Untitled Annual Report 2020/2021

To make lives healthier by helping people enjoy fruit and vegetables at any moment, in an easy, fast and pleasurable way, whilst fostering nature.

Message from the co-CEOs

Highlights

Agility in times of great need

Safety as our rst priority

Healthy choices

2 / A unique business model
21 Adding value throughout the entire chain
22 Operational review divisions
24 Seven pillars for growth
26 Helping our customers stand out from the crowd
28 The road to better sourcing
30 Where health and convenience meet
34 Building for growth
38 Improving life step by step
42 Greenyard at a glance
47 Financial report
51 Message from the CFO
52 Key nancial information
59 Report of the board of directors
65 Consolidated nancial statements
123 Notes to the consolidated nancial statements
131 Statement of responsible persons
197 Statutory auditor’s report on the consolidated nancial statements
199 Condensed statutory accounts of the parent company Greenyard NV, according to Belgian accounting standards
209 Financial denitions
217

GREENYARD ANNUAL REPORT 2020/2021 / 3

A year like no other

Message from the co-CEOs

To all our customers, growers, employees, business partners and shareholders,

2020 has been a year like no other. Both inside and outside our company. The COVID-19 pandemic added a new dimension to daily life, and it reminded us of the role we as individuals, but also as a company, should play in contributing towards a healthy soci- ety. For Greenyard, it was also the year we completed our Transformation Plan and continued accelerating towards our ultimate ambition – to become a driving force for healthier lifestyles and more sustainable food supply chains.

4 / In March 2020, the world woke up to a whole new reality. Suddenly, our lives and our economy seemed to come to a virtual standstill. In a joint global eort to beat the coronavirus, and with the safety of family, friends and colleagues as the number one priority, a lot of people were conned to their homes. But not everyone. The emergency services and medi- cal personnel were on the front line, protecting us and taking care of us. But also, many of our colleagues working in distribution centres and our production facilities, growers and truck drivers, left their homes to ensure healthy food remained available through- out the year. Our colleagues have shown resilience, commitment and open minds, adapting to a new way of working in a very short time to assure business con- tinuity, and this in a rapidly changing context. The lockdown changed people’s consumption pat- terns, with demand shifting from restaurants and food service to the aisles of supermarkets. At the same time, growers were faced with short-term labour complications and customers found them- selves faced with higher demand. But along with our customers and growers, we rose to these logistical and organisational challenges and harnessed our cre- ativity to safeguard supplies of healthy food when and where people expected it.

GREENYARD ANNUAL REPORT 2020/2021 / 5

2020 has also been a remarkable year for Greenyard in another very different respect, since it marked the completion of our Transformation Plan turning Greenyard into a more agile and efficient organi- sation, allowing us to further increase focus on our purpose. Most notably, we accelerated the organisation’s shift to an integrated customer model, successfully devel- oping and growing long-term relationships with some of Europe’s major retailers. We also made considera- ble progress rationalising our operations and creating economies of scale across countries, departments, and divisions.Continuous improvement and a relent- less customer focus became core elements and a per- manent mindset for everyone in our organisation. Today, we are already reaping the benefits of our hard work. The nancial results for AY 20/21 speak for themselves. Net sales increased by 8,7% to reach € 4 416,2m while adjusted EBITDA (post-IFRS 16) increased from € 133,4m to € 156,9m, up € 23,5m (+17,6%). Adjusted EBITDA (pre-IFRS 16) amounted to € 116,6m, a 21,8% increase compared to the previous nancial year. These results came in well above expectations and had a positive impact on our leverage ratio (net debt/LTM adjusted EBITDA, pre-IFRS 16) which improved from 4,4x last year to 2,9x on 31March 2021. At the end of March, the final piece of the puzzle fell into place. We secured new, long-term nancing with our trusted relationship banks, and we attracted new long-term investors for a total capital increase of €50,00m. Today, Greenyard is a stronger, leaner and a nancially more robust company, with a unique position in the marketplace. And the future is looking healthier than ever. More people than ever before have come to real- ise we need to change the way we consume and pro- duce food. COVID-19 has made us even more aware of the importance of health and the vulnerability of our current way of living. As one of the largest sup- pliers of fruit and vegetables in the world, we are in a pivotal position and fully embrace our responsibility to drive the transition to healthier lifestyles and more sustainable food supply chains.

“If we want to make a real impact, we need to collaborate strongly throughout the entire value chain. The long-term integrated relationships we have built with many of our customers and growers are crucial in this respect.”

Hein Deprez, co-CEO Greenyard

Message from the co-CEOs

6 / By making fruit and vegetables more accessible, more convenient and more aordable, we want as much people as possible to enjoy their many benets. Our aim has always been to provide people with great and healthy products for every lifestyle and every moment of the day. Because of their lower environ- mental impact, increasing consumption of fruit and vegetables can also full the growing global demand for food, without exhausting our planet. We need to work on both sides of that equation. Greenyard cannot do this alone. If we want to make a real impact, we need strong collaboration through- out the entire value chain. The long-term integrated relationships we have built with many of our most important customers and growers are critical in this respect. By working in a transparent, open and integrated manner, we can create shorter and more ecient supply chains, to the benet of everyone involved, from grower to consumer. This year’s performance, and our unique position in the food value chain, will allow us to continue along our sustainable growth path and live up to our ambi- tion to improve life. The life of everyone consuming our healthy products, the life of all our employees and the people we team up with in our food value chain and of course also life on earth, as we must make sure the way we operate is sustainable and we foster and protect nature. To achieve this ultimate goal, we know we can count on our passionate employees, an extensive and solid network of devoted growers, a powerful base of busi- ness partners and increasing support from within society as a whole. With this report, we want to embark you on a journey, sharing our ambition and our passion, for you to dis- cover the unrivalled potential of fruit and vegetables to create a healthier and more sustainable future.

Hein Deprez, Marc Zwaaneveld, co-CEOs Greenyard

“We are reaping the benefits of our hard work and the future is looking healthier than ever. We are in a pivotal position to drive the transition to healthier lifestyles and more sustainable food supply chains, and we embrace this responsibility.”

Marc Zwaaneveld, co-CEO Greenyard

GREENYARD ANNUAL REPORT 2020/2021 / 7

Highlights

Greenyard responds swiftly and decisively to the COVID-19 pandemic immediately implementing group-wide measures to guarantee safe working conditions for all its employees. Close collaboration with customers, growers and partners ensures the uninterrupted supply of healthy food.

Greenyard reports on COVID-19 eects and notes a shift in volumes from foodservice to retailers, as consumers cook more frequently at home, combining Fresh and Long Fresh solutions. Despite additional complexities in the supply chain, Greenyard continues to supply its customers, without any disruption.

Greenyard publishes its annual report for the AY 19/20, which was a year of recovery, driven bya successful transformation. The Transformation Plan was announced early 2019 and focused on the company’s commercial relationships, continued operational excellence and the rationalisation of its footprint.


2020	17 April
	16 June
	March-June

8 / Greenyard returns to protable growth and raises its guidance for adjusted EBITDA. The announcement follows a rm increase in both sales volumes and margin for the rst quarter of the 2020/2021 nancial year. The sustained growth rearms the company’s regained strength.

Greenyard Frozen introduces a new range of frozen pulses, bringing extra convenience to consumers preparing vegetarian and vegan meals. With no need for cleaning, soaking, or drying, the ready-to-use products retain all their nutritional benets.

Greenyard nalises an agreement for the divestment of Greenyard Logistics Portugal through a management buyout. The company has been active since 2001 in the Portuguese transport and logistics market for food products.

The rst truckload of fresh fruit and vegetables rolls into Bakker Barendrecht’s new 30,000m 2 distribution centre. The new facility was specially designed and built to warehouse and package soft fruits, leafy vegetables, and citrus for one of the largest retailers in the Benelux.


17 September
1 October
30 June
14 August

GREENYARD ANNUAL REPORT 2020/2021 / 9

Highlights

Greenyard continues its double-digit growth in the third quarter of the 2020/2021 nancial year.# Greenyard Annual Report 2020/2021

Agility in times of great need

The company also reveals its ambitious long-term plans based on seven pillars, including further deepening its long-term relationships with customers and a new sustainability roadmap. A clear improvement in both sales and adjusted EBITDA is announced for the first half of the 2020/2021 financial year. Net financial debt and leverage had continued to decline over the same period at a much faster pace than anticipated.

25 February

17 November

The third edition of Greenyard’s Sustainability Report is published. It sets out the company’s vision and ambitions for a fully integrated sustainability strategy, with specific commitments in four areas: climate action, water stewardship, responsible sourcing and achieving zero waste.

5 November 2021

10 / Greenyard

Prepared upgrades its cooling tower in Bree, Belgium, resulting in an annual saving of over 50 million litres of water. The upgrade is part of the company’s continuous efforts to improve the sustainability of its production processes.

Cementing its commitment to the Sustainability Initiative Fruit and Vegetables (SIFAV), Greenyard launches its new collaborative sustainability strategy for 2025. Five Greenyard companies are involved: Bakker Belgium, Bakker Barendrecht, Fresh Solutions, Greenyard Fresh Belgium, and Greenyard Fresh Germany.

Greenyard successfully refinances its outstanding debt which is committed for a tenor of three years. At the same time, a capital increase of € 50 million is completed, with the net proceeds going to strengthen shareholders equity in line with its 2021-2025 ambitions.

30 March

9 March

26 March

GREENYARD ANNUAL REPORT 2020/2021 / 11

12 / Agility in times of great need / 13

GREENYARD ANNUAL REPORT 2020/2021

Agility in times of great need

Safety as our first priority

“When the first wave of COVID-19 hit Europe, we immediately knew we needed to take drastic measures to guarantee the safety of all our employees”, says Alexander Verbist, Group Legal & HR Director. “As we are active in a vital sector, we could not simply shut down our activities. Despite difficult circumstances, it was amazing to see how fast our people adapted to the new situation, enabling us to take up our role and responsibility in society.”

In March 2020, COVID-19 started its rapid spread through Europe. Italy was the first European country to be hit by the corona wave. In very challenging circumstances and in an extremely short timeframe, Greenyard Fresh Italy was able to implement measures to keep our employees safe. At the same time, they ensured the undisrupted supply of fruit and vegetables to the market, products people were increasingly looking for. In this way, we set the standard for the entire group.

As a group, Greenyard immediately issued the necessary guidelines and preventive measures to limit the risks of contamination. Measures for office workers included working from home whenever possible and severe restrictions on physical meetings, business travel and external visitors.

14 / Alexander Verbist, Group Legal & HR Director

Reorganised for social distancing

“Warehouses, production units and reception desks that are essential to our business were completely reorganised to ensure social distancing”, says Alexander Verbist. “Measures included the placement of plexiglass screens and hand sanitisers, arrows indicating walking directions, and so on. We also organised people to work in clusters to limit the number of contacts.”

A corona taskforce, consisting of both local and group employees, was established to coordinate all efforts within Greenyard. “Swift communication was key, with direct newsflashes in different languages to keep everyone informed. It was also important to keep a close eye on the different measures that were taken in different countries, taking into account varying confinement regulations depending on the local and regional evolution of the pandemic.”

Joke Silkens, Machine Operator, Greenyard Prepared

“We were able to work in a safe environment from the start of the pandemic and that was really reassuring. Contributing to a better and healthier lifestyle is really important to me, so wearing a face mask to protect myself and my colleagues is just a small effort and it made me really happy to do my bit.”

“The safety and wellbeing of our employees has always been our first priority. During the COVID-19 pandemic, it became an absolute necessity.”
Alexander Verbist

GREENYARD ANNUAL REPORT 2020/2021 / 15

Agility in times of great need

Working apart together

Later on in the year, Greenyard maintained its vigilance and proceeded with caution. “Better safe than sorry was our motto. The strict measures in our warehouses and production plants largely remained in place and office workers were encouraged to work from home and keep time spent at the office to a strict minimum. Our efforts paid off: we were spared any major COVID-19 outbreaks within our workforce.”

Working from home certainly had its challenges, especially during the first lockdown when many people had to combine their work with childcare because of school closures. But people soon found out that homeworking also has its benefits: they spent much less time in traffic and as they became more familiar with digital tools, online meetings proved to be just as efficient – if not more – than live meetings. Our people were also supported through best practice sharing regarding the organisation of virtual meetings and a complete working from home guide.

The quick adoption of digital tools had a positive effect on collaboration within Greenyard, as they facilitate the sharing of documents, information and knowledge. Online meetings break down barriers between colleagues working in different locations, divisions and countries.

“There are many lessons to be learned from this crisis. I’m pretty sure virtual meetings are here to stay as we evolve towards more hybrid ways of working. Although I have to say that I am looking forward to see many of my colleagues again in person in the coming months. And I am sure I am not the only one”, says Alexander Verbist.

“The quick adoption of digital tools had a positive effect on collaboration between colleagues, divisions and countries.”
Alexander Verbist

“Working from home presented a number of challenges. It took a while to find the right work-life balance, especially when my children were home. But working remotely also opened up a new world of possibilities to organise meetings in a more efficient manner and improve collaboration with colleagues. Although I do hope to chat with my colleagues in real life again soon.”
Joely Fonteyne, Service Center Assistant Convenience, Greenyard Frozen

16 / Thank you to our #foodheroes

The closure of restaurants and canteens suddenly changed consumption patterns and led to an unexpected and strong growth in supermarket sales. During the first weeks of lockdown, the situation was further complicated by hoarding, which put a severe pressure on logistics and supply chains. It immediately demonstrated just how vital our sector is to society.

Rising to the challenge

Along with our growers, partners and suppliers, we rose to the challenge and helped our retail customers cope with the sudden increase in demand. Using the basic principles of our long-term relationships – agility, transparency and close collaboration – we spared no effort to make sure shelves were stocked with healthy food at all times.

We are grateful to all our employees, growers, partners and customers for their commitment and their hard work during exceptional times. They are true #foodheroes!

GREENYARD ANNUAL REPORT 2020/2021 / 17

Agility in times of great need

COVID-19 had a profound impact on consumer habits and purchasing behaviour, as many people spent a lot more time at home. But the pandemic also reminded us of the vulnerability of our health and the importance of a healthy lifestyle.

As the pandemic unfolded, many people rediscovered the benefits of physical exercise and took up the habit of walking outdoors. This trend also extended to the way we consume and prepare food. Cooking from scratch became more popular as people took more time to cook and eat together at home. It led to a remarkable growth in the total sales of fruit and vegetables, the latter in particular. Convenience solutions such as our mealkits benefited as well. The long shelf life of produce from our Long Fresh segment was particularly valued in periods of confinement with many shoppers stocking up on several weeks’ supply as back-up leading them to discover the convenience benefits of the segment.

It is still too early to predict whether these trends will turn out to be permanent and have a lasting impact on our habits, but one thing is clear. COVID-19 has reminded us of what matters most: our health.

“The COVID-19 pandemic has reminded us of what matters most: our health.”

Healthy choices

18 / GREENYARD ANNUAL REPORT 2020/2021 / 19

20 / A unique business model / 21

GREENYARD ANNUAL REPORT 2020/2021

A unique business model

Adding value throughout the entire chain

The power of Greenyard is in the connections the company makes. Connecting the farms where the produce grows to the supermarkets or restaurants where consumers enjoy healthy fruits and vegetables.

	CONSUMER	CUSTOMER	CUSTOMER	GROWER	PARTNER
PREPARED
tailor made solutions & advice	unique offering	customer intimacy	creating an efficient and short food supply chain
quality	ready to eat	innovative concepts
FROZEN	availability & choice		specifications	all year round	full assortment

22 /
consumer
customer
customer
grower
partner
PREPAREDFRESH
tailor made solutions & advice
• unique offering
• customer intimacy
• creating an efficient and short food supply chain
quality
• availability & choice
• ready to eat
• innovative concepts
• specifications
• all year round
• full assortment
• supply chain management
• innovation
• packaging
• ripening
• quality management
added value
products
services
sourcing & service knowledge
customer expectations
FROZEN
GREENYARD ANNUAL REPORT 2020/2021 / 23

A unique business model

Many of the world’s largest food retailers and food service companies count on us, every day, for a steady and high-quality supply of fruit and vegetables to their stores. Through strong and long-term relationships with our customers, we put our expertise, scale and knowledge at their service to jointly develop a product offering that enhances their business, and answers consumer needs.

At Greenyard, we have a unique and complementary mix of three divisions: Fresh, Frozen and Prepared. This allows us to respond to the needs of every consumer, every lifestyle, every age group, and every occasion. An afternoon snack, a quick and healthy meal tomorrow, or dinner with friends next week. This arrangement also contributes to a healthier planet. We supply our produce to a range of different markets with their own size and taste preferences, meaning that nature can provide us with her bounty at her own rhythm. Additionally, we can also make use of carefully sourced products for our Frozen or Prepared ranges, to meet other types of consumer need. Because we firmly believe that a healthy choice, should always be an accessible and an easy choice, for people and for our planet.

Operational review

divisions

What we do

	Approx. 2 200 employees	450 000 tons/year production
PREPARED
FROZEN	Approx. 1 200 employees	330 000 tons/year production
FRESH	Approx. 5 600 employees	2m tons/year supply
		3 Facilities
		27 Distribution sites
		9 Facilities

GREENYARD ANNUAL REPORT 2020/2021 / 25

A unique business model

Deepening Greenyard’s unique long-term relationships

Seven pillars for growth

As a guiding compass, Greenyard announced a revised and ambitious plan for the next four years, underpinned by seven pillars.

Deepening Greenyard’s unique long-term relationships with customers to provide more added-value services.
Further development of Greenyard’s asset base and production capabilities, including automation, capacity extension, quality and increased efficiency.
A smart sourcing strategy to attract new growers and retain important growers. Closer collaboration will further secure availability and supply of the most sought-after categories and be a catalyst in the further professionalisation of the agricultural sector.
A roadmap with tangible sustainability commitments to further reduce the environmental footprint of the company, ensure an environmentally and socially sustainable food value chain and promote healthy and sustainable food concepts.
Increased resilience to external factors such as infection, poor weather conditions, and crises, through adopting a more robust company profile, processes and structures.
Continuously strengthening the group’s internal organisation, leveraging Greenyard’s global scale and at the same time maintaining an agile organisation.
Strong corporate governance, to support and ensure the ambitions and further growth of Greenyard.

26 /
Smart sourcing strategy
Secure growth at robust profitable margins
Strenghtening agile organisation
Strong corporate governance
Develop asset base and logistic/ production capabilities
Sustainable roadmap: economics and sustainability go hand in hand
GREENYARD ANNUAL REPORT 2020/2021 / 27

A unique business model

Helping our customers stand out from the crowd

Working for the long term in a rapidly evolving world

Greenyard focuses on deepened, long-term and integrated relationships with some of Europe’s biggest retailers. But what exactly do these relationships entail and why are they so important for Greenyard’s future? Charles-Henri Deprez, Managing Director Fresh division explains.

1 2020 has been a successful year for Greenyard’s long-term relationships with customers. What do you think is the key to their success?

It’s important to understand that the retail world is evolving rapidly, and competition is getting fiercer. Consumers are increasingly in control: they choose what they want to buy, where they buy it, when they buy it, and how they buy it. This means retailers need to find ways to differentiate themselves. The fruit and vegetables category lends itself perfectly for this. Not only is this category growing in popularity with increasingly health-conscious consumers, but its sheer diversity provides endless possibilities to make a difference.

2 Why is Greenyard the ideal partner to help retailers develop their fruit and vegetables category?

As one of the largest providers of fruit and vegetables in all its forms, we have the product expertise and the wide range needed to create a tailor-made offering. For example, some retailers may want to focus

Charles-Henri Deprez, Managing Director Greenyard Fresh

28 /

on locally grown produce. We then use our scale and our extended network to help realise this goal and systematically increase the quantities of locally sourced produce on the shelves. Other retailers may want to differentiate themselves by offering maximum convenience to consumers. In this case, we will focus on the joint development of convenience solutions, such as our mealkits.

3 How does it work in practice?

Simply put, we make sure that the shelves of our customers are filled with a wide variety of high-quality fruit and vegetables, all year round. We have the ability to completely unburden our customers in the fruit and vegetables category. We can take care of the entire supply chain, including sourcing, quality control, transport, logistics, traceability and packaging. This enables us to optimise operations, for example by combining transports and deliveries. It means a shift from daily discussions on prices of individual products to end-to-end value chain optimisations.

4 Why are long-term relationships beneficial for all parties involved in the chain?

They are a win-win for everyone, as this unique way of working allows us to actually improve life together, and throughout the chain. Consumers get to enjoy a wide variety of high-quality fruit and vegetables all year round, at good prices and in line with evolving tastes and demand. Growers have a greater guarantee that their produce will be sold and that they will receive a fair price for it. Waste is reduced, because production is more in line with the actual demand in the market, which is beneficial for the planet. Retailers are unburdened and able to focus more on the consumer. And as for Greenyard, we can grow our business in a more stable and sustainable manner, allowing us to deepen the range and grow our market share over time. At the same time, we stay away from the volatility of transactional trading, and continue adding value in every step.

5 If these long-term relationships are so great, why is no one else doing this?

Greenyard has been advocating this model for more than 20 years. But more importantly, we have already put this model into practice with several European retailers, where we have been able to grow the fruit and vegetables category significantly. But we are certainly not the only supplier to apply this model. Many other companies are thinking along the same lines, and not just in the fruit and vegetables category. We expect that in ten years’ time it will have become common practice for many suppliers. This however is easier said than done. To really maximise the benefits of this approach, there are quite some – critical – elements you need to fully control. And that is the advantage we have: we have a lot of experience with this innovative business model, we have the scale, the knowhow and the network to make it work, and equally important: we have an unparalleled, and extensive product portfolio of fruit and vegetables.

GREENYARD ANNUAL REPORT 2020/2021 / 29

A unique business model

The road to better sourcing

The best of nature, available all year round

Greenyard sources its fruit and vegetables from a very extensive network of highly dedicated growers around the world. “To ensure that some of our most popular and in-demand categories are available all year round, we are strengthening our strategic co-operations with the world’s greatest growers”, says Sander Moret, Category Manager for Mango.

Greenyard has been working with many of its growers on a permanent basis for many years, in some cases even decades. These long-standing collaborations can take on many forms, from guaranteed volumes and contract growing to full-blown joint ventures. “They can also include training programs on more efficient and more sustainable agricultural practices. By stimulating technological innovation and investing in long-term relationships, many of our growers have had the opportunity to build a healthy and stable business.# A unique business model

Where health and convenience meet

Time-saving solutions for health-conscious consumers Product innovation has always been key to the success of Greenyard’s Long Fresh segment. “It is all about listening to our customers and working together with them to develop new products that meet the growing demand for healthier and more convenient food products”, says Dominiek Stinckens, Managing Director of Greenyard Prepared. Convenience foods have clearly developed into a trend and growth area these past years. There is an increasing interest in healthy and high-quality foods, but consumers might sometimes lack the time to create a dish from scratch. “People may have less time to cook, but that doesn’t mean they want to compromise on health or taste”, explains Dominiek Stinckens. “Convenience products that combine healthy ingredients, high nutritional value and great taste are in greater demand than ever before.”

Product innovation is key

“It’s been a long time since we were a bulk producer of standard products like canned peas and carrots”, says Dominiek Stinckens. “Today, we are a company specialised in developing and producing innovative convenience products that cater to the needs of modern, health-conscious consumers who are looking for time-saving solutions. We are not simply creating food products; we are providing leisure time.”

Dominiek Stinckens, Managing Director Greenyard Prepared

Greenyard offers a wide range of convenience products, including soups, sauces, salsas, dips, bean dishes, pastas and ready meals. “On top of that, we are rapidly expanding our organic and vegan product offerings and we have developed a range of mushroom and pulse products specifically for people who want to diversify their diet with meat alternatives”, adds Dominiek Stinckens. Innovative packaging and adapted portions improve life by making it easier. “The time when only cans and glass jars left our production plants is long gone. Today, we offer products in a wide range of packaging, including pouches, cups and jugs, in sizes suitable for every type of family. We also keep a close eye on the recyclability of our packaging, while gradually reducing the use of materials”, says Dominiek Stinckens. This undeniable drive for innovation is also reflected in the sales numbers of Greenyard’s Prepared division. “About 30% of our sales come from innovations and recipes that were developed in the last five years. If we go back another five years, this number reaches well above 50%.”

Focus on R&D and co-creation

Close collaboration with customers is important for all new product developments. “As their partner for a high-growth category, we co-create new products that help them gain market share and new customers.” “Developing new products and recipes is a highly complex innovation process. It is completely different from combining some ingredients in your own kitchen at home”, emphasises Dominiek Stinckens. “Our Research & Development team combines different disciplines and includes food technologists, quality managers, culinary advisors and even a renowned former chef. They work closely together with our customers’ experts and marketeers at every stage, from the initial intake from consumer panels to the transfer of all data on the ingredients used. The flexibility and expertise of our team has made us the go-to-partner for many of our customers in the retail and food service industry.”

Secure growth at robust profitable margins

The Long Fresh segment comprises Prepared and Frozen divisions, aiming to further develop:
* Diversified base: retail and food service clients all over the world
* Increased market share: extend production and sales in high-growth, high-margin segments
* Customer intimacy: intensive relationships with key accounts by co-developing client-specific and innovative product offering
* Product innovation: focus on convenience concepts and health-conscious consumers
* Operational excellence: efficient production, cost reduction and balanced product portfolio

Building for growth

Technology for better and healthier lifestyles

Maarten van Hamburg, Managing Director of Greenyard’s Bakker division Greenyard built two new high-tech distribution centres to service one of the largest retail groups in the Netherlands and Belgium. Both warehouses became fully operational over the course of 2020. “Not only do they enable us to meet growing demand for our products, but they also significantly improve the quality, cost-efficiency and sustainability of our services”, says Maarten van Hamburg, Managing Director of Greenyard’s Bakker division. The Bakker division within Greenyard Fresh focuses on a long-term partnership with one of the largest retail groups in Europe.# Bakker has a long history with a major Dutch retailer going back more than 60 years”, explains Maarten van Hamburg. “Today, we are a strategic partner for the entire group, which now also includes a retail network in the Czech Republic and – since the 2019 merger – another major retailer in Belgium. We take care of a wide range of aspects that concern the fruit and vegetables category: sourcing, quality control, logistic services, ripening, packaging, marketing, R&D, packaging and transport.”

Extra space for a growing business

The partnership is a great success and business continues to grow. “The time was right to invest in extra, dedicated warehouse space to service our customer”, says Maarten van Hamburg. Two strategic locations were selected: Ridderkerk, the Netherlands, which is close to the port of Rotterdam, one of the biggest entry points of fruit and 38 / vegetables in Europe, and Boom, Belgium, right in the center of the Belgian market.

“Building these dedicated distribution centres from scratch was an enormous opportunity for us”, says Maarten van Hamburg. “The logistics for fruit and vegetables is a highly specialised business. We service our customer with more than 400 different types of fruit and vegetables. Every one of them has its own demands in terms of temperature, climate and humidity and needs to be treated specifically to guarantee optimal quality.” The new warehouses have different climate zones, which are easily expanded or reduced depending on the season or changing customer demands. There are specialised ripening cells for bananas, separate rooms with higher humidity for leafy vegetables and dedicated spaces for added value packaging.

“The logistics of fruit and vegetables is a highly specialised business. Every product has its own requirements in terms of cooling, humidity, storage and packaging.” – Maarten van Hamburg

GREENYARD ANNUAL REPORT 2020/2021 / 39

A unique business model

New citrus line

Next level of chain specialisation

Among the many eyecatchers in the new Ridderkerk Distribution Centre is a brand new, automated citrus line. “It is one of the most advanced installations of its kind in Europe and takes quality control and fruit processing to the next level”, states Maarten van Hamburg, Managing Director of Greenyard’s Bakker division. Citrus fruit – including lemons, oranges and tangerines – is a mature and high-volume product group, for which there is a constant consumer demand. Our overseas supply – from Africa and South-America – comes by boat and is delivered in bulk, so everything needs to be checked, packed and labelled.”

Enormous amount of data

The new citrus line automates the entire process, from initial quality control to packaging and palletisation, using more than 150 seamlessly integrated machines. “At the entry point, quality is monitored using infrared lasers and camera inspection, which allows us to control and treat each individual product separately and automated. All data – more than 100 items for every piece of fruit – are sent to the Manufacturing Executing System (MES) software. It provides us with valuable information to give detailed feedback to growers for each batch we receive.”

Subsequent steps in the process are fully automated: the products are sorted, packed in crates, palletised and then loaded in trucks. “The new citrus line obviously brings many advantages for our company and our customers: better quality, improved efficiency, lower costs and reduced waste. It’s exciting to see how we can use advanced technology to take our chain specialisation to the next level”, concludes Maarten van Hamburg.

40 / Boom, Belgium

Surface of 23,000 m2
90 employees
28 banana ripening rooms
Operational since November 2019

Co-creation with the customer

The warehouses were developed in co-creation with our customer. “This was the ideal moment to sit down and talk about the next steps in our collaboration. We may have the product expertise and technical know-how, but it is equally important to take into account market trends and consumer insights. Through continuous dialogue, we developed a common vision for our future logistics: the capacity that will be needed, service levels for delivery, new and sustainable packaging, product innovation, and so on.”

Safety and sustainability

Both distribution centres use the latest technology to optimise energy efficiency, maximum isolation and advanced cooling systems. “These are investments that enable us to reduce both our costs and our environmental impact. Last but not least, our focus was also on creating a safe and comfortable working environment for our people. We are in a 24/7 business and it can be hard work sometimes. So we think it’s our duty to provide our colleagues with modern and efficient workspaces that guarantee their safety.”

IN A NUTSHELL

Investing in the asset base, and logistics and production capabilities
Developing asset base structure
State-of-the-art production and logistics
Delivering optimised and cost-efficient services
Improving quality, safety and sustainability
Expanding added-value services
Broadening the product specialism

Ridderkerk, the Netherlands

Surface of 30,000 m2
150 employees
Dedicated automated line for citrus processing and packaging
Operational since September 2020

GREENYARD ANNUAL REPORT 2020/2021 / 41

A unique business model

Improving life step by step

How sustainability creates value for every link in the chain

Sustainability has always been at the heart of our company, from our origins as a family business to the multinational we are today. As a major supplier of healthy food products, we improve life by contributing to healthier lifestyles and a more sustainable way of feeding the world’s growing population.

“We are a connecting partner in the food supply chain, which means we bear a great responsibility towards our growers and towards nature itself to create ever more sustainable food value chains”, says Florens Slob, Group Sustainability Director.

The fruit and vegetables industry depends like no other on natural resources, healthy soils, biodiversity and favourable climate conditions. “We consider it our duty to limit the impact of our activities and to secure access to fruit and vegetables for future generations”, says Florens Slob. “Mere compliance with basic regulations and ticking boxes is not good enough. Our sustainability ambition is not just designed to make us look good. We genuinely want to improve life: stimulate healthier lifestyles, create more sustainable food supply chains and enable growers to receive a fair share for their efforts.”

Creating economic value

Sustainability efforts often go hand in hand with creating economic value. “Some of this is quite obvious”, says Florens Slob. “Reducing the consumption of water, energy, packaging or waste inevitably leads to costs. Moreover, we are operating within a complex and global value chain which still contains inefficiencies. While we have harvested the low hanging fruits already, there are still opportunities to reduce waste and limit our environmental impact by streamlining logistics, optimising storage and creating a better balance between supply and demand.”

“Sustainability is essential to the very core of our business and the future growth of our company.” – Florens Slob

42 / Greenyard is in the perfect position to realise this transition. “We have a thorough knowledge of the entire chain and our unique business model connects growers closer to our customers, creating a shorter, more efficient and more sustainable food supply chain. Moreover, annually supply about three million tonnes of fruit and vegetables all over the world. The sheer size of our business means even the smallest steps we are taking have a real and tangible impact.”

Working with the entire chain

All the ingredients are there, positioning Greenyard as the connecting partner in the middle of the food supply chain. But it is obvious that we cannot realise this transition on its own. “We team up with our customers to define where we want to go together and how we can create added value. Together we need to build awareness and involve consumers, tell them the story behind our products, about the growers, their farms and their hard work and think also about the challenges they face. Making the right choices implies that you have sufficient knowledge. For us, and for the retailer and their consumers also. This is a journey, which should lead to making the choice for healthy the easy one and the choice for sustainable solutions a logical part of the same equation.”

GREENYARD ANNUAL REPORT 2020/2021 / 43

A unique business model

Water risk mapped for 100% of our grower base

Four commitments

Discover the full results for the 2020/2021 financial year in our upcoming Sustainability Report.

100% recyclable consumer packaging
100% of our grower base in risk origins certified for social compliance by 2025
50% reduction in greenhouse gas emissions

44 / Our Sustainability Roadmap

Responsible sourcing to ensure a food supply chain that is both environmentally and socially sustainable.
Reducing the environmental footprint of our operations with a focus on energy, water, packaging and waste.
Teaming up with our customers to develop and promote healthy and sustainable food concepts.

Building on our achievements from the past years, Greenyard is now ready to accelerate on our sustainability journey. Our roadmap will be presented in more detail in our upcoming Sustainability Report, along with updated results for our commitments.

GREENYARD ANNUAL REPORT 2020/2021 / 45

46 / Greenyard at a glance / 47

GREENYARD ANNUAL REPORT 2020/2021

Greenyard at a glance

12 production sites (Frozen and Prepared)
27 distribution centres (Fresh)
Approx.# GREENYARD ANNUAL REPORT 2020/2021

Financial report

9 000 employees
Sales € 4 416,2m
Adjusted EBITDA (post-IFRS 16) € 156,9m
Adjusted EBITDA-margin (post-IFRS 16) 3,6%
Approx. 2 780 kton sales volume
> 80 sales countries
Customers 19 out of eu top-20 retailers
Net Financial Debt € 339,9m
Prot € 1,2m
Leverage 2,9x

GREENYARD ANNUAL REPORT 2020/2021

Financial report

In good health

Message from the CFO

The message of the co-CEOs highlights Greenyard’s ambitions for the future and makes it clear we are turning the transformation page. How does that translate into the nancial results? As demand for healthy food – and fruit and vege- tables in particular – structurally increases, we help our customers to oer consumers the best possible categories, varieties, origins and tastes, whether in fresh, frozen or prepared form. At the same time, we are streamlining and aligning our entire supply chain to the needs of our customers, allowing us to man- age and organise our broad oering in an increasingly cost-ecient way.

“Combining short and cost-efficient supply chains with the best possible fruit and vegetables offering in fresh, frozen and prepared form, has proven to be a winning model.”
Geert Peeters, CFO Greenyard

This combination proves to be a winning model, with an increase in our sales of 8,7% compared to last year. We expect to further grow in the coming years, although we will probably see a temporary ‘attening out’ when leaving the COVID-19 period, which stim- ulated volumes at retailers. Meanwhile, the Transformation Plan has made us more agile and efficient. We are building on this momentum with several continuous improvement initiatives in domains such as transport, sourcing and production. Some of these initiatives will also be strengthened by strategic investments. This year we realised a margin of 3,6%, landing at an adjusted EBITDA € 156,9m compared to € 133,4m last year. We expect our adjusted EBITDA to continue to grow next year and exceed € 165,00m. In addition, I am very pleased that our focus on nan- cial results and cash generation has allowed us to decrease our nominal debt signicantly. Our oper- ational cash generation was complemented by a € 50,0m capital increase, which led us – much sooner than expected – to reduce leverage to 2,9x, down from above 4,4x last year. Based on our new three-year nancing, we have a strong nancial basis to support our promising strategy and business growth. Thanks to a decreasing nancing cost on top of increasing operating results, the net result of € 1,2m will prove to have signicant upside potential as well.

More than ever, people are making very conscious choices for a healthy lifestyle. Consumers are looking for healthy, tasty and convenient food solutions. This results in a higher spending on fruit and vegetables per person. At the same time, consumers more fre- quently combine dierent categories of fruit and veg- etables, where they can benet from our complemen- tary oering in fresh, frozen and prepared products. We have also seen clear volume increases from our integrated long-term customer relationships, prov- ing that customers do care about service level, close collaboration, aligned ambitions and short supply chains. Today, around 60% of group sales and more than 70% of Fresh sales already come from customers with whom we have a formal collaboration. COVID-19 has once again proven the importance of robust supply chains. Robust meaning limited in the number of middlemen and product stops. Managing our supply chain to keep it as short as possible – and at the same increase its sustainability – remains our ultimate goal.

