee Regulations are published on Cabka’s website. Audit Committee The Audit Committee assists the Supervisory Board in overseeing the integrity and quality of Cabka’s financial reporting and the effectiveness of its internal risk management and control systems. This includes supervising the enforcement of relevant legislation and regulations and the effect of our codes of conduct. The Audit Committee supervises the financing of the Company, assessing the external independent audit process and the scope and approach of the external auditor as well as monitoring progress and performance. The relationship with the external independent auditor is evaluated annually. Together with the Management Board, the Audit Committee reviews half-year and full-year financial statements, independent auditor reports and the Management Letter. The Audit Committee supervises the Company’s policy on tax planning and ICT applications, including risks relating to cybersecurity. Remuneration and Nomination Committee The Remuneration and Nomination Committee reviews and makes recommendations regarding the remuneration policy for the Management Board and the Supervisory Board, for adoption by the General Meeting. The approved policy then forms the basis for the fixed and variable remuneration of the Management Board. The committee is About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 44 tasked with advising on candidates to fill vacancies in the Management Board and Supervisory Board, assessing the functioning of both Boards and their members, supervising the policy of the Management Board on the selection criteria and appointment procedures for senior management and ensuring long-term succession planning. Independence and Conflicts of Interest In line with the Supervisory Board Regulations, the Management Board Regulations, and the Dutch Corporate Governance Code, Board members must immediately report any real or potential conflict of interest to the Chair of the Supervisory Board and/or to the other members of the Management Board. In 2024, there were no reports of potential conflicts of interest relating to members of the Supervisory Board and Management Board. The Supervisory Board was also able to carry out its tasks independently pursuant to principles 2.1.7 to 2.1.9 of the Dutch Corporate Governance Code. General Meeting of Shareholders An Annual General Meeting of Shareholders (AGM) is held within six months of the end of every financial year. The main purpose of the AGM is to decide on matters as specified in Cabka’s Articles of Association and under Dutch law, such as the adoption of the financial statements and the discharge of the Management Board and Supervisory Board members for their respective management and supervision duties. Extraordinary General Meetings (EGMs) are held if the Management Board and Supervisory Board deem it necessary or at the request of one or more shareholders who, alone or jointly, represent at least one-tenth of Cabka’s issued share capital. An AGM or EGM is called by a convening notice sent by the Management Board or the Supervisory Board. Every shareholder may attend, speak at and vote at the meeting. Unless Dutch law or the Articles of Association require a larger majority, resolutions of the General Meeting are adopted by a simple majority of the votes cast. Certain resolutions require a qualified majority of two-thirds of the votes cast, if less than half of the issued share capital is represented at the respective AGM or EGM. The draft minutes must be published on our corporate website no later than three months after the AGM or EGM. Shareholders are given three months to respond to the draft minutes, which are subsequently adopted and signed by the Chair of the Supervisory Board and the General Counsel, acting as the secretary to the AGM or EGM. Diversity and Inclusion On January 1, 2022, the Diversity Act entered into force in the Netherlands. In accordance with the Diversity Act, Cabka has set an appropriate and ambitious target for a balanced number of men and women in the Management Team, the Supervisory Board and the sub-top management level. Cabka aspires to be an inclusive and diverse company with an open and inspiring culture, where people feel safe to develop and share ideas. Cabka’s Diversity Policy and targets are published on our corporate website. The Management Team and the Supervisory Board can be considered diverse and balanced from the perspective of educational background and work experience. Both Boards consist of people with a good mix of sector knowledge, financial expertise and management capabilities. The Supervisory Board annually assesses the composition of the Supervisory Board, Management Board, and Management Team and agrees to measurable objectives for achieving diversity on the Boards and at the sub-top management level. The Supervisory Board has drawn up a profile for its size and composition, setting out (i) the size of the Supervisory Board, (ii) the desired expertise and backgrounds represented in the Supervisory Board, (iii) the desired diversity among and independence of Supervisory Board members and (iv) the qualifications of the Supervisory Board. This profile can be found on our website. With the Supervisory Board comprising four men and two women and the Management Team comprising four men and two women, both meet the quota as prescribed by Section 2:166 of the Dutch Civil Code. More broadly, Cabka has a very diverse group of employees with people of different genders from different backgrounds, cultures and religions. More information on (the impact of) our Diversity Policy can be found on page 89. Corporate Governance Statement The Dutch Corporate Governance Code, as amended, entered into force on January 1, 2017 and applies to any financial year starting on or after this date. The Code finds its statutory basis in Book 2 of the Dutch Civil Code (the Dutch Corporate Governance Code). The Dutch Corporate Governance Code applies to Cabka as the Company has its registered office in the Netherlands and its ordinary shares are listed on Euronext Amsterdam. The Dutch Corporate Governance Code is based on a “comply or explain” principle. Accordingly, companies are required to disclose in their management report whether they comply with the various best practice principles of the Dutch Corporate Governance Code that apply to the Management Board (bestuur) or, if applicable, the Supervisory Board (raad van commissarissen) of the company. If a company deviates from a best practice principle in the Dutch Corporate Governance Code, the reason for such deviation must be properly explained in its management report. Cabka does not comply with the following principle of the Dutch Corporate Governance Code: Best Practice Provision 4.3.3: Cancelling the Binding Nature of a Nomination In deviation from provision 4.3.3 of the Dutch Corporate Governance Code, the General Meeting may only pass a resolution to cancel the binding nature of the nomination by the Supervisory Board for the appointment of Managing Directors and Supervisory Directors by majority representing at least two-thirds of the votes cast, representing more than one half of the issued capital of the Company. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 45 Organizational Structure Cabka's organizational structure is designed to support our strategic goals and ensure efficient operations. Our structure includes key functional areas such as Product Development, Innovation, Marketing and Sales, Operations, Production and Manufacturing, and Corporate Services. Each area is led by experienced professionals who work collaboratively to achieve our mission and vision. Tim Litjens was CEO until July 31, 2024 and was succeeded by Alexander Masharov as of August 1, 2024. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 46 Entity Structure About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 47 Supervisory Board report Composition of the Supervisory Board Cabka Supervisory Board key data MANUEL BEJA NIEK HOEK GAT RAMON JEANINE HOLSCHER STEPHAN NANNINGA TOVA POSNER-HENKIN OLIVER SEIDL Year of Birth 1972 1956 1953 1965 1957 1947 1963 Gender male male male female male female male Nationality Portuguese Dutch Israeli Dutch Dutch Israeli German Current positions Professional Women Network Lisbon, Mentoring Program: mentor and member of the advisory board; coordinator of the technical team, pro bono Founder DSC2 & Brandaris Capital, Chair Supervisory Boards of Van Oord and Anthony Veder N.V. (Netherlands Antilles); member Supervisory Board BESI N.V.; member of the foundation Pref. shares NEDAP Major shareholder and advisor to Cabka COO of Mirage Retail Group B.V.; Supervisory Board member of Espria, and Chair of the Supervisory Board of the Foundation Dutch Order of Professional Coaches Founder DSC2; member of the Supervisory Board of CM.com, Bunzl Plc and IMCD N.V. Chair of the Board of Directors of Plasson Ltd.; Non executive board member OSG – Oran Safety Glass Ltd.; Biobee Ltd. and Nirotek; advisory board member Starplast Industries Member of the Supervisory Board of Nordzucker AG, Board Member of Financial Experts Association (FEA) and Senior Advisor at Horvath & Partner, PWC and Bain. Past positions Several executive positions at Novabase (1997 - 2018), in Portugal and Brazil, Chair of the board of directors of TAP Air Portugal (2021-2023) CEO (2001-2014) and CFO (1997-2001) Delta Lloyd N.V.; Executive functions at Royal Dutch Shell Founder of Cabka in 1994. Since its establishment and until listing, he served as Managing Director/ President of Cabka. Investor in start-ups with a focus on innovative technologies such as energy, mobility, and smart living Senior management functions at various companies, such as Amsterdam RAI, HEMA and Macintosh Fashion NL (1998-2018) CEO of Blokker B.V. (2020-2023) Executive functions at various companies, including Intergamma, Technische Unie, CRH and Royal Dutch Shell in the Netherlands and abroad. Board member SHV Holdings N.V. (2007-2016) from 2014 as CEO CEO of Plasson Industries Ltd. (2007 to 2013); several executive positions in India, Brazil, France and the U.S. CFO of DB SCHENKER AG, CFO/CIO of Media Saturn Holding GmbH, CEO of Loewe AG, several Senior management responsibilities in Finance, Strategy, M&A, a. o. Mercedes Car Group 7 The retirement schedule for the Supervisory Board can be found in the Articles of Association for the Supervisory Board in the investor section of the company website www.investors.cabka.com. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 48 Cabka Supervisory Board attendance records MANUEL BEJA NIEK HOEK GAT RAMON JEANINE HOLSCHER STEPHAN NANNINGA TOVA POSNER-HENKIN OLIVER SEIDL Number of SB positions in Dutch listed entities 1 3 1 1 3 1 1 TENURE Initial appointment 2022 2022 2022 2022 2022 2022 2024 End of current term Resigned in 20247 2026 2026 2026 2026 2026 to be appointed by AGM 2025 Reappointment possible Yes Yes Yes Yes Yes Yes Yes ROLES Role - SB Member Chair Vice-Chair Member Member Member Interim Member Role - Audit Ctee Member Member Member Member n.a. Chair Interim Member Role - Rem. and Nomination Ctee Member n.a. Member Chair Member n.a. Interim Member ATTENDANCE Attendance – SB 100% 100% 100% 100% 100% 100% 100% Attendance – AC 100% 100% 100% 100% n.a. 100% 100% Attendance – RNC 100% n.a. 100% 100% 100% n.a. 100% 7 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 49 Supervisory Board Meetings The Supervisory Board held seven main meetings in 2024: three online meetings, three face-to-face meetings and one hybrid meeting. The face-to-face meetings took place in Spain and the Netherlands. The hybrid meeting took place in Germany and the Netherlands. Information Gathering Monthly updates with the Management Board were held online, where the Management Board informed the Supervisory Board members about the monthly financials and discussed the progress of the business. The Supervisory Board also held online meetings to discuss and approve the first half-year results of 2024. There were also online meetings in 2024 for which the decision-making had been mandated by the Supervisory Board to the Chair of the Supervisory Board and the Chair of the Audit Committee, who both attended these calls. All Supervisory Board meetings were held in the presence of the Management Board. In addition, the Supervisory Board also convened in the absence of the Management Board, which usually happens either before or after a meeting. The Chair of the Supervisory Board is in regular close contact with the CEO, as is the Chair of the Audit Committee with the CFO. Meeting attendance of the Supervisory Board and the Committees can be found in the table on the previous page. Main Items Discussed by the Supervisory Board in 2024 The Supervisory Board performed its duties of supervising and advising the Management Board with respect to both recurring standard agenda items for Supervisory Board meetings and specific topics relevant at any given point in time. Besides the recurring standard agenda items, the following main items were on the agenda. Strategy The Management Board continued to execute their Strategic Priorities Plan in 2024 to structure and align all global and local projects with the Company’s vision, mission, and strategy. The updated strategy was discussed with the Supervisory Board in November and subsequently presented on the Capital Markets Day in Ieper. People and Organizational Based on advice and recommendations of the combined Nomination and Remuneration committee, the Supervisory Board provided active support to the Management Board in recruiting and building the crucial management positions below Management Board level to form the executive committee. As of November 13, 2024 the Supervisory Board appointed Mr. Oliver Seidl as an interim member of the Supervisory Board to replace Mr. Manuel Beja, who resigned on November 11, 2024. The appointment was supported by the full board and is subject to the approval of the Annual General Meeting of the shareholders in 2025. ESG The Supervisory Board is fully committed to the ESG Strategy Project developed by the Management Board. The Supervisory Board approved the double materiality analysis in 2024. Governance The Management Board and Supervisory Board work closely together in accordance with the two-tier board structure. The appointment of Alexander Masharov as CEO has had a positive impact on the relationship between the Management and Supervisory Board. This has enabled the boards to agree on common goals and revise the company's targets to ensure future growth. Governance Framework The following figure depicts Cabka’s overall governance framework and the most important governance elements and regulations at each level. Shareholders • Articles of Association • Relationship Agreement Supervisory Board • Supervisory Board Rules • Terms of Reference Audit • committee • Terms of Reference Nomination • and Remuneration committee Management Board • Management Board Rules Cabka Group overall • Code of Ethics • Insider Trading Policy • Diversity Policy • Environmental Policy • Human Rights Policy • Health and Safety Policy • Whistleblowing Policy • Related Party Transaction Policy • Disclosure committee Relationship and Stakeholder Management In performing its duties, the Supervisory Board acts in accordance with the interests of the company and the business connected with it, taking into consideration the interests of all of the company’s stakeholders. The Supervisory Board interacts not only with the management but also with Cabka’s employees on various occasions and in various contexts, for example during site visits or as part of the ongoing professional education of Supervisory Board members. Direct, one-to-one contact between Supervisory Board members and the Management Board and senior management generally follows naturally from topics discussed in the meetings of the Supervisory Board. These discussions draw on the expertise of individual Supervisory Board members, whose advice is sought on a wide range of specialist topics as required. Supervisory Board Committees The Supervisory Board has preparatory committees to cover key areas in more detail: the Audit committee and the combined Nomination and Remuneration committee. These committees are described in more detail below. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 50 Nominations and Remuneration Committee The Nomination and Remuneration Committee is a combined standing committee of the Supervisory Board and comprises Supervisory Board members Jeanine Holscher (Chair), Oliver Seidl (as interim member), Gat Ramon and Stephan Nanninga. Other Supervisory Board members have a standing invitation to attend the committee meetings. The Nomination and Remuneration committee met two times in 2024. The CFO and the CPO were invited to attend the Committee’s discussions on a case-by-case basis. The recommendations and minutes of all Nomination and Remuneration Committee meetings were shared with the Supervisory Board members. This feedback included advice and recommendations regarding topics to be approved by the Supervisory Board. The Supervisory Board members also have access to all the meeting materials posted for the Nomination and Remuneration Committee meetings. In 2024, discussions in the Nomination and Remuneration committee focused on establishing a new long and short-term incentive plan. The full Terms of Reference of the Nomination and Remuneration committee can be found on the company website under Corporate Governance. General Meeting of Shareholders The General Meeting of Shareholders is held annually and normally at the end of May. Shareholders can attend the meeting physically and ask questions and vote in person. Voting results are made available on our website immediately after the meeting. Within three months of the meeting, the draft minutes of the meeting are made available on our website for comments for a period of three months, after which the report is adopted by the Chair of the Supervisory Board and the Company Secretary. The final minutes are published on our website. Important matters that require the approval of the General Meeting of Shareholders are: • Adoption of the annual accounts; • Adoption of profit appropriation and dividend allocation; • Significant changes to the company's corporate governance; • Appointment, suspension, or dismissal of the members of the Management Board and the Supervisory Board; • Remuneration policy of the Management Board and the Supervisory Board; • Remuneration report of the Management Board and the Supervisory Board; • Discharge from liability of the members of the Management Board for the exercise of their duties; • Discharge from liability of the members of the Supervisory Board for the exercise of their duties; • Appointment of the external auditor; • Authorization to issue or purchase shares in Cabka's capital, and the cancellation of repurchased shares; • Designation of the Management Board, subject to approval of the Supervisory Board, as the competent body to restrict or exclude preemptive rights upon issuance of ordinary shares; • Adoption of amendments to the articles of association. Further details about the proposals that the Management Board or the Supervisory Board can submit to the General Meeting and the procedure according to which shareholders themselves can submit matters for consideration by the meeting are specified in the company's articles of association that can be found on our website. Share Capital and Voting Rights The number of issued and outstanding ordinary shares amounted to 24,710,600 at the end of 2024. The ordinary shares issued and outstanding have equal voting rights (one share equals one vote). About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 51 Remuneration Report KEY CHANGES 2023 POLICY (UNCHANGED FOR 2024) 2025 POLICY RATIONALE Deletion of Performance Shares for CEO This policy provided the CEO with a one-off entitlement to an additional 450,000 shares where vesting of the awards is subject to continued engagement and the condition that the shares trade at or above certain share price levels Performance Shares) Deleted. A new LTI plan was introduced for the CEO. Deletion of Performance Share Units for CEO This policy provided the CEO with Performance Share units of 142,853. Deleted. A new LTI plan was introduced for the CEO. new Short-term Incentive Plan One monthly salary subject to achieving an EBITDA of €32m 15% target amount based on group financial, functional team and individual targets. Payouts are conditional to achieving minimum 75% Group EBITDA. Cap at 120%. To replace the automatic annual base salary increase with a performance driven approach to align better with business performance, introducing new targets. New LTI Plan - providing restricted stock units Not included. CEO and CFO entitled to RSUs, grant level: 50% of annual base salary. 3yr vesting program linked to a cumulative 3yr EBITDA target. 5 yr lock-up period starting at granting date. SB has right to adjust actual grant. To align the long-term performance of the company, bringing the program in line with market practice This report explains how the remuneration policy was put into practice over the financial year 2024 by Cabka N.V. (“Company”), and it details the remuneration which was paid to or accrued by the individual members of the Management Board and Supervisory Board. Members of the Management Board and Supervisory Board are considered key group staff members. The full remuneration policy can be found on the remuneration page of the Cabka investor website. This Remuneration Report has been prepared in accordance with the relevant parts of Section 135, Book 2 of the Dutch Civil Code, in accordance with the EU guidelines based on the EU Shareholders' Rights Directive. The remuneration is furthermore determined in accordance with the remuneration policy adopted at the Extraordinary General Meeting on August 1, 2024. Introduction and Composition of the Remuneration Policy Cabka’s remuneration policy aligns with the company’s long-term development and strategy, taking into account the company’s vision, mission and values. The Remuneration Policy aims to motivate and retain highly qualified individuals, with a reward structure that is set on the basis of achieving a balance between short-term and long-term objectives, while promoting behavior geared towards long-term value creation for all stakeholders. As such, we have defined guiding principles that ensure that our remuneration policy and approach to remuneration reflect these objectives sufficiently. Cabka places sustainability at the core of its strategy. The company’s sustainability objectives are being increasingly integrated into its remuneration structure both in the short and long term. The last update of the remuneration policy was adopted by the Extraordinary General Meeting on August 1, 2024. The following table details the key changes in the Remuneration policy compared to the previously adopted policy: Management Board Remuneration 2024 The remuneration package for the Management Board comprises the following: • fixed annual base salary; • a short-term incentive scheme plan • participation in a long-term incentive plan (share-option scheme before 2024, restricted stock scheme as of 2024 onwards); • other benefits Cabka does not grant any loans, guarantees or advance payments to members of the Management Board. Fixed Annual Salary The annual maximum base remuneration of the members of the Management Board has been set by the Supervisory Board at a level reflecting the responsibilities and is currently maximized at €425,000 for the CEO and €320,000 for the CFO. The Supervisory Board is allowed to deviate from the maximized amount as stated in the remuneration policy under certain circumstances. The Supervisory Board may re-evaluate the base fee of the Management Board annually taking into account developments in the labor market and other factors, including potential changes in the scope of the job and level of responsibility of both Managing Directors and the remuneration paid by other companies of a similar size and complexity. Other Benefits Members of the Management Board are entitled to a company car, a pension, and a reimbursement for other travel costs. Apart from their remuneration, Managing Directors shall be reimbursed for all reasonable costs incurred. 8 Other compensation include benefits in kind such as pension contributions, social security contributions, insurances and company cars. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 52 Short-term Incentive Plan The objective of the short-term incentive plan is to motivate the Managing Directors to achieve outstanding results for the benefit of the long-term value creation of the Company, and to reward the Managing Directors with a competitive remuneration package which is linked to the growth and share value of the Company. This is in line with the Company’s strategic vision, which also focuses on long term value creation. Scenario analyses are conducted to assess the possible outcomes of the variable remuneration components and their effect on the remuneration of the Management Board. There was no payout of the short-term incentive plan for 2024 as the targets were not met. Total overview of the remuneration per Management Board member for 2024: Remuneration Management Board 2024 IN EURO x 1.000 FIXED VARIABLE FIXED REMUNERATION RSU EXPENSES PSU EXPENSES PS EXPENSES OTHER COMPENSATION 8 TOTAL REMUNERATION % FIXED % VARIABLE T. Litjens (Former CEO) 2024 365 — — — 26 391 93% 7% 2023 451 — 131 164 22 768 59% 41% A. Masharov 2024 150 11 — — 16 176 85% 15% 2023 — — — — — — —% —% F. Roerink 2024 320 23 9 — 41 393 81% 19% 2023 285 — 5 — 17 307 93% 7% N. Küpcü (Former CFO) 2024 — — 28 — — 28 —% 100% 2023 19 — 2 — — 21 90% 10% Total - 2024 835 33 37 — 83 988 84% 16% Total - 2023 755 — 138 164 39 1,097 69% 31% About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 53 Internal Pay Ratio In setting the remuneration policy for the members of the Management Board, the Supervisory Board also takes into account the internal pay ratio. The internal pay ratio between the average pay of Cabka employees vis-à-vis the average pay of the CEO is calculated based on the average 2024 remuneration of all Cabka employees vis-à-vis the 2024 remuneration of the CEO. The 2024 pay ratio is 7:1 (2023: 10:1) for the CEO. The pay ratio 2024 and 2023 is based on the specific guidance provided by the Monitoring Committee Corporate Governance Code in December 2020 on the calculation methodology of the pay ratio. The following table provides an overview of the remuneration of the members of the Management Board over the period since the listing of the company’s shares and the percentage change year on year: IN EURO X 1,000 2024 % CHANGE 2023 % CHANGE 2022 Management Board member A. Masharov 176 n/a — n/a — F. Roerink 393 28% 307 n/a — T. Litjens (Former CEO) 391 (49%) 768 (54%) 1,674 N. Küpcü (Former CFO) 28 32% 21 (94%) 374 Average employee salary 73 5% 69 6% 65 Performance Share Units (PSU) The Company operates a share option scheme (performance share units - PSU) that applies to the Management Board, among others, linked to the growth and share value of the Company and accordingly to longer term value creation and sustainability of the Company. For the Management Board and key staff of Cabka a PSU plan was granted on March 1, 2022. Additional rights were granted to the CFO per his appointment date on June 8, 2023. After the former CEO, Tim Litjens, stepped down as of October 1, 2024, all his PSU rights were terminated without any vesting or payout. The new CEO, Mr. Alexander Masharov did not receive any PSUs. If the price hurdles have not been reached within five years after the date of grant, the PSUs will automatically lapse. The PSUs for the CFO have a holding period of five (5) years as of the grant date. By applying a holding period of five (5) years, the remuneration structure is also geared towards forging a long-term mindset and long-term value creation. With this approach, a significant part of the remuneration is geared towards the longer term; this is in line with the Company’s strategic vision, which also focuses on long-term value creation. Subject to the terms and conditions of the PSU Plan, vesting of the awarded PSUs will occur on different vesting dates subject to the performance conditions being met in the following manner: • one-third over a period of three years (in three equal parts per year) after the shares have reached the conditions at the strike price of €11.00 • one-third over a period of three years (in three equal parts per year) after the shares have reached the conditions at the strike price of €12.00 • one-third over a period of three years (in three equal parts per year) after the shares have reached the conditions at the strike price of €13.00 OVERVIEW PSU-RIGHTS STRIKE PRICE FRANK ROERINK TOTAL CFO: Granted per 8 June 2023, expire 8 June 2028 PSU 11 €11 10,476 58,094 PSU 12 €12 10,476 58,094 PSU 13 €13 10,476 58,094 Total 31,428 174,281 Long-Term Incentives In addition to the current PSU plan, the EGM approved a new LTI program on August 1, 2024 for the management board and other management team members in order to enable them to share in Cabka’s future success and to reward contributions and promote long-term commitment. The new LTI program consists of two types of incentives, being (i) stock options (which will provide for a right to purchase shares in the share capital of the Company at a predetermined price) and (ii) RSUs (which will provide for a right to receive shares in the share capital of the Company at a predefined moment in the future). The eligible group of managers, the type of incentive (stock options and/ or RSUs) and the grant levels under the new LTI program will be subject to the approval of the Management Board and the Supervisory Board. Under the new LTI program, it is further envisaged that the Management Board will establish a grant allocation scheme with the number of stock options and/or RSUs to be granted based on the position of the relevant participant within the Company. Under the new LTI program, the relevant instruments (stock options and RSUs) will be subject to a vesting scheme. Non-vested stock options cannot be exercised and non-vested RSUs cannot be settled. If a participant leaves the Company, all granted but unvested stock options will be forfeited. The grant will be adjustable (from 0% to 130%) based on the job performance of the relevant participant. The adjustment of the grant will be determined after the vesting period of the stock options and/or RSUs based on the achievement of a cumulative three-year EBITDA target, which EBITDA target will be determined by the Supervisory Board. Accelerated vesting will be subject to the approval of the Supervisory Board and the Supervisory Board will have the right to overwrite and/or adjust any grant of stock options and/or RSUs. Participants will not be allowed to exercise stock options or sell shares received pursuant to the vesting of RSUs within the first 5 years following the date of grant. No more grants under the PSU program will be issued. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 54 Supervisory Board Remuneration 2024 The remuneration of the members of the Supervisory Board comprises the following: • Fixed annual fee; • Travel expenses and other expenses; Fixed Annual Fee The remuneration policy determines the annual fees for each position of the Supervisory Board, separated into membership and chairpersonship of the Supervisory Board and membership and chairpersonship of a committee. The fixed compensation for the Chair of the Supervisory Board has been set at €42,600 per year. The other Supervisory Directors will receive a fixed compensation of €31,950 per year. The Supervisory Directors will receive an additional €3,195 per membership, if any, of the following committees: Audit Committee, Remuneration Committee and nomination committee. Travel Expenses and Other Expenses Members of the Supervisory Board are entitled to a reimbursement for daily and travel expenses of an amount of up to €2,662.50 per year. Supervisory Board members are not awarded shares and/or share options, with the exception of Gat Ramon under the conditions as described in the Shareholder Circular dated January 10, 2022 and as stated in the overview below. Total overview of the remuneration per Supervisory Board member for 2024: Remuneration Supervisory Board IN EURO X 1,000 FIXED REMUNERATION VARIABLE REMUNERATION MEMBERSHIP COMMITTEES TRAVEL AND OTHER EXPENSES TOTAL REMUNERATION % OF FIXED REMUNERATION % OF VARIABLE REMUNERATION M. Beja (former SB Member) 33 6 0 40 100% —% G. Ramon 32 6 4 43 90% 10% N. Hoek 41 3 0 44 100% —% T.P. Henkin 32 3 0 35 100% —% J. Holscher 32 6 0 38 100% —% S. Nanninga 32 3 0 35 100% —% O. Seidl 4 1 0 6 93% 7% Total - 2024 207 30 5 241 98% 2% The following table specifies the total remuneration received by each Supervisory Board member in accordance with the period the Company's shares were traded on Euronext: IN EURO X 1,000 2024 2023 2022 M. Beja (former SB Member) 40 51 39 G. Ramon 43 41 32 N. Hoek 44 38 30 T.P. Henkin 35 38 30 J. Holscher 38 41 31 S. Nanninga 35 38 29 O. Seidl 6 — — Total remuneration 241 247 191 In addition, the majority shareholder RAM.ON GmbH (formerly known as RAM.ON finance GmbH, managed by the founder of Cabka Gat Ramon and Heike Ramon) has a consultancy agreement with Cabka for services as disclosed in the Shareholder Circular for a total of € 500,000, which was increased as of January 1, 2023 due to an inflation correction as stipulated in the consultancy agreement to an amount of € 520,168. Furthermore, Gat Ramon is an indirect shareholder of the Company via the legal entity RAM.ON GmbH, which is controlled by Gat Ramon. Niek Hoek and Stephan Nanninga are also shareholders of the Company. The other Supervisory Board members hold no shares in the Company. The table below shows the shareholdings of the Supervisory Board members: SB shareholdings 2024 IN SHARES NIEK HOEK GAT RAMON STEPHAN NANNINGA TOTAL Total number of shares 516,989 12,178,528 471,980 13,167,497 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 55 Risk Management Cabka operates in a rapidly changing environment, where customer demand is shifting in anticipation of upcoming regulatory changes in Europe and where volatility in the raw material, energy, and labor markets are increasing. The risk management process within Cabka involves the systematical identification, assessment, and management of risks throughout the company’s business activities. The main objective is to reduce uncertainty from both external and internal factors that could hinder Cabka’s mid- to long-term success. While it cannot fully eliminate risks, the process is designed to provide an acceptable degree of assurance against material negative implications for the business. Cabka follows a systematic evaluation process to address the principal risks that may arise as a result of the company’s operations. Throughout the past year, two comprehensive risk assessments were conducted across the Group in which all relevant departments were consulted about the development of Cabka’s high priority risks and potential additional high priority risk factors. As part of this biannual process, risks were evaluated in detail from both impact and likelihood of occurrence perspectives, resulting in the set of Cabka’s principal risks in 2024. In accordance with our bylaws, risk reporting is submitted to and reviewed by the Management Board and Supervisory Board on a regular basis. Cabka’s strategy department is responsible for the overall monitoring, assessment, and reporting process. In 2024, Cabka’s risk profile underwent several changes compared to the risk reporting in the Annual Report 2023. These changes are attributable to macro-developments in the plastics industry and the economy in general, as well as Cabka’s effective mitigation tactics that have successfully reduced certain high-priority risks and led to a shift in priorities for several principal risks. In addition, to the biannual business risk assessment, we also renewed our ESG-related double materiality assessment in 2024, providing an extended and deeper insight into Cabka’s sustainability-related material risks. The assessment itself was informed by Cabka’s risk management and its results were taken into account in the following enterprise risk evaluations. One of the most significant changes compared to 2023 includes the addition of a new risk for 2024: the risk of availability of capital. Furthermore, as a result of the recent oversupply of low-cost virgin plastics, primarily originating from China, the availability of recycled raw materials has remained relatively stable. Consequently, the risk associated with low availability of raw materials has significantly decreased from the highest priority to the 12th position in our principal risk cluster. Consequently, the risk of fires resulting from business operations has emerged as our highest priority risk in 2024. Despite stringent fire management measures implemented over the past years, our operations are still subject to a high likelihood and significant potential impact of fire incidents, which is evident from the moderate fire that occurred at our Weira plant in June 2024. In response, the company has identified additional actions to enhance fire prevention at the plant. These improvements will be systematically implemented in the short- to mid-term. Moreover, the risk of loss of key customers shifted from the 3. to the 1. priority risk group. This change reflects the challenging market conditions faced by some of Cabka’s key customers. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 56 Risk Appetite The risk appetite defines the level of risk we are prepared to accept for actions in different categories, such as strategic, financial, operational, people, and legal. It is defined by the Management Board and Supervisory Board and is embedded in the decision-making throughout the organization. Generally, Cabka’s decision-making orientation is risk averse, but there are certain distinctions based on the context of the decision. The acceptable risk range per category is shown in the illustration below. Risk Framework As an organization operating in the plastics industry, we face specific strategic, financial, operational, and compliance risks with varying degrees of controllability. Our risk framework is based on a structured process for identifying and evaluating the potential impact and likelihood of such risks occurring. Risk management is an inherent part of our strategic decision-making and its processes are therefore firmly integrated into our business activities. The primary component of our risk framework is our Risk Committee, which is responsible for identifying, assessing, and evaluating internal and external risks with potentially material impacts on Cabka’s business. ESG-related risks identified through our double materiality assessment are fully integrated in this process. The committee reports principal risks and mitigation strategies to the Management Board to facilitate the directors’ oversight of these risks. The committee also monitors individual principal risks and conducts risk analyses on new high-impact strategic business initiatives, advising the Management Board on their risk profile. The CFO, who acts as the head of the risk committee, holds the highest responsibility for risk management. The remaining members are representatives from the risk management team. The committee conducts research on potential and existing risks arising from external About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 57 developments on a semi-annual basis. Additionally, the risk management team within the committee discusses internal developments regarding all individual risks with the function leaders responsible for managing the risks in fixed semi-annual meetings. The committee then reports directly to the Management Board, who monitors the operation of risk management and internal control systems. Furthermore, the managing directors are responsible for informing the Supervisory Board about Cabka’s principal risks and risk management on an annual basis. The mechanisms underlying our risk framework are illustrated in the flow chart on the previous page. Risk Matrix In the last risk identification process, Cabka’s principal risks determined in the previous year were reassessed together with the respective business divisions. Additionally, potential new high-priority risks identified through research of both internal and external developments were analyzed and included in the prioritization process with the leaders of Cabka’s strategic, financial, operational, and legal & compliance functions.The Risk Committee updated the evaluation process in 2024 replacing the previously used three-tier prioritization scale with a five- tier system for both the potential impact and the likelihood of occurrence. Potential risks with a combined negligible impact and likelihood are not considered material for the business and hence not reported in this Matrix. The result of this prioritization is a list of 16 principal risks influencing the business in various ways. The risk matrix generated after the assessment process gives an overview of the assessed likelihood of occurrence and potential impact of each principal risk. Internal risk management and risk mitigation follow a three-step priority hierarchy based on the impact severity and likelihood of occurrence of each principal risk. Risks with both a potentially high impact on Cabka’ business and a high likelihood of occurrence have the highest priority. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 58 Principal Risk Overview SHORT NAME DESCRIPTION 2024 DEVELOPMENTS TREND MITIGATION TACTICS ESG Fires due to business operations Fires resulting from the storage and processing of waste streams into finished goods with major implications for the productivity and with the potential to result in significant costs Owning to stringent fire management measures, we did not experience any major fire events in 2024. We only reported one moderate fire in Weira in June 2024. We have undertaken additional operational optimizations in our manufacturing processes and storage concepts to further mitigate the inherent risk of fires. • The fire risk for our material handling business is limited due to comprehensive sprinkler systems installed in all production halls. • In the Eco business, fire alarm systems, including heat and smoke detection, and additional sprinkler systems are in place. • A fire management plan has been implemented, including an in- house fire department, a safety plan, and employee training. • In the event of fires impacting production, contingencies and alternative capacities have been established to ensure continued operations. • Internal audits and reviews of plant safety are conducted on a regular basis. NO Economic downturns Possibility of a recessionary economic climate leading to decreased demand and/or increasing costs, impacting the overall profitability Geopolitical tensions and political uncertainty have continued to influence the economic climate throughout 2024, increasing the risk of economic downturns in key markets. This has led to a noticeable decline in demand among some of Cabka's key customers. We are currently observing a slow recession in the market, with customers placing fewer orders, particularly in specific sectors. • Sufficient external production capacity and consistent share of temporary workers to maintain operational flexibility. • Contingency secured through multiple sites in the EU with similar capacity and asset park, allowing for diversity in geographical markets. • Strong growth pipeline with steady inflow of new product launches to counteract stagnating demand. • Spread of customer base over various industries minimizes impact felt in specific industries. NO Loss of key customers Inability to retain customers that make up high revenue share in a specific product category or overall sales Despite challenging market conditions, Cabka has successfully entered into additional long-term development partnerships and commercial agreements. These initiatives enable us to retain customers more effectively and gradually reduce our dependence on individual large accounts. • Leveraging proprietary intellectual property, patents, and product expertise to ensure strong customer reliance on Cabka. • Implementing legal safeguards to minimize the immediate financial impact. • Continuously diversifying the customer base to mitigate the influence of large individual accounts. • Developing a sales policy that standardizes the bargaining approach. YES About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 59 SHORT NAME DESCRIPTION 2024 DEVELOPMENTS TREND MITIGATION TACTICS ESG Raw material cost Insufficient availability of main raw material streams, both pelletized polymers, recycled or virgin, and post-industrial or -consumer waste Virgin material prices are currently trading at lower prices, driven by a distortion in supply and demand, with China's production capacity coming on stream in 2024. This situation is also affecting the prices of recycled materials, which remain relatively low at this time. • Procurement policy established, with increased success on securing longer term contracts with raw material suppliers. • Procurement teams consistently strive to fix volumes with suppliers at the earliest opportunity, minimizing exposure to the spot market. • Backward integration strategy ensures a significant portion of raw material input is recycled in-house, effectively reducing input costs. • Several initiatives are actively pursued to expand in-house recycling capacity and diversify material supply, enhancing efficiency. • In-house material teams continuously investigate alternative material streams to diversify sources. NO Regulatory compliance New or existing legislation limiting the company's ability to conduct its business In 2024, significant regulatory changes will directly or indirectly impact Cabka. The European Council adopted the PPWR in December 2024, and Cabka prepared for advanced sustainability reporting to be complaint with the CSRD in 2024, while facing significant challenges in light of unpredictability of final transposition into Dutch law. The CSDDD is expected to be adopted in 2025, requiring large customers to ensure supply chain compliance, which will concern some of our customers, thereby indirectly affecting Cabka. Taxes limiting virgin plastic use in packaging continue to influence our production and material sourcing strategies. While regulatory changes are expected to favor Cabka, they also increase complexity and compliance obligations. • In-house Legislation watch task force focussed on ESG regulations at Group level, continually monitoring potential developments relevant to Cabka facilitating immediate action if required. • Being a member of different associations to benefit from information shared on new legislation potentially affecting Cabka. • Regular review cycles of operational permits at all production sites to ensure continued compliance. • Advocacy efforts with specific focus on packaging policies and regulation to inform political decision makers on specifics of tertiary packaging in comparison to primary and secondary packaging. • Proactive approach to PPWR compliance. YES Extreme weather events Major natural events such as floods, storms, droughts, or forest fires disrupting production and causing productivity and financial losses In 2024, global temperatures reached unprecedented levels, making it the hottest year on record since 1850. For the first time, global mean temperatures consistently exceeded the critical threshold of 1.5°C. This extreme heat contributed to severe droughts and intense heatwaves across multiple continents. The year also saw devastating floods, hurricanes, and wildfires, underscoring the escalating severity of climate-related risks. This was tragically illustrated in Valencia, Spain, where October floods and mudslides led to widespread destruction. Cabka’s operations were not severely impacted by this event. • Following the 2022 flood at the Cabka North America Hazelwood plant, flood protection measures were implemented. • Impact from possible forest fires in Weira plant mitigated through a comprehensive fire management concept. • Climate risk assessment conducted for all production sites, highlighting adaptation measures, if necessary. YES About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 60 SHORT NAME DESCRIPTION 2024 DEVELOPMENTS TREND MITIGATION TACTICS ESG Price pressure Low price commodity goods from low-cost markets affecting price position and negatively influencing customer expectations Inflationary pressure continued, in particular reflected in higher labor costs. In order to reflect the decrease in raw material and energy prices, we lowered our product pricing in certain segments during 2024. Increased competition and shifts in consumer demand further intensified price pressure in 2024, impacting Cabka's short-term profitability. • Strategic focus on tailored products that address customer- specific needs, thereby enhancing customer retention and strengthening pricing power. • Large commercial agreements, often aimed at fostering long-term partnerships. • Backward integration allows for maintaining input prices below market average, ensuring competitive pricing for more commoditized product categories. • Increased focus for cost-reducing CapEx to drive efficiencies. • Flexible pricing approach to account for potential reductions in input costs, ensuring competitiveness. NO Availability of Capital Ability of the company to access additional sources of funding, in case of current sources of funding not being sufficient or not accessible. Cabka's net debt has increased due to higher cash outflows for investments during 2022-2023, which exceeded the cash generated by the ongoing business. • A stringent review process for capital expenditures has been implemented, aiming to reduce CapEx investments to €20 million per annum. • Enhancements in forecasting capabilities are being made through improvements in the Sales and Operations Planning (S&OP) process • One of the bank covenants, specifically the Net Debt Leverage ratio, has been successfully adjusted. YES Scarcity and cost of labor Low availability or difficulties to attract skilled labor force throughout the organization and increases in labor rates, also as a result of inflationary developments In 2024, the company continued to face challenges in finding skilled candidates, in particular for specialized roles, due to high market competition. This competition has contributed to increased labor costs for these specialized positions. Persistent inflation, higher interest rates, and a tight labor market have further driven up wages in some of our operating locations. Though Cabka was not affected at all locations equally, labor cost is taking an increased share of the overall cost base. • Restructured talent acquisition by using new communication channels like social media and intranet. • Strengthened brand image to connect better with the community and attract potential employees. • Improved hiring policy to enhance diversity and inclusivity. • Introduced a people charter to define values and expectations, promoting a positive culture. • Reviewed and streamlined compensation and benefits structure, linking it to company targets and performance. • Leveraged geographical footprint, including low-cost regions like Eastern Germany and Spain, to mitigate labor cost increases. • Gradually implemented process automation to reduce labor cost fluctuations and improve efficiency. • Rolled out initiatives like Health & Safety day and employee happiness surveys to engage with employees. YES Digitalization Insufficient digitalization of internal processes or disruption of existing activities and processes by new technology leading to inefficiencies and/or lower output and revenues In 2024, the drive towards digitalization gained significant momentum, underscoring the risks for companies that fail to keep up. Key advancements include the integration of AI and IoT into organizational processes, enhancing automation and decision- making. AI's improved reasoning and interaction via voice and video have significantly boosted user experiences and operational efficiencies. Additionally, the increased use of cloud computing has streamlined operations, enhancing efficiency and scalability. These technological advancements are reshaping industries, making digital transformation essential for businesses to stay competitive. • Sufficient digital infrastructure in place but not fully utilized. • Gap analysis conducted, outlining potential optimization and maximization of existing systems, resulting in concrete countermeasures; implementation planned for the short to mid- term. • In progress of implementing various systems throughout the organization allowing the company to further automate processes that were previously manual and paper-based, significantly enhancing efficiency and accuracy. NO About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 61 SHORT NAME DESCRIPTION 2024 DEVELOPMENTS TREND MITIGATION TACTICS ESG Corruption & fraud Potential for unethical practices within or against the organization such as bribery, which could result in financial losses, legal penalties, and harm to the company's trustworthiness The business and financial environment of a stock listed company is characterized by an increased risk of unethical practices, including insider trading. These risks pose threats to market integrity and corporate reputation. Over the past year, Cabka has continued to implement new policies and monitor their effectiveness to ensure a robust internal control environment. These efforts aim to prevent unethical practices, ensure legal compliance, and maintain trust. • Code of Conduct contains specific procedures for sensitive transactions (e.g., gifts). • Whistleblowing Policy and tool are in place to report