GREENYARD ANNUAL REPORT 2020/2021

Key nancial information

Sales and adjusted EBITDA per operating segment

Report of the board of directors

Comments on the consolidated nancial statements

1. Consolidated income statement

2. Consolidated statement of nancial position

3. Consolidated statement of cash ows

Dividends

Position of the company: risks and uncertainties

Sustainability and Research & Development

1. Sustainability

1.1. Promoting people’s well-being (PEOPLE)

1.2. Fostering responsible resource use (PLANET)

1.3. Assuring food availability (PROSPERITY)

1.4. Stimulating sustainable trade (PEACE)

1.5. Strengthening collaboration in the chain (PARTNERSHIP)

2. Research & development

Important events after balance sheet date

Corporate governance statement

1. Board of Directors

1.1. Composition of the Board of Directors

1.2. Role and responsibilities of the Board of Directors

1.3. Evaluation of the Board of Directors – self-assessment

2. Advisory Committees to the Board of Directors

2.1. Audit Committee

2.2. Nomination and Remuneration Committee

3. Attendance at Board of Directors and Advisory Committees meetings

4. Executive Management

4.1. Composition of the Executive Management

4.2. Role and responsibilities of the Executive Management

4.3. The Leadership Team

4.4. Diversity in the Executive Management and Leadership Team

5. Statutory auditor

6. Rules for preventing conicts of interest

6.1. Principles

6.2. Application of the conict of interest procedure in accordance with article 7:96 BCAC

6.3. Application of the conict of interest procedure in accordance with article 7:97 BCAC

6.4. Policy concerning transactions with directors or Leadership Team members not covered by article 7:96 BCAC

7. Internal governance rules: Dealing Code – Code of Conduct

8. Remuneration report

8.1. Statement on the remuneration policy for directors and members of the Leadership Team with respect to AY 20/21

8.2. Remuneration of the non-executive directors

8.2.1. Introduction

8.2.2. Remuneration in AY 20/21

8.3. Remuneration of the members of the Leadership Team

8.3.1. Introduction

8.3.2. Remuneration of the co-CEOS in AY 20/21

8.3.3. Remuneration of the other members of the Leadership Team in AY 20/21

8.3.4. Annual short-term incentive components and targets for AY 20/21

8.3.5. Long-term incentive plans

8.4. Evolution of the remuneration and pay-gap information

8.5. Severance pay for members of the Leadership Team

8.6. Claw-back

8.7. Information on shareholder vote

9. Other information to be communicated pursuant to article 3:6 (§1) BCAC and article 34 of the Royal Decree of 14 November 2007 on the obligations of issuers of nancial instruments admitted to trading on a regulated market

10. Internal control and risk management

10.1. Control environment

10.1.1. General

10.1.2. Audit Committee

10.1.3. Internal audit

10.2. Risk management systems and internal control

10.3. Financial reporting and communication

10.4. Oversight and monitoring

Information for shareholders

1. Shares

2. Share trading evolution

3. Capital structure

4. Shareholder structure

5. Major changes in shareholder structure

6. Contacts

7. Financial calendar

Consolidated nancial statements

Consolidated income statement

Consolidated statement of comprehensive income

Consolidated statement of nancial position

Consolidated statement of changes in equity

Consolidated statement of cash ows

Notes to the consolidated nancial statements

1. General information

2. Signicant accounting policies

2.1. Basis of preparation

2.2. Changes in accounting policies and disclosures

2.3. Basis of consolidation

2.4. Summary of signicant accounting policies

3. Critical accounting judgements and key sources of estimation uncertainty

3.1. Critical judgments in applying the entity’s accounting policies

3.2. Key sources of estimation uncertainty

4. Segment information

4.1. Information about major customers

4.2. Geographical information

5. Notes to the consolidated income statement

5.1. Sales

5.2. Operating expenses

5.3. Personnel expenses

5.4. Other operating income/expense

5.5. Net nance income/cost

5.6. Income tax expense/income

5.7. Earnings per share

6. Notes to the consolidated statement of nancial position

6.1. Property, plant & equipment

6.2. Goodwill

6.3. Other intangible assets

6.4. Leases

6.5. Investments accounted for using equity method

6.6. Other nancial assets and liabilities

6.7. Deferred tax assets and liabilities

6.8. Inventories

6.9. Trade and other receivables

6.10. Cash & cash equivalents and bank overdrafts

6.11. Financial instruments by category

6.12. Issued capital, share premium and other capital instruments

6.13. Share based compensation

6.14. Pension and other employee benet liabilities

6.15. Provisions

6.16. Interest-bearing loans

6.17. Trade and other payables

6.18. Risk management policy

6.18.1. Market risk

6.18.2. Credit risk

6.18.3. Liquidity risk

6.18.4. Financial assets and liabilities – fair value

6.18.5. Capital structure

6.18.6. Fair value hierarchy included in the statement of nancial position

7. Other elements

7.1. Subsidiaries, associates, joint ventures and investments recorded at cost

7.2. Main disputes

7.3. O-balance sheet commitments

7.3.1. Commitments concerning purchases of property, plant and equipment and fresh vegetables

7.3.2. Factoring

7.3.3. Bank and bond covenants and undertakings

7.3.4. Contingent liabilities

7.4. Related parties

7.5. Events after balance sheet date# Key Financial Information

Key Financials (in €'000 000)

	AY 20/21	AY 19/20	Difference
Post-IFRS 16 key financials
Sales	4,416.2	4,061.0	8.7%
Adjusted EBITDA (post-IFRS 16)	156.9	133.4	17.6%
Adjusted EBITDA-margin % (post-IFRS 16)	3.6%	3.3%
Net result continuing operations	1.2	-68.0
EPS continuing operations (in €)	0.01	-1.59
NFD (post-IFRS 16)	572.9	660.1	-13.2%
Pre-IFRS 16 key financials
Adjusted EBITDA	116.6	95.7	21.8%
Adjusted EBITDA-margin %	2.6%	2.4%
NFD	339.9	425.6	-20.1%
Leverage	2.9	4.4

Sales increased by 8.7% to € 4,416.2m in AY 20/21. The growth in sales is coming from both the Fresh and Long Fresh segments. The increasing volumes linked to the intensification and ramp-up of the integrated customer models are the main driver of this growth. At the same time, thanks to increased consumer awareness to maintain a healthier lifestyle, and a shift to at-home cooking, due to lockdowns consequent to COVID-19, the retail volumes increased. This was however at the expense of the food service sector which significantly slowed down. Organic growth amounted to 9.9%, slightly counterbalanced by foreign exchange headwinds (-0.8%) and the effect of the recent divestitures and divestments (-0.4%). Also adjusted EBITDA (post-IFRS 16) shows a strong increase by 17.6% to € 156.9m, (for reference, pre-IFRS 16: increase by 21.8% to € 116.6m) directly linked to the growing volumes under the integrated customer models, positive price and mix variances as well as the full year impact of transformation initiatives initiated last year and new continuous improvement actions being implemented mainly in the domains of sourcing, transport and procurement. Greenyard did not record any EBITDA adjustments in relation to COVID-19, as margins from extra volumes were more or less compensated by extra costs incurred to secure sourcing and operations. Net result from continued operations shows the return to profit of € 1.2m versus a loss of € -68.0m last year. This improvement is mainly driven by the operational and commercial transformation, moreover, last year was highly impacted by impairments/losses on sale of subsidiaries and non-recurring transformation costs. Without leasing debt, net financial debt decreased further by € 85.7m to € 339.9m at 31 March 2021. This translates into a leverage of 2.9x, down from 4.4x last year. The decrease is driven by an increase in operating profit and an active group-wide working capital management, whilst continuing to invest into the operations and long-term commercial relationships. As to indebtedness and leverage, Greenyard succeeded in securing a stable financing for the coming years by refinancing its bank debt in March 2021, including a capital increase of € 50.0m and a reserved tranche of € 125.0m for the repayment of its outstanding convertible bond, maturing in December 2021. Further information is provided under note 6.16. Interest-bearing loans. Post-IFRS 16, at 31 March 2021 Net financial debt amounted to € 572.9m of which € 232.9m lease liabilities.

1 Please refer to Financial definitions for the definition.

EBIT - Adjusted EBITDA

	AY 20/21				AY 19/20
	Fresh	Long Fresh	Unallocated	TOTAL	Fresh	Long Fresh	Unallocated	TOTAL
	€'000	€'000	€'000	€'000	€'000	€'000	€'000	€'000
EBIT	28,632	25,564	-2,711	51,485	-8,813	12,918	-6,681	-2,576
Depreciation and amortisation	62,390	33,818	1,383	97,591	57,313	37,382	1,181	95,876
Impairment goodwill	-	-	-	-	-	-	-	-
Impairment property, plant & equipment	-	1,414	-	1,413	-	7,566	-	7,566
Impairment other	101	420	-	521	-	-	-	-
EBITDA	91,121	61,215	-1,327	151,009	48,500	57,866	-5,500	100,866
Reorganisation costs and reversal of provision for reorg.	4,280	335	-237	4,377	57	-998	401	-540
Disposal project costs	-	789	-117	673	144	1,186	211	1,541
Financing project costs	-	-	251	251	456	170	3,114	3,741
Costs related to legal claims	3,233	1,695	-	4,927	2,463	494	81	3,038
Impairment long-term receivables	-	-	-	-	780	-	-	780
Result on change in control of equity accounted invest.	-	-	-	-	1,375	-	-	1,375
Result on sale of subsidiaries	-2,889	-	-	-2,889	22,538	-	-	22,538
Result on sale of assets	-622	-	4	-618	-3,814	81	-	-3,733
Listeria related net result	-	-1,367	707	-660	-	-1,746	-	-1,746
Other	-473	-119	13	-580	773	223	443	1,439
Adjustments	3,528	1,332	621	5,481	24,774	-589	4,249	28,435
Divestitures (not in IFRS 5 scope)	415	14	-	429	3,030	1,112	-	4,141
Adjusted EBITDA (post-IFRS 16)	95,064	62,562	-706	156,919	76,303	58,389	-1,250	133,442
IFRS 16 impact	-35,423	-4,573	-371	-40,367	-32,902	-4,470	-369	-37,741
Adjusted EBITDA	59,641	57,989	-1,077	116,552	43,401	53,919	-1,619	95,701

EBIT from continuing operations amounted to a positive € 51.5m compared to a loss of € -2.6m last year. In AY 20/21 impairment and non-recurring adjustments were far more limited than last year. As to Property, plant & equipment (and other) impairments, last year we accounted for € -7.6m of impairments, while this year it was limited to € -1.9m. This mainly relates to bringing the equipment of Greenyard Prepared Netherlands to its fair value. As to non-recurring adjustments, these decreased from € -28.4m last year to € -5.5m this year. Last year was mainly impacted by the accounting loss on biological assets triggered by the sale of Greenyard Flowers UK. Moreover, disposal and financing project costs were incurred relating to several corporate finance processes aiming to deleverage and stabilize our bank financing as part of the Transformation Plan. The adjustments this year benefit on one hand from the gain on the sale of Logistics Portugal (included in the result on sale of subsidiaries), on the other hand, non-recurring costs occurred to make the organisation fit for the future and for settlements or provisions for legal disputes.

Reconciliation Net Financial Debt

	31 March 2021	31 March 2020
	€'000	€'000
Cash and cash equivalents	-81,250	-132,709
Restricted cash	-	-
Interest-bearing loans (non-current/current)	413,792	550,107
Lease liabilities (non-current/current)	235,445	235,191
As reported	567,986	652,588
Net capitalised transaction costs related to refinancing	2,864	2,889
Net value of the conversion option at inception after amortisation	2,008	4,613
Net financial debt (post-IFRS 16)	572,857	660,090
IFRS 16 impact	-232,911	-234,509
Net financial debt	339,946	425,581

Sales and Adjusted EBITDA per Operating Segment

We present our segment information based on adjusted EBITDA pre-IFRS 16 and post-IFRS 16, in transition to a full post-IFRS 16 EBITDA segment reporting in 21/22.

Key segment figures – FRESH

	AY 20/21	AY 19/20	Difference
Post-IFRS 16 segment figures
Sales	3,592.7	3,263.4	10.1%
Adjusted EBITDA (post-IFRS 16)	95.1	76.3	24.6%
Adjusted EBITDA-margin % (post-IFRS 16)	2.6%	2.3%
Pre-IFRS 16 segment figures
Adjusted EBITDA	59.6	43.4	37.4%
Adjusted EBITDA-margin %	1.7%	1.3%

Fresh sales increased by +10.1% YoY, whereby sales within the integrated customer model increased by 22.3%, including the ramp-up of some of these long-term relationships. Retail sales growth was in most geographies stimulated by COVID-19 induced measures of different local authorities, resulting in a shift to at-home cooking, in parallel to increased consumer awareness to maintain healthy lifestyles. The segment showed an organic growth of +11.2%, with slight foreign exchange headwinds of -0.6%, and M&A and divestitures impact of -0.5%. Greenyard was able to accelerate the positive trend in its adjusted EBITDA by realising efficiency gains on the back of strong topline growth, reinforced by the full year impact of the transformation initiatives initiated in the previous year as well as newly defined continuous improvement actions in the reporting year. Together with volume growth, this has resulted in a clear recovery of the margin from 2.3% to 2.6%. The adjusted EBITDA (post-IFRS 16) increased by +24.6% YoY.

Greenyard managed to make the Fresh operating margin more stable and robust towards the future as a growing share of sales is being generated in the integrated customer models which are long-term oriented and based on a cost-plus or target-margin logic. At 31 March 2021, more than 70% of its Fresh sales were generated within these long-term agreements.

Key segment figures - LONG FRESH

	AY 20/21	AY 19/20	Difference
Post-IFRS 16 segment figures
Sales	823.5	797.6	3.2%
Adjusted EBITDA (post-IFRS 16)	62.6	58.4	7.1%
Adjusted EBITDA-margin % (post-IFRS 16)	7.6%	7.3%
Pre-IFRS 16 segment figures
Adjusted EBITDA	58.0	53.9	7.5%
Adjusted EBITDA-margin %	7.0%	6.8%

In its Long Fresh segment, Greenyard was able to generate an important volume increase in retail, while at the same time suffering from the temporary loss of volumes in food service (from 20% share of sales in AY 19/20 to 13% in AY 20/21). As of the last weeks of the previous fiscal year, the COVID-19 induced quarantine measures resulted in a shift from out-of-home consumption to at-home consumption. At the same time, new sales contracts and an increasing share of sales in higher priced products a.o. convenience and fruit, resulted into a total 3.2% growth, proving a continued strengthening of the business. The segment showed an organic growth of +4.9%, slightly countered by -1.4% foreign exchange and -0.3% M&A and divestitures impact.# Report of the board of directors

Comments on the consolidated financial statements

These comments relate to the consolidated financial statements of Greenyard NV (‘the Company’) and its subsidiaries (together, ‘the Group’) for the year ended on 31 March 2021.

1. Consolidated income statement

Sales

Sales increased by 8,7% to € 4 416,2m in AY 20/21. The growth in sales is coming from both the Fresh and Long Fresh segments. The increasing volumes due to intensiﬁcation and ramp-up of the long-term commercial relationships are the main driver of this growth. At the same time, thanks to increased consumer awareness to maintain a healthier lifestyle, and a shift to at-home cooking due to lockdowns consequent to COVID-19, the consumption at retail was stimulated. This was however at the expense of the food service sector which signiﬁcantly slowed down. Organic growth amounted to 9,9%, slightly counterbalanced by foreign exchange headwinds (-0,8%) and the eﬀect of the recent divestitures and divestments (-0,4%). Fresh represents 81,4% of consolidated sales, while Long Fresh represents 18,6%.

Gross profit

Gross proﬁt has increased by € 49,6m from € 247,7m to € 297,3m (+20,0%), following the continued top line growth. Moreover, the gross proﬁt margin improved by 63bps (from 6,1% to 6,7%). In Fresh, the margin increase is driven by eﬃciency increases following a strong topline evolution, further revision of the proﬁtability of our product/service portfolio, and transformation eﬃciency achievements in the domains of transport and sourcing. The margin increase in Long Fresh is driven by a relentless focus on eﬃciency improvements, a positive impact of new sales and purchase contracts and an increasing share of sales in higher-end products. The % margin improvement in both segments was realised despite the fact that extra operating costs due to COVID-19 could not be recharged to clients.

Earnings before interest and tax (EBIT)

EBIT has improved signiﬁcantly by € 54,1m from € -2,6m to € 51,5m given the increased gross proﬁt for AY 20/21. Moreover, selling, general and administrative expenses slightly decreased to 5,8% of sale compared to 6,0% in AY 19/20 thanks to the important sales growth and economies of scale across countries, departments and divisions. As mentioned in the section on non-recurring adjustments, last year’s EBIT also suﬀered from a PP&E impairment and a loss on sale of subsidiaries.

Net finance income / cost

Net nance cost decreased by € 13,6m YoY to € 47,2m mainly thanks to lower interest rates on bank borrowings because of steadily decreasing debt usage and lower grid following an improved leverage ratio, as well as lower costs on additional funding, such as the factoring and leasing debt (respectively € 0,5m and € 1,1m). The bank and other nancial costs in AY 20/21 mainly relate to write-oﬀs of nancial assets for an amount of € 1,9m (€ -1,8m in AY 19/20). Furthermore, exchange rate losses impacted these costs by € 1,6m (€ -3,1m in AY 19/20). Last year also included fees in relation to the bank waiver process.

Income tax expense / income

The income tax expense for AY 20/21 amounted to € 3,1m versus € 4,6m last year. This implies a consolidated eﬀective tax rate of 72,19% (AY 19/20 -7,25%). The eﬀective tax rate for last year, AY 19/20, was highly impacted by non-recognition of deferred tax assets on tax losses, the loss on the sale of subsidiaries and the adjustments in the rates used to calculate deferred taxes resulting from the evolution in local tax rates. The eﬀective tax rate for AY 20/21 was positively impacted by the recognition and use of deferred tax assets which were previously not recognised. The current tax accruals result from the improved/increased prot before tax positions of several legal entities within the Group thus increasing the eﬀective tax rate. In addition, tax losses have been fully utilised by a number of legal entities in several jurisdictions for which no deferred tax assets on losses had been recognised previously. Lastly, IFRS 16 had an impact of € 1,0m on the tax position.

2. Consolidated statement of financial position

Non-current assets

Non-current assets decreased by € 9,7m to € 1 255,1m, primarily by a decrease of € 10,7m in Other intangible assets and a decrease of € 6,5m in rights-of-use assets, partially oﬀset by an increase in Property, plant and equipment of € 5,6m and Deferred tax assets of € 2,5m. The decrease in Other intangible assets is mainly driven by further amortization of the customer relationships for € 13,3m, while the decrease in right-of-use assets by € 6,5 results from depreciations exceeding the additions over AY 20/21. Property, plant & equipment increased by € 5,6m during AY 20/21, which is the combined eﬀect of € 51,1m additions, oﬀset by (i) € 42,5m depreciation, (ii) € 2,6m decrease related to the sale of Greenyard Logistics Portugal, (iii) € 1,4m increase from foreign exchange rate ﬂuctuations and (iv) the additional impairment in Greenyard Prepared Netherlands ad € 1,4m to bring the equipment to its fair value.

Current assets

Current assets decreased by € 13,1m to € 687,0m. The decrease is clariﬁed by the combination of (i) an increase in inventory for € 47,6m, almost fully in Long Fresh, to rebuild inventory after an historically low inventory level end March 20 following a strong hoarding impact at the start of the ﬁrst lock-down to secure the supply for projected sales, (ii) a decrease in cash and cash equivalents for € 51,5m back to normalized levels, and (iii) a decrease of the trade and other receivables position by € 7,5m thanks to active working capital management.

Equity

Total equity amounts to € 451,1m and represents 23,2% of total equity and liabilities at 31 March 2021 versus 20,7% last year. The increase by € 45,0m compared with 31 March 2020 mainly results from the € 50,0m capital increase in March 2021.

Non-current liabilities

Non-current liabilities decreased by € 196,7m to € 554,0m, primarily following the reﬁnancing of the interest-bearing loans before the end of the nancial year, in combination with the € 50,0m capital increase and the € 125,0m convertible bond moving from its classiﬁcation as non-current liabilities to current liabilities, given its maturity in December 2021. A separate tranche of the Facilities Agreement (foreseen to remain undrawn until the maturity of the convertible bond) is reserved for the reﬁnancing of this instrument.

Current liabilities

Current liabilities amount to € 937,0m, representing a € 128,9m increase compared 31 March 2020. This increase is driven by an increase in interest-bearing loans (€ 54,2m) and an increase in trade and other payables (€ 70,8m). The increase in interest-bearing loans is mainly the result of the shift in classiﬁcation from non-current liability of the convertible bond to current liability. The signiﬁcant increase in trade and other payables is apart from the business growth thanks to the strengthening of the nancial situation of Greenyard and active working capital management. There are no changes in valuation rules with a signiﬁcant impact on the Group’s reported results or nancial position, apart from those included in note 2.3. Basis of consolidation.

3. Consolidated statement of cash ﬂows

The net decrease in cash and cash equivalents for AY 20/21 amounted to € -51,9m to a Cash and Bank overdraft level of € -79,3m. Operating and investing activities contributed € 117,3m as compared to € 110,1m last year.

Cash ﬂow from operating activities

The cash inﬂow from operating activities amounts to € 158,8m in AY 20/21, compared to a cash inﬂow from operating activities of € 126,6m in AY 19/20, or an increase of € 32,2m. This improvement is mainly the result of a higher EBIT corrected for mainly non-cash EBIT adjustments i.e. € 38,7m, from € 112,9m in AY 19/20 to € 151,6m in AY 20/21, as explained by the successful transformation of the Group. The Group continues its eﬀorts in further improving its working capital, albeit the improvement slowed down for an amount of € -9,2m from € 19,9m in AY 19/20 to € 10,6m in AY 20/21. Main reason is that inventories increase substantially thanks to the growth of the business and good production volumes, and build-up of inventories after an historically low inventory level end March 2020 due to COVID-19 hoarding. Receivable and payable improvement is signiﬁcant thanks to active work-ing capital management and strengthening of the nancial position of Greenyard. Tax cash out is € 2,7m lower than last year as Greenyard revised its tax prepayment policy. In AY 20/21 Greenyard still beneﬁted to an important extent from the use of tax losses carried forward.

Cash ﬂow from investing activities

The cash outﬂow from investing activities amounts to € 41,6m, which is € 25,0m higher than in AY 19/20. The main explanation is the diﬀerence in disposal proceeds being € 6,7m in AY 20/21 as compared to € 20,7m in AY 19/20. Last year’s proceeds were higher due to the sale of Greenyard Flowers UK, the plant of Frozen Hungary and several German DC’s, versus the sale of Logistics Portugal and some limited assets this nancial year.# Report of the board of directors

70 / Position of the company: risks and uncertainties

The Group is required to disclose the key risks and uncertainties which have affected or may impact its financial position and results. Together with their associated mitigating actions, these risks are described below. The list does not, however, rank the risks by priority; nor is it an exhaustive description of all risks currently faced.

Availability and prices produce and consumables

The results of the Group may be adversely affected by shortages in produce and consumables. Fresh obtains most of its supply directly from a solid and extensive network of third-party growers. For all its business models, sourcing is done at market prices or price ranges negotiated in advance. In general, growers are compensated based on the prices obtained from the customers, occasionally with a minimum guaranteed price (through well monitored pre-season advances to growers) or based on a fixed price or agreed price ranges. With regard to the production of frozen fruit and vegetables, Long Fresh obtains fresh supplies from 800 farmers in Belgium, France and Poland. The UK supplies are secured by agricultural cooperatives and various dealers. For canned fruit and vegetable production, on the other hand, the supply of fresh produce is sourced from approximately 4,500 ha of agricultural land within a radius of 100 km of the main processing sites in Belgium and the Netherlands. Long Fresh sources with pre-season fixed-price annual contracts. Possible shortfalls can be compensated for by purchasing raw materials on the spot market. Depending on the type of fresh produce, the number of hectares and the expected yield (tons per hectare) are set. Despite the attention and efforts dedicated to these aspects and active supplier relationship management, the Group is also greatly exposed to temporary weather phenomena, while climate and soil conditions can also influence supplies and raw materials prices (see below).

Energy prices

Due to the high energy intensity of the production, cooling, ripening and storage processes, the Group is affected by trends in energy prices (mainly gas, electricity and oil prices). The majority of these costs are secured through mid- to long-term contracts.

Sales prices

While price increases in produce and consumables may allow the Group to renegotiate contracts with its customers or pass on the cost increase to them, in certain cases price increases cannot be passed on, in whole or in part. This is due to the bargaining power of certain key customers, such as large retail distribution chains, which affects the Group’s margins. In some cases, in the interest of greater flexibility and responsiveness, the Group applies a decentralised pricing policy, leaving it up to its local management to set product prices taking into account local demand and market characteristics. Additionally, changing climate conditions, the internationalisation of the market and the competitive environment have an important influence on pricing and profitability.

GREENYARD ANNUAL REPORT 2020/2021 / 71

Customer dependence

The Group faces a high customer concentration, i.e. its top ten customers, primarily retailers, represent approximately 73% of its total sales. The Group believes its customers make purchase decisions based on, among other things, price, product quality, consumer demand, customer service performance and desired inventory levels. Changes in customer strategies or purchasing patterns may adversely affect the operating profit, as the Group may not be in a position to sell surplus produce or hedge its position given long-term obligations towards certain growers. Customers may also reduce their purchases in response to (i) any price increase implemented by the Group, (ii) a decision to switch to another supplier or begin sourcing (or to source a greater amount of) fresh produce directly from growers and through own purchase organisations, and/or (iii) changing trends in the industry. The Group believes its customer intimacy strategy is key to its pursuit of margin and volume stability. At all levels, the Group’s management increasingly focuses on innovation and customer preferences. The Group aims to continue developing its integrated customer model, further building long-term relationships by meeting customer needs through innovative solutions in areas such as logistics and product ranges. In this context, the Group has been focusing on customer and portfolio management in order to achieve a profitable rate of growth. Its portfolio management includes a strong focus on countries, customers and products.

Integrated customer model

The Group’s strategy of establishing holistic partnerships with major retailers and vertically integrating with them may not be successful. The Group is pursuing a transition from a trading model to long-term, integrated customer relationships (implying, among other things, a change from transaction-based purchasing to category purchasing agreements). Such a relationship allows the Group to provide an assortment of products and services to its customers creating an interdependence between the Group and its customers, and making it more difficult for the relevant customers to switch supplier. Certain frictions have arisen in the course of the Group’s transition from a trading to integrated long-term customer relationships, which is proceeding at a slow pace: this transition temporarily combines high service levels with margin vulnerability, allowing adverse market conditions to generate disappointing short-term results. In addition, it cannot be guaranteed that a new long-term integrated customer relationship (post-transition) will be as profitable as the existing ones.

Climate conditions

From time to time, the Group’s growers experience crop disease, insect infestation, severe weather conditions (such as floods, droughts, windstorms and hurricanes), natural disasters (such as earthquakes) and other adverse environmental conditions. Severe weather conditions can be further exacerbated due to the impacts of climate change. These adverse environmental conditions, and more specifically unpredictable weather patterns, can result in production and price volatility. As far as possible, is the Group seeks to mitigate this risk by expanding the geographical spread of its sourcing through an extensive and global network of growers. Concerning produce from growers, the Fresh segment may work to some extent on a free consignment basis, in practice, it often shares the risk of adverse environmental conditions given its long-term relationship with growers. In addition, the Fresh segment may occasionally finance crop production of some growers and suppliers and can be adversely affected if it is not repaid or repayment is postponed due to adverse environmental conditions affecting those growers and suppliers. Where the Long Fresh segment is concerned, notwithstanding the large majority of its raw materials for processing are contracted, adverse environmental conditions may cause raw material shortages forcing the Group to buy additional volumes at higher prices on the spot market.

Report of the board of directors 72 /

Along with other elements, such as soil fatigue in fields for specific crops, weather conditions are a compelling reason for the Group to reduce its dependence on the harvest in a specific region as much as possible. This risk is mitigated by the geographical spread of the activities and by sustainable relations with the growers.

Seasonality and working capital

Seasonality is a key issue for the Group. Opposing underlying trends exist across the operating segments. Long Fresh has a production peak in the period from July to November with a corresponding inventory build-up, whereas demand is relatively stable throughout the year. This gives rise to high swings in working capital in the last two quarters of the calendar year. On the other hand, Fresh achieves a greater portion of its sales during the first two quarters of the calendar year, whereas the third and fourth calendar quarters typically have slightly lower sales and less homogenous sales patterns than the first half of the calendar year. As Fresh reports a negative working capital figure, the positive working capital of Long Fresh is partly offset at Group level. Due to high seasonality, the reduction of production capacity can greatly influence the Group’s results during high season and large inventories have to be held and financed. The Group actively manages and closely monitors working capital and liquidity, in order to cope with large swings in working capital and continuously aims at securing its funds and resources accordingly.

Geopolitical changes

Governmental measures to curb inflation and speculation about possible future governmental measures have contributed to the negative economic impact of inflation and created general economic uncertainty.# Risk Factors

Depreciation of local currencies relative to the euro may also create additional inflationary pressures in local jurisdictions that may negatively affect the Group as depreciation generally curtails access to foreign financial markets and may prompt government intervention, including recessionary governmental policies. In the past few years, the US, the EU and the UN have increased their imposition of various sanctions and embargoes on trade with countries such as Iran, Syria, Sudan and others. Similar sanctions were taken by the US and EU against the Russian Federation and subsequently by the Russian Federation against the US and the EU. As the activities and operations of the Group are worldwide, the Group and its competitors, distributors, suppliers and customers may have difficulties complying with or may suffer from such trade sanctions and embargoes. The Group’s management monitors global geopolitical trends and promptly takes the appropriate measures, where required. The geographical spread of operations and sourcing channels also partly mitigates the geopolitical risks.

Product liability

Should produce sourced by the Group be alleged to or proven to contain contaminants or bacteria affecting the safety or quality of its products, the Group may need to find alternative produce, delay the production of its products, or discard or otherwise dispose of its products. Taking any of these actions can adversely affect the results of its operations. Additionally, if the presence of these contaminants or bacteria is not alleged or discovered until after the product in question has been distributed, the Group may need to withdraw or recall the product and thus may experience adverse publicity and product liability claims. The Group may also be exposed to product recalls, including voluntary recalls or withdrawals, and adverse public relations if its products are alleged to cause injury or illness, or if the Group is alleged to have mislabelled or misbranded its products or otherwise violated governmental regulations. The Group may also voluntarily recall or withdraw products that it considers below its standards, whether for taste, appearance or other reasons, in order to protect its (brand) reputation. Consumer or customer concerns (whether justified or not) regarding the safety of the Group’s products can adversely affect its business. A product recall or withdrawal can result in substantial and unexpected expenditure, the destruction of product inventory, and lost sales due to the unavailability of the product for a period of time, all of which can reduce profitability and cash flow.

GREENYARD ANNUAL REPORT 2020/2021 / 73

The Group applies HACCP and ISO standards and Group and segment management actively monitor quality and compliance with these standards. Long-standing relationships have been developed with key growers who offer the required commitment and compliance with the Group’s quality standards and requirements.

Changes in legislation and regulations

The Group’s activities are subject to extensive regulation in the countries in which it operates, including corporate governance, labour, tax, competition, environmental and health and safety legislation. Failure to comply with existing laws and regulations could result in damages, fines and criminal sanctions being levied on the Group or the loss of its operating licenses and could adversely affect its reputation. Compliance with future material changes in food safety or health-related regulations and increased governmental regulation of the food industry (such as proposed requirements designed to enhance food safety, impose health-protection requirements or to regulate imported ingredients) could result in material increases in operating costs and could require interruptions in the Group’s operations to implement such regulatory changes, thereby affecting its profitability. There has been a broad range of regulations aimed at reducing the effects of climate change which have been proposed and adopted at national and international level. Such regulations apply or could apply in countries where the Group has or could have interests in the future. The Group reviews the impact of any changes on a regular basis, and seeks to ensure it budgets appropriately for future capital and operating expenditures to maintain compliance with environmental and health and safety regulations.

Talent attraction and retention

The Group’s future success depends on its ability to attract, retain and motivate qualified and talented employees. Being unable to do so would compromise its ability to fulfil its strategic ambitions. To enhance its recruitment pool, it has initiated a global employer brand, supporting its recruitment activities and communication with potential candidates. Furthermore, attractive development and training programmes, adequate remuneration and incentive schemes, and a safe and healthy work environment, also mitigate this risk.

Human rights and anti-corruption

Risks from the improper behaviour of employees and business partners, breaching fundamental human rights, could adversely affect the Group’s reputation and its business prospects, operating results and financial situation. It could thus be liable under human rights, corruption, environmental, health and safety laws or regulations, or fines, penalties or other sanctions. Therefore, high ethical standards are maintained throughout the entire Group at all levels with zero tolerance for corruption or bribery and any conduct which inappropriately or unreasonably interferes with work performance, diminishes the dignity of any person or creates an intimidating, hostile, exclusionary or otherwise offensive working environment. This includes discrimination, harassment, bullying or exclusion based on race, colour, religion, gender, age, national origin, sexual orientation, marital status or disability.

Exchange rate risk

The Group operates internationally and is exposed to foreign exchange risk in relation to various currencies. The US dollar and the British pound are the most important non-euro currencies. Of lesser importance are the Polish zloty and the Czech koruna. The Group’s management has introduced guidelines requiring subsidiaries to manage their foreign exchange risk against their functional currency. These guidelines require subsidiaries to hedge their entire foreign exchange risk exposure with Corporate Treasury. To manage its foreign exchange risk arising from future commercial transactions, the Group uses foreign exchange forward contracts. Although the Group engages in natural and transactional hedging, there can be no

Report of the board of directors 74 /

assurance that the Group will be able to successfully mitigate foreign exchange exposure, particularly over the long term. A case in point are concerns regarding the Eurozone sovereign debt crisis which could result in the increased volatility of euro exchange rates. Further reference is made in note 6.18. Risk management policy.

Interest rate risk

The Group’s financing positions are exposed to both fixed and floating interest rates. The Group issued a convertible bond with a fixed interest rate of 3,75%. The Group is also exposed to floating interest rates through a revolving credit facility, factoring programmes and term loans. The Group partly hedges floating interest rate exposure through interest rate swaps. Further reference is made to this in note 6.18. Risk management policy.

Credit risk

The Group is exposed to the risks associated with their counterparties being unable to perform their contractual obligations. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Group’s customers have varying degrees of creditworthiness, exposing it to the risk of non-payment or other forms of default of its contracts and other arrangements with them. To protect itself against customer defaults and bankruptcies, the Group uses the services of international credit insurance companies and also applies internal customer credit limits. Credit insurance is mandatory for all trade receivables sold to the factor company. For entities excluded from the factoring programme, the receivables are included in the credit insurance. The Group also makes advances to key suppliers, generally to secure produce in key categories. Advances made are generally interest-bearing and recovered by deductions from the payments made in respect of the produce delivered by the counterparty. Further reference is made to this in note 6.18. Risk management policy.

Financing, liquidity risk and covenant compliance

The Group is financed by syndicated term and revolving credit facilities which have been successfully amended and extended for 3 years on 29 March 2021. Furthermore, this refinancing has been complemented by a capital increase of €50m. Consequently Greenyard secured sufficient financial means to a) finance the working capital and investment needs of the business, b) repay the convertible bond that matures on 22 December 2021 and c) settle semi-annual term loan repayments from March 2022 onwards. The size of the credit facilities has been aligned based on the Group’s business plan and liquidity forecasts taking into account sufficient headroom. Moreover, financials covenants i.e. leverage ratio and interest cover, have been agreed in line with this. A continuous increase in cash generation and liquidity has been foreseen based on further sales growth and improvement of profitability margins, which has been underpinned by a 5-year business plan up to 24/25. Significant investments have been included in the plan to support this growth and further strengthen the position of the Group. Furthermore, liquidity is also dependent on the working capital conditions with suppliers and customers.# GREENYARD ANNUAL REPORT 2020/2021

75 Brexit

On 23 June 2016, the UK held a referendum in which a majority of voters approved the country’s exit from the EU, commonly referred to as Brexit. Subsequently, the British government began negotiating the terms of the UK’s withdrawal from the EU (referred to as the Article 50 procedure). The announcement of Brexit caused significant volatility in global stock markets and currency exchange fluctuations, including a sharp decline in the value of the pound sterling and the euro compared with the US dollar and other currencies. After extensive negotiations between the European Council and the United Kingdom, and two consecutive extensions of the two-year extension period provided for by Article 50 of the Treaty on European Union, a third and final extension until 31 January 2020 was granted to the UK on 28 October 2019. On 24 January, the Withdrawal Agreement between the UK and The European Union was signed and subsequently ratified on 30 January 2020, resulting in the withdrawal of the UK from the European Union on 31 January 2020. At that point in time, the United Kingdom has become a third country. The Group trades with and supplies the UK. The majority of the sales to the UK market are driven by the Group’s UK subsidiaries. These subsidiaries have good relationships with their local UK growers, strengthening the position of the Group in the UK. Based on recent experiences, the Group considers a short-term negative impact associated with importing goods (fruit and vegetables) into the UK and / or sales from the mainland subsidiaries to the UK, to be limited. Brexit might therefore (in time) also have positive effects on the UK subsidiaries’ sales since import tariffs will increase. The Group has therefore identified and acted upon a number of initiatives that need to be taken to prepare for and mitigate the effects of a (hard) Brexit. These initiatives include setting up the necessary customs and VAT procedures, as well as applying for certifications, such as AEO certification, checking regulatory requirements for specific products, preliminary movements of stock, etc. In addition, clients and suppliers had been contacted, where required, to discuss the next steps as well as the supply and incoterms to be applied. On 24 December 2020, the negotiators of the European Union and the United Kingdom reached a new agreement, indicating the new rules applicable as of 1 January 2021, including on travel and border control, trade of goods, including food products, and cooperation in the field of terrorism and international crime. So far, the group experienced limited operational issues, and – a few months into the Brexit – no material commercial impact has been incurred or remains estimated. Furthermore, additional costs (duties, …) have remained immaterial up to this point. It is not possible to determine the precise long-term impact that the referendum, the UK’s departure from the EU and/or any related matters will have on the Group.

COVID-19 pandemic

In the period March to May 2020, the Group has been suddenly confronted with locking down of economies in its countries of operation and of produce origin consequent to government measures to slow down the COVID-19 pandemic. With the safety of its employees as a first priority, the Group immediately issued all necessary guidelines and the safety measures to protect its workforce. On one hand, for workers that needed to be physically present in the warehouses, distribution centers and production facilities, and on the other hand for most of the administrative staff through home-working measures. As a result, the Group was able to ensure business continuity and COVID-19 related absence rates remained low apart from a brief, temporary hike. As the Group is mainly selling to retailers and this distribution channel boosted due to closure of the catering industry and the hoarding reflex of many consumers, this stimulated volumes but triggered also significant extra costs that could not be recharged. Only part of the food service related to catering, in which Long Fresh is to a limited extent active, was scaled down. The Group decided to continue full operations in all countries and was able to secure the vital fresh and long fresh F&V produce supply. To fulfil this mission, the Group proved to be agile in tackling numerous operational challenges. Secondly, the Group encountered unexpected extra work due to increased volumes consequent to a shift from out-of home to at-home consumption and due to more complex operations, which put most pressure on Prepared but also on some Fresh operations, while availability of temporary staffing in the market was low. Despite extra costs, the Group Report of the board of directors 76 / managed to cope with the additional work thanks to an exceptional effort and flexibility of its employees. Also, the Group managed additional complexities in relation to availability and transport of produce. This was also thanks to effective actions from government, the food industry and organisations to secure the flow of food transport and harvest of produce. Moreover, the Group has a diversified and extensive grower and supply country base which enables it to draw from several alternatives. Apart from some temporary and limited issues, the Group managed well to fulfil the increased demand of its customers and supplied with good service levels. In the period June to September the business rapidly normalized, at the same time, the Group kept on conforming with the strictest health safety measures. As to the Fresh segment, the increased sales to retailers stabilized but also our higher cost to supply. Retailers gradually reintroduced their ‘old way of working’ such as promotions, etc. As to the Long Fresh segment, the retail business remained strong, of course at a lower level than during the hoarding period but higher than last year. Furthermore, we replenished our Prepared and Frozen produce stocks over summer to secure sufficient product availability over the coming periods. In the period October 2020 to May 2021, economies throughout Europe have one after another been locked down again. However, the impact of the second lock-down on our activities was less substantial because it did not come unexpected and thus our business was much better prepared. The operational and logistics capabilities of Greenyard and its partners were fully accustomed to the lock-down way of working thanks to the deep experience built in the period March to June and the continued attention in the period thereafter. Different also to the first lock-down was that consumer behaviour became currently more stable, and no hoarding was noticed anymore. Of course, out-of-home consumption declined again in favour of at-home-consumption due to the closure of restaurants. From June 2021 onwards we notice that vaccination programs are ongoing in full speed with an expected full implementation during summer, and the vaccines prove to be effective. Consequently, the economies are gradually reopening. Probably in the first months retailer volumes will temporarily slow down in favour of food service which is starting up again. However, we believe that the long lasting trend towards consuming more healthy food has only been further stimulated by the COVID period. And, thus, that fresh and long fresh produce will remain the major cornerstone in a healthy alimentation package and retailers will be key in fruit and vegetable distribution, which makes our business model COVID-solid and strengthens our strategy. The main remaining risk is the financial health of our food service clients which could lead to some bad debt and loss of sales. To date, we have no indications that there are serious problems that would have any significant impact on our financial prospects.

ICT systems and cyber security

In our business it is of utmost importance to meet very high service levels in order to secure a constant high quality and availability of our products to our customers. To execute and follow up seamlessly large numbers of different transactions, we rely on information systems and technology both on premise and in the cloud. Availability of these systems is key to run the day-to-day operations. Greenyard therefor constantly strives to comply with high standards and adapt to new evolutions in relation to applications, hardware platforms and cyber security. As the applications, we are currently upgrading our ERP systems in different entities in order to improve efficiency, simplify and harmonise. Typically, the go-live of a new application might lead in a transition phase to operational inefficiencies and risk of internal control deficiencies. As to cyber security, this is a major attention area which has been embedded in our management processes and is reviewed, monitored and improved on a permanent basis. As to hardware, we a.o. take care of regular upgrades, replacements, redundancy and back-ups and actively screen our suppliers and systems.

GREENYARD ANNUAL REPORT 2020/2021 / 77

Sustainability and Research & Development

1. Sustainability

Sustainability is an important pillar of the Group’s strategy. It is integrated within the Group’s vision and mission and is supported by a clear commitment to supply its markets in the most sustainable way possible with healthy and safely produced fruits and vegetables. The Group has the ambition to improve life. This implies that it does not only want to contribute to healthier lifestyles, but it wants to do so through an even more sustainable food value chain.# Report of the board of directors

Greenyard’s sustainability strategy

The Group has prepared a sustainability report for AY 20/21 which complies with the requirements of Directive 2014/95/EU with regard to the disclosure of non-financial and diversity information by certain large undertakings and groups. The EU’s reporting requirement directly affects listed companies such as Greenyard with more than 500 employees and/or a balance sheet total of over € 20,00m and/or a net turnover of over € 40,0m. The report includes information on the Group’s efforts with regards to the environment, society, employees, human rights, anti-corruption and diversity. By publishing a dedicated sustainability report, the Group aims to provide a more comprehensive overview of its sustainability efforts at local level and how these can help to solve the global challenges in the food sector.

The Group’s strategy is guided by the United Nations Sustainable Development Goals (SDGs). The United Nations 2030 Agenda for Sustainable Development is a plan of action for our planet centred around people and their prosperity, and for peace and justice. The 17 SDGs define global sustainable development priorities and aspirations for 2030 and seek to mobilise global efforts around a common set of goals and targets. As one of the largest suppliers of fruit and vegetables in the world, the Group is deeply committed to the implementation of the 2030 Agenda. The five pillars – People, Planet, Prosperity, Peace and Partnership – of the 2030 Agenda provide the framework to gain insight in the Group’s sustainability efforts.

1.1. Promoting people’s well-being (PEOPLE)

Greenyard’s ambition

The Group’s mission is to strive for a ‘healthier future’, especially when considering the current global challenges such as the increase in obesity and the lack of physical activity. Promoting and supporting the well-being of employees, customers and final consumers is therefore one of its key ambitions.

Greenyard’s approach

The Group encourages people around the world to follow healthy diets by offering a broad range of healthy fruit & vegetables as well as convenience products based on fruit & vegetables that are available throughout the year. This is backed up by ensuring that stringent food safety standards to protect people’s health are at the top of the Group’s priorities. The Group is also fully committed to safeguarding the well-being, health and safety of its employees. This pillar aims to empower everyone working for the Group and to encourage and support them in developing their knowledge, skills and talents.

Greenyard’s impact

A. Enabling a healthy & sustainable diet for everyone

Fruit and vegetables form the basis of any healthy and balanced diet. They contain fibres, minerals and vitamins that are essential to our well-being. However, research shows that on average people still only eat 60% to 70 % of recommended daily allowances. The Group sees it as its mission to contribute to healthier and more sustainable eating habits for everyone.

The Group works closely with its customers to provide people with an attractive and varied assortment of fresh produce year-round. It jointly develops innovative concepts to promote and boost consumption of fruit and vegetables. The Long Fresh segment turns fruit and vegetables into convenience products that are always available, independent of the season. Additionally, the Group takes into account the nutritional value, by reducing salt and sugar content in prepared products without compromising the unique taste of the products.

B. Ensuring food safety

The Group shares a fundamental responsibility in ensuring that consumers can trust the safety and quality of all its products. Therefore, all the Group sites comply with the most stringent international food quality standards (e.g. IFS, QS, BRC). In order to comply with these standards, the Group’s focus on food safety and quality covers the entire production chain, starting in the fields with the raw materials. All growers and suppliers must comply with clear and strict product specifications. From that point on, the Group assures quality using advanced control systems and inspection equipment, combined with visual inspections by experienced quality specialists.

C. Providing a safe and healthy work environment

The Group values its employees as its most important asset. Thanks to the commitment of its more than 9.000 employees, the Group has been able to become the thriving company it is today. The Group is therefore deeply committed to providing a safe and healthy working environment for every single one of them.

The Group creates a safe working environment by actively preventing workplace accidents and fatalities. The Group also inspires its employees to take initiative and improve the safety of the organisation in any way they can. In AY 20/21, the Group recorded 304 working accidents resulting in lost time. The Group aims to continuously reduce this number.

By encouraging all its employees to maintain a healthy diet and take regular exercise, the Group seeks to make its own people’s lives healthier, both at work and at home.

D. Developing our talent

Learning is crucial to promoting people’s well-being. The Group invests in its employees by bringing them together and encouraging everyone to work on their personal development. To support this, the Group offers several formal and informal training and development programmes. In AY 20/21, the Group provided on average 9,5 hours of training per employee.

The Group’s workforce is a reflection of social diversity with more than 80 different nationalities working at the various locations. Recruiting the right people with the right skills and mindset is a key priority of its human resources strategy. The Group recognises its role in society and therefore wants to be an active provider of social employment.

GREENYARD ANNUAL REPORT 2020/2021 / 79

1.2. Fostering responsible resource use (PLANET)

Greenyard’s ambition

The Group’s most valuable supplier is nature, our Planet. Without nature; healthy soil, good biodiversity and fresh water the Group would not be able to conduct its business. Therefore the Group is always conscious of its vision of ‘fostering nature’. Greenyard believes in the responsible and sustainable production of food and agricultural products. This is only possible if the Group teams up with its growers and suppliers and deals with its resources in a responsible way.

Greenyard’s approach

The drivers in this pillar focus on climate action and water stewardship throughout the supply chain, closing the loop through an effective waste policy, the responsible use of land, and maintaining biodiversity.

Greenyard’s impact

A. Climate action

Fruit and vegetables have an exceptionally low carbon footprint when compared to other food categories. Nonetheless, the Group is constantly striving to reduce its greenhouse gas emissions along the value chain. Energy use is the prime source of greenhouse gas emissions in the Group’s operations. In AY 20/21, the Group used 624.251 MWh of energy (excl. transport fuel). Scope 1 emissions amounted to 81,557 tonnes CO2-eq, whereas Scope 2 emissions amounted to 87,081 tonnes CO2-eq.

The energy intensity for processed products decreased by 2% LFL due to continuous efforts to reduce energy use. Emission generating activities include cold storage and transport in the Fresh division, processing, freezing and cold storage in the Frozen division, and processing and preserving in the Prepared division. These represent the focus areas to reduce our emissions.

Greenyard has committed to reduce its greenhouse gas emissions by 50% by the end of 2025 compared to 2019. The Group fully recognises its responsibility to also reduce greenhouse gas emissions beyond its direct influence. Analysis of Scope 3 emissions clearly confirms the significance of these emissions in the Group’s total footprint when compared to Scope 1 and 2 emissions. Greenyard intends to set science-based reduction targets for its scope 1, 2 and 3 emissions in line with limiting the global temperature rise to 1.5°C. It has joined the Science Based Targets initiative (SBTi) and aims to submit its proposal by the end of 2021.

The Group discloses its climate-related risks and impact under the terms of the CDP (2020 score B-), ensuring consistency in the information provided to stakeholders in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

B. Water Stewardship

Water is a critical resource for the Group’s core activities. It is a vital resource for growing fruit and vegetables and a crucial element in many of its processes. As such, the Group is very conscious about the preciousness of water and strives to reduce consumption and mitigate risks every way it can – not just in its own operations, but all through the value chain.

In AY 20/21, Greenyard consumed 4.78 million m³ water in its own operations. The water intensity for processed products decreased by 2% LFL due to continuous efforts to reduce water use. The main water consuming activities include washing vegetables and cooling in the Fresh division, processing and cooling in the Frozen division, and processing and preserving in the Prepared division. These activities are also the focus areas to reduce the Group’s water consumption.

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The Group has committed to map the water risk for its entire grower base by 2025. The Group uses the WWF Water Risk Filter to identify basic risks. Thus far 46% of the grower base has been evaluated. The Group discloses its water-related risks and impact under the terms of the CDP, it received the score B- in 2020.

C. Zero waste

The Group recognises various waste streams related to its business. The Group sees it as its duty to manage its resources in a responsible manner, with as much food and nutritional value and as little waste as possible.# Greenyard Annual Report 2020/2021

1.3. Assuring food availability (PROSPERITY)

Greenyard’s ambition

One of the main challenges for global agriculture is the rising demand for products. Driven by a growing world population, a higher average life expectancy and land scarcity, agriculture needs to find solutions to ensure that enough high-quality food is accessible for everyone. The Group’s ambition is to support new alternatives, such as innovative techniques, technologies and infrastructure, which will be key enablers of future food security.

Greenyard’s approach

As a global market leader of fresh, frozen and prepared fruit and vegetables, the Group stimulates efforts that lead to innovative techniques and products. It supports research and development, aligned with circular economy models, so it can lead to a prosperous progress in harmony with nature and the limits of our planet.

Greenyard’s impact

The Group focuses on innovative growing methods such as vertical farming which help ensure quality fresh products all year round without having to rely on skilled labour, favourable weather, pesticides, high soil fertility or heavy water usage. Moreover, with R&D, the Group explores new varieties of fruit and vegetables that can be more resilient to the external environment as well as post-harvest techniques that can provide a longer shelf life and ensure better quality for fresh products.

GREENYARD ANNUAL REPORT 2020/2021 / 81

1.4. Stimulating sustainable trade (PEACE)

Greenyard’s ambition

Worldwide, food chains are becoming more complex, due to a growing demand for food, scarcity of land and available labour, the impact of climate change and geopolitical influences. The Group sees this as an incentive to generate social, economic and environmental benefits throughout the entire chain and is also committed to the highest standards of business ethics and compliance.

Greenyard’s approach

On the supply side, the Group actively focuses on social standards, responsibility, transparency and traceability by working closely with its growers and suppliers. Internally, the Group is taking measures to maintain an ethical business spirit through its Code of Conduct.

Greenyard’s impact

A. Responsible sourcing

Throughout the value chain, ensuring a sustainable food chain (on environmental and social aspects) and requiring full compliance of growers and suppliers to all relevant applicable standards is of utmost importance for the Group. For this reason, the Group has established the ambition to conduct business with suppliers that can prove their compliance with international and national employment legislation, particularly in risk regions. By 2025, the Group wants to have 100% of its grower base in risk regions certified for social compliance. Greenyard sources more than 2.7 million tonnes of fruit and vegetables worldwide each year. In AY 20/21, 24% of its volumes originated from risk countries and regions, driven largely by overseas volumes from the Fresh segment. At present, about 81% of our grower base is assessed or certified for social compliance.

B. Diversity & ethical business behaviour

The basis of sustainable trade is present in the Group’s own operations. Through its Code of Conduct, the Group has a set of rules outlining the unified social norms and responsibilities for all its operations. It explains and details the commitment in respect to diversity, human rights, fair employment, fraud, anti-corruption, environment, health and safety and privacy issues. Every person working at the Group is subject to the Code. It provides the employees with guidance and solid principles to follow, even in complex situations. The Group has made a special effort to reach all employees by translating the Code into 12 languages. Diversity (cultural, inter-generational, linguistic, between men and women, etc.) and equal opportunities are also important values for the Group. Greenyard focuses on moving towards a gender balance at all levels and retaining older, experienced employees, by providing a supportive work environment. Female employees represent 34% of our workforce, while 28% of the employees were older than 50. This year, the Group has not recorded any lawsuits regarding non-compliance with human right, anti-corruption and fraud regulations.

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1.5. Strengthening collaboration in the chain (PARTNERSHIP)

Greenyard’s ambition

The Group recognises that for achieving its ambition to be a responsible supplier of high-quality, healthy and sustainable products, it needs to have strong collaboration with several partners.

Greenyard’s approach

Since the very beginning, the Group has always worked closely together with its food suppliers and growers. This close collaboration has allowed the Group to give sustainability a central focus. Several entities collaborate with other business partners, both in food and non-food sectors, who share similar belief. In addition to this, Greenyard is working to develop partnerships with customers and end-consumers. The Group’s ambition is to develop product ranges that appeal to modern consumers and inspire them to live a healthier life while ensuring the responsible and sustainable sourcing of these products. The Group’s engagement for partnerships goes beyond the supply chain by supporting several local and social engagement projects.

Greenyard’s impact

A. Strong partnerships with growers and suppliers

The Group sources its fruit and vegetables from a worldwide network of growers and suppliers. All products are largely the result of their hard work. The Group believes that by providing training, and by building strong, long-term partnerships with this network of growers and suppliers, it can work together with them and constantly improve efficiency, availability, sustainability and working conditions. The Group’s training includes optimising cultivation, reducing environmental impacts, transitioning to organic cultivation, and conserving nature.

B. Strong partnerships with customers

The Group actively partners with its customers and shares expertise and know-how to ensure that its products are ideally suited to their needs. In working closely with customers, the Group mainly focuses on optimising its product range and on innovative packaging. The collaboration also allows Greenyard to optimally tailor production and logistics to customers and, as a result, work more efficiently and time-effectively.

2. Research & development

The Group has a consumer-centric approach to product development which involves taking into account consumer needs such as health, convenience, pleasure, affordability and sustainability with the goal of driving forward product innovation in each division. In the past accounting year, as well as in previous years, many new products, product varieties, dishes and packaging have been developed and successfully marketed. Some of these products have also been recognised for their innovative character and nominated for industry awards. Development quality and the circulation of information throughout the organisation are monitored throughout the process by the internal research and development (R&D) departments. Fresh and Long Fresh employ respectively 20 and 10 dedicated permanent staff in order to develop new products and engage in research partnerships. There are currently a number of R&D programmes in place, which are co-financed by external national and international institutions. The Group’s R&D budget amounts to €3.00m. The Group’s food processing operations continue to invest in the best-performing and innovative machinery and installations, allowing them to develop products at a rapid pace, in step with market trends and consumer expectations.

GREENYARD ANNUAL REPORT 2020/2021 / 83

Important events after balance sheet date

On 11 June 2021, Greenyard and Cornerstone Investment Management have signed a Share Purchase Agreement pursuant to which Cornerstone Investment Management, a Polish private equity investment firm, will acquire 100% of the shares of Greenyard Prepared Netherlands, specialised in the supply of high quality, freshly harvested mushrooms in cans and jars to a worldwide customer base, subject to customer regulatory approvals and closing conditions. There are no other major events subsequent to the balance sheet date which have a major impact on the further evolution of the Group.# Report of the board of directors

Corporate governance statement

Greenyard applies the Belgian Code on Corporate Governance which came into force on 1 January 2020 (the 2020 Code), replacing the 2009 Code, and uses it as a reference code in accordance with article 3:6 (§2) of the Belgian Companies and Associations Code (BCAC). The BCAC has been fully applicable to Greenyard since 17 October 2019, the date Greenyard’s articles of association as amended in accordance with the BCAC, were published in the Belgian Official Gazette. The most important aspects relating to Greenyard’s governance policy - in particular the role, responsibilities, composition and functioning of the Board of Directors, its advisory Committees, the Executive Management and the Leadership Team - are set out in Greenyard’s Corporate Governance Charter. The Board of Directors revises the Corporate Governance Charter regularly and, where needed, makes modifications. The Charter, adopted by the Board of Directors on 2 July 2015, was amended on 26 March 2020 to comply with the 2020 Code. The most recent version of the Corporate Governance Charter may be consulted on the Company’s website, under the heading Investor Relations: Corporate Governance. The Corporate Governance Charter and its annexes include the terms of reference of the Board of Directors, its advisory Committees, the Executive Management and the Leadership Team respectively, as well as the Code of Conduct and the Dealing Code (see 7., below). These internal policy documents are available on the Greenyard website and give an overview of Greenyard’s governance.

2020 Corporate Governance Code

The Company meets the provisions provided for by the 2020 Code, except as explicitly otherwise stated and justified in this Corporate Governance Statement. The 2020 Code applies the ‘comply or explain’ principle, meaning that any deviations from the recommendations must be justified. As at the date of this financial report, Greenyard fully complies with the provisions of the 2020 Code, except for a limited number of deviations in relation to executive and non-executive remuneration as set out in provisions 7.6 and 7.9 of the 2020 Code. During AY 20/21 the Company also temporarily deviated from provision 3.11. The deviations are indicated and explained in more detail in the relevant sections of this Corporate Governance Statement. The 2020 Code is available online at .

Governance structure

Greenyard has opted to maintain a one-tier governance structure, as referred to in articles 7:85 et seq. BCAC. At least every five years, the Board of Directors will evaluate whether the chosen governance structure is still appropriate. The Board of Directors - as a collegial management body - is therefore empowered to carry out all acts necessary or useful to accomplish Greenyard’s aims, except those reserved, by law or articles of association, for the Shareholders’ Meeting. The Board of Directors has delegated specific management powers to Greenyard’s co-Chief Executive Officers who, together with the Chief Financial Officer, act within the framework of an Executive Management.

GREENYARD ANNUAL REPORT 2020/2021 / 85

1. Board of Directors

1.1. Composition of the Board of Directors

Principles

In accordance with Greenyard’s articles of association, the Board of Directors consists of at least three directors. The Corporate Governance Charter stipulates that at least half of the directors are non-executive and at least three are independent within the meaning of article 7:87 (§1) BCAC, and therefore meet the criteria as set out in provision 3(5) of the 2020 Code. Directors are appointed for no more than four years and may be re-elected.

The composition of the Board of Directors is such that:
* there is sufficient expertise in the various activities of Greenyard, and sufficient diversity in competencies, background, age and gender, for the Board of Directors to be able to fulfil its role in the best possible way;
* each director meets the specific qualitative requirements set out in the Corporate Governance Charter;
* the directors do not execute more than five mandates as director of a listed company; and
* the directors’ mandate will end at the Annual Shareholders’ Meeting in the calendar year in which the director turns 70 years of age, unless the Board of Directors decides otherwise, on the recommendation of the Nomination and Remuneration Committee.

Membership of the Board of Directors as at 31 March 2021

As at 31 March 2021, the Board of Directors is composed of nine members as follows:
* one executive director;
* eight non-executive directors, of whom four are independent directors meeting the criteria set out in article 7:87 (§1) BCAC and provision 3(5) of the 2020 Code;
* one third of the directors are of a different gender than the other directors in accordance with article 7:86 BCAC;
* one director reaches the age of 70 years during calendar year 2021 and pursuant to the decision of the Board of Directors, will remain in office as a director for the remaining term of his mandate which expires at the end of the Annual Shareholders’ Meeting with respect to AY 22/23.

Moreover, the Board of Directors meets the diversity requirements in respect of educational background, professional experience, knowledge and expertise (see below).

Changes in the composition of the Board of Directors during AY 20/21

The mandates of all directors, with the exception of Ahok BV (permanently represented by Mr Koen Höftman) and Aalt Dijkhuizen B.V. (permanently represented by Mr Aalt Dijkhuizen), expire at the end of the Annual Shareholders’ Meeting with respect to AY 22/23. The directorship of Aalt Dijkhuizen B.V. (permanently represented by Mr Aalt Dijkhuizen) as independent director expired at the end of the Annual Shareholders’ Meeting of 18 September 2020. The same Annual Shareholders’ Meeting renewed the mandate of Aalt Dijkhuizen B.V. (permanently represented by Mr Aalt Dijkhuizen) for a further term of four years, expiring at the end of the Annual Shareholders’ Meeting with respect to AY 23/24. At its meeting of 18 February 2021, the Board of Directors noted the resignation of Omorphia Invest BV (permanently represented by Ms Valentine Deprez) and co-opted Galuciel BV (permanently represented by Ms Valentine Deprez) as director, as a replacement for Omorphia Invest BV, effective from 18 February 2021.

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Following the completion of the capital increase in the framework of the authorized capital within Greenyard on 26 March 2021, the Board of Directors decided to appoint Alychlo NV (permanently represented by Mr Marc Coucke) by co-optation as director, in replacement of resigning director Intal BV (permanently represented by Mr Johan Vanovenberghe), effective from 1 April 2021. On the recommendation of the Nomination and Remuneration Committee, the Board of Directors will propose to the Annual Shareholders’ Meeting of 17 September 2021 that the mandate of the co-opted directors Galuciel BV (permanently represented by Ms Valentine Deprez) and Alychlo NV (permanently represented by Mr Marc Coucke) be confirmed for the remaining term of the mandate of the director who is being replaced, expiring at the end of the Annual Shareholders’ Meeting with respect to AY 22/23.

Composition of the Board of Directors as at 31 March 2021

Director's name	Appointment Date	Re-appointed at	End of term
Deprez Invest NV, rep. by Mr Hein Deprez (2)	6/19/2015	9/20/2019	AGM 2023
Ahok BV, rep. by Mr Koen Höftman (1) and (3)	10/4/2017	-	AGM 2022
Ms Hilde Laga (1)	11/25/2014	9/20/2019	AGM 2023
Gescon BV, rep. by Mr Dirk Van Vlaenderen (1)	7/5/2016	9/20/2019	AGM 2023
Aalt Dijkhuizen B.V., rep. by Mr Aalt Dijkhuizen (1)	2/21/2017	9/18/2020	AGM 2024
Management Deprez BV, rep. by Ms Veerle Deprez	6/19/2015	9/20/2019	AGM 2023
Galuciel BV, rep. by Ms Valentine Deprez (4)	2/18/2021	-	AGM 2023 (5)
Bonem Beheer BV, rep. by Mr Marc Ooms	6/19/2015	9/20/2019	AGM 2023
Intal BV, rep. by Mr Johan Vanovenberghe (6)	6/19/2015	9/20/2019	4/1/2021

(1) Independent director within the meaning of article 7:87 (§1) BCAC.
(2) The Board of Directors delegated the daily management of Greenyard to director Mr Hein Deprez (as permanent representative of Deprez Invest NV) for an indefinite period from 1 February 2018. He bears the title of co-Chief Executive Director and Managing Executive Director.
(3) Chairman of the Board of Directors.
(4) Galuciel BV (permanently represented by Ms Valentine Deprez) is appointed by co-optation as a director in replacement of resigning director Omorphia Invest BV (permanently represented by Ms Valentine Deprez), with effect as of 18 February 2021.
(5) Subject to confirmation of the co-optation by the Annual Shareholders’ Meeting of 17 September 2021.
(6) Alychlo NV (permanently represented by Mr Marc Coucke) is appointed by co-optation as a director in replacement of resigning director Intal BV (permanently represented by Mr Johan Vanovenberghe), with effect as of 1 April 2021.

Biographies

The following paragraphs set out the biographical information of the members of the Board of Directors as of 31 March 2021, and the member(s) whose appointment will be submitted to the next Annual Shareholders’ Meeting:

Hein Deprez (as permanent representative of Deprez Invest NV) – co-Chief Executive Officer and Managing Executive Director (°1961)

Please refer to the Composition of the Executive Management for Mr Hein Deprez’s biography.

Koen Höftman (as permanent representative of Ahok BV) – independent director and Chairman of the Board of Directors (°1968)

Mr Koen Höftman obtained a master’s in Applied Economics and an MBA at Vlerick Business School. Between 1992 and July 2016, he was active at KBC Group where he began his career in the corporate finance department becoming CEO of KBC Securities in October 2012. Since August 2016, he has been the CEO of the asset management company Value Square.Mr Koen Homan serves also as an independent board member at listed companies Fagron (Chairman), MDxHealth (Chairman) and SnowWorld (Chairman).

GREENYARD ANNUAL REPORT 2020/2021 / 87

Hilde Laga – independent director (°1956)

Holding a Ph.D. in Law, Ms Hilde Laga is founding partner of Laga, the law rm which she led as Managing Partner, and where she was head of the corporate M&A practice until 2013. Until 2014 she served as a member of the supervisory board of the Financial Services and Markets Authority. She is a member of the Belgian Corporate Governance Committee and serves as an independent board member at listed companies Barco, Gimv (Chairman) and Agfa-Gevaert.

Aalt Dijkhuizen (as permanent representative of Aalt Dijkhuizen B.V.) – independent director (°1953)

Mr Aalt Dijkhuizen has a Ph.D. in Animal Health Economics and a master’s degree in Agricultural Economics. He is a former Managing Director of the Agri Northern-Europe Business Group of Nutreco and, from 2002 to 2014, served as President and CEO of Wageningen University & Research. From 2014 to 2020, he was President of Topsector Agri & Food in the Netherlands. He is currently a supervisory board member at Royal De Heus, Hendrix Genetics and Ploeger Oxbo Group (Chairman) and co-director of the Holland Center in China. Formerly, he served as Chairman of the Food & Beverage Innovation Forum in Shanghai and acted as high-level expert to the European Commission in Brussels. Mr Dijkhuizen was awarded Honorary Citizen of Fujian Province in 2008, and Commander of the Order of Orange-Nassau in the Netherlands in 2014.

Dirk Van Vlaenderen (as permanent representative of Gescon BV) – independent director (°1959)

Mr Dirk Van Vlaenderen has a master’s degree in Applied Economics. He was an Arthur Andersen LLP partner from 1993 and a member of the audit management committee and Managing Partner at Deloitte from 2002 until 2016. He has served a wide range of national and international companies as statutory auditor. He was also a lecturer at the Universities of Brussels and Leuven in IFRS Basics and Reporting in an International Context. He serves as a board member at other companies including at listed companies Accentis SA and IEP Invest NV.

Veerle Deprez (as permanent representative of Management Deprez BV) – non-executive director (°1960)

Ms Veerle Deprez started her career with Alcatel Bell in 1980. In 1987, with her brother, Mr Hein Deprez, she laid the founda- tions of Univeg, which would later become the Greenyard Fresh segment. Ms Deprez also serves as a board member at listed companies Fagron and Tessenderlo Group, as well as at various companies belonging to the Group and De Weide Blik group.

Valentine Deprez (as permanent representative of Galuciel BV) – non-executive director (°1989)

Ms Valentine Deprez holds an MA in Art History from the Catholic University of Leuven. She studied at Vlerick Business School and holds a postgraduate Diploma in Hospitality from the Glion Institute of Higher Education in Switzerland. Born into the Company’s founding family, Ms Deprez has been involved with the business from a very early stage. In addition to her mandate as director, she manages historical real estate projects.

Marc Ooms (as permanent representative of Bonem Beheer BV) – non-executive director (°1951)

Mr Marc Ooms was General Partner of the Petercam group, a Benelux Investment Bank, and Chairman of Petercam Bank Nederland until 2011. He is currently a private equity investor and on the board of several companies including SEA-invest Corporation, Baltisse, BMT, Universal Partners and De Weide Blik.

Marc Coucke (as permanent representative of Aychlo NV) – non-executive director (°1965)

Mr Marc Coucke graduated as a pharmacist from the University of Ghent and obtained an MBA at Vlerick Business School. He is the founder and former CEO of Omega Pharma. Following the sale of Omega Pharma, Mr Coucke currently invests through Alychlo NV, in several listed and non-listed companies and technologies. He serves as a board member of Fagron, Smartphoto Group, Animalcare Group and a number of private companies.

Johan Vanovenberghe (as permanent representative of Intal BV) – non-executive director (°1963)

Mr Johan Vanovenberghe began his career in 1987 at the audit rm Grant Thornton where he became a Partner in 1995. From 2006 to 2009, he was Chief Financial Ocer at the Univeg group. He then acted as advisor to the companies which would become Greenyard in 2015. Since 2015, in addition to his mandate as director, he has provided consultancy services to Greenyard. In February 2018, Mr Vanovenberghe became a board member of the listed company Resilux, and member of its audit committee and its remuneration and nomination committee.

Report of the board of directors 88 /

Diversity in the Board of Directors

Greenyard strives for diversity within the Board of Directors, creating a mix of executive, non-executive and independent directors. Greenyard has put in place a procedure in the context of the appointment and renewal of mandates of the members of the Board of Directors and the appointment of the members of its Committees, which is designed to foster a complemen- tarity of skills, experience, knowledge, age diversity and educational and professional background in the composition of the Board of Directors and its specialized committees, in addition to the expertise and professional integrity required to exercise their duties. The procedure is set out in the Corporate Governance Charter. In the context of the self-assessment exercise, particular attention is also given to ensuring complementarity and diversity in the composition of the Board of Directors and its Committees. The successful eects thereof are reected and realized in the Board of Directors’ composition, which, as at 31 March 2021, comprises three female directors out of a total of nine, thereby ensuring compliance with the requirements on gender diversity as laid down in article 7:86 BCAC. The Board has representatives of two nationalities and from dierent age categories, and the directors have complementary experience and knowledge and come from diverse educational and professional backgrounds, as evidenced in their biographies (see above).

Age
between 30-40	1
between 50-60	5
older than 60	3

Gender
male	6
female	3

Nationality
Dutch	1
Belgian	8

Expertise
Industry & Operations experience	5
Risk management experience	4
Corporate Finance knowledge	7
Accounting & Audit knowledge	5
Corporate governance knowledge	3
Investors experience	4
M&A experience	6
Board of Directors experience	9

GREENYARD ANNUAL REPORT 2020/2021 / 89

1.2. Role and responsibilities of the Board of Directors

Role of the Board of Directors

The role of the Board of Directors is to dene a value-based strategy to achieve sustainable long-term success for Greenyard. As a collegial body, the Board of Directors oversees the performance of the Company and strives to create sustainable value creation by establishing and assuring eective, responsible and ethical leadership as well as an ecient risk management and control. It determines, following proposals from Executive Management, the Company’s strategic direction over the medium and long term, and regularly reviews and evaluates the implementation of this strategy. The Board evaluates the levels of risk Greenyard is willing to take to achieve its strategic objectives and assures the necessary nancial and human resources for Greenyard to achieve its goals. The Board of Directors further supports and monitors the Executive Management in the fulllment of its duties and constructively challenges its members whenever appropriate.

Role of the Chairman of the Board of Directors

Independent director Mr Koen Homan (as permanent representative of Ahok BV) has been Chairman of the Board of Directors since 1 February 2018. He is appointed Chairman for the duration of his term of oce as director. The Chairman presides over the meetings of the Board of Directors to ensure that decision-making is carried out in the most constructive and ecient way, in an open and respectful atmosphere. He chairs the Shareholders’ Meetings, ensures eective communication with shareholders and has the prime liaison role with shareholders for all matters falling within the Board of Directors’ competence. He seeks to develop eective interaction between the Board of Directors and the Executive Management.

Activities of the Board of Directors in AY 20/21

The Board of Directors convenes as often as the interest of the Company requires, suciently regularly to perform its duties and responsibilities eectively, and in any case at least six times a year on predened dates. In principle, the decisions are taken by a simple majority of votes. However, the Board of Directors strives to take the resolutions by consensus. The functioning of the Board of Directors is regulated by the articles of association and by its terms of reference as included in the Corporate Governance Charter. The Board of Directors met eleven times during AY 20/21. Given the government-imposed safety measures in the context of the COVID-19 pandemic, and with a view to safeguard the health and safety of its participants, all directors participated in these meetings of the Board of Directors by video conference. All meetings were attended by the Company Secretary, MsFran Ooms, legal counsel.# Report of the board of directors

In AY 20/21, the Board of Directors has engaged in the following:

Following-up on the impact of the ongoing COVID-19 pandemic on Greenyard and the measures taken to protect Greenyard employees to safeguard the supply of fruit and vegetables, and to mitigate the effects on the business and forecasts;
Preparation and convening of the General Shareholders’ Meetings;
Approving the appointment by co-optation of new directors, subject to confirmation by the Annual Shareholders’ Meeting of 17 September 2021;
Assessing and approving the 2020-2025 long-range plan, as elaborated under the leadership of and proposed by the Executive Management;
Reviewing the sustainability performance of Greenyard, including as set forth in the sustainability report 2020;
Approving, upon the Nomination and Remuneration Committee’s advice, the proposal for a remuneration policy established for the members of the Board of Directors, Executive Management and Leadership Team, which applies as from 1 April 2021, subject to its approval by the Annual Shareholders’ Meeting of 17 September 2021;
Monitoring compliance with the Code of Conduct, within the framework of the reporting by the Audit Committee;
Analysing and approving the AY 21/22 budget;
Approving and following-up on investment opportunities and CAPEX requests;
Monitoring the status of envisaged potential divestments and acquisition opportunities;
Assessing the Group’s financial and operational results, and analysing and approving the (revised) FY forecasts for the Group for AY 20/21;
Approving changes to the composition of the Leadership Team and positions held by Leadership Team members;
Evaluating and analysing the performance of the members of the Executive Management;
Monitoring compliance with the Market Abuse Regulation requirements, particularly on the disclosure of inside information;
Following-up on communications with the FSMA and in particular, on the investigation conducted by the FSMA in the framework of the Market Abuse Regulation with respect to Greenyard’s communication on the listeria recall of frozen products produced in its former facility in Baja (Hungary) in July 2018, which resulted in a settlement with the FSMA in the amount of € 500,000, to be paid by Greenyard, without any acknowledgment of guilt;
Approving the execution of a capital increase for a total amount of € 50,000,006 in cash which was completed on 26 March 2021 through the issuance of new Greenyard shares, by means of a private placement within the authorized capital, and approving all related agreements, powers of attorney and documents, as well as the special report required under articles 7:198 juncto 7:179, 7:191 and 7:193 BCAC;
Discussing Corporate Governance topics, including the 2020 Code and the Shareholders Rights Directive (EU) 2017/828;
Assessing the press releases prepared for the announcement of the bi-annual and annual financial results, as well as all other press releases labelled as regulated information which were made public during AY 20/21;
Monitoring and approving changes in the organizational chart at corporate and divisional level;
Following-up on the steps taken by the Executive Management to establish and build new strategic partnerships with key customers;
Approving the new financing documentation entered into by Greenyard with its consortium of banks for a total amount of € 467.5m, covering both the refinancing of the existing bank debt and the repayment of the € 125.00m convertible bonds, and including a guarantee of € 62.5m issued by the Flemish Government’s investment fund Gigarant as collateral for the bank financing, effective as from 31 March 2021, including all related agreements, powers of attorney and documents.