corruption, bribery or any other unethical behavior. • Promoting a reporting culture amongst our employees and ensuring that each report is thoroughly investigated. • Insider trading policy provides clear guidelines on stock trading and the potential legal implications in cases of employee misconduct. • Procurement Policies: Including training to address corruption and bribery risks. • A stringent internal control framework with segregation of duties is managed to prevent fraud and errors. • Engagement with an independent organization assisting in reviewing the credibility of suppliers. • Clause on anti-bribery and corruption is included in procurement policies and other agreements the company has entered into, where appropriate. YES Low availability of materials Insufficient availability of main raw material streams, both pelletized polymers, recycled or virgin, and post-industrial or -consumer waste In recent years, we have observed an oversupply of low-cost virgin resin in the global market, primarily due to overproduction in certain regions, particularly China. This influx of cheap virgin plastic creates a challenging environment for plastic recyclers, as the costs of collecting, sorting, and processing often exceed the selling price of these materials. This economic imbalance makes it difficult for recycling businesses to remain profitable, forcing some to shut down. However, the supply of recycled materials has remained relatively stable in 2024. We anticipate that newly adopted regulations, such as the PPWR, will tip the scale back in favor of recycled materials. • Leveraging in-house material knowledge and backward integration to maximize the utilization of difficult-to-recycle, lower-quality, and less sought-after material streams. • Dedicated procurement teams, with a focus on securing sufficient volumes through mid-term supply contracts to reduce exposure to sport market. • Expanding in-house recycling capacities to reduce overall dependency on market. • Monitoring developments in chemical recycling technology advancements to stay informed about market trends. YES Increase in energy prices Energy prices experiencing strong volatility and/or rising into unforeseeable levels con- straining profitability Energy prices have seen a significant decrease since the spike experienced in 2022. Throughout 2023 and into 2024, prices have remained relatively stable. Although prices have returned to pre- war levels, price volatility remains a concern given the ongoing geopolitical tensions and supply chain issues. There has been a notable increase in renewable energy production, which now constitutes a significant portion of the EU's energy mix. • Established energy price fixing policy, with continuous monitoring of the forward market to capitalize on opportunities for locking in rates for partial or overall consumption. • Reduce energy consumption by replacing existing assets with new, more energy-efficient alternatives. • Actively diversify energy sources to mitigate the impact of steep price increases for specific sources. • Promote initiatives for in-house production of green energy (e.g., solar, wind, biomass) to decrease reliance on external energy supplies and minimize exposure to market price fluctuations. YES FX rate fluctuations Volatility in currency exchange rates leading to disadvantageous financial impact Exchange rates have continued to experience significant volatility, influenced by varying monetary policies, economic recovery paths, and ongoing geopolitical tensions. Despite these fluctuations, Cabka's exposure to FX risks has remained minimal, attributed to the robust FX hedging strategy in place. • Established FX hedging strategy NO About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 62 SHORT NAME DESCRIPTION 2024 DEVELOPMENTS TREND MITIGATION TACTICS ESG Interest rates High interest rates limiting the loan capacity and hence, financial flexibility of the company In response to rising inflation, central banks increased interest rates significantly, which led to higher borrowing costs. In the US, the Federal Reserve initially maintained high interest rates, but started to cut rates in the latter half of 2024. In Europe, the European Central Bank adjusted its monetary policy easing rates in mid-2024 as inflation rates moderated. Fortunately, Cabka was not directly impacted by the volatility in interest due to our effective hedging strategies. • Successful debt refinancing completed with expanded credit facility at improved terms. • Improved access to capital markets since listing due to global operations which diversifies our options for funding sources. • Necessity of short-term loans limited as a result of liquidity from IPO cash injection. • Active hedging of revolving short-term credit facilities. • Long-term loans secured at fixed rates. NO Cybersecurity Protection of vital cyber and IT infrastructure such as servers, intranet, communication channels, and enterprise resource planning systems As businesses increasingly depend on software and digital channels, the risk of cyber-attacks and data breaches has increased. New AI-driven threats, such as advanced phishing and deepfake technology, have increased the complexity of cybersecurity. To address these risks, Cabka has updated its IT policy to strengthen in-house knowledge on responding to potential threats. • Continuously improving the technological protection measures that we have in place, in consultation with a third-party cybersecurity advisor. • Ongoing organizational improvements, including systematic employee awareness programs and various training campaigns. • Continuous IT checks performed on phishing emails and potential threats. • AI tools will be reviewed in HY1 2025 to assess the impact on the organization NO About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 63 ESG Risk Management At Cabka, the assessment and evaluation of ESG-related risks is fully integrated into the general process of risk identification and enterprise risk management. Out of all principal risks listed above, seven ESG- related risks were identified during our assessment process. ESG-related risks are further categorized based on the sustainability topic they fall under, in line with the topical standards of the European Sustainability Reporting Standards (ESRS). • Climate Change: This includes the risks of extreme weather events and rising energy prices. • Circular Economy: The risk of low availability of materials falls under both climate change and circular economy aspects. • Regulatory Compliance: This pertains to our entity-specific ESG topic of regulatory compliance. • Own Workforce: The risk of scarcity and cost of labor are related to our own workforce. • Consumers and End-Users: The risk of loss of key customers. • Business conduct: The risk of availability of capital is connected to the topic of business conduct. An in-depth description of each material ESG-related risk and Cabka’s management approach are described in the individual chapters of the ESG statement in this Integrated Report. Climate Change Risks We make a distinction between physical and transition climate change risks. Physical risks refer to risks related to the physical implications of climate change, concretely, the increased severity and frequency of extreme weather events. Cabka’s principal risk extreme weather events, which encompass any potential financial impact due to damages to our infrastructure, addresses this issue. This risk materialized at our US subsidiary in St. Louis in August 2022, when an extraordinary flooding event severely damaged our production facility. To mitigate future incidents and further integrate this risk in our financial and strategic planning, a scenario analysis of physical climate risks was conducted in 2023 for Cabka’s operational locations as well as for our Innovation Center in Valencia. The analysis did not highlight any areas of concern for Cabka, which is why in our 2024 double materiality assessment we did not identify extreme weather events as material risks. However, the increasing frequency of such events, including the devastating flood event in Valencia, which fortunately did not have a material impact on our employees at that location, underscores the significance as a principal business risk. Since the update of Cabka’s ESG materiality assessment was based on the 2023 climate risk assessment and occurred prior to the flood in Valencia, a discrepancy exists between this year’s principal business risks and the material impacts, risks, and opportunities reported in our ESG statement. An update of the climate risk assessment is planned for 2025 to include more comprehensive climate scenarios, which will inform both the next double materiality assessment update and the enterprise risk management in the coming years. Transition risks involve the shift from a fossil fuel-reliant economy to a low-carbon economy. In this category, Cabka’s risk assessment highlighted two principal risks: rising energy prices and low availability of raw materials. With energy and material making up a large share of our input costs, both may restrict our competitive edge, predominantly in the price-sensitive portfolio business. In 2024, raw materials availability in the recycled plastic market and energy prices stabilized. Nevertheless, the long-term transition away from fossil fuels and linear resource use towards a low-carbon and circular economy is expected to put pressure on energy and raw material markets in the coming years. To mitigate these impacts, we are working towards a diversification of our (renewable) energy sources, as well as an expansion of our raw material streams. Circular Economy Risk The previously addressed risk of low availability of materials affects Cabka from both a climate change and a circular economy perspective. The EU’s plan to transition to a circular economy has recently begun to impact our industry through various restrictions on virgin plastic, virgin plastic packaging sales, as well as the adoption of the PPWR. While this development offers opportunities for Cabka as a manufacturer of predominantly recycled plastic products, the overall demand for plastic waste material will likely increase. This development is intensified through expected advancements in the chemical recycling sector. To limit this risk, Cabka is continuously optimizing the use of different low- value materials, thus extending in-house recycling capacity and diversifying material input streams. Governance Risks The principal risk of regulatory compliance applies to all three dimensions of ESG and is regularly evaluated in connection to ESG strategy development. Staying informed about new legislative developments that could affect Cabka’s operations both negatively and positively is an inherent part of our risk and ESG management. Several new regulations are gradually being adopted under the umbrella of the European Green Deal to drive sustainability in the EU. As legislation and standards are expected to further evolve, their impact on our operations will be evaluated with increasing proactivity to maximize arising opportunities. In light of this objective, Cabka supports and participates in initiatives within our value chain which address such new regulatory requirements. The risk of availability of capital is linked to the ESG-related potential material risk of access to capital. Although this is not currently the case, European regulation aims to connect the sustainability performance of organizations with their ability to obtain capital from financial institutions. Therefore, poor ESG performance in the future could impact Cabka’s access to funding and financing conditions. To mitigate this risk we implemented a comprehensive and pioneering sustainability strategy and a dedicated management framework described in our sustainability statements. People Risks Scarcity and cost of labor as a principal risk are connected to the material risk highlighted through our double materiality assessment of retention of talent. With rising labor market costs, remaining attractive enough as an employer to retain loyal employees becomes increasingly important. Cabka continues to invest in creating a desirable and equal work environment for our employees. The principal risk of loss of key customers is connected to the potential ESG-related risk of a damaged brand image, which could lead to the loss of customers due to health concerns regarding materials used in Cabka’s About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 64 products. These concerns may arise from substances that could be found harmful to human health in the future. We have a stringent quality process in place, including internal and external material testing, as well as a legislation task force that stays up to date on regulatory developments regarding chemicals, hazardous substances, and plastics. Nevertheless, we are developing further plans and actions to manage this risk holistically and will report on our progress in more detail in the future. Fraud and Non-Compliance The management of Cabka N.V. is aware of the inherent risk of fraud, both internally and externally, in carrying out its activities. With a footprint on two continents, Europe and North America, Cabka N.V. is exposed to a wide range of potentially fraudulent activities. Given Cabka’s activities as an industrial production company, the most important fraud risks are identified in the supply chain (shop in shop, kickbacks, bribery, false invoices), inventory and asset management (theft, manipulation), administrative processes (fraudulent payments, falsified records) and cyberattacks. Fraud in this context can result in a wide range of losses, ranging from negligible financial loss through petty theft of (office) materials to significant financial losses or damage to the organization's reputation. Fraud risks are explicitly included in the annual corporate risk assessment, to ensure active monitoring of fraud risk developments and continuous awareness among (senior) management. External parties must be able to trust that Cabka N.V. and its employees conduct business in a reliable, honest and careful manner. Therefore, Cabka N.V. has established a code of ethics that is shared with every employee at the start of their employment. The importance of the code of ethics and compliance are periodically emphasized and discussed between managers and employees. In addition, a separate suppliers’ code of conduct ensures that external suppliers’ actions are aligned with those of Cabka. A confidential advisor and tip line, including a whistleblower policy, have been implemented to report any abuses confidentially. The code of ethics; suppliers code of conduct; and the whistleblower policies are available on our website and are (therefore) also shared with our external business partners. Cabka N.V. has measures in place to significantly reduce its exposure to fraud. An important measure is the restriction of access (both physical and digital) to only those areas that individuals require to perform their day-to-day activities, and segregation of duties (SoD) so that important checks and balances are not combined within the same person. Both user access and SoD are reviewed and adjusted periodically to align with the company’s risk appetite should situations change. A significant number of general IT controls around user access and SoD have been implemented. Cabka continues to address and improve the design and effectiveness of the IT controls. In addition On top of the foundation of access management and SoD, Cabka also has an authorization matrix to clearly define the responsibilities and authorization limits for each function within the company. This ensures that the appropriate employees are involved when information is processed or decisions are made with a certain level of (fraud) risk. Despite implementing various internal control measures, management or the board can still potentially override internal controls and the risk of collusion among employees still exists. Cabka prioritizes transparent decision-making, maintains a robust governance structure, fosters an open culture for mutual accountability, appoints a confidential advisor for reporting non-ethical behavior anonymously, and conducts periodic internal and external audits to identify instances of overriding control measures. Conclusion Management is of the opinion that, with all procedures and control measures taken in account, the risk assessment provides a complete overview of the risks the company faces and that adequate procedures are in place to mitigate these risks. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 65 In-Control Statement Cabka’s assessment indicates that there are no significant deficiencies in its internal risk management and control systems for the reporting year. It is important to note that our systems and procedures do not guarantee the absolute achievement of all strategic, operational, compliance and reporting objectives, nor can it prevent all misstatements, inaccuracies, errors, fraud and non- compliance with laws and regulations. In accordance with provision 1.4.3. of the Dutch Corporate Governance Code and Article 5:25c of the Financial Supervision Act, the Management Board declares that, to the best of its knowledge: • The Annual Report 2024 provides sufficient insight into any deficiencies in the effectiveness of Cabka’s internal risk management and control systems. • The aforementioned risk management and control systems of the company offer reasonable assurance that the financial reporting does not contain any material inaccuracies. • Based on Cabka’s current state of affairs, it is justified that the financial reporting is prepared on a going concern basis (refer to Going Concern note). • The financial reporting systems provide reasonable assurance that Cabka’s financial reporting does not contain any material errors. • The sections in the Report of the Management Board list the material risks and uncertainties relevant to expectations regarding Cabka’s continuity for the period of 12 months following the preparation of the Report of the Management Board. • The financial statements included in this report provide a true and fair view of Cabka’s assets, liabilities, financial position and results for the financial year; and • The sections in the Report of the Management Board provide a true and fair view of the company’s position on the balance sheet date and its business operations and performance during the financial year as included in the financial statements. Amsterdam, 14 April 2025 Alexander MasharovFrank Roerink Chief Executive OfficerChief Financial Officer About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 66 Sustainability Statement 69 Basis for Preparation 70 Cabka's Materiality Assessment Process 74 Governance Structure 76 Environment 89 Social 95 Governance 98 Other Sustainability Related Disclosures A Day in the Life of a Pallet Modern Warehouse Efficiency At the distribution center, the pallet seamlessly integrates into the warehouse system. Effortlessly transferred onto a conveyor belt, it blends into the automated setup without disrupting flow. The pallet experiences the efficiency of modern-day warehousing operations and the importance of track and trace technology, as it can be easily retrieved among thousands of other pallets in the warehouse. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 67 Sustainability & Circularity: An Integral Part of our Business Model For many companies, ESG (Environmental, Social and Governance) is often a compliance exercise. At Cabka, ESG an integral part of our value chain approach and our business model, which is already very much geared towards environmental factors, sustainability and circularity. With our stock listing and evolving stakeholder expectations, we are committed to continuously improving our ESG performance. We recognize that it is not enough to simply have a business model that serves the circular economy; our operations must also be genuinely sustainable. This includes not only working with recycled plastics and reducing waste, but also considering for example our energy consumption, the type of energy we use, and how we handle social and governance topics. Katrin Poirier Sustainability Director, Cabka, Berlin Connect > Recycled in 2024 By favoring the reduction of waste overall, followed by reuse, and then recycling, we can pave the way for a sustainable future. 127kt About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 68 A day in the life of a pallet Sustainability & circularity: an integral part of our business model ESG is Embedded Throughout our Organization At Cabka, ESG policies are embedded and implemented throughout the entire organization. Our company operates as one large ESG department, where KPI data is collected, reviewed, and actions are implemented to improve our performance. The ESG department facilitates this process, ensuring that the entire organization is well- informed about legal requirements and stakeholder expectations. We play a coordinating and communicative role, both internally and externally, to ensure that everyone understands what is required and how to translate this into measures to improve our ESG performance. Continuously Improving our ESG Performance With the implementation of our ESG framework, we have developed and continue to refine a set of KPIs to measure our performance. These KPIs, along with stakeholder feedback, guide our plans for improvement, allowing us to make the good a bit better throughout our organization. We are taking measures to, for example, make our workplace safer and healthier, reduce our environmental impact, and increase our diversity and inclusiveness. We are still a production company, but we need to do this in the most sustainable manner possible. Sustainability is a journey, and we recognize that we may never reach the final stage of perfection. However, the system that we have built needs to be well-maintained and constantly developed. That is what EU legislation requires us to do and what we want to do as a company. Addressing Supplier Risks and Reducing Downstream Carbon Emissions In addressing supplier risks, Cabka has implemented a supplier code of ethics and a vetting system, ensuring that all raw material suppliers meet EU standards. The ESG department also contributes to reducing downstream carbon emissions by performing lifecycle assessments for customers. Using an externally developed tool, we calculate the carbon footprint reduction when customers opt for reusable plastic transport packaging. By inputting the customer’s transport system data, we can calculate the customer’s carbon footprint and identify areas where the customer can make the biggest impact. Reducing the transport distance is usually not an option; however, it can make a substantial difference when they use nestable pallets or foldable systems, which reduce the number of trucks that they have on the road, or when they improve their pallet management reducing the number of lost or broken pallets. Our engineers in our innovation department use our lifecycle assessments to advise customers on how to adapt their logistic process and on the reusable transport products that would be most suitable to optimize their whole logistic process and reduce their environmental footprint. “ESG is an integral part of our value chain approach and our business model, which is already very much geared towards environmental factors, sustainability, and circularity.” Katrin Poirier Sustainability Director, Cabka, Berlin About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 69 Basis for Preparation This ESG report is a consolidated statement covering the same scope as Cabka’s financial statements. Our double materiality assessment conducted in the first half of 2024 as the basis of our sustainability statement , is aligned with the Corporate Sustainability Reporting Directive (CSRD) requirements of ESRS 1 chapter 3 “Double materiality as the basis for sustainability disclosures”. It covers Cabka’s complete upstream value chain, starting from fourth-tier suppliers, as well as our extended downstream value chain to the point of end-of-life treatment of our products. We have not omitted any material information in the following sustainability statements related to intellectual property, know- how or the results of innovation. The reporting in the following sustainability statements is adjusted to the time horizons as defined by the European Sustainability Reporting Standards (ESRS) 1 section 6.4, i.e., short term = 0-1 year; medium term = 1-5 years; long term = >5 years, decided upon in agreement with Cabka’s Finance and Strategy Department. The preparation of the Sustainability Statement requires Cabka’s management to make judgements, estimates, and assumptions that may affect the reported information. These estimates and assumptions are based on industry standards, experience, and various other factors that are believed to be reasonable under the circumstances. Any significant measurement uncertainties, reporting errors from previous reporting periods, or value chain estimations and the use of indirect sources, along with the respective methodology, will be described in the each topical standard where applicable. The most significant estimates were made for reporting under the topical ESRS disclosure requirements E1-5, E1-6, E5-4. and S1-14. Where feasible, the quantitative data in this report is presented alongside comparative data from the previous financial year for context and clarity. In case of changed definitions or identified errors, we restate the comparative data if the change is expected to influence the decisions of key stakeholders or materially affect the credibility of the statement. Corrections are reported when deviations exceed 5% in quantitative indicators, or when qualitative information is found to be factually inaccurate, misleading, or non-compliant with applicable reporting frameworks. The sustainability statement includes disclosures stemming from other legislation as well as other sustainability reporting pronouncements; namely the EU taxonomy for sustainable activities, the recommendations by the Task Force on Climate-related Financial Disclosures (TCFD), the UN’s Sustainable Development Goals (SDGs), and the Greenhouse Gas Protocol’s Corporate Accounting and Reporting Standard. The EU Taxonomy statement is included in the ESG section on Environment, while disclosure on the UN SDGs is distributed throughout the whole sustainability statement, where such disclosure is applicable. The TCFD disclosure recommendations are included in the chapter on ESRS E1 and the Greenhouse Gas Protocol’s Standard is applied to the calculation and disclosure on Cabka’s Scope 1, 2, and 3 Greenhouse Gas emissions in the disclosure also on ESRS E1. Cabka is among the companies to whom the new sustainability reporting rules under the CSRD apply since January 1, 2024. However, since the legislation is in the form of a Directive and not a Regulation, it must first be transposed into national law to become legally binding for corporations. The deadline for transposition of the CSRD into national legislation by all EU Member States expired on July 6, 2024. The Dutch government failed to implement the CSRD into national law by the end of FY 2024. Meanwhile, Cabka has spent important resources on taking this significant step in sustainability reporting. We are fully committed to transparency and support the CSRD as a means to make non-financial reporting an actionable resource for all our stakeholders because it creates a clear set of rules and standards for sustainability reporting. Therefore, despite the uncertainty about the regulatory framework based on the unpredictability of political decisions on CSRD transposition, we report in accordance with the CSRD and applicable ESRS for the financial year 2024 and have in consultation with our auditors opted for third-party limited assurance of the sustainability statement to ensure CSRD and ESRS compliance. This is the first integrated annual report published by Cabka, which is fully compliant with the new reporting standards of the CSRD and ESRS. Therefore, while the disclosures included in this report have been prepared in the context of new sustainability reporting standards, some entity-specific disclosures and temporary interpretations were required to remain true to Cabka’s ESG strategy and to account for inherent measurement or evaluation uncertainties. We have furthermore integrated certain strategy and corporate governance disclosures from ESRS 2 into other parts of this report since this information is more effectively understood when considered alongside related content in these sections: • ESRS 2 - GOV-1, GOV-3 & GOV-5: Governance & Risk • ESRS 2 - GOV 2: How we create value, Governance & Risk • ESRS 2 - SBM-1: About us, How we create value • ESRS 2 - SBM-2 & SBM-3: How we create value • ESRS 2 - IRO-1: How we create value Two of the sustainability topics identified as material during our 2024 double materiality assessment are subject to the phase-in provisions in accordance with Appendix C of ESRS 1, namely ESRS S1 Own Workforce and ESRS S4 Consumers & End-Users. For ESRS S1, we have chosen to voluntarily report in detail on relevant policies, actions, metrics, and targets in the sustainability statement chapter “Our People”. Individual data points that are excluded under the phase-in provision are noted in the sustainability statement content index. For ESRS S4, we have chosen to make use of the phase-in provision and have included only a brief description of any targets, policies, actions, and metrics in accordance with ESRS 2 BP-2 §17. This disclosure is available in chapter “Our Customers: Building Partnerships for a Sustainable Future”. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 70 Cabka’s Materiality Assessment Process To identify the ESG-related impacts, risks, and opportunities material to Cabka, a comprehensive double materiality assessment (DMA) was conducted in early 2024 in accordance with the CSRD ESRS 1 guidelines. The assessment process have been modified compared to the previous reporting periods, whereas the focus is placed on individual impacts, risks, and opportunities (IROs) within the ESG topics, rather than assessing the financial and impact materiality of the ESG topics. This new approach ensures a deeper insight into the reasons behind the materiality of certain ESG topics and allows for a more precise management of ESG-related issues. We will carry out a first update of the assessment in 2025 to prepare for the next reporting period and review whether the material IROs from the past reporting period are still relevant. The materiality assessment covered Cabka’s value chain from 4th tier suppliers in the upstream value chain up to 3rd tier customers downstream of Cabka’s own operations. It included the present time horizons, as well as the short-term (up to one year), medium-term (1-5 years), and long-term (more than 5 years) future time horizons. The present is defined as the time at which the materiality assessment was conducted. Developing an overview of the context in which Cabka operates is a key measure to identifying potential relevant IROs. Therefore, the assessment considered Cabka’s activities, geographical locations and their potential vicinity to protected natural areas, products, assets, business plan, strategy, financial performance, business relationships, value chain, legislative developments, and all identified stakeholders. Moreover, extensive research was conducted on media reports that impacted other companies’ financial performance and/or reputation, international standards regarding ESG, relevant industry developments and trends as well as scientific papers published on the industry and market in which Cabka operates. This research also included an analysis of sustainability reporting by other companies in our industry and ESG criteria utilized by different sustainability ratings and ESG indices for investment purposes. Since Cabka does not operate anywhere in or near biodiversity-sensitive areas, and is not significantly dependent on ecosystem services for the execution of its economic activities, biodiversity related material IROs could be ruled out. All the information gathered served as input to identify potential and actual IROs for Cabka. Dependencies that were identified during the evaluation of Cabka’s stakeholders and business activities were translated into potential risks, as were impacts on people and the environment by Cabka and its business partners, where applicable. The identified IROs were subsequently categorized as actual or potential, the value chain position where they would occur or are occurring, and the time horizon of occurrence. The criteria used to assess the materiality of each identified IRO were based on the criteria requirements of the CSRD ESRS 1 §43-51 and differed depending on whether an impact, a risk, or an opportunity was analyzed, and additionally for impacts, whether they were actual or potential. For each identified IRO, extensive research was conducted to assess its materiality, including external sources such as market analyses, scientific papers, media reports, and interviews with affected stakeholders - including local communities where applicable - and users of Cabka’s sustainability statement, as well as internal sources such as internal analyses, contracts, and the expertise from various departments and positions within Cabka. For the assessment of ESG-related risks, scenario analyses for the progression of climate change and water scarcity were additionally employed. A color-coded risk matrix was used as the risk assessment tool for both impact and financial materiality. Despite extensive research, the determination of the level of impact of IROs based on the determined criteria could not always be based on clear indicators and instead had to be at least partly based on judgement. Impact Materiality Assessment To assess the materiality of impacts by Cabka on people and the environment, caused directly or indirectly through its value chain, we used the criteria of impact scope, scale, likelihood of occurrence (only for potential impacts), and impact remediability on a scale of 1 to 5 (only for negative impacts). The assessment covered all of Cabka’s business activities and geographical locations, and business relationships in the upstream and downstream value chain connected to the plastic industry and transport packaging sector. The analysis approach followed the philosophy of quantitative over qualitative assessment. Contrary to the financial impacts, the quantitative values utilized here differed for each impact and moved in the realm of volumes, weights, and geographical sizes. Where impacts could not be quantified, a qualitative assessment approach was taken. The threshold for impact materiality was determined based on the applicable quantitative combinations of assessment criteria. For positive impacts, the criteria used were the impact scope and scale, as all positive impacts were classified as actual and not potential, excluding the likelihood of occurrence as a criterion. The level of impact determined for both scope and scale had to reach a combined numerical value of 6 to be classified as material for Cabka. The same thresholds were applied for actual negative impacts, with the addition of remediability as a criterion. Therefore, for actual negative impacts, the impact score of scope and scale were first averaged and then combined with the numerical value determined for the level of remediability. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 71 Potential negative effects caused by Cabka or its business partners in the value chain are the most abstract and difficult to track, especially when impacts stem from suppliers or customers that are not direct business partners of Cabka but are situated further down the value chain. Therefore, a higher numerical threshold of 7 was established for such impacts to be deemed material enough to be addressed further in Cabka’s ESG management in comparison to actual negative effects. The impacts of scope, scale & remediability were averaged and then combined with determined level of likelihood. Financial Materiality Assessment For this assessment of potential risks and opportunities, we first determined which area of finance the risk or opportunity would be expected to affect in the set time horizon. Subsequently, we established the likelihood of occurrence and the potential magnitude of the financial impact. Similar to the impact materiality assessment, we prioritized quantifying the magnitude of effects over qualitative analysis. The scale for the magnitude of effects was linked to specific monetary values, with the fourth level on a scale from 1 to 5 being set to the monetary value that is also used as the threshold for financial materiality for general business purposes. The same scale was applied to the level of likelihood, determined based on qualitative criteria. Impacts, Risks and Opportunities Overview –– Negative Impacts – Risks |+ Opportunities |++ Positive Impact Environment ò Climate change ò Circular economy Own Activities ò GHG emissions ò Increase in energy costs ò Attracting talent ò Recycled material use ò Waste created in operations ò Raw material availability ò Leveraging sustainability trends ò Resource consumption ò Retention of talent ò Market leadership through ESG Social ò Own workforce ò Consumers & End users ò Health & Safety incidents ò Concerns regarding materials used ò Innovation ò Changes to ESG-related regulations ò Availability of capital Governance ò Regulatory compliance ò Business conduct ò Innovation Downstream ò Sustainable products demand ò Transport efficiency benefits ò Sustainability regulations After establishing both the likelihood and potential magnitude, we determined the risk and opportunity materiality based on the combinations of the individual scores for likelihood and magnitude. The threshold for materiality was set at a combined score of 6 of the financial impact magnitude and likelihood of occurrence of potential risks and opportunities. Sustainability-related risks at Cabka are assessed in both the context of the double materiality assessment as well as the general financial risk management process of the company, using the same criteria to determine materiality. Thus, all material risks that are reported in the context of this sustainability statement are also reported in the risk management section of the management report in the general business context. In general, the results of the double materiality assessment inform Cabka’s half-yearly overall risk management process and risk profile, and vice versa. Where applicable, the same criteria and grading scales are used for both the DMA and the overall risk assessment. Any relevant information gathered to identify, assess, and manage principal business risks and ESG-related material IROs is included in the respective other analysis. Final Assessment Results For the assessment results, the preliminary DMA results underwent several internal control procedures. This process began with an internal review by Cabka’s Sustainability Department and external advisor for CSRD implementation. It was followed by a validation process with direct business partners (selected suppliers and customers) and concluded with the evaluation and approval by Cabka’s Executive Leadership Team, Management Board, and Supervisory Board. The impacts, risks, and opportunities that have been determined as material for Cabka are illustrated below. Not all material IROs that were identified during the assessment process are covered by the ESRS topical standards, namely the risks Changes to ESG-related regulations and Availability of capital, and the opportunities regarding Sustainability regulations and Innovation. For these specific IROs, Cabka has included a description of their management according to the minimum disclosure requirements of ESRS 2. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 72 ESRS STANDARD CLASSIFICATION MATERIAL IRO TIME HORIZON LOCATION IN THE VALUE CHAIN DESCRIPTION ò E1 Climate change Risk — Increase in energy costs Long-term ò ò ò ò ò Own operations Transitional risk related to the ongoing switch from fossil fuel-based energy production to renewable sources in Europe and North America. Some predictions see this change in the energy market and the related potential increase in volatility of energy availability to lead to increasing energy prices. Negative impact —— GHG emissions caused by Cabka’s operations Short-term ò ò ò ò ò Own operations The recycling of plastic waste and manufacturing of plastic products requires energy. Cabka’s manufacturing plants are currently still using fossil fuels as their energy source, impacting climate change. ò E5 Resource use and circular economy Risks — Decreasing availability of plastic raw materials Short-term to long-term ò ò ò ò ò Own operations Since Cabka’s products are primarily made from recycled materials, the availability of sufficient amounts of recycled plastic materials and plastic waste is an ongoing concern. Shortages might be caused by increasing competition and demand, rising costs, or shortages in virgin material supplied to the market. Furthermore, a long-term decrease in plastic production due to consumer shift away from plastic packaging and products can ultimately reduce the available recycled plastic feedstock. Negative impact —— Waste created in Cabka’s recycling operations Short-term ò ò ò ò ò Own operations Due to high levels of contamination, not all waste being processed in Cabka’s recycling facilities can be recovered as material input for our products. Residual waste can only be used as fuel for energy recovery. Negative impact —— Resource consumption Short-term ò ò ò ò ò Own operations Cabka’s manufacturing is partly still dependent on non-regenerative raw materials, impacting the availability of the world’s finite resources. Positive impact + Recycled raw material use Short-term ò ò ò ò ò Own operations Use of mostly recycled materials in the manufacturing of our products, leading the market in circular transport packaging and driving the circular economy. ò S1 Own workforce Opportunity + Attraction of talent Short-term to medium-term ò ò ò ò ò Own operations A strong commitment to sustainability and transparency helps us attract and retain top talent, ensuring continued progress towards our strategic objectives. Risk — Retention of talent Medium-term to long-term ò ò ò ò ò Own operations The potential future inability to retain talent at Cabka could lead to unsuccessful management of operations and hinder the pursuit of our strategic objectives in the long term. Negative impact —— Health or safety incidents Short-term ò ò ò ò ò Own operations Workplace safety is of high importance at Cabka, particularly for those working in our production and recycling operations. These employees face a higher risk of occupational health and safety incidents due to their direct interaction with machinery and exposure to more complex operational environments. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 73 ESRS STANDARD CLASSIFICATION MATERIAL IRO TIME HORIZON LOCATION IN THE VALUE CHAIN DESCRIPTION ò S4 Consumers and end-users Opportunities + Increase in demand for sustainability in products and businesses Short-term to medium-term ò ò ò ò ò Own operations & Downstream We expect continued growth in demand for sustainable packaging solutions with the implementation of new packaging and packaging waste regulation. This growth, together with the general trend towards sustainability present great opportunities for Cabka to attract new customers and business partners and ensure the loyalty of our existing customers. Positive impact ++ Increasing customers’ transport system efficiency Short-term ò ò ò ò ò Downstream Cabka has a significant positive impact on the transport efficiency benefits for our customers due to the nestability or foldability of our products, higher durability, fewer damages to transported products, as well as reduced risks of injuries. Risk — Concerns regarding materials used in our products Long-term ò ò ò ò ò Own operations While this is not the case at present, a potential risk pertains that certain materials or substances present in the products Cabka manufactures might be found to be harmful to our customers or the environment in the future, which could impact our business activities. ò G1 Business conduct Opportunities + Improving company stance and market leadership through sustainability Medium-term ò ò ò ò ò Own operations Transparency in reporting on Cabka’s sustainable business practices and management of ESG-related risks, opportunities, and impacts, in line with European reporting regulations is seen as a crucial opportunity to strengthen our market leader position, enhance stakeholder trust, and attract investors and customers. Risk — Availability of capital Long-term ò ò ò ò ò Own operations The sustainability of business activities of organizations is being increasingly connected to financing and the interest of investors on sustainability information is growing progressively. It is likely, that a potentially poor performance in certain ESG areas reduces the access to capital for Cabka in the future. ò Innovation Opportunities + Innovation securing the future of our business Short-term to long-term ò ò ò ò ò Own operations Further innovation in recycling and materials science by Cabka’s Innovation Center creates more innovative and more sustainable products. Furthermore, new automation technologies can enhance material efficiency, improve quality control processes, and reduce the need for manual labor. ò Regulatory requirements Risks — Changes to ESG-related regulations Short-term to long-term ò ò ò ò ò Own operations Future changes to environmental, health, and safety laws might increase operational costs for our production sites, and under new EU plastic laws, we might be required to change the design or make-up of our material handling products to ensure compliance, leading to potentially costly changes in procurement, development, and manufacturing. Opportunities + Leveraging on sustainability regulations Medium-term ò ò ò ò ò Downstream The greater regulatory focus on environmental topics opens up opportunities for Cabka. We are already a market leader in the use of recycled raw materials, design for recyclability, and product reuse, making it easier for our customers to be compliant as well. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 74 Governance Structure ESG Governance at Cabka Cabka fully understands that oversight on Impacts, Risks and Opportunities (IRO) starts with a competent board on sustainability matters. Our Management Board is informed regularly through our strategic framework, risk management structure, and ESG management on environmental, social and governance results, progress on roadmaps, and required actions. Cabka is committed to achieving its climate targets of becoming carbon neutral in its own operations by 2030 and continues to expand its knowledge of climate risks. With more advanced analysis and the development of action plans, the competence of our CEO and CFO on climate-related issues will further evolve. IRO management is supervised by members of the Executive Leadership Team (ELT) and guided by ESG topic leaders responsible for implementing policies and agreed actions to achieve set targets. The ELT oversees and monitors IRO management and ESG reporting, along with the setting of corporate targets and approval of policies. In 2022, Cabka established an ESG Taskforce to address the sustainability challenges faced by the company and to ensure optimal management of the Group's Environmental, Social and Governance aspects. Comprised of the company's senior management, the Taskforce performs the task of macro-oversight of the overall ESG strategy and manages the aspects identified as material to Cabka. The Taskforce is structured to enable decision-making related to IRO at the Group level with a holistic perspective. Members of the Taskforce include the ELT, our Sustainability Director, and the topic leaders of Cabka’s material ESG topics. Other contributing members are Cabka’s Compliance Officer, the VP of Group Controlling, and the Corporate Strategy Manager. The ESG Taskforce and its members report regularly in the monthly Executive Leadership Team meetings about ongoing projects and progress. There is monthly KPI reporting on social topics with HR statistics and health & safety incident updates provided by the topic leaders. On environmental topics, the implementation of actions is overseen by the COO and discussed directly with the topic leaders and their support teams. Our CPO monitors the effects of policies and actions to mitigate risks and impacts on social matters. This decentralized approach to ESG governance benefits from the individual expertise of topic leaders, which allows Cabka to holistically monitor ESG trends and analyze improvement areas. Within Cabka’s integrated ESG Management approach, topic leaders from various business functions are responsible for the global supervision of their ESG topics, monitoring progress towards the set objectives, as well as the implementation of topic-related actions at Group level. Topic leaders are chosen based on their optimal position and expertise to perform this role according to each specific material topic. During 2024, we updated our materiality assessment and reviewed our IRO management. With the application of CSRD disclosure requirements, there is a stronger focus on material IRO within ESG topics. As a result, new topic leaders were assigned to some of our ESG topics and newly joined the ESG Taskforce. Cabka’s Sustainability Department, headed by our Sustainability Director, supports the topic leaders, providing a holistic perspective and expertise in the technical aspects of ESG management and collaborating with topic leaders in the elaboration of targets and management related to material IRO. We recognize that further integration of ESG considerations into our daily business can only be achieved with a committed, flexible, and professional team of experts. Cabka’s ESG Taskforce In 2024, Cabka introduced a new short-term incentive (STI) scheme for the senior management, including a financial and an ESG related component. It is designed to further motivate and align individual and collective performance with our organizational objectives, fostering a culture of excellence and collaboration. The STI scheme was approved by the ELT and Supervisory Board and covers the top management functions in the organization, excluding the Management Board. The scheme addresses the implementation of actions and the achievement of targets in the area of climate change and energy, health & safety, diversity, and sustainable procurement, in total making up 35% of the STI scheme, equally distributed between the four sustainability- related targets. The STI scheme is therefore not directly linked with our GHG emission-reduction targets as we chose to focus on energy efficiency measures instead. The reason for this is that a larger proportion of Cabka’s workforce can contribute to energy efficiency measures than emissions-reduction targets. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 75 Addressing Due Diligence in the ESG Statement CORE ELEMENTS OF DUE DILIGENCE REPORT CHAPTERS PAGES Embedding due diligence in governance, strategy and business model • ESG Governance at Cabka • Risk Management • Our Strategy • Cabka’s Materiality Assessment Process • Environment, Social, Governance chapters 16-18, 55-57, 70-75, 81-99 Engaging with affected stakeholders in all key steps of the due diligence • ESG Governance at Cabka • Stakeholders • Cabka’s Materiality Assessment Process • Our People • Working Towards a Positive Climate Impact 23-24, 70-75, 81-83, 89-91 Identifying and assessing impacts • Cabka’s Materiality Assessment Process • Environment, Social, Governance chapters 70-73, 81-99 Taking action to address those adverse impacts • Environment, Social, Governance chapters 81-99 Tracking the effectiveness of these efforts and communicating • Environment, Social, Governance chapters 81-99 Our sustainability statement is developed by the ESG Taskforce. The core reporting team consists of members of the Sustainability Department and the Finance Department. For the identification of material topics, the Sustainability Department has conducted the double materiality assessment in cooperation with an external advisor. Members of the Executive Board oversaw the process and were directly involved in the data collection process. The Executive Leadership Team reviewed the final results. The ESG team collaborates with the topic owners for the reporting on their IRO and, in cooperation with the Finance department, reviews the qualitative and quantitative information received. To mitigate the risk of overreporting or underreporting, we use robust definitions and clear data collection processes and analysis descriptions. Depending on the metric, data owners are defined and a data reviewer is assigned to reduce the risk of inaccuracy. There is currently no periodic reporting of the findings of risk assessments to the Administrative, Management, and Supervisory (AMS) bodies. The Executive Board approves and signs off the report. Our financial auditor has been engaged to provide limited assurance on our sustainability statement. The report is published upon approval of the Supervisory Board. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 76 Environment EU Taxonomy Regulatory Framework In order to meet the EU’s climate targets as well as the objectives of the European Green Deal, investments must be directed towards sustainable economic undertakings. Prerequisite for this is a common language and definition of the sustainability of different economic activities. The EU Taxonomy serves as such a common classification system, enabling the financing of sustainable developments through the identification of economic activities that support the EU’s sustainability goals. The EU Taxonomy Regulation entered into force in July 2020. It establishes six environmental objectives of which climate change mitigation (1) and climate change adaptation (2) became effective in 2021. Further delegated acts were adopted in 2023 to define economic activities contributing to the remaining objectives of sustainable use and protection of water and marine resources (3), transition to a circular economy (4), pollution prevention and control (5) and protection and restoration of biodiversity and ecosystems (6). Thus the reporting scope expanded from 2022 to 2023. No further delegated acts with effect on our taxonomy reporting were adopted during 2024. Technical Screening Criteria for these objectives enable the evaluation of taxonomy eligibility of those economic activities. For alignment with the EU Taxonomy, that is the definition of an economic activity to be considered environmentally sustainable, activities undergo further screening to confirm that there is no significant harm to other environmental objectives and that minimum safeguards are being met. The Taxonomy framework provisions effective at the publishing date of this Annual Report requires Cabka to disclose the proportion of its turnover, capital, and operational expenditure from non-eligible, taxonomy-eligible, and taxonomy-aligned activities. Cabka’s Taxonomy Eligibility Economic Activities defined in Delegated Regulation (EU) 2021/2139 and the additional 2023 Regulation (EU) 2023/2485 and (EU) 2023/2486 were used to identify Cabka’s activities that are taxonomy eligible in 2024. In the analysis, we followed the review of Cabka’s economic activities undertaken for 2023 reporting. With Cabka’s integrated business model, in-house recycled plastics do not generate direct revenues but are further processed into final products. The recycling operations are classified in the EU Taxonomy economic activity of Material recovery from non-hazardous waste (5.9) as defined in the Delegated Act (EU) 2021/2139 Annex I and Annex II. Cabka’s material handling manufacturing operations and resulting products of plastic pallets and large load carriers fall within the Manufacture of Plastic Packaging Goods (1.1) as defined in Annex II of Delegated Act (EU) 2023/2486. Cabka’s Eligible Activities ENVIRONMENTAL OBJECTIVE ACTIVITY NUMBER ACTIVITY NAME DESCRIPTION AND MAIN ACTIVITIES OF CABKA Climate Change Mitigation / Climate Change Adaptation 5.9 Material recovery from non- hazardous waste Cabka engages in recycling of post-consumer and post- industrial waste streams to recover secondary materials to be processed again in subsequent in-house and external product manufacturing and replacing virgin material. Transition to the circular economy 1.1 Manufacture of plastic packaging goods Cabka manufactures reusable plastic pallets and containers for packaging and transport purposes out of recycled material. Status on Alignment EU Taxonomy alignment requires an assessment of compliance with the technical screening section of each economic activity, which consists of 1) substantial contribution criteria as well as 2) “Do no significant harm” (DNSH) criteria defined for each economic activity and compliance with minimum social safeguards. Cabka conducted a EU Taxonomy alignment assessment for its operations that are classified in EU Taxonomy activities 1.1 Manufacture of Plastic Packaging Goods and 5.9 Material recovery from non-hazardous waste. Interpretation of assessment criteria is not straightforward in certain circumstances as they refer to multiple regulations and directives and it is currently difficult to determine the documentation requirements of this assessment. We have thus taken a range of perspectives and used a multitude of sources. Considering the evolving character of the European regulatory framework, the level of complexity of the available legislation, and the lack of clarity around how to interpret and apply it, we anticipate this interpretation to require an annual review to ensure conformity with the criteria. The criteria set by the EU Taxonomy for compliance with the substantial contribution to the transition to a circular economy with the manufacture of plastic packaging goods are orientated towards requirements on packaging goods already in place on a European and national level. We have conducted a product level assessment to identify aligned products. Recycling activities have been assessed based on their contribution compliance with the means of recycling yields to document the required threshold of the recycling streams defined by the EU Taxonomy. DNSH criteria for both economic activities require a climate risk and vulnerability assessment. This aligns with the physical risk assessment conducted for our overall business. The assessment was prepared and conducted according to the requirements set by the EU Taxonomy in (EU) 2021/2139 Appendix A of Annex II and subsequent Delegated Acts About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 77 (EU) 2023/2485 and (EU) 2023/2486. External guidance and required climate projections were used to evaluate the impact of climate change. Action plans to mitigate those impacts were developed despite that no physical climate risk material to the economic activities listed above were identified. DNSH criteria were also assessed for compliance with water and marine resources, pollution prevention and control for the packaging goods manufacturing activities as well as biodiversity and ecosystems requirements for both material recovery as well as packaging goods activities. Interpretation requires extensive review of local documentation, site specificities, and local regulation. Judgements on alignment were made following a conservative approach. The last pillar in the alignment assessment relates to compliance with the minimum safeguards. These safeguards encompass the procedures implemented by a company carrying out an economic activity to ensure alignment in accordance with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. The initial alignment review was conducted in 2022 and is annually updated. Following these assessments, Cabka reports taxonomy eligible as well as taxonomy aligned turnover, capital, and operational expenditure (CapEx and OpEx) for 2024. Cabka’s Taxonomy Eligibility and Alignment DISCLOSURE TOTAL IN EURO X 1,000 ALIGNMENT IN % ELIGIBILITY IN % Turnover 181,868 52% 36% CapEx 18,972 50% 16% OpEx 16,360 61% 24% EU Taxonomy KPI Disclosure Tables The KPI tables summarize the outcome of our assessment of eligibility and alignment of Turnover, CapEx and OpEx. Cabka‘s Taxonomy Eligibility and Alignment per Taxonomy Environmental Objective TURNOVER CAPEX OPEX ENVIRONMENTAL OBJECTIVE TAXONOMY ALIGNED TAXONOMY ELIGIBLE TAXONOMY ALIGNED TAXONOMY ELIGIBLE TAXONOMY ALIGNED TAXONOMY ELIGIBLE CCM - Climate Change Mitigation 7% —% 6% —% 16% —% CCA - Climate Change Adaptation —% —% —% —% —% —% WTR - Sustainable Use and Protection of Water and Marine Resources —% —% —% —% —% —% CE -Transition to a Circular Economy 45% 36% 43% 16% 44% 24% PPC -Pollution Prevention and Control —% —% —% —% —% —% BIO - Protection and Restoration of Biodiversity and Ecosystems —% —% —% —% —% —% 9 Abbreviations used: Y: Yes, N: No, EL: Taxonomy eligible, N/EL: Not taxonomy eligible, CCM: Climate Change Mitigation, CCA: Climate Change Adaptation, CE: Circular Economy About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 78 EU Taxonomy SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA ('DOES NOT SIGNIFICANTLY HARM') Economic Activities (1) 9 Code (2) Absolute turnover (3) Proportion of Turnover (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular Economy (9) Biodiversity and ecosystems (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular Economy (15) Biodiversity (16) Minimum Safeguards (17) Proportion of Taxonomy-aligned (A.1.) or - eligible (A.2.) turnover, year N-1 (18) Category (enabling activity) (19) Category (transitional activity)(20) A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of plastic packaging goods CE 1.1 81,046,903 45% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y Y 42% Material recovery from non-hazardous waste CCM 5.9, CCA 5.9 13,438,046 7% Y Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 6% Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1) 94,484,949 52% 7% 0% 0% 0% 45% 0% Y Y Y Y Y Y Y 48% Of which enabling 0% 0% Of which transitional 0% 0% A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Manufacture of plastic packaging goods CE 1.1 65,007,536 36% N/EL N/EL N/EL N/EL EL N/EL 36% Material recovery from non-hazardous waste CCM 5.9, CCA 5.9 0 0% EL EL N/EL N/EL N/EL N/EL —% Turnover of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 65,007,536 36% 0% 0% 0% 0% 36% 0% 36% Total (A.1+A.2) 159,492,485 88% 84% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES Turnover of Taxonomy-non-eligible activities 22,375,608 12% Total (A+B) 181,868,093 100% 10 Abbreviations used: Y: Yes, N: No, EL: Taxonomy eligible, N/EL: Not taxonomy eligible, CCM: Climate Change Mitigation, CCA: Climate Change Adaptation, CE: Circular Economy About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 79 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA ('DOES NOT SIGNIFICANTLY HARM') Economic Activities (1) 10 Code (2) Absolute CapEx (3) Proportion of CapEx (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular Economy (9) Biodiversity and ecosystems (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular Economy (15) Biodiversity (16) Minimum Safeguards (17) Proportion of Taxonomy-aligned (A.1.) or eligible (A.2.) CapEx, year N-1 (18) Category (enabling activity) (20) Category (transitional activity) (21) A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of plastic packaging goods CE 1.1 8,190,669 43% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y Y 53% Material recovery from non-hazardous waste CCM 5.9, CCA 5.9 1,229,187 6% Y Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 9% CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 9,419,856 50% 6% 0% 0% 0% 43% 0% Y Y Y Y Y Y Y 62% Of which enabling 0% 0% Of which transitional 0% 0% A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Manufacture of plastic packaging goods CE 1.1 2,979,057 16% N/EL N/EL N/EL N/EL EL N/EL 27% Material recovery from non-hazardous waste CCM 5.9, CCA 5.9 0 0% EL EL N/EL N/EL N/EL N/EL —% CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 2,979,057 16% 3% 0% 0% 0% 16% 0% 27% Total (A.1+A.2) 12,398,913 65% 89% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES CapEx of Taxonomy-non-eligible activities 6,572,743 35% Total (A+B) 18,971,656 100% 11 Abbreviations used: Y: Yes, N: No, EL: Taxonomy eligible, N/EL: Not taxonomy eligible, CCM: Climate Change Mitigation, CCA: Climate Change Adaptation, CE: Circular Economy About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 80 SUBSTANTIAL CONTRIBUTION CRITERIA DNSH CRITERIA ('DOES NOT SIGNIFICANTLY HARM') Economic Activities (1) 11 Code (2) Absolute OpEx (3) Proportion of OpEx (4) Climate Change Mitigation (5) Climate Change Adaptation (6) Water (7) Pollution (8) Circular Economy (9) Biodiversity and ecosystems (10) Climate Change Mitigation (11) Climate Change Adaptation (12) Water (13) Pollution (14) Circular Economy (15) Biodiversity (16) Minimum Safeguards (17) Proportion of Taxonomy-aligned (A.1.) or - eligible (A.2.) OpEx, year N-1 (18) Category (enabling activity) (20) Category (transitional activity)(21) A. TAXONOMY-ELIGIBLE ACTIVITIES A.1. Environmentally sustainable activities (Taxonomy-aligned) Manufacture of plastic packaging goods CE 1.1 7,268,239 44% N/EL N/EL N/EL N/EL Y N/EL Y Y Y Y Y Y Y 44% Material recovery from non-hazardous waste CCM 5.9, CCA 5.9 2,667,371 16% Y Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 16% OpEx of environmentally sustainable activities (Taxonomy-aligned) (A.1) 9,935,609 61% 16% 0% 0% 0% 44% 0% Y Y Y Y Y Y Y 60% Of which enabling 0% 0% Of which transitional 0% 0% A.2 Taxonomy-Eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) Manufacture of plastic packaging goods CE 1.1 3,996,173 24% N/EL N/EL N/EL N/EL EL N/EL 30% Material recovery from non-hazardous waste CCM 5.9, CCA 5.9 0 0% EL EL N/EL N/EL N/EL N/EL —% OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities) (A.2) 3,996,173 24% 0% 0% 0% 0% 24% 0% 30% Total (A.1+A.2) 13,931,782 85% 90% B. TAXONOMY-NON-ELIGIBLE ACTIVITIES OpEx of Taxonomy-non-eligible activities 2,428,619 15% Total (A+B) 16,360,401 100% About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 81 Working Towards a Positive Climate Impact Climate change affects all life on earth. As the impacts of climate change become increasingly apparent, taking action is becoming non-negotiable. To achieve the goal of the Paris Agreement of limiting global warming to 1.5°C, governments are changing regulations and industry sectors are transforming their processes. At Cabka, we have joined this transformation and are committed to continuously reducing our GHG emissions in line with the Paris Agreement. “As a leader in circular production, we are also committed to climate change action” Climate-Related Impacts, Risks, and Opportunities The effects of climate change are already being felt all over the world today. Therefore. it is crucial to prepare our business for the future, which will include a changing climate and more extreme weather events. From the 2024 double materiality assessment, two issues emerged as material for Cabka and our stakeholders: the climate-related transition risk of increasing volatility of energy prices due to the growing use of renewable energy sources, and the negative impact that Cabka’s operations have on the environment and people, primarily due to the greenhouse gas (GHG) emissions from our business activities. The assessment of climate-related Impacts, Risks and Opportunities (IRO) was supported by a climate scenario analysis conducted in early 2024. This analysis aimed to evaluate the potential impact of physical climate risks on, and the resilience of, Cabka’s business activities in Weira, Germany, Ieper and Herstal, Belgium, Hazelwood, USA, and the Innovation Center in Valencia, Spain, as well as our upstream value chain. A meteorology company identified climate hazards under the IPCC climate scenarios RCP2.6, RCP4.5, RCP6.0, and RCP8.5 for both the present (2006-2035) and future (2031-2060) at Cabka’s manufacturing locations. Their approach involved considering the values of variables describing the climate dimensions listed in the Climate Delegated Act of the EU Taxonomy Regulation, Annex I, Appendix A, in the current climate and their future evolution due to climate change. The values of the climate variables at each location were determined by combining IPCC global climate model data with the ERA5 reanalysis, resulting in statistically down scaled, more localized data. The future climate-related risk estimation was based on the probability, defined as the relative number of years in the data set, that values in the future climate will exceed the mean value of the current climate at the specified location. Since the geographies and climates of the locations of our sites differ greatly, the portfolio of physical climate risks is diverse. Subsequently, a quantitative vulnerability and resilience analysis was conducted for the business operations at each of Cabka’s manufacturing locations and our Innovation Center. This analysis identified the gross climate-risks that Cabka currently faces and might potentially face in the future. The resilience analysis was informed by engaging various departments and positions at each site, conducting interviews with key suppliers and business partners, and consulting with the representative of the local community at our largest production site in Weira, Germany. Where applicable, costs of past incidents that might be worsened by climate change in the future were referenced to calculate the potential financial effect. The results of the resilience analysis demonstrated that, based on current knowledge, Cabka’s business activities at all of our manufacturing sites have limited vulnerability to climate change and are therefore not at material financial risk, even under the worst-case scenario of global warming. Our Policies and Action Plan for Reducing Emissions As a leader in circular production, Cabka is committed to taking action against climate change and has set ambitious goals to reduce the carbon footprint of its operations. To manifest this ambition, we address both the material climate-related risk and the negative impacts caused by our activities in our company-wide policies. Our Environmental Policy outlines Cabka’s climate-related commitments to improving energy efficiency, minimizing energy consumption and GHG emissions, and favoring and initiating the use of energy from renewable sources. The policy establishes Cabka’s climate ambition to support the Paris Agreement by setting a near-term Science-Based Target (SBT) and moving towards net-zero for the entire value chain by 2050. Furthermore, our internal Energy Hedging Policy includes Cabka’s strategy for cost-effective and secure electricity purchasing. The Environmental Policy is communicated via Cabka’s intranet and is available on our website, with its enforcement being the responsibility of Cabka’s Management Board and monitored by our Sustainability Department and Chief Operations Officer. The Energy Hedging Policy is an internal document, shared only with responsible managers due to its confidential strategy descriptions. We have developed a detailed climate action plan to address and manage the identified material IRO. These actions include the deployment of renewable energy at every Cabka location, replacing combustion engine vehicles, exchanging energy-intensive processes with more energy-efficient ones, and supporting local projects for green electricity. As a manufacturing company operating in several countries, About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 82 our planned actions to reduce GHG emissions are diverse and spread over the short, medium, and long term. While this action plan is in place at Cabka, it is not considered a climate transition plan since it is not externally validated based on current climate science. Therefore, Cabka is committed to having its climate targets validated by the Science- Based Target initiative and to transforming its action plan into a science- based climate transition plan within the next two years. To further advance our understanding of Cabka’s climate governance and impact, we participated in the Carbon Disclosure Project’s (CDP) climate assessment for the second time in 2024. Cabka’s recurring assessment result of a B score highlights our already advanced progress towards our climate change commitments. Our action plan to reduce GHG emissions in our own operations outlines a step-by-step roadmap for each of our production sites to allow for balanced allocation of financial resources, which are currently in the process of being determined. The most pressing and decisive project for every site is to transition to green electricity supply through onsite electricity production and the provision of green energy from electricity providers. Depending on the location of our operational sites, this project can be more or less challenging. For instance, at our site in Ieper, Belgium, a photovoltaic system was installed on the roofs of the production and warehouse halls in 2023 to provide sustainable electricity to our local facilities. More projects to produce our own sustainable electricity are planned for the coming years. In addition to electricity, company vehicles such as cars, forklifts, and cranes are another source of GHG emissions. For this reason, we started replacing vehicles running on fossil fuels with battery-powered alternatives. This exchange will continue over the short- to medium- term until all our vehicles operate on electricity. Furthermore, as the Manufacturing Execution System (MES) at our main manufacturing sites further progresses, we are obtaining additional insights into the material and energy efficiency of our production processes. This supports our local Energy Management Systems and identifies further improvement areas. All key actions implemented in 2024 and planned for the future are listed in the table on the right. The identified actions are not based on a transitional climate scenario analysis. All of the actions implemented in 2024 and planned for the future were chosen for their effectiveness in reducing Scope 1 and Scope 2 GHG emissions. These efforts contribute to Cabka’s targets of achieving a 50% share of renewable energy in our total energy consumption by 2025 and becoming fully climate neutral in own operations by 2030. The actions are also in line with Cabka’s climate and energy efficiency objectives as outlined in our Environmental Policy. Beyond our own operations, we have also identified the most significant sources of GHG emissions within our value chain after analyzing our Scope 3 emissions in more detail. The largest impact comes from materials entering our organization, making it crucial to collaborate with suppliers to minimize upstream GHG emissions. The high usage of recycled material already contributes to reducing carbon emissions. Additionally, collaborating with our customers on solutions with higher circularity scores – such as increasing the lifetime, reuse, and recycling of transport packaging - adds another level of carbon avoidance. Scope 3 emissions are the most challenging to gather data for and calculate. As all industries face this challenge, we see increased collaboration in our value chain to improve data quality and the meaningfulness of these metrics. Our work with the Ecochain platform to enhance our cradle-to- gate life cycle analysis, cooperation with suppliers and customers, and participation in industry initiatives help to continue to build our knowledge and with it our capability to develop an efficient reduction strategy. DECARBONIZATION LEVER ACTION TIME HORIZON EXPECTED OUTCOME Energy efficiency increase Implement more granular energy consumption measurement system Short-term Reduction of energy consumption GHG emission reduction Exchange fossil fuel-based electricity supply with renewable sources Short-term to medium- term Expected GHG emission savings: 45,036 t CO2e GHG emission reduction Change all Cabka company cars from combustion engine ones to electric vehicles Short-term to long-term Expected GHG emissions savings: 281 t CO2e GHG emission reduction Exchange on-site combustion engine vehicles of logistic department with electric ones in Weira 2025 Expected GHG emissions savings: 271 t CO2e GHG emission reduction Change from gas for heating and manufacturing processes to electricity from renewable sources Long-term Expected GHG emissions savings: 35 t CO2e GHG emission reduction Exchange all combustion engine on-site vehicles with electric ones Long-term Expected GHG emissions savings: 504 t CO2e 12 The net revenue figure used in the calculation of emissions intensity can be found in the first line item in the consolidated financial statement table on page 102. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 83 Our Climate & Energy Targets Cabka aims to: • Increase the share of renewable energy in the total annual energy intake of Cabka and its subsidiaries to 50% by 2025 • 100% renewable energy and carbon-neutral operations in 2030 These targets for absolute climate neutrality and interim renewable energy were both set to fulfil the climate objectives and commitments outlined in our Environmental Policy. They cover total Scope 1 and Scope 2 emissions from Cabka’s operations, with all relevant GHG emissions calculated and reported as CO2 equivalents (CO2e). During the target- setting process, relevant stakeholders were involved to inform the process. This includes national and international legislation, industry peers, customers, financial institutions and investors. Although no direct engagement took place with these stakeholder groups, they were involved through research, reports, and best-practice examples. Cabka followed the emissions calculation methodology of The Greenhouse Gas Protocol corporate accounting and reporting standard to calculate base year emissions for the setting of our targets. After the end of FY 2024, it was decided to change our previous target base year from 2022 to 2024, as we adapted our reporting according to the ESRS for the first time in 2024 and want to ensure that the reporting standard for our base year is on the same level as all future reporting. Since our 2030 climate target is relative, the adjusted base year does not affect the target. While our climate targets were set to be aligned with the Paris Agreement, they are to date not verified as being based on conclusive scientific evidence. Therefore, Cabka has committed to setting a company-wide, near-term emissions-reduction target in line with the Science-Based Target initiative (SBTi) in 2024. This target is expected to be submitted and subsequently approved by the SBTi by 2026. We assess our performance towards achieving our targets and the effectiveness of our Environmental Policy annually by measuring our organization-wide energy consumption, share of renewable energy, and emissions caused by Cabka following the consolidation approach of operational control to define our organizational boundary. The relevance of our targets is evaluated annually, incorporating new external developments such as geopolitical tensions and shifts in the political climate. These factors can significantly impact the availability and cost of green energy, as well as the pace of the transition toward a climate- neutral future. The successful implementation of planned actions to reduce emissions in our operations are continuously monitored and reviewed. The expected emissions savings from specific actions planned are always calculated and those with the most significant impact on Cabka’s climate performance are prioritized for implementation. For 2024, Cabka’s progress towards our targets is fully in line with our current action plan for achieving our climate ambitions. Our 2024 Climate Performance RETROSPECTIVE MILESTONES AND TARGET YEARS BASE YEAR 2024 2023 % 2024/ 2.023 2025 2030 ANNUAL % TARGET/ BASE YEAR Scope 1 GHG emissions (t CO2e) Gross emissions 2024 3,914 3,235 21% - 0 - • Stationary combustion 2024 2,426 - - - - - • Mobile combustion 2024 1,136 - - - - - • Fugitive emissions 2024 352 - - - - - Scope 2 GHG emissions (t CO2e) Gross location- based emissions 2024 27,181 27,120 0% - - - Gross market- based emissions 2024 41,107 43,650 -6% - 0 - Significant scope 3 GHG emissions (t CO2e) Gross emissions 2024 163,234 179,366 -9% - - - Total GHG emissions (t CO2e) Total emissions (location-based) 2024 194,329 209,721 -7% - - - Total emissions (market-based) 2024 208,255 226,251 -8% - - - GHG INTENSITY PER NET REVENUE (T CO2E/€) 12 2024 Location-based 0.00107 Market-based 0,00115 13 All of Cabka’s economic activities (manufacture of plastics in primary form, manufacture of plastic packaging goods, and recovery of sorted materials) are classified to be in high climate impact sectors. Therefore, the total energy consumption of 2024 and the total revenue of Cabka in 2024 are used to calculate the energy intensity figure. The net revenue figure used in the calculation of energy intensity can be found in the first line item in the consolidated financial statement table on page 102. 14 Based on a calculation by Partners for Innovation, an external firm that developed Cabka’s custom lifecycle analysis tool. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 84 In 2024, we achieved an 8% reduction on total market-based GHG emissions compared to 2023. This is mainly to be attributed to a reduction in both upstream and downstream activities due to the challenging economic markets. Despite the slight increase in scope 1 emissions, we were able to further reduce our scope 2 emissions and are well on track to reach our intermediary 2025 as well as our 2030 climate target. IN MWH 2024 2023 Total energy consumption 13 109,849 101,126 From fossil sources 70,437 (64 %) - • Coal and coal products 0 - • Crude oil & petrol products 12,787 - • Natural gas 3,859 - • Other fossil sources 0 - • Purchased electricity 53,791 - From nuclear sources 26,294 (24 %) - From renewable sources 13,117 - • Biofuels 0 - • Purchased electricity 13,117 - • Self-generated non-fuel RE 0 - Total share of RE 11.9% 5.2% ENERGY INTENSITY PER NET REVENUE (KWH/€)12 2024 Total energy consumption from Cabka’s economic activities per net revenue 0.604 Our annual performance measurement is based on Cabka entity specific primary data for energy and secondary data for scope 1, 2, and 3. Data related to all energy consumed and fugitive emissions caused is reported annually from all Cabka entities, with a breakdown into stationary and mobile combustion, and purchased electricity. In 2024, all Cabka entities purchased all electricity consumed from third-party generators through contractual agreements without bundled instruments. The fuel combustion data is subsequently multiplied with latest emission factors provided by the US Government’s Environmental Protection Agency (EPA) in case of our North American operations, and the UK Government’s Department for Environment, Food and Rural Affairs (DEFRA) for all Cabka locations in Europe to obtain Scope 1 emissions. The source data for scope 3 emissions is mainly provided through our ERP system as well as manual data reports for information not available through the ERP system. The emission categories of scope 3.8, 3.10, 3.11, and 3.13-3.15 were excluded from the scope 3 emissions calculation because none of them were applicable to Cabka in 2024, hence no emissions were caused within these categories. For the calculation of location-based scope 2 emissions, the latest country-based emission factors provided by the European Environment Agency are utilized for our European locations and the applicable EPA emission factor for our plant in St. Louis, Missouri. For market-based Scope 2 emissions, emission factors specific to the individual electricity mix purchased by our locations are provided by the respective electricity companies. Lastly, the calculation of the different Scope 3 categories are based on emission factors from various sources, including DEFRA, the EPA, EcoInvent 3.8 and 3.9.1, the European statistics database Eurostat, and the German Federal Environment Agency’s database for process-oriented basic data for environmental management systems (ProBas). All energy and emissions related calculations are carried out manually in Cabka’s in-house emissions calculation templates. In the reported energy consumption, small inaccuracies can occur based on energy billing periods for our administrative locations differing from Cabka’s reporting period and the unavailability of real life data, necessitating the use of approximations. Since the energy consumption of these locations is minimal compared to Cabka’s manufacturing sites, the accuracy of the results is not significantly affected. Furthermore, the consumption of combusted fuels is not always available in kWh, therefore requiring a conversion. Realistic conversion factors for individual fuel types can be difficult to obtain, in which case approximate factors must be used. This only affects small share of the total energy consumption, therefore the level of inaccuracy is low. Cabka’s local providers of purchased electricity have only reported the emission factors associated with their electricity production in CO2 instead of CO2-equivalents, thereby leaving out other important greenhouse gases with global warming potential, which in turn also cannot be included in Cabka’s emissions calculation. Overall, Cabka is still dependent on global, country, and sector averages when it comes to applying associated emissions to specific activities. This means that none (0%) of the reported Scope 3 emissions of 2024 were calculated using primary data. Over time, we expect more granular emission factor data will become available through supply chain partners to improve data accuracy. The current level of data accuracy of reported Scope 3 emissions is assessed as low, meaning there is a high level of measurement uncertainty. For transport related Scope 3 emissions, assumptions had to be made regarding the average travel distances, modes of transport, and number of trips made in 2024. Furthermore, for upstream transport, only the emissions of purchased raw material were assessed. Carbon Avoidance from Working with Recyclates In 2024, Cabka took in 127 kt of plastic waste. According to emission data by our software partner Ecochain, based on EcoInvent 3.9.1 emissions data on plastics and modelling of Cabka’s processes, each Kg of recycled polyethylene or polypropylene plastics recycled and used by Cabka instead of primary plastics saves approximately 1.58 Kg of CO2 when comparing it to the emissions associated with in-house recycled processes at Cabka 14. Furthermore, each Kg of plastic waste diverted from incineration saves approximately 2.99 Kg of CO2. In 2024, our in- house waste processing and the use of predominantly recycled material input led to the avoidance of 262,363 t CO2. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 85 Working Towards a Circular Economy In a perfectly circular economy, waste does not exist. The core principle is simple but transformative: raw materials and products are designed to be used again and again and when they cannot be used anymore, the resulting waste becomes the new raw material. The concept of a waste hierarchy guides the shift to such a circular economy. By favoring the reduction of waste overall, followed by reuse, and then recycling, we can pave the way for a sustainable future. The increasing awareness of sustainability around the globe is driving the demand for sustainable products and regulations to raise environmental standards. A more circular economy also promotes conservation of energy and scarce natural resources and natural materials. It contributes to lower greenhouse gas emissions and, in the long term, helps to boost economies. Keeping plastics in the loop and minimizing the use of virgin plastics plays an essential role in realizing these benefits and reaching circularity targets. Cabka uses a unique business model that integrates the entire process from waste to product, leveraging our in-house material and product engineering expertise with our own recycling and production facilities. In 2024, Cabka processed 127 kilotons of waste and recycled plastic to create new products. Throughout the year, our focus has been on fortifying this strong positioning and developing an action plan to further enhance Cabka's circular economy performance in alignment with the European Union's objective of transitioning to a fully circular economy by 2050. The circular economy is central to Cabka’s operations, driving our mission to transform plastic waste into reusable transport packaging (RTP). By integrating unique material processing, innovative product design, and advanced process technology, including waste sorting and recycling, we facilitate the shift towards a more sustainable, circular logistics system. This approach reflects our belief that while resources are limited, possibilities are endless. Cabka aims to not only reduce environmental impacts but to also create a positive change within global supply chains. Our products, such as pallets and large containers, are made from recycled plastic, are designed for durability and extended lifecycles, ensuring they can be returned, recycled, and used again in new products. Circular Economy Related Impacts, Risks, and Opportunities Because circularity lies at the heart of Cabka’s business activities, most of our material ESG-related IRO are connected to the topic of circular economy. Since our products are primarily made from recycled materials, the availability of sufficient amounts of recycled plastic materials and plastic waste at a reasonable price is a constant concern in our day-to-day business. Material shortages might be caused by increasing demand, rising costs, or shortages in virgin material supply, which could be exacerbated in the future through regulatory changes aimed at reducing plastics production. Besides these risks, we have identified both positive and negative actual impacts that Cabka has on the circular economy. Because we already mostly use recycled materials in the manufacturing of our products (88% in 2024), we are far above the European standard and are therefore leading the market in circular transport packaging. On the other hand, we acknowledge that there are still areas where we have a significant negative environmental impact, necessitating improvements in our circularity performance. One of such impacts is on the resource inflow side, where Cabka still uses some virgin plastics in the production of its products, mainly in transport packaging for the food and pharma industry, and some fossil fuels currently still required for our operations. The second negative impact occurs on the resource outflow side, concerning the waste from Cabka’s in-house recycling processes that cannot be recycled any further and is instead used as fuel for energy generation. Cabka processes hard-to-recycle plastic waste that remains after all high-quality plastics have already been sorted out. This waste usually contains various contaminants, including other material types and contaminated plastics that cannot be further recycled. All materials that can be used in Cabka’s production after our recycling processes are prevented from being incinerated for energy generation. However, due to the contaminants in the waste, there always remains a portion of waste after the recycling process that cannot be processed further by Cabka. Since Cabka already takes in the contaminated plastic waste that cannot be recycled by the majority of recycling facilities, we are the last station where something new can be made out of such waste material. Due to the large amount of plastic waste that Cabka processes, the remaining waste volumes after recycling are significant, making this a material negative impact on the circular economy. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 86 Policies Related to Resource Use and Circular Economy To effectively manage material environmental impacts, risks, and opportunities in our own operations as well as in our supply chain, we have established and regularly revise our Environmental Policy and Sustainable Procurement Policy. These policies set the environmental standards that form the basis of our daily business at Cabka and the expectations we have regarding our suppliers. Our Sustainable Procurement Policy has been established to ensure that our suppliers align with our sustainability standards and values while remaining compliant with emerging circularity and plastics regulations, to foster long-term, strategic partnerships with suppliers who are committed to sustainability and prepared for the evolving regulatory landscape. The Environmental Policy, in particular, outlines how Cabka governs environmental protection within the organization and our commitments related to the circular economy. This includes using resources efficiently and minimizing waste generation through the waste management hierarchy, optimizing water use, and supporting the use of sustainable, renewable natural resources. By adopting a circular lifecycle approach, we aim to mitigate environmental risks and seize opportunities offered by a circular economy. Cabka’s CEO and CFO are ultimately accountable for implementing both policies. While the Environmental Policy applies to Cabka’s whole organization, including its divisions, subsidiaries, and greater than 50% owned joint ventures, our Sustainable Procurement Policy only applies to all people within the organization that are connected to or responsible for procurement of any kind. Actions and Resources Related to Resource Use and Circular Economy As part of our continuous improvement efforts to adhere to the commitments set in our policies and to reduce the vulnerability to circular economy-related risks, we implemented various actions of our long-term action plan in 2024. This includes further developing new post-consumer material streams. Leveraging our in-house expertise in recycling technologies and material uses, we are actively seeking new sources of recycled materials for our manufacturing process. In connection with this, we expanded our processing capacities at one of our manufacturing sites in 2024. Throughout 2024, Cabka continued working with customers to close the loop. Our buyback program, which can be integrated into supply contracts, allows us to bring back our products at the end of their life. This enables us to recycle old products and immediately reuse these materials in the production of new products. In addition, we collaborate with external recyclers and customers to integrate other plastic waste streams into our manufacturing processes, giving us access to higher- quality waste materials and further supporting our recycling efforts. To further reduce Cabka’s vulnerability to market changes in the plastic production and recycling industry, we plan to extend our lab capabilities and material processing capabilities. This will enable us to test material properties faster, allowing for quick utilization or rejection of delivered materials and creating a smoother resource inflow chain. In 2024, we also began rolling out a comprehensive energy measurement system to track consumption on individual production lines and machines. This aims to boost energy efficiency and reduce overall resource consumption. Other measures to reduce the consumption of non-renewable resources are described in further detail in the Sustainability Statement on ESRS E1 (p. 81-82). To minimize Cabka’s negative impact on the circular economy, we have been conducting regular employee training sessions on correct waste handling, sorting and disposal at our manufacturing sites. These training sessions will continue in the future and will be adapted to reflect current training needs regarding waste. At Cabka’s largest production site in Weira, Germany, we increased the number and variety of bins in the different production areas in 2024 to improve waste sorting and ultimately recycling of waste that occurs during manufacturing processes. The site is ISO 14001 certified and continually strives to improve its waste management system and divert as much waste as possible from disposal. A planned measure for 2025 is to increase our shredder capacity to process old wood pallets received from suppliers, which can then be used as mulch, preventing these pallets from being incinerated. Moreover, we have a dedicated concept for working with, and handling of hazardous waste, such as hydraulic oils, coloring agents, or cleaning detergents. Waste outputs at all Cabka production sites are internally reported and analyzed. This helps us track reductions or increases in certain waste types in the short to mid term and evaluate the share of waste going into recycling, energy recovery, and landfill. To improve the sustainable sourcing of our resources, Cabka conducts sustainability assessments of our continuous resin suppliers. By requesting information on their sustainability certifications, policies, past ESG issues, and their commitment to support Cabka’s Supplier Code of Conduct, we can evaluate the supplier’s alignment with our own sustainability principles. This then influences our relationship with and future purchasing decisions from these suppliers. In 2025, we plan to further extend our supplier evaluation efforts to include suppliers of other products besides raw materials. We will also develop clear guidelines on how to proceed with suppliers that currently do not meet Cabka’s sustainability principles for suppliers. While raw material makes up the largest part of the resource inflow at Cabka, this broader evaluation initiative is crucial for assessing sustainability throughout our entire supply chain to ensure sustainable sourcing of resources. The new EU Packaging and Packaging Waste Regulation (PPWR), which applies from mid 2026 will play a crucial role in shaping the future of the packaging industry. This regulation mandates the reduction of waste from packaging and emphasizes a circular approach, ensuring materials are either recycled or reused. According to the regulatory text, the minimum recycled content for pallets is 35%. Cabka already exceeds this expectation in most applications. We followed the regulatory process and will proactively handle the secondary legislation framework upon its establishment in the coming months and years to further inform our strategies. Our commitment to circularity is also reflected in our EU Taxonomy disclosure on the environmental objective of transition to the circular economy. Cabka already reports 43% of its CapEx and 44% of OpEx as About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 87 aligned with this objective. This proves that the majority of our business activities are focused on increasing circularity. Targets Related to Resource Use & Circular Economy Our key target for circularity is to remain a leader in the transition to a circular economy by continuously raising the bar on material use and manufacturing practices, surpassing any mandatory circularity requirements. We aim to maintain a recycled content share in our annual raw material inflow of at least 80%, thereby consistently avoiding new primary resources entering the market. This target is based on the methodology applied to the calculation of annual material inflow. We also take responsibility for our environmental impacts on resource consumption beyond our direct operations by engaging with our suppliers to improve their environmental performance. Therefore, we have set the additional target: assessing 100% of our continuous resin suppliers on ESG criteria by 2024. In the past two reporting years, we have reported towards an additional target to align our continuous resin suppliers with Cabka’s Supplier Code of Conduct. However, we made the decision in 2024 to work towards integrating the Code of Conduct into our supplier Terms and Conditions to reinforce the importance of our supply chain principles in our purchasing decisions. During the target setting process of both circular economy related targets, relevant stakeholders were involved to inform the process. Cabka currently has no targets set on waste to further confirm commitment to our ambitions set in our Environmental Policy. Our 2024 Circular Economy Performance In line with our material IRO related to the circular economy, our material resource inflows include both recycled and virgin plastic materials necessary for the manufacturing of Cabka’s products. Despite water resources not being a material issue for Cabka,we also report annual water withdrawal volumes. Low amounts of water are used in our operations since we process waste through dry recycling and use closed circuit water systems where technically feasible. Hence, water usage in production is minimal, primarily for cooling machinery in a closed-circuit system, and none of Cabka’s sites are currently located in high water risk areas. Furthermore, by reporting annual waste data, we can measure our performance towards the effectiveness of our Environmental Policy commitment to minimize waste in our operations. By calculating and analyzing this data, we can identify areas of improvement and implement targeted strategies, bringing us closer to our circularity goals. Resource Inflow: Products and Materials Cabka’s overall resource inflow was 22kt lower in 2024 than in 2023. Due to the challenging economic landscape in 2024, Cabka changed its manufacturing approach to increase in-house production capacities instead of utilizing external contract manufacturing and also decreased the procurement of components and packaging to reduce stock. At the same time, we were able to remain above our target level of 80% recycled content share in our annual raw material inflow, even increasing our overall share of recycled content for the total resource inflow, including products and packaging. With our recycled share of raw material inflow at 88% in 2024, it has remained at a stable level despite changes in overall resource inflow volumes, demonstrating Cabka’s commitment to circularity. Our resource inflow metrics are calculated with the real-life material OUR CIRCULARITY PERFORMANCE 2024 2023 TOTAL WEIGHT (T) RECYCLED SHARE (T) RECYCLED SHARE (%) TOTAL WEIGHT (T) RECYCLED SHARE (T) RECYCLED SHARE (%) Products & materials inflow 152,983 131,184 86% 174,859 148,315 85% Raw materials 145,028 127,047 88% 156,971 139,934 89% Products & packaging 7,955 4,136 52% 17,661 8,381 47% Water consumption 11,222 m3 10,772 m3 flow data collected in Cabka’s group-wide ERP system. Not all products and packaging purchased by our entities for the manufacturing of our products include information on the share of recycled content in the product material composition. Therefore, any products and packaging materials without clear information are assumed to consist of primary material. As the share of products and packaging in the overall resource inflow only made up 5% in 2024, the accuracy level of the results are assessed to not be significantly impaired by this potential data inaccuracy. Cabka focuses on the top three levels of the waste hierarchy for its products: • Reduce: By investing in innovative activities and a diverse product portfolio, Cabka customizes solutions for various applications, which helps to reduce material usage. • Reuse: Cabka's products are designed for reusability, and we support customers in maximizing reuse through tracking, tracing, and providing insights into the environmental and economic impacts. • Recycle: Cabka offers a fully circular solution through its buyback program, facilitating product recycling. 15 Exchange of waste for submission to one of the possible recovery operations 16 Treatment which results in final compounds that are discarded through one of the possible disposal operations About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 88 In terms of longevity, our transport packaging can be used for up to 200 cycles, though their lifespan may vary based on the conditions in which they are used and how carefully they are handled. Our products are designed for durability, enabling them to withstand repeated use in demanding environments without compromising performance. The majority of our products are made from 100% recycled plastic materials. At the end of their lifecycle, all of our products are fully recyclable and can be repurposed into new products, closing the material loop. Sustainable Procurement 2024 2023 Purchased resin volume coming from continuous suppliers assessed on ESG criteria 83% 54% Share of continuous resin suppliers assessed on ESG criteria 92% —% To be classified as a continuous supplier, Cabka must have purchased from this supplier in at least two out of the last three years. This is assessed and updated on a quarterly basis and subsequently, ESG self- assessment questionnaires are sent out to the suppliers. Once a reply with the filled out questionnaire is received back, that supplier is considered as assessed. Once the financial year is over, the numbers of total and assessed continuous resin suppliers are compared to obtain the share of suppliers assessed on ESG criteria. Purchased resin refers to all raw material that does not require further in-house recycling by Cabka before it can be used for the manufacturing of our products. While our target for 2024 was to achieve a 100% rate of assessed suppliers, we were only able to achieve a 92% assessment rate. We are proud of the efforts made to reach the target and consider the result successful. In Europe, where the demand for integration of sustainability aspects into procurement are considered to be more advanced, we were able to achieve a 100% assessment rate. Resource Outflow: Waste Cabka handles contaminated plastic waste that most recycling facilities cannot process, serving as the final stage where such waste can still be transformed into something new. Any remaining waste that cannot be processed in our production is destined for energy recovery, explaining the overall high value of waste generated and the high percentage of waste going to energy recovery in our reported waste data. At Cabka, we prioritize recycling and, where recycling is not possible, energy recovery to maximize resource efficiency and minimize environmental impact. By focusing on recycling first, we ensure that materials are reused to their fullest potential before considering other waste management options. The main types of waste that occur are production scrap and residual materials from our in-house recycling processes. • Scrap from production is re-routed back into production through our in-house recycling facility, hence no material waste results from our manufacturing process. The introduction of our Manufacturing Execution System (MES) furthermore contributes to the reduction of production scrap. • Residual materials from Cabka’s recycling processes and other operational waste are transferred to dedicated waste management and recycling companies for either recycling or energy recovery. Our reported waste values come from data directly collected by all of Cabka’s manufacturing sites. Waste generated during the recycling of plastic waste and the manufacturing of our products is managed by local waste treatment companies, which delegate the waste to its designated recovery or disposal operation. The amounts, type, and treatment methods of waste are recorded and collected throughout the year by Cabka’s local waste managers, and the results are accumulated to create an overview for the full year. Waste generated at Cabka’s administrative locations is excluded from the reported waste amounts as its collection is handled through the respective municipality. Due to the amounts being minimal compared to our operational sites, pursuing the obtainment of information on the waste volumes is considered disproportionate to their impact on the overall result. 2024 NON-HAZARDOUS WASTE (t) HAZARDOUS WASTE (t) Total recycled & non-recycled 21,611 145 Waste diverted from disposal 20,108 33 • Preparation for reuse 9 0 • Recycling 1,370 12 • Waste to fuel 18,256 2 • Other 15 473 19 Waste directed to disposal 1,503 112 • Incineration 60 0 • Landfill 1,443 0 • Other 16 0 112 Total waste generated (t) 21,755 T % Total non-recycled waste 1,615 7% About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 89 Social Our People At Cabka, our colleagues are our greatest asset. The well-being of our people is directly linked to the long-term success of Cabka. That is why we are committed to providing a positive, safe, and healthy work environment to everyone. We actively embrace diversity by fostering a workforce that includes different genders, nationalities, cultures, social backgrounds, age, sexual orientations, as well as diverse physical and mental abilities. Our values ensure a respectful, transparent, and accountable workplace that upholds the highest ethical standards. Our double materiality assessment has highlighted several key areas where we can further strengthen our approach to enforcing Cabka’s values regarding the well-being of all of our employees. A strong commitment to sustainability and transparency helps us attract and retain top talent, ensuring continued operational excellence and progress towards our strategic objectives. The potential future inability to retain talent at Cabka could lead to unsuccessful management of operations and hinder the pursuit of our strategic objectives, posing a material risk to Cabka’s future success. Maintaining high standards in our people management and sustainability performance reflected in transparent reporting, enhances our attractiveness as an employer and positions Cabka as a preferred choice for individuals who value corporate responsibility and sustainable business practices. We also acknowledge the significance of workplace safety, particularly for those working in our production and recycling operations. Given the nature of their roles, these employees face a higher risk of occupational health and safety incidents due to their direct interaction with machinery and exposure to more complex operational environments. The results of the double materiality assessment (DMA) underscore the importance of our commitment to proactive risk mitigation and continuous improvement in safety measures, ensuring a secure and supportive workplace for all. By addressing these areas with a forward-thinking approach, we aim to strengthen our resilience as a company while fostering a workplace culture that prioritizes both employee well-being and business success. Policies Related to our Own Workforce Cabka has implemented several policies to ensure the well-being of our people, to prevent human rights violations, discrimination, and occupational health and safety incidents. Our ultimate goal is to create a work environment where everyone feels valued, supported, and understood. Our Code of Ethics outlines our core values, including respect of human rights according to international human rights law, exclusion of forced labor, child labor and human trafficking, and commitment to equal treatment. Additionally, our Human Rights and Working Conditions Policy further states our alignment with the UN Guiding Principles for Business and Human Rights and draw on the UN’s Declaration of Human Rights, the ILO’s Declaration on Fundamental Principles and Rights at Work, the OECD Guidelines for Multinational Enterprises as well as the UK’s Modern Slavery Act. These alignments are reflected in our internal procedures, such as: Inclusion of diversity aspects in Cabka’s incentive program, trainings and company communication (ILO, UNGPs). A grievance mechanism is accessible to all employees (UNGPs). Our Environmental Policy further supports our Human Rights and Working Conditions Policy commitments, focusing on continuous improvement through our Environmental Management System. This includes regular audits and training that reinforce our health and safety protocols. Environmental incidents can pose significant risks to the health and safety of our employees, and by maintaining strict environmental standards, we mitigate these risks and enhance workplace safety. In the Human Rights and Working Conditions Policy, we emphasize the importance of effective remedies wherever employees' rights have been negatively impacted. Remedial actions must be implemented in due time and can be tracked via Cabka’s whistleblowing tool. Any breach of human rights witnessed must be reported by our employees through the whistleblower procedure as outlined in our Whistleblowing Policy, which About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 90 is available on Cabka’s website. Our Code of Ethics and our Policy on Human Rights and Working Conditions commit us to promoting and respecting human rights, ensuring equal treatment, and rejecting any form of discrimination on the basis of race, gender, religion, worldview, disability, age, or sexual identity. As stated in policies, we guarantee that whistleblowers will be protected and Cabka prohibits retaliation. At Cabka, we cover 100% of our own employees with our Health and Safety Management System. This system is based on local legal requirements, the ISO 45001 standard, and the OECD Guidelines for Multinational Enterprises on Responsible Business Conduct. Our commitment to zero harm and zero accidents is a core objective of our Health and Safety Policy — an ambitious goal that we fully embrace. To support this, our policy mandates the provision of appropriate personal protective equipment (PPE), comprehensive training, and robust emergency procedures. Our Health and Safety Policy also extends to third parties, such as contractors, ensuring that everyone working within our facilities is protected and adheres to our safety standards. The measures and commitments stated in our policy aim to reduce the number of incidents, with a focus on continuous improvement. These policies apply to all Cabka employees and are ultimately enforced by Cabka’s Management Board. Our monitoring mechanisms to ensure compliance with these policies include regular audits and employee feedback sessions. We conduct comprehensive annual reviews of our policies to ensure continuous alignment with best practices. All our policies are part of the onboarding program and yearly instructions, are accessible via our intranet, and are revised annually. Processes for Engaging with our Employees The interests, knowledge, and expertise of our workforce are fundamental to Cabka’s success. To mitigate associated risks and capitalize on potential opportunities related to retaining employees and job mobility, we regularly engage with our employees through meetings, trainings, and surveys. These engagements help us gather valuable insights essential for understanding our employees’ needs and wishes for an optimal work environment and individual development at Cabka. To encourage a culture of openness and ensure adherence to national and international laws as well as international regulations, we updated our Whistleblowing Policy in 2024. A centralized Whistleblowing Tool has been implemented to allow employees and external parties to anonymously report any concern related to misconduct and violation of our policies. We launched communication initiatives throughout the organization to inform our employees about the process and their rights, and to increase awareness around the availability of Cabka’s Whistleblowing Channels. An Ethics Committee was established to oversee investigation procedures and decision-making processes. We conduct regular meetings with workers’ representatives at our Innovation Center in Valencia, Spain, and our production site in Ieper, Belgium, to foster mutual satisfaction and address any concerns our employees may have. At any of our locations, people can raise a concern anonymously through Cabka’s whistleblowing channel or through directly contacting their superior. As part of our continuous performance review process, all managers are asked to conduct annual employee interviews or performance dialogues with their team members. These dialogues provide an opportunity to review the past year’s performance, set new personal targets, gather feedback and discuss the well-being of the employee. All training sessions and meetings are documented and stored, allowing us to track our commitment to inclusivity and ensure that we effectively support all our employees. In 2024, Cabka implemented global monthly Internal Safety Audits to actively engage employees in hazard identification and corrective measures. These regular audits help us to identify potential risks that may negatively impact our own workforce at an early stage and allow us to take the necessary precautions. Each Cabka site’s management is responsible for such engagements and any actions following those at their location but are supported by the global health & safety project manager and supervised by the Chief Operations Officer. We also celebrated our first Global Health and Safety Day in September 2024. The collaboration between various departments and locations for this event has further increased the visibility of health and safety within our organization. We also had the opportunity to get first-hand feedback from our employees about health and safety in the workplace and on the way to work. Through personal interviews and an anonymous survey, we were able to gain valuable insights from their perspective. One key finding is that we should further raise awareness on accident rates and related targets. To support reducing health and safety incidents, we encourage our employees to share learnings and participate in trainings. HSE Managers form learning teams after safety incidents to analyze causes and define corrective measures. We also offer regular trainings for concerned employees on crucial topics like first aid, emergency evacuations, and on-site vehicle operation to strengthen our employee’s knowledge and skills. Moreover, we provide periodic training on our Code of Ethics and Human Rights and Working Conditions Policy to all employees. All new professional employees participate in a mandatory Code of Ethics and Whistleblowing Policy training as a part of their onboarding. Our salaried employees receive regular briefings as part of their Health & Safety trainings. Cabka’s values for a positive, equal, safe, and healthy work environment are reiterated during various trainings. Lastly, all our policies are easily accessible to all employees through our website as well as our intranet platform. Taking Action To attract talent through high-quality sustainability performance and reporting, and to minimize the risk of potentially losing key employees, we implemented several actions in 2024, with more planned for the short- to long-term future. Firstly, Cabka introduced new employee benefits, including company-leased bikes, employee vouchers, company cars, and a company pension plan. Additionally, we have further developed our annual pay and performance process to enable a systematic and fair evaluation of employee performance, allowing us to adjust compensation accordingly. This process fosters feedback, development, equality and motivation. To enhance the onboarding experience for new employees, we redesigned the process in 2024 to better integrate new hires into the company, ensuring that all entities follow a consistent global approach. In 2024, we conducted further training for our employees at all Cabka sites on our anti-corruption, bribery, gifts and benefits, as well as on About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 91 human rights, respect, and equal treatment to uphold our dedication to conducting business in accordance with our values and principles. These trainings reinforce our commitment to ethical business practices, ensure the fair and equal treatment of all employees, and increase their awareness on potential unjust behavior that might negatively impact the work environment. We also established a structured onboarding process for all new employees, integrating the acknowledgement and endorsement of Cabka’s Code of Ethics, highlighting the importance of ethical considerations and our corporate culture from the very beginning of an employee’s journey with us. An anonymous happiness survey was introduced in 2024, to allow all of our employees to indicate their overall level of well-being at Cabka and provide valuable feedback on areas of improvement to increase people’s job satisfaction. The results of this survey were translated into an action plan that will be implemented in the following years. The happiness survey will be conducted at regular intervals to allow for a continuous insight into our workforce’s well-being. To reduce health and safety incidents, we introduced a monthly Global Health and Safety Report in 2024. Cabka’s Health, Safety, and Environment (HSE) Project Manager compiles and analyzes the data provided by all site HSE Managers centrally, which is then displayed on a Global Incident Dashboard. This helps to identify trends, set targets, and benchmark our performance. Additionally, accident-free days are shown on screens at all Cabka sites to motivate our workforce and celebrate each day without incidents. We strive to ensure consistent quality, standards, and knowledge of health and safety at all sites. The measures implemented in 2024 are part of our ongoing, long-term efforts to continuously reduce the risk of health and safety incidents. At all Cabka operational sites, there are personnel dedicated to the management of health and safety topics. We have two full-time employees fully dedicated to health and safety at our largest production site in Weira, Germany. At Cabka’s other sites, Health, Safety, and Environment (HSE) project teams are supported by third- party experts to ensure sufficient time and knowledge for HSE management. Our action plan for 2025 includes introducing a new Human Resources IT landscape to facilitate, modernize, and standardize HR processes with employee and manager self-services. This is expected to positively reflect on Cabka’s image as a progressive employer for current and future employees. We also plan to further advance our organization- wide employee satisfaction survey to collect feedback from our people on various aspects of their workplace and their happiness at Cabka. This will help us identify areas of improvement, new engagement options on a more granular level, and foster open and honest communication. In the future, we plan to create internal talent pools to identify and retain employees with advancement potential, ensuring effective succession planning. We aim to start offering specific global talent programs in 2025 to maximize potential and maintain organizational continuity. We are generally planning to increase the amount of internal, cross-departmental trainings in 2025, which is measured in average number of training hours per employee. Additionally, we will work towards implementing a fair and standardized reward system, finalizing a gender-neutral job evaluation system, and introducing salary guidelines to promote fair compensation. We are also actively monitoring potential gender pay gaps to ensure equity among all employees. By recognizing the importance of a work environment where everyone feels valued, equal, and inspired, to remain an attractive employer, we acknowledge the challenges associated with its practical implementation across different countries. In line with our decentralized People Management approach, each of our entities takes a tailored approach within its specific cultural context to address diversity and implement Cabka’s core values. This enables them to tackle challenges and design programs that resonate with the unique characteristics of the countries or regions where our employees operate. The feedback gained in the implementation of this wide range of actions together with the KPIs we have introduced help us to evaluate the effectiveness of engagement with our employees. Targets Related to Managing Material IROs Diversity and inclusion are integral to creating an attractive workplace for both existing and potential future employees at Cabka. Differences in skills, experience, background, nationality, age, race, gender, sexual orientation, religious beliefs, physical ability, and other characteristics also enable us to look at issues and solve problems in different ways, respond differently to challenges and make more robust decisions. Cabka’s commitment is rooted in providing equal opportunities for all employees, leveraging their unique differences to the fullest. In the coming years, we will continue to work towards our objective of ensuring that at least one-third of the Executive Leadership Team and senior management positions will be held by women. In consultation with the teams responsible for managing our material IROs related to our own workforce, we have set two additional targets to measure our IRO management progress against. Our health & safety target is a step towards our policy objective of zero harm and zero accidents. • Ensure that at least one third of Managing Director and senior management positions are held by women in the long-term • Achieve a 100% employee signature rate of our Code of Ethics by 2024 relative to the employee head count number of that reporting year • Reduce the Lost Time Accident (LTA) rate by 10% in 2025 and 15% in 2026 in our own workforce compared to the 2024 baseline • Ensure that the turnover rate does not grow above 20% relative to the number of employees (head count) in the respective reporting year By building up the database on employee characteristics, diversity and equality metrics, health & safety performance, and career development in 2024, we are creating the foundation to measure our performance on the targets we have set to manage our material risk, negative impact, and realize the opportunities related to our own workforce in the coming years. The performance will be regularly communicated to our employees at the different Cabka sites to identify improvements and potential gaps that could have a negative effect. 17 See also the FTE-based employee reporting in the financial statement on page 120 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 92 Our Social Performance 2024 Characteristics of our People Cabka’s workforce includes our own employees as well as external hires. Cabka employees are hired directly by Cabka while external hires are individual contractors supplying labor to Cabka and people contracted by third-party agencies. The following performance disclosure is based on our own employees, excluding external hires. EMPLOYEES BY GENDER (HEAD COUNT) 2024 Male 581 Female 119 Other 0 Not reported 0 Total employees 17 700 EMPLOYEES BY COUNTRY (HEAD COUNT) 2024 Germany 364 Belgium 195 Netherlands 9 Spain 60 United States of America 72 EMPLOYEES BY EMPLOYMENT TYPES 2024 (HEAD COUNT) FEMALE MALE OTHER NOT DISCLOSED TOTAL Total number of employees 119 581 0 0 700 Permanent employees 70 301 0 0 371 Temporary employees 49 280 0 0 329 Non-guaranteed hours employees 3 52 0 0 55 Total number of employees who left Cabka in 2024: 157 Rate of employee turnover in 2024: 22% Within Cabka, we have established a standardized process for calculating key workforce metrics of every entity. These metrics include employee head count numbers categorized by gender, location, and contract type, as well as turnover rates. Uniform definitions and formulas are used across all sites and entities to ensure consistency. Dedicated contact persons at each Cabka entity are responsible for ensuring accuracy and effective communication throughout the process. Each site validates their data and reports monthly to the Cabka Group. For the employee characteristics metrics, the reported values in this statement are based on the status as of December 31st of that year. The turnover rate is an exception, which is based on the total average number of employees by head count in the whole reporting year. Gender Diversity In 2024, our organization made progress in overall gender diversity, with the share of female employees increasing from 16% to 20%. However, we acknowledge a decline in gender diversity at the top management level, where female representation decreased from 24% to 20%. While this shift reflects organizational changes during the year, we remain committed to fostering an inclusive and diverse leadership team at Cabka and will continue our efforts to support gender balance across all levels of the company. COMPANY LEVEL HEAD COUNT NUMBERS 2024 % OF FEMALES FEMALE MALE 2024 2023 Supervisory board 2 4 33% 33% Executive level 2 4 33% —% Management level 8 32 20% 24% Whole organization 119 581 20% 16% At Cabka, the management level refers to both the senior leaders in our organization who hold the final responsibility for supervising functions and the management positions that perform general practices in a specialized field. Our executive level is composed of the C-level, who are responsible for Cabka’s strategic and operational direction. Diversity metrics for Cabka’s management levels and entire workforce are collected and calculated monthly using an internal tool. This tool gathers detailed employee data, including employee positions, management levels, and gender. Cabka’s People & Culture Department uses this data from all entities to calculate the annual gender diversity rate based on the status as of December 31 of that year according to the calculation formula of ESRS S1-9. Employee Training AVERAGE NUMBER OF TRAINING HOURS OF EMPLOYEES IN 2024 FEMALE MALE TOTAL 8.64 5.99 6.44 Using a standardized approach, each Cabka entity documents all training activities throughout the year, including participant numbers by gender, purpose of the training, and training duration. The gathered data is consolidated annually by Cabka’s global People & Culture Department. Employee training, defined as formal activities aimed at individual skill enhancement, is distinguished from unrelated activities to maintain focus and clarity. The total training hours of all training activities in the reporting year are divided by the total employee headcount and per gender as of December 31 of that year to obtain the average training hours per male and female employees. Health & Safety Percentage of own workforce covered by Cabka’s H&S management system: 100% HEALTH & SAFETY METRICS 2024 Number of fatalities as a result of work-related injuries 0 Number of recordable work-related accidents (LTA) 59 Rate of recordable work-related accidents (LTIFR) 56.54 At Cabka, we focus on the health and safety metrics that reflect our performance against the negative impact the company could have on its employees and to follow our policy commitments to work towards zero harm and accidents. In line with the CSRD disclosure requirements on health and safety metrics, we measure the number of recordable work- About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 93 related lost time accidents (LTA), and the Lost Time Incident Frequency Rate (LTIFR) based on the number of recordable work-related accidents. The number and rate of accidents reported represent all accidents of our own employees recorded at Cabka sites that resulted in lost days. LTAs are defined as the number of work-related injuries and work- related ill health arising from exposure to hazards at work. We have chosen to partly make use of the phase-in provisions for the disclosure requirements under ESRS S1-14 related to work-related ill health as well as number of days lost to work-related injuries. Legal restrictions limit the availability of work-related ill health data. Therefore, in 2024, we exclusively tracked work-related injuries resulting in lost days. These injuries can result from two types of accidents: those occurring within the work environment and those occurring while performing work- related activities. The LTIFR is defined as the number of workplace incidents with lost time per 1,000,000 of hours worked. This data is collected and reported monthly. Total working hours are calculated based on the average employee headcount in 2024, with contracted hours adapted to the OECD average yearly working hours. We use full-time working hours for calculations, as the majority of employees at Cabka work full-time. With advancing digitalization of our Human Resources landscape we are expecting to improve data accuracy on working hours of our employees in the future. Despite our continuous efforts to enhance workplace safety, our key performance indicators, LTA and LTIFR, remain at a relatively high level. In 2024, Cabka further strengthened its global Health, Safety, and Environment (HSE) reporting by simplifying procedures and fostering a stronger safety culture. As a result, our teams now report accidents and injuries more reliably and transparently. The complexity of our operations, the inherently higher-risk activities at our production sites, and workforce fluctuations contribute to an above- average LTIFR and LTA. Recognizing these challenges, Cabka remains fully committed to reducing workplace accidents and ensuring a safe working environment for all employees. Our focus will continue to be on proactive accident prevention, continuous improvement, and reinforcing a safety-first culture across all activities. Annual Total Remuneration Ratio Pay ratio of Cabka’s CEO to the average total remuneration in 2024: 7:1 The calculation of the pay ratio is based on the total full year CEO salary reported in Remuneration Report on page 53, adjusted for the CEO’s company car, which is not included in the disclosed wage costs. The average total remuneration of all Cabka employees is based on the total wage costs disclosed in Remuneration Report on page 53 minus the CEO salary and further divided by the FTE number reported on p. 120. While ESRS S1-16 determines the remuneration ratio to be calculated using the median annual remuneration of all employees, the here reported ratio is calculated using the average. Calculating the median requires a much higher level of data granularity, which was not feasible for 2024. However, we are committed to improving data availability and ensuring that Cabka can report this data point in full compliance with the CSRD in future reporting periods. Incidents, Complaints, and Severe Human Rights Impacts INCIDENT METRICS 2024 Total number of incidents of discrimination 1 Number of other complaints filed through channels for people in Cabka’s own workforce to raise concerns 1 Identified cases of severe human rights incidents 0 The number of complaints filed through Cabka’s whistleblowing tool indicates the awareness about our corporate ethical standards, and our employees’ trust in our integrity as an employer who handles employee concerns and potential misconducts with utmost sincerity. Following an investigation, all complaints made are categorized based on the nature of the issue. Through this classification, all incidents of discrimination can be identified. In 2024, the case reported was classified as harassment. The incident did not lead to any fines or compensatory payments being made by Cabka. No cases of severe human rights incidents (e.g., forced labor, human trafficking or child labor) have been identified. As the whistleblower mechanisms have only recently been significantly extended, we firstly monitor the usage of the channels to establish the effectiveness. We have not yet tested awareness of channels to establish success of communication measures and gain further feedback from intended users also regarding their trust in the mechanism. Entity-Specific Disclosure: Code of Ethics Signatures 2024 In 2024, we reached a 88% employee endorsement of our Code of Ethics, signifying their acknowledgement and active support of our ethical values and principles. Our 2024 results show that we made significant progress in our initiative to ensure that 100% of our employees formally acknowledge our Company Code of Ethics, reinforcing our commitment to integrity, responsibility, and sustainability. By the end of the year, 88% of our workforce had signed the code (compared to 66% in 2023), demonstrating widespread engagement with our ethical principles. While we fell short of our full participation goal, we remain committed to achieving 100% acknowledgement through continued awareness efforts and strengthened onboarding and training processes in the coming year. Cabka’s global legal department and the local Human Resources departments collect all signatures of employees done either digitally or on paper and report the results to the Cabka Group. All employees that were employed by Cabka at some point throughout 2024 are included in the reported KPI. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 94 Our Customers: Building Partnerships for a Sustainable Future Customers are at the heart of our business, driving our mission to create sustainable and innovative solutions. By understanding and addressing their evolving needs, we build enduring partnerships that align with shared goals. Our customers’ trust and collaboration are the foundation of our growth, innovation, and positive environmental impact, making them indispensable to our journey toward a sustainable future. Our double materiality assessment results highlight the importance of our customers to Cabka for several reasons. The potential growth in demand for sustainable packaging solutions and the general trends towards sustainability present great opportunities for us to enhance our brand reputation and attract new customers. Additionally, Cabka already has a significant positive impact on the transport efficiency benefits for our customers due to the nestability or foldability of our products, higher durability, fewer damages to transported products, as well as reduced risks of injuries. However, despite all efforts, there remains a potential risk that health concerns could arise regarding the materials used in our products, mainly due to substances that could be found harmful to human health in the future. While these material IROs have been identified for Cabka, we have chosen to utilize the phase-in provision for ESRS S4 (Consumers and End-Users) in this reporting period. As this is our first year of reporting under the CSRD, the workload associated with the initial CSRD implementation has necessitated prioritization to ensure the quality and integrity of our reporting. Our decision reflects a commitment to quality over quantity, focusing on robust and meaningful disclosures across other priority areas. This phased approach will allow us to allocate the necessary resources to build a strong foundation for future reporting. Nonetheless, we are actively working to ensure full compliance with this disclosure standard in the future. Our current efforts include the further elaboration of key strategies to realize the identified opportunities, refining internal processes, and engaging relevant stakeholders to further enhance the management of the material risk, positive impact, and opportunities under this topic. We expect continued growth in demand for sustainable packaging solutions with the implementation of new packaging and packaging waste regulation, on a European and national level. These regulations are expected to have a significant impact on our customers’ packaging strategies. During 2024, we closely followed the regulatory status and put additional resources in place to be able to proactively assist our customers in this transformation process. Cabka brings 30 years of experience in circular transport packaging with cross-industry solutions and in-house product development. We consider this an important prerequisite to assist our existing and future customers during this industry transformation. Cabka is dedicated to creating solutions for our current and future customers which are both beneficial for their transport systems and workers as well as for the environment and greater society. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 95 Governance Business Conduct for Sustainable Success: Embracing Transparency and Responsibility The future success of a company increasingly depends on how sustainable its business activities are and how transparent and detailed its reporting on environmental, social, and governance effects is. While this development might pose risks for some companies, it can also open up numerous opportunities to grow while benefiting the planet, its people, and the economy. Cabka was founded as a solution to the growing issue of plastic waste, embedding sustainability into our business model right from the start. Over the past three decades, we have continuously sought new and innovative ways to turn waste into useful, long-lasting products. Over the years, various sustainability standards have been developed, and regulatory requirements have been enacted to help organizations report on their sustainability performance and journey to their stakeholders. Particularly the EU’s ESG-related regulations, such as the EU Taxonomy Regulation, the CSRD, and the Corporate Sustainability Due Diligence Directive (CSDDD), have been pushing for more ESG transparency in the corporate and finance world. While our business model inherently integrates sustainability, we are still constantly learning about new trends and further developing our reporting on sustainable activities and challenges. Our recent double materiality assessment has highlighted the importance of transparent reporting on Cabka’s sustainable business practices in line with EU regulations. This transparency is seen as a crucial opportunity to strengthen our market leader position, enhance stakeholder trust, and attract investors and customers. Conversely, a poor ESG performance and/or reporting has been determined as a material risk, potentially impacting our access to capital and equity financing in the future. Business Conduct Policies and Corporate Culture Currently, there are no specific policies in place addressing the aforementioned opportunity and risk. However, Cabka’s vision and mission statements reflect our commitment to sustainability. Our mission, “Transformation is our power. Where others see waste, we see opportunity” with our vision, “A world where supply chains don’t just move things, but change things, making a positive impact” along with our goal of “Striving to be the circularity leader in the industry”, directly relate to our overall company sustainability performance. Cabka’s strength lies in transformation because we know that while resources are limited, possibilities are endless. Innovation in transforming used plastics into new products is at the heart of our business. Everything we do is with the environment in mind. We are committed to balancing circularity, climate impact, and the use of and impact on the world’s resources through our business model. This is a challenge we are ready to embrace and which we want to measure our performance against. Transparent reporting on the management of ESG matters and related IROs following international guidelines and standards forms the foundation for Cabka’s credibility of our company’s mission. Actions for Transparency and Responsibility The CSRD, EU Taxonomy, and other related sustainability policies and regulations are still new to Cabka and other organization, but they are here to stay. In response, Cabka has established a dedicated ESG team to advise the entire company on ESG matters and collaborate with all relevant functions. This team ensures compliance with reporting regulations and drives the sustainability agenda. Transparent reporting is only possible with the full commitment of the organization, and Cabka’s ESG team supports the assigned ESG-topic leaders in monitoring performance and continuously improving the outcome of our ESG- related IRO management. Our ESG team cooperates closely with Cabka’s Finance Department to manage ESG matters, allowing for the continuous integration of financial and non-financial reporting, ensuring a strong internal control system, and mitigating any risks related to non-compliance. The ESG team has advocated for and supported the implementation of sustainability- related targets in Cabka’s short-term incentive scheme. This underscores the importance of ESG across the organization, raises awareness and commitment, and ensures the maintenance of Cabka’s high-level ESG performance. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 96 We constantly expand our in-house competence through training, workshops, and webinars. This is critical to informing our ESG agenda on new developments and evolving stakeholder expectations. For instance, two employees participated in a six-month long training program by the UN Global Compact on Human Rights and corporate due diligence. Participating in seminars by both governmental and non-governmental institutions is our general strategy to develop and advance technical knowledge on various ESG matters. While Cabka develops its internal ESG reporting know-how, we also collaborate with external partners and experts for advice on specific matters such as double materiality assessment implementation, EU Taxonomy framework definitions, CSRD reporting guidance and implementation, and ESG linked financing. In 2024, two new members joined Cabka’s ESG team to centrally coordinate Health, Safety, and Environment matters and proactively address new regulatory requirements, particularly those resulting from the European Green Deal. As our ESG team grows and advances, Cabka plans to expand its participation in sustainability assessments and initiatives to demonstrate our commitment to the environment and people in the short- to mid- term future. We aim to enhance our ESG-related reporting year by year and extend our communication around our sustainability performance and specific achievements. This will increase awareness and interest in Cabka’s offerings for both customers and investors. Over the years, Cabka has gradually developed new content, channels, and communication highlights to meet the demands of customers for ESG communication. Our ESG team continues to participate in meetings with customers, industry, and customer events, as well as relevant trade shows annually. Targets Related to Business Conduct In 2022, the Executive Leadership Team of Cabka set targets for all material ESG matters, which were communicated in our first ESG report for the financial year 2022. These targets have remained relevant for 2023 and 2024 and ensure that we maintain and further improve our performance on our ESG-related commitments. Following the update of our double materiality analysis in 2024, additional targets were determined in light of new material ESG matters that were identified in the process. While transparency in reporting and its effects on customers and investor decisions, as well as Cabka’s overall brand image, are difficult to evaluate and measure, ESG assessments and sustainability ratings gauge the level of ESG management and reporting. They also integrate regulatory requirements and voluntary standards, providing guidance on best-practice ESG performance and reporting. However, a specific time- bound and quantified target to measure Cabka’s performance towards realizing our opportunities related to sustainability transparency has not been developed so far. Metrics to Measure our Performance Similarly, no entity-specific metrics to measure our performance on this topic can be reported. Ultimately, all of the quantitative KPIs reported in the ESG statements of this Integrated Report contribute to the transparency and quality of Cabka’s sustainability reporting, and no single KPI represents the whole picture of sustainability communication. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 97 Entity-Specific Disclosure: Regulatory Compliance In recent years, changes in sustainability- related regulations have accelerated. Governments and regulatory bodies worldwide are implementing stricter rules to address pressing issues like climate change, pollution, and worker well-being. Adhering to these new regulatory requirements is crucial for all organizations. It ensures legal standing, protects the company's reputation, and prevents operational disruptions and costly penalties or legal actions. Compliance is a key aspect of responsible corporate governance, fostering trust among internal and external stakeholders alike. IRO Management and Policies While compliance with regulations aimed at increasing sustainability is not explicitly included in the scope of the CSRD ESRS, this topic remains relevant for Cabka in 2024. In our double materiality assessment, we have identified two significant risks related to regulatory requirements, as well as one material opportunity. Changes to environmental, health, and safety laws might increase operational costs for our production sites, and under new EU plastic laws, we might be required to change the design and/or make-up of our material handling products to ensure compliance, leading to costly changes in procurement, development, and manufacturing. On the other hand, the greater regulatory focus on environmental topics also opens up opportunities for us. Cabka is already a market leader in the use of recycled raw materials, design for recyclability, and product reuse, making it easier for our customers to be compliant as well. Cabka’s commitment to adhering to the legal requirements of the countries in which we operate in is embedded in all Cabka policies, including the Code of Ethics, Environmental Policy and Health & Safety Policy. These policies are applicable to all Cabka employees and our Management Board is responsible for their enforcement. They are updated regularly and communicated to all directors, managers, and employees via Cabka’s website and intranet. These policies adhere to international standards, regulations, or initiatives such as the Paris Climate Agreement, the UN’s Declaration of Human Rights, and the OECD Guidelines for Multinational Enterprises where applicable. All of Cabka’s policies are established with the interest of our internal and external stakeholders in mind, as described further on p.23-34 of this Annual Report. Certain policies, such as the Code of Ethics, are reinforced through employee signatures, training sessions (e.g., Code of Ethics, Whistleblowing Policy), and our onboarding process. Cabka responds to each legal change on a case-by-case basis, allowing us to maintain compliance while balancing operational efficiency and cost- effectiveness. Planned Actions and Targets Cabka continuously reviews regulatory updates and implements them as quickly as possible to avoid potential additional costs or negative impacts. In 2024, we employed additional staff responsible for analyzing and, if necessary, implementing legislative trends and developments for Cabka in both Europe and the US. Additionally, as a member of Plastic Recyclers Europe, we monitor ongoing and planned legal changes, especially in the plastics industry, and implement these changes in a timely manner. We also take a proactive approach to the PPWR and national regulations related to packaging. During 2024, we worked with several associations and institutions to understand and anticipate potential implications in order to reduce the costs of compliance and identify opportunities emerging from these regulations early on. Due to the required flexibility in adapting to regulatory changes and the uncertainty of future developments, no specific targets have been set for managing the risks and opportunities related to regulatory compliance. For the same reasons, no metrics are currently used to measure the success of our management of these risks and opportunity. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 98 Other Sustainability Related Disclosures Entity-Specific Disclosure: Innovation The core of Cabka’s current and future business success is innovation in all aspects of our operations. Our pursuit to continuously enhance our products and processes, along with our commitment to develop innovative solutions that cater to our customers' requirements, underscores our conviction that innovation is key to maintaining our position as an industry front runner now and in the long-term future. We make innovation a top priority in all aspects of our business, encompassing design, materials, technology, and sustainability. IROs and Related Policies In our 2024 double materiality assessment, we identified two concrete opportunities for business continuity. Firstly, further innovation in recycling and materials science creates more innovative and more sustainable products. With Cabka’s own Innovation Center and its team of material and product experts, we are uniquely positioned to continue driving sustainability in the plastic packaging industry. Secondly, new automation technologies can enhance material efficiency, improve quality control processes, and reduce the need for manual labor, thereby increasing the operational efficiency of Cabka’s production processes. By integrating smart technologies into our production processes, we can optimize quality control measures, reduce errors, and improve the overall quality of our products. The pursuit of these opportunities is ingrained in Cabka’s overall business strategy and day- to-day operations, which is why no specific policy is in place to ensure their realization. Our Innovation Ecosystem We see ourselves as catalysts and advocates for global transformation towards a circular economy. This constitutes our business model and shapes our innovation strategy. To achieve this, we have established a structured stage-gate innovation process, enabling us to identify and develop promising solutions for transportation packaging. A sustainability evaluation of the projects in our development funnel was developed and implemented in 2024. In the realm of material innovation, we are exploring cutting-edge technologies and methodologies that can improve the recovery and reuse of materials. This includes investing in advanced sorting systems, developing new recycling processes that can handle a wider variety of materials, and fostering partnerships with organizations dedicated to sustainable waste management. Cabka has implemented a quality control sample register and material validation process to assess materials against Target Data Specifications (TDS). Based on these assessments, materials are either accepted and used as intended, blended as necessary to make them usable, or rejected if unusable. This allows for a large variety of materials to be used, increasing innovation, and reducing waste. Automatization Cabka’s automation team assesses potential process improvements annually for all production sites. In 2024, we integrated new robotic technologies at our operation site in Ieper, Belgium. This transition not only enhanced working conditions by creating a quieter environment but also streamlined our operations further. For the mid-term, we plan to further automate production processes at our plant in North America to achieve ergonomic improvements, such as optimizing the working height and operator workload. Innovation Related Targets Cabka currently has no measurable and time-bound targets related to managing our opportunities for business continuity. Our Innovation Performance 2024 Innovation KPIs and targets used in-house at Cabka are specific and measurable, allowing us to track our progress and adjust as needed. This approach enables us to allocate resources effectively, set priorities and make informed decisions. Consequently, we ensure that all our innovation endeavors are in harmony with the company's overarching strategy and objectives. We are planning to also report on these KPIs and targets externally in the medium-term. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 99 Connecting Through Memberships and Partnerships To drive innovation and contribute to the growth, success, and sustainability of our business, Cabka actively participates in European and US industry associations, with a particular focus on environmental topics. Collaboration is key when improving the sustainability performance of our sector, and we further intensified our work with industry networks. As a member of the Polyolefin Circular Economy Platform (PCEP), Cabka supports and contributes to the platform’s pledge to increase the reuse and recycling of polyolefin-based products and the use of recyclates as raw material. In 2024, Cabka was accepted as an active Plastic Recyclers Europe (PRE) member, an association that represents the voice of European plastics recyclers who form the backbone of achieving circularity in Europe. PRE has 200 member companies with concentrated knowledge of materials, processes, and more to advance the European circular economy agenda. Furthermore, we became a signatory to the Science Based Target initiative (SBTi) in 2024, committing us to setting a company-wide, near- term emissions reduction target in line with the latest climate science. This is a crucial step towards reducing our carbon footprint across all operations and our value chain. Read more about this in chapter ”Working Towards a Positive Climate Impact”. Cabka also reaffirmed its support to the United Nation’s Global Compact (UNGC) in 2024, a global corporate social responsibility and corporate sustainability initiative aiming to support businesses worldwide to adopt sustainability and social responsibility policies and report their implementation. Cabka supports the 10 principles of the UNGC and has reported the annual communication on progress in regard to ESG policy implementation in 2024. In the US, Cabka is a long-term member of the Reusable Packaging Association (RPA), an organization driving innovation in and performance of reusable packaging systems. We regularly participate in events to promote circular economy concepts and sustainable practices. In June 2023, on the occasion of the reopening of our St. Louis plant, we organized a panel discussion with RPA and companies in the plastic value chain to discuss the critical importance of ESG in today’s business landscape. Numerous other events with the participation of Cabka’ s Innovation Team testify to our strong motivation for exchange and constant development, among these: • Our innovation center collaborates with several research institutes, platforms, and business partners. Currently Cabka supports various projects aimed at increasing the share of recycled material in specific industrial packaging applications and validating performance of packaging solutions in advanced and novel production platform concepts with our knowledge, test capacity, and engineering expertise. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 100 • Cabka is a partner of INCREACE, a project funded by the European Health and Digital Executive Agency (HADEA) of the European Commission under the Horizon Europe Cluster 4 program. The project aims to increase the uptake of recycled plastics in various products through innovative and interdisciplinary solutions along the plastics recycling value chain, with a focus on Electronic and Electric Equipment. Increasing the share of recycled plastics in new products is a central aspect of the European Strategy for Plastics, adopted by the European Commission in 2018 as a part of the first Circular Economy Action Plan (2015). • In June 2024, Cabka became one of 32 partners of CircSyst, a Horizon Europe-funded project coordinated by AIJU - Instituto Tecnológico de Producto Infantil y Ocio and EURADA - the European Association of Development Agencies. The project aims to develop large-scale pilot systems that implement circular business models. Cabka is among the demonstrators developing solutions related to food packaging waste valorization. Through this initiative, we are establishing roadmaps for sustainable and circular business practices that serve as a blueprint for replication across different sectors, industries, and countries. In 2024, Cabka participated in several sustainability ratings focussed on climate action and ESG in general. These performance assessments provide valuable insights into Cabka’s process towards becoming more sustainable, how we compare to our peers and other industries, and highlight potential areas for improvement in the future. For 2024, Cabka once again achieved the prestige “gold” medal in the EcoVadis assessment. The Gold rating from EcoVadis is a testament to Cabka’s commitment and excellence across the various sustainability categories and demonstrates the significant progress that has been made in one year, further moving Cabka from the top 6% to the top 4% rated companies, solidifying our position amongst the best in the industry. Cabka participated for the second time in the climate risk management assessment with the Carbon Disclosure Program (CDP), a non-profit organization that runs a global disclosure system for companies on climate impacts. In this second assessment (2024/2025), Cabka was able to score B again on a scale from A to D-, with A being best practice. The B score reflects the importance Cabka gives to climate issues and proves that we are well on track with other European businesses on the topic. From an industry perspective, Cabka scores better than the plastic manufacturing sector on average. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 101 Financial 101 Consolidated Financial Statements 102 Consolidated Statement of Comprehensive Income 104 Consolidated Statement of Financial Position 105 Consolidated Statement of Changes in Equity 106 Consolidated Statement of Cash Flows 107 Notes to the Consolidated Financial Statements 144 Company Financial Statements 144 Company Statement of Profit and Loss 145 Company Statement of Financial Position 146 Notes to the Company Financial Statements Report 2024 A Day in the Life of a Pallet On the Move After the quick stop at the distribution center, the Endur i7 is en route to a retail store. As it travels across cities, it encounters diverse environments - sometimes cold and damp, other times quite the opposite. Its resilience is tested today, but it remained steadfast, ensuring the safe delivery of 300 high-tech laptops to the store. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 102 Consolidated Financial Statements Consolidated Statement of Comprehensive Income for the year ending on December 31, 2024 and 2023 In Euro x 1,000 NOTES 2024 2023 Revenue 6 181,868 196,888 Change in inventories of finished goods and work in progress 21 1,859 -7,359 Other operating income 8 8,670 9,044 Total Operating income 192,397 198,573 Material expenses / expenses for purchased services 9 -99,820 -106,606 Personnel expenses 10 -44,910 -42,566 Amortization/depreciation and impairment of intangible and tangible fixed assets 16, 17 -20,169 -17,124 Other operating expenses 11 -29,154 -29,352 Total Operating expenses -194,052 -195,647 Finance income 12 1,864 587 Finance expenses 13 -5,932 -4,720 Net Financial Result -4,068 -4,133 Result before taxes -5,723 -1,209 Income tax (expense)/income 14 -3,631 -332 Result for the year -9,355 -1,541 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 103 Other Comprehensive Income In Euro x 1,000 NOTES 2024 2023 Result for the year -9,355 -1,541 Items that may subsequently be reclassified to profit or loss Exchange differences on translation of foreign operations -109 166 Other comprehensive income/(loss)- cash flow hedges -510 — Total comprehensive (loss) / income -9,975 -1,375 Earnings per share Basic = Diluted, result for the year attributable to ordinary equity holders of the parent 15 -0.38 -0.06 The accompanying notes are an integral part of these consolidated financial statements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 104 Consolidated Statement of Financial Position as at December 31, 2024 and 2023 In Euro x 1,000 NOTES 2024 2023 ASSETS Non-current assets Intangible assets 16 2,718 2,813 Property, plant and equipment 17 83,937 80,794 Right of Use assets 18 11,619 10,170 Long-term financial assets 19 90 90 Other long-term assets 20 — 17 Deferred tax assets 25 5,908 7,967 Total non-current assets 104,273 101,851 Current assets Inventories 21 36,208 32,058 Trade receivables 22 19,542 27,574 Short-term financial assets 19 46 42 Other short-term assets 23 9,067 12,609 Cash and cash equivalents 24 4,388 7,252 Total current assets 69,251 79,535 Total assets 173,524 181,386 In Euro x 1,000 NOTES 2024 2023 LIABILITIES Equity Share capital 26 408 408 Treasury shares 26 -160 -160 Share premium 26 73,995 77,687 Other reserves 28 6,928 7,762 Retained earnings -22,945 -13,588 Foreign currency translation reserve 29 -1,482 -1,372 Total equity 56,745 70,737 Non-current liabilities Long-term financial liabilities 30 38,897 43,259 Other long-term liabilities 33 481 — Deferred tax liabilities 25 29 88 Total non-current liabilities 39,407 43,347 Current liabilities Short-term financial liabilities 30 37,460 20,764 Provisions 32 786 838 Contract liabilities 31 3,141 4,373 Trade payables 31 29,037 32,578 Other short-term liabilities 31 6,948 8,749 Total current liabilities 77,372 67,302 Total equity and liabilities 173,524 181,386 The accompanying notes are an integral part of these consolidated financial statements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 105 Consolidated Statement of Changes in Equity as at December 31, 2024 and 2023 In Euro x 1,000 Share capital Share premium Treasury shares Other reserves  Foreign currency exchange reserve Retained earnings Non-Controlling interest Total equity At January 1, 2023 405 75,125 -164 11,035 -1,533 -12,139 - 72,729 Loss for the year - - - - - -1,541 - -1,541 Other comprehensive income/(loss)- exchange difference - - - - 166 - - 166 Other comprehensive (loss)/income for the year — — — — 166 -1,541 — -1,375 Other movements of the year - 15 - - -5 92 - 102 Reclass from VSOP roll-over - 3,681 - - - - - 3,681 Increase of PSU and PS 3 - - 544 - - - 547 Decrease from VSOP roll-over - - - -3,817 - - - -3,817 Decrease of Treasury shares at nominal value 0,01 Euro - - 4 - - - - 4 Dividends to equity holders - -1,219 - - - - - -1,219 Sale of Treasury shares - 85 - - - - - 85 Total transactions with owners of the Company 3 2,562 4 -3,273 -5 92 - -617 At December 31, 2023 408 77,687 -160 7,762 -1,372 -13,588 - 70,737 At January 1, 2024 408 77,687 -160 7,762 -1,372 -13,588 - 70,737 Loss for the year - - - - - -9,355 - -9,355 Other comprehensive income/(loss)- exchange difference - - - - -109 - - -109 Other comprehensive income/(loss)- cash flow hedges - - - -510 - - - -510 Total comprehensive income/(loss)- for the year — — — -510 -109 -9,355 — -9,975 Decrease of share based payments - - - -324 - - - -324 Dividends to equity holders - -3,707 - - - - - -3,707 Other movements of the year - 15 - - - -2 - 12 Total transactions with owners of the Company - -3,692 - -324 - -2 - -4,018 At December 31, 2024 408 73,995 -160 6,928 -1,482 -22,945 - 56,745 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 106 Consolidated Statement of Cash Flows for the year ending on December 31, 2024 and 2023 In Euro x 1,000 NOTES 2024 2023 Cash flow from operating activities Net result after tax -9,355 -1,541 Adjustments for: Amortization/depreciation of intangible and tangible fixed assets 17, 18 20,169 17,124 (Loss) on disposal/profit on sale of property, plant & equipment 18 -302 1,356 Share-based payment expense 28 -324 545 Other non-cash transactions -731 45 Finance income 13 -1,313 -308 Finance expenses 14 4,813 4,186 Income tax expenses 15, 26 3,631 332 Net foreign exchange differences 8, 12 568 255 Changes in: Inventories 22 -4,150 9,680 Trade receivables and other current assets 23, 24 11,570 335 Trade payables and other current liabilities 32, 33 -6,627 -3,600 Cash generated/(utilized) from operations 17,951 28,409 Income taxes paid 15 -1,509 -1,222 Net cash from/(used in) operating activities 16,442 27,187 Cash flow from investing activities Cash outflow for investment in intangible assets 17 -637 - Cash inflow from sale of property, plant and equipment 18 296 721 Cash outflow for investment in property, plant and equipment 18 -18,098 -31,629 Interest received on cash and equivalents 13 447 203 Net cash from/(used in) investing activities -17,992 -30,705 In Euro x 1,000 NOTES 2024 2023 Cash flow from financing activities Cash inflow from sale of treasury shares 27 - 85 Cash outflow for dividend payments 27 -3,707 -1,219 Cash outflow for the repayment of liabilities to banks 31 -2,292 -3,310 Cash inflow from receipt of liabilities to banks 31 15,515 - Cash outflow for the repayment of lease liabilities 19, 31 -2,942 -2,470 Cash inflow from sale and lease back activities 31 - 2,500 Cash outflow for the repayment of sale and lease back activities 31 -1,472 -2,727 Interest paid 14 -4,723 -3,913 Net cash from/(used in) financing activities 380 -11,054 Changes in cash and cash equivalents -1,171 -14,572 Cash and cash equivalents at the beginning of the year 25 7,252 21,035 Net foreign exchange difference -109 55 Effect of changes in foreign exchange rates 17 -1,584 734 Cash and cash equivalents at the end of the year 25 4,388 7,252 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 107 Notes to the Consolidated Financial Statements 1. Corporate Information Cabka N.V. is a company, registered with the Chamber of Commerce Amsterdam under number 80504493. As of March 1, 2024, the Company moved its registered office to John M. Keynesplein 10, 1066 EP, Amsterdam, The Netherlands (previously at Johan Cruijff Boulevard 65-71, 1101 DL Amsterdam, The Netherlands). Cabka N.V is listed on Euronext Amsterdam. It has subsidiaries in the USA, Spain, Germany and Belgium. Throughout this report, the name “Cabka”, “Cabka Group“, “the Group” or ‘’the Company’’ will be used interchangeably to refer to Cabka N.V. including its consolidated subsidiaries. Cabka is in the business of recycling plastics from post-consumer and post-industrial waste into innovative reusable pallets and large container solutions enhancing logistics chain sustainability (the “RTP-Business”) and producing sustainable products made from 100% recycled post- consumer plastic waste ( the “Eco-Products-Business”) . These products are used, for example, in construction, road and traffic safety, as well as in gardening and landscaping. With products made approximately 85-90% of recycled plastics, Cabka is leading the industry in its integrated approach closing the loop from waste to recycling, to manufacturing. The consolidated financial statements of Cabka N.V. and its subsidiaries for the year ending December 31, 2024 are presented in thousands of Euro, unless indicated otherwise. Statement of compliance The consolidated financial statements as of December 31, 2024 have been prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS IC interpretations (IFRIC), published by the International Accounting Standards Board (IASB) as adopted by the European Union (hereinafter referred to as EU-IFRS) and in accordance with the legal requirements of Part 9, Book 2 of the Dutch Civil Code. The Company financial statements are an integrated part of the 2024 financial statements of Cabka N.V. The financial statements were authorized for issue by the Management Board and Supervisory Board on 14 April 2025. 2. Basis of Preparation These consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards as adopted by the European Union (EU-IFRS) and also comply with financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil Code, as far as applicable. The annual report has been prepared in ESEF and is in accordance with the requirements as set out in the Delegated Regulation (EU) 2019/815 with regard to the regulatory technical standards on the specification of a single electronic reporting format (hereinafter: the RTS on ESEF). 2.1 Basis of Preparation: Going concern The accompanying consolidated financial statements of the Group have been prepared assuming Cabka N.V. will continue as a going concern. The going concern basis of presentation assumes that the company will continue to operate for at least a period of 12 months after the date these financial statements are issued and contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. In preparing the annual financial statements, management has assessed the Group’s ability to continue as a going concern and has considered the principal risks and uncertainties that could impact its financial position and the company’s future performance. As part of this assessment, management has taken into account the Group’s current financial position, projected cash flows, available funding, and potential mitigating actions. Based on this review, management acknowledges the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. This uncertainty arises due to the following factors: • Macro-Economic Factors: The ongoing economic instability and market volatility have adversely impacted the Group's sales and financial performance over the past few years. It is expected that the economic and political situation will remain challenging for the upcoming period, with customers continuing to be cautious with their capital expenditure, continuing to impact our sales and EBITDA in 2025. • Decline in sales & Negative net result: The Group's sales have declined by 8% from €196.9 million in 2023 to €181.9 million in 2024. This decline is primarily due to lower volumes in our US Customized Solutions and continued soft demand in our Contract Manufacturing segment. The Group reported a net result of €-9.4 million in 2024, compared to the net result of €-1.5 million in 2023. This significant decline in net result is attributed to the lower sales and the reduction of the deferred tax asset in the US. • Net Debt: The Group's net debt increased to €72.0 million in 2024, including lease obligations, compared to €56.8 million in 2023. This increase in net debt was driven by lower cash flows from operations of €16.4 million, cash flows invested into capital expenditures of €18.0 million, interest of €4.7 million, leasing and financing of €5.2 million and a €3.7 million dividend payment over 2023. • Breach of Covenants: In August 2024, the Group successfully obtained a suspension of one covenant and an increase of another covenant. However, this suspension and increase of the debt financing covenants is only temporary and is valid up until the end of Q2 2025. After this period, the company will need to comply with the initially prescribed covenants of the bank. Should the company not comply with the prescribed covenants and be unable to timely negotiate a waiver, the banks have the right to cancel the debt facility and request repayment About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 108 of the entire debt facility. Based on the current financial outlook, management revised their forecast for sales and EBITDA over 2025, which is expected to be at least at the same level as 2024. Due to the updated forecast, management anticipates that another breach of covenants could likely occur in the upcoming year. Management is actively implementing several measures to address these uncertainties and mitigate the associated risks: • Cost Optimization initiative: The Company has implemented a cash- saving and operational excellence program, “SHIFT,” which is designed to stabilize the company’s net debt via balancing the cash inflow and outflow. The program focuses on reducing our cost base and increasing our operational excellence and profitability. The company is also strictly managing its capital expenditures in 2025, with the expectation that this will be below the levels of 2024 and will mainly focus on next-generation solutions that will further enhance our profitability. • Efforts to boost sales: The company has significantly strengthened its sales force, with the first positive effects noted from the close to double-digit sales growth in our Portfolio business. Despite having key customers in the US restricting their CAPEX spending for the time being, the company is actively working on proof-of-concept trials with other potential customers, which can potentially close the sales gap we currently experience in our customized solutions segment. • Strategic Partnerships: Exploring strategic partnerships and collaborations to enhance revenue streams and market presence. • Efforts to strengthen our balance sheet: Strengthening the balance sheet is actively considered and assessed. • Balance cash inflow and outflow: Cabka has sufficient room to draw down additional funds from its current debt facility, if needed. However, the company’s aim for 2025 is to balance the cash inflow and outflow, therefore aiming to stabilize our net debt. Cabka's management is engaging in proactive discussions with the banks, which are still ongoing and the outcome of which is currently uncertain. These are constructive discussions with the bank to agree the appropriate terms of the financial covenants. The objective is to align and renegotiate the terms of the debt facility and the financial covenants to reflect the current financial realities and operational challenges. While management remains confident in the Group’s ability to implement appropriate measures to address these challenges, there still exists a material uncertainty on the continuation of the credit facility which may cast doubt on the Company's ability to continue as a going concern. As a result, these conditions indicate the existence of a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern. Nevertheless, the financial statements have been prepared on a going concern basis, as management is confident that market conditions will improve over time. Management also believes that they will will be successful in strengthening the balance sheet, including securing support from lenders. In light of all of the above, management has assessed the going concern assumption, which is the basis on which Cabka's consolidated financial statements for the period ended on December 31, 2024 have been prepared. 2.2 Measurement Basis The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments such as derivatives, Special Shares liabilities, share-based payments and warrants, which are measured at fair value. Refer to Note 3.4 and 7 for fair value measurement. 2.3 Accounting Judgements and Sources of Estimation Uncertainty The preparation of the financial statements necessitates the use of estimates, assumptions and judgements by management. These estimates and assumptions affect the reported amounts of assets, liabilities, and contingent assets and liabilities at the statement of financial position date as well as the reported income and expenses for the year. Although estimates are based on management’s best knowledge and judgement of current facts as at the statement of financial position date, the actual outcome may differ from these estimates. As a result, there is a significant risk that the aforementioned causes a potential material adjustment to the carrying amounts of assets and liabilities within the next financial year, see notes: • Note 14 – utilization of tax losses • Note 17 – impairments of property, plant and equipment • Note 18 – lease liabilities • Note 27 – accounting for share-based payments Where relevant, the group has provided sensitivity analyses demonstrating the impact of changes in key estimates and assumptions on reported results. 2.4 Presentation of Cash Flow Statement The consolidated statement of cash flows is prepared using the indirect method. The cash flow statement distinguishes between operating, investing and financing activities. Cash flows in foreign currencies are converted at the exchange rate at the dates of the transactions. Currency exchange differences on cash held are shown separately. Payments and receipts of corporate taxes are included as cash flow from operating activities and interest paid is shown as cash flow from financing activities. Cash flows resulting from acquisition/divestment of financial interest in subsidiaries and associates are included as cash flow from investing activities, taking into account the available cash in these interests. Dividends paid are part of the cash flow from financing activities. 3. Summary of Significant Accounting Policies Cabka N.V. has consistently applied the following accounting policies to all years presented in these consolidated financial statements. 3.1 Basis of Consolidation 3.1.1 Subsidiaries The consolidated financial statements comprise the financial figures of the Company and its subsidiaries as of December 31, 2024. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Subsidiaries are fully consolidated, from the date on which control is transferred to the Group. They are deconsolidated from the date that control ceases. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 109 Profit or loss and each component of Other Comprehensive Income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non- controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. 3.1.2 Transactions Eliminated on Consolidation All intragroup assets and liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on consolidation. 3.1.3 Changes in Ownership Structure A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. 3.2 Foreign Currencies The Group’s consolidated financial statements are presented in euros, which is also the parent company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The Group uses the direct method of consolidation and, on disposal of a foreign operation, the gain or loss that is reclassified to profit or loss reflects the amount that arises from using this method. Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognized in profit or loss. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences on items whose fair value gain or loss is recognized in OCI or profit or loss are also recognized in OCI or profit or loss, respectively). In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Group initially recognizes the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Group determines the transaction date for each payment or receipt of advance consideration. On consolidation, the assets and liabilities of foreign operations are translated into euro at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at exchange rates prevailing at the dates of the transactions. The exchange differences arising on translation for consolidation are recognized in OCI. On disposal of a foreign operation, the component of OCI relating to that particular foreign operation is reclassified to profit or loss. 3.3 Current and Non-Current Classification The Group presents assets and liabilities in the statement of financial position based on current/non-current classification. An asset is current when it is: • Expected to be realized or intended to be sold or consumed in the normal operating cycle, • Held primarily for the purpose of trading, • Expected to be realized within twelve months after the reporting period, or • Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period. All other assets are classified as non-current. A liability is current when: • It is expected to be settled in the normal operating cycle, • It is held primarily for the purpose of trading, • It is due to be settled within twelve months after the reporting period, or • It does not have the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. The Group classifies all other liabilities as non-current. Deferred tax assets and liabilities are classified as non-current assets and liabilities. 3.4 Fair Value Measurement The Group measures financial instruments such as derivatives at fair value through profit and loss. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either: • In the principal market for the asset or liability, or • In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be accessible by the Group. The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 110 All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole: • Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities. • Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable. • Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable. For assets and liabilities that are recognized in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by reassessing categorization (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period. For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy, as explained above. Fair value related disclosures for financial instruments and non-financial assets that are measured at fair value or where fair values are disclosed, are summarized in the following notes below. For a summary of the categories specific to Cabka, refer to fair value measurement (Note 7). 3.5 Property Plant and Equipment 3.5.1 Owned Assets Plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The costs include the purchase price and any directly attributable transaction costs. Supplier discounts have been deducted. Self-developed assets are stated at cost, net of depreciation and accumulated impairment losses, if any. The costs include directly attributable transaction costs, such as for material and personnel. Prepayments at the stage of assets under construction are stated at cash value. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: • Buildings 20 to 25 years • Technical equipment and machines 3 to 15 years • Other equipment, factory and office equipment, vehicles 3 to 15 years. The Group reviews the estimated residual values and expected useful lives of assets at least annually. In particular, the Group considers the impact of health, safety, and environmental legislation in its assessment of expected useful lives and estimated residual values. The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate. 3.5.2 Leases At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified assets for a period of time in exchange for a consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognizes lease liabilities to make lease payments and right- of-use assets representing the right to use the underlying assets. Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right- of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows: • Land and buildings, plant, and machinery 3 to 15 years • Motor vehicles and other equipment 3 to 5 years Lease Liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate. In calculating the present value of lease payments, the Group applies the interest rate of the contract if applicable. In case of contracts, where the interest rate implicit in the lease cannot readily be determined, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset. The group presents right-of-use assets in “Right-of-Use assets” and lease liabilities in “Financial liabilities” in the statement of financial position. Interest on lease liabilities is included in “Interest expense” in the income statement and included in the cash flows from financing activities in the statement of cash flows. The group’s leasing About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 111 arrangements relate primarily to office buildings, warehouse space, equipment and motor vehicles. Lease expenses – short-term leases and leases of low-value assets The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of machinery that have a lease term of 12 months or less and leases of low-value assets. Individual lease assets with a new value of € 5,000 or less (or any other foreign exchange equivalent) are considered to be low value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term. 3.6 Intangible Assets Research expenditures are recognized as expenses as incurred. Development costs that are directly attributable to the design and testing of identifiable and unique products controlled by the group are recognized as intangible assets if, and only if: • it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity; and • the cost of the asset can be measured reliably An intangible asset arising from development (or from the development phase of an internal project) shall be recognized if, and only if, an entity can demonstrate all of the following: (a) the technical feasibility of completing the intangible asset so that it will be available for use or sale. (b) its intention to complete the intangible asset and use or sell it. (c) its ability to use or sell the intangible asset. (d) how the intangible asset will generate probable future economic benefits. Among other things, the entity can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset. (e) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset. (f) its ability to measure reliably the expenditure attributable to the intangible asset during its development. Other development expenditures that do not meet these criteria are recognized as an expense as incurred. Self-developed intangible assets are stated at cost, net of amortization and accumulated impairment losses, if any. The costs include directly attributable transaction costs, such as for material and personnel. The Group capitalizes and recognizes, as internally generated assets, the automation and development costs arising from the design and development of new assets in order to ensure maximum customization of final products. Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. There are only intangible assets with finite useful lives at the Group. Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit or loss. Intangible assets at the Group are split into customer relationships, internally developed intangible assets, purchased intangible assets and advance payments charged. All categories of intangible assets are considered long-term intangible assets and are amortized on a straight-line basis over their useful economic lives, between 3 and 5 years. 3.7 Financial Instruments and other Investments Financial instruments are contracts which result in a financial asset with one company and a financial liability or an equity instrument with another. Financial instruments comprise primary financing instruments such as receivables and trade payables or also financial receivables and financial liabilities. Financial Instruments of the Group include derivative financial instruments such as forward exchange contracts as well as interest rate derivatives and currency swaps. Financial assets and liabilities are categorized as follows: 1. Assets and liabilities measured at amortized cost 2. Assets and liabilities measured at fair value through profit or loss 3. Assets measured at fair value through other comprehensive income A financial asset or a financial liability is initially measured at fair value plus, in the case of the first and third category, transaction costs. The subsequent measurement of financial assets and liabilities of the first category is made at amortized cost or by using the effective interest method. Financial assets and liabilities of the second category are measured at fair value on the balance sheet date. Market fluctuations are recognized in the income statement. The Company enter into derivative financial instruments (derivatives) in order to manage interest and currency fluctuation. Hedge accounting allows derivatives to be designated as a hedge of another (non- derivative) financial instrument, to mitigate the impact of potential volatility in the income statement of changes in the fair value of the derivative instruments. To qualify for hedge accounting, documentation is prepared specifying the hedging strategy, the component transactions and methodology used for effectiveness measurement. Cabka uses the following hedge accounting method for interest rate derivatives: Changes in the carrying value of financial instruments that are designated and effective as hedges of future cash flows (cash flow About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 112 hedges) are recognized directly in equity and any ineffective portion of the hedge is recognized immediately in the income statement. Amounts deferred in equity in respect of cash flow hedges are subsequently recognized in the income statement in the same period in which the hedged item affects net profit or loss. Changes in the fair value of derivatives that do not qualify for hedge accounting are recognized in the income statement as they arise. Hedge accounting is discontinued when the hedging instrument expires or is sold, terminated, exercised or no longer qualifies for hedge accounting. At that time, any cumulative gains or losses relating to cash flow hedges recognized in equity are initially retained in equity and subsequently recognized in the income statement in the same periods in which the previously hedged item affects net profit or loss. 3.7.1 Cash and Cash Equivalents Cash and cash equivalents in the statement of financial position comprise cash at banks and on hand and are carried at amortized cost. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts as they are considered an integral part of the Group’s cash management. 3.7.2 Trade and Other Receivables Trade and other receivables represent the Group’s right to a consideration that is unconditional. Initial recognition of trade and other receivables takes place at transaction price and then at amortized cost, and are subsequently carried less impairment losses or expected credit losses (see Note 22). The Group uses non-recourse factoring, accounts receivable are removed from the balance sheet once sold to the factor. The cash received is recognized, and factoring fees or discounts are recorded in the income statement. A retention amount and/or deferred purchase price is recognized as receivable against the factor. 3.7.3 Trade and Other Payables Trade and other payables are initially recorded at fair value and then carried at amortized cost. 3.8 Inventories Raw materials and supplies, spare parts and trading goods are valued at acquisition costs on an average price basis. Finished and work in progress goods are valued at the lower of cost or net realizable value. The production costs include material costs, manufacturing costs, and special costs of production as well as adequate parts of the necessary material costs, manufacturing costs, and the value consumption of the fixed assets. Reasonable costs of the administration costs are also included in those costs. 3.9 Impairments 3.9.1 Financial Assets The Group recognizes impairments for financial assets based on the ‘expected credit loss’ model. The Group measures loss allowances at an amount equal to the lifetime expected credit losses. Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls, being the difference between the cash flows due to the entity in accordance with the contract and the cash flows that the Group expects to receive. The Group makes use of the simplified method for trade receivables and contracts assets as set out in IFRS 9. The expected credit losses for significant financial assets are determined on an individual basis. The remaining financial assets are assessed collectively in groups of assets that have similar credit risk characteristics. All impairment losses are recognized in the consolidated statement of profit and loss. An impairment loss is reversed if the reversal can be related objectively to an event occurring after the impairment loss was recognized. For financial assets measured at amortized cost, the reversal is recognized in profit or loss. 3.9.2 Non-financial Assets The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For intangible assets that have indefinite lives or that are not yet available for use, the recoverable amount is estimated at each reporting date. The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or groups of assets (the ‘cash generating unit’). An impairment loss is recognized if the carrying amount of an asset or its cash-generating unit exceeds its estimated recoverable amount. Impairment losses are recognized in profit or loss. 3.9.3 Reversal of Impairment Losses Impairment losses in respect of other assets are reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized. Reversals of impairment losses are recognized in profit or loss. No reversals of impairment losses for other assets occurred in the reporting year. 3.10 Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 113 The process of determining the amount of the provision involves judgment and estimation. Management assesses the circumstances surrounding the obligation, considers historical data and other relevant information to estimate the future costs and the likelihood of various possible outcomes. When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognized as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit or loss net of any reimbursement. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost. 3.11 Other Assets Other receivables and other assets are initially recognized at fair market value. Subsequently carried at the lower of amortized cost or fair market value. Account is taken of all identifiable individual risks and general default risks by means of appropriate value reductions. Specific cases of default lead to the receivable in question being written off. 3.12 Revenue from Contracts with Customers Cabka’s business can be split between reusable pallets and large container solutions enhancing logistics chain sustainability (the “RTP- Business”), and “Eco-Products” which find application mainly in the road safety and construction sector. Cabka receives a recycling fee from suppliers for handling and recycling specific post-consumer waste, i.e., mixed plastics. Revenue from contracts with customers is recognized when control of the goods or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those goods or services. The Group has generally concluded that it is the principal in its revenue arrangements because it typically controls the goods or services before transferring them to the customer. Sale of pallets and containers, Eco products, non-strategic products and customized solutions Revenue from the sale of pallets, containers, Eco products, non- strategic products and customized solutions is recognized at the point in time when control of the asset is transferred to the customer, generally on collection of goods by customers ex works. The Group considers whether there are other promises in the contract that are separate performance obligations to which a portion of the transaction price needs to be allocated (e.g., warranties, customer loyalty points). In determining the transaction price for the sale of pallets, containers, Eco products and non-strategic products, the Group considers the effects of a variable consideration, existence of a significant financing component, a non-cash consideration, and a consideration payable to the customer (if any). Recycling Fees Recycling fees are compensation for assuming the liability to recycle the mixed plastics. When mixed plastics are received, the recycling fee is recognized as a liability. This liability is extinguished when the mixed plastics are recycled in the production process. At that moment, the liability is released to profit and loss as revenue. Sale of materials and freights Revenue from the sale of material is recognized at the point in time when control of the asset is transferred to the customer. Revenue for transportation is recognized over time after measuring its progress toward complete satisfaction of the performance obligation. Revenue for customized solutions In connection with customized solutions, the Group recognizes two performance obligations. One is related to the development of the tool, with the purpose of providing customized products to customers, and revenues are recognized over time using the percentage of completion method; the second performance obligation relates to delivering customized final products with specific characteristics to customers and revenues are recognized at a point in time when the products will be delivered. Delivery is defined based on the terms of the sales contract. A receivable is recognized if a consideration that is unconditional is due from the customer (i.e., only the passage of time is required before payment of the consideration is due). A contract liability is recognized if a payment is received, or a payment is due (whichever applies first) from a customer before the Group transfers the related goods or services. Contract liabilities are recognized as revenue when the Group performs under the contract (i.e., transfers control of the related goods or services to the customer). 3.12.1 Other Operating Income Other operating income includes income from all other operating activities which are not related to the principal activities of the Company. Other income is recognized when it is probable that future economic benefits will flow to the Company and when the amount can be measured reliably. Other operating income at Cabka includes, but is not limited to, proceeds from insurance, governmental subsidies and gains on the sale of fixed assets. 3.13 Share Capital 3.13.1 Ordinary Shares Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. 3.13.2 Repurchase, Disposal and Reissue of Share Capital (Treasury Shares) When own shares recognized as equity are repurchased, the amount of the consideration paid, including directly attributable costs and net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares and are presented as a deduction from total equity. If treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is transferred respectively to or from other reserves. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 114 3.13.3 Dividends The holders of ordinary shares are entitled to receive dividends as determined from time to time by the General Meeting of Shareholders. The Management Board has the authority to decide, with the approval of the Supervisory Board, what portion of the profit will be allocated to the reserves. If applicable, the declared but unpaid dividends are recognized as a liability. 3.14 Taxes 3.14.1 Current Income Tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Current income tax related to items recognized directly in equity is recorded in equity rather than in the statement of profit or loss. Management periodically reviews the positions taken in tax returns, especially in cases where tax regulations are open to interpretation. This review reflects the impact of uncertainty in determining the related taxable profit if it is unlikely that the taxation authority will accept an uncertain tax treatment. 3.14.2 Deferred Tax Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognized for taxable temporary differences. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Cabka Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on the same taxable entity. 3.14.3 Sales Tax Expenses and assets are recognized net of the amount of sales tax, except: • When the sales tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the sales tax is recognized as part of the cost of acquisition of the asset or as part of the expense item, as applicable • When receivables and payables are stated with the amount of sales tax included The net amount of sales tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the statement of financial position. 3.15 Share-Based Payments Employees of the Group receive remuneration in the form of share- based payments, whereby employees render services as a consideration for equity instruments (equity-settled share-based payments transactions) or for cash-payments based on the value of equity instruments (cash-settled share-based payments). Equity-settled share-based payments The cost of equity-settled share-based payments transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model, further details of which are provided in Note 27. That cost is recognized in personnel expenses, together with a corresponding increase in equity (other reserves, as presented in the consolidated statement of changes in equity), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions and any other conditions attached to an award, but without an associated service requirement (non-vesting conditions) are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 115 provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. Cash-settled transactions A liability is recognized for the fair value of cash-settled transactions. The fair value is measured initially and at each reporting date up to and including the settlement date, with changes in fair value recognized in employee benefits expense (see Note 10). The fair value is expensed over the period until the vesting date with recognition of a corresponding liability. The fair value is determined using an appropriate valuation model, further details of which are provided in Note 27. The approach used to account for vesting conditions when measuring equity-settled share-based payments also applies to cash-settled share-based payments. 3.16 Expenses Expenses are recognized based on the accrual basis of accounting. This means that expenses are recognized when the product is received, or the service is provided regardless of when cash outflow takes place. For expenses recognized in relation to depreciation and impairments, reference is made to the specific accounting policy as is included in Notes 3.5 and 3.9. For the costs as expensed in relation to inventory, reference is made to the specific accounting policy as is included in Note 3.8. 3.17 Employee Benefits The Group has a defined contribution plan for its employees. A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity and will have no legal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognized as an employee benefit expense in profit or loss when incurred. Prepaid contributions are recognized as an asset to the extent that a cash refund or reduction in future payments will occur. 3.18 Government Grants The Group receives government grants, such as subsidies for the employment of permanent employees. Grants that compensate the Group for expenses incurred, are recognized in profit or loss as other operating income, unless the conditions for receiving the grant are not met yet. In this situation, the grant is recognized when it becomes receivable. Governmental grants for energy expenses are recognized in the same expense position offsetting the occurred costs. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 116 3.19 New and Amended IFRS The Group applied, for the first time, the following standards and amendments, which are effective for annual periods beginning on or after January 1, 2024 (unless otherwise stated). The Group did not early adopt any other standards, interpretations, or amendments that were issued but are not yet effective. New or Amended Standards (Issued but not yet Effective) Amended Content First Time Adoption EU-Endorsed Major Impact on the Group IAS 1 Amended Presentation of financial statements – classification of debt as short and long term; disclosure of accounting policies 2024 Yes No IFRS 16 Amended Leasing liabilities at sale-and-leaseback transactions 2024 Yes No IAS 7 and IFRS 7 Amended The amendments aim to improve the transparency of supply chain finance arrangements that enables investors to assess their effects on a company’s liabilities, cash flows and exposure to liquidity risk. 2024 Yes No The new and amended standards and interpretations that were issued, but are not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. New or Amended Standards (Issued but not yet Effective) Amended Content First Time Adoption EU-Endorsed Major Impact on the Group IAS 21 Amended The amendments specify when a currency is exchangeable into another currency and when it is not, and how an entity determines the exchange rate to apply when a currency is not exchangeable. 2025 Yes No IFRS 9 and IFRS 7 Amended The amendments clarify the requirements related to the date of recognition and derecognition of financial assets and financial liabilities, with an exception for derecognition of financial liabilities settled via an electronic transfer. The requirements for assessing contractual cash flow characteristics of financial assets. Characteristics of non-recourse loans and contractually linked instruments. The Amendments also introduce certain disclosure requirements for financial instruments. 2025 Yes No IFRS 19 Amended IFRS 19 permits certain entities to apply the full measurement requirements of IFRS Accounting Standards, but with significantly reduced disclosures. 2025 Yes No IFRS 18 Amended This latest IFRS Accounting Standard sets out significant new requirements for how financial statements are presented, with particular focus on the statement of profit or loss, including requirements for mandatory sub-totals to be presented, aggregation and disaggregation of information, as well as disclosures related to management-defined performance measures 2027 Yes No There are no other IFRSs that have been issued but are not yet effective that are expected to have a material effect on future consolidated financial statements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 117 3.20 Correction and Adjustment of Amounts During 2024, the company performed a comprehensive reassessment on the classification of certain costs within our financial statements, in order to enhance the transparency and accuracy of our financial reporting. As a result of this reassessment, the company made two reclassifications in the statement of profit and loss and other comprehensive income. These reclassifications were deemed necessary to better represent the financial results of our operations. Transportation cost related to finished goods sold, previously included within operating expenses, has been reclassified to expenses for materials, energy and purchased services, given that these costs better reflect the direct costs involved in production and sale of our goods. In addition, gains related to FX, previously included within other operating income, have been reclassified to financial income, and losses related to FX, previously included within operating expenses, have been reclassified to financial expenses. The reclassifications have been adjusted in the FY2023 comparative year, as disclosed in the consolidated financial statements for the FY2024. The restatements did not impact the company statement of profit or loss nor equity. The impact of the restatement is disclosed in the following table: In Euro x 1,000 notes 2023 Restatement 2023 (Restated) Revenue 6 196,888 196,888 Change in inventories of finished goods and work in progress 22 -7,359 -7,359 Other operating income 8 9,322 -279 9,044 Total Operating income 198,851 -279 198,573 Material expenses / expenses for purchased services 9 -102,226 -4,380 -106,606 Personnel expenses 10 -42,566 -42,566 Amortization/depreciation and impairment of intangible and tangible fixed assets 17, 18 -17,124 -17,124 Other operating expenses 12 -34,266 4,914 -29,352 Share listing expenses 37 - - Total Operating expenses -196,182 534 -195,647 Finance income 13 308 279 587 Finance expenses 14 -4,186 -534 -4,720 Net Financial Result -3,878 -255 -4,133 Result before taxes -1,209 - -1,209 Income tax (expense)/income 15 -332 -332 Result for the year -1,541 - -1,541 Attributable to: Non-controlling interest - - Equity holders of CABKA N.V. -1,541 - -1,541 4. Significant Events and Transactions As of the publication of this report, the markets we operate in remain volatile and uncertain. The effects on energy and material prices have substantially decreased since their peak in 2022. However the ongoing Russian invasion of Ukraine and the political instability due to the Israeli- Palestinian conflict, continues to put pressure on the demand and on prices. More specific to the company, the following significant events and transactions occurred during the year: • As of February 19, 2024, Niek Hoek was appointed as Chair of the Supervisory Board. • At the EGM of August 1, 2024, Alexander Masharov was appointed as Chief Executive Officer of Cabka • In August 2024, Cabka successfully negotiated with the bank to waive and adjust certain financial covenants until end of Q2 2025, refer to note 30 for further information. • As of September 30, 2024, Tim Litjens stepped down as CEO. • As of November 13, 2024 Oliver Seidl was nominated for appointment as an interim member of the Supervisory Board, following the resignation of Manuel Beja. This appointment is subject to the approval of the Annual General Meeting of Shareholders. The (financial) impact of the above events is also described in more detail in the company statement preceding the financial section. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 118 5. Group Information The consolidated financial statements of the Group includes: Name Principal Activities Country of Incorporation % Equity Interest 2024 2023 Cabka N.V., Amsterdam Ultimate parent Netherlands 100 100 Cabka Group GmbH, Berlin Holding Germany 100 100 Cabka N.V. Belgium (formally known as Innova Packaging Systems) Subsidiary Belgium 100 100 Cabka Belgium N.V., Herstal Subsidiary Belgium 100 100 Cabka Spain S.L.U., Valencia Subsidiary Spain 100 100 System Technik GmbH, Weira Subsidiary Germany 100 100 Cabka North America Inc., Missouri Subsidiary USA 100 100 Cabka GmbH & Co. KG, Weira Subsidiary Germany 100 100 Cabka Eco Products GmbH & Co. KG, Weira Subsidiary Germany 100 100 Cabka N.V. is the ultimate parent of the Group. For an overview of share ownership in Cabka N.V,. we refer to note 52 of the Company financial statements. There were no changes in the ownership structure of the Group during 2024. The holding company The immediate and ultimate holding company of Cabka Group GmbH, located in Germany, is Cabka N.V. and is based and listed in the Netherlands. Cabka N.V. and Cabka Group GmbH both provide services in various functions, such as IT, HR, Marketing, Finance and Purchasing to the subsidiaries. The subsidiaries in Belgium, Germany, Spain and the US primarily manufacture the products for the RTP business as well as for Eco products and provide services to customers. Recycling activities are spread over various locations. The subsidiary in Spain contains the Innovation Center, which focuses primarily on new product development, automation projects and material developments for the entire group. Exemptions publication Cabka N.V. has issued joint and several liability for the following subsidiaries. These subsidiaries makes use of the exemption provisions pursuant to Section 264 (3) and 264b of the German Commercial Code (HGB) -which is similar to section 403, subsection 1 of Book 2 of the Dutch Civil Code- and waive the disclosure of the 2024 annual financial statements and, in some cases, the preparation of the notes or management report and the audit of the annual financial statements: * Cabka Group GmbH, Berlin * Cabka Eco Products GmbH & Co. KG, Weira * Cabka GmbH & Co. KG, Weira * System Technik GmbH, Weira Each of these subsidiaries has filed Cabka ’s 264 declaration with the German trade register. 6. Revenue from Contracts with Customers and Segment Reporting Sales of goods and services are recognized in line with the requirements of IFRS 15, Revenue from contracts with customers. Revenue is measured based on the consideration Cabka expects to receive in exchange for the goods or services. Revenue from the sale of goods includes sales related to the development of tooling for delivering customized products. This is recognized over time for the amount of €1,888,000, using the percentage of completion method. The revenue was fully recognized in 2024 as the related projects were completed within the reporting year. Revenue from services is recognized when the respective services have been rendered and is related primarily to freight and transportation services. Revenue is reported net of sales taxes, returns, discounts and rebates. Rebates to customers are provided for in the same period that the related sales are recorded based on the contract terms. Cabka periodically enters into prepayment contracts with customers whereby it enters into contract liabilities for products to be delivered in a future period. These contract liabilities are recorded as liabilities and presented as part of contract liabilities for €240,000 (2023: €511,000). 