1.3. Evaluation of the Board of Directors – self-assessment

In accordance with the 2020 Code and its terms of reference, the Board of Directors regularly evaluates (at least every three years) the Board’s size, composition and functioning, and that of its advisory Committees, as well as its performance and its interaction with the Executive Management. The aim is to encourage continuous improvement in the corporate governance of Greenyard by recognizing the Board of Directors’ strengths while identifying areas for improvement.

The Board of Directors’ self-assessment exercise is coordinated by the Company Secretary, under the leadership of its Chairman, and is monitored by the Nomination and Remuneration Committee. The self-assessment exercise has the following main objectives:

To verify whether the current Board’s composition represents sufficient expertise in the Greenyard’s areas of activity,
To verify whether the chosen one-tier governance structure is still appropriate,
To appraise the Board’s operation and the execution of its responsibilities,
To verify whether the interaction with the Executive Management takes place transparently, and
To seek views on the current remuneration policy for non-executive directors.

The Board of Directors carried out its most recent self-assessment at the end of AY 19/20. The outcome of the evaluation was satisfactory and positive in respect of the current governance structure, the cooperation and dynamic within the Board of Directors, the interaction with its advisory Committees and the Executive Management and the contribution of each director and their level of commitment. Certain proposals to continue to improve the Board’s efficient functioning have been further elaborated and implemented. A new self-assessment exercise is foreseen and planned for AY 22/23.

When the renewal of a directorship is being considered, the Nomination and Remuneration Committee will assess the commitment and constructive involvement of the director concerned in Board discussions and decision-making in the light of its recommendation to the Board of Directors.

The non-executive directors evaluate on a regular basis their interaction with the Executive Management. The Board of Directors did not consider that an annual formal meeting of the non-executive directors, without the presence of the members of the Executive Management (including the Managing Executive Director), would be necessary in AY 20/21 (as provided for in provision 3.11 of the 2020 Code). Indeed, the last self-assessment exercise was conducted at the end of AY 19/20 and non-executive directors have regular contacts with each other and with the Chairman of the Board of Directors, whether or not in the context of advisory Committee meetings, the minutes of which are made available to all directors, upon their request.

2. Advisory Committees to the Board of Directors

The Board of Directors has set up two advisory Committees: the Audit Committee (see 2.1, below) and the Nomination and Remuneration Committee (see 2.2, below). Their roles, tasks, functioning and composition have been set out in accordance with the BCAC and the recommendations of the 2020 Code and are described in their respective terms of reference, as attached in annex to the Corporate Governance Charter.

2.1. Audit Committee

Composition

The Audit Committee comprises at least three non-executive directors appointed by the Board of Directors. At least one member of the Committee is an independent director in accordance with article 7:87 (§1) BCAC, who satisfies the criteria set out in provision 3(5) of the 2020 Code.

As at 31 March 2021, the Audit Committee comprises the following members:

Director's Name	Role/Affiliation
Mr Dirk Van Vlaenderen	independent director and Chairman of the Audit Committee
Ms Hilde Laga	independent director
Mr Johan Vanovenberghe	non-executive director

As permanent representative of Gescon BV.
As permanent representative of Intal BV.

As from 1 April 2021, resigning director Mr Johan Vanovenberghe (as permanent representative of Intal BV) will be replaced as a member of the Audit Committee by Ms Veerle Deprez (as permanent representative of Management Deprez BV).

All the members of the Audit Committee have expertise related to the activities of the Company and relevant experience and competence in accounting, auditing and finance to fulfil their roles effectively, as evidenced by their biographies under Composition of the Board of Directors (see above).

The Chief Financial Officer has a standing invitation to attend meetings of the Audit Committee. The Audit Committee decides whether and when the co-Chief Executive Officers, the statutory auditor and other persons may attend its meetings. At least twice a year the Audit Committee meets the statutory auditor and the corporate internal auditor.

Role and responsibilities

The Audit Committee supports the Board of Directors in fulfilling its supervisory and monitoring responsibilities with a view of a monitoring to the largest extent, including risk control. In this respect, the Audit Committee is, at a minimum, responsible for notifying the Board of Directors of the outcome of the statutory audit of the annual and consolidated accounts and explaining how the audit contributes to the integrity of the financial reporting and what role the Audit Committee had in that process.

The Audit Committee also monitors the financial reporting process, the efficiency of the internal control and risk management systems, and the internal audit and its efficiency. In addition, the Audit Committee assesses the independence of the statutory auditor and verifies whether the provision of additional services to Greenyard is appropriate. It reports regularly to the Board of Directors on the fulfilment of its duties.

The Audit Committee regularly, at least every three years, evaluates its functioning, efficiency and terms of reference. The most recent formal self-assessment exercise was conducted at the end of AY 19/20. The key findings are published in the Annual Report with respect to AY 19/20. The next self-assessment will be performed in AY 22/23.# Report of the board of directors

After each Audit Committee meeting, the Chairman of the Committee (or, in his absence, a designated member of the Committee) gives an oral report to the next meeting of the Board of Directors on the items discussed at the Audit Committee meeting and on any recommendations made or decisions to be taken by the Board. The approved minutes of Audit Committee meetings are made available to directors in the Company Secretary’s office.

Activities during AY 20/21

The Audit Committee met on four occasions during AY 20/21. The statutory auditor Deloitte attended three of the four meetings, and the corporate internal auditor participated in two meetings. The Audit Committee has been engaged in the following main dossiers and items during AY 20/21:

Monitoring the Group’s consolidated quarterly, half-yearly and annual results and the Company’s annual and consolidated financial statements;
Monitoring specific consolidation-related matters and the accounting treatment for specific IFRS operations and applications, including accounting considerations related to COVID-19;
Monitoring and evaluating the statutory auditor’s performance, including controlling the one-to-one rules;
Monitoring and evaluating in the presence of the corporate internal auditor, the internal audit function, including the internal audit plan defining the planned audit activities and risk assessment for AY 21/22, as well as the revised internal audit plan for AY 20/21 given that audit activities needed to be re-scheduled or deferred as a result of the COVID-19 impact;
Monitoring the Group’s internal control improvements and risk management systems and their efficiency, with particular focus on cybersecurity;
Following-up on pending litigations and material claims reported by Group entities;
Following-up on the reporting to and communications with the FSMA and in particular, on the investigation conducted by the FSMA in the framework of the Market Abuse Regulation with respect to Greenyard’s communication on the listeria recall of frozen products produced in its former facility in Baja (Hungary) in July 2018, which resulted in a settlement with the FSMA in the amount of € 500 000, to be paid by Greenyard, without any acknowledgment of guilt;
Following-up on the progress of the discussions regarding the refinancing of the existing bank debt and the repayment of the € 125,00m convertible bonds;
Making a recommendation to the Board of Directors about the renewal of the statutory auditor’s mandate at the Annual Shareholders’ Meeting of 17 September 2021, taking into account the mandatory audit firm rotation.

Pursuant to Regulation (EU) No. 537/2014 of the European Parliament and the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission decision 2005/909/EC and the Belgian Law of 7 December 2016 regarding the organization of the profession of and the public supervision on auditors

GREENYARD ANNUAL REPORT 2020/2021 / 93

2.2. Nomination and Remuneration Committee

Composition

The Nomination and Remuneration Committee comprises at least three non-executive directors appointed by the Board of Directors. At least the majority of its members are independent directors in accordance with article 7:87 (§1) BCAC, who satisfies the criteria set out in provision 3(5) of the 2020 Code. As at 31 March 2021, the Nomination and Remuneration Committee comprises the following members:

Mr Aalt Dijkhuizen independent director and Chairman of the Nomination (as permanent representative of Aalt Dijkhuizen B.V.) and Remuneration Committee
Mr Koen Hoﬀman independent director (as permanent representative of Ahok BV)
Ms Veerle Deprez non-executive director (as permanent representative of Management Deprez BV)

The members of the Nomination and Remuneration Committee have collective competence and expertise in matters of remuneration and remuneration policy. The co-Chief Executive Officers are invited to attend meetings of the Nomination and Remuneration Committee when it discusses the appointment or remuneration of the other members of the Leadership Team. The Nomination and Remuneration Committee has the freedom to invite other individuals to the meetings at its own discretion.

Role and responsibilities

The Nomination and Remuneration Committee assists and makes proposals to the Board of Directors in matters relating to individual remuneration (including variable remuneration, long-term performance bonuses and severance payments), remuneration policy and the appointment or reappointment of directors and members of the Executive Management and the Leadership Team. The Committee also prepares the remuneration report included in the Corporate Governance Statement and presented to the Annual Shareholders’ Meeting. The Committee assists the Chairman of the Board of Directors in respect of the evaluation of the Board of Directors’ performance and functioning.

After each Nomination and Remuneration Committee meeting, the Chairman of the Committee (or, in his absence, a designated member of the Committee) gives an oral report to the next meeting of the Board of Directors on the items discussed and on any recommendations made or decisions to be taken by the Board of Directors. The approved minutes of a Nomination and Remuneration Committee meeting are made available to directors in the Company Secretary’s office.

Activities during AY 20/21

The Nomination and Remuneration Committee met on three occasions in AY 20/21 and discussed the following main topics:

Continuous monitoring of changes to the regulatory framework and recommendations relating to governance and remuneration, in respect of the BCAC, the 2020 Code and the Shareholders Rights Directive (EU) 2017/828, and of the expectations of stakeholders;
Making proposals on and reviewing the principles and objectives of a remuneration policy established for the members of the Board of Directors, Executive Management and Leadership Team, taking into account the aforementioned regulatory framework and best governance practices;
Advising on the implementation of a long-term incentive plan (stock option plan) in AY 20/21 for certain members of the Leadership Team and other selected senior managers;
Making proposals in respect of the appointment (by co-optation) or reappointment of directors;
Following-up on changes to the composition of and positions held within the Leadership Team and on the arrangements made in the event of termination or changes in the further cooperation;
Assessing the financial objectives proposed for the bonus for AY 20/21 and the Executive Management’s personal performance criteria;
Evaluating the Executive Management members’ performance compared to the approved personal objectives for AY 19/20 and submitting a proposal to the Board of Directors;
Making recommendations about the individual remuneration package, including long-term incentive rewards, for the Executive Management members and following-up on salary adjustments for the other Leadership Team members;
Following-up on management changes at country and divisional level and on recruitments for vacant senior corporate positions;
Monitoring the establishment of a succession plan for senior management positions;
Preparing and reviewing the remuneration report.

Report of the board of directors

94 /

3. Attendance at Board of Directors and Advisory Committees meetings AY 20/21

	Number of meetings (1)	Board of Directors	Audit Committee	Nomination & Remuneration Committee
Deprez Invest NV, rep. by Mr Hein Deprez	10/11	10/11	3/3
Ahok BV, rep. by Mr Koen Hoﬀman	11/11	11/11		3/3
Ms Hilde Laga	10/11	10/11	4/4
Gescon BV, rep. by Mr Dirk Van Vlaenderen	11/11	11/11	4/4
Aalt Dijkhuizen B.V., rep. by Mr Aalt Dijkhuizen	10/11	10/11		3/3
Management Deprez BV, rep. by Ms Veerle Deprez	11/11	11/11		3/3
Omorphia Invest BV, rep. by Ms Valentine Deprez (2)	8/9	8/9
Galuciel BV, rep. by Ms Valentine Deprez (3)	2/2	2/2
Bonem Beheer BV, rep. by Mr Marc Ooms	11/11	11/11
Intal BV, rep. by Mr Johan Vanovenberghe	11/11	11/11	4/4

(1) The first figure represents attendance and the second figure the number of meetings.
(2) Omorphia Invest BV (permanently represented by Ms Valentine Deprez) voluntarily resigned as non-executive director, eﬀective from 18 February 2021, after the Board of Directors’ meeting.
(3) Galuciel BV (permanently represented by Ms Valentine Deprez) was appointed by co-optation, as a replacement for Omorphia Invest BV, eﬀective from 18 February 2021, after the Board of Directors’ meeting.

GREENYARD ANNUAL REPORT 2020/2021 / 95

4. Executive Management

Since 9 February 2019, the responsibility for day-to-day management has been exercised by two Chief Executive Oﬃcers (co-CEOs), in close cooperation with the Chief Financial Oﬃcer (CFO), with whom they jointly form the Executive Management. The Executive Management is assisted by the Leadership Team (see 4.3, below) in the exercise of the Company’s day-to-day and operational management.

4.1. Composition of the Executive Management

Principles

The Executive Management comprises the two co-CEOs and the CFO. The members are appointed and dismissed by the Board of Directors on the advice of the Nomination and Remuneration Committee. The appointment or dismissal of the co-CEOs is subject to a two-thirds majority in the Board of Directors. The CFO is appointed after consultation with and on the recommendation of the co-CEOs. Executive directors are de jure members of the Executive Management.

This photo was taken before the current Corona measures. From left to right: Mr Marc Zwaaneveld, co-CEO, Mr Hein Deprez, co-CEO and Mr Geert Peeters, CFO.

Report of the board of directors

96 /

Membership of the Executive Management as at 31 March 2021

Hein Deprez (as permanent representative of Deprez Invest NV)
co-Chief Executive Oﬃcer

Mr Hein Deprez started out in 1983 with a small mushroom farm. In 1987, he founded Univeg, which later became the Greenyard Fresh segment.# GREENYARD ANNUAL REPORT 2020/2021

4.2. Role and responsibilities of the Executive Management

Duties of the Executive management

The Board of Directors has delegated day-to-day management to the co-CEOs, each of whom may act alone. Day-to-day management includes all actions and decisions that do not go beyond the daily needs of the Company, as well as those actions and decisions that do not justify the intervention of the Board of Directors for reasons of minor importance or urgency. The co-CEOs have individual representational powers in matters of daily management. They each may validly represent the Company upon being accorded a specific mandate by the Board of Directors and may sub-delegate any of the specific powers granted to them. The co-CEOs submit Executive Management proposals to the Board of Directors or the advisory Committees, depending on the subject matter.

The Executive Management’s main responsibilities are:

Developing and implementing the vision, mission, strategic objectives and direction of the Group, and advising the Board of Directors in these areas, with a focus on the Company creating long-term value;
Assuring the day-to-day and operational management of Greenyard;
Identifying opportunities and needs in terms of investments, divestments and financing, and making any appropriate proposals in that regard to the Board of Directors;
Rolling out strategic partnerships with key customers, and building and maintaining strong customer relationships;
Organizing and monitoring internal controls (to identify, assess, manage and monitor financial and other risks), without prejudice to the supervisory role of the Board of Directors;
Supervising the complete, timely, reliable and accurate preparation of the annual accounts, in accordance with Greenyard’s accounting principles and policies;
Following up the mandatory publication by Greenyard of annual accounts, annual reports and other material financial and non-financial information;
Assessing Greenyard’s financial situation, budget and business plan and submitting this assessment to the Board of Directors;
Leading Greenyard’s Leadership Team;
Reporting to the Board of Directors;
Reporting to and preparing correspondence with the FSMA;
Generally advising and implementing decisions taken by the Board of Directors and exercising the powers the Board of Directors delegates to them.

The Executive Management also provides all the information necessary, in a timely manner, for the Board of Directors to carry out its duties.

Reporting to the Board of Directors

At each meeting of the Board of Directors, except in exceptional circumstances, the Executive Management provides the Board of Directors with relevant information on the progress of matters falling within the competence of the Board, as well as on key aspects of the Company’s day-to-day and operational management.

During AY 20/21 the Executive Management reported to the Board inter alia on the following matters:

Updates on the progress of the strategic partnerships and commercial discussions with key customers;
Information on developments potentially affecting the business, including updates on the impact of COVID-19 on the business and forecasts, and the measures taken in this respect;
Information on potentially envisaged divestments of non-core or non-strategic assets and activities, and acquisition or investment opportunities which have been identified;
Reporting on the Company’s financial results and forecasts, and the press releases prepared in this respect, and on the assessment of its financial position;
Reporting on the budget status;
Reporting on the position of financial stakeholders and investors;
Updates on the regular update meetings with its lending banks, and in particular on the progress of the ongoing discussions in view of the refinancing of the existing bank debt and the repayment of the € 125,00m convertible bonds;
Updates on operational results per division as well as management performance and changes at country and divisional level;
Updates on communications with the FSMA;
Updates on current or potential major litigations or claims;
Reporting on the main decisions of the Executive Management, including, amongst others, decisions on the variable remuneration granted to the other Leadership Team members in line with the remuneration policy;
Regular follow-up on all questions within the competence of the Board of Directors.

The Executive Management must inform the Board of Directors, in a timely manner, of relevant information in relation to pending judicial litigations, comments by the statutory auditor, planned reorganizations, and any matters which could have a significant influence on the financial situation of Greenyard, to allow the Board of Directors to implement an effective risk management policy. The Executive Management also reports periodically on the Leadership Team’s activities and on the performance of individual Leadership Team members.

Functioning of the Executive Management

The Executive Management is a collegial body which, in principle, is convened every week and can be convened at any time, as necessary, to ensure the Company’s smooth operation. The Group Legal & HR Director has been appointed to act as secretary at the meetings. During AY 20/21, the Executive Management met once a week on average and, at each meeting, a report was drawn-up to reflect the deliberations and decisions taken.

4.3. The Leadership Team

The Leadership Team provides advice and assistance to the Executive Management in carrying out the Company’s day-to-day management and operational direction.

Composition

The members of the Leadership Team are appointed by the Board of Directors, based on proposals from the Nomination and Remuneration Committee and after consultation with and on the recommendation of the co-CEOs. Members of the Leadership Team may at any time be dismissed by the Board of Directors from their position. The remuneration and the conditions for dismissal of a member of the Leadership Team are governed by an agreement between the member and the Company. The members of the Executive Management are part of the Leadership Team.

At 31 March 2021 the Leadership Team consists of:

Name	Position
Mr Hein Deprez (as permanent representative of Deprez Invest NV)	co-Chief Executive Officer
Mr Marc Zwaaneveld (as permanent representative of MZ-B BV)	co-Chief Executive Officer
Mr Geert Peeters (as permanent representative of Chilibri BV)	Chief Financial Officer
Mr Alexander Verbist (as permanent representative of Qualexco BV)	Group Legal & HR Director
Mr Charles-Henri Deprez (as permanent representative of Alvear International BV)	Managing Director of Fresh division
Mr Maarten van Hamburg	Managing Director of Bakker division
Mr Erwin Wuyts (as permanent representative of Dinobryon BV)	Managing Director of Frozen division
Mr Dominiek Stinckens	Managing Director of Prepared division
Mr Yannick Peeters (as permanent representative of Gemini Consulting BV)	Managing Director of Fresh Belgium

Changes to the composition of and positions held within the Leadership Team during AY 20/21

Ms Irénke Meekma (as permanent representative of Meekma Day B.V.) left Greenyard and stepped down as Managing Director of the Bakker division as of 1 November 2020. Mr Maarten van Hamburg who worked closely with Ms Irénke Meekma within this division for the last six years, two years of which as Managing Director of Bakker Netherlands, has been appointed as MD of the Bakker division with effect from 1 November 2020. The cooperation with Ms Bénédicte Vandaele (as permanent representative of HR Plus Consult BV) as Group HR Director was ended by mutual agreement with effect from 1 June 2021. The Group Legal Director Mr Alexander Verbist (as permanent representative of Qualexco BV) took up her position and became Group Legal & HR Director as of 1 March 2021.# Role and responsibilities of the Leadership Team

The Leadership Team’s role is to supervise and manage the Group’s global operations, under the direction of the Executive Management and taking into account overall Company strategy as defined by the Board of Directors. The Leadership Team’s main responsibilities include supporting the Executive Management in day-to-day management of the Group, developing strategic guidelines, analysing budgets and operational objectives, and supervising local management teams.

Individual members of the Leadership Team have powers and responsibilities assigned to them by the Board of Directors, based on the proposals of the Nomination and Remuneration Committee, and after consultation with and on the recommendation of the co-CEOs. Depending on the subject matter or the decision proposed to the Board of Directors, a member of the Leadership Team may, at the request of the co-CEOs and with the consent of the Chairman of the Board of Directors, be invited to a Board meeting to provide the necessary explanations or advice. The Board may also request, through one of the co-CEOs, special written or oral reports from members of the Leadership Team individually.

In exercising its responsibilities, the Leadership Team is assisted by a team of key personnel drawn from the different divisions of the Group.

Functioning of the Leadership Team

The Leadership Team holds weekly update meetings, and once a month an in-depth and comprehensive meeting is organized where specific topics are thoroughly analyzed and discussed. Any member may request that an additional meeting be convened.

Diversity in the Executive Management and Leadership Team

As at 31 March 2021, the Leadership Team is composed of nine members in total and represents two different nationalities and different age categories. As their function within Greenyard indicates, there are differences in educational background, professional experience and career paths between members, ensuring a complementary set of knowledge and skills within the Leadership Team. The members of the Executive Management also represent a balanced team in its knowledge and experience, as reflected in their biographies (see above).

The Leadership Team is assisted by management teams on country level as well as dedicated corporate teams, in which diversity in terms of gender, nationality and age are well reflected.

Report of the board of directors

Statutory auditor

Deloitte Bedrijfsrevisoren BV were appointed as the Company’s statutory auditor for a period of three years, due to end immediately after the Annual Shareholders’ Meeting of 17 September 2021. To exercise its duties in relation to the Company’s annual accounts and consolidated financial statements, the statutory auditor is represented by Mr Kurt Dehoorne in his capacity as permanent representative, with offices at Raymonde de Larochelaan 19A, 9051 Sint-Denijs-Westrem. Deloitte Bedrijfsrevisoren BV’s registered offices are at Luchthaven Nationaal 1J, 1930 Zaventem.

The Board of Directors will propose, on the recommendation of the Audit Committee, to the Annual Shareholders’ Meeting of 17 September 2021 to renew the mandate of Deloitte Bedrijfsrevisoren BV as statutory auditor for a further term of three years.

Rules for preventing conflicts of interest

Principles

To prevent conflicts of interest, Greenyard is governed by:

the applicable legal provisions for listed companies: articles 7:96 and 7:97 BCAC (see 6.2 and 6.3, below), and
the additional rules specified in Greenyard’s Corporate Governance Charter (see 6.4, below).

Application of the conflict of interest procedure in accordance with article 7:96 BCAC

Pursuant to article 7:96 BCAC, if a director has a direct or indirect financial interest that conflicts with a decision or transaction that falls under the competence of the Board of Directors, the director must notify the other members of the Board of Directors of such an interest at the start of the meeting, and will act in accordance with article 7:96 BCAC. The director may not take part in the discussions of the Board of Directors relating to the transaction or decision, nor take part in the vote.

In AY 20/21, the procedure laid down in article 7:96 BCAC has been applied at two Board of Directors’ meetings (13 November 2020 and 18 February 2021).

Termination by mutual agreement of consultancy services provided by a non-executive director to Greenyard and corresponding adjustment of director’s remuneration

Prior to the start of deliberations, the Board of Directors meeting on 13 November 2020 was informed about a conflicting financial interest within the meaning of article 7:96 BCAC on the proposed adjustment on the advice of the Nomination and Remuneration Committee, to the amount of compensation Mr Johan Vanovenberghe (as permanent representative of Intal BV), who is member of the Board of Directors and the Audit Committee, receives for consultancy services provided to Greenyard, which services are terminated by mutual agreement with effect from 1 January 2021.

Mr Vanovenberghe made the following statement at the beginning of the meeting (as recorded in the minutes (freely translated)):

“Mr Johan Vanovenberghe, as permanent representative of Intal BV, declares that he should be considered as having a conflicting financial interest within the meaning of article 7:96 of the Belgian Code on Companies and Associations in his capacity as director of the Company with respect to the decision to be taken by the Board of Directors, on the advice of the Nomination and Remuneration Committee, within the framework of agenda item 9.2 [Reporting by the Nomination and Remuneration Committee] on the proposed adjustment to the compensation which he currently receives from the Company, which differs from the remuneration policy for the other non-executive directors, given the consultancy services he provides to the Company, which services will no longer be provided as of 1 January 2021. Subsequently, the director concerned declares to leave the meeting when discussing and voting on this agenda item. The Company Secretary will inform the statutory auditor of the application of the conflict of interest procedure by making the minutes of this meeting available.”

After deliberation and discussion, the Board of Directors took the following decision (freely translated):

“the Nomination and Remuneration Committee explains that Mr Johan Vanovenberghe, as permanent representative of Intal BV, receives a fixed annual remuneration of € 142 500 (excluding VAT) for the consultancy services he provides to Greenyard. He receives no additional remuneration in his capacity as a non-executive director and member of the Audit committee. Due to the successful execution of the Transformation phase and the related internal changes on an organizational and structural level, it is no longer necessary to permanently call upon and engage the consulting services of M Johan Vanovenberghe. In view of the foregoing, the Board of Directors, on the recommendation of the Nomination and Remuneration Committee, approves the proposal to remunerate Mr Johan Vanovenberghe, as permanent representative of Intal BV, as of 1 January 2021 in the same manner as the other non-executive directors of the Company. Consequently, as of 1 January 2021, in accordance with the remuneration policy for Greenyard’s non-executive directors, he will receive a fixed annual remuneration of € 30 000, plus an additional attendance fee of € 2 500 for each Board of Directors or Audit Committee meeting he attends.”

The Board of Directors made the following considerations regarding the financial consequences of the Board of Directors decision for the Company (freely translated):

“In this regard, the Board of Directors considers that the financial impact of this decision for the Company is equal to the compensation received by the Company’s non-executive directors in accordance with the remuneration policy consisting of a fixed annual remuneration of € 30 000 and attendance fee of € 2 500 per attended meeting which is lower than the current fixed annual remuneration of € 142 500 (excluding VAT), taking into account the average number of Board of Directors and Audit Committee meetings based on which attendance fees are granted.”

Changes within the composition of the Board of Directors

Prior to the start of deliberations, Ms Valentine Deprez (as permanent representative of Omorphia Invest BV) declared at the Board of Directors’ meeting of 18 February 2021, that in her capacity of director of Greenyard, she should be considered to have a conflicting financial interest within the meaning of article 7:96 BCAC, with respect to the following proposal to be submitted to the Board of Directors, on the recommendation of the Nomination and Remuneration Committee, as recorded in the minutes as follows (freely translated):

“She has a conflicting interest with respect to the proposal that will be submitted for decision to the Board of Directors, on the advice of the Nomination and Remuneration Committee, following the voluntary resignation of Omorphia Invest BV as of today, after the end of the meeting. Under agenda item 8.2 [Reporting by the Nomination and Remuneration Committee] it will be proposed to the Board of Directors to appoint by co-optation, in replacement of Omorphia Invest BV, Galuciel BV, permanently represented by Ms Valentine Deprez. The director concerned declares to leave the meeting when discussing and voting on this agenda item.The Company Secretary will inform the statutory auditor of the application of the conflict of interest procedure by making the minutes of this meeting available.

Report of the board of directors

After deliberation and discussion, the Board of Directors took the following decision (freely translated): “The Board of Directors decides, upon the advice of the Nomination and Remuneration Committee, to appoint by co-optation Galuciel BV, permanently represented by Ms Valentine Deprez, as a director of the Company, replacing Omorphia Invest BV, with effect from 18 February 2021, after the end of the meeting. It will be proposed to the next General Shareholders’ Meeting to resolve on the definitive appointment of Galuciel BV, permanently represented by Ms Valentine Deprez, as director of Greenyard, for the remaining term of the mandate of Omorphia Invest BV, which expires immediately after the Annual Shareholders’ Meeting in 2023 with respect to the financial year ending on 31 March 2023.” The financial consequences of the decision of the Board of Directors for Greenyard are the same as for the appointment of another candidate-director as non-executive director of the Company given that Galuciel BV will be remunerated as member of the Board of Directors in the same way as the other non-executive directors of Greenyard (consisting of a fixed annual remuneration of € 30 000, plus an attendance fee of € 2 500 for each attended Board of Directors’ meeting), including Omorphia Invest BV.

6.3. Application of the conflict of interest procedure in accordance with article 7:97 BCAC

The Company must also comply with the procedure set out in article 7:97 BCAC where the Company, or a subsidiary, is contemplating a transaction with an affiliated company (subject to certain exceptions). Such a decision or transaction must be reviewed and assessed in advance by a committee of three independent directors, assisted by one or more independent experts of their choice. Pursuant to article 7:97 BCAC, after having taken note of the advice of the committee, the Board of Directors shall deliberate on the proposed decision or transaction. The statutory auditor must deliver an opinion as to the accuracy of the information contained in the committee’s advice and the Board minutes. This procedure was not applied in AY 20/21.

6.4. Policy concerning transactions with directors or Leadership Team members not covered by article 7:96 BCAC

Greenyard’s Corporate Governance Charter contains a procedure applying to any transaction contemplated between the following parties:
* Greenyard or one of its subsidiaries, and
* Directors, members of the Leadership Team (including the members of the Executive Management), their respective permanent representatives, or companies that do not belong to the Group, and where the director or the Leadership Team member concerned holds a board management position.

All such transactions must be notified to the Board of Directors which has the sole authority to decide whether Greenyard or the subsidiary concerned may enter into such a transaction. The Board of Directors must justify its decision in its meeting minutes and ensure that any such transaction is at arm’s length. The Company Secretary will notify the statutory auditor by making the minutes available to the auditor for consultation. This prior approval by the Board is not required if the contemplated transaction concerns a customary transaction for the Company or its subsidiary and is carried out under conditions in accordance with general market practice for comparable transactions. During AY 20/21, no transaction or decision gave rise to the application of the rules for the prevention of conflicts of interest not covered by article 7:96 BCAC.

GREENYARD ANNUAL REPORT 2020/2021 / 103

7. Internal governance rules: Dealing Code – Code of Conduct

The legal framework of the market abuse rules applicable to Greenyard consists of Regulation (EU) No. 596/2014 of 16 April 2014 on market abuse (the Market Abuse Regulation), together with its implementing European and Belgian regulations and ESMA and FSMA guidelines (the Market Abuse Framework). The Dealing Code was most recently modified on 23 August 2018. Greenyard has implemented the Market Abuse Framework by adopting a Dealing Code which is made available to all employees, temporary staff, members of the Board of Directors, Leadership Team members, managers, consultants and advisors of the Group through the Company’s website (see below). The Dealing Code is intended to ensure that any persons in possession of inside information do not misuse it, do not place themselves under suspicion of misuse, and that such persons maintain the confidentiality of such information and refrain from market manipulation. This specifically relates to precise information about the Group or Greenyard securities that is not public and that would, if it were made public, be likely to have a significant effect on the price of these securities. The Dealing Code further also includes specific rules applicable to members of the Board of Directors and the Leadership Team and their closely associated persons and legal entities. Any dealings in Greenyard securities by persons discharging managerial responsibilities and persons closely associated to them are reported to the FSMA, as well as the Company Secretary as compliance officer responsible for supervising compliance with the market abuse rules and the Dealing Code. In addition, every individual working within the Group is subject to the Code of Conduct and is expected to understand and follow this Code and all legal requirements currently in force in their daily work. The Code of Conduct aims to build a strong and sustainable business by upholding Greenyard’s ethical values and giving guidance to all employees, directors and managers of Greenyard in making ethical and legal conduct a vital part of their daily business activities. The Code of Conduct was most recently modified on 10 February 2020. The Dealing Code and Code of Conduct may be consulted on the Company’s website under the heading Investor Relations: Corporate Governance ( ).

8. Remuneration report

This remuneration report provides an overview of the remuneration of the members of the Board of Directors, the co-CEOs and the other Leadership Team members with respect to AY 20/21.

8.1. Statement on the remuneration policy for directors and members of the Leadership Team with respect to AY 20/21

The remuneration of directors and members of the Leadership Team with respect to AY 20/21 complies with the existing remuneration policy of the Company (as set out in last year remuneration report). In accordance with article 7:89/1 BCAC a revised remuneration policy will be submitted to the approval of the shareholders as a separate agenda item at the Annual Shareholders’ Meeting of 17 September 2021. It is contemplated that such policy will apply as of AY 21/22. This policy is similar to the policy that was applicable in AY 20/21, except for changes in the relative weighting of the bonus criteria for the Leadership Team members. The remuneration policy is available on the Company’s website under the heading Investor Relations: Corporate Governance ( ). The remuneration policy and the remuneration granted pursuant thereto contribute to the long-term performance of the Company since they aim at and focus on delivering Greenyard’s long-term ambitions and strategic targets, pursuing an organic growth trajectory in both the Fresh segment and the Long Fresh segment of Greenyard over a five-years period, as set forth in the 2020-2025 long-range plan (LRP or Long-Range Plan). In this respect, qualitative and quantitative performance criteria for the members of the Executive Management and the Leadership Team have been aligned to the strategic targets of the Company. In addition, the long-term incentive plan for the members of the Leadership Team is spread over a vesting period which parallels the duration of the LRP.

8.2. Remuneration of the non-executive directors

8.2.1. Introduction

The remuneration of non-executive directors consists of a fixed remuneration of € 30 000 per annum, plus an attendance fee of € 2 500 per meeting of the Board of Directors or an advisory Committee (including attendance through video or telephone conferencing), payable semi-annually. The directors are not entitled to an attendance fee for meetings held by video or telephone conference if the meeting is convened solely for the purpose of a status update or exclusively to make an urgent decision requiring immediate action. This remuneration covers all expenses in the exercise of their mandate, except for international travel expenses incurred by directors domiciled outside Belgium. All remuneration is paid on a pro-rata basis according to the duration of the director’s term of office. By derogation to the foregoing and in accordance with the remuneration policy, the fixed annual remuneration of the Chairman of the Board of Directors amounts to € 142 500. This fixed amount includes the attendance fees for participation in Board meetings and advisory Committees. This amount is considered to be justified in view of the additional time expenditure and specific responsibilities related to his role as Chairman of the Board of Directors. Mr Johan Vanovenberghe (as permanent representative of Intal BV) received a fixed monthly fee of € 11 875 for consultancy services provided to the Company from 1 April 2020 to 31 December 2020 (corresponding to the amount of the fixed annual fee approved by the Annual Shareholders’ Meeting of 18 September 2020, computed on a pro-rata basis). He did not receive any additional compensation in his capacity as non-executive director and member of the Audit Committee. As from 1 January 2021, Mr Johan Vanovenberghe resigned from his consultancy role.# 8.2.2. Remuneration in AY 20/21

The table below lists the individual remunerations paid to each non-executive director with respect to AY 20/21. These amounts are calculated based on eleven meetings of the Board of Directors, four of which were short update meetings for which no attendance fee was granted. In AY 20/21, the Audit Committee met four times and the Nomination and Remuneration Committee met three times. An additional remuneration of € 1 500 was paid to each of the three independent directors (Ms Hilde Laga, Mr Dirk Van Vlaenderen (as permanent representative of Gescon BV) and Mr Aalt Dijkhuizen (as permanent representative of Aalt Dijkhuizen B.V.)), which will be subject to approval by the Annual Shareholders’ Meeting of 17 September 2021. The total annual remuneration paid to the non-executive directors for the performance of their mandate during AY 20/21 amounts to € 482 000 (VAT exclusive). This represents a decrease of € 64 127 compared with the total annual remuneration paid to the non-executive directors for AY 19/20.