6.1 Disaggregated Revenue Information Set ou t below is the disaggregation of the Group’s revenue from contracts with customers in primary business segments and geographical markets: Revenues by Product Segment In Euro x 1,000 2024 2023 Change RTP Europe 124,873 125,169 -% Portfolio 77,475 71,589 8% Customized Solutions 34,519 34,746 -1% Contract Manufacturing 12,879 18,833 -32% RTP US 21,189 32,749 -35% Eco Products 12,558 11,139 13% Recycling Fees 13,779 14,140 -3% Others 9,470 13,691 -31% Non-Strategic Products 5,410 10,848 -50% Material Sales & Freight 4,059 2,843 43% Total 181,868 196,888 -8% During 2024, the company updated the product segmentation of certain customers to better reflect their strategic positioning within our revenue segments. Consequently, the revenue figures by product segment for 2023 have been realigned to match the new segmentation for a more accurate comparison. The realignment of prior year revenue figures change did not affect the total revenue reported for the prior year, however it did impact the revenue recorded for Portfolio Europe, as it increased by €3.6 million About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 119 compared to the published numbers over 2023, and Customized solutions Europe decreased with the same amount. Revenues by Geography In Euro x 1,000 2024 2023 Change Europe 154,848 160,162 -3% DACH 58,874 60,771 -3% West & Nordics 59,959 63,064 -5% CEE 10,037 10,795 -7% South 25,977 25,532 2% North America 21,499 32,601 -34% RoW 5,521 4,125 34% Total 181,868 196,888 -8% Since Cabka is primarily selling products made from recycled plastic materials to customers, either in the Reusable Transport Packaging (RTP) segment or in the Eco Products business, the entity recognizes revenue when it satisfies an identified performance obligation by transferring a promised good or service to a customer. A good or service is transferred when the customer obtains control of that good or service, which is mainly at a certain point in time. Invoices are payable within agreed payment conditions, usually between 30 – 90 days. Recycling Fees are recognized as revenue when the performance obligation, processing of the incoming mixed plastic materials, is fulfilled. Revenue for services is presented under Material Sales & Freight and is primarily related to transportation services. All of the Group’s segments generate their revenue to the largest extent from the sale of products. In view of the large variety of products, a meaningful grouping below the segment information is not monitored at this stage. 6.2 Segment Information For Management purposes, the Group is structured to steer business results at the legal entity level rather than by product segments. Consequently, the most appropriate way to present the segments is by dividing them into two main geographical regions: Europe and North America. In Europe, the group operates both the RTP business and the Eco Product business, encompassing the entire value chain from in-house recycling of plastic waste materials to the manufacturing of products and sale of products and services. In North America, the focus is on the RTP business, covering the full value chain from recycling post-industrial waste to the manufacturing and sale of products and services. Segment Performance 2024 In Euro x 1,000 Europe North America Total Revenue 160,369 21,499 181,868 Change in inventories of finished goods and work in progress 2,061 -202 1,859 Other operating income 8,453 217 8,670 Total Operating income 170,883 21,514 192,397 Material expenses / expenses for purchased services -88,866 -10,954 -99,820 Gross profit 82,017 10,560 92,577 Personnel expenses -44,910 Amortization/depreciation and impairment of intangible and tangible fixed assets -20,169 Other operating expenses -29,154 EBIT -1,656 Finance income 1,864 Finance costs -5,932 Financial Result -4,068 Result before taxes -5,723 Income tax expense -3,631 Net result for the year -9,355 Attributable to: Equity holders of CABKA N.V. -9,355 The revenue information above is based on the realization of sales of goods and services assigned to the legal entity either in the US or in Europe. There is no specific customer in any of the regions with a revenue share of 10% or more of the total revenue. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 120 In the above segment performance view are one-off non-recurring income and expenses, such as non-recoverable VAT relating to share listing expenses, non-operational employee related expenses, and the release of the deferred tax asset accrued for in the US. In the financial year 2023, the US business was still impacted by the flooding that occurred in mid-2022 at Cabka’s production site in St. Louis. This occurred primarily in the first half of the year due to the continuation of having to use external manufacturing capacity to meet customer demand. This resulted in higher purchased services costs leading to a lower gross profit. In the second half of the year, margins improved significantly in the US when returning, as planned, to the in- house product manufacturing capacity as well as the in-house material processing lines to obtain own recycled plastic raw materials to produce finished goods. In Europe, margins were affected favorably by two key developments. First, the RTP business grew, especially in the customized solutions segment, while the energy and raw material markets stabilized at lower levels compared to the previous year. Secondly, after the successful relocation of the Eco Products business from the Genthin site to Weira at end of 2022, economies of scales were realized with increased processing capacity for further growth. Segment Performance 2023 In Euro x 1,000 Europe North America Total Revenue 164,208 32,680 196,888 Change in inventories of finished goods and work in progress -3,395 -3,964 -7,359 Other operating income 7,683 1,361 9,044 Total Operating income 168,496 30,078 198,573 Material expenses / expenses for purchased services -88,340 -18,267 -106,606 Gross profit 80,156 11,811 91,967 Personnel expenses -42,566 Amortization/depreciation and impairment of intangible and tangible fixed assets -17,124 Other operating expenses -29,352 EBIT 2,926 Finance income 587 Finance costs -4,720 Financial Result -4,133 Result before taxes -1,209 Income tax expense -332 Net result for the year -1,541 Attributable to: Equity holders of CABKA N.V. -1,541 The average number of FTEs with permanent employment contracts can be specified as follows: Full Time Equivalents 2024 Per Department Europe US TOTAL Production 381 60 441 Sales & Marketing 45 7 52 Innovation Center 32 0 32 General & Administration 78 8 86 Total 536 75 611 Full Time Equivalents 2023 Per Department Europe US TOTAL Production 365 40 404 Sales & Marketing 32 6 38 Innovation Center 40 0 40 General & Administration 110 11 121 Total 547 57 603 Assets and liabilities are not monitored by segment and therefore not presented per segment. The Executive Management Committee monitors the gross profit of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the consolidated financial statements. The Group’s financing (including finance costs, finance income and other income) is managed on a Group basis in close alignment with local Management. Income taxes are managed on the legal entity level in close coordination with Group Management. Transfer prices between operating segments are on an arm’s-length basis in a manner similar to transactions with third parties. Finance costs, finance income, and fair value gains and losses on financial assets are not allocated to individual segments as the underlying instruments are managed on a group basis. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 121 7. Fair Value Measurement The Group's best estimate is that the book value of the following financial assets and liabilities is considered a reasonable approximation of their fair value: • trade and other receivables; • cash and cash equivalents; • bank loans; lease liabilities and liabilities to other financial institutions; • trade and other payables. • other liabilities The fair value of the financial instruments for 2024 is as follows: Fair value measurement IN EUR x 1.000 At Amortized Cost Mandatory at FVTPL Total Carrying Value At December 31, 2024 Trade and other receivables 19,860 — 19,860 Cash and cash equivalents 4,388 — 4,388 Financial assets at amortized costs 24,248 — 24,248 Liabilities to banks 61,961 — 61,961 Lease liabilities 10,802 — 10,802 Lease purchase agreements 3,388 — 3,388 Trade and other payables 29,037 — 29,037 Financial liabilities at amortized costs 105,189 — 105,189 Special shares liabilities — 205 205 Other liabilities - derivatives — 510 510 Financial liabilities measured at fair value — 716 716 The overview below summarizes the fair value movements for 2023: IN EUR x 1,000 At Amortized Cost Mandatory at FVTPL Total Carrying Value At December 31, 2023 Trade and other receivables 28,514 — 28,514 Cash and cash equivalents 7,252 — 7,252 Financial assets at amortized costs 35,766 — 35,766 Other long-term assets (Note 21) — 9 9 Financial assets measured at fair value — 9 9 Liabilities to banks 48,738 — 48,738 Lease liabilities 9,353 — 9,353 Rental purchase agreements 4,860 — 4,860 Trade and other payables 32,578 — 32,578 Financial liabilities at amortized costs 95,529 — 95,529 Special shares liabilities — 1,071 1,071 Other liabilities — 159 159 Financial liabilities measured at fair value — 1,230 1,230 Derivative financial instruments are measured at fair value and are recorded as a financial asset or financial liability depending on their fair value (positive or negative). Such fair value measurements are classified as level 2 of the fair value hierarchy of IFRS 13. Special Shares liabilities are measured at fair value based on estimations at each reporting date using a modified Black-Scholes-Merton option pricing model, taking into account the market conditions. Further details of the terms are disclosed in Note 30. Such fair value measurements are classified as level 3 of the fair value hierarchy of IFRS 13. There have been no transfers between levels of the fair value hierarchy used in measuring the fair value of financial instruments. Such transfers may occur where directly observable prices may become available or where market data from independent sources may no longer be available. There were no significant interrelationships between unobservable inputs that materially affect fair values. 18 The presentation of the prior year income statement of has been adjusted to reflect the new classification of transportation cost and FX gains & losses. For more information refer to note 3.20 of the consolidated financial statements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 122 8. Other Operating Income Other operating income is summarized in the overview below: Other operating income In Euro x 1,000 2024 2023 (Restated) 18 Income from insurance 118 1,328 Other own work capitalized 6,711 4,208 Personnel related operating income 968 913 Other operating income 872 2,595 Total other operating income 8,670 9,044 During 2024 the company did not receive any further proceeds from insurance relating to the St. Louis flooding (2023: €1,174,000), The company did however receive €118,000 which related to insurance proceeds in Germany. Other own work capitalized in both financial years relates to operational costs, such as personnel expenses, capitalized for in-house manufactured property and equipment, such as molds and assets related to recycle lines. The personnel related operating income amounting to €968,000 (2023: €913,000) and is primarily related to governmental subsidies for the employment of permanent staff, especially for social securities. The category other operating income of €872,000 (2023: €2,595,000) relates to gains on the sale of fixed assets amounting to €145,000, see Note 17, and further to the release of accruals from previous periods amounting to €431,000 (2023: €265,000). 9. Material Expenses / Expenses for Purchased Services Material expenses and expenses for purchased services are summarized in the overview below: Material expenses / expenses for purchased services In Euro x 1,000 2024 2023 (Restated)18 Change Cost of raw materials, consumables and supplements 68,216 74,172 -8% Cost of purchased services 12,346 14,774 -16% Transportation costs 5,594 4,380 28% Gas, Power, Water 13,664 13,280 3% Total material expenses / expenses for purchased services 99,820 106,606 -6% Material costs / expenses for purchased services include direct attributable costs, such as costs for raw materials and production- related materials, energy costs and purchased services. The latter are costs related to the external manufacturing of products and temporary employees, supporting the in-house production of finished goods. Purchased services, primarily external manufacturing costs in Europe, decreased whereas external production costs decreased in the US compared to the prior year, since we have our own internal production back on track as of the second half of 2023 after the flooding. The utilization of temporary staff to ensure a certain flexibility for extra capacity was reduced as well. 10. Personnel Expenses Personnel expenses are summarized in the overview below: Personnel expenses In Euro x 1,000 2024 2023 Change Salaries and wages 34,563 31,622 9% Social securities and other benefits 7,382 7,093 4% Other staff costs 3,288 3,306 -1% Share-based payment expense -324 545 -159% Total personnel expenses 44,910 42,566 6% The stock option programs are further elaborated in the section share- based payments program (see Note 27). During the year, Cabka N.V. released a part of the accrued stock options expense raised in prior years, which is the result of employees whom have left the company in 2024 and thereby have forfeited their right to the stock options. Personnel expenses increased by 6% compared to prior year. Included in the salaries and wages for 2024, were non operational restructuring costs related to employee severance packages totaling €0.7 million. The remaining increases were due to inflationary adjustments of labor costs and further strengthening our organization by filling key vacancies. While there were some declines in wage costs due to restructurings implemented, these savings were offset by the costs associated with termination packages. The average number of FTE in 2024 is 611 and represents a growth of 1% in the financial year compared to the previous year (2023: 603 FTEs). Reference is made to Note 6 for further disclosure on FTEs per segment and per department. 19 The presentation of the prior year income statement of has been adjusted to reflect the new classification of transportation cost and FX gains & losses. For more information refer to note 3.20 of the consolidated financial statements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 123 11. Other Operating Expenses Other operating expenses are summarized in the overview below: Other operating expenses In Euro x 1,000 2024 2023 (Restated) 19 Flood related expenses 53 1,006 Legal, audit and consulting fees 4,519 5,609 Repairs and maintenance 5,183 5,267 Transport expenses 8 20 Insurance and fees 2,943 2,605 IT services 1,959 1,900 Sales and promotion expenses 1,797 1,800 Car, travel and representation costs 2,002 1,561 Waste and disposal 2,889 2,021 Rental costs 1,379 1,279 Other costs 6,422 6,284 Other operating expenses 29,154 29,352 The flood-related expenses in 2024 relate to expenses for repairs of €53,000 (2023: €1,006,000). The category other costs in other operating expenses in 2024 mainly include expenses related to other taxes for real estate and city and province taxes €1,024,000 (2023: €971,000), medical & safety costs €1,013,000 (2023: €920,000), a dispute we currently have on a VAT position related to the IPO of 2022 amounting to €744,000, costs related to the small fire that occurred in our operating plant in Weira amounting to €557,000, recruiting and training costs €435,000 (2023: €475,000), board compensation fees €236,000 (2023: €224,000), R&D costs not capitalized of €108,000 and operations totaling €2,305,000 (2023: €2,609,000). In 2024, there were no further IPO related real estate transfer taxes included in other operating expenses (2023: €1,085,000). Legal, audit and consulting fees relate primarily to fees paid to freelancers of €1,004,000 (2023: €1,586,000), closing and audit fees of €902,000 (2023: €1,076,000). The remaining amount of €2,612,000 (2023: €2,418,000) includes, among other costs, consulting costs for legal, tax, ESG, investor relations and patents. When compared to the prior period, other operating expenses decreased by €198,000 during 2024. This decrease was primarily driven by the decrease in the flood-related expenses of € 953,000. 12. Finance Income Finance income is summarized in the overview below: Finance income In Euro x 1,000 2024 2023 (Restated)19 Changes in fair value of Special Shares liabilities 866 105 Interest income 447 203 Foreign exchange gain 551 279 Total finance income 1,864 587 The change in fair value of the Special Shares conversion option relates to the revaluation of this financial liability on the reporting date and is based on changes in the ordinary share price of Cabka N.V. Further details on the Special Shares and the conversion option are disclosed in Note 30. 13. Finance Expenses Finance expenses are summarized in the overview below: Finance expenses In Euro x 1,000 2024 2023 (Restated) Interest on debts and borrowings 3,484 3,353 Interest arising from revenue contracts 74 3 Interest on lease liabilities (IFRS 16) 256 218 Interest on rental purchase liabilities 163 33 Other interest and similar expenses 836 579 Foreign exchange loss 1,119 534 Total finance costs 5,932 4,720 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 124 Other interest and similar expenses contain the residual arrangement fee of the repaid financing as per the end of December 2024 as well as commitment fees and proportional arrangement fees for the syndicated loan. Further details and terms of the syndicated loan are included in note 30. 14. Income Tax Income tax expenses are summarized in the overview below: Income tax expenses reported in the statement of profit and loss In Euro x 1,000 2024 2023 Current income tax 408 1,573 Adjustments in respect of current income tax of previous year - -75 Deferred tax adjustments 3,223 -1,166 Income tax expenses reported in the statement of profit and loss 3,631 332 Total income tax paid in 2024 is €1,509,000 (2023: €1,222,000). The nominal tax rates and amount in 2024 are 19% up to an amount of €200,000 and 25.8% above €200,000. Reconciliation of tax expense and the accounting profit multiplied by the domestic tax rate for 2024 and 2023: Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate: In Euro x 1,000 2024 2023 Result before taxes -5,723 -1,209 Income tax expense at statutory tax rate (25.8%) 1,506 312 Effect tax free income 440 94 Non-deductible expenses for tax purposes -222 -267 Adjustments in respect of current income tax of previous years -33 75 Interest due to special balance of Cabka Group GmbH and Trade Tax 860 - Release of previously recognized deferred taxes on loss carry forwards -4,114 - Impact from the revaluation and previously unrecognized deferred taxes on tax loss carry forwards 338 1,128 Realization of carry forward losses in the Netherlands - 369 Current year losses for which no deferred tax asset is recognized -1,926 -1,877 Effect on temporary differences without recognized deferred taxes 190 451 Tax rate changes for deferred taxes - - Differences to local tax rates -671 -617 Income tax expense reported in the statement of profit or loss -3,631 -332 At the effective income rate of -63.45% -27.46% Critical judgements on Taxes Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Management’s judgement is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits, together with future tax planning strategies. Deferred tax assets are disclosed in Note 25. For 2024, the average nominal tax rate of an entity operating in the Netherlands is 25.8%. The group is in the process of assessing its exposure to the Pillar Two legislation for when it comes into effect. 15. Earnings per Share Generally, basic Earnings Per Share (EPS) is calculated by dividing the profit for the year attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated by dividing the profit attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares, such as the Roll- over shares (see note 27). Currently, there is no distinction at Cabka between basic and diluted EPS as there are no items that have a dilutive effect. The following table reflects the income and share data used in the basic and diluted EPS calculations: Earnings per share In Euro 2024 2023 Profit attributable to ordinary equity holders of the parent for basic and diluted earnings -9,354,956 -1,541,206 Weighted average number of ordinary shares for basic and diluted EPS 24,710,600 24,656,117 The weighted average number of shares were mainly impacted in 2023 by the issuance of new shares for the dividend payment, which was partially settled in shares and partially in cash. During 2024, no new shares were issued. The basic and diluted earnings per share in the financial year 2024 amounts to €-0.38 (in 2023: € €-0.06). About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 125 The following instruments were not included in the basic or diluted EPS (Note 31, 32). As the Group has incurred a loss for the financial year ended December 31, 2023, the effect of the instruments below are not included in determining diluted earnings per share as these would decrease the loss per share and hence create an anti-dilution effect. Therefore, diluted earnings per share equal basic earnings per share. Instrument Hurdle Number of Potential Ordinary Shares PSU EUR 11.00 146,545 PSU EUR 12.00 146,545 SPECIAL SHARES CONVERSION EUR 12.00 586,668 DSC2 WARRANTS EUR 12.00 880,000 IPSU EUR 13.00 146,545 DSC3 WARRANTS EUR 13.00 1,320,000 PERFORMANCE SHARES EUR 16.00 750,000 PERFORMANCE SHARES EUR 18.00 750,000 PERFORMANCE SHARES EUR 20.00 750,000 PSU and 450,000 of the Performance shares are additionally conditional upon service conditions for the eligible employees. 16. Intangible Assets The carrying value of intangible assets including among others software licenses in the item purchased intangible assets is summarized below: Intangible Assets at December 31 In Euro x 1,000 2024 2023 Goodwill - - Customer relationships - - Internally generated intangible assets 2,081 2,108 Purchased intangible assets 478 505 Assets under construction 158 200 Total intangible assets 2,718 2,813 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 126 The movement during the year for intangible assets is as follows: Intangible assets In Euro x 1,000 Customer Relationship Internally developed intangible assets Purchased intangible assets Assets under construction Total Historical Cost At January 1, 2023 150 244 5,366 - 5,760 Additions - 2,366 145 200 2,711 Disposals - - -24 - -24 Transfers - - - - - Currency translation - -9 - - -9 At December 31, 2023 150 2,601 5,487 200 8,438 Accumulated amortization and impairment At January 1, 2023 -120 -244 -4,709 - -5,072 Additions -30 -250 -297 - -577 Disposals - - 24 - 24 Transfers - - - - - Currency translation - 1 - - 1 At December 31, 2023 -150 -493 -4,982 - -5,625 Net book value At December 31, 2023 - 2,108 505 200 2,813 Intangible assets In Euro x 1,000 Customer Relationship Internally developed intangible assets Purchased intangible assets Assets under construction Total Historical Cost At January 1, 2024 150 2,601 5,487 200 8,438 Additions - 339 340 -42 637 Disposals - - - - - Transfers - - - - - Currency translation - 28 - - 28 At December 31, 2024 150 2,968 5,827 158 9,103 Accumulated amortization and impairment At January 1, 2024 -150 -493 -4,982 - -5,625 Additions - -388 -367 - -755 Disposals - - - - - Transfers - - - - - Currency translation - -6 - - -6 At December 31, 2024 -150 -886 -5,349 - -6,385 Net book value At December 31, 2024 - 2,081 478 158 2,718 Additions to internally developed assets refer primarily to product development costs. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 127 17. Property, Plant and Equipment The carrying value of property, plant and equipment is summarized below: Property, plant and equipment at December 31 In Euro x 1,000 2024 2023 Land, land rights and buildings 21,384 19,276 Technical equipment and machines 38,166 37,515 Other equipment, factory and office equipment 14,948 14,183 Prepayments on tangible assets and construction in process 9,439 9,820 Property, plant and equipment 83,937 80,794 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 128 The movement during the year for property, plant and equipment is as follows: Movement schedule of property, plant and equipment In Euro x 1,000 Land, land rights and buildings on third party land Technical equipment and machines Other equipment, factory and office equipment Assets under construction Total Historical Cost At January 1, 2023 30,465 114,964 62,235 18,961 226,625 Additions 4,317 8,046 5,333 11,484 29,180 Disposals -493 -7,765 -1,308 - -9,566 Transfers 1,942 15,544 2,261 -20,743 -996 Adjustment 953 7,287 -8,534 270 -24 Currency translation -177 -973 -392 -152 -1,694 At December 31, 2023 37,007 137,103 59,595 9,820 243,525 Accumulated depreciation And impairment At January 1, 2023 -15,431 -91,021 -51,223 -65 -157,740 Additions -1,424 -9,083 -4,230 - -14,737 Disposals 38 7,168 1,131 - 8,338 Transfers - - -15 - -15 Adjustment -952 -7,287 8,630 65 456 Currency translation 38 635 294 - 968 At December 31, 2023 -17,731 -99,587 -45,413 - -162,731 Net book value At December 31, 2023 19,276 37,516 14,183 9,820 80,794 Movement schedule of property, plant and equipment In Euro x 1,000 Land, land rights and buildings on third party land Technical equipment and machines Other equipment, factory and office equipment Assets under construction Total Historical Cost At January 1, 2024 37,007 137,103 59,595 9,820 243,525 Additions 3,340 9,698 5,363 -487 17,916 Disposals - - -296 - -296 Currency translation 482 2,173 745 105 3,506 At December 31, 2024 40,830 148,975 65,408 9,439 264,651 Accumulated depreciation And impairment At January 1, 2024 -17,731 -99,587 -45,413 - -162,731 Additions -1,632 -10,084 -4,756 - -16,473 Disposals - 146 288 - 434 Currency translation -83 -1,282 -580 - -1,944 At December 31, 2024 -19,446 -110,808 -50,461 - -180,715 Net book value At December 31, 2024 21,384 38,167 14,947 9,439 83,937 As of December 31, 2024, individual machines up to an amount of €2.2 million were assigned as collateral for liabilities to banks. The carrying amount of financial assets it has pledged as collateral for liabilities or contingent liabilities, including amounts that have been reclassified in accordance with paragraph 3.2.23(a) of IFRS 9, and the terms and conditions relating to the pledge. Further information is provided in the note financial liabilities (Note 34). In 2023, an accounting profit on the sale of land and equipment was realized for an amount of €1,356,000, primarily for the land sold in Genthin (Germany) and the divestment of the non-strategic PVC assets. Management performed a reassessment of the useful lives of assets in the Group and implemented this reassessment as of January 1, 2024. The impact for the 2024 financial year is assessed to be not material. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 129 18. Leases The Group has lease contracts for various items of land and buildings, plant, machinery, motor vehicles and other equipment used in its operations. Leases of land and buildings, plant, and machinery generally have lease terms between 3 and 15 years. Motor vehicles and other equipment generally have lease terms between 3 and 5 years. There are some lease contracts that include extension and purchase options. These are taken into account accordingly in the calculations. The Group also has certain leases with lease terms of 12 months or less and also with low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases. The carrying amounts of the right-of-use assets are summarized below: Right-of-use assets at December 31 In Euro x 1,000 2024 2023 Land and buildings 5,328 5,015 Technical equipment and machines 3,115 4,355 Other equipment, factory and office equipment 3,177 800 Total right-of-use assets 11,619 10,170 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 130 The movement during the year for the right-of-use is as follows: Movement schedule of right-of-use assets In Euro x 1,000 Land and buildings Technical equipment and machines Other equipment Total Historical Cost At January 1, 2023 5,193 7,279 1,025 13,497 Additions 2,088 943 448 3,479 Disposals - -1,179 -17 -1,196 Adjustment -349 14 -20 -355 Currency translation - -73 -15 -88 At December 31, 2023 6,932 6,984 1,421 15,337 Accumulated depreciation And impairment At January 1, 2023 -1,159 -3,209 -399 -4,768 Additions -898 -1,077 -255 -2,230 Disposals - 1,080 18 1,098 Adjustment 140 534 9 683 Currency translation - 43 7 50 At December 31, 2023 -1,917 -2,629 -620 -5,167 Net book value At December 31, 2023 5,015 4,355 800 10,170 Movement schedule of right-of-use assets In Euro x 1,000 Land and buildings Technical equipment and machines Other equipment Total Historical Cost At January 1, 2024 6,932 6,984 1,421 15,337 Additions 1,461 - 2,905 4,366 Disposals - - -198 -198 Adjustment - - - - Currency translation - 97 22 119 At December 31, 2024 8,393 7,081 4,150 19,624 Accumulated depreciation And impairment At January 1, 2024 -1,917 -2,629 -620 -5,166 Additions -1,149 -1,269 -535 -2,953 Disposals - - 194 194 Adjustment - - - - Currency translation - -68 -11 -79 At December 31, 2024 -3,066 -3,966 -973 -8,005 Net book value At December 31, 2024 5,327 3,115 3,177 11,619 The disposals in 2024 €198,000 and 2023 of €1,196,000 are primarily related to machines. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 131 The carrying amounts of lease liabilities and the movements during the period are set out below: Carrying amounts of lease liabilities and movements during the period In Euro x 1,000 2024 2023 As at January 1 9,353 7,340 Additions 4,391 4,265 Payments -3,198 -2,470 Interest 256 218 As at December 31 10,802 9,353 Current 3,654 2,349 Non-Current 7,148 7,004 The maturity analysis of lease liabilities is disclosed in the financial liabilities, Note 30. New lease liabilities in the financial year 2024 amounted to in total €4,391,000 (2023: €4,265,000). The following lease related expenses are recognized in profit or loss: Lease liabilities recognized in profit or loss In Euro x 1,000 2024 2023 Depreciation expense of right-of-use assets 2,956 2,230 Interest expense on lease liabilities 256 218 Expense relating to short-term leases / leases of low-value assets 1,667 1,166 Total amount recognized in profit or loss 4,879 3,614 The Group had total cash outflows for leases of €2,942,000 in 2024 (€2,470,000 in 2023), excluding short-term leases. The future lease payments for recognized lease contracts are €3,654,000 (2023: €2,349,000) within one year and €7,148,000 (2023: €7,004,000) thereafter. The Group has no lease contracts that have not yet commenced as at December 31, 2024. Extension and termination options are included in a number of property and equipment leases across the Group. These are used to maximize operational flexibility in terms of managing the assets used in the Group’s operations. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor. Incremental Borrowing Rate on Leases The Group applies the interest rate of the contract if applicable. In case of contracts, where the interest rate implicit in the lease cannot readily be determined, the Group uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The average IBR of all contracts in place as at December 31, 2024 is 1.78% (2023:1.94%). 19. Financial Assets Financial assets are summarized by maturity in the overview below: Financial assets by maturity at December 31 2024 2024 2024 2024 2023 In Euro x 1,000 < 1 year 1-5 years > 5 years Total Total Shares in affiliated companies - - 87 87 87 Shares in companies in which participations are held - - 3 3 3 Receivables to affiliated companies 5 20 - 25 21 Receivables to shareholders - 21 - 21 21 Financial assets 5 41 90 136 132 The shares in affiliated companies relate to shares in Cabka Verwaltungs GmbH, Weira, and Cabka Eco Products Verwaltungs GmbH (Weira), which are not included in the consolidation as they are individually and on aggregate not considered to be material for the Group. 20. Other Long-term Assets Other long-term assets relate to a purchased interest rate option with a nominal amount of €5,000,000 and an initial term of 5 years. The paid premium was recognized in other assets at the purchase date and will be adjusted according to its fair value at the reporting dates. At December 31, 2024, the fair value of this instrument was €0 (2023: €17,000). 21. Inventories Inventories are summarized in the overview below: Inventories at December 31 In Euro x 1,000 2024 2023 Raw material, consumables, and supplies 12,939 10,990 Work in process 5,474 5,737 Finished goods and merchandise 17,794 15,332 Inventories 36,208 32,058 Inventories include obsolete stock with a total impact of €501,000 (2023: €263,000) on the overall value in the reporting year. 22. Trade Receivables Trade receivables are summarized in the overview below: Trade receivables at December 31 In Euro x 1,000 2024 2023 Receivables from third-party customers 19,633 27,669 Allowance for expected credit losses (ECL) -91 -95 Trade receivables 19,542 27,574 Further information on the Expected Credit Loss (ECL) calculation is provided in Note 33. In 2024, Cabka N.V. entered into a non-recourse factoring agreement with a factory company for some of its affiliates. Under this agreement, the company sells its accounts receivable to the factor at a discount, and the factor assumes the credit risk associated with the receivables. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 132 As a result, the receivables are derecognized from the company's balance sheet upon transfer to the factor. As of December 31, 2024, the total amount of receivables transferred from the balance sheet under this agreement was €8.3 million. This arrangement has improved the company's liquidity position by providing immediate cash flow while mitigating the risk of debtor insolvency. The factoring fees and any discounts applied to the receivables are recorded as financing expenses in the income statement. 23. Other Short-term Assets Other short-term assets are summarized in the overview below: Other short-term assets at December 31 In Euro x 1,000 2024 2023 VAT 2,637 4,277 Receivables from employees 230 231 Energy taxes 1,888 1,744 Prepayments -87 557 Security deposit 176 151 Income tax 1,449 2,049 Accrued charges and other assets 2,775 3,600 Other short-term assets 9,067 12,609 The decrease in other short-term assets is primarily due to the a reduction in the VAT item within the short-term assets, following the release of a €744,000 VAT position that related to the IPO of 2022. The company still holds a remaining VAT position of €330,000, for which there still exists a level of uncertainty whether this would be recoverable. 24. Cash and Cash Equivalents Cash and cash equivalents are summarized in the overview below: Cash and short-term deposits at December 31 In Euro x 1,000 2024 2023 Cash at bank and on hand 4,388 7,252 Cash and cash equivalents 4,388 7,252 Within the cash at banks an amount of €5,000 (2023 €32,000) is held as security deposit. 25. Deferred Taxes Deferred taxes relate to the following financial items: Deferred taxes as at December 31 In Euro x 1,000 2024 2023 Deferred tax assets on Intangible assets - 52 Inventories - - Trade Receivables - - Provisions - 761 Contract liabilities -252 765 Financial liabilities 1,070 1,503 Losses available for offsetting against future taxable income 5,203 11,227 Deferred tax assets, gross 6,020 14,308 Offsetting with deferred tax liabilities -112 -6,341 Deferred tax assets reflected in statement of financial position, net 5,908 7,967 Deferred tax liabilities on Property, plant and equipment 142 5,340 Financial liabilities - 1,089 Deferred tax liabilities, gross 142 6,429 Offsetting with deferred tax assets -112 -6,341 Deferred tax liabilities reflected in statement of financial position, net 29 88 The Group has in total of €83,413,000 tax losses carried forward for which €33,978,000 (2023: €54,405,000) recognized tax losses carried forward and €49,435,000 unrecognized. Deferred tax assets for any unused tax losses are recognized to the extent that it is probable that taxable profit will be available against which the unused tax losses can be utilized. For this purpose, the Group has recognized deferred tax assets for the amount of €5,203,000 (2023: €11,227,000). Deferred tax assets have been recognized for tax losses resulting from Germany €32,568,000, Belgium €54,000 and the Netherlands €1,355,000. There are tax losses carried forward amounting to €2,074,000 which expire About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 133 within the following five years and €4,163,000 will expire after five years. The group has €79,553,000 for which the tax losses can be carried forward indefinitely. However, the amount of carry forward tax losses that can be utilized in one financial year can be restricted to a certain amount. At the time of publication of this report, the tax assessment for the US operation was not finalized yet. Hence, the numbers mentioned above are based on the US commercial result and not the fiscal result. Management reassessed the deferred tax asset which was accumulated in the US including the effects of the devastating flooding of 2022. The company adopts a conservative stance by only recognizing a deferred asset where there is a high degree of certainty regarding the future profits. Management decided based on the strict guidelines from IFRS and out of prudence to reduce the deferred tax asset accumulated in the US with an amount of €4,103,000. This adjustment has no impact on the fiscal position of the company as it aims for building a growing and profitable US operation. 26. Share Capital and Share Premium Share Capital: In 2024, in no additional shares were issued (2023: 334,787). The issued share capital of Cabka N.V. as at December 31, 2024 can be specified as follows: Cabka Share Capital Shares Nominal value Share capital ISIN (units) in EUR in EUR Ordinary shares in treasury 15,994,378 0.01 159,944 DSC2S / NL00150002R 5 Ordinary shares outstanding 24,710,600 0.01 247,106 CABKA / NL00150000S7 Total ordinary shares issued 40,704,978 407,050 Special Shares 97,778 0.01 978 Total shares issued 40,802,756 408,028 The 97,778 Special Shares are held by the Founders of DSC2 and are not publicly listed. These Special Shares have equal dividend and voting rights as ordinary shares. In accordance with the underlying terms, the Special Shares will either (i) convert into 7 ordinary shares if the share price of Cabka N.V. equals or exceeds €12.00 for any 15 trading days out of a 30 consecutive trading-day period (whereby such 15 trading days do not have to be consecutive) or (ii) convert into 1 ordinary share if this price hurdle is not achieved before March 1, 2027. This conversion option has been classified as a financial liability measured at fair value through profit or loss (FVTPL). The fair value of the financial liability as at December 31, 2024 amounts to €205,000 (2023: €1,071,000) (Note 30). For an overview of the ownership of the ordinary shares issued, we refer to Note 52 of the Company financial statements. Share premium: The share premium reserve of €73,995,000 (2023:€77,687,000) relates to contributions on issued shares in excess of the nominal value of the shares. The share premium is freely distributable, provided that equity is not lower than the sum of share capital and legal reserves as a result of such distribution. During the reporting period, the Group recognized the following amounts as distributions to owners: Dividends 2024 2023 Total dividends declared and paid value in EUR -3,706,590 -3,656,584 Dividends per share in EUR 0.15 0.15 These amounts are presented in the statement of changes in equity and the notes to the financial statements. Limitations in the distribution of shareholder’s equity A free distribution is restricted for the amount of capitalized internal development costs as carried on the consolidated statement of financial position. As at December 31, 2024 the amount of capitalized development costs as carried in the consolidated statement of financial position amounts to €2,081,000 (2023: €2,108,000) as further detailed in Note 48 of the Company Financial Statements of Cabka N.V., in which a legal reserve has been formed as required under Dutch Law. 27. Share-Based Payments PSU Plan Effective as of March 1, 2022, a performance share unit plan was adopted (the PSU Plan). The PSU Plan allows key employees a one-off award of performance share units (PSU) where each PSU covers (the value) of one ordinary share of Cabka N.V. Subject to the terms and conditions of the PSU Plan, vesting of the awarded PSUs will occur on different vesting dates subject to the performance condition being met. Performance conditions are market conditions of the quoted share price of Cabka reaching €11.00, €12.00 and €13.00 (hurdles) within five years’ time from the grant date. Once a hurdle is met, the PSU vest in three equal installments over a period of three years. The employee is then entitled to receive one ordinary share per PSU without any payment, provided that the employee is still employed at that time. When the hurdles are not achieved within 5 years, the option forfeits. The market conditions are achieved if the share price equals or exceeds the stated hurdles for any 15 trading days out of a 30 consecutive trading day period (whereby such 15 trading days do not have to be consecutive). There are no cash settlement alternatives. The Group accounts for the PSU as an equity-settled share-based payment. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 134 The fair value of the PSU is estimated at the grant date using a modified Black-Scholes-Merton option pricing model, considering the market conditions. The total fair value of the grant is recorded as a share-based payment expense over the estimated vesting period based on graded vesting. The vesting period was estimated based on the date of the highest probability that hurdles are met according to the option pricing model applied. No more grants under the PSU program will be issued. PS Finally, the former CEO was entitled to Performance Shares (PS) subject to the performance conditions being met. Performance conditions are market conditions of the quoted share price of Cabka reaching €16.00, €18.00 and €20.00 (hurdles). After the former CEO, Tim Litjens, stepped down as of October 1, 2024, all his PS rights were terminated without any vesting or payout. There are no cash settlement alternatives. The Group accounts for the PS as an equity-settled share-based payment. The fair value of the PS was estimated at the grant date in 2022 using a modified Black-Scholes-Merton option pricing model, considering the market conditions. The total fair value of the grant is recorded as a share-based payment expense over the estimated vesting period based on graded vesting. RSU Effective as of August 1, 2024, a restricted stock unit plan was adopted (the RSU Plan). Under the plan, eligible employees are granted RSUs, which represent a promise to deliver shares of the company's stock at a future date, subject to certain vesting conditions. The grant will be adjustable (from 0% to 130%) based on the job performance of the relevant participant. The adjustment of the grant will be determined after the vesting period of the stock options and/or RSUs based on the achievement of a cumulative three-year EBITDA target, which EBITDA target will be determined by the Supervisory Board. Accelerated vesting will be subject to the approval of the Supervisory Board and the Supervisory Board will have the right to overwrite and/or adjust any grant of stock options and/or RSUs. Participants will not be allowed to exercise stock options or sell shares received pursuant to the vesting of RSUs within the first 5 years following the date of grant. Non-vested stock options cannot be exercised and non-vested RSUs cannot be settled. If a participant leaves the Company, all granted but unvested stock options will be forfeited. There are no cash settlement alternatives. The Group accounts for the RSU as an equity-settled share-based payment. The fair value of the RSU is estimated at the grant date using a modified Black-Scholes-Merton option pricing model, considering the vesting conditions. The total fair value of the grant is recorded as a share-based payment expense over the estimated vesting period based on graded vesting. The vesting period was estimated based on the date of the highest probability that hurdles are met according to the option pricing model applied. As at December 31, 2024 (December 31, 2023), the Group recognized the following share-based payment expenses for the above-mentioned plans in the statement of profit or loss: Share- based payment expense In Euro x 1,000 2024 2023 VSOP - - PSU -101 380 PS -301 164 RSU 79 - Share-based payment expenses -324 545 Movements of equity-settled options during the year: Number of options RSU PS PSU Outstanding at January 1, 2024 - 450,000 439,637 Granted during the year 154,668 - 10,000 Forfeited during the year - -450,000 -177,853 Exercised during year - - - Outstanding at December 31, 2024 154,668 - 271,784 All option programs have an exercise price of zero. None of the options were exercisable as of December 31, 2024. The weighted average remaining contractual life of the option can be summarized as follows: Weighted average remaining contractual life of options in years 2024 2023 RSU 4.00 - PSU 4.34 6.26 PS - 3.25 The remaining contractual life of PSU options reflects the maximum possible contractual lifespan of 5 years for achieving the hurdles plus a consecutive 3-year vesting period. The PS options granted to the CEO have in principle no contractual life but were linked to a continuous employment clause. After the former CEO, Tim Litjens, stepped down all his PS rights were terminated. The weighted average fair values of options granted in 2024 and 2023 at the respective measurement dates are summarized as follows: Weighted average fair value of options at measurement date (in EUR) In Euro 2024 2023 VSOP - - RSU 2.00 - PSU 4.03 2.02 PS - - About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 135 The model inputs are summarized in the overview as follows: Model inputs 2024 2024 2023 PSU RSU PSU Model used Modified BS Modified BS Modified BS Measurement date January 1, 2024 August 1, 2024 June 8, 2023 Dividend yield (%) 2.46 - 2.35 Expected volatility (%) 31.00 30.00 32.00 Risk-free rate (%) 1.92 2.10 2.29 - 2.30 Expected life of options (years) 5.00 – 7.00 5.00 6.00 – 8.00 Underlying share price (€) €6.10 €3.58 €6.37 The expected life of the options is based on expectations at the measurement date, considering early exercise behavior generally observed for employees, and is not necessarily indicative of exercise patterns that may occur. The expected life of the PSU (2022) is less than the maximum contractual life. The expected life of the PSU 2023 & (2024) is equal to the maximum contractual life. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. Critical judgements on Share-based payments Estimating fair value for share-based payment transactions requires determination of the most appropriate valuation model, which depends on the terms and conditions of the grant. This estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the share option or appreciation right, volatility and dividend yield and making assumptions about them. 28. Other Reserves Other reserves comprise the warrant reserve, Performance Shares reserve and share-based payment (IFRS 2) reserve. These reserves are freely distributable provided that equity is not lower than the sum of share capital and legal reserves as a result of such distribution. The movement and breakdown of other reserves can be stated as follows: Other reserves In Euro x 1,000 Warrants Performance Shares Share-based payments Reserve for Cash Flow Hedges Total other reserves At January 1, 2023 3,282 3,449 4,304 - 11,035 Issue of performance shares (Note 28) - - 164 - 164 Roll-over of VSOP (Note 28) - - -3,817 - -3,817 Share-based payment expense PSU (Note 28) - - 380 - 380 At December 31, 2023 3,282 3,449 1,031 - 7,762 At December 2024 3,282 3,449 1,031 - 7,762 Issue of performance shares (Note 28) - - 68 - 68 Issue of RSU (Note 28) - - 79 - 79 Release of performance shares (Note 28) - - -370 - -370 Movement of PSU (Note 28) - - -101 - -101 Decrease of reserve cash flow hedges (Note 28) - - - -510 -510 At December 31, 2024 3,282 3,449 707 -510 6,928 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 136 Warrants: The Warrants automatically and mandatorily convert when the closing price of the Ordinary Shares of Cabka N.V. on Euronext Amsterdam reaches the respective minimum share price threshold (€12.00 / €13.00) for such Warrant on 15 trading days out of a 30 consecutive trading-day period (whereby such 15 trading days do not have to be consecutive), after which each corresponding Warrant converts into a number of Ordinary Shares based on the predetermined conversion ratio as further detailed below. As a consequence, a single Warrant cannot convert into an Ordinary Share, other than together with and at the same time as such a number of Warrants that, pursuant to the Warrant Conversion Ratio, entitles such Warrant Holder to a minimum of one Ordinary Share. Upon conversion of Warrants, the Warrant Holder will be charged €0.10 per Ordinary Share transferred to the Warrant Holder in return for his or her conversion of Warrants, of which €0.01 is required for payment of the nominal value of the Ordinary Share allotted following the conversion, and €0.09 will be added to the share premium reserve. Number of warrants Warrants (units) Conversion ratio Ordinary shares (units) Warrants for ordinary shares – hurdle € 12,00 1,833,334 0.24 880,000 Warrants for ordinary shares – hurdle € 13,00 1,833,334 0.36 1,320,000 Outstanding at December 31, 2023 3,666,668 2,200,000 Performance Shares: At initial listing, as agreed between all parties in the Business Combination Agreement, Cabka N.V. issued 1,800,000 “Performance Shares” to the former majority shareholder of Cabka Group GmbH. These Performance Shares have no dividend rights nor voting rights until they are converted into ordinary shares. For this reason, these performance shares are considered non-substantive rights. Conversion to ordinary shares of Cabka N.V. will only take place if the share price of Cabka N.V. equals or exceeds the following price hurdles for any 15 trading days out of a 30 consecutive trading-day period (whereby such 15 days trading do not have to be consecutive): • At €16.00 – 600,000 performance shares will automatically convert into an equal number of ordinary shares. • At €18.00 – 600,000 performance shares will automatically convert into an equal number of ordinary shares. • At €20.00 – 600,000 performance shares will automatically convert into an equal number of ordinary shares. The Performance Shares issued to the former majority shareholder of Cabka are classified as an equity instrument in accordance with IAS 32 as the Performance Shares issued do not contain a contractual obligation to (i) deliver cash or another financial asset, or (ii) to exchange financial assets or financial liabilities that are potentially unfavorable to the combined entity. The Performance Shares do also not contain an obligation for the entity to deliver a variable number of its own equity instruments, but relate to the exchange of a fixed amount of cash (zero) for a fixed number of the entity’s ordinary shares. The fair value of the Performance Shares at the grant date March 1, 2022 amounted to €3,449,200 and has been recorded in other reserves against share premium. The fair value of the Performance Shares is estimated at grant date using a modified Black-Scholes-Merton option pricing model, taking into account the market conditions. The fair value is not remeasured at each reporting date in accordance with IAS 32 requirements. 29. Foreign Currency Translation Reserve The foreign currency translation reserve of €-1,482,000 (2023: €-1,372,000) comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. This legal reserve is not freely distributable in accordance with Dutch law. 30. Financial Liabilities The contractual maturities of the Group’s financial liabilities are as follows: Financial liabilities split by remaining term on December 31, 2024 In Euro x 1,000 Current Non-current Total Special Shares liabilities 205 - 205 Liabilities to banks 31,961 30,000 61,961 Lease liabilities (IFRS 16) 3,654 7,148 10,802 Rental purchase liabilities 1,639 1,749 3,388 Others - - - Financial liabilities 37,460 38,897 76,357 The financial liabilities of the previous financial year can be summarized as follows: Financial liabilities split by remaining term on December 31, 2023 In Euro x 1,000 Current Non-current Total Special Shares liabilities 1,071 - 1,071 Liabilities to banks 16,446 32,292 48,738 Lease liabilities (IFRS 16) 2,349 7,005 9,354 Rental purchase liabilities 898 3,962 4,860 Others - - - Financial liabilities 20,764 43,259 64,023 To cover its financing needs, Cabka uses leasing, long-term loans and a syndicated loan which was renewed on December 15, 2023. The syndicated loan, with a consortium led by Commerzbank AG, has a total initial debt facility of €80,000,000 for four years. The facility includes extension options for up to two years as well as an option to increase the facility by an extra €20,000,000 for further financial flexibility. Borrowing costs are recognized under finance expenses in the consolidated statement of profit and loss disclosed in Note 13. As of December 31, 2024 €20,200,000 of the facilities were unused. The syndicated loan is unsecured and has an initial term of 4 years with a maturity in December 2027. Besides the syndicated loan there are About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 137 secured long-term loans of €2,292,000 (of which €1,667,000 is subordinated) with a maturity in December 2025. The weighted average interest rate at December 31, 2024 was 5.3% for liabilities to banks in EUR. The syndicated loan contains several financial covenants which have to be met at specific dates. In August 2024, Cabka successfully obtained a suspension of one covenant and an increase of another covenant until the end of Q2 2025. At reporting date, all agreed levels of the financial covenants were met. To reduce the interest rate risk, Cabka uses interest rate derivatives as disclosed in Note 33. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 138 Financial liabilities movements can be summarized as follows: Financial liabilities movements In Euro x 1,000 Liabilities to banks Lease liabilities Rental purchase liabilities Special shares liabilities Others Total At January 1, 2023 52,048 7,340 5,087 1,176 89 65,740 Cash outflows / repayments -3,310 -2,470 -2,727 - -89 -8,596 Additions - 4,483 2,500 - - 6,983 Fair value changes - - - -105 - -105 At December 31, 2023 48,738 9,353 4,860 1,071 - 64,022 At January 1, 2024 48,738 9,353 4,860 1,071 - 64,022 Cash outflows / repayments -2,292 -2,942 -1,472 - - -6,706 Additions 15,515 4,391 - - - 19,906 Fair value changes - - - -866 - -866 At December 31, 2024 61,961 10,802 3,388 205 - 76,357 Rental purchase liabilities and lease liabilities: The rental purchase liabilities result from agreements entered into for the acquisition of property, plant, and equipment based on deferred payments, for which the agreement includes the option to purchase the underlying asset. Because of this purchase option, the underlying assets are classified as owned assets under property, plant and equipment rather than right-of use assets. Similarly, the rental purchase liabilities are presented separately from regular lease liabilities. Additions in rental purchase liabilities totaling €0 (2023: €2,500,000) are cash inflows from sale of an asset. Lease liability additions of in total €4,391,000 (2023: €4,483,000) in the reporting year have a non-cash character. Special Shares liabilities: As detailed in Note 26, the Special Shares held by the Founders of DSC2 will either (i) convert into 7 ordinary shares if the share price of Cabka N.V. equals or exceeds €12.00 for any 15 trading days out of a 30 consecutive trading-day period (whereby such 15 trading days do not have to be consecutive) or (ii) convert into 1 ordinary share if this price hurdle is not being achieved before March 1, 2027. This conversion option has been classified as a financial liability measured at fair value through profit or loss (FVTPL). The fair value of the financial liability as at December 31, 2024 amounts to €205,000 (2023: €1,071,000). The fair value of the Special Shares liabilities are estimated at each reporting date using a modified Black-Scholes-Merton option pricing model, taking into account the market conditions. During 2024, a fair value gain of €866,000 (2023: €105,000) has been recorded in financial income (Note 12), which is the result of a lower ordinary share price of Cabka N.V. as at December 31, 2024. 31. Trade Payables, Other Liabilities and Contract Liabilities Trade payables and other liabilities are summarized in the overview below: Trade payables and other liabilities at December 31 In Euro x 1,000 2024 2023 Trade payables 29,037 32,578 Personnel related liabilities 3,553 3,861 Others 3,395 4,888 Total other liabilities 6,948 8,749 Trade payables and other liabilities 35,985 41,327 The category others relates to numerous other liabilities such as VAT and wage taxes. The contract liabilities are summarized in the overview below: Contract liabilities In Euro x 1,000 2024 2023 Received prepayments on contracts 240 511 Other contract liabilities 2,901 3,862 Total contract liabilities 3,141 4,373 Other contract liabilities relate to materials received at the Eco- Products-Business which were not yet processed for recycling. Therefore, according to IFRS 15, the received Eco materials which are included in stock as at the balance sheet date, are included as other contract liabilities. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 139 32. Provisions Provisions are summarized in the overview below: Provisions In Euro x 1,000 2024 2023 Provisions for sales and marketing 508 294 Remaining other provisions 278 544 Total provisions 786 838 The remaining other provisions include various smaller items, of which a part of the liability position is due to uncertain timing with regard to a specific customers, where returned pallets were received in exchange for new ones. Cabka sold pallets to the customer in the past with a product warranty clause. This could result in a future outflow of assets of which the timing is uncertain. No pallets have been received back under this warranty clause as at the reporting date. 33. Financial Instruments Risk Management Objectives and Policies The Group’s principal financial liabilities comprise liabilities to banks and trade and other payables. The main purpose of these financial liabilities is to finance the Group’s operations. The Group’s principal financial assets include trade receivables, and cash and cash equivalents that derive directly from its operations. The Group also enters into derivative transactions. The Group is exposed to market risk, credit risk and liquidity risk. The Group’s senior management oversees the management of these risks. The Group’s senior management is supported by specialists who advise on financial risks and the appropriate financial risk governance framework for the Group. This includes appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Group’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialists who have the appropriate skills, experience and supervision. It is the Group’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense is denominated in a foreign currency). Cabka uses derivative financial instruments such as forwards and swaps to safeguard its foreign currency risk exposure. Derivatives are measured at fair value and are generally recognized in profit or loss. On December 31, 2024, Cabka had foreign exchange derivatives outstanding with a nominal amount of €36,132,000 (2023: €14,034,000). At December 31, 2024, the fair value of these instruments was €-390,000 (2023: €325,000). Foreign currency sensitivity The impact on the Group’s profit after tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives. The main foreign exchange risk results from changes in the value of the USD relative to the EUR. If the foreign currencies would have risen against the EUR by 10%, the post-tax loss for the year would have been €55,000 higher (2023: €199,000 higher). The opposite applies in the case of a weakening of these foreign currencies relative to the euro of 10%. Interest rate risk The Group is exposed to interest rate risk. Cabka uses interest rate swaps and options to economically hedge the interest rate risk. On December 31, 2024, Cabka had outstanding interest rate derivatives for a nominal amount of €30,000,000. If the interest rates at December 31, 2024 would have been 100bps higher, the interest expenses would have been €198,000 higher (2023: €202,000 higher). If the interest rates at December 31, 2024 would have been 100bps lower, the interest expenses would have been €227,000 lower (2023: €202,000 lower.) refer to Note 20 and 31. The Fair value of the interest rate derivatives would have been €96,000 higher, if the interest rates at December 31, 2024 was 100bps higher, impacting OCI by €96,000. The opposite applies in the case of a 100 bps decrease in the interest rates. Derivatives are only used for economic hedging purposes and not as speculative investments. The full fair value of hedging derivatives is classified as a non-current asset or liability where the remaining maturity of the hedged item is more than 12 months. On December 31, 2024 the fair value included under other non current liabilities was €510,000 (2023: nil). The ineffective portion of the derivative is deemed insignificant. Market risk The market risk is the risk of the deterioration of the Group’s income due to movements in market prices, such as those relating to exchange rates and interest rates. The aim of the management of market risk exposure is to keep the market risk position within acceptable limits. Derivatives are used to manage specific market risks. These transactions are carried out within the Group’s treasury framework. Liquidity risk The Group has implemented group- wide daily cash reporting and monitors its liquidity with a rolling liquidity forecast. Funding contains long-term loans and lease contracts as well as short-term loans within the syndicated loan to maintain the necessary financial flexibility. The syndicated loan facility matures in December 2027 and contains certain financial covenants. If the financial covenants are not met at the reporting dates, the banks have the right to request repayment of the outstanding loans. Further details of the credit facilities are provided in Note 30. The following tables show the undiscounted future contractual cash flows from financial liabilities at December 31, 2024 and 2023 including contractual interest payments: About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 140 Contractual cashflow of financial liabilities 2024 In Euro x 1,000 Net book value Current < 1 year Non-current between 1 and 5 years Non-current > 5 years Total Liabilities to banks 61,961 33,912 33,189 - 67,101 Lease liabilities (IFRS 16) 10,802 3,915 6,658 1,211 11,784 Rental purchase agreement 3,388 1,639 1,749 - 3,388 Trade payables 29,037 29,037 - - 29,037 Total 105,189 68,503 41,596 1,211 111,310 Contractual cashflow of financial liabilities 2023 In Euro x 1,000 Net book value Current < 1 year Non-current between 1 and 5 years Non-current > 5 years Total Liabilities to banks 48,738 18,400 37,423 - 55,823 Lease liabilities (IFRS 16) 9,353 2,588 6,152 1,673 10,413 Rental purchase agreement 4,860 898 3,962 - 4,860 Trade payables 32,578 32,578 - - 32,578 Total 95,529 54,464 47,537 1,673 103,674 Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables). Capital management The Management Board’s policy is designed to maintain a strong capital gearing to retain the confidence of investors, creditors and the markets, and to safeguard the future development of the business activities. The Management Board monitors the return on equity and the level of dividend distributed to ordinary shareholders. Trade receivables Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to customer credit risk management. Creditworthiness of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables and contract assets are regularly monitored and any shipments to major customers are generally covered by letters of credit obtained from reputable banks and other financial institutions. An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due for categories of various customer segments with similar loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by letters of credit or other forms of credit insurance). The calculation reflects the probability- weighted outcome, the time value of money, and reasonable and supportable information that is available at the reporting date about past events, current conditions, and forecasts of future economic conditions. Generally, trade receivables are written-off if past due for more than one year and are not subject to enforcement activity. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 7. The Group does not hold collateral as security. The letters of credit and other forms of credit insurance are considered integral part of trade receivables and considered in the calculation of impairment. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 141 Information about the credit risk exposure on the Group’s trade receivables using a provision matrix is provided below: Trade receivables overview at December 31, 2024 (Days past due) In Euro x 1,000 Current < 30 days 30 – 60 days 60+ days Total Receivables outstanding 2,938 6,032 6,380 4,283 19,633 Expected credit loss rate 0.34% 0.33% 0.31% 0.95% 0.46% Expected credit loss allowance 10 20 20 41 91 For the previous year this is summarized as follows: Credit risk exposure on the Group’s trade receivables Trade receivables overview at December 31, 2023 (Days past in due) In Euro x 1,000 Current < 30 days 30 – 60 days 60+ days Total Receivables outstanding 22,583 4,139 549 398 27,670 Expected credit loss rate 0.09% 0.48% 3.64% 8.78% 0.34% Expected credit loss allowance 20 20 20 35 95 The probability of default for trade receivables was determined on the basis of actual historical bad debt losses. Actual historical bad debt losses are considered on the basis of individual companies. The expected probability of default is less than 1%. An expected loss in the amount of €91,000 (2023: €95,000) was recognized. Additionally no individual impairments for 2024 (2023: €116,000) were recognized for trade receivables where actual circumstances lead to a high probability of default. For other financial assets such as other receivables and deposits, the assumption is applied that no expected credit loss is required. Due to low credit risk, the expected credit losses are deemed not significant. Commodity price risk The Group is exposed to energy price changes which are managed using forward contracts. The Group manages other exposures to prices of raw materials and other materials associated with off-take through commercial contracting. Without the hedges in place, if wholesale energy prices would have increased by 10%, the post-tax loss for the year would have been €1,353,000 higher (2023: €1,328,000). The opposite applies in the case of a decrease in the wholesale energy prices by 10% in the year under review. Climate risk and the impact of extreme weather events Climate change and the subsequent increase in the frequency of extreme weather events can potentially impact Cabka’s infrastructure and business activities. This risk materialized at our North American entity in St. Louis in August 2022, when an extraordinary flooding event caused severe damage to our production facility. Furthermore, Valencia saw a devastating flood in October 2024. While this event did not directly impact Cabka’s Innovation Center, it did affect some of our employees and has underscored the need for adequate risk management. To prevent and mitigate such incidents in the future and to further integrate this risk in financial and strategic planning, a comprehensive scenario analysis of physical climate risks was conducted in 2024 for each one of Cabka’s manufacturing locations as well as for the Innovation Center. Fraud and non-compliance The Management of Cabka N.V. is aware of the inherent risk of fraud that it faces, both internally and externally, in carrying out its activities. External parties must be able to trust that Cabka N.V. and its employees do business in a reliable, honest and careful manner. Therefore, Cabka N.V. has drawn up a code of ethics that is shared with every employee at the start of their employment. The importance of the code of ethics and compliance is periodically emphasized and is a subject of discussion between manager and employee. In addition, a separate suppliers code of conduct is available so that external suppliers’ actions are in line with those of Cabka. A confidential advisor and tipline, including a whistleblower policy where any abuses can be reported confidentially, have been implemented. The code of ethics, suppliers code of conduct and the whistleblower are available on our website and are therefore also shared with our external relations. Cabka N.V. has measures in place to significantly reduce its exposure to fraud. An important measure is the restriction of access (both physical and digital) for individuals to only those areas where they perform their day-to-day activities, and segregation of duties (SoD) so that important checks and balances are not combined within the same person. Both the user access and SoD are reviewed and adjusted to be in line with the risk appetite if situations change. A significant number of general IT controls around user access and SoD have been designed. Cabka continues to address and improve the design and effectiveness of its IT controls. In addition to the foundation of access management and SoD, Cabka also has an authorization matrix to clearly define the responsibilities and authorization limits for each function within the company. This ensures that only the authorized employees are involved when information is processed or decisions are made with a certain level of (fraud) risk. Despite all internal control measures, there remains the risk of management or the board overriding internal controls and the risk of collusion between employees. Transparent decision-making, the governance structure, an open culture in which we dare to call each other to account, the presence of a confidential advisor to report non- ethical actions to (anonymously), and periodic internal and external About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 142 audits on compliance, are measures that must contribute to detecting instances of overriding controls. Conclusion Management is of the opinion that, taking into account all procedures and control measures, the risk assessment provides a complete overview of the risks the company faces and that adequate procedures are in place to mitigate these risks. 34. Commitments and Contingencies Commitments The Group has no lease contracts that have not yet commenced as at December 31, 2024. Since Cabka is offering a buyback clause for pallets sold to specific customers, where the raw material cost price is determined at fair market prices, there is a potential obligation for Cabka to buy these returned pallets. If this occurs, it will be treated as material expense in the consolidated statement of comprehensive income. Legal claim contingency There are no legal claims and contingencies outstanding that could have a material impact on the Group. Guarantees The only guarantees provided are to wholly-owned subsidiaries within the Group. In connection with our rental agreements, we have issued rental guarantees to secure our obligations. As of the reporting date, the total value of these rental guarantees amounted to €0.5 million. Pledges In connection to liabilities to banks, individual machines have been pledged as collateral. As of the reporting date, the total value of these pledged assets amounts to €2.2 million. Non-Recourse Factoring Agreement In 2024, Cabka N.V. entered into a non-recourse factoring agreement with a factory company for Cabka GmbH & Co. KG and Cabka N.V., Ieper and Cabka Belgium N.V. in Belgium. Under this agreement, the company sells its accounts receivable to the factor at a discount, and the factor assumes the credit risk associated with the receivables. As a result, the receivables are derecognized from the company's balance sheet upon transfer to the factor. This arrangement has improved the company's liquidity position by providing immediate cash flow while mitigating the risk of debtor insolvency. The factoring fees and any discounts applied to the receivables are recorded as financing expenses in the income statement. 35. Related Party Balances and Transactions/ Disclosures The following table provides the total amount of non- eliminated transactions with related parties for 2024 and 2023. Transactions between consolidated Group companies are eliminated in the consolidation and therefore not disclosed. Related parties 2024 In Euro x 1,000 Sales to related parties Purchases from related parties Amounts owed by related parties Amounts owed to related parties Entity with significant influence over the Group RAM.ON Finance GmbH - 539 21 - DSC Executive Directors Holding B.V. - - - - Brandaris Capital - - - - Entities under Common Directorship RAM.ON Real Estate GmbH - 578 - - Oceansix GmbH - 300 - - Gat & Heike Ramon 2 5 1 - About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 143 Related parties 2023 In Euro x 1,000 Sales to related parties Purchases from related parties Amounts owed by related parties Amounts owed to related parties Entity with significant influence over the Group RAM.ON Finance GmbH - 580 - - DSC Executive Directors Holding B.V. - - - - Brandaris Capital - 6 - - Entities under Common Directorship RAM.ON Real Estate GmbH - 442 - - Oceansix GmbH 3 63 1 1 Gat & Heike Ramon 2 - 2 - Transactions with related parties that are outside the Group are classified as trade receivables and trade payables, respectively (see Notes 22 and 31). The sales to and purchases from related parties are made on terms aiming to be equivalent to transactions at arm’s length. Outstanding balances at year end are unsecured and interest free and settlement occurs in cash. No guarantees have been provided or received for any related party receivables or payables. On November 1, 2017, Cabka Group GmbH entered into a rental agreement for the office in Berlin with Ram.on real estate GmbH for a period of 10 years of which the total fees amounted to €378,000 in 2024. Cabka Spain S.L.U. also has a rental agreement with Ram.on real estate GmbH for the office building in Valencia commencing June 5, 2022 for 10 years, with total fees in the fiscal year amounting to €200,000. Both agreements are presented in the Balance Sheet under Right-of-Use assets (Note 18). In addition to the above-mentioned agreements, there is a consultancy agreement between Cabka N.V. (NL) and Ram.ON finance GmbH as of March 1, 2022 for four years, covering services for high-level strategic consulting with regard to the future corporate strategy and positioning of Cabka in the market using the special expertise of the consultant. The fees amount to €539,000 in the reporting year. An additional leasing agreement with Oceansix GmbH on extruders was entered in 2023 with a total expense of €300,000 recorded in the current financial year. In addition to the related party transactions as disclosed above, the Group has issued several equity instruments to shareholders and key management employees during the year ended December 31, 2024. Further details of these transactions are provided in Note 26 (Share Capital and Share Premium), Note 27 (Share-Based Payments), Note 28 (Other Reserves) and Note 30 (Financial Liabilities). Compensation and share ownership of key management personnel and the Supervisory Board of the Group For further disclosure of the compensation of key management personnel and the Supervisory Board of the Group, we refer to Note 51 of the Company financial statements. For further disclosure of share ownership, we refer to Note 52 of the Company financial statements. 36. Events After the Reporting Date After the balance sheet date of December 31, 2024, there have been no significant events. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 144 Company Financial Statements Company Statement of Profit and Loss for the year ending on December 31, 2024 and 2023 In Euro x 1,000 NOTES 2024 2023 Intercompany head office and other recharges 39 3,144 6,062 Total operating income 3,144 6,062 Personnel expenses 39 -1,202 -1,501 Depreciation and amortization -132 -11 Other operating expenses 40 -3,415 -2,992 Total Operating expenses -4,749 -4,504 Finance income 41 6,626 1,047 Finance expenses 42 -3,736 -72 Net Financial Result 2,890 975 Result before taxes 1,284 2,533 Income taxes 54 334 -501 Share of result in subsidiaries after income taxes -10,973 -3,573 Net result after income taxes -9,355 -1,541 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 145 Company Statement of Financial Position as at December 31, 2024 and 2023 IN EUR x 1,000 NOTES 2024 2023 ASSETS Non-current assets Property, plant and equipment 41 — Investments in subsidiaries 43 18,999 30,069 Deferred tax assets 54 353 19 Right-of-use assets 435 293 Total non-current assets 19,828 30,381 Current assets Short-term financial assets 44 99,903 79,365 Other Short-term assets 44 2,281 2,341 Cash and cash equivalents 45 19 2,752 Total current assets 102,203 84,458 Total assets 122,030 114,839 LIABILITIES Equity Share capital 46 408 408 Treasury shares 46 -160 -160 Share premium 47 73,995 77,687 Other reserves 48 6,928 7,762 Legal reserve 48 2,081 2,108 Retained earnings 50 -25,027 -15,696 Foreign currency translation reserve 49 -1,482 -1,372 Total equity 56,745 70,737 IN EUR x 1,000 NOTES 2024 2023 Non-current liabilities Long-term financial liabilities 53 30,286 30,218 Other non-current liabilities 53 510 — Total non-current liabilities 30,796 30,218 Current liabilities Short-term financial liabilities 53 29,699 8,757 Trade payables 53 178 767 Other short-term liabilities 53 4,612 4,360 Total current liabilities 34,489 13,884 Total liabilities 122,030 114,839 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 146 Notes to the Company Financial Statements 37. Corporate Information Cabka N.V. is a listed public company which is registered with the Chamber of Commerce Amsterdam under number 80504493. As of March 1, 2024, the Company moved its registered office to John M. Keynesplein 10, 1066 EP, Amsterdam, The Netherlands (previously at Johan Cruijff Boulevard 65-71, 1101 DL Amsterdam, The Netherlands). The company financial statements, together with the consolidated financial statements, are part of the statutory financial statements of Cabka N.V. (the Company). The financial information of the Company is included in the consolidated financial statements. 38. Basis of Preparation In selecting the principles applied in the company financial statements for the valuation of assets and liabilities and determination of results, Cabka N.V. has made use of the option provided by Section 362, subsection 8, of Book 2 of the Dutch Civil Code. Consequently, the principles applied in the Company financial statements of Cabka N.V. for the valuation of assets and liabilities and determination of results (the ‘accounting policies’) are identical to those applied in the consolidated EU-IFRS financial statements. These policies are discussed in Note 3 of the consolidated financial statements. In addition, to the accounting policies described in the consolidated financial statements, the Company applies the accounting policies below. Investments in subsidiaries Group companies are all entities over which the Company has direct or indirect control. The Company controls an entity when it is exposed, or has rights, to variable returns from its involvement with the group companies and has the ability to affect those returns through its control over the group companies. Group companies are recognized from the date on which control is obtained by the Company and derecognized from the date that control by the Company over the group company ceases. Investments in subsidiaries are measured according to the net asset value method. If the net asset value method is used, newly acquired subsidiaries are initially measured based on the fair value of their identifiable assets and liabilities at the acquisition date. For subsequent valuations, the principles that apply for these financial statements are used, with the values upon their initial recognition as the basis. If the valuation of a subsidiary based on the net asset value is negative, it will be stated at nil. Any long-term, subordinated receivables which qualify as net investment in the subsidiary are impaired up to an amount equal to the negative net asset value. If the recoverable amount of the receivables is lower than their book value, the receivables are further impaired. If the company fully or partly guarantees the liabilities of such an underlying entity, a provision is formed, comprising primarily the receivables from the subsidiary, plus the company’s share of the losses incurred by the subsidiary or the amount the company might be obliged to pay on behalf of the subsidiary, all to the extent greater than the receivables. 39. Personnel Expenses and Head Office Charges The personnel expenses during the year relate to the following: Personnel expenses In Euro x 1,000 2024 2023 Wages and salaries 1,417 895 Social security charges 101 46 Share-based payment expense -324 545 Other costs of personnel 8 15 Personnel expenses 1,202 1,501 In the financial year 2024, the average number of FTEs was 8 and in the previous year 4. The details of directors’ compensation are presented in Note 51. Part of the costs to Management Board members are incorporated in the overview above. Intercompany head office and other charges totaling €3,144,000 (2023: €6,062,000) include management services provided by the parent company to the affiliates. The amount in 2023 refers to service provided for the period March 1, 2022 to Dec 31, 2022 of in total €2,423,000 and from January 1, 2023 to Dec 31, 2023 of in total € 3,639,000. Share-based payments expenses in the Company financial statements include the expenses for PS and PSU of the reporting year. Further details of the share-based payment expenses are disclosed in Note 27 of the consolidated financial statements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 147 40. Other Operating Expenses Other operating expenses during the year relate to the following: Other operating expenses In Euro x 1,000 2024 2023 Legal, audit and consulting fees 1,935 2,309 Supervisory Board fees 236 246 Other operating expenses 1,244 437 Other operating expenses 3,415 2,992 Other operating expenses include primarily legal, audit and consulting fees, such as for investor relations, ESG and the statutory audit. In 2024, it also includes costs associated with other taxes and non-recoverable VAT, totaling €744,000. With reference to Section 2:382a of the Dutch Civil Code, the following fees were charged to the Company, its subsidiaries and other consolidated entities by BDO Audit & Assurance B.V. and its member firms and affiliates in 2024 and in 2023: 2024 2024 2024 2023 2023 2023 In Euro x 1,000 BDO NL Other BDO network firms Total BDO NL Other BDO network firms Total Auditor of financial statements 521 255 776 550 289 839 Other assurance services 137 - 137 28 - 28 Non- assurance services - - - - - - Fees to the auditor 658 255 912 578 289 867 The fees listed above relate to the services provided to the Company by accounting firms and external independent auditors as referred to in Section 1 (a) of the Dutch Accounting Firms Oversight Act (wta). The other assurance services relates to CSRD limited assurance engagement. 41. Finance Income Finance income of €6,626,000 (2023: €1,047,000) relates to the fair value change of the Special Shares conversion option for the amount of €866,000 (2023: € €105,000) as further detailed in Note 46 (Share Capital) and Note 53 (Financial Liabilities) of the Company financial statements. Of the remaining amount, € 5,760,000 relates to interest received on intercompany loans receivable, the FX gain amounting to €446,000 and €144,000 relating to interest received from banks. 42. Finance Expense Finance expense of €3,736,000 (2023: €72,000) relates to interest on bank liabilities. 43. Investments in Subsidiaries This relates to the Company’s wholly-owned interest in Cabka Group GmbH, Berlin, Germany. A complete overview of subsidiaries that are indirectly held by Cabka N.V. through its wholly-owned interest in Cabka Group GmbH is presented in Note 5 of the consolidated financial statements. The movement of the investments in subsidiaries balance can be specified as follows: Investment in subsidiaries In Euro x 1,000 At January 1, 2023 33,370 Share in result of subsidiaries -3,573 Foreign currency translation differences 166 Other movements 106 At December 31, 2023 30,069 At January 1, 2024 30,069 Share in result of subsidiaries -10,973 Foreign currency translation differences -109 Other movements 12 At December 31, 2024 18,999 There were no changes in the ownership of subsidiaries during 2024. 44. Short-term Financial and Other Assets Short-term financial assets relate to receivables owed by Group Companies and can be specified as follows: Short-term financial assets In Euro x 1,000 2024 2023 Receivable on Cabka Group GmbH 62,621 78,301 Receivable on Cabka North America 37,281 - Receivable on Cabka Spain S.L.U. - 1,064 Short-term financial assets 99,903 79,365 The receivables owed by Group companies have a maturity of 12 months and bear an interest rate of 5.7%. The receivable on Cabka North America, should be seen as non-current. No securities were obtained. Current financial assets relates to intercompany loans. Other short-term assets include VAT receivables totaling €1,298,000, thereof €330,000 is related IPO costs, of the recoverability is uncertain. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 148 45. Cash and Cash Equivalents Cash and cash equivalents of €19,000 (2023: €2,752,000) consist of cash at bank balances. The cash and cash equivalents are freely disposable for Cabka N.V. 46. Share Capital As at December 31, 2024, the authorized capital of Cabka N.V. consists of 150,000,000 ordinary shares and 300,000 Special Shares, of which 24,710,600 ordinary shares and 97,778 Special Shares were issued. A total number of 15,994,378 ordinary shares are held in treasury, the remaining shares our outstanding. The ordinary shares are listed on the Euronext Stock Exchange. The Special Shares issued to the Founders of the Company are not publicly listed. The issued share capital as at December 31, 2024 can be specified as follows: Share Capital Shares Nominal value Share capital ISIN (units) In Euro In Euro Ordinary shares in treasury 15,994,378 0.01 159,944 DSC2S / NL00150002R 5 Ordinary shares outstanding 24,710,600 0.01 247,106 CABKA / NL00150000S7 Total ordinary shares issued 40,704,978 407,050 Special Shares 97,778 0.01 978 Total shares issued 40,802,756 408,028 The Special Shares have equal dividend and voting rights as ordinary shares. In accordance with the underlying terms, the Special Shares will either (i) convert into 7 ordinary shares if the share price of Cabka N.V. equals or exceeds €12.00 for any 15 trading days out of a 30 consecutive trading-day period (whereby such 15 trading days do not have to be consecutive) or (ii) convert into 1 ordinary share if this price hurdle has not being achieved before March 1, 2027. This conversion option has been classified as a financial liability measured at fair value through profit or loss (FVTPL). The fair value of the financial liability as at December 31, 2024 amounts to €205,000 (2023: €1,071,000) (Note 53). The issued share capital as at December 31, 2023 can be specified as follows: Share Capital Shares Nominal value Share capital ISIN (units) In Euro In Euro Ordinary shares in treasury 15,994,378 €0.01 €159,944 DSC2S / NL00150002R 5 Ordinary shares outstanding 24,710,600 €0.01 €247,106 CABKA / NL00150000S7 Total ordinary shares issued 40,704,978 €407,050 Special Shares 97,778 €0.01 €978 Total shares issued 40,802,756 €408,028 Further details of outstanding Warrants as at December 31, 2024 are disclosed in Note 28 of the consolidated financial statements. 47. Share Premium The share premium reserve of €73,995,000 (2023: €77,687,000) relates to contributions on issued shares in excess of the nominal value of the shares. The share premium is freely distributable, provided that equity is not lower than the sum of share capital and legal reserves as a result of such distribution. 48. Other and Legal Reserves Other reserves of €6,928,000 (2023: €7,762,000) comprise the Warrant reserve, Performance Shares reserve and Share-based Payment reserve. These reserves are freely distributable provided that equity is not lower than the sum of share capital and legal reserves as a result of such distribution. Further details on the composition and movement of the other reserves is disclosed in Note 28 of the consolidated financial statements. In conformity with the Dutch Civil Code, a legal reserve is recognized for the carrying amount of internally developed capitalized cost for the design of tools, molds, and dies involving new technology. The total legal reserve for research & developments as per 31 December 2024 amounts to €2,081,000 (2023: €2,108,000). 49. Foreign Currency Translation Reserve The foreign currency translation reserve of €-1,482,000 comprises all foreign currency differences arising from the translation of the financial statements of foreign operations (2023: €-1,372,000). This legal reserve is not freely distributable in accordance with Dutch law. 50. Equity Overview As at December 31, 2024, the shareholders’ equity in the Company financial statements equals the equity attributable to common shareholders as presented in the consolidated financial statements for a total of €56,745,000 (2023: €70,737,000). Pursuant to Dutch law, limitations exist relating to the distribution of equity attributable to equity holders. Such limitations relate to the share capital and legal reserves (including foreign translation reserve) required by Dutch law as presented below. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 149 In Euro x 1,000 Share capital Share premium Treasury shares Other and legal reserves Foreign currency translation reserve Retained earnings Non- Controlling interests Total equity At January 1, 2023 405 75,125 -164 11,035 -1,533 -12,139 - 72,729 Loss for the year - - - - - -1,541 - -1,541 Other comprehensive income/(loss)- exchange difference - - - - 166 - - 166 Other comprehensive income/(loss) - - - - - - - - Total comprehensive income/(loss)- for the year - - - - 166 -1,541 - -1,375 Transactions with owners of the Company Other movements of the year - 15 - - -5 92 - 102 Reclass from VSOP roll-over - 3,681 - - - - - 3,681 Increase of PSU and PS 3 - - 544 - - - 547 Decrease from VSOP roll-over - - - -3,817 - - - -3,817 Decrease of treasury shares at nominal value 0.01 Euro - - 4 - - - - 4 Dividends to equity holders - -1,219 - - - - - -1,219 Sale of treasury shares - 85 - - - - - 85 Forming of legal reserve - - - 2,108 - -2,108 - - Total transactions with owners of the Company 3 2,562 4 -1,165 -5 -2,016 - -617 At December 31, 2023 408 77,687 -160 9,870 -1,372 -15,696 - 70,737 Loss for the year - - - - - -9,355 - -9,355 Other comprehensive income/(loss) - - - - -109 - - -109 Other comprehensive income/(loss)- cash flow hedges - - - -510 - - - -510 Total comprehensive income/(loss)- for the year - - - -510 -109 -9,355 - -9,975 Transactions with owners of the Company Decrease of share based payments - - - -324 - - - -324 Dividends to equity holders - -3,707 - - - - - -3,707 Other movements of the year - 15 - - - -2 - 12 Forming of legal reserve - - - -27 - 27 - - Total transactions with owners of the Company - -3,692 - -350 - 24 - -4,018 At December 31, 2024 408 73,995 -160 9,009 -1,481 -25,027 - 56,745 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 150 51. Remuneration The remuneration of current Management Board members charged to the Company and Group companies, including pension expenses as referred to in Section 383, subsection 1, of Book 2 of the Netherlands Civil Code, amounted to €965,000 (2023: €1,079,000). Management board The remuneration is as follows: Remuneration Management board 2024 In Euro x 1,000 Fixed remuneration RSU expenses PSU expenses PS expenses Other compen- sation Total T. Litjens 365 - - - 17 382 A . Masharov 150 11 - - 14 175 F. Roerink 320 23 9 - 29 381 N. Küpcü - - 28 - - 28 Total 835 33 37 - 60 965 Remuneration Management board 2023 In Euro x 1,000 Fixed remuneration VSOP expenses PSU expenses PS expenses Other compen- sation Total T. Litjens 451 - 131 164 11 757 F. Roerink 285 - 5 - 11 301 N. Küpcü 19 - 2 - - 21 Total 755 - 138 164 22 1,079 The Management Board has no pension plan and therefore no separate column for post-employment benefits is included in the above tables. In 2024, a total of 20,949 RSUs were granted to A. Masharov and a total of 44,692 RSUs to F. Roerink. Supervisory board The total remuneration of current and former Supervisory Board members in 2024 amounts to €241,000 (2023: €246,000). Total overview of remuneration per Supervisory Board member for 2024 and 2023: Remuneration Supervisory board Fixed remuneration Variable remuneration 2024 2023 In Euro x 1,000 Membership Committees Travel and other expenses Total remuneration Membership Committees Total remuneration M. Beja 33 6 - 39 48 3 51 G. Ramon 32 6 4 43 38 3 41 N. Hoek 41 3 - 44 35 3 38 T.P. Henkin 32 3 - 35 35 3 38 J. Holscher 32 6 - 38 38 3 41 S. Nanninga 32 3 - 35 35 3 38 O. Seidl 4 1 - 6 - - - Total 207 30 5 241 229 16 246 The current Supervisory Board of Cabka N.V. was appointed by the General Meeting on March 1, 2022. The majority shareholder RAM.ON GmbH (managed by the founder of Cabka Gat Ramon and Heike Ramon) has a consultancy agreement with Cabka for services as disclosed in the Shareholder Circular for a total fee of €529,000. The fixed compensation for the Chair of the Supervisory Board was increased as of April 1, 2023 and was set at €42,600 per year. The other Supervisory Directors receive a fixed compensation of €31,950 per year. The Supervisory Directors receive an additional €3,195 in case of membership of the Audit Committee and €3,195 in case of membership of the Remuneration and Nomination Committee. In addition, members of the Supervisory Board are entitled to a reimbursement for daily and travel expenses of an amount of up to €2,662.50 per year. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 151 52. Share Ownership The issued ordinary shares are divided as follows: Share ownership shares % shares RAM.ON Finance GmbH 12,178,528 49.28% DSC Executive Directors Holding BV - -% Eikenbosch Holding BV 1,054,285 4.27% Miscellaneous C.V. 405,495 1.64% De Vaart der Volkeren C.V. 405,495 1.64% Free Float 9,183,801 37.17% Brandaris Capital 516,989 2.09% LindeSpac 471,980 1.91% Oaklins BV 494,027 2.00% Total shares outstanding 24,710,600 100% Potential dilution of the total number of issued ordinary shares can be triggered at the following thresholds (Note 27, 28 of the consolidated financial statements) • VSOP, former performance share program for the management: maximum of 385,022 shares on March 15, 2023 • Share price of €11: maximum of 190,471 shares resulting from PSU current performance share program for the management • Share price of € 12: maximum of 190,471 shares resulting from PSU; DSCW2 warrants conversion into maximum of 880,000 shares; and conversion of remaining one third of Special Shares converting into 684,446 shares: • Share price of € 13: maximum of 190,471 shares resulting from PSU; and DSCW3-warrants conversion into maximum of 1,320,000 shares • Share price of € 16: 750,000 shares from Performance Shares. • Share price of € 18: 750,000 shares from Performance Shares. • Share price of € 20: 750,000 shares from Performance Shares. As disclosed in Note 27 of the consolidated financial statements, two- thirds (respectively T. Litjens 250,013 shares and N. Küpcü 27,502 shares) of the former VSOP program was rolled over into real shares with a lock up period of 1 year ending March 1, 2023. The roll-over shares were physically transferred to the members of the Management Board on March 15, 2023. The share ownership of the Supervisory Board as of December 31, 2024 and 2023 is as in the table below: Share ownership Supervisory Board In Ordinary Shares 2024 2023 M. Beja - - G. Ramon 12,178,528 12,119,106 N. Hoek 516,989 462,996 T.P. Henkin - - J. Holscher - - S. Nanninga 471,980 431,980 Total 13,167,497 13,014,082 53. Financial Liabilities, Trade Payables and Other Short-Term Liabilities The financial liabilities during the year relate to the following: Financial liabilities at December 31 2024 2024 2024 2023 In Euro x 1,000 < 1 year > 1 year Total Total Special Shares liabilities 205 - 205 1,071 Liabilities to banks 29,333 30,000 59,333 37,612 Liabilities for leasing 161 286 446 292 Other non- current liabilities - 510 510 - Liabilities to Group companies 3,497 - 3,497 3,547 Liabilities to tax authorities 721 - 721 609 Accruals 63 - 63 99 Trade payables 226 - 226 766 Others 284 - 284 105 Financial liabilities 34,489 30,796 65,285 44,101 Special Shares liabilities: As detailed in Note 26 of the consolidated financial statements, the Special Shares held by the Founders of DSC2 will either (i) convert into 7 ordinary shares if the share price of Cabka N.V. equals or exceeds €12.00 for any 15 trading days out of a 30 consecutive trading-day period (whereby such 15 trading days do not have to be consecutive) or (ii) convert into 1 ordinary share if this price hurdle is not being achieved before March 1, 2027. This conversion option has been classified as a financial liability measured at fair value through profit or loss (FVTPL). The fair value of the financial liability as at December 31, 2024 amounted to €205,000 (2023: €1,071,000). About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 152 Liabilities to Group Companies: Liabilities to affiliated companies are IPO-related expenses charged from Cabka Group GmbH to the parent company. Other non-current liabilities: Other non-current liabilities relates to derivatives. Derivatives are only used for economic hedging purposes and not as speculative investments. The full fair value of hedging derivatives is classified as a non-current asset or liability where the remaining maturity of the hedged item is more than 12 months. On December 31, 2024 the fair value included under other non current liabilities was €510,000 (2023: nil). 54. Deferred Taxes Deferred tax assets for an amount of €353,000 (2023: €19,000) were recognized in respect of the utilization of all tax losses for the prior years with a remaining amount of € €1,355,00 (2023: €73,000). This resulted in €334,000 higher deferred taxes compared to the previous year, recorded in the company statement of profit and loss. 55. Commitments Cabka N.V. has a joint liability for long-term loans of Cabka Group GmbH. for an amount of €2,291,000 (2023: €4,583,000). 56. Post-Balance Sheet Events After the balance sheet date of December 31, 2024, there have been no significant events. 57. Appropriation of Result The Management Board of the Company proposes, with the approval of the Supervisory Board, that the result for the financial year 2024 should be transferred to reserves. Management and Supervisory Board statement The members of the Supervisory Board signed the financial statements in order to comply with their statutory obligation pursuant to Article 2:101, paragraph 2, of the Dutch Civil Code. The members of the Management Board signed the financial statements in order to comply with their statutory obligation pursuant to Article 2:101, paragraph 2, of the Dutch Civil Code and Article 5:25c, paragraph 2 sub c, of the Financial Markets Supervision Act. Amsterdam, 14 April 2025 Management BoardSupervisory Board A. MasharovN. Hoek F. RoerinkG. Ramon T.P. Henkin J. Holscher S. Nanninga O. Seidl (interim member) About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 153 Other Information 154 Provisions in the Articles of Association governing the appropriation of profit 155 Independent Auditor’s Report 161 Assurance Report ESG A Day in the Life of a Pallet The Seasoned Traveler After fulfilling its purpose at the retail store, the pallet is collected and returned to the distribution center for reuse. Over time, it becomes a seasoned traveler, visiting bustling warehouses, quiet storage rooms, and busy retail floors. Each trip adds to its story, and it proudly bears the marks of its adventures. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 154 Provisions in the Articles of Association Governing the Appropriation of Profit Under article 32.1 and 32.2 of the Articles of Association of the Company, the Management Board shall, with the approval of the Supervisory Board, determine which part of the profits is added to the reserves. The profit remaining after transfer to the reserves is available to the General Meeting of Shareholders. The Management Board, with the approval of the Supervisory Board, shall make a proposal for that purpose. A proposal to pay dividend shall be dealt with as a separate agenda item at the General Meeting. The Company can only make payments to the shareholders and other parties entitled to the distributable profit insofar as the shareholders’ equity exceeds the paid-up and called- up part of the capital plus the statutory reserves and exceeds the amounts resulting from the distribution test, performed by the Management Board at the date of each dividend payment. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 155 Independent Auditor’s Report To: the shareholders and supervisory board of Cabka N.V. Report on the audit of the financial statements 2024 included in the annual report Our opinion We have audited the financial statements for the year ended 31 December 2024 of Cabka N.V. based in Amsterdam (Netherlands). The financial statements comprise the consolidated financial statements and the company financial statements. In our opinion: • the accompanying consolidated financial statements give a true and fair view of the financial position of Cabka N.V. as at 31 December 2024 and of its result and its cash flows for 2024 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 accompanying company financial statements give a true and fair view of the financial position of Cabka N.V. as at 31 December 2024 and of its result for 2024 in accordance with Part 9 of Book 2 of the Dutch Civil Code. The consolidated financial statements comprise: 1. the consolidated statement of financial position as at 31 December 2024; 2. the following statements for 2024: the consolidated income statement, the consolidated statements of comprehensive income, changes in equity and cash flows; and 3. the notes comprising material accounting policy information and other explanatory information. The company financial statements comprise: 1. the company balance sheet as at 31 December 2024; 2. the company profit and loss account for 2024; and 3. the notes comprising a summary of the accounting policies and other explanatory information. Basis for our opinion We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the ‘Our responsibilities for the audit of the financial statements’ section of our report. We are independent of Cabka N.V. in accordance with the EU Regulation on specific requirements regarding statutory audit of public-interest entities, the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (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 for Professional Accountants). We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Material uncertainty related to going concern We draw attention to ‘Basis of preparation: Going Concern’ section per note 2 on page 107 of the financial statements and to the section ‘Going concern’ in the management report on page 32 which indicates that management acknowledges the existence of a material uncertainty on the continuation of the credit facility that may cast significant doubt on the Group’s ability to continue as a going concern. This uncertainty includes the high likelihood of breaching covenants in the upcoming year and the ongoing discussions with the banks on how this will be resolved. Our opinion is not modified in respect of this matter. The key assumption and estimate of the board's measures to address the conditions that indicate the existence of a material uncertainty on the continuation of the credit facility that may cause reasonable doubt on the entity's going concern assumption (hereinafter: ‘going concern risks’) is as follows: • to successfully obtain waivers from the banks in case of another breach in the upcoming year. The company is currently in discussion with the banks about this, but with an uncertain outcome at the date of issuing the financial statements. Other assumptions and estimates of the board's measures to improve future years performance of the group are the following: • to reduce costs by its Cost Optimization initiative plan, the so-called ‘SHIFT’ plan in order to stabilize the company’s net debt via balancing the cash inflow and outflow; • to improve revenues by boosting group sales as a result of strengthening its sales forces, combined with exploring and collaborating strategic partnerships; • to strengthen group’s balance sheet, combined with the other aforementioned measurements. In order to assess the appropriateness of the going concern assumption applied by the board for the period of twelve months from the date of preparation of the financial statements, which included evaluation of the effectiveness of the board's measures to adequately mitigate the identified going concern risk and the adequacy of the related disclosures, we have, carried out the following audit procedures: • Undertaking an initial assessment as part of the planning stage to identify events or conditions that may cast significant doubt on the group’s ability to continue operating as a going concern; • Obtaining an understanding of relevant controls in place relating to the going concern assessment and the operating effectiveness of these controls; • Considering whether the Management Board's going concern assessment contains all relevant information that we have knowledge of, as a result of our audit and inquired the board on key assumptions and estimates; • Evaluating the budgeted operating results and related cash flows for the period of twelve months from the date of preparation of the financial statements considering developments in the industry, other external factors and our knowledge from the audit; • Reviewing the sensitivity analyses conducted by the board regarding the expected outcomes of these measures for the acceptability of applied scenarios; About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 156 • Analyzing whether the current and necessary financing to be able to continue all the business activities is secured, including compliance/ projected compliance with relevant covenants; • Obtaining information from the board about its knowledge of going concern risks beyond the period of the going concern assessment carried out by the board; • Evaluating the implications of recent political, economic and climate change events; • Evaluating the potential risk of non-compliance for relevant laws & regulations; • We evaluated the adequacy of disclosures made in the financial statements in respect of going concern. We have assessed whether the notes to the financial statements adequately describe the going concern risks and uncertainties, the measures taken by the board to mitigate them and the underlying most relevant assumptions and estimates. We believe the disclosures as included in the ‘Basis of preparation: Going Concern’ section per note 2 on page 107 of the financial statements and to the section ‘Going concern’ in the management report on page 32 in which the board has stated the conditions that indicate the existence of a material uncertainty on the continuation of the credit facility that may cause reasonable doubt on the entity's going concern assumption are sufficient. Information in support of our opinion We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The following information in support of our opinion was addressed in this context, and we do not provide a separate opinion or conclusion on these matters. Materiality Based on our professional judgement we determined the materiality for the financial statements as a whole at € 2.7 million. The materiality is based on a benchmark of revenues (representing 1.5% of reported revenues) which we consider to be one of the principal considerations for members of the company in assessing the financial performance of the group. We have also taken into account misstatements and/or possible misstatements that in our opinion are material for the users of the financial statements for qualitative reasons. We agreed with the Supervisory Board, in particular with the Audit Committee, that misstatements in excess of € 135,000, which are identified during the audit, would be reported to them, as well as smaller misstatements that in our view must be reported on qualitative grounds. Scope of the group audit Cabka N.V. is at the head of a group of components. The financial information of this group is included in the financial statements of Cabka N.V. This year, we applied the revised group auditing standard in our audit of the financial statements. The revised standard emphasizes the role and responsibilities of the group auditor. The revised standard contains new requirements for the identification and classification of components, scoping, and the design and performance of audit procedures across the group. As a result, we approached audit coverage differently in the design of our audit approach in accordance with the revised group auditing standard. We performed risk assessment procedures throughout our audit to determine which of the components are likely to include risks of material misstatement to the financial statements. Within our audit, components are determined based on the risk profile and size of the entities within the group. To appropriately respond to those assessed risks, we planned and performed further audit procedures. We have performed audit procedures on the following components: Cabka N.V., Cabka GmbH & Co. KG, Cabka N.V. (Belgium), Cabka Spain S.L.U., Cabka North America Inc. and Cabka Group GmbH. The determined audit procedures are performed by the group engagement team as well as component audit teams for components based in Germany, Belgium and Spain. We have performed audit procedures for 84% of revenues and 87% of total assets. At group level, we assessed the aggregation risk in the remaining financial information and concluded that there is less than reasonable possibility of a material misstatement. By performing the procedures mentioned above at components, together with additional procedures at group level, we have been able to obtain sufficient and appropriate audit evidence about the group’s financial information to provide an opinion on the financial statement. Audit approach fraud risks We identified and assessed the risks of material misstatements of the financial statements due to fraud and non-compliance with laws and regulations. During our audit we obtained an understanding of the entity 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 fraud risks and monitoring the system of internal control and how the supervisory board exercises oversight, as well as the results thereof. We refer to section Financial instruments risk management objectives and policies in Note 33 for management’s fraud risk assessment for further details. We evaluated the design and relevant aspects of the system of internal control and in particular the fraud risk assessment, as well as among others the code of conduct, whistle blower procedures and incident registration. We evaluated the design and the implementation and, where considered appropriate, tested the operating effectiveness, of internal controls designed to mitigate fraud risks. We have communicated significant deficiencies in internal control in writing to management and the supervisory board. As part of our process of identifying risks of material misstatements of the financial statements due to fraud, we evaluated fraud risk factors with respect to fraudulent financial reporting, misappropriation of assets and bribery and corruption. We evaluated whether these fraud risk factors indicate that a risk of material misstatement due fraud is present. We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit procedures and evaluated whether any findings were indicative of fraud or non-compliance. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 157 We considered available information and inquired with relevant executives, directors and the Audit Committee. Our audit procedures did not lead to indications for fraud potentially resulting in material misstatements. The fraud risks identified by us and the specific procedures performed are as follows: RISK OF MANAGEMENT OVERRIDE OF CONTROLS Description Management is in a unique position to perpetrate fraud because management is able to manipulate accounting records and prepare fraudulent financial statements by overriding controls that otherwise appear to be operating effectively. Therefore, in all our audits, we pay attention to the risk of management override of controls at: • Journal entries and other adjustments made throughout the year and during the course of preparing the financial statements; • Consolidation adjustment entries; • Estimates and estimation processes; • Significant transactions outside the ordinary course of business. More specific, for Cabka we have identified a fraud risk in the revenue recognition, for which we refer to the next fraud risk in this paragraph. Our audit approach and observations: In response to the assessed fraud risk, our audit procedures included, amongst others, the following: • Where relevant for the audit, we evaluated the design and implementation of internal control measures in the processes for preparation of the financial statements, generating and processing journal entries/elimination entries and making estimates, assuming a risk of management override of controls of that process. • We have selected manual journal entries based on risk criteria, such as, journal entries in revenue recognition. We performed substantive audit procedures on these. • We have tested the material adjustment entries done in the consolidation by obtaining underlying documentation. • We have performed audit procedures on management estimates, including the processes related to these estimates. • We evaluated the notes to the financial statements. Our audit procedures did not reveal any specific indications of fraud or suspicions of fraud in respect of management override of controls, potentially resulting in material misstatements. RISK OF FRAUDULENT FINANCIAL REPORTING DUE TO OVERSTATEMENT OF REVENUES Description We addressed the risk of fraud in revenue recognition. This relates to the presumed management incentive that exists to overstate revenue. The majority of the Group’s revenue relates to the sale of goods, which is recorded at the time that control over the goods transfers to the customer. For the majority of sales transactions this is when the products are leaving the Group’s warehouse. Revenues from the rendering of services are recorded in the period in which the services are performed. Since such services generally take a short period of time, this is usually at completion of the service. Considering the above, there is limited risk of management manipulation. Rather, the risk of fraud in revenue recognition is focused on the cut-off of revenue and accounting of revenue in the appropriate accounting period as well as the risk of inappropriate manual journal entries. Our audit approach and observations: For the audit work performed in response to the assessed fraud risk, we refer to the key audit matter ‘revenue recognition’, as set out in the section ‘Our key audit matters’ of this report. Our audit procedures did not reveal any specific indications of fraud or suspicions of fraud in respect of fraudulent financial reporting due to overstatement of revenues, potentially resulting in material misstatements. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 158 Our key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements. We have communicated the key audit matters to the Audit Committee. The key audit matters are not a comprehensive reflection of all matters discussed. REVENUE RECOGNITION Description During the year ended 31 December 2024, the group recognised revenue from contracts with customers amounting to € 181.9 million relating to sales of goods and services as disclosed in Note 6. The Group’s management focuses on revenue as a key driver by which the performance of the Group is measured. This area is a key audit matter due to revenue being the most significant item in the financial statements. Also Cabka has several large customers and therefore a few extensive contracts are related to a large number of transactions. We have identified the existence of revenues as a significant risk and identified a risk that revenues may be overstated through pre-mature revenue recognition or fictitious revenues as a result of management override in order to meet market and shareholders’ expectation. As set out in section ‘Audit approach fraud risks’ of this report, the risk of fraud in revenue recognition is focused on the cut-off of revenue and accounting of revenue in the appropriate accounting period as well as the risk of inappropriate manual journal entries. Our audit approach: Our audit procedures included, amongst others: • Evaluating the revenue recognition policies for all material streams of revenue, as well as significant customer contracts, to ensure these were in accordance with IFRS 15 Revenue from Contracts with Customers. • Evaluating the design and implementation of the Group’s internal control measures relating to the recognition of revenue. • Performing detailed substantive testing of revenue by vouching a sample of sales invoices to supporting records of goods dispatched or services rendered and authorized sales contracts. • Verifying the existence of outstanding accounts receivable positions as at year-end with customer confirmations and by subsequent cash collection tests. • Obtaining and evaluating credit notes issued during the year, and subsequent to year-end, and performing cut- off testing to ensure revenue transactions have been recorded in the correct reporting period. • Performing specific manual journal entry testing procedures, such as assessing write-offs of trade debtors other than cash receipts. • Assessing the adequacy of the disclosures in the financial statements relating to revenues (Note 6). Based on the audit procedures performed, we have not identified any material findings. DEVELOPING CONTROL ENVIRONMENT Description With the listing of Cabka as of the 1st of March 2022, Cabka started a process of developing their internal control environment as well as their IT general controls in order to mature and reach a higher level of control that fits with being a listed company. In 2022 BDO has noted that the control environment of Cabka had not yet fully matured, which resulted in the identification of a risk related to the design, implementation, and operational effectiveness of the (IT general) controls. Last year, we noted several improvements within the group, however we noted that there is still room for further improvement in developing the internal control environment mainly in North America. Our audit approach: Our audit approach included an assessment of the controls that management relies on for financial reporting through an interim audit. The purpose of our interim audit was to assess the level of the internal control environment of Cabka. IT specialists were involved in testing IT general controls for Cabka. Procedures included assessing the complexity of the IT environment, evaluating the design and implementation of general controls over program development and changes, access to programs and data, and IT operations. We have seen continuous progress in the development of the internal control environment of Cabka on group level and in Europe but believe that there is still room for further improvement mainly in North America. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 159 Report on the other information included in the annual report In addition to the financial statements and our auditor’s report thereon, the annual report contains other information that consists of: • About Us • How We Create Value • Our Impact in 2024 • Governance and Risk • Sustainability Statement • Other information as required by Part 9 of Book 2 of the Dutch Civil Code • Supplementary Information Based on the following procedures performed, we conclude that the other information: • is consistent with the financial statements and does not contain material misstatements; • contains all the information regarding the management report and the other information as required by Part 9 of Book 2 of the Dutch Civil Code as well as the information as required by Sections 2:135b and 2:145 sub-Section 2 of the Dutch Civil Code for the remuneration report. We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2, Section 2:135b sub-Section of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements. Management is responsible for the preparation of the other information, including the management report in accordance with Part 9 of Book 2 of the Dutch Civil Code and other information as required by Part 9 of Book 2 of the Dutch Civil Code. Management is also responsible for the preparation of the remuneration report in accordance with Sections 2:135b and 2:145 sub-Section 2 of the Dutch Civil Code. Report on other legal and regulatory requirements and ESEF Engagement We were engaged by the General Meeting as auditor of Cabka N.V. on 12 April 2022, as of the audit for financial year 2022 and have operated as statutory auditor ever since that financial year. No prohibited non-audit services We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. European Single Electronic Format (ESEF) Cabka N.V. has prepared its annual report in ESEF. The requirements for this are set out in the Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (hereinafter: the RTS on ESEF). In our opinion, the annual report prepared in XHTML-format, including the (partly) marked-up consolidated financial statements as included in the reporting package by Cabka N.V., complies in all material respects with the RTS on ESEF. Management is responsible for preparing the annual report including the financial statements in accordance with the RTS on ESEF, whereby management combines the various components into one single reporting package. Our responsibility is to obtain reasonable assurance for our opinion whether the annual report in this reporting package complies with the RTS on ESEF. We performed our examination in accordance with Dutch law, including Dutch Standard 3950N 'Assurance-opdrachten inzake het voldoen aan de criteria voor het opstellen van een digitaal verantwoordingsdocument' (assurance engagements relating to compliance with criteria for digital reporting). Our examination included among others: • obtaining an understanding of the entity's financial reporting process, including the preparation of the reporting package; • identifying and assessing the risks that the annual report does not comply in all material respects with the RTS on ESEF and designing and performing further assurance procedures responsive to those risks to provide a basis for our opinion including: ◦ obtaining the reporting package and performing validations to determine whether the reporting package containing the Inline XBRL instance document and the XBRL extension taxonomy files have been prepared in accordance with the technical specifications as included in the RTS on ESEF; ◦ examining the information related to the consolidated financial statements in the reporting package to determine whether all required mark-ups have been applied and whether these are in accordance with the RTS on ESEF. Description of responsibilities regarding the financial statements Responsibilities of management and the Supervisory Board for the financial statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error. As part of the preparation of the financial statements, management is responsible for assessing the company’s ability to continue as a going concern. Based on the financial reporting frameworks mentioned, management should prepare the financial statements using the going concern basis of accounting, unless management either intends to About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 160 liquidate the company or to cease operations, or has no realistic alternative but to do so. Management should disclose events and circumstances that may cast significant doubt on the company’s ability to continue as a going concern in the financial statements. The supervisory board is responsible for overseeing the company’s financial reporting process. Our responsibilities for the audit of the financial statements Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material misstatements, whether due to fraud or error, during our audit. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion. 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 included among others: • identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining audit evidence that is sufficient 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 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 effectiveness of the entity’s internal control; • evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management; • concluding on the appropriateness of management’s use of the going concern basis of accounting, and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the entity’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 financial 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. However, future events or conditions may cause a company to cease to continue as a going concern; • evaluating the overall presentation, structure and content of the financial statements, including the disclosures; and • evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We are responsible for planning and performing the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the financial statements. We are also responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We bear the full responsibility for the auditor's report. We communicate with the supervisory board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit. In this respect we also submit an additional report to the audit committee in accordance with Article 11 of the EU Regulation on specific 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 supervisory board with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with the supervisory board, we determine the key audit matters: those matters that were of most significance in the audit of the financial statements. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, not communicating the matter is in the public interest. Amstelveen, 14 April 2025 For and on behalf of BDO Audit & Assurance B.V., sgd. drs. J.F. van Erve RA About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 161 Limited assurance report of the independent auditor on the sustainability statement To: the shareholders and Supervisory Board of Cabka N.V. Our conclusion We have performed a limited assurance engagement on the consolidated sustainability statement for 2024 of Cabka N.V. based in Amsterdam (hereinafter: the company) in section Sustainability Statements of the accompanying annual report including the information incorporated in the sustainability statement by reference (hereinafter: the sustainability statement). Based on our procedures performed and the assurance evidence obtained, nothing has come to our attention that causes us to believe that the sustainability statement is not, in all material respects, • prepared in accordance with the European Sustainability Reporting Standards (ESRS) as adopted by the European Commission and in accordance with the double materiality assessment process carried out by the company to identify the information reported pursuant to the ESRS; and • compliant with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation). Basis for our conclusion We have performed our limited assurance engagement on the sustainability statement in accordance with Dutch law, including Dutch Standard 3810N, ‘Assurance-opdrachten inzake duurzaamheidsverslaggeving’ (Assurance engagements relating to sustainability reporting) which is a specified Dutch standard that is based on the International Standard on Assurance Engagements (ISAE) 3000 (Revised) ‘Assurance engagements other than audits or reviews of historical financial information’. Our responsibilities in this regard are further described in the section ‘Our responsibilities for the limited assurance engagement on the sustainability statement’ of our report. We are independent of Cabka N.V. in accordance with the ‘Verordening inzake de onafhankelijkheid van accountants bij assurance- opdrachten’ (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 for Professional Accountants). The ViO and VGBA are at least as demanding as the International code of ethics for professional accountants (including International independence standards) of the International Ethics Standards Board for Accountants (the IESBA Code). We believe that the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Emphasis of matter Emphasis on the most significant uncertainties affecting the quantitative metrics and monetary amounts We draw attention to section Basis for Preparation in the sustainability statement that identifies the quantitative metrics and monetary amounts that are subject to a high level of measurement uncertainty and discloses information about the sources of measurement uncertainty and the assumptions, approximations and judgements the company has made in measuring these in compliance with the ESRS. The comparability of sustainability information between entities and over time may be affected by the lack of historical sustainability information in accordance with the ESRS and by the absence of a uniform practice on which to draw, to evaluate and measure this information. This allows for the application of different, but acceptable, measurement techniques, especially in the initial years. Emphasis on the double materiality assessment process We draw attention to section Cabka’s Materiality Assessment Process in the sustainability statement. This disclosure explains future improvements in the ongoing due diligence and double materiality assessment process, including robust engagement with affected stakeholders. Due diligence is an on-going practice that responds to and may trigger changes in the company’s strategy, business model, activities, business relationships, operating, sourcing and selling contexts. The double materiality assessment process may also be impacted in time by sector-specific standards to be adopted. The sustainability statement may not include every impact, risk and opportunity or additional entity-specific disclosure that each individual stakeholder (group) may consider important in its own particular assessment. Our conclusion is not modified in respect of these matters. Comparative information not subject to assurance procedures No reasonable or limited assurance procedures have been performed on the sustainability statement of prior year. Consequently, the other comparative information in the sustainability statement and thereto related disclosures for the year ended 31 December 2023 has not been subject to reasonable or limited assurance procedures. Our conclusion is not modified in respect of this matter. Limitations to the scope of our assurance engagement In reporting forward-looking information in accordance with the ESRS, the Management Board of the company is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the company. The actual outcome is likely to be different since anticipated events frequently do not occur as expected. Forward-looking information relates to events and actions that have not yet occurred and may never occur. We do not provide assurance on the achievability of this forward-looking information. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 162 In the sustainability statement, references are made to external sources or websites. The information on these external sources or websites is not subject to our limited assurance procedures for the sustainability statement. We therefore do not provide assurance on this information. Our conclusion is not modified in respect of this matter. Responsibilities of Management Board and the Supervisory Board for the sustainability statement The Management Board is responsible for the preparation of the sustainability statement in accordance with the ESRS, including the double materiality assessment process carried out by the company as the basis for the sustainability statement and disclosure of material impacts, risks and opportunities in accordance with the ESRS. As part of the preparation of the sustainability statement, the Management Board is responsible for compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation). The Management Board is also responsible for selecting and applying additional entity-specific disclosures to enable users to understand the company’s sustainability-related impacts, risks or opportunities and for determining that these additional entity-specific disclosures are suitable in the circumstances and in accordance with the ESRS. Furthermore, the Management Board is responsible for such internal control as it determines is necessary to enable the preparation of the sustainability statement that is free from material misstatement, whether due to fraud or error. The Supervisory Board is responsible for overseeing the sustainability reporting process including the double materiality assessment process carried out by the company. Our responsibilities for the limited assurance engagement on the sustainability statement Our responsibility is to plan and perform the limited assurance engagement in a manner that allows us to obtain sufficient appropriate assurance evidence for our conclusion. Our assurance engagement is aimed to obtain a limited level of assurance that the sustainability statement is free from material misstatements. The procedures vary in nature and timing from, and are less in extent than for a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed. We apply the applicable quality management requirements pursuant to the ‘Nadere voorschriften kwaliteitsmanagement’ (NVKM, regulations for quality management), and accordingly maintain a comprehensive system of quality management including documented policies and procedures regarding compliance with ethical requirements, professional standards and other relevant legal and regulatory requirements. Our limited assurance engagement included among others: • Performing inquiries and an analysis of the external environment and obtaining an understanding of relevant sustainability themes and issues, the characteristics of the company, its activities and the value chain and its key intangible resources in order to assess the double materiality assessment process carried out by the company as the basis for the sustainability statement and disclosure of all material sustainability-related impacts, risks and opportunities in accordance with the ESRS. • Obtaining through inquiries a general understanding of the internal control environment, the company’s processes for gathering and reporting entity-related and value chain information, the information systems and the company’s risk assessment process relevant to the preparation of the sustainability statement and for identifying the company’s activities, determining eligible and aligned economic activities and prepare the disclosures provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), without obtaining assurance information about the implementation, or testing the operating effectiveness, of controls. • Assessing the double materiality assessment process carried out by the company and identifying and assessing areas of the sustainability statement, including the disclosures provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) where misleading or unbalanced information or material misstatements, whether due to fraud or error, are likely to arise (‘selected disclosures’). We designed and performed further assurance procedures aimed at assessing that the sustainability statement is free from material misstatements responsive to this risk analysis. • Considering whether the description of the double materiality assessment process in the sustainability statement made by management appears consistent with the process carried out by the company. • Performing analytical review procedures on quantitative information in the sustainability statement, including consideration of data and trends. • Assessing whether the company’s methods for developing estimates are appropriate and have been consistently applied for selected disclosures. We considered data and trends, however, our procedures did not include testing the data on which the estimates are based or separately developing our own estimates against which to evaluate management’s estimates. • Analysing, on a limited sample basis, relevant internal and external documentation available to the company (including publicly available information or information from actors throughout its value chain) for selected disclosures. • Reading the other information in the annual report to identify material inconsistencies, if any, with the sustainability statement. • Considering whether: • the disclosures provided to address the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation) for each of the environmental objectives ◦ reconcile with the underlying records of the company and are consistent or coherent with the sustainability statement; About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 163 ◦ appear reasonable, in particular whether the eligible economic activities meet the cumulative conditions to qualify as aligned and whether the technical screening criteria are met; and • the key performance indicators disclosures have been defined and calculated in accordance with the Taxonomy reference framework as defined in Appendix 1 Glossary of Terms of the CEAOB Guidelines on limited assurance on sustainability reporting adopted on 30 September 2024, and in compliance with the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation), including the format in which the activities are presented. • Considering the overall presentation, structure and the fundamental qualitative characteristics of information (relevance and faithful representation: complete, neutral and accurate) reported in the sustainability statement, including the reporting requirements provided for in Article 8 of Regulation (EU) 2020/852 (Taxonomy Regulation); and • Considering, based on our limited assurance procedures and evaluation of the assurance evidence obtained, whether the sustainability statement as a whole, is free from material misstatements and prepared in accordance with the ESRS. Amstelveen, 14 April 2025 For and on behalf of BDO Audit & Assurance B.V., sgd. drs. J.F. van Erve RA About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 164 Supple- mentary Information 165 CSRD Content Index 169 List of Data Points Derived From Other EU Legislation 172 About this report A Day in the Life of a Pallet: Return Journey By the time it had completed hundreds of trips, the pallet had become an integral part of the supply chain, transporting everything from electronics to clothing safely. After many cycles, the pallet reaches the end of its lifecycle and is recycled into a brand new pallet. Its journey continues- this isn’t the end. Circularity knows no end. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 165 CSRD Content Index DISCLOSURE REQUIREMENT DESCRIPTION PAGES EXPLANATORY NOTES BP-1 General basis for preparation of the sustainability statement 69 BP-2 Disclosure in relation to specific circumstances 69, 83-84, 87, 93, 94, 165-168 GOV-1 Governance: the role of AMS bodies 42-45, 47, 55-57, 73, 92 The disclosure requirements of GOV-1 are partly incorporated by reference in the Governance & Risk section of this Annual Report. GOV-2 Information provided to and sustainability matters addressed by Cabka’s administrative, management and supervisory bodies 17-18, 49, 71-74 GOV-3 Integration of sustainability-related performance in incentive schemes 51-52, 74 Information regarding the remuneration policy of Cabka and its characteristics is incorporated by reference in the Remuneration Report of this Annual Report. Information on the incorporation of climate-related targets and performance in our remuneration policy is included in the disclosure on ESRS E1. GOV-4 Statement on due diligence 75 GOV-5 Risk management and internal controls over sustainability reporting 58-62, 74, 95 The disclosure requirements of GOV-5 are incorporated by reference in the Risk management section of this Integrated Report. SBM-1 Strategy, business model and value chain 6, 8-10, 19-21, 92, 102 • SBM-1, Art. 40 a iv not applicable because Cabka does not sell products that are banned in certain markets • Cabka is not active in the fossil fuel sector, chemicals production, controversial weapons, or the cultivation and production of tobacco • Some disclosures under SBM-1 are incorporated by reference in chapters "About us" and "How we create value" in this Integrated Report. SBM-2 Interests and views of stakeholders 23-24 • No amendments were made to Cabka's strategy and/or business model in 2024 following the interests and views of our key stakeholders • The disclosure requirements of SBM-2 are incorporated by reference in the Stakeholder section of this Integrated Report SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 16, 71-73, 81, 85, 89, 94-95, 97-98 • Phase-in option used for ESRS 2 SBM-3 paragraph 48(e) (anticipated financial effects) in line with ESRS 1 Appendix C. • Since this is our first year of reporting based on individual ESG-related material IROs, no changes of material IROs to the previous reporting period have been made. IRO-1 Description of the process to identify and assess material impacts, risks and opportunities 16-18, 70-71 The disclosure requirements of IRO-1 are partly incorporated by reference in the Risk Management chapter of this Integrated Report. IRO-2 Disclosure Requirements in ESRS covered by the undertaking's sustainability statement 70-71, 94, 165-168 MDR-P Minimum disclosure requirement - policies 81, 86, 89-90, 95, 97-98 Reporting on the minimum disclosure requirements about policies applies to the disclosure under ESRS E1, E5, S1, S4, and G1 in this sustainability statement. MDR-A Minimum disclosure requirement - actions 82, 86-87, 90-91, 93, 95-98 Reporting on the minimum disclosure requirements about actions applies to the disclosure under ESRS E1, E5, S1, S4, and G1 in this sustainability statement. MDR-M Minimum disclosure requirement - metrics 83-84, 87-88, 91-93, 97-98 Reporting on the minimum disclosure requirements about metrics applies to the disclosure under ESRS E1, E5, S1, S4, and G1 in this sustainability statement. MDR-T Minimum disclosure requirement - targets 83-84, 87-88, 91-93, 96-98 Reporting on the minimum disclosure requirements about targets applies to the disclosure under ESRS E1, E5, S1, S4, and G1 in this sustainability statement. ESRS 1 Art. 8 EU Taxonomy disclosure 76-80 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 166 DISCLOSURE REQUIREMENT DESCRIPTION PAGES EXPLANATORY NOTES E1.GOV-3 Integration of sustainability-related performance in incentive schemes 74, 89, 95 E1-1 Transition plan for climate change mitigation 82 E1.SBM-3 Material IROs and their interaction with strategy and business model 11-12, 81 E1.IRO-1 Description of the processes to identify and assess material climate-related IROs 70-71, 81 E1-2 Policies for climate change 81 E1-3 Actions and resources for climate change mitigation and adaptation 81-82 E1-4 Targets related to climate change mitigation and adaptation 69, 83 E1-5 Energy consumption and mix 84 E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions 83-84, 102, 166 Phase-in option used for ESRS E1-6 disclosure on scope 3 and total GHG emissions in line with ESRS 1 Appendix C. While consolidated scope 3 emissions are reported, we have chosen to omit the disaggregation of scope 3 emissions into the individual categories for 2024. Regardless, all relevant scope 3 sub-categories have been included in the calculation of total scope 3 emissions (3.1-7, 3.9, and 3.12). E1-7 GHG removals and GHG mitigation projects financed through carbon credits - Cabka is not involved in any projects for GHG removal or GHG mitigation through carbon credits. Disclosure on ESRS E1-7 is therefore not applicable. E1-8 Internal carbon pricing - Cabka did not apply an internal carbon pricing scheme in the reporting year. Disclosure on ESRS E1-8 is therefore not applicable. E1-9 Anticipated financial effects from material physical and transition risks and potential climate-related opportunities - Phase-in option used for ESRS E1-9 disclosure on anticipated financial effects in line with ESRS 1 Appendix C. E5.IRO-1 Description of the processes to identify and assess material resource use and circular economy-related impacts, risks and opportunities 70 E5-1 Policies related to resource use and circular economy 86 E5-2 Actions and resources related to resource use and circular economy 86-87 E5-3 Targets related to resource use and circular economy 87 E5-4 Resource inflows 87 E5-5 Resource outflows 87-88 E5-6 Anticipated financial effects from material resource use and circular economy-related risks and opportunities - Phase-in option used for ESRS E5-6 disclosure on anticipated financial effects in line with ESRS 1 Appendix C. S1.SBM-2 Interests and views of stakeholders 23-24, 90 About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 167 DISCLOSURE REQUIREMENT DESCRIPTION PAGES EXPLANATORY NOTES S1.SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business model 89 Because Cabka's average number of employees during FY 2024 did not exceed 750, ESRS S1 is subject to the phase-in disclosure requirements and can be omitted in the 2024 sustainability statement. Because of the importance of transparent reporting on the management of impacts, risks, and opportunities related to our own workforce for our stakeholders, we have decided to report on this standard voluntarily regardless. However, since this is the first year of reporting according to ESRS S1, the internal systems to reliably report all disclosure requirements in this standard are not yet mature enough. While some disclosures are thus reported, we will work towards full disclosure in future reporting. Furthermore, Cabka has no operations at significant risk of forced or compulsory labor. Therefore, no reporting on the respective disclosure requirement is included in the ESG statement of this report. S1-1 Policies related to own workforce 89-90 S1-2 Processes for engaging with own workforce and workers’ representatives about impacts 90-91 S1-3 Processes to remediate negative impacts and channels for own workforce to raise concerns 89-90 S1-4 Taking action on material impacts on own workforce, and approaches to managing material risks and pursuing material opportunities related to own workforce, and effectiveness of those actions 90-91 S1-5 Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities 91 S1-6 Characteristics of the undertaking’s employees 92 Phase-in option used for ESRS S1-6 disclosure on numbers of full-time and part-time employees in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-7 Characteristics of non-employees in the undertaking’s own workforce - Phase-in option used for ESRS S1-7 disclosure in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-8 Collective bargaining coverage and social dialogue - Phase-in option used for ESRS S1-8 disclosure in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-9 Diversity metrics 92 Phase-in option used for ESRS S1-9 disclosure on metrics regarding employee numbers by age group in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-10 Adequate wages - Phase-in option used for ESRS S1-10 disclosure in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-11 Social protection - Phase-in option used for ESRS S1-11 disclosure in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-12 Persons with disabilities - Phase-in option used for ESRS S1-12 disclosure in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-13 Training and skills development 92 Phase-in option used for ESRS S1-13 disclosure on skills development metrics in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-14 Health and safety metrics 92 Phase-in option used for ESRS S1-14 disclosure on health and safety metrics related to value chain workers in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. Furthermore, we have chosen to make use of the phase-in provisions for the disclosure requirements under ESRS S1-14 related to work-related ill health as well as number of days lost to work-related injuries. Legal restrictions limit the availability of work-related ill health data. S1-15 Work-life balance metrics - Phase-in option used for ESRS S1-15 disclosure in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 168 DISCLOSURE REQUIREMENT DESCRIPTION PAGES EXPLANATORY NOTES S1-16 Remuneration metrics (pay gap and total remuneration) 93 Phase-in option used for ESRS S1-16 disclosure requirement on gender pay gap in line with ESRS 1 Appendix C because the necessary data reliability for trustworthy reporting was not given. S1-17 Incidents, complaints and severe human rights impacts 93 Phase-in option used for ESRS S1-17 disclosure on fines, penalties, and compensation for damages as a result of the incidents and complains disclosed because the necessary data reliability for trustworthy reporting was not given. S4-1 to S4-5 Disclosure on ESRS S4 Consumers and End-Users 94 Phase-in option used for ESRS S4 disclosure requirements in line with ESRS 1 Appendix C. G1.GOV-1 The role of the administrative, management and supervisory bodies 74, 96 G1.IRO-1 Description of the processes to identify and assess material impacts, risks and opportunities 70-71 G1-1 Business conduct policies and corporate culture 86, 90-91, 97 All disclosure on G1-1 is incorporated by reference in the ESG statement chapter on ESRS S1 in this report, as we see this disclosure as part of the material risk of retention of talent under the topical standard of Own Workforce. G1-2 Management of relationships with suppliers 86, 88 Reporting on G1-2 is not based on a directly related material IRO, but instead is based on Cabka's material risks related to circular economy. Therefore, disclosure on this reporting requirement is incorporated by reference in the chapter on ESRS E5 in this report. G1-3 Prevention and detection of corruption and bribery - Not applicable because this disclosure requirement is not material to Cabka in the reporting period. G1-4 Confirmed incidents of corruption or bribery - Not applicable because this disclosure requirement is not material to Cabka in the reporting period. G1-5 Political influence and lobbying activities - Not applicable because this disclosure requirement is not material to Cabka in the reporting period. G1-6 Payment practices - Not applicable because this disclosure requirement is not material to Cabka in the reporting period. 20 for report sections refer to CSRD Content Index About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 169 List of Data Points Derived From Other EU Legislation (ESRS 2 Appendix B) 20 DISCLOSURE REQUIREMENT AND RELATED DATA POINT SFDR REFERENCE PILLAR 3 REFERENCE BENCHMARK REGULATION REFERENCE EU CLIMATE LAW REFERENCE MATERIALITY ESRS 2 GOV-1 Board's gender diversity, paragraph 21(d) x x material ESRS 2 GOV-1 Percentage of board members who are independent, paragraph 21(e) x material ESRS 2 GOV-4 Statement on due diligence, paragraph 30 x material ESRS 2 SBM-1 Involvement in activities related to fossil fuel activities, paragraph 40(d)i x x x not material ESRS 2 SBM-1 Involvement in activities related to chemical production, paragraph 40(d)ii x x not material ESRS 2 SBM-1 Involvement in activities related to controversial weapons, paragraph 40(d)iii x x not material ESRS 2 SBM-1 Involvement in activities related to cultivation and production of tobacco, paragraph 40(d)iv x not material ESRS E1-1 Transition plan to reach climate neutrality by 2050, paragraph 14 x material ESRS E1-1 Undertakings excluded from Paris-aligned Benchmarks, paragraph 16(g) x x not relevant ESRS E1-4 GHG emission reduction targets, paragraph 34 x x x material ESRS E1-5 Energy consumption from fossil sources disaggregated by sources (only high climate impact sectors), paragraph 38 x material ESRS E1-5 Energy consumption and mix, paragraph 37 x material ESRS E1-5 Energy intensity associated with activities in high climate impact sectors, paragraphs 40 to 43 x material ESRS E1-6 Gross Scope 1, 2, 3 and Total GHG emissions, paragraph 44 x x x material ESRS E1-6 Gross GHG emissions intensity, paragraphs 53 to 55 x x x material ESRS E1-7 GHG removals and carbon credits, paragraph 56 x not material ESRS E1-9 Exposure of the benchmark portfolio to climate-related physical risks, paragraph 66 x not relevant, transitional provision ESRS E1-9 Disaggregation of monetary amounts by acute and chronic physical risk, paragraph 66(a) x not relevant, transitional provision ESRS E1-9 Location of significant assets at material physical risk, paragraph 66(c) x not relevant, transitional provision ESRS E1-9 Breakdown of the carrying value of its real estate assets by energy-efficiency classes, paragraph 67(c) x not relevant, transitional provision ESRS E1-9 Degree of exposure of the portfolio to climate-related opportunities, paragraph 69 x not material ESRS E2-4 Amount of each pollutant listed in Annex II of the E-PRTR Regulation (European Pollutant Release and Transfer Register) emitted to air, water and soil, paragraph 28 x not material ESRS E3-1 Water and marine resources, paragraph 9 x not material ESRS E3-1 Dedicated policy, paragraph 13 x not material ESRS E3-1 Sustainable oceans and seas, paragraph 14 x not material About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 170 DISCLOSURE REQUIREMENT AND RELATED DATA POINT SFDR REFERENCE PILLAR 3 REFERENCE BENCHMARK REGULATION REFERENCE EU CLIMATE LAW REFERENCE MATERIALITY ESRS E3-4 Total water recycled and reused, paragraph 28(c) x not material ESRS E3-4 Total water consumption in m3 per net revenue on own operations, paragraph 29 x not material ESRS 2 - IRO-1 - E4 Paragraph 16(a)i x not material ESRS 2 - IRO-1 - E4 Paragraph 16(b)i x not material ESRS 2 - IRO-1 - E4 Paragraph 16(c)i x not material ESRS E4-2 Sustainable land / agriculture practices or policies, paragraph 24(b) x not material ESRS E4-2 Sustainable oceans / seas practices or policies, paragraph 24(c) x not material ESRS E4-2 Policies to address deforestation, paragraph 24(d) x not material ESRS E5-5 Non-recycled waste, paragraph 37(d) x material ESRS E5-5 Hazardous waste and radioactive waste, paragraph 39 x material ESRS 2 - SBM-3 - S1 Risk of incidents of forced labor, paragraph 14(f) x material ESRS 2 - SBM-3 - S1 Risk of incidents of child labor, paragraph 14(g) x material ESRS S1-1 Human rights policy commitments, paragraph 20 x material ESRS S1-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 21 x material ESRS S1-1 Processes and measures for preventing trafficking in human beings, paragraph 22 x material ESRS S1-1 Workplace accident prevention policy or management system, paragraph 23 x material ESRS S1-3 Grievance/complaints handling mechanisms, paragraph 32(c) x material ESRS S1-14 Number of fatalities and number and rate of work-related accidents paragraph 88(b) and (c) x x material ESRS S1-14 Number of days lost to injuries, accidents, fatalities or illness, paragraph 88(e) x material ESRS S1-16 Unadjusted gender pay gap, paragraph 97(a) x x material ESRS S1-16 Excessive CEO pay ratio, paragraph 97(b) x material ESRS S1-17 Incidents of discrimination, paragraph 103(a) x material ESRS S1-17 Non-respect of UNGPs on Business and Human Rights and OECD, paragraph 104(a) x x material ESRS 2 - SBM-3 - S2 Significant risk of child labor or forced labor in the value chain, paragraph 11(b) x not material ESRS S2-1 Human rights policy commitments, paragraph 17 x not material ESRS S2-1 Policies related to value chain workers, paragraph 18 x not material ESRS S2-1 Non-respect of UNGPs on Business and Human Rights principles and OECD guidelines, paragraph 19 x x not material ESRS S2-1 Due diligence policies on issues addressed by the fundamental International Labor Organization Conventions 1 to 8, paragraph 19 x not material ESRS S2-4 Human rights issues and incidents connected to its upstream and downstream value chain, paragraph 36 x not material ESRS S3-1 Human rights policy commitments, paragraph 16 x not material ESRS S3-1 Non-respect of UNGPs on Business and Human Rights, ILO principles or and OECD guidelines, paragraph 17 x x not material ESRS S3-4 Human rights issues and incidents, paragraph 36 x not material About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 171 DISCLOSURE REQUIREMENT AND RELATED DATA POINT SFDR REFERENCE PILLAR 3 REFERENCE BENCHMARK REGULATION REFERENCE EU CLIMATE LAW REFERENCE MATERIALITY ESRS S4-1 Policies related to consumers and end-users, paragraph 16 x material, transitional provision ESRS S4-1 Non-respect of UNGPs on Business and Human Rights and OECD guidelines, paragraph 17 x x material, transitional provision ESRS S4-4 Human rights issues and incidents, paragraph 35 x material, transitional provision ESRS G1-1 United Nations Convention against Corruption, paragraph 10(b) x not material ESRS G1-1 Protection of whistleblowers, paragraph 10(d) x material ESRS G1-4 Fines for violation of anti-corruption and anti-bribery laws, paragraph 24(a) x x not material ESRS G1-4 Standards of anti-corruption and anti-bribery, paragraph 24(b) x not material About Us How We Create Value Our Impact in 2024 Governance & Risk Sustainability Statement Financial Report Other Information Supplementary Information Cabka Annual Report 2024 – 172 About This Report This document contains the Annual Report 2024 of Cabka N.V., a listed public company under Dutch law (‘naamloze vennootschap met beperkte aansprakelijkheid’) which is registered in the Chamber of Commerce Amsterdam under number 80504493. As of 1 March 2024, the company has moved its registered office to John M. Keynesplein 10, 1066 EP, Amsterdam, the Netherlands (previously at Johan Cruijff Boulevard 65-71, 1101 DL Amsterdam, The Netherlands). Cabka N.V. is based in the Netherlands with subsidiaries in the US, Spain, Germany and Belgium. Cabka is listed and traded on Euronext Amsterdam under the “CABKA’ ticker. Throughout this report, the name “Cabka”, “Cabka Group“, “the Company” or “the Group” will be used interchangeably to refer to Cabka N.V. and its subsidiaries. These consolidated financial statements comprise the Company and its subsidiaries. The report will generally refer to the organization as Cabka throughout the reporting period, unless specified differently. This report covers all operations of Cabka N.V. for the period of 1 January 2024 until 31 December 2024, unless stated otherwise. The consolidated financial statements of Cabka N.V. have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union (EU-IFRS) and also comply with financial reporting requirements included in Part 9 of Book 2 of the Dutch Civil Code, as far as applicable. This report also includes both financial and sustainability reporting for Cabka. Disclaimer This PDF is a copy of the annual report of Cabka N.V. for the year 2024 and is not in the ESEF format as specified by the European Commission Regulatory Technical Standard on ESEF (Regulation (EU) 2019/815). The ESEF reporting package is available on our website at www.investors.cabka.com/reporting-and-investor-library/ reports- and-presentation. Statement on forward looking statements The management report may include statements that are, or may be deemed to be, “forward-looking statements“. Forward-looking statements may and often do differ materially from actual results. Any forward-looking statements reflect the Company’s current view with respect to future events and are subject to risks relating to future events and other risks, uncertainties and assumptions relating to the Company’s business, results of operations, financial position, liquidity, prospects, growth, or strategies. Readers are cautioned that any forward-looking statements are not guarantees of future performance. Given these uncertainties, the reader is advised not to place any undue reliance on such forward- looking statements.