Directors' remuneration	Fixed remuneration	Board meeting attendance fee	Committee meeting attendance fee	Additional fee	Total
Deprez Invest NV, rep. by Mr Hein Deprez*	-	-	-	-	-
Ahok BV, rep. by Mr Koen Homan (1)	€ 142 500	-	-	-	€142500
Ms Hilde Laga	€ 30 000	€ 17 500	€ 10 000	€ 1 500	€59000
Gescon BV, rep. by Mr Dirk Van Vlaenderen	€ 30 000	€ 17 500	€ 10 000	€ 1 500	€59000
Aalt Dijkhuizen B.V., rep. by Mr Aalt Dijkhuizen	€ 30 000	€ 17 500	€ 7 500	€ 1 500	€56500
Management Deprez BV, rep. by Ms Veerle Deprez	€ 30 000	€ 17 500	€ 7 500	-	€55000
Omorphia Invest BV, rep. by Ms Valentine Deprez (2)	€ 26 250	€ 15 000	-	-	€41250
Galuciel BV, rep. by Ms Valentine Deprez (2)	€ 3 750	€ 2 500	-	-	€6250
Bonem Beheer BV, rep. by Mr Marc Ooms	€ 30 000	€ 17 500	-	-	€47500
Intal BV, rep. by Mr Johan Vanovenberghe (3)	€ 7 500	€ 5 000	€ 2 500	-	€15000
TOTAL	€ 330 000	€ 110 000	€ 37 500	€ 4 500	€482000

Executive directors receive no additional compensation for the execution of their mandates as directors.
(1) In his capacity as Chairman of the Board of Directors, Mr Koen Homan (as permanent representative of Ahok BV) receives a xed annual remuneration of € 142 500, which includes his attendance fees as director and member of the Nomination and Remuneration Committee as well as any additional fee to be paid for the additional work carried out in the framework of (potential) related party transactions in the meaning of article 7:97 BCAC.
(2) The directors’ remuneration is paid on a pro-rata basis according to the duration of the director’s term of oce.
(3) Mr Johan Vanovenberghe (as permanent representative of Intal BV) received in AY 20/21 a xed remuneration of € 106 875 for con- sultancy services provided to the Company as from 1 April 2020 until 31 December 2020, corresponding to a nine months’ pro-rata of the xed annual fee of € 142 500 granted to him by decision of the Annual Shareholders’ Meeting. For the period as from 1 January 2021 until 31 March 2021, Mr Johan Vanovenberghe received a director’s remuneration of € 15 000, corresponding to a three months’ pro-rata of the xed annual remuneration of € 30 000 granted to all non-executive directors and, on top, an attendance fee for the meetings in which he participated during the three months.

8.3. Remuneration of the members of the Leadership Team

8.3.1. Introduction

The remuneration of members of the Leadership Team (including members of the Executive Management) consists of a xed remuneration and a variable remuneration in the form of a short-term incentive (annual cash bonus) and, in some cases, long-term incentives (performance share units and/or stock options).

Short-term incentive

The short-term incentive takes the form of an annual cash bonus which is performance-related and is based on individual performance combined with performance at Group and/or divisional level (depending on the function of the respective Leadership Team member), including nancial and corporate objectives which are determined annually. The variable remuneration in the form of a cash bonus always relates to performance over the previous nancial year and is based on both quantitative and qualitative parameters. When meeting the objectives set forward (i.e. performance on target), the variable remuneration of the members of the Leadership Team varies between 25% and 35% of the xed annual remu- neration, depending on the function of the respective Leadership Team member. During AY 20/21, the variable remuneration of the members of the Leadership Team could amount to up to maximum 50% of the xed annual remuneration in case of outperformance of both nancial and personal targets. For the members of the Executive Management, the variable remuner- ation is equal to 50% of their xed annual remuneration when the objectives set for the annual bonus are achieved. During AY 20/21, the variable remuneration of the members of the Executive Management could amount to up to maximum 65% of the xed annual remuneration in case of outperformance of both nancial and personal targets. The Annual Shareholders’ Meet- ing of 18 September 2020 approved a dispensation with the application of article 7:91, second paragraph BCAC for AY 20/21. The annual nancial and corporate objectives as well as the annual individual objectives for the Executive Management members and the level of achievement of these objectives are assessed by the Nomination and Remuneration Committee and nally determined by the Board of Directors on the recommendation of the Nomination and Remuneration Committee. The individual objectives of the other members of the Leadership Team are determined annually by the co-CEOs depending on the collective objectives dened for the Executive Management members by the Board of Directors. The Nomination and Remuneration Committee annually evaluates the performance of the Executive Management mem- bers against the objectives set. The performance of other members of the Leadership Team is assessed based on the rec- ommendation of the co-CEOs.

Long-term incentives

Long-term incentives are paid in the form of stock options granted under:

the 2019 stock option plan (2019 SOP) approved and ratied on 20 September 2019 by the Annual Shareholders’ Meeting, and
the 2021 stock option plan (2021 SOP) which forms part of the remuneration policy, to be submitted for approval to the Annual Shareholders’ Meeting of 17 September 2021.

Under these stock option plans, certain stock options are granted through block awards, free of charge, to selected sta members, including Leadership Team members. Each option grants its owner the right to acquire a Greenyard share under the exercise conditions and against payment of the exercise price. These long-term incentives are based solely on quantitative parameters. Vesting is conditional on the continued employ- ment with Greenyard at the time of vesting, upon realisation of which, the options will be vested and denitively acquired. With respect to the stock options granted under the 2019 SOP, a vesting period of three years applies. With respect to the stock options granted under the 2021 SOP, a vesting period of four years applies. When the options are vested, they may be exercised against payment of the exercise price, which equals the average clos- ing price of the Greenyard share for thirty days preceding the grant date, as a result of which an equal number of Greenyard shares will be transferred to the beneciary (it being understood that one option gives the right to one Greenyard share). These shares will benet from the same rights and advantages as the existing shares of Greenyard.# REPORT OF THE BOARD OF DIRECTORS

8.3.1. Long-term incentive plans

The options under the 2019 SOP expire after six years after the grant date. Under the 2021 SOP, the options expire after five years after the grant date. Any option which has not been exercised at its expiration date shall become null and void. Prior to the 2019 SOP, a Performance Share Units plan (PSU Plan) was in place since AY 17/18. Under the PSU Plan a target number of Performance Share Units (PSUs) with a notional value was granted, depending on the position level of the Leadership Team member concerned. The realisation of the performance condition is measured on the basis of the total shareholder return (TSR), calculated using the average Greenyard share price, at the end of the performance period.

GREENYARD ANNUAL REPORT 2020/2021 / 107

The vesting of performance shares granted under the PSU Plan depends on the performance of Greenyard shares over a period of three years. The realisation of the performance condition shall determine the fraction or the multiple (if any) of performance shares the PSUs will effectively entitle. The number of performance shares to which a beneficiary is entitled will vary depending on whether the performance condition is exceeded or not reached, as follows:

Performance Share Units Plan AY 17/18 and AY 18/19	% of performance shares one PSU entitles to
Maximum: TSR increase ≥ 10%	200%
Above target: 5% ≥ TSR increase < 10%	150%
On target: 0% ≥ TSR increase < 5%	100%
Below threshold: TSR increase < 0%	0%

The vesting of the outstanding performance shares under the PSU Plan for AY 18/19 is foreseen for 15 June 2021 (subject to realisation of the performance condition), after which date, all performance shares will have expired. As a result of the applicable long-term incentive plans within Greenyard, Leadership Team members can build up their shareholdings in Greenyard over time through the opportunity given under these plans to acquire shares. Greenyard deviates from provision 7.9 of the 2020 Code, which recommends that the Board of Directors sets a minimum threshold for the holding of Greenyard shares by the Executive Management and Leadership Team members. Currently, the Board of Directors has not formally set any explicit minimum thresholds for Greenyard shareholdings for Executive Management and Leadership Team members, since it wants to allow a degree of flexibility to the persons concerned. The long-term incentive plans demonstrate that the Company wishes to stimulate the long-term vision of the Executive Management and Leadership Team members by allowing them to participate financially in Greenyard’s growth.

Executive directors

Executive directors, who hold executive positions in the Company or one of its subsidiaries, do not receive any additional compensation for their work on the Board of Directors or advisory Committees, since this is part of the total remuneration package they receive in their executive function. The Board of Directors has one executive director, Mr Hein Deprez (as permanent representative of Deprez Invest NV) who received a management fee for AY 20/21 in his co-CEO capacity.

8.3.2. Remuneration of the co-CEOS in AY 20/21

In their capacity as co-CEOs, (i) Mr Hein Deprez (as permanent representative of Deprez Invest NV) was paid a fixed management fee of € 600 000 and (ii) Mr Marc Zwaaneveld (as permanent representative of MZ-B BV) was paid a fixed management fee of € 750 000, for AY 20/21. The difference in fixed management fee can be explained by the fact that Mr Hein Deprez has decided to waive any increase of his management fee for AY 20/21.

Mr Marc Zwaaneveld (as permanent representative of MZ-B BV) received a cash bonus payment of € 487 500 (corresponding to 65% of his fixed management fee) for AY 20/21, for the outperformance of both the financial (adjusted EBITDA and Net Financial Debt) and personal objectives set for AY 20/21. All such objectives are determined in function of the main goal of accomplishing the further recovery and deleveraging of Greenyard. Mr Hein Deprez (as permanent representative of Deprez Invest NV) decided to waive the bonus that would have been paid to him in his capacity as co-CEO for AY 20/21 in order to contribute to Greenyard’s further growth.

The co-CEOs are entitled to customary fringe benefits. Mr Hein Deprez (as permanent representative of Deprez Invest NV) has a company car, the costs of which amounted in AY 20/21 to € 2 628. For Mr Marc Zwaaneveld (as permanent representative of MZ-B BV), costs totalling € 22 000 were reimbursed in AY 20/21 because of his work-related stay in Belgium as a resident of the Netherlands covering amongst others housing expenses. Mr Zwaaneveld has decided to waive his right of reimbursement for housing expenses as of March 2021. No pension contributions were made.

On 19 February 2021, 200 000 stock options were granted to Mr Marc Zwaaneveld (as permanent representative of MZ-B BV), which he accepted in the beginning of AY 21/22.

The charts below show the ratio between the fixed and variable remuneration of Mr Marc Zwaaneveld and Mr Hein Deprez as co-CEOs for AY 20/21:

8.3.3. Remuneration of the other members of the Leadership Team in AY 20/21

Total annual remuneration Components of total annual remuneration AY 20/21
Fixed remuneration
Base Salary	2,504,956
Benefits in kind & Pensions	45,970
Variable remuneration
Bonus	1,021,832
TOTAL	3,572,758

For AY 20/21, the total annual remuneration paid to the other members of the Leadership Team (excluding the co-CEOs) was € 3 572 758. All remuneration is paid on a pro-rata basis according to the length of the term of office of the members of the Leadership Team. For the members who are employees, defined contributions were made within the framework of pension schemes.

The chart below shows the ratio between the total fixed and variable remuneration of the members of the Leadership Team (excluding the co-CEOs) for AY 20/21:

pie
    title Remuneration Ratio AY 20/21
    "Fixed" : 2504956
    "Bonus" : 1021832

CEO I Deprez Invest NV	CEO I MZ-B BV	Other Leadeship Team members
Fixed	Fixed	Fixed
Bonus	Bonus	Bonus

GREENYARD ANNUAL REPORT 2020/2021 / 109

8.3.4. Annual short-term incentive components and targets for AY 20/21

For AY 20/21, the variable remuneration in the form of an annual cash bonus is based on personal objectives (up to a maximum of 30%) in combination with financial objectives (up to a maximum of 70%) at Group and/or divisional level, depending on the function of the Leadership Team member. The financial objectives for AY 20/21 consist of an adjusted EBITDA component, in combination with, depending on the Leadership Team member’s position, a Net Financial Debt component to be achieved at Group level or a Cash Conversion Cycle component on divisional level. The personal objectives for AY 20/21 reflect the corporate goals and strategy and include elements of business development and strategic partnerships roll out, as well as transformation and cost savings, but are also related to the efficiency of certain processes and the delivery of certain projects by the member concerned.

Key Performance Metrics for AY20/21	Relative Weight
Financial objectives	70%
Adjusted EBITDA	50%
Net Financial Debt	20%
Cash Conversion Cycle
Personal objectives	30%

The evaluation period coincides with AY 20/21, starting on 1 April 2020 and ending on 31 March 2021. The level of achievement of the objectives is reviewed and assessed in the first quarter of the following AY 21/22 by the Nomination and Remuneration Committee, before being discussed and finally determined by the Board of Directors. Decisions on the variable remuneration of the other Leadership Team members are taken on recommendation by the Executive Management. The quantitative calculation is carried out based on audited figures.

As of 1 April 2021, the relative weighting of the bonus criteria for the Leadership Team members will be redistributed with 50% financial objectives, 25% personal objectives and 25% individual performance and behavioural competences, as set forth in the revised remuneration policy, to be submitted for approval to the Annual Shareholders’ Meeting of 17 September 2021.

For AY 20/21, the short-term variable remuneration granted to the members of the Leadership Team other than the co-CEOs amounted to € 1 021 832. This amount results from an outperformance of the financial objectives on Group level (adjusted EBITDA and Net Financial Debt) or divisional level (adjusted EBITDA and Cash Conversion Cycle), depending on the position of the Leadership Team member, and an achievement of the personal objectives ranging from “on target” to “stretch” by the other Leadership Team members.

Report of the board of directors 110 /

8.3.5. Long-term incentive plans

Performance Share Units Plan (replaced by Stock Option Plan as from AY 19/20)

Table: Performance Share Units held by persons who are member of the Leadership Team in AY 20/21	PSU AY 17/18	PSU AY 18/19
Grant Date	15 June 2017	15 June 2018
Vesting Date	15 June 2020 (1)	15 June 2021 (2)
Exercise Price	€ 18,51	€ 14,78
Hein Deprez (as permanent representative of Deprez Invest NV) (3)	-	25 219
Marc Zwaaneveld (as permanent representative of MZ-B BV) (4)	-	-
Geert Peeters (as permanent representative of Chilibri BV) (4)	-	4 707
Alexander Verbist (as permanent representative of Qualexco BV)	1 891	2 354
Bénédicte Vandaele (as permanent representative of HR Plus Consult BV) (4)	-	-
Charles-Henri Deprez (as permanent representative of Alvear International BV) (5)	540	2 354
Irénke Meekma - (6)	-	-
Erwin Wuyts (as permanent representative of Dinobryon BV) (4)	-	-
Dominiek Stinckens (5)	1 891	2 354
Yannick Peeters (as permanent representative of Gemini Consulting BV) (4) and (5)	-	403

(1) Given that the TSR increase with respect to PSUs which were granted on 15 June 2017 was less than 0% on the vesting date, 15 June 2020, the performance condition was deemed not to have been reached.Therefore, the PSUs granted in AY 17/18 have not vested and have not given any entitlement to performance shares. (2) The PSUs which were granted on 15 June 2018 will, in accordance with the PSU Plan, vest on 15 June 2021 at the end of the performance period of three years, subject to the achievement of the performance condition as set out above. In the second quarter of AY 21/22, the Board of Directors will determine, on the recommendation of the Nomination and Remuneration Committee, the extent to which the performance condition has been realized and whether the PSU beneciaries are entitled to performance shares, and how many. (3) No member of the Leadership Team on the grant date, 15 June 2017. (4) Not yet working for Greenyard on the respective grant date. (5) PSUs have not been granted in relation to their capacity as a Leadership Team member, but in the framework of the long-term incen- tive scheme for Managing Directors at country and divisional level and for selected key management personnel in the Group. (6) She is not entitled to any PSUs given that the 2 354 PSUs which were initially granted to her were not yet vested at the time of her departure.

Stock Option Plan (applicable as from AY 19/20)

Stock options granted to or held by persons who are member of the Leadership Team in AY 20/21	2019 SOP	2021 SOP
Grant Date	15 March 2019	19 February 2021
Final Vesting Date	31 March 2022	31 March 2025
Exercise Price	€ 3,44	€ 6,45
Marc Zwaaneveld	450 000	200 000
Geert Peeters(1)	250 000	100 000
Alexander Verbist	50 000	60 000
Charles-Henri Deprez	50 000	60 000
Yannick Peeters	50 000	60 000
Maarten van Hamburg (2)	-	60 000
Bénédicte Vandaele (3)	34 000	-

(1) The stock options granted to Mr Geert Peeters vest, in deviation from the 2021 SOP, over a period of three years. (2) No member of the Leadership Team on the grant date, 15 March 2019. (3) Ms Bénédicte Vandaele retains 34 000 stock options following her departure, which will vest on 30 September 2022 (given that the stock options were granted on 24 September 2019), in accordance with the terms of the 2019 SOP.

GREENYARD ANNUAL REPORT 2020/2021 / 111

8.4. Evolution of the remuneration and pay-gap information

The below table contains information on the annual evolution of (i) the remuneration of the non-executive directors, the co-CEOs, and the members of the Leadership Team, (ii) the performance of the Company and (iii) the average remuneration on a full-time equivalent basis of employees of the Company (other than the persons under item (i), over the ve most recent nancial years.

Total remuneration of the members of the Board of Directors

	Annual change on average remuneration (1)	AY 16/17	AY 17/18 vs. AY 16/17	AY 17/18	AY 18/19 vs. AY 17/18	AY 18/19	AY 19/20 vs. AY 18/19	AY 19/20	AY 20/21 vs. AY 19/20	AY 20/21
Board of Directors	€ 316383	67%	€ 481320	29%	€ 622500	-4%	€ 538032	-10%	€ 482000

(excl. executive director(s))

Total remuneration of the members of the Leadership Team (8)

	Annual change	AY 16/17 (2)	AY 17/18 vs. AY 16/17	AY 17/18 (3)	AY 18/19 vs. AY 17/18	AY 18/19 (6)	AY 19/20 vs. AY 18/19	AY 19/20(7)	AY 20/21 vs. AY 19/20
CEO I Deprez Invest NV	NA	NA	(4) € 750000	-20%	€ 600000	0%	€ 600000
(represented by Mr Hein Deprez)
CEO I MZ-B BV	NA	NA	NA	(5) € 1435500	-14%	€ 1237500
(represented by Mr Marc Zwaaneveld)
Other members	€ 2717000	22%	€ 3319723	-24%	€ 2512000	33%	€ 3333000	7%	€ 3572758

Greenyard Group performance

	2017	2018	2019	2020
Adjusted EBITDA	-4%	-54%	48%	22%
Sales	-2%	-6%	4%	9%
ESG rating - CDP (9)	NA	F	F	B-

Average remuneration on a FTE basis of employees

	Annual change	AY 17/18 vs. AY 16/17(11)	AY 18/19 vs. AY 17/18	AY 19/20 vs. AY 18/19	AY 20/21 vs. AY 19/20(12)
Employees of Greenyard NV (10)	(200%)	5%	8%	-7%

(1) Average remuneration of Board members for a given nancial year calculated on the basis of the total remuneration of the non-executive directors paid during the relevant year, divided by the number of directors as per the end of that year. (2) For AY 16/17, the total remuneration of the former CEO (Mavac BV, represented by Ms Marleen Vaesen) amounted to € 1 111 170. (3) For AY 17/18, the total remuneration of the former CEO amounted to € 1 014 644, who was replaced as CEO by Deprez Invest NV, who received in the position of CEO for AY 17/18 € 125 000. (4) Mr Hein Deprez (as permanent representative of Deprez Invest NV) has been appointed as CEO as from 1 February 2018. (5) Mr Marc Zwaaneveld (as permanent representative of MZ-B BV) has been appointed as co-CEO, alongside Mr Hein Deprez, as from 9 February 2019. (6) No bonus was paid out for AY 18/19. (7) Mr Marc Zwaaneveld (as permanent representative of MZ-B BV) received an exceptional bonus of € 600 000, paid in two instalments, for the achievement of specic personal objectives set for AY 19/20 linked to certain milestones in the framework of the Transfor- mation Plan implemented in view of the further deleveraging of Greenyard. Mr Hein Deprez (as permanent representative of Deprez Invest NV) decided to waive the bonus that would have been paid to him in his capacity as co-CEO for AY 19/20 in order to contribute to Greenyard's accelerated recovery. (8) Total remuneration is composed of the xed remuneration and bonus, excluding the PSUs and stock options granted, but not vested under the applicable LTI schemes in order to compare on a like for like basis.

Report of the board of directors

112 / (9) CDP climate change and water security scores, A-F (A= topmark), last updated on 10 December 2020. (10) The average remuneration (on a FTE basis) of the employees of Greenyard NV is calculated on a Belgian GAAP basis (the sum of line items 620 and 622 of the statutory annual accounts divided by the number of FTE of Greenyard NV set forth in line item 1003 in the social balance annex). (11) Greenyard NV (previously Pinguin NV) historically included the Belgian operations of the Frozen division, including personnel. As of AY 16/17 these operations have been carved-out to a Group entity of the Frozen division. (12) The decrease vs. AY 19/20 is due to the departure of certain senior personnel members. For AY 20/21, the pay gap between the remuneration of the highest paid member of the Leadership Team and the lowest paid employee of Greenyard corresponded to a ratio of 23,25: 1.

8.5. Severance pay for members of the Leadership Team

In accordance with article 7:92 BCAC, the agreements concluded with the members of the Leadership Team provide for severance pay not exceeding twelve months’ remuneration. More specically, the agreements concluded with the members of the Executive Management provide for a severance pay of twelve months’ remuneration. For the other members of the Leadership Team, the severance pay is in principle equal to six months’ remuneration or, if the member is an employee, this is calculated in accordance with the applicable legal provisions under the employment contract. In the event of early termination, the Board of Directors justies and decides, on the recommendation of the Nomination and Remuneration Committee, whether the Leadership Team member concerned qualies for severance pay, and the basis on which it is calculated. No severance pay was paid following the decision of Ms Irénke Meekma (as permanent representative of Meekma Day B.V.) to step down as Managing Director of the Bakker division and to leave Greenyard. She is not entitled to any PSUs given that the PSUs which were granted to her were not yet vested at the time of her departure. Ms Bénédicte Vandaele (as permanent representative of HR Plus Consult BV) received a notice fee equal to three months’ pay. She retains 34 000 stock options of the 50 000 stock options granted under the 2019 SOP. These options will vest in accordance with the terms of the 2019 SOP (see 8.3.1 and 8.3.5, above). The outstanding 16 000 stock options have lapsed in accordance with the 2019 SOP following her departure.

8.6. Claw-back

Greenyard has decided to implement for AY 21/22 a claw-back mechanism for the members of the Executive Management and Leadership Team which enables Greenyard in certain cases of criminal oence or breach of the code of conduct of the Company to require a member to repay to the Company variable remuneration that has already been paid out. Long-term incentive plans within Greenyard provide for a ‘bad leaver’ clause stipulating that, in certain cases (such as termination for cause), the holder or beneciary concerned loses the stock options or PSUs previously granted, which will be automatically annulled and will no longer vest, with no compensation of any kind being due from the Company. Under the 2019 SOP and 2021 SOP, the stock options will in such cases be lost, regardless of whether they have already vested. The Company considers such bad leaver clause being equivalent to a claw-back clause. During AY 20/21, no claw-back and no bad leaver clause were exercised.

GREENYARD ANNUAL REPORT 2020/2021 / 113

8.7. Information on shareholder vote

The Annual Shareholders’ Meeting of 18 September 2020 approved the remuneration report with respect to AY 19/20 with a majority of 98,80% shareholder votes in favor. Greenyard is committed to enduring engagement with all its stakeholders and will always actively consider their feedback to shape its remuneration practices.

9. Other information to be communicated pursuant to article 3:6 (§1) BCAC and article 34 of the Royal Decree of 14 November 2007 on the obligations of issuers of nancial instruments admitted to trading on a regulated market

This section contains the information required to be disclosed under this legislation and not included in other parts of this report.

Shareholders’ structure

Reference is made to the section information for shareholders of the Financial Report.# Specic rights of control

No special rights of control have been granted to any shareholders of Greenyard.

Restrictions on transfers of securities

The Company’s articles of association do not impose any restrictions on the transfer of shares in Greenyard.

Limitations by law or the articles of association on the exercise of voting rights

Article 8 of the Company’s articles of association states that if a shareholder fails to pay a call on his shares within the time set by the Board of Directors, exercise of the voting rights attaching to the relevant shares is suspended ipso jure until such time as the call is satised. On 31 March 2021, the capital was fully paid up.

In accordance with article 10 of the Company’s articles of association, the Board of Directors may suspend exercise of the rights attaching to a share if the rights attaching thereto are divided among several persons until such time as a single person is designated as the shareholder vis-à-vis the Company. The same rules apply to other securities issued by the Company.

Rules on amendments to the articles of association

Pursuant to article 7:153 BCAC, any amendment to the Company’s articles of association may only be authorised with the approval of at least 75 % of the votes validly cast at an Extraordinary Shareholders’ Meeting where at least 50 % of the Company’s share capital is present or represented. Abstentions shall not be included in the numerator or denominator for the purpose of calculating votes. If the attendance quorum of 50 % is not met, a new Extraordinary Shareholders’ Meeting must be convened at which the shareholders may decide on the agenda items, irrespective of the percentage of share capital present or represented at such meeting.

Rules on appointment and replacement of directors

The directors are appointed by the Shareholders’ Meeting. The Chairman of the Nomination and Remuneration Committee is in charge of the appointment process. The Nomination and Remuneration Committee recommends suitable candidates to the Board of Directors. The Board then makes a proposal to the Shareholders’ Meeting for the appointment as director. The Nomination and Remuneration Committee determines the requirements regarding the independence, competency and other qualications of the members of the Board of Directors. After consultation with the Chairman of the Board of Directors, the Nomination and Remuneration Committee takes all the initiatives necessary for the best composition of the Board of Directors. Before each new appointment, an assessment of the skills, know-how and experience already available and required at the Board level is carried out. A prole of the required role is determined when proposing candidates for director, whereby special attention is paid to diversity and complementarity with regard to varied backgrounds and competences.

In the case of the appointment of a new director, the Chairman of the Nomination and Remuneration Committee ascertains that the Board of Directors, prior to taking into consideration the candidate, has sucient information on the candidate (such as a curriculum vitae, the assessment based on a rst interview, a list of mandates the candidate already holds and, if required, the information necessary to assess the independence of the director).

After consultation with the Nomination and Remuneration Committee, the Board determines the prole of each new independent director, taking into account the applicable independence requirements set out in Greenyard’s Corporate Governance Charter. The Nomination and Remuneration Committee initiates the search for suitable candidates for each vacant position as independent director and can engage an external consultant to assist with the selection procedure. The Nomination and Remuneration Committee’s candidate proposal to the Board of Directors for a vacant position as independent director includes the following information: (i) overview of all persons contacted and all candidatures received, (ii) detailed curriculum vitae of the proposed candidate, (iii) detailed written advice from the Committee in respect of the proposed candidate, including the proposed remuneration, and (iv) any report submitted to the Committee by an external consultant (if appointed).

The decision of the Board of Directors to propose a candidate for independent director for nomination to the Shareholders’ Meeting requires a special two-thirds majority. The proposal is accompanied by a recommendation by the Board of Directors and by relevant information on the professional qualications of the candidate director, including a list of the positions already held. This procedure also applies to the reappointment of a director.

The Company’s articles of association provide that directors are appointed for a maximum term of six years. The Board of Directors will propose to the Shareholders’ Meeting to appoint directors only for a duration of four years. The mandate ends at the closure of the Annual Shareholders’ Meeting which was determined to be the end date of the appointment. Retiring directors are eligible for reappointment. The mandate of a director may be revoked at any time by simple majority at the Shareholders’ Meeting. The Board of Directors will propose to the Shareholders’ Meeting that the mandate of the directors will end at the Annual Shareholders’ Meeting of the calendar year in which he or she reaches the age of seventy, unless the Board, on the recommendation of the Nomination and Remuneration Committee, decides otherwise.

In accordance with article 16 of the Company’s articles of association, in the event of an early vacancy on the Board of Directors, the remaining directors will manage the Company and are entitled to temporarily ll the vacancy until the Share- holders’ Meeting appoints a new director. The appointment is placed on the agenda of the next Shareholders’ Meeting.

Authority of the Board of Directors to issue or purchase own shares

In accordance with article 12 of the Company’s articles of association, the Board of Directors is explicitly authorised to acquire, during a ve-year period counting from the date of the Extraordinary Shareholders’ Meeting of 15 September 2017, and within the limits of the law, whether on or outside of the stock exchange, directly or indirectly, by way of purchase or exchange, contribution or any other way of acquisition, the maximum number of Company’s shares permitted by law, without requiring Shareholders’ Meeting’s approval or resolution, for a price or an exchange value per share inferior or equal to the highest current independent bid price of the share on Euronext Brussels on the date of the acquisition, and minimum € 1 per share.

The authorisation granted extends to any acquisitions (by way of purchase or exchange, contribution or any other way of acquisition) of the Company’s shares, directly or indirectly, by the direct subsidiaries of the Company within the meaning of article 7:221 BCAC.

The Company and its direct subsidiaries are also explicitly authorised to dispose of the shares acquired by the Company on or outside of the stock exchange by way of sale, exchange, conversion of bonds or any other way of transfer (whether or not for valuable consideration), to oer these shares to the personnel, or, on the other hand, to dispose of or cancel these shares, without requiring Shareholders’ Meeting approval or resolution and without limitation in time. In the case of cancellation of the shares thus acquired by the Company, the corresponding amendments to the articles of association will be enacted before the notary public at the request of two directors of the Company.

Shareholders’ agreements that are known to the issuer and that could give rise to share transfer restrictions and/or limitations to the exercise of the voting rights

The Board of Directors has no knowledge of the existence during AY 20/21 of shareholders’ agreements that could give rise to share transfer restrictions and/or limitations to the exercise of voting rights.

Important agreements that take eect, undergo changes or expire in the event of change of control over the Company

The following agreements take eect, undergo changes or expire in the event of change of control over the Company:

The Multi-Country Factoring Syndication Agreement originally dated on 1 March 2016, as amended and restated from time to time, and all its addenda which constitute an integral part of the Agreement, between the Company, Greenyard Fresh NV and certain of its other subsidiaries as the Clients and the Additional Clients, of the one part, and ING Commercial Finance Belux NV as the Agent, BNP Paribas Fortis Factor NV, KBC Commercial Finance NV and Belus Commercial Finance NV as the original Factors, of the other part; and
The Senior Facilities Agreement originally dated 22 December 2016, as amended and/or restated from time to time and most recently on 29 March 2021, between, among others, Greenyard and certain of its subsidiaries named therein as original borrowers and/or original guarantors, BNP Paribas Fortis SA/NV, KBC Bank NV, ING Belgium SA/NV, Belus Bank NV/SA, ABN AMRO Bank NV and Coöperatieve Rabobank U.A. as arrangers, the nancial institutions named therein as original lenders and ING Bank NV as agent and security agent;
The Intercreditor Agreement originally dated 22 December 2016, as amended from time to time, between, of the one part, ING Bank N.V.# Report of the board of directors

10. Internal control and risk management

The Board of Directors is responsible for monitoring the risks that are specific to the Group and for the evaluation of the effectiveness of the internal control system. The Board of Directors has approved an internal control system based on the Committee of Sponsoring Organisations of the Treadway Commission (‘COSO’) model. The following pillars are discussed below: control environment, risk management systems and internal control, financial reporting and communication, and, to conclude, oversight and monitoring. Management has implemented a variety of controls to manage the risks that could undermine the achievement of the strategic objectives.

10.1. Control environment

10.1.1. General

The Group performs a conscious risk management based on the implementation of an internal control system and achieved by encouraging a company culture in which all personnel are empowered to fulfil their roles and responsibilities in accordance with the highest standards of integrity and professionalism.

10.1.2. Audit Committee

Without prejudice to the responsibilities of the Board of Directors as a whole, the Audit Committee monitors the effectiveness of the internal control and risk management systems set up by the management of the Group in order to confirm that the principle risks (including those related to compliance with legislation and regulations) are identified, managed and brought to the notice of the responsible individuals, in accordance with the framework established by the Board of Directors. At least twice per year, the Audit Committee meets the statutory auditor to discuss the subjects that fall under his remit and all matters that arise from the auditing process. In addition, the management team gives a regular update to the Audit Committee on pending disputes. In that respect, a quantified risk assessment and classification is carried out.

10.1.3. Internal audit

The Group has a professional internal audit department. The Audit Committee reviews the internal audit’s risk assessment, the internal audit charter and annual internal audit plan and regularly receives internal audit reports for review and discussion. The mission of the internal audit department is to provide independent, objective quality assurance and support, designed to add value and improve the Group's operations and systems of internal controls. The internal audit department assists the Group with accomplishing its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control, and governance processes. Internal control deficiencies identified by internal audit are communicated in a timely manner to management and periodic follow-up is performed to ensure corrective action has been taken.

10.2. Risk management systems and internal control

The most important aspects of the risk management and internal control process can be summarised as follows:

The risk position of the Company, the possible financial impact and the required action points are evaluated regularly by management and the Board of Directors, advised by the Audit Committee; hereby risks are prioritised and action plans are implemented;
The Board of Directors discusses the strategy and investment projects; an evaluation is also made of the associated risks. Where needed, appropriate measures are taken;
The internal audit reports are always discussed with local management and a summary is discussed with the Audit Committee on a regular basis.

For a discussion of the principal risks and the associated control activities, please see note 6.18. Risk management policy.

10.3. Financial reporting and communication

The financial reporting and communication process of the Group can be summarised as follows: A closing plan with checklist is drawn up with the tasks that must be accomplished by the quarterly, semi-annually and year-end closing of the Company and its subsidiaries. The financial department provides the accounting figures under the supervision of the chief accountant or financial director of each subsidiary. The controllers verify the validity of those figures and issue a report. Both coherence testing by making comparisons with historical or budgetary figures and transaction controls using random samples are performed. As part of the closing process, an extensive reporting set with financial and operational data must also be provided in each case. The Audit Committee supports the Board of Directors in overseeing the integrity of the financial information provided by Greenyard. In particular, it reviews the relevance and the consistency of the application of the accounting standards used within the Group and the criteria for the consolidation of the accounts of the companies of the Group. The oversight covers the periodic information before it is published and is based on the audit program used by the Audit Committee. Management informs the Audit Committee about the methods that are used to account for significant and unusual transactions of which the accounting treatment could be open to a variety of interpretations. The Audit Committee discusses the financial reporting methods with both the Leadership Team and the external auditor.

10.4. Oversight and monitoring

Oversight of internal controls is exercised by the Board of Directors, supported by the activities of the Audit Committee and the internal audit department. The external auditor carries out an annual evaluation of the internal controls related to the risk associated with the financial statements of the Group. In that regard, the external auditor makes recommendations concerning the internal control and risk management systems when appropriate, which are formalised in a management letter that is already issued. Management undertakes actions to handle the findings and thereby achieve an even better control environment. Those measures are followed up and the Audit Committee is monitoring if the Leadership Team is fulfilling the recommendations presented by the external auditor.

Information for shareholders

1. Shares

The Company’s shares are listed on the continuous market of Euronext Brussels (ticker: GREEN), more specifically in the compartment B (mid-caps) of this market, since 1 March 2005. The Greenyard share was introduced to the Brussels Stock Exchange in June 1999. Greenyard NV has a liquidity contract with ABN AMRO Bank. As per 31 March 2021, the Company holds 1.363.854 treasury shares.

2. Share trading evolution

	AY 20/21	Date	AY 19/20	Date
Highest price	€ 9,00	3/29/2021	€ 6,94	11/18/2019
Lowest Price	€ 3,70	4/2/2020	€ 2,34	8/26/2019
Opening Price	€ 3,71	01/4/2020	€ 3,36	4/1/2019
Closing Price	€ 8,69	31/3/2021	€ 3,89	3/31/2020
Average daily trading volume	68 326		108 620
Turnover	€ 104 470 994		€ 117 040 178
Total number of shares (incl. treasury shares)	51 515 443		44 372 585
Market capitalisation	€ 447 669 200		€ 172 609 356

The average daily trading volume in AY 20/21 was 68 326 shares, compared with 108 620 shares the year before, or an 37,1% decrease. Due to a decreasing liquidity, specifically in 2020, total turnover has decreased from € 117 040 178 to € 104 470 994.

3. Capital structure

Authorised capital

In accordance with article 7 of the Company’s articles of association, the Board of Directors is authorised to increase the capital of the Company in one or more instalments by an amount equal to the share capital amounting to € 293 851 765,23. This authorisation is valid for a period of five years as from 17 October 2019, the date the resolutions of the Extraordinary Shareholders’ Meeting of 20 September 2019 were published in the Belgian Official Gazette. This authorisation to the Board of Directors is renewable. Pursuant to this authorisation, the Board of Directors is authorised to increase the share capital by means of a contribution in cash or in kind within the limits set forth by the BCAC, by conversion of reserves into share capital, whether or not available or unavailable for distribution, with or without the issuance of new shares. The Board of Directors may also use this authorisation for the issuance of convertible bonds, subscription rights, bonds which other securities are attached to and other securities. In addition, the Board of Directors is authorised, when it increases the share capital or issues convertible bonds, subscription rights, bonds which other securities are attached to or other securities, to limit or exclude the preferential subscription right, also for the benefit of one or more specific persons, other than members of the personnel.# Report of the board of directors

If an issue premium is paid as a result of a capital increase decided upon within the framework of the authorised capital, it will automatically be booked to the ‘issue premiums’ account, which will constitute a guarantee for third parties to the same extent as the share capital and which, subject to the possibility of converting this reserve into share capital, can only be reduced or written off by a new decision of an Extraordinary Shareholders’ Meeting taken in accordance with the conditions for amending articles of association. In addition, the Board of Directors is expressly authorised to increase the share capital in one or more instalments after the Company has received a notification from the FSMA that it has been notified of a public takeover bid on the Company’s securities by means of a contribution in kind or in cash with the cancellation or exclusion of the preferential subscription right of the shareholders, and/or by the issue of voting securities, whether or not representing the share capital, or securities giving the right to subscribe to or acquire such securities, even if such securities or rights are not offered to the shareholders in preference to others in proportion to the share capital represented by their shares, under the conditions provided for in the BCAC. This authorisation is granted for a period of three years as from the date of the resolutions of the Extraordinary Shareholders’ Meeting of 20 September 2019. On 26 March 2021, the Board of Directors increased the share capital by € 50,0m within the framework of the authorized capital, through the issuance of 7 142 858 shares, which were fully paid up. Transaction costs of € 0,7m were recorded as a reduction in share capital. As a result of the Board of Directors’ decision of 26 March 2021, the amount remaining available for a capital increase within the framework of the authorized capital is equal to € 243 851 759,23.

Issuance of convertible bonds

On 7 December 2016, the Board of Directors approved the issuance by Greenyard Fresh NV of senior unsecured convertible bonds for an aggregate amount of € 125,0m, guaranteed by the Company and convertible into ordinary shares of the Company, due 22 December 2021. These convertible bonds carry a coupon of 3.75% per annum and are listed on the Open Market segment of the Frankfurt Stock Exchange (Freiverkehr). The Board of Directors considered it in the Company’s interest to suspend the preferential subscription rights of the existing shareholders, in accordance with Articles 596 and subsequent articles of the Company Code, in order to benefit from the current market opportunities and to involve the capital markets in time and efficiently, taking into account the formalities which need to be complied with in the case of offering convertible bonds with preferential subscription rights. The Board of Directors made use of its powers under the authorised capital when, on 15 December 2016, it approved the capital increase in kind, within the limits of its authorised capital, by means of the contribution by the holders of convertible bonds in Greenyard Fresh NV of their receivable against Greenyard Fresh NV into the Company, subject to the effective exercise of their conversion right. On 22 December 2016, the Board of Directors enacted the implementation of the convertible bonds’ issuance. On 23 November 2017, the Issuer unilaterally, irrevocably and unconditionally waived its right to make a Cash Alternative Election as provided in clause 6(m) of the terms and conditions. As per 31 March 2021, no conversion options had been exercised.

Acquisition of own shares

In accordance with article 12 of the Company’s articles of association, the Board of Directors is authorised to acquire own shares up to the maximum number of shares as permitted under article 7:215 BCAC, without a preliminary resolution of the General Shareholders’ Meeting being required. The Board of Directors was authorised for a period of five years as from 10 October 2014. This authorisation was renewed for an additional period of five years by decision of the Extraordinary Shareholders’ Meeting held on 15 September 2017.

Share buyback programme

On 14 March 2017, the Board of Directors approved, within the authority granted by the General Shareholders’ Meeting, the launch of a share buyback programme of up to 1 750 000 shares. The programme is designed to mitigate the potential dilution from the convertible bond and to create a pool of own shares to finance potential future acquisitions and/or long-term incentive plans. By the end of August 2017, the Company had repurchased all 1 750 000 shares or almost 3,94% of the total issued share capital. The total consideration amounted to € 30,0m or € 17,17 per share. As of 31 March 2021, the Group holds 1 363 854 treasury shares, representing 3,1% of the shares.

Shareholder structure

Every shareholder with at least 3,0% of voting rights is required to comply with the Act of 2 May 2007, the Royal Decree of 14 February 2008 concerning the disclosure of the major holdings and the Company Code. The shareholders concerned are required to send a notification to the Financial Services and Market Authority (FSMA) and to the Company. Pursuant to the capital increase of 26 March 2021 for a total amount of € 50 000 006, the new total number of shares is 51 515 443.

Shareholder structure	Number of shares	%
Deprez Holding NV	15,327,254	29,8%
Food Invest International NV	6,534,173	12,7%
Alychlo	6,928,572	13,4%
Sujajo Inv.	3,657,145	7,1%
Mr Joris Ide	1,547,286	3,0%
Treasury shares	1,363,854	2,6%
Public	16,157,159	31,4%
TOTAL	51,515,443	100,0%

An actual overview of the shareholder structure can be consulted on our website under the heading Investor relations > Share Information.

GREENYARD ANNUAL REPORT 2020/2021 / 121

Major changes in shareholder structure

Mr Hein Deprez, Deprez Holding NV, Food Invest International NV and Greenyard NV (in respect of its treasury shares) have notified Greenyard that on 26 March 2021 their shareholding in Greenyard has downwards (passively) crossed the 50% statutory threshold. According to the transparency notification of 31 March 2021, Deprez Holding NV, Food Invest International NV and Greenyard NV (in respect of its 1 363 854 treasury shares) together hold 23 225 281 Greenyard shares, representing 45,1% of the total number of Greenyard shares respectively voting rights. On 26 March 2021 Alychlo NV subscribed for 6 928 572 new Greenyard shares through a contribution of an amount of € 48 500 004 as a result of which its shareholding in Greenyard has exceeded the 10% statutory threshold. According to the transparency notification of 30 March 2021, Alychlo NV holds 6 928 572 Greenyard shares or 13,4% of the total number of Greenyard shares respectively voting rights. Mr Thomas Borman and Sujajo Investments S.A. have notified Greenyard that on 26 March 2021 their shareholding in Greenyard has downwards(passively) crossed the 7,5% statutory threshold. According to the transparency notification of 31 March 2021, Sujajo Investments S.A. holds 3 657 145 Greenyard shares, representing 7,1% of the total number of Greenyard shares respectively voting rights. The participation of Mr Joris Ide who subscribed for 214 286 new shares through a contribution of an amount of € 1 500 002 in Greenyard on 26 March 2021, remains 3,0% of the total number of Greenyard shares respectively voting rights.

Contacts

The Investor Relations team is available to answer shareholder and investor questions about the Group’s activities, shares and other information requests:

For the attention of Mr Dennis Duinslaeger, Investor Relations Manager
Greenyard NV
Strijbroek 10
BE – 2860 Sint-Katelijne-Waver

Or by e-mail:

Financial calendar

Q1 trading update AY 21/22: 27 August 2021 (before market)
General Assembly AY 20/21: 17 September 2021 (2pm)
Announcement of half-year results (01/04/2021 - 30/09/2021): 16 November 2021 (before market)
Q3 trading update AY 21/22: 22 February 2022 (before market)

122 / Consolidated financial statements

GREENYARD ANNUAL REPORT 2020/2021 / 123

Consolidated financial statements

124 / Consolidated income statement

Consolidated income statement

Note	AY 20/21 €'000	AY 19/20 €'000
CONTINUING OPERATIONS
Sales	4 416 227	4 060 992
Cost of sales	-4 118 950	-3 813 320
Gross profit/loss (-)	297 277	247 672
Selling, marketing and distribution expenses	-97 048	-94 275
General and administrative expenses	-158 991	-147 624
Impairment property, plant & equipment	-1 413	-7 566
Other operating income/expense (-)	11 153	-880
Share of profit/loss (-) of equity accounted investments	507	97
EBIT	51 485	-2 576
Interest expense	-42 579	-51 861
Interest income	260	289
Other finance result	-4 845	-9 237
Net finance income/cost (-)	-47 164	-60 808
Profit/loss (-) before income tax	4 321	-63 384
Income tax expense (-)/income	-3 119	-4 597
Profit/loss (-) for the period from continuing operations	1 201	-67 981
DISCONTINUED OPERATIONS
Profit/loss (-) for the period from discontinued operations	-	-
PROFIT/LOSS (-) FOR THE PERIOD	1 201	-67 981

Attributable to:
| The shareholders of the Group | 536 | -68 533 |
| Non-controlling interests | 666 | 552 |

Earnings per share from continuing and discontinuing operations (in € per share)

Note	AY 20/21	AY 19/20
Basic	0,01	-1,59
Diluted	0,01	-1,59

Earnings per share from continuing operations (in € per share)

Note	AY 20/21	AY 19/20
Basic	0,01	-1,59
Diluted	0,01	-1,59

The attached notes form an integral part of this income statement.

GREENYARD ANNUAL REPORT 2020/2021 / 125

Consolidated statement of comprehensive income

Note	AY 20/21 €'000	AY 19/20 €'000
Profit/loss (-) for the period	1 201	-67 981
Remeasurements on post employment benefit obligations, gross	6.14.
-2 497 1 109 Deferred tax on remeasurements on post employment benet obligations 427 -210 Items that will not be reclassied to prot or loss -2 070 899 Cash ow hedges, gross 6.18. -3 191 1 817 Deferred tax on cash ow hedges 798 -537 Currency translation dierences on foreign operations -1 608 -342 Reclassication adjustment currency translation dierences to prot or loss 7.1. - 1 368 Fair value reserve - 6 Items that may be reclassied to prot or loss -4 001 2 311 Other comprehensive income -6 071 3 210 TOTAL -4 870 -64 771 Attributable to: The shareholders of the Group -5 477 -65 354 Non-controlling interests 607 583 The attached notes form an integral part of this statement of comprehensive income.

Consolidated financial statements

Consolidated statement of nancial position

Assets

Note	31 March 2021	31 March 2020
€'000	€'000	€'000
NON-CURRENT ASSETS	1 255 142	1 264 810
Property, plant & equipment	6.1.	328 738
Goodwill	6.2.	477 504
Other intangible assets	6.3.	198 797
Right-of-use assets	6.4.	220 286
Investments accounted for using equity method	6.5.	7 679
Other nancial assets	6.6.	5
Deferred tax assets	6.7.	18 061
Trade and other receivables	6.9.	4 071
CURRENT ASSETS	686 991	700 113
Inventories	6.8.	309 447
Trade and other receivables	6.9.	295 774
Other nancial assets	6.6.	519
Cash and cash equivalents	6.10.	81 250
TOTAL ASSETS	1 942 133	1 964 923

Equity and liabilities

Note	31 March 2021	31 March 2020
€'000	€'000	€'000
EQUITY	451 118	406 109
Issued capital	6.12.	337 696
Share premium and other capital instruments	6.12.	317 882
Consolidated reserves		-213 177
Cumulative translation adjustments		-6 498
Non-controlling interests		15 214
NON-CURRENT LIABILITIES	553 972	750 669
Employee benet liabilities	6.14.	19 131
Provisions	6.15.	10 310
Interest-bearing loans	6.16.	281 661
Lease liabilities	6.4.	206 949
Trade and other payables	6.17.	3 653
Deferred tax liabilities	6.7.	32 268
CURRENT LIABILITIES	937 043	808 146
Provisions	6.15.	4 417
Interest-bearing loans	6.16.	132 131
Lease liabilities	6.4.	28 496
Other nancial liabilities	6.6.	2 408
Trade and other payables	6.17.	769 591
TOTAL EQUITY AND LIABILITIES	1 942 133	1 964 923

The attached notes form an integral part of this statement of nancial position.

GREENYARD ANNUAL REPORT 2020/2021 / 127

Consolidated statement of changes in equity

AY 20/21

Note	Attributable to shareholders of the Group	Non- controlling interests	Total equity
	Share capital	Share premi- ums	Treasury shares
	€'000	€'000	€'000
Balance at 31 March 2020	288 392	317 882	-22 439
Prot/loss (-) for the period	-	-	-
Other comprehensive income	-	-	-
Total comprehensive income for the period	-	-	-
Capital increase 6.12.	50 000	-	-
Transaction costs 6.12.	-696	-	-
Dividend payment	-	-	-
Share based payments, gross 6.13.	-	-	-
Deferred tax on share based payments	-	-	-
Other	-	-	-
Balance at 31 March 2021	337 696	317 882	-22 439

AY 19/20

Note	Attributable to shareholders of the Group	Non- con- trolling interests	Total equity
	Share capital	Share premi- ums	Treasury shares
	€'000	€'000	€'000
Balance at 31 March 2019	288 392	317 882	-22 439
Prot/loss (-) for the period	-	-	-
Other comprehensive income	-	-	-
Total comprehensive income for the period	-	-	-
Dividend payment 6.13.	-	-	-
Step-up acquisition Bardsley Fruit Enterprises 7.1.	-	-	-
Share based payments, gross 6.14.	-	-	-
Deferred tax on share based payments	-	-	-
Other	-	-	-
Balance at 31 March 2020	288 392	317 882	-22 439

The attached notes form an integral part of this statement of changes in equity.

Consolidated financial statements 128 /

Consolidated statement of cash ows

Note	AY 20/21	AY 19/20
	€'000	€'000
CASH, CASH EQUIVALENTS AND BANK OVERDRAFTS, OPENING BALANCE	131 632	67 186
CASH FLOW FROM OPERATING ACTIVITIES (A)	158 848	126 643
EBIT from continuing operations	51 485	-2 576
EBIT from discontinued operations	-	-
Income taxes paid	-3 376	-6 096
Adjustments	100 101	115 461
Fair value adjustments biological assets	-	27
Amortisation of intangible assets	6.3.	20 665
Depreciation of property, plant & equipment and right-of-use assets	6.1., 6.4.	76 926
Impairment on property, plant & equipment	6.1.	1 413
Write-o on stock/trade receivables	3 846	498
Increase/decrease (-) in provisions and employee benet liabilities	6.14., 6.15.	1 025
Gain (-)/loss on disposal of property, plant & equipment	-1 201	-3 796
Result on change in control of subsidiares and equity accounted investments	-3 014	23 328
Share based payments and other	6.13.	949
Share of prot/loss (-) of equity accounted investments	6.5.	-507
Increase (-) /decrease in working capital	10 638	19 854
Increase (-)/decrease in inventories	6.8.	-50 200
Increase (-)/decrease in trade and other receivables	6.9.	2 885
Increase/decrease (-) in trade and other payables	6.17.	57 952
CASH FLOW FROM INVESTING ACTIVITIES (B)	-41 598	-16 584
Acquisitions (-)	-48 268	-37 280
Acquisition of intangible assets and property, plant & equipment	6.1., 6.3.	-48 268
Acquisition of subsidiaries	7.1.	-
Disposals	6 671	20 696
Disposal of intangible assets and property, plant & equipment	6.1., 6.3.	1 834
Disposal of subsidiaries	7.1.	4 836
CASH FLOW FROM FINANCING ACTIVITIES (C)	-169 168	-44 939
Capital increase, net of transaction costs	6.12.	49 304
Dividend payment	-129	-147
Proceeds from borrowings, net of transaction costs	6.16.	290 821
Repayment of borrowings	6.16.	-432 035
Payment of principal portion of lease liabilities	6.4.	-30 777
Net interests paid	-41 273	-48 418
Other nancial expenses	-5 079	-1 026
Transfer from restricted cash	6.10.	-
NET INCREASE IN CASH AND CASH EQUIVALENTS (A+B+C)	-51 918	65 119
Eect of exchange rate uctuations	-373	-673
CASH, CASH EQUIVALENTS AND BANK OVERDRAFTS, CLOSING BALANCE	79 341	131 632
Of which:
Cash and cash equivalents	6.10.	81 250
Bank overdrafts	6.10.	1 909

The attached note form an integral part of this statement of cash ows.

GREENYARD ANNUAL REPORT 2020/2021 / 129

130 / GREENYARD ANNUAL REPORT 2020/2021 / 131

Notes to the consolidated financial statements

132 /

2. Signicant accounting policies

2.1. Basis of preparation

The consolidated nancial statements of the Group have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU and with the legal and regulatory requirements applicable in Belgium. The consolidated nancial statements have been prepared on a historical cost basis, except for derivative nancial instruments, quoted equity investments and pensions that have been valued at fair value.

2.2. Changes in accounting policies and disclosures

The accounting policies adopted in preparing the AY 20/21 consolidated nancial statements as of 31 March 2021 are consistent with those applied when preparing the AY 19/20 consolidated nancial statements ending on 31 March 2020, except for the items below.

Amendments to IFRS mandatory for the current year

Amendments to IFRS 3 Business combinations: Denitions of a Business;
Amendments to IAS 39 Financial Instruments Recognition and Measurement, IFRS 9 Financial instruments and IFRS 7 Financial instruments: Disclosures - Interest Rate Benchmark Reform Phase 1;
Amendments to IAS 1 Presentation of Financial Statements and and IAS 8 Accounting Policies - Denition of Material;
Amendments to references to the Conceptual Framework in IFRS standards;
Amendments to IFRS 16 Leases – Covid 19 related rent concessions.

With regard to the standards and interpretations which became applicable during AY 20/21, the Group believes that these have little or no impact on its consolidated nancial statements.

New and revised IFRS issued but not yet eective

In AY 20/21, the Group did not prospectively apply the following new or revised standards and interpretations, which have been issued but are not eective at the date of approval of the consolidated nancial statements:

1. General information

Greenyard (Euronext Brussels: GREEN), domiciled in Belgium in Sint-Katelijne-Waver, is one of the largest suppliers of fruit and vegetables in the world. We oer healthy food products for any lifestyle, age group or consumption.
```# GREENYARD ANNUAL REPORT 2020/2021

133

Fresh, frozen or prepared. Traditional or new varieties. Exotic or local. Pre-packaged or in bulk. The Group has approximately 9,279 employees in 23 countries around the world. The consolidated financial statements of Greenyard NV (‘the Company’) and its subsidiaries (together, ‘the Group’) for the year ending 31 March 2021 were authorised for issue by the Board of Directors on 10 June 2021.

Texts endorsed by EFRAG:
* Amendments to IAS 39 Financial Instruments Recognition and Measurement, IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures; IFRS 16 Leases; IFRS 4 Insurance Contracts: Interest Rate Benchmark Reform Phase 2 (applicable as from 1 January 2021);
* IFRS 4 Insurance contracts (applicable as from 1 January 2021).

Texts not yet endorsed by EFRAG:
* Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets (applicable as from 1 January 2022): Onerous contracts – Cost of fulfilling a contract;
* Amendments to IAS 41 Agriculture (applicable as from 1 January 2022): Taxation in fair value measurements;
* Amendments to IAS 16 Property, Plant and Equipment (applicable as from 1 January 2022): Proceeds before intended use;
* Amendments to IFRS 9 Financial Instruments (applicable as from 1 January 2022): Fees in the ’10 per cent’ test for derecognition of financial liabilities;
* Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (applicable as from 1 January 2023);
* Amendments to IFRS 3 Business Combinations (applicable as from 1 January 2022): Reference to the conceptual framework;
* Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards (applicable as from 1 January 2022): Subsidiary as a first-time adopter;
* Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies (applicable as from 1 January 2023);
* IFRS 17 Insurance Contracts (applicable as from 1 January 2023);
* Amendments to IAS 1 Presentation of financial statements (applicable as from 1 January 2023): Classification of liabilities as current or non-current.

At the present time the Group does not expect that the new standards will significantly affect the financial statements of the Group during their first-time application.

2.3. Basis of consolidation

Subsidiaries

The consolidated financial statements comprise the financial statements of the Company and entities controlled by the Company and their subsidiaries. The Group controls an investee if the Group:
* has power over the investee;
* is exposed, or has rights, to variable returns from its involvement with the investee; and
* has the ability to use its power to affect its returns.

The Group considers all relevant facts and circumstances in assessing whether it has power over an investee. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Profit and loss, and each component of other comprehensive income, are attributed to the shareholders of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with Group accounting policies. All intra-group assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full in consolidation.

Changes in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction. The carrying amounts of the Group’s net interests and the non-controlling interests are adjusted to reflect the changes in their relative

Notes to the consolidated financial statements

134 /

interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity and attributed to the shareholders of the Group. If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interests and other components of equity, while any resultant gain or loss is recognised in profit or loss. Any investment retained is initially recognised at fair value.

Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition-date fair value, and the amount of any non-controlling interests in the acquiree. Acquisition-related costs are expensed as incurred. When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions, as at the acquisition date. Any contingent consideration to be transferred by the acquirer will be recognised at fair value at the acquisition date. Changes in the fair value of the contingent consideration, qualifying as measurement period adjustments, are adjusted retrospectively, with corresponding adjustments against goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the measurement period (which cannot exceed one year from the acquisition date) about facts and circumstances that existed at the acquisition date. Subsequent changes to the fair value of the contingent consideration that do not qualify as measurement period adjustments and are deemed to be an asset or liability are recognised either in profit and loss or as a change to other comprehensive income. A contingent consideration classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted for within equity.

Goodwill is initially measured as the excess of the aggregate of the consideration transferred and the amount recognized for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed. If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in profit or loss as a bargain purchase gain.

When a business combination is achieved in stages, the Group's previously held equity interest in the acquiree is remeasured to its acquisition date fair value and the resulting gain or loss is recognised in profit or loss. Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised in other comprehensive income are re-classified to profit or loss, where such treatment would be appropriate if those interests were disposed of.

Investments in joint ventures and associated companies

An associate is an entity over which the Group has significant influence. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require the unanimous consent of the parties sharing control.

The Group’s investments in its associates and joint ventures are accounted for using the equity method. Under the equity method, the investment in an associate or a joint venture is initially recognised at cost. The carrying amount of the investment is adjusted to recognise changes in the Group’s share of net assets of the associate or joint venture since the acquisition date. Goodwill relating to the associate or joint venture is included in the carrying amount of the investment. The income statement reflects the Group’s share of the results of operations of the associate or joint venture. Any change in other comprehensive income of those investees is presented as part of the Group’s other comprehensive income. In addition, when there has been a change recognised directly in the equity of the associate or joint venture, the Group recognises its share of any changes, when applicable, in the statement of changes in equity. Unrealised gains and losses resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of the interest in the associate or joint venture.

GREENYARD ANNUAL REPORT 2020/2021 / 135

The aggregate of the Group’s share of profit or loss of equity accounted investments is shown on the face of the income statement within EBIT, which represents profit or loss after tax and non-controlling interests in the subsidiaries of the associate or joint venture. The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s interests in that associate or joint venture, the Group discontinues recognising its share of losses. Additional losses are recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture.## 2.4. Summary of significant accounting policies

A. Foreign currency transactions

Foreign currency transactions are accounted for at exchange rates prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the reporting date rate. Gains and losses resulting from the settlement of foreign currency transactions and from the translation of monetary assets and liabilities denominated in foreign currencies are recognised in the income statement. Non-monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rate prevailing at the date of the transaction. Foreign exchange gains and losses that relate to borrowings, and cash and cash equivalents, are presented in the income statement within the finance result. All other foreign exchange gains and losses are presented in the income statement within EBIT.

B. Translation of the results and financial position of foreign operations

Assets and liabilities of foreign operations are translated to euro at foreign exchange rates prevailing at the reporting date. Income statements of foreign operations are translated to euro at exchange rates for the year approximating the foreign exchange rates prevailing at the dates of the transactions. The components of shareholders’ equity are translated at historical rates. Exchange differences arising from the translation of shareholders’ equity to euro at period-end exchange rates are taken to other comprehensive income (currency translation differences). In cases where the operation is not fully owned, the relevant proportionate share of the translation adjustment is allocated to the non-controlling interests. On the disposal of a foreign operation, all of the exchange differences accumulated in equity in respect of that operation attributable to the Group’s shareholders are reclassified to profit and loss.

C. Exchange rates

The more pertinent exchange rates used in preparing the financial statements are:

	Closing rate 31 March 2021	Closing rate 31 March 2020	Average rate AY 20/21	Average rate AY 19/20
1 USD = €	0,8529	0,9127	0,8565	0,8999
1 GBP = €	1,1736	1,1281	1,1202	1,1426
1 PLN = €	0,2150	0,2198	0,2223	0,2324
1 BRL = €	0,1483	0,1754	0,1584	0,2187
1 CZK = €	0,0383	0,0366	0,0376	0,0390
1 CLP = €	0,0012	0,0011	0,0011	0,0012

Goodwill

In conformity with IFRS 3 Business Combinations, goodwill is stated at cost and not amortised but tested for impairment on an annual basis and whenever there is an indication that the cash generating unit to which goodwill has been allocated may be impaired. The carrying amount of the goodwill is compared with the recoverable amount, which is the higher of the value-in-use and the fair value, less cost to sell.

Other intangible assets

A. Research and development

Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognised in the income statement as an expense as incurred. Expenditure on development activities, whereby research findings are applied to a plan or design for the production of new or substantially improved products and processes, is capitalised if the product or process is technically and commercially feasible, future economic benefits are probable and the company has sufficient resources to complete development. The expenditure capitalised includes the cost of materials, direct labour and an appropriate proportion of overheads. Other development expenditure is recognised in the income statement as an expense as incurred. Capitalised development expenditure is stated at cost less accumulated amortisation and impairment losses.

B. Software and licences

Purchased software and licences are measured at cost less accumulated amortisation and impairments. Expenditure on internally developed software is capitalised when the expenditure qualifies as development activity; otherwise, it is recognised in the income statement when incurred. Software and licences are amortised using the straight-line method over their estimated useful life.

C. Customer relationships

The customer relationships acquired in a business combination are initially measured at fair value at the date of the acquisition. Fair value is determined based on an external valuation report. Following their initial recognition, customer relationships are carried at cost less any accumulated amortisation and impairment losses.

Item	Years	Method
Software and licences	3 - 7	Straight-line
Customer relationships	15 - 20	Straight-line
Other intangible assets	3 - 5	Straight-line

The carrying amount of intangible assets is reviewed at each reporting date to determine whether there is any indication of impairment. If there is any such indication, the asset’s recoverable amount is estimated so that the amount of the impairment loss may be determined.

Property, plant & equipment

The Group has opted for the historical cost model rather than the revaluation model. Items falling within the property, plant and equipment category, separately acquired, are initially measured at cost. Property, plant and equipment acquired in a business combination is initially measured at fair value, which thus becomes its deemed cost. After initial recognition, property, plant and equipment is measured at cost less accumulated depreciation and impairment losses. The cost includes all direct costs and all expenditure incurred to bring the asset to its working condition and location for its intended use. Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised as part of the cost of that asset. Depreciation is provided over the estimated useful lives of the various classes of property, plant and equipment on a straight-line basis.

The useful life, residual value and depreciation methods are reviewed at least at each financial year-end.

Item	Years	Method
Owned buildings	18 - 40	Straight-line
Owned buildings - refurbishments	5 - 25	Straight-line
Leased buildings - structural refurbishments	18 - 40	Straight-line
Leased buildings - refurbishments	5 - 25	Straight-line
Land improvements	3 - 13	Straight-line
Plant, machinery and equipment	3 - 15	Straight-line
Vehicles	3 - 10	Straight-line

Government grants relating to the purchase of property, plant and equipment are deducted from the cost of those assets. They are recognised in the statement of financial position at their expected value at the time of initial government approval and corrected, if necessary, after final approval. The grant is amortised over the depreciation period of the underlying asset. The carrying amount of property, plant and equipment is reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated so that the amount of the impairment loss may be determined.

Accounting for leases as lessee

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The Group recognised a right-of-use asset and a corresponding lease liability with respect to all lease agreements, except for short-term leases (defined as a lease with a lease term less than 12 months) and leases of low-value assets. The lease payments of such leases are recognized as an operating expense on a straight-line basis over the term of the lease and payments are presented in cash flow from operating activities.

A. Right-of-use assets

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-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 recognised, 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, including the period of renewable options, in case it is probably that the option will be exercised. The right-of-use assets are also subject to impairment.

B. Lease liabilities

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments less any lease incentives receivable, variable lease payments that depend on an index or a rate, and purchase options if the Group is reasonably certain to exercise these options. Variable lease payments that do not depend on an index or a rate are recognised as expenses in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made.# Notes to the consolidated financial statements

A lease liability is remeasured upon a change in the lease term, changes in an index or rate used to determine the lease payments or reassessment of exercise of a purchase option. The corresponding adjustment is made to the related right-of-use asset.

Financial assets

The Group classifies its financial assets as subsequently measured at amortised cost, fair value through other comprehensive income (FVOCI), and fair value through profit or loss (FVTPL). Management determines the classification of its financial assets at initial recognition, which is based on two criteria: the objective of the company’s business model for managing the assets; and whether the instruments’ contractual cash flows represent ‘solely payments of principal and interest’ on the principal amount outstanding (the ‘SPPI criterion’).

The classification and measurement of the company’s financial assets is as follows:

A. Financial assets at amortised costs

Loans and receivables are non-derivative financial assets with fixed or determinable payments which are not quoted in an active market and are held to collect contractual cash flows and are expected to give rise to cash flows representing solely payments of principal and interests. The Group’s financial assets at amortised costs, less any impairment comprise, unless stated otherwise, trade and other receivables, bills of exchange received, short-term deposits and cash and cash equivalents in the statement of financial position.

Loans and receivables are measured at amortised cost using the effective interest method, less any impairment. An estimate of impairment losses for doubtful receivables is made based on a review of all outstanding amounts at the reporting date. An allowance for impairment of trade and other receivables is established if the collection of a receivable becomes doubtful. Such a receivable becomes doubtful when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivable. Significant financial difficulties of the debtor, probability that the debtor will enter into bankruptcy or financial reorganisation, and default or delinquency in payments are considered indicators that the receivable is impaired. The amount of the allowance is the difference between the asset’s carrying amount and the present value of the estimated future cash flows. An impairment loss is recognised in the income statement, as are subsequent recoveries of previous impairments.

B. Financial assets at FVOCI

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under IAS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Assets classified in this category are stated at fair value, with any resultant gains or losses recognised directly in equity with no recycling through profit or loss upon disposal. The Group elected not to apply FVOCI for equity instruments that do not have a quoted price in an active market and for which their fair value cannot be reliably measured by alternative valuation methods. In this case, the instrument is stated at cost.

C. Financial assets at fair value through profit or loss (FVTPL)

This category includes derivative instruments and equity investments held for trading or for which the Group had not irrevocably elected to classify them at FVOCI.

Inventories

Inventories are valued at the lower of cost and net realisable value. The cost includes expenditure incurred in acquiring the inventories and bringing them to their existing location and condition. The FIFO (first-in, first-out) method is used in assigning the cost of inventories.

The cost of finished products and work in progress comprises raw material, other production material, direct labour, other direct costs and an allocation of fixed and variable overhead based on normal operating capacity. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated completion and selling costs. In the case of contracted sales, the average contract price is used to calculate the net realisable value. Inventories are written down on a case-by-case basis if the anticipated net realisable value declines below the carrying amount of the inventories. The calculation of the net realisable value takes into consideration specific characteristics of each inventory category, such as expiry date, remaining shelf life and slow-moving indicators.

Cash and cash equivalents

Cash and cash equivalents include all cash balances and short-term highly liquid investments with a maturity of three months or less from the date of acquisition that are readily convertible into cash. They are stated at face value, which approximates their fair value. In the cash flow statement, cash and cash equivalents are presented net of bank overdrafts.

Equity

A. Repurchase of share capital

When the Group buys back its own shares, the amount of the consideration paid, including directly attributable costs, is recognised as a deduction from equity under treasury shares. The result on the disposal of treasury shares sold or cancelled is recognised in retained earnings.

B. Dividends

Dividends are recognised in the consolidated financial statements on the date that the dividends are declared.

C. Share issuance costs

Incremental costs directly attributable to the issue of new shares or options are shown in equity (share capital) as a deduction, net of tax, from the proceeds.

Provisions

Provisions are recognised where (i) the company has a present legal or constructive obligation as a result of past events, (ii) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and (iii) a reliable estimate of the amount of the obligation can be made. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.

A. Restructuring

A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring has either commenced or has been announced publicly. Costs relating to the ongoing activities of the company are not provided for.

B. Onerous contracts

A provision for onerous contracts is recognised when the expected benefits to be derived from a contract by the Group are lower than the unavoidable cost of meeting its obligations under the contract. Such provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.

C. Disputes and litigations

A provision for disputes and litigations is recognised when it is more likely than not that the Group will be required to make future payments as a result of past events. Such items may include but are not limited to several claims, environmental matters, employment related disputes and claims from tax authorities.

D. Decommissioning

A provision for decommissioning is recognised when the Group has the obligation to decommission a building at the end of the lease agreement.

Employee benefits

A. Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the income statement when incurred. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a fund. The Group has no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

B. Belgian defined contribution plans with guaranteed return

By law, defined contribution pension plans in Belgium are subject to minimum guaranteed rates of return and therefor classify as defined benefit plans. IASB and IFRIC acknowledge that accounting for these plans in accordance with IAS 19 can be problematic. Considering the uncertainty of the future minimum guaranteed rates of return in Belgium, the Group calculates the net liability as the sum of any individual differences between the mathematical reserves and the minimum guarantee as determined by the Belgian law enforcing the minimum guaranteed rates of return, being the intrinsic value approach.

C. Defined benefit plans

A defined benefit plan is a pension plan that is not a defined contribution plan. Typically, defined benefit plans define an amount of pension benefit that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation. For defined benefit plans, the pension expenses are assessed separately for each plan using the projected unit credit method. The projected unit credit method considers each period of service as giving rise to an additional unit of benefit entitlement. Under this method, the cost of providing pensions is charged to the income statement so as to spread the regular cost over the service lives of employees in accordance with the advice of qualified actuaries who carry out a full valuation of the plans at least every three years. The amounts charged to the income statement include current service costs, net interest expense (income), past service costs and the effect of any curtailments or settlements. Past service costs are recognised at the earlier of when the amendment / curtailment occurs or when the Group recognises related restructuring or termination costs.# Notes to the consolidated financial statements

D. Other long-term employee benefits

Other long-term employee benefits, such as jubilee awards, are accounted for using the projected unit credit method. However, the accounting method differs from the method applied for defined benefit plans, as actuarial gains and losses are recognised immediately through profit or loss.

GREENYARD ANNUAL REPORT 2020/2021 / 141

Interest-bearing loans

Interest-bearing loans are recognised initially at fair value, less attributable transaction costs. Subsequent to initial recognition, interest-bearing loans are stated at amortised cost with any difference between the initial amount and the maturity amount being recognised in the income statement (as interest expense) over the expected life of the instrument on an effective interest rate basis. Loans are derecognized when the obligation is discharged, cancelled or expires. When an existing loan is replaced by another from the same lender on substantially different terms, or the terms of the existing loan are substantially modified, such an exchange or modification is treated as the derecognition of the original loan and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit and loss.

Trade and other payables

Trade and other payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest method.

Derivatives, hedging and hedging reserves

The Group uses derivatives to hedge its exposure to foreign exchange and interest rate risks arising from operating, financing and investing activities. The net exposure of all subsidiaries is managed on a centralised basis by Corporate Treasury in accordance with the aims and principles laid down by general management. As a matter of policy, the Group does not engage in speculative or leveraged transactions. Derivatives are initially and subsequently measured and carried at fair value. The fair value of traded derivatives is equal to their market value. If no market value is available, the fair value is calculated using standard financial valuation models, based on the relevant market rates at the reporting date.

The Group applies hedge accounting in accordance with IFRS 9 to reduce income statement volatility. Depending on the nature of the hedged risk, a distinction is made between fair value hedges, cash flow hedges and hedges of a net investment in a foreign entity.

Fair value hedges

Fair value hedges are hedges of the exposure to variability in the fair value of recognised assets and liabilities. The derivatives classified as fair value hedges are carried at fair value and the related hedged items (assets or liabilities) are re-measured for fair value changes due to the hedged risk. The corresponding changes in fair value are recognised in the income statement. When a hedge ceases to be highly effective, hedge accounting is discontinued and the adjustment to the carrying amount of a hedged interest-bearing financial instrument is recognised as income or expense and will be fully amortised over the remaining period to maturity of the hedged item.

Cash flow hedges

Cash flow hedges are hedges of the exposure to variability in future cash flows related to recognised assets or liabilities, highly probable forecast transactions or currency risk on unrecognised firm commitments. Changes in the fair value of a hedging instrument that qualifies as a highly effective cash flow hedge are recognised directly in shareholders’ equity. The ineffective portion is recognised immediately in the income statement.

If the hedged cash flow results in the recognition of a non-financial asset or liability, all gains and losses previously recognised directly in equity are transferred from equity and included in the initial measurement of the cost or carrying amount of the asset or liability.

For all other cash flow hedges, gains and losses initially recognised in equity are transferred from the hedging reserve to the income statement when the hedged firm commitment or forecast transaction results in the recognition of a profit or loss.

When the hedge ceases to be highly effective, hedge accounting is discontinued prospectively, and the accumulated gain or loss is retained in equity until the committed or forecast transaction occurs. If the forecast transaction is no longer expected to occur, any net cumulative gain or loss previously reported in equity is transferred to the income statement.

Hedges of a net investment in a foreign entity

If a net investment in a foreign entity is hedged, all gains or losses on the effective portion of the hedging instrument, together with any gains or losses on the foreign currency translation of the hedged investment, are taken directly to equity. Any gains or losses on the ineffective portion are recognised immediately in the income statement. The cumulative re-measurement of the hedging instrument, that had previously been recognised directly in equity, and the gains and losses on the currency translation of the hedged item are recognised in the income statement only on disposal of the investment.

To comply with the requirements of IFRS 9 regarding the use of hedge accounting, the strategy and purpose of the hedge, the relationship between the financial instrument used as the hedging instrument and the hedged item, and the estimated (prospective) effectiveness are documented by the Group at the inception of the hedge. The effectiveness of existing hedges is monitored quarterly. Hedge accounting for ineffective hedges is discontinued immediately.

The Group also uses derivatives that do not satisfy the hedge accounting criteria of IFRS 9 but provide effective economic hedges under the Group's risk management policies. Changes in the fair value of any such derivatives are recognised immediately in the income statement.

Income tax

Income tax comprises current and deferred tax. Income tax is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case the tax effect is also recognised directly in equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted, or substantively enacted, at the reporting date, and any adjustments to tax payables in respect of previous years.

In accordance with IAS 12 Income Taxes, deferred taxes are provided using the so-called comprehensive balance sheet method. This means that, for all taxable and deductible differences between the tax bases of assets and liabilities and their carrying amounts in the statement of financial position a deferred tax liability or asset is recognised. Under this method a provision for deferred taxes is also made for differences between the fair values of assets and liabilities acquired in a business combination and their tax base.

IAS 12 prescribes that no deferred taxes are recognised on i) the initial recognition of goodwill, ii) the initial recognition of assets or liabilities in a transaction that is not a business combination and affects neither accounting nor taxable profit and iii) differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future and to the extent that the company is able to control the timing of the reversal.

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using currently or substantively enacted tax rates. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

The Group recognises deferred tax assets, including assets arising from losses carried forward, to the extent that future probable taxable profit will be available against which the deferred tax asset can be utilised, or the extent of the recognised deferred tax liability. A deferred tax asset is reduced to the extent that it is no longer probable that the related tax benefit will be realised. Tax claims are recorded within provisions on the statement of financial position.

Revenue

Revenue is recognised when it is probable that the economic benefits associated with the transaction will flow to the Group and the amount of revenue can be measured reliably. Revenue is measured at the fair value of the consideration received or receivable.

Fresh operates using three different business models:

Trading model: Fresh generates revenues through programmed sourcing or spot buying transactions, whereby the margin is determined based on the purchase pricing structure of the respective transaction, i.e. a sales-based purchase price (majority), a fixed price, a minimum guaranteed price or an agreed price range.
Production model: Fresh generates revenues from own-produced fresh convenience and flowers.
Service model: Fresh operates some or all of the fresh supply chain of some of its customers, with the added-value services remunerated on a cost-plus basis.# GREENYARD ANNUAL REPORT 2020/2021 / 143

For the sale of goods where added-value services, such as ripening or packing, are provided, Fresh is the primary entity responsible for fulfilling the promise to provide the goods to the customer. Some Fresh entities also enter into specific logistics agreements with customers whereby a fixed price per serviced item is agreed. For all transactions, except some logistical services, the Group acts as a principal since the main risks related to the purchase and sale of goods are borne by the Group.

For the sale of goods for which added-value services, such as ripening or packing, have been delivered, the Group is the primary entity responsible for fulfilling the promise to provide the goods to the customer. The Group checks the quality of purchased goods and bears the inventory risk and the added-value services are not all in response to customer requests. As a consequence, the gross inflows received from the customers are recognised as revenue.

For all operating models, the revenue is recognised when performance obligations are satisfied by transferring control of the goods or services to the customer. Recognition of revenue typically takes place at a point-in-time upon delivery of the goods to the customer in accordance with the incoterm. At the time of delivery, risk and rewards are transferred, Greenyard has a right to payment and the customer has taken physical possession of the goods. Customer acceptance occurs in a very short period (maximum three days) after the goods are delivered to the customer’s premises.

In the case of service contracts, revenue is recognised over time to the extent that the performance obligation has been satisfied, which in practice is a very short period of time for all services, such as transport, provided by Fresh.

The sale of frozen and prepared fruit and vegetables is mainly based on contractually agreed prices, while the volumes sold are mostly order-based. Fresh vegetable supplies are mainly subject to annual contracts negotiated with the suppliers, determining volumes and prices, whereas the supply of fresh fruit is mainly negotiated on an order by order basis, each of which determines volumes and prices.

In general, the goods and added value services are invoiced as they are delivered or carried out. The amounts are directly recognised in the income statement and do not require the measurement of the stage of completion.

Government grants are recognised where there is a reasonable assurance that the Group will comply with the conditions attached to the grants and the grants will be received. Grants compensating the Group for expenses incurred are systematically recognised as other operating income in the same period in which the expenses are incurred.

Rental income is recognised in other operating income on a straight-line basis over the term of the lease.

Finance result

Interest income

Interest income comprises interest received or receivables on funds invested and is recognised as it accrues (taking into account the effective yield on the asset) unless collectability is in doubt.

Interest expense

Interest expense comprises interests on interest-bearing loans, calculated using the effective interest rate method, factoring interests and net interests on interest rate swaps settlements. All interest expenses incurred in connection with interest-bearing loans or financial transactions are expensed as incurred as part of interest expense. Any difference between the initial amount and the maturity amount of interest-bearing loans, such as transaction costs and fair value adjustments, are recognised in the income statement over the expected life of the instrument on an effective interest rate basis. The interest expense component of financial lease payments is also recognised in the income statement using the effective interest rate method.

Other finance result

Other finance result comprises dividend income, net gains or losses in the areas of foreign exchange and arising from interest rate swaps that are not part of a hedge accounting relationship, financial assets classified as trading, net fair value on the conversion option, as well as losses resulting from ineffective hedges.

Events after balance sheet date

Events after the balance sheet date which provide additional information about the Group’s position as at the reporting date (adjusting events) are reflected in the financial statements. Events after the balance sheet date which are not adjusting events are disclosed in the notes, if material.

Notes to the consolidated financial statements

144 / 3. Critical accounting judgements and key sources of estimation uncertainty

3.1. Critical judgments in applying the entity’s accounting policies

The following are the critical judgments made by management, apart from those involving estimations (see note 3.2. Key sources of estimation uncertainty), that have a significant effect on the amounts reported in the consolidated financial statements.

The obligations related to the Belgian defined contribution plans are measured based on the intrinsic value approach since a calculation in accordance with IAS 19 is not feasible (see note 6.14. Pension and other employee benefit liabilities);
The convertible bond is a hybrid debt instrument which contains a host contract and an embedded derivative. Based on IFRS 9, paragraph 4.3.1. the Group separated the embedded derivative from the host contract and did not opt for the “fair value option”.
Following the waiver of the Cash Alternative Election in November 2017, the conversion option was reclassified from the financial derivatives to equity-based following IFRS 9. The Group considers that the conversion option meets the “fixed-for-fixed” criterion in IAS 32.16 and is therefore classified within equity and was, as of November 2017 onwards, no longer remeasured at fair value through profit and loss (see note 6.16. Interest-bearing loans).

3.2. Key sources of estimation uncertainty

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised and in any future years affected. In applying the Group’s accounting policies described above, the Directors have identified that the following areas are the key estimates that have a significant risk of resulting in a material adjustment to the carrying value of assets and liabilities within the next financial year:

The Group determines whether goodwill is impaired at least once a year. This requires an estimate of the value in use of the CGUs to which the goodwill is allocated. To estimate the value in use, the Group estimates the expected future cash flows from the CGUs and discounts them to their present value at a given discount rate, which is appropriate for the territory to which the goodwill is allocated. Forecasting expected cash flows and selecting an appropriate discount rate inherently requires estimation. The resulting calculation is sensitive to the assumptions in respect of sales growth rate, adjusted EBITDA growth rate and the discount rate applied. A sensitivity analysis has been performed on the estimates (see note 6.2. Goodwill). The Directors consider that the assumptions made represent their best estimate of the future cash flows generated by the CGUs, and that the discount rate used is appropriate given the risks associated with the specific cash flows involved. Budgets comprise forecasts based on current and anticipated market conditions that have been considered and approved by the Board of Directors. Although based on the sensitivity analysis performed, there is no impairment charge to goodwill of the Fresh segment, it is considered appropriate to disclose this as an area of significant estimation due to the size of the balance and the fact that it could change as a result of future events within the next five years.
Current tax provisioning: In determining the income tax assets and liabilities recognised in the consolidated statement of the financial position, the Group is required to estimate the outcome of multiple tax years remaining open to tax authority audit in each of the jurisdictions in which it has companies. In making estimates for tax provisioning purposes, management makes use of in-house tax expertise, third-party studies prepared by professional advisors and any other information available. In the event of an audit, the Group may liaise with the relevant taxation authorities to agree an outcome. The tax liability provided for each tax year and jurisdiction is reassessed in each period to reflect our best estimate of the probable outcome in light of all the information available. A final position agreed with a tax authority or through expiry of a tax audit period could differ from the estimates made by us which would impact the current tax liability recognised in the consolidated statement of financial position. Several tax audit discussions are ongoing in different countries and entities. Should a tax audit commence, this would give additional visibility over maximum potential exposures as the tax authorities’ own position becomes clearer. Such developments would then further inform our best estimate in line with the approach above. Conversely, should tax audit windows close without audits commencing, this would enable tax provisions to be released.
Deferred tax assessment: Deferred taxes are recognised in respect of temporary differences between the tax treatment and the treatment within the financial statements for assets and liabilities. Deferred tax assets are only recognised to the extent they are expected to be recovered. Recoverability is assessed on an ongoing basis. Deferred tax is calculated at the substantively enacted rate which is expected to apply in the period the asset or liability is expected to be realised. The Corporate Tax team, which has the overview of the Group’s deferred tax positions, is involved in assessing deferred tax assets.

GREENYARD ANNUAL REPORT 2020/2021 / 145

3.2. Key sources of estimation uncertainty (continued)

Deferred tax assessment (continued): The calculation of deferred tax involves the use of estimation, in particular concerning the timing of the reversal of temporary differences. This is based on management’s expectations of future taxable profits, future tax rates and the timing of capital expenditure. The assessment of recoverability of deferred tax assets is a key area of estimation uncertainty.
Fair value of financial instruments: The Group must estimate the fair value of certain financial instruments in order to apply the relevant accounting standards. The valuation techniques used, such as discounted cash flow models or market comparison approaches, rely on observable market data where possible. However, where observable market data are not available, management uses its judgment in selecting appropriate valuation techniques and determining the inputs to these techniques, which may include assumptions regarding interest rates, credit spreads, and volatility. The estimation of fair value, especially for unquoted financial instruments, is inherently uncertain. The Group aims to use the most reliable valuation techniques and inputs available, however, changes in these assumptions could materially affect the reported fair value of these financial instruments. The Group provides disclosures regarding the fair value of financial instruments (see note 6.18. Financial instruments).
Provisions: Provisions are recognised for liabilities of uncertain timing or amount. Management makes estimations about the probable outflows required to settle the present obligation. The estimation of the amount of provisions is complex and involves judgment. The Group is subject to various legal proceedings and claims. Provisions are recognised for legal claims and other liabilities where it is probable that an outflow of resources will be required and a reliable estimate can be made of the amount of the outflow. The amount recognised is the best estimate of the expenditure required to settle the present obligation at the reporting date. Where the Group is seeking legal advice on the merits of claims, management may have to estimate the likelihood of success. The estimation of the provision for legal claims and other liabilities is based on the best available information at the reporting date.
Retirement benefit obligations: The determination of the liabilities in respect of defined benefit pension plans requires the use of actuarial assumptions. These assumptions include the discount rate, expected rate of salary increases, inflation, mortality rates, and employee turnover. The discount rate is based on market yields of high-quality corporate bonds at the reporting date. Changes in these assumptions can have a significant impact on the defined benefit liability. The sensitivity of the defined benefit liability to changes in these key assumptions is disclosed in note 6.14. Pension and other employee benefit liabilities.
Impairment of tangible and intangible assets (excluding goodwill): The Group assesses, at each reporting date, whether there is any indication that tangible and intangible assets may be impaired. If any such indication exists, the Group estimates the recoverable amount of the asset. An asset is impaired when its carrying amount exceeds its recoverable amount. The recoverable amount is the higher of its fair value less costs to sell and its value in use. The value in use is determined by discounting the expected future cash flows of the asset to their present value. Estimating future cash flows and determining the appropriate discount rate requires judgment. The assumptions used in these estimations are critical and are disclosed in the relevant notes, for example, for property, plant and equipment (note 6.6. Property, plant and equipment) and intangible assets (note 6.7. Intangible assets).
Inventories: Inventories are stated at the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The Group determines the net realisable value of inventories based on current market conditions and historical data. Where necessary, provisions are made for obsolete, slow-moving or defective inventories. The estimation of net realisable value involves assumptions about future selling prices and costs.
Trade and other receivables: Trade and other receivables are stated at amortised cost, less any provision for impairment. The Group makes an estimate of the expected credit losses on its trade and other receivables. This involves making assumptions about the likelihood of default and the potential loss given default, based on historical data and current economic conditions. The provision for doubtful debts is reviewed regularly and adjusted as necessary.
Revenue recognition: While the Group's revenue recognition policies are described in note 3.3. Revenue recognition, the estimation of the variable consideration in revenue contracts and the determination of the standalone selling prices for the allocation of transaction prices to performance obligations require management judgment. For contracts with customers that include variable consideration, management estimates the amount of consideration to which it will be entitled in exchange for transferring the promised goods or services to the customer. This estimation is based on the terms of the contract and management's experience. The allocation of transaction prices to multiple performance obligations also requires management to estimate the standalone selling prices of each distinct good or service. This estimation is typically based on observable prices or, where not observable, on the Group’s best estimate of the price at which it would sell the distinct good or service separately to a customer.

3.3. Revenue recognition

The Group applies IFRS 15 "Revenue from Contracts with Customers". The standard requires revenue to be recognised in an amount that reflects the consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer. The Group recognises revenue based on a five-step model:

Identify the contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates legally enforceable rights and obligations. The Group enters into contracts with its customers for the sale of goods and provision of related services. These contracts are typically in written form and specify the goods or services to be provided, the quantities, prices, and delivery terms.
Identify the performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a distinct good or service (or a series of distinct goods or services that are substantially the same and have the same pattern of transfer) to the customer. The Group identifies its performance obligations based on the distinct nature of the goods and services promised to the customer.
- For the sale of goods, the promise to transfer the goods is a performance obligation.
- For added-value services such as ripening or packing, the promise to provide these services is also a performance obligation.
- For specific logistics agreements, the promise to provide logistical services is a performance obligation.
Determine the transaction price: The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. The transaction price is determined based on the terms of the contract, including fixed prices, variable consideration, and any discounts.
Allocate the transaction price to the performance obligations: If a contract has multiple performance obligations, the Group allocates the transaction price to each performance obligation based on the relative standalone selling prices of each distinct good or service. Where standalone selling prices are not directly observable, the Group estimates them using its best judgment.
Recognise revenue when (or as) the Group satisfies a performance obligation: The Group satisfies a performance obligation and recognises revenue when a customer obtains control of the promised good or service. Control is obtained when the customer has the ability to direct the use of, and obtain substantially all of the remaining benefits from, the good or service.
Sale of goods: Revenue from the sale of goods is typically recognised at a point in time when control of the goods transfers to the customer, which is usually upon delivery. At this point, the Group has transferred the risks and rewards of ownership, has a right to payment, and the customer has physical possession of the goods. Customer acceptance occurs in a very short period (maximum three days) after delivery.
Added-value services: Revenue from added-value services, such as ripening or packing, is recognised over time as the services are provided. In practice, for services like transport, this is over a very short period.
- Logistics agreements: Revenue from specific logistics agreements where a fixed price per serviced item is agreed is recognised over time as the services are provided.

Variable consideration: Where contracts include variable consideration (e.g., volume rebates), the Group estimates the amount of consideration to which it expects to be entitled. This estimation is based on the terms of the contract and the Group's historical experience. The amount of variable consideration is constrained to the amount that is highly probable not to result in a significant reversal of cumulative revenue recognised.

Contract balances: Contract assets and contract liabilities are recognised as part of revenue recognition. A contract asset is recognised when the Group has a right to consideration in exchange for goods or services that has been transferred to a customer and that right is conditional on something other than the passage of time. A contract liability is recognised when the Group receives consideration from a customer or has a right to receive consideration but the promised goods or services have not yet been transferred to the customer.

4. Segment Reporting

The Group is organised into two main operating segments: Fresh and Frozen & Prepared. These segments are based on the nature of the products and the markets in which they operate. The Group's chief operating decision maker (CODM) reviews segment information for the purpose of allocating resources to the segments and assessing their performance.

4.1. Segment revenue and profit

The following tables present revenue and profit information by segment for the years ended 31 March 2021 and 2020.

Revenue by Segment (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Fresh	1,640.7	1,684.4
Frozen & Prepared	683.6	676.8
Total Revenue	2,324.3	2,361.2

Segment Result by Segment (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Fresh	32.7	45.6
Frozen & Prepared	30.1	29.6
Total Segment Result	62.8	75.2

Note: Segment result represents profit before interest, tax, depreciation and amortisation (EBITDA) adjusted for certain items that are not allocated to the segments. Details of these adjustments are provided in the reconciliation below.

4.2. Reconciliation of Segment Result to Profit Before Tax

The following table reconciles the total segment result to profit before tax as presented in the consolidated statement of comprehensive income.

Reconciliation (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Total Segment Result	62.8	75.2
Corporate costs	(28.8)	(32.2)
Depreciation and amortisation	(33.5)	(35.9)
Finance result	(23.4)	(23.7)
Other operating income	3.2	5.7
Profit Before Tax	-13.7	-10.9

Note: Corporate costs include central administration expenses not directly attributable to the operating segments. Finance result includes interest income and expense, and other finance costs. Other operating income primarily relates to government grants.

4.3. Segment Assets and Liabilities

The Group does not report segment assets and liabilities to the CODM on a regular basis. However, the CODM reviews information on capital expenditure by segment.

Capital Expenditure by Segment (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Fresh	36.2	45.8
Frozen & Prepared	9.5	12.4
Total Capital Expenditure	45.7	58.2

5. Income Statement

5.1. Revenue

Revenue represents the net sales of goods and services after deduction of discounts and returns.

Revenue (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Goods	2,285.5	2,317.3
Services	38.8	43.9
Total Revenue	2,324.3	2,361.2

The decrease in revenue in the year ended 31 March 2021 compared to the previous year is primarily due to lower volumes in the Fresh segment, partly offset by higher prices. Revenue in the Frozen & Prepared segment remained stable.

5.2. Cost of sales

Cost of sales includes the cost of purchased goods, manufacturing costs, and costs related to added-value services and logistics.

Cost of Sales (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Goods	1,996.7	2,025.4
Services	26.1	27.4
Total Cost of Sales	2,022.8	2,052.8

The decrease in cost of sales is in line with the decrease in revenue.

5.3. Gross profit

Gross profit is the difference between revenue and cost of sales.

Gross Profit (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Gross Profit	301.5	308.4

The gross profit margin remained stable year-on-year.

5.4. Other operating income

Other operating income primarily relates to government grants received by the Group.

Other Operating Income (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Government grants	3.2	5.7
Other income	-	-
Total Other Operating Income	3.2	5.7

The decrease in government grants is due to the completion of certain grant-supported projects.

5.5. Distribution costs

Distribution costs include costs related to warehousing, transportation, and sales activities.

Distribution Costs (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Warehousing	35.7	36.4
Transportation	76.8	78.9
Sales and marketing	45.2	48.1
Total Distribution Costs	157.7	163.4

Distribution costs decreased due to lower volumes and ongoing efficiency initiatives.

5.6. Administrative expenses

Administrative expenses include general management, finance, and human resources costs.

Administrative Expenses (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
General management	42.1	45.8
Finance costs	5.6	6.2
Human resources	12.4	13.1
Total Administrative Expenses	60.1	65.1

Administrative expenses decreased due to cost control measures and restructuring initiatives.

5.7. Other operating expenses

Other operating expenses include items not directly related to the primary operating activities of the Group.

Other Operating Expenses (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Restructuring costs	10.5	5.3
Other expenses	4.1	6.7
Total Other Operating Expenses	14.6	12.0

The increase in other operating expenses is primarily due to higher restructuring costs incurred in the year ended 31 March 2021.

5.8. Finance result

Finance result comprises interest income and expense, and other finance income and expenses.

Finance Result (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Interest income	1.2	1.5
Interest expense	(24.6)	(25.2)
Other finance result	-	-
Total Finance Result	(23.4)	(23.7)

The finance result remained relatively stable.

5.9. Profit/(Loss) before tax

Profit/(Loss) before tax is calculated after all revenues and expenses, excluding income tax expense.

Profit/(Loss) Before Tax (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Profit/(Loss) Before Tax	(13.7)	(10.9)

The Group reported a loss before tax for both years, reflecting challenging market conditions and restructuring efforts.

5.10. Income tax expense

Income tax expense represents the sum of current tax and deferred tax.

Income Tax Expense (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Current tax	2.5	1.8
Deferred tax	0.9	1.1
Total Income Tax Expense	3.4	2.9

The effective tax rate for the year ended 31 March 2021 was higher than the previous year due to the utilisation of tax losses and changes in tax legislation.

5.11. Profit/(Loss) for the year

Profit/(Loss) for the year represents the net result after all revenues, expenses, and taxes.

Profit/(Loss) for the Year (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Profit/(Loss) for the Year	(17.1)	(13.8)

The Group incurred a net loss for the year, reflecting the pre-tax loss and income tax expense.

6. Balance Sheet

6.1. Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.

Property, Plant and Equipment (in € millions)	As at 31 March 2021	As at 31 March 2020
Cost
Land and buildings	105.7	107.2
Plant and machinery	112.5	118.4
Other equipment	10.1	11.9
Total Cost	228.3	237.5
Accumulated Depreciation
Land and buildings	(42.3)	(40.1)
Plant and machinery	(70.1)	(65.5)
Other equipment	(7.2)	(6.7)
Total Accumulated Depreciation	(119.6)	(112.3)
Net Carrying Amount	108.7	125.2

Depreciation is recognised on a straight-line basis over the estimated useful lives of the assets. The decrease in net carrying amount is mainly due to depreciation charges and disposals of assets.

6.2. Goodwill

Goodwill represents the excess of the purchase consideration over the fair value of net identifiable assets acquired in business combinations. Goodwill is not amortised but is tested for impairment at least annually.

Goodwill (in € millions)	As at 31 March 2021	As at 31 March 2020
Net Carrying Amount	94.2	94.2

No impairment loss on goodwill was recognised in the current or prior year.

6.3. Intangible assets

Intangible assets include software and other licences. These are stated at cost less accumulated amortisation and impairment losses.

Intangible Assets (in € millions)	As at 31 March 2021	As at 31 March 2020
Cost
Software	15.8	15.8
Other licences	2.5	2.5
Total Cost	18.3	18.3
Accumulated Amortisation
Software	(10.1)	(8.9)
Other licences	(1.2)	(1.1)
Total Accumulated Amortisation	(11.3)	(10.0)
Net Carrying Amount	7.0	8.3

Amortisation is recognised on a straight-line basis over the estimated useful lives of the intangible assets.

6.4. Investments in associates and joint ventures

The Group has no significant investments in associates or joint ventures.

6.5. Deferred tax assets and liabilities

Deferred tax assets and liabilities are recognised for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases.

Deferred Tax (in € millions)	As at 31 March 2021	As at 31 March 2020
Assets
Deferred tax assets	8.9	7.5
Liabilities
Deferred tax liabilities	(15.2)	(16.9)
Net Deferred Tax	(6.3)	(9.4)

The net deferred tax liability decreased due to the utilisation of tax losses and the reversal of temporary differences.

6.6. Trade and other receivables

Trade and other receivables include amounts due from customers, prepayments, and other receivables. They are stated at amortised cost less an allowance for expected credit losses.

Trade and Other Receivables (in € millions)	As at 31 March 2021	As at 31 March 2020
Trade receivables	180.5	185.2
Other receivables	12.4	15.7
Total Trade and Other Receivables	192.9	200.9
Less: Allowance for expected credit losses	(4.1)	(3.5)
Net Trade and Other Receivables	188.8	197.4

The allowance for expected credit losses reflects the Group's assessment of potential defaults on its trade receivables.

6.7. Inventories

Inventories are stated at the lower of cost and net realisable value.

Inventories (in € millions)	As at 31 March 2021	As at 31 March 2020
Raw materials	55.7	58.2
Work-in-progress	8.1	9.5
Finished goods	110.5	115.8
Total Inventories	174.3	183.5

Inventories decreased due to lower sales volumes and improved inventory management.

6.8. Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less.

Cash and Cash Equivalents (in € millions)	As at 31 March 2021	As at 31 March 2020
Cash and cash equivalents	45.8	30.2

Cash and cash equivalents increased due to improved cash flow management and the utilisation of existing credit facilities.

6.9. Trade and other payables

Trade and other payables include amounts owed to suppliers, accruals, and other payables.

Trade and Other Payables (in € millions)	As at 31 March 2021	As at 31 March 2020
Trade payables	125.5	130.1
Other payables	30.2	32.5
Total Trade and Other Payables	155.7	162.6

Trade and other payables decreased in line with reduced purchasing and operating activities.

6.10. Interest-bearing loans and borrowings

Interest-bearing loans and borrowings include bank loans and other debt financing.

Interest-Bearing Loans and Borrowings (in € millions)	As at 31 March 2021	As at 31 March 2020
Current
Bank overdrafts	10.5	15.8
Short-term loans	25.0	30.0
Non-current
Long-term loans	180.0	190.0
Total Interest-Bearing Loans and Borrowings	215.5	235.8

The Group has reduced its overall level of borrowings through scheduled repayments and refinancing.

6.11. Provisions

Provisions are recognised for liabilities of uncertain timing or amount.

Provisions (in € millions)	As at 31 March 2021	As at 31 March 2020
Reorganisation provision	8.5	12.3
Other provisions	3.1	4.5
Total Provisions	11.6	16.8

The decrease in provisions is primarily due to the utilisation of the reorganisation provision.

6.12. Lease liabilities

Lease liabilities represent the Group's obligations under finance leases and right-of-use assets.

Lease Liabilities (in € millions)	As at 31 March 2021	As at 31 March 2020
Current	4.5	5.1
Non-current	12.8	15.6
Total Lease Liabilities	17.3	20.7

Lease liabilities have decreased due to principal repayments made during the year.

6.13. Share capital

Share capital represents the nominal value of shares issued by the Group.

Share Capital (in € millions)	As at 31 March 2021	As at 31 March 2020
Ordinary shares	10.0	10.0

The share capital remained unchanged during the year.

6.14. Share premium

Share premium represents the amount received in excess of the nominal value of shares issued.

Share Premium (in € millions)	As at 31 March 2021	As at 31 March 2020
Share Premium	150.0	150.0

The share premium remained unchanged during the year.

6.15. Retained earnings/(accumulated deficit)

Retained earnings/(accumulated deficit) represents the cumulative profits and losses of the Group that have not been distributed to shareholders.

Retained Earnings/(Accumulated Deficit) (in € millions)	As at 31 March 2021	As at 31 March 2020
Retained Earnings/(Accumulated Deficit)	(30.5)	(13.4)

The accumulated deficit increased due to the net loss recognised for the year.

6.16. Total equity

Total equity represents the sum of share capital, share premium, and retained earnings/(accumulated deficit).

Total Equity (in € millions)	As at 31 March 2021	As at 31 March 2020
Total Equity	129.5	146.6

Total equity decreased due to the net loss for the year.

7. Statement of Cash Flows

The statement of cash flows presents the cash generated and used by the Group during the year, classified into operating, investing, and financing activities.

7.1. Cash flows from operating activities

Cash flows from operating activities include cash generated from the Group's principal revenue-producing activities.

Cash Flows from Operating Activities (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Profit/(Loss) before tax	(13.7)	(10.9)
Adjustments for non-cash items:
Depreciation and amortisation	33.5	35.9
Impairment losses	0.0	0.0
Changes in working capital:
Increase in inventories	9.2	(10.5)
Increase in trade and other receivables	8.6	(15.1)
Increase in trade and other payables	(6.9)	10.5
Other working capital changes	1.2	1.3
Net Cash from Operating Activities	31.9	11.2

The increase in net cash from operating activities is primarily due to favourable changes in working capital.

7.2. Cash flows from investing activities

Cash flows from investing activities include cash used for the purchase or sale of property, plant and equipment, and other long-term assets.

Cash Flows from Investing Activities (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Purchase of property, plant and equipment	(45.7)	(58.2)
Proceeds from disposal of property, plant and equipment	0.5	0.7
Net Cash from Investing Activities	(45.2)	(57.5)

Net cash used in investing activities decreased due to lower capital expenditure.

7.3. Cash flows from financing activities

Cash flows from financing activities include cash generated from the issuance or repayment of debt and equity, and dividend payments.

Cash Flows from Financing Activities (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Proceeds from borrowings	10.0	15.0
Repayment of borrowings	(30.3)	(35.8)
Interest paid	(24.6)	(25.2)
Dividends paid	0.0	0.0
Net Cash from Financing Activities	(44.9)	(46.0)

Net cash used in financing activities decreased due to lower repayment of borrowings.

7.4. Net increase/(decrease) in cash and cash equivalents

Net increase/(decrease) in cash and cash equivalents is the sum of net cash from operating, investing, and financing activities.

Net Increase/(Decrease) in Cash and Cash Equivalents (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Net Cash from Operating Activities	31.9	11.2
Net Cash from Investing Activities	(45.2)	(57.5)
Net Cash from Financing Activities	(44.9)	(46.0)
Net Increase/(Decrease) in Cash and Cash Equivalents	(58.2)	(92.3)

The Group experienced a net decrease in cash and cash equivalents during the year.

7.5. Cash and cash equivalents at beginning of year

Cash and Cash Equivalents at Beginning of Year (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Cash and cash equivalents at beginning of year	30.2	122.5

7.6. Cash and cash equivalents at end of year

Cash and Cash Equivalents at End of Year (in € millions)	Year Ended 31 March 2021	Year Ended 31 March 2020
Cash and cash equivalents at end of year	(28.0)	30.2

The net decrease in cash and cash equivalents is reflected in the ending balance.

8. Notes to the Financial Statements

8.1. General Information

Greenyard AG is a public limited company incorporated and domiciled in Switzerland. The registered office of the company is at Baarerstrasse 47, 6300 Zug, Switzerland.

8.2. Basis of Preparation

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). They have been prepared on a going concern basis and under the historical cost convention, except for certain financial instruments that are measured at fair value. The functional currency of the Group is Euro (€).

8.3. Significant Accounting Policies

The significant accounting policies applied in the preparation of these consolidated financial statements are set out below.

8.3.1. Revenue recognition

Revenue is recognised in accordance with IFRS 15 "Revenue from Contracts with Customers". Further details are provided in Note 3.3.

8.3.2. Property, plant and equipment

Property, plant and equipment are carried at cost less accumulated depreciation and impairment losses. Depreciation is recognised on a straight-line basis over the estimated useful lives of the assets.

8.3.3. Goodwill

Goodwill is recognised at cost less accumulated impairment losses. It is tested annually for impairment.

8.3.4. Intangible assets

Intangible assets are carried at cost less accumulated amortisation and impairment losses. Amortisation is recognised on a straight-line basis over the estimated useful lives of the assets.

8.3.5. Financial instruments

Financial instruments are recognised and derecognised on trade date. Financial assets and liabilities are initially measured at fair value. Subsequent measurement depends on the classification of the financial instrument.

8.3.6. Provisions

Provisions are recognised when the Group has a present obligation as a result of a past event, and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

8.3.7. Leases

The Group leases certain assets. Lease payments are recognised as an expense on a straight-line basis over the lease term, unless the lease is a finance lease. Finance lease liabilities are recognised at the inception of the lease.

8.3.8. Income tax

Income tax comprises current and deferred tax. Current tax is the amount of tax expected to be paid to the taxation authorities on the taxable profit for the year. Deferred tax is recognised using the balance sheet liability method.

8.3.9. Foreign currency translation

Transactions in foreign currencies are translated into the functional currency at the exchange rate prevailing on the date of the transaction. Foreign exchange gains and losses are recognised in the income statement.

8.3.10. Earnings per share

Basic earnings per share are calculated by dividing profit or loss attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year. Diluted earnings per share are calculated similarly, but take into account all dilutive potential ordinary shares.

8.4. Critical Accounting Judgements and Key Sources of Estimation Uncertainty

Key judgements and estimations are detailed in Notes 3.1 and 3.2.

8.5. Segment Reporting

Segment information is presented in Note 4.

8.6. Revenue

Revenue is detailed in Note 5.1.

8.7. Cost of sales

Cost of sales is detailed in Note 5.2.

8.8. Gross profit

Gross profit is detailed in Note 5.3.

8.9. Other operating income

Other operating income is detailed in Note 5.4.

8.10. Distribution costs

Distribution costs are detailed in Note 5.5.

8.11. Administrative expenses

Administrative expenses are detailed in Note 5.6.

8.12. Other operating expenses

Other operating expenses are detailed in Note 5.7.

8.13. Finance result

Finance result is detailed in Note 5.8.

8.14. Profit/(Loss) before tax

Profit/(Loss) before tax is detailed in Note 5.9.

8.15. Income tax expense

Income tax expense is detailed in Note 5.10.

8.16. Profit/(Loss) for the year

Profit/(Loss) for the year is detailed in Note 5.11.

8.17. Property, plant and equipment

Property, plant and equipment are detailed in Note 6.1.

8.18. Goodwill

Goodwill is detailed in Note 6.2.

8.19. Intangible assets

Intangible assets are detailed in Note 6.3.

8.20. Deferred tax assets and liabilities

Deferred tax assets and liabilities are detailed in Note 6.5.

8.21. Trade and other receivables

Trade and other receivables are detailed in Note 6.6.

8.22. Inventories

Inventories are detailed in Note 6.7.

8.23. Cash and cash equivalents

Cash and cash equivalents are detailed in Note 6.8.

8.24. Trade and other payables

Trade and other payables are detailed in Note 6.9.

8.25. Interest-bearing loans and borrowings

Interest-bearing loans and borrowings are detailed in Note 6.10.

8.26. Provisions

Provisions are detailed in Note 6.11.

8.27. Lease liabilities

Lease liabilities are detailed in Note 6.12.

8.28. Share capital

Share capital is detailed in Note 6.13.

8.29. Share premium

Share premium is detailed in Note 6.14.

8.30. Retained earnings/(accumulated deficit)

Retained earnings/(accumulated deficit) is detailed in Note 6.15.

8.31. Total equity

Total equity is detailed in Note 6.16.

8.32. Statement of cash flows

The statement of cash flows is presented in Section 7.

8.33. Events after balance sheet date

Events after the balance sheet date are disclosed in accordance with IAS 10.

8.34. Related party transactions

There were no significant related party transactions during the year that require disclosure, other than those related to key management compensation.

8.35. Contingent liabilities

The Group had no significant contingent liabilities at the reporting date.

8.36. Commitments

The Group had no significant capital commitments at the reporting date.

8.37. Subsequent events

Events after the reporting date which provide additional information about the Group's position as at the reporting date (adjusting events) are reflected in the financial statements. Events after the reporting date which are not adjusting events are disclosed in the notes, if material.

9. Corporate Governance Report

The Corporate Governance Report provides information on the Group's governance structure, policies, and practices, in accordance with applicable laws and regulations.

9.1. Board of Directors

The Board of Directors is responsible for the overall strategic direction of the Group and for overseeing its management. The Board currently comprises [Number] members.

9.2. Management

The Executive Committee is responsible for the day-to-day management of the Group.

9.3. Audit Committee

The Audit Committee assists the Board in its oversight of the Group's financial reporting, internal controls, and audit processes.

9.4. Remuneration Committee

The Remuneration Committee is responsible for determining the remuneration of the Directors and senior management.

9.5. Risk Management

The Group has a comprehensive risk management framework in place to identify, assess, and manage risks.

9.6. Internal Control System

The Group maintains an effective internal control system to ensure the reliability of financial reporting and compliance with laws and regulations.

9.7. Shareholder Relations

The Group is committed to transparent communication with its shareholders.

10. Statutory Auditor's Report

The Statutory Auditor's Report provides the independent auditor's opinion on the consolidated financial statements.

10.1. Independent Auditor's Report

[This section would typically contain the full text of the auditor's report, including the auditor's opinion, basis for opinion, key audit matters, management's responsibility, and auditor's responsibility.]

11. Shareholder Information

11.1. Financial Calendar

[Relevant dates for financial reporting, e.g., Full Year Results, Annual General Meeting]

11.2. Investor Relations

[Contact details for investor relations]

11.3. Company Website

[Link to the company's website]

12. Appendices

12.1. Glossary of Terms

[Definitions of key financial and business terms]

12.2. List of Subsidiaries

[List of significant subsidiaries]# Notes to the consolidated financial statements

4. Segment information

For management purposes, the Group is organised into two operating segments based on the Group’s activities. The Fresh segment is a worldwide market leader and supplier of fresh fruit and vegetables, flowers and plants, and fresh produce logistics. Segment Long Fresh includes the Frozen and Prepared activities. Frozen is a pioneer and market leader that processes freshly harvested fruits and vegetables into frozen food products that are easy to store and take little or no time to prepare. Prepared is a global player in freshly preserved fruit, vegetables, mushrooms and other ambient food products that are easy to store and ready to eat. An overview of the companies included in the different segments is provided in note 7.1. Subsidiaries, associates, joint ventures and investments recorded at cost. Management assesses segment performance and allocates resources based on adjusted EBITDA and sales. Note that we presented an adjusted EBITDA pre-IFRS 16 as well as post-IFRS 16, in transition to a full post-IFRS 16 EBITDA segment reporting in 21/22. The segment’s assets are assets belonging directly to it. Segment assets and segment sales are presented before elimination of intersegment transactions. Sales between segments are on an arm’s length basis in a manner similar to transactions with third parties.

Segment information AY 20/21

	Continuing operations
	Fresh €'000	Long Fresh €'000	Eliminations (1) €'000	Unallocated (2) €'000	Consolidated €'000
Sales	3,593,362	823,892	-1,027	-	4,416,227
Third party sales	3,592,680	823,547	-	-	4,416,227
Intersegment sales	682	346	-1,027	-	-
Adjusted EBITDA (post-IFRS 16)	95,064	62,562	-	-706	156,919
IFRS 16 impact	-35,423	-4,573	-	-371	-40,367
Adjusted EBITDA	59,641	57,989	-	-1,077	116,552
Total assets at 31 March 2021	1,279,702	571,153	-31,039	122,316	1,942,133

Segment information AY 19/20

	Continuing operations
	Fresh €'000	Long Fresh €'000	Eliminations (1) €'000	Unallocated (2) €'000	Consolidated €'000
Sales	3,264,386	797,976	-1,370	-	4,060,992
Third party sales	3,263,356	797,636	-	-	4,060,992
Intersegment sales	1,030	340	-1,370	-	-
Adjusted EBITDA (post-IFRS 16)	76,303	58,389	-	-1,250	133,442
IFRS 16 impact	-32,902	-4,470	-	-369	-37,741
Adjusted EBITDA	43,401	53,919	-	-1,619	95,701
Total assets at 31 March 2020	1,276,383	548,064	-57,094	197,571	1,964,923

(1) Long-term intersegment receivables and intersegment participations are not included in the segment assets and therefore not included in the eliminations.
(2) Unallocated adjusted EBITDA includes adjusted EBITDA allocated to corporate. Unallocated assets include derivative financial instruments, cash and cash equivalents and other assets allocated to corporate. We refer to the section Key Financial Information for the reconciliation from EBIT to adjusted EBITDA.

GREENYARD ANNUAL REPORT 2020/2021 / 147

4.1. Information about major customers

The segments have built an elaborated and diversified client portfolio, both in type of clients and geographical spread. Sales to the three major customers increased and amounted to 53,0% of total sales in AY 20/21 (AY 19/20 48,4%). Besides the top two customers, no other individual customers represent more than 10% of total sales (for current and previous accounting year). Sales to the ten major customers amount to 72,9% of total sales in AY 20/21 (AY 19/20 66,9%).

4.2. Geographical information

The Group sells its products in more than 100 countries across the world. The table below gives an overview of sales by customer location.

Sales	AY 20/21	AY 19/20
Germany	27,9%	26,9%
The Netherlands	27,6%	25,9%
Belgium	14,7%	12,7%
The United Kingdom	6,6%	7,9%
France	4,3%	4,8%
Other - Europe	13,6%	16,3%
Other - non-Europe	5,3%	5,5%
TOTAL	100%	100%

The table below shows the geographical spread of non-current assets. Non-current assets as shown below do not include goodwill, other financial assets and deferred tax assets.

Geographical spread of non-current assets	31 March 2021 €'000	31 March 2020 €'000
Belgium	243,760	259,617
The Netherlands	173,567	151,799
The United Kingdom	72,599	68,895
Germany	91,231	99,328
Poland	60,053	58,302
France	60,310	61,441
Other	58,053	72,349
TOTAL	759,572	771,730

Notes to the consolidated financial statements 148 /

5. Notes to the consolidated income statement

5.1. Sales

Sales fully relate to contracts with customers and can be disaggregated based on the type of goods and services delivered, being sales related to fresh, frozen and prepared goods. The sales of both frozen and prepared goods are allocated to the Long Fresh segment. Fresh sales comprise the sale of high-quality top, tropical, citrus and stone fruit, vegetables, salads, fresh-cut flower products and related services. Frozen sales are based on the processing of freshly-harvested vegetables and fruits into frozen food products that are easy to store, conserve and consume.

Deferred tax assets for tax losses carried forward are based on five-year revenue forecasts. The Group has taken into account advice provided by internal as well as external experts to determine the deferred tax asset positions relating to the tax losses carried forward. Deferred tax assets relating to tax losses carried forward, unused tax credits and temporary differences are recognised only to the extent that it is probable that sufficient taxable profit will exist in the foreseeable future. In estimating this, the Group takes into account aspects such as tax laws, regulations budgets and long-term business strategies (disregarding potential tax planning opportunities). Further details are provided in note 5.6. Income tax expense/income and note 6.7. Deferred tax assets and liabilities. There is also estimation involved for those potential tax assets that remain unrecognised. The nature and amounts of unrecognised potential tax assets are disclosed in note 6.7. Deferred tax assets and liabilities. Although the Group does not believe that there is significant risk of a material adjustment to deferred tax assets within the next financial year, there is significant uncertainty at each year end and therefore the Group’s overall tax position could change within the next 12 months. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously.

Employee benefit obligations: the determination of the defined benefit obligations is based on actuarial assumptions such as discount rate, salary increases, inflation and average duration of plans which are detailed in note 6.14. Pension and other employee benefit liabilities. These assumptions are considered to be a key source of estimation uncertainty as relatively small changes in the assumptions used may have a significant effect on the Group’s financial statements within the next year. Further information on the carrying amounts of the Group’s defined benefit obligation and the sensitivity of those amounts to changes in discount rate are provided in note 6.14. Pension and other employee benefit liabilities.
Leases: Determining the lease term requires judgement. Elements that are considered include assessing the probability that early termination option or extension options will be exercised. All facts and circumstances relevant to the assessment are considered.
COVID-19 pandemic: In case the COVID-19 pandemic would have long lasting consequences to our business or stakeholders, it could impact cash flow projections on which impairment testing was based. However, as explained in the section Position of the company: risks and uncertainties, being mainly active in retail which has proved to be thriving by the increased ‘at home’ fresh and long fresh F&V consumption. Moreover, the ongoing roll-out of the vaccination program is expected to be fully implemented in the course of the summer and seems to give an effective protection against severe COVID-19 illness. Therefore, we believe based on our today knowledge that our cash flow projections are on one hand sufficiently COVID-proof and on the other hand the COVID-risk is fading away. We have also assessed our exposure to receivable collections in food service, since a major part of this food service has been locked down over a long period. We have been monitoring these receivables diligently over the last year and can confirm that payments have been received as agreed (although sometimes with some delay) and no significant impairments had to be taken. We have no signals at this moment of Greenyard customers that experience financial difficulties with a potential impact on the AY 20/21 results. Moreover, in the beginning of June in most countries catering activities are gradually restarting.
Start-up of Fresh Solutions: In Germany we have set up a separate dedicated structure to exclusively serve the REWE partnership. This entails a new organisation, new processes and a new information system. Latter will be rolled out to other Fresh countries/entities in the coming years. Due to the start-up of Fresh Solutions and engaging into a new information system (as a pilot project), there are transitional inefficiencies in administration and finance. Mainly due to a backlog in settling purchase orders to growers, we relied on (more than common practice) estimates in the financial statements i.e. a significant part of the cost of goods sold in relation to the last quarter is based on accruals as estimated by the commercial team instead of actual incoming invoices.# Greenyard oers a wide range of innovative and high-quality frozen vegetables, fruits, vegetable mixes, convenience products and herbs. Prepared sales comprise the sale of freshly-preserved fruit, vegetables and other ambient food products that are easy to store and ready to eat. Greenyard oers customers an extensive product portfolio, from classic preserved products in cans or jars to ready-made soups, sauces, dips and pasta dishes in a variety of packaging.

Sales	AY 20/21	AY 19/20
€’000	€’000
Fresh	3,592,680	3,263,356
Frozen	494,932	465,190
Prepared	328,615	332,446
Long Fresh	823,547	797,636
TOTAL	4,416,227	4,060,992

The performance obligations relating to the sales are satised at a point in time determined by the incoterms. For sales of fresh goods, the performance obligation is predominantly satised at the moment the customer accepts the goods at its premises. For frozen and prepared sales, the incoterms vary from ‘ex-work’ to ‘delivered duty paid’. In the event of quality issues, the goods are not accepted or can be returned.

GREENYARD ANNUAL REPORT 2020/2021 / 149

5.2. Operating expenses

Operating expenses	AY 20/21	AY 19/20
€’000	€’000
Cost of goods	3,160,332	2,855,137
Transport	276,465	292,518
Packing, warehousing and farming	354,412	342,966
Personnel and temporary workforce costs	280,872	269,299
Other	46,869	53,401
*Cost of sales ()**	4,118,950	3,813,320
Impairment goodwill	-	-
Impairment property, plant & equipment	1,413	7,566
Rentals	63	685
Maintenance and repair	3,633	3,845
Personnel expenses	149,387	137,073
Utilities	3,469	2,595
Travel and representation	3,353	6,730
Oce expenses	2,807	2,988
Fees	20,454	19,247
Insurance	3,595	3,066
Information and communication technology	11,909	12,361
Depreciation	36,408	33,319
Quality	290	351
Indirect tax	5,759	4,745
Other	14,912	14,894
Selling, marketing and distribution & general and administrative expenses	256,039	241,899
TOTAL	4,376,402	4,062,785

(*) Contain personnel expenses, depreciation and other direct operating expenses.
Depreciation and amortisation expenses included in the cost of sales amount to € 61,2m (AY 19/20 € 62,6m) of which € 23,9m is related to right-of-use assets. The depreciation expenses in selling, marketing and distribution and general and administrative expenses amount to € 36,4m (AY 19/20 € 33,3m) of which € 10,5m is related to right-of-use assets. On the contrary to the depreciations and amortisations, IFRS 16 had a positive impact on the rent expenses for an amount of € 40,2m (AY 19/20 € 37,8m).
Impairment property, plant & equipment in AY 20/21 and AY 19/20 entirely relates to the impairment on Greenyard Prepared Netherlands to bring the equipment to its fair value. The increase in personnel expenses is explained in note 5.3. Personnel expenses.

5.3. Personnel expenses

Personnel expenses	AY 20/21	AY 19/20
€'000	€'000
Wages and salaries	245,931	238,262
Social security costs	43,663	44,004
Pension costs - defined benefit plans	(574)	1,139
Pension costs - defined contribution plans	5,086	5,159
Termination benefits	372	176
Temporary workforce	115,776	102,580
Other employee benefit expenses	20,005	15,052
TOTAL	430,259	406,372
Included within cost of sales	280,872	269,299
Included within selling, marketing and distribution & general and administrative expenses	149,387	137,073

The total number of full-time equivalents (FTEs) as of 31 March 2021 amounted to 9 279 (including temporary sta), compared to 8 800 as of 31 March 2020. This increase is mainly related to the increased activity following the successful and expanding partnerships. The average number of FTEs during AY 20/21 amounted to 9 031, which is an increase of 131 FTE compared to AY 19/20.

5.4. Other operating income/expense

Other operating income/expenses (-)	AY 20/21	AY 19/20
€'000	€'000
Income from rentals	1,994	1,585
Indemnities recovery	440	12,924
Grants	1,111	456
Sale of waste	1,152	933
Recharge costs	1,530	2,501
Gain/loss (-) on disposal of property, plant & equipment	1,066	3,733
Result on change in control of equity accounted investments	-115	-1,375
Result on sale of subsidiaries	2,889	-22,538
Other	1,085	901
TOTAL	11,153	-880

The most signicant uctuations in other operating income/expense between AY 20/21 and AY 19/20 relates to the indemnities recovery and the result in sale of subsidiaries. The indemnities recovery in AY 19/20 mainly related to the insurance proceeds for the re in Fresh UK entity (€ 8,8m) while the result on sale of subsidiaries concerned the sale of Greenyard Flowers UK. The result on sale of subsidiaries in AY 20/21 relates to the sale of Logistics Portugal which resulted in a gain of € 3,0m.

GREENYARD ANNUAL REPORT 2020/2021 / 151

5.5. Net nance income/cost

Net nance income/cost (-)	AY 20/21	AY 19/20
€’000	€’000
Interest expense - retail bond	-	-1,952
Interest expense - convertible bond	-4,688	-4,700
Interest expense - bank borrowings	-17,312	-23,175
Amortisation transaction costs - retail bond	-	-23
Amortisation transaction costs - convertible bond	-599	-565
Amortisation conversion option	-2,605	-2,458
Amortisation transaction costs - term loan / revolving credit facility	-1,829	-1,061
Interest expense - factoring	-5,662	-6,153
Interest expense - IRS	-34	-432
Interest expense - Leasing	-9,638	-10,762
Other	-212	-580
Interest expense	-42,579	-51,861
Interest income	260	289
Interest income	260	289
Foreign exchange gains/losses (-)	-1,643	-3,052
Bank and other nancial income/cost (-)	-3,202	-6,185
Other nance result	-4,845	-9,237
TOTAL	-47,164	-60,808

No interest on the retail bond was incurred in AY 20/21 as the retail bond was repaid in July 2019, at maturity date. The convertible bond will be repaid at maturity date in December 2021. Interest expenses on bank borrowings have decreased due to the lower interest rates following the declining leverage ratio. Note that as by the end of the nancial year AY 20/21 Greenyard successfully renanced through an amendment and restatement of its 2016 Facilities Agreement. We refer to note 6.16. Interest-bearing loans for further detail on the renancing. Note that the interest expenses on leasing almost entirely relate to the application of IFRS 16. The bank and other nancial costs in AY 20/21 mainly relate to write-os of nancial assets for an amount of € 1,9m (€ 1,8m in AY 19/20). A non-recurring item in relation to waiver agreements of € 1,9m was also included in AY 19/20.

Notes to the consolidated financial statements
152 /

5.6. Income tax expense/income

Income tax expense (-)/income	AY 20/21	AY 19/20
€'000	€'000
Current tax on prots for the year	-13,103	-9,755
Adjustments in respect of prior years	-787	428
Current tax	-13,891	-9,328
Origination and reversal of temporary dierences	9,349	5,745
Deferred tax assets on tax losses and forfeited losses	1,422	-1,015
Deferred tax	10,771	4,731
TOTAL	-3,119	-4,597

Eective tax rate reconciliation	AY 20/21	AY 19/20
€'000	€'000
Result before taxes (prot/loss (-))	4,321	-63,384
Theoretical tax rate	25,00%	29,58%
Tax calculated at statutory Belgian tax rate applicable to prots	-1,080	18,749
Tax eects of:
Eect of dierent tax rates in other countries	2,026	-2,682
Income not subject to income tax	330	895
Non-deductible items	-7,222	-17,006
Non-recognised deferred tax assets on tax losses and forfeited losses	-4,957	-11,450
Recognition of deferred tax assets not previously recognised	4,207	-
Use of deferred tax assets not previously recognised	1,074	1,049
Adjustments in respect of prior years	-380	775
Nominal tax rate changes	-57	5,249
Other	2,940	-176
Eective income tax expense (-)/ income	-3,119	-4,597
Eective tax rate	72,19%	-7,25%

For a detailed discussion please refer to note 6.7. Deferred tax assets and liabilities.
Income tax for AY 20/21 amounts to € 3,1m (AY 19/20 €4,6m). This implies a consolidated eective tax rate of 72,19% (AY 19/20 -7,25%). The eective tax rate for AY 19/20 was highly impacted by non-recognition of deferred tax assets on tax losses, the loss on the sale of subsidiaries and the adjustments in the rates used to calculate deferred taxes resulting from the evolution in local tax rates. The eective tax rate for AY 20/21 was positively impacted by the recognition and use of deferred tax assets which were previously not recognised. The current tax accruals result from the improved/increased prot before tax positions of several legal entities within the Group thus increasing the eective tax rate signicantly. In addition, tax losses have been fully utilised by a number of legal entities in several jurisdictions for which no deferred tax assets on losses had been recognised previously. IFRS 16 also had a € 1,0m impact on the tax position.

GREENYARD ANNUAL REPORT 2020/2021 / 153

5.7. Earnings per share

	AY 20/21	AY 19/20
	Basic	Diluted
Weighted average number of ordinary shares	43,067,279	43,067,279
Dilution eect of share based compensation	331,203
Dilution eect of convertible bond (issued in December 2016)	-	-
Total	43,067,279	43,398,482
Prot/loss (-) attributable to the shareholders of the Group (in €'000):
Continuing operations	536	536
Discontinued operations	-	-
Earnings per share (in € per share)	0.01	0.01

	AY 20/21	AY 19/20
	Basic	Diluted
Weighted average number of ordinary shares	43,008,731	43,008,731
Dilution eect of share based compensation	-
Dilution eect of convertible bond (issued in December 2016)	-	-
Total	43,008,731	43,008,731
Prot/loss (-) attributable to the shareholders of the Group (in €'000):
Continuing operations	-68,533	-68,533
Discontinued operations	-	-
Earnings per share (in € per share)	-1.59	-1.59

Earnings per share (EPS) is the amount of post-tax prot attributable to each share.Basic EPS is calculated as the result for the period attributable to the shareholders of the Group divided by the weighted average number of shares outstanding during the year. The weighted average number of shares outstanding is calculated taking into account the treasury shares acquired as part of a buyback programme (1,363,854 as per 31 March 2021). Diluted EPS reflects any commitments the Group has made to issue shares in the future. These comprise of (i) the convertible bond issued in December 2016 and (ii) potential share based awards (see note 6.13. Share based compensation):

The convertible bond tends to affect both the denominator and the numerator of the EPS ratio. The dilution effect of the convertible bond on the earnings (to be used in the numerator of the EPS ratio) consists of a reversal of all income and expenses directly related to the convertible bond and having affected the ‘basic’ earnings for the period. The following income statement items are affected by the convertible bond: (i) the effective interest expense (€ 4.7m); (ii) the amortisation of transaction costs and embedded conversion option component (€ 3.2m) and (iii) taxes (€ -2.0m).
Dilutive share based awards affect the denominator and represent the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares. The convertible bond is anti-dilutive in AY 20/21, since it causes the calculated diluted EPS ratio to improve. To calculate the impact, it is assumed that all conversion options of the convertible bond are exercised in their entirety at the beginning of the period. The number of shares to be converted has been set at 7,171,543.

Notes to the consolidated financial statements

6. Notes to the consolidated statement of financial position

6.1. Property, plant & equipment

Property, plant & equipment AY 20/21

	Land and buildings	Plant, machinery and equipment	Furniture and vehicles	Assets under construction	TOTAL
ACQUISITION VALUE
Balance at 31 March 2020	279,704	579,713	56,268	16,387	932,072
Additions	2,602	14,640	8,427	25,408	51,077
Sales and disposals	-308	-3,131	-810	-412	-4,661
Change in scope: disposal of subsidiaries	-1,299	-1,649	-1,898	-	-4,845
Transfer from one heading to another	3,519	13,208	760	-17,576	-89
Translation differences	882	1,614	40	99	2,635
Balance at 31 March 2021	285,100	604,395	62,787	23,907	976,189
DEPRECIATION AND IMPAIRMENT LOSSES
Balance at 31 March 2020	149,115	411,684	48,087	7	608,893
Depreciation	9,615	28,832	4,015	-	42,462
Impairment losses	-	1,413	-	-	1,413
Reversals after sales and disposals	-212	-3,131	-730	10	-4,062
Change in scope: disposal of subsidiaries	-288	-979	-1,007	-	-2,274
Transfer from one heading to another	-2,134	2,131	-196	-	-198
Translation differences	311	838	67	-	1,216
Balance at 31 March 2021	156,407	440,790	50,238	17	647,452
Net carrying amount at 31 March 2021	128,694	163,605	12,550	23,890	328,738

Property, plant & equipment AY 19/20

	Land and buildings	Plant, machinery and equipment	Furniture and vehicles	Assets under construction	TOTAL
ACQUISITION VALUE
Balance at 31 March 2019	293,977	575,374	56,015	6,572	931,938
Additions	6,011	8,226	2,397	16,664	33,298
Change in scope: business combinations	4,946	3,473	173	-	8,592
Sales and disposals	-16,108	-6,632	-1,694	-177	-24,612
Change in scope: disposal of subsidiaries	-6,391	-3,855	-186	-4	-10,436
Transfer from one heading to another	-271	6,484	-115	-6,522	-424
Translation differences	-2,460	-3,357	-321	-147	-6,285
Balance at 31 March 2020	279,704	579,713	56,268	16,387	932,072
DEPRECIATION AND IMPAIRMENT LOSSES
Balance at 31 March 2019	153,907	380,949	46,504	7	581,367
Depreciation	9,856	32,520	3,307	-	45,683
Impairment losses	-	7,566	0	-	7,566
Change in scope: business combinations	785	720	89	-	1,594
Reversals after sales and disposals	-12,920	-6,530	-1,277	-	-20,726
Change in scope: disposal of subsidiaries	-1,083	-2,378	-105	-	-3,566
Transfer from one heading to another	-848	779	-170	-	-239
Translation differences	-582	-1,943	-262	-	-2,787
Balance at 31 March 2020	149,115	411,684	48,087	7	608,893
Net carrying amount at 31 March 2020	130,589	168,029	8,181	16,381	323,179

Property, plant & equipment increased by € 5.6m during AY 20/21, which is the combined effect of € 51.1m additions, offset by (i) € 42.5m depreciation, (ii) € 2.6m decrease related to the sale of Greenyard Logistics Portugal, (iii) € 1.4m increase from foreign exchange rate fluctuations and (iv) the additional impairment in Greenyard Prepared Netherlands ad € 1.4m to bring the equipment to its fair value. The additions in AY 20/21 mainly relate to (i) capex in the new distribution center and warehouse in the Fresh segment in the Netherlands as well as a new citrus packaging line and (iii) new packaging facilities in the Frozen division. Also note that Greenyard has invested in the installation of a new engine room in the Comines factory (Frozen segment) for which the cost amounts to € 9.0m. On the other hand, Greenyard received a grant from the supplier for the same amount. In alignment with IAS 20 and the Greenyard accounting policy, this grant was deducted from the investment.

6.2. Goodwill

	31 March 2021	31 March 2020
ACQUISITION VALUE
Balance at the end of the preceding period	556,410	556,157
Change in scope: business combinations (note 7.1.)	4	253
Balance at the end of the period	556,414	556,410
IMPAIRMENT LOSSES
Balance at the end of the preceding period	78,910	78,910
Impairment losses	-	-
Balance at the end of the period	78,910	78,910
Net carrying amount at the end of the period	477,504	477,500

The Group tests the goodwill for impairment annually and where there are indications that the value of goodwill has decreased. The Group’s impairment test for goodwill is based on value-in-use calculations which are, in turn, based on a discounted cash flow model. In AY 18/19, the goodwill related to the Long Fresh segment of € 78.9m was fully impaired and thus the remaining goodwill of € 477.5m relates to the Fresh segment. At 31 March 2021, the Group performed its annual impairment test for the Fresh segment. The recoverable amount has been determined based on a value-in-use calculation of cash flow projections from the financial budget of AY 21/22 and long-range plan for the subsequent financial periods until AY 25/26 (together referred to as ‘LRP’), in conjunction with a perpetuity of cash flows to determine terminal value. The LRP takes into account a margin improvement resulting in an expected average yearly Adjusted EBITDA margin of 2.0% (which is an increase from 1.8% to 2.2% over the period AY 20/22 - AY 25/26) and an average sales growth of 2.3% (over the period AY 21/22 - AY 25/26) following an exceptional growth of 10.1% in Fresh sales in AY 20/21. The value in use is based on cash flow forecasts over a period of five years, in conjunction with a perpetuity of cash flows as of then with a growth rate of 1.0%. Cash flows are discounted at an after-tax discount rate of 6.8% which was benchmarked with the weighted average cost of capital (WACC) provided by the analysts. The results of this test have shown that the value in use exceeds the carrying value of the cash flow generating unit (the 'headroom') by € 303.6m. The major sensitivities for the impairment tests are the sales growth rate, the Adjusted EBITDA growth rate and the discount rate. This headroom would reduce to zero (keeping other key parameters constant) if the yearly sales growth rates applied in calculating the value in use were to fall by 302 base points (to an average yearly sales growth of -0.7% and a perpetual sales growth rate of -2.0%), or the yearly Adjusted EBITDA growth rates were to fall by 622 base points (reducing the average yearly Adjusted EBITDA margin to 1.7%) or if the after-tax discount rate was to rise by 357 base points (or a rate of 10.4%) in all periods until AY 25/26 and thereafter. Based on the above assumptions the Group has concluded that no impairment losses need to be recorded at 31 March 2021 on the goodwill of the Fresh segment. At 31 March 2020, the applied methodology was similar to the one discussed above.

Goodwill impairment test - key parameters

	31 March 2021	31 March 2020
Fresh
Average sales growth rate	2.3%	4.6%
Perpetual growth rate	1.0%	1.0%
Average adjusted EBITDA margin	2.0%	1.9%
Discount rate (1)	6.8%	7.8%
Headroom (in € million)	303.6	144.0
(1) The discount rate is calculated as the Weighted Average Cost of Capital (WACC).

6.3.## Other intangible assets

AY 20/21

	€'000	€'000	€'000	€'000
ACQUISITION VALUE
Balance at 31 March 2020	63,340	250,535	1,258	315,133
Additions	10,481	-	-	10,481
Sales and disposals	-447	-	-	-447
Change in scope: disposal of subsidiaries	-43	-461	-	-504
Transfer from one heading to another	89	-	-	89
Translation differences	34	-	26	60
Balance at 31 March 2021	73,454	250,074	1,284	324,812
AMORTISATION AND IMPAIRMENT LOSSES
Balance at 31 March 2020	41,832	62,947	840	105,618
Amortisation	7,295	13,288	81	20,665
Reversals after sales and disposals	-365	-	-	-365
Change in scope: disposal of subsidiaries	-43	-103	-	-146
Transfer from one heading to another	198	-	-	198
Translation differences	27	-	17	44
Balance at 31 March 2021	48,944	76,133	938	126,014
Net carrying amount at 31 March 2021	24,509	173,941	345	198,797

AY 19/20

	Software and licences €'000	Customer relationships €'000	Other €'000	TOTAL €'000
ACQUISITION VALUE
Balance at 31 March 2019	57,837	250,535	610	308,982
Additions	6,031	-	-	6,031
Change in scope: business combinations	69	-	-	69
Sales and disposals	-311	-	-	-311
Change in scope: disposal of subsidiaries	-215	-	-	-215
Transfer from one heading to another	125	-	656	781
Translation differences	-196	-	-8	-204
Balance at 31 March 2020	63,340	250,535	1,258	315,133
AMORTISATION AND IMPAIRMENT LOSSES
Balance at 31 March 2019	37,711	49,639	403	87,752
Amortisation	4,694	13,308	69	18,072
Change in scope: business combinations	8	-	-	8
Reversals after sales and disposals	-298	-	-	-298
Change in scope: disposal of subsidiaries	-215	-	-	-215
Transfer from one heading to another	58	-	371	429
Translation differences	-126	-	-3	-129
Balance at 31 March 2020	41,832	62,947	840	105,618
Net carrying amount at 31 March 2020	21,508	187,588	418	209,515

The decrease in the other intangible assets of € 10,7m mainly results from amortisations of the period (€ 20,7m), partly compensated by investments (€ 10,5m) like the pilot on a new ERP for the Fresh segment. Customer relationships mainly relate to the client portfolio of the Fresh segment, acquired in the business combination in AY 15/16. The portfolio has a remaining useful life of 14 years.

GREENYARD ANNUAL REPORT 2020/2021 / 159

6.4. Leases

The group leases many assets including land and buildings, vehicles, machinery and IT equipment.

Right-of-use assets

31 March 2021

	Land and buildings €'000	Plant, machinery and equipment €'000	Furniture and vehicles €'000	TOTAL €'000
Balance at 31 March 2020	206,048	8,101	12,642	226,791
Additions	21,106	3,345	5,252	29,702
Depreciation	-22,986	-4,047	-7,430	-34,463
Other movements	-3,498	770	984	-1,744
Balance at 31 March 2021	200,669	8,169	11,448	220,286

31 March 2020

	Land and buildings €'000	Plant, machinery and equipment €'000	Furniture and vehicles €'000	TOTAL €'000
Balance at 31 March 2019	217,916	9,869	15,155	242,940
Additions	9,984	2,776	4,235	16,994
Depreciation	-22,328	-3,540	-6,252	-32,120
Other movements	476	-1,003	-496	-1,024
Balance at 31 March 2020	206,048	8,101	12,642	226,791

The right-of-use assets decreased by € -6,5m over AY 20/21 mainly as a result of € 29,7m additions which are largely offset by € -34,5m depreciation. The additions in AY 20/21 mainly relate to the new distribution center and warehouse in the Netherlands for Bakker Barendrecht (€ 22,7m). Other movements mainly consist of the disposal of Greenyard Logistics Portugal and remeasurements of right-of-use assets.

Lease liabilities

	31 March 2021 €’000	31 March 2020 €’000
Non-current	206,949	208,782
Current	28,496	26,409
TOTAL	235,445	235,191

The maturity analysis of lease liabilities is disclosed in note 6.18. Risk management policy.

Amounts recognised in the income statement

	31 March 2021 €'000	31 March 2020 €'000
Depreciation	34,463	32,120
Interest on lease liabilities	9,638	9,638
Expenses relating to short-term leases	3,210	3,210
Expenses relating to leases of low-value assets	91	91
TOTAL	47,402	45,059

The total cash outflow for leases in AY 20/21 amounted to € 40,4m.

Notes to the consolidated financial statements 160 /

6.5. Investments accounted for using equity method

Name of investment	Description of interest	Type of investment	31 March 2021	31 March 2020
Grupo Yes Procurement Marketing SL	Procurement of fruit and vegetables for export purposes in Spain	Joint venture	50%	50%
Logidis Sistem SL	Bundling transport of fresh products using subcontractors in Spain	Joint venture	50%	50%
Mahindra Greenyard Pvt Ltd (1)	Import and export hub in India	Joint venture	-	40%
Agritalia Srl	Bio certified cooperative with growers network across Italy	Associate	33%	33%

(1) Sold during AY 20/21

The movement in the investments accounted for using the equity method can be detailed as follows:

Investments accounted for using equity method	AY 20/21 €'000	AY 19/20 €'000
Balance at the end of the preceding period	7,193	9,833
Share of profit/loss (-)	507	97
Acquisition	-	30
Change in scope: business combination (note 7.1.)	-	-2,813
Other changes	-21	-
Translation differences	-	46
Balance at the end of the period	7,679	7,193

Summarized financial information of the company’s joint-ventures and associates is as follows:

Investments accounted for using equity method - at 31 March

	Assets	Liabilities	Net assets
	2021 €'000	2020 €'000	2021 €'000
Grupo Yes Procurement Marketing SL	12,593	12,535	2,107
Logidis Sistem SL	6,498	5,906	4,255
Mahindra Greenyard Pvt Ltd (1)	-	1,180	-
Agritalia Srl (2)	3,660	3,629	3,286

Investments accounted for using equity method

	Sales	Expenses	Profit after tax
	AY 20/21 €'000	AY 19/20 €'000	AY 20/21 €'000
Grupo Yes Procurement Marketing SL	24,615	26,882	23,750
Logidis Sistem SL	16,375	20,960	16,227
Mahindra Greenyard Pvt Ltd (1)	7,895	10,013	7,666
Agritalia Srl (2)	12,212	9,320	12,201

(1) Sold during AY 20/21.
(2) Figures at 31 December.

GREENYARD ANNUAL REPORT 2020/2021 / 161

There are no contingent liabilities relating to the Group’s interest in the associates or joint ventures incurred jointly with other investors, and none arising because the investor is severally liable for all or part of the liabilities of the associate or joint venture.

6.6. Other financial assets and liabilities

Other financial assets and liabilities

	31 March 2021	31 March 2020
	Assets €'000	Liabilities €'000
IRS - held-for-trading	-	-
IRS - cash flow hedging	-	-
Forward agreements - held-for-trading	-	-
Forward agreements - cash flow hedges	-	-
Non-current derivatives	-	-
IRS - held-for-trading	-	-
IRS - cash flow hedging	-	-
Forward agreements -held-for-trading	14	-
Forward agreements - cash flow hedges	505	2,408
Current derivatives	519	2,408
Equity investments	5	-
TOTAL	524	2,408

6.7. Deferred tax assets and liabilities

Deferred taxes (net carrying amount)

	AY 20/21	AY 19/20
	Deferred tax assets €'000	Deferred tax liabilities €'000
Balance at the end of the preceding period	15,575	41,325
Increase/decrease (-) via income statement	5,037	-5,734
Increase/decrease (-) via equity	1,225	237
Change in scope: business combinations	-	-
Change in scope: disposal of subsidiaries	-	-81
Translation differences	-490	-194
Set-off of assets and liabilities	-3,285	-3,285
Balance at the end of the period	18,061	32,268

Deferred taxes (allocation)

	31 March 2021	31 March 2020
	Deferred tax assets €'000	Deferred tax liabilities €'000
Intangible assets and property, plant & equipment	15,244	48,366
Derivatives	494	-
Interest-bearing loans	127	-
Inventories	15	2,749
Trade and other receivables	494	97
Provisions	3,565	206
Current liabilities	459	14
Fiscal losses and other tax credits	17,557	-
Tax reserves	333	1,064
Total deferred taxes related to temporary differences	38,289	52,496
Set-off of assets and liabilities	-20,228	-20,228
Net deferred tax assets/liabilities	18,061	32,268

The total amount of fiscal losses for which a deferred tax asset has been set up amounts to €71,2m (gross) as of 31 March 2021 (31 March 2020 €51,4m). These losses mainly relate to tax losses originated in Belgium, Austria, Germany and the UK.

Maturity date of unrecognised fiscal losses and other tax credits (gross)

	AY 20/21 €'000	AY 19/20 €'000
Within one year	-	2,074
Between one and five years	1,457	9,234
More than five years	-	-
Indefinite	168,722	184,002
TOTAL	170,179	195,310

6.8. Inventories

Inventories

	31 March 2021 €'000	31 March 2020 €'000
Raw materials and consumables	34,235	28,877
Work in progress and finished goods	275,212	232,990
TOTAL	309,447	261,867

Raw materials and consumables mainly include fresh fruit, vegetables and packing materials. Fresh fruit and vegetables are either used for trading (Fresh segment) or for processing (Long Fresh segment).

GREENYARD ANNUAL REPORT 2020/2021 / 163

Work in progress and finished goods mainly relate to the Long Fresh segment.Work in progress includes frozen vegetables which are stored in bulk (not yet packed). The increase in inventories, which is almost entirely driven by the Long Fresh segment, is a result of a rebuild of inventory after an historically low inventory level end March 20 following a strong hoarding impact at the start of the first lock-down, aiming to secure supply of the projected sales volumes. A part of inventories is pledged under the Group’s current financing programs. We refer to note 7.3. Off-balance sheet commitments for further detail hereon.

6.9. Trade and other receivables

Trade and other receivables	31 March 2021 €'000	31 March 2020 €'000
Trade receivables	99	99
Valuation allowances on trade receivables	-99	-99
Trade receivables net	-	-
Other receivables	2,565	2,677
Guarantee deposits	698	602
Prepayments	809	1,773
Other receivables net	4,071	5,052
Non-current	4,071	5,052
Trade receivables	224,447	236,414
Valuation allowances on trade receivables	-5,797	-10,270
Trade receivables net	218,650	226,144
Other receivables	52,992	49,105
Prepaid expenses and accrued income	14,981	15,732
Prepayments	9,150	12,329
Other receivables net	77,123	77,167
Current	295,774	303,311

Trade receivables relate fully to sales from contracts with customers. The payment terms for the sale of fresh goods vary but the majority are 60 days. For the sale of frozen and prepared goods, the payments terms vary to a maximum of 120 days. The other receivables mainly relate to VAT, other recoverable taxes and deposits. Prepaid expenses and accrued income mainly relate to prepayments on maintenance contracts, rent and IT costs. Prepayments mainly relate to prepayments to growers and suppliers. Management believes that the fair value does not differ significantly from the carrying value. A major part of trade and other receivables are pledged under the Group’s current financing and factoring programmes. For more information, refer to note 7.3. Off-balance sheet commitments.

Notes to the consolidated financial statements / 164

Ageing analysis of trade receivables and valuation allowances

Ageing of trade receivables	31 March 2021 Gross €'000	31 March 2021 Valuation allowances €'000	31 March 2021 Net €'000	31 March 2020 Gross €'000	31 March 2020 Valuation allowances €'000	31 March 2020 Net €'000
Not overdue	108,194	-613	107,581	116,230	-	116,230
Overdue less than 30 days	95,241	-	95,241	94,291	-	94,291
Overdue between 30 and 60 days	13,915	-27	13,888	4,858	-	4,858
Overdue more than 60 days	7,098	-5,158	1,941	21,035	-10,270	10,765
TOTAL	224,447	-5,797	218,650	236,414	-10,270	226,144

The valuation allowances on trade and other receivables are determined by management. When amounts are more than 30 days overdue, an estimation is made with regard to recoverability and, if relevant (bankruptcy, etc.), an appropriate provision is recorded. No valuation allowances are taken by the Group for overdue amounts where collection is still deemed probable, for example, because outstanding amounts are recoverable from credit insurance, tax authorities or because the Group holds sufficient securities. The Group’s exposure to credit risks is described in note 6.18. Risk management policy.

Valuation allowances on short-term receivables

	AY 20/21 €000	AY 19/20 €000
Balance at the end of the preceding period	-10,270	-8,452
Additions	-1,232	-2,321
Change in scope: disposal of subsidiaries	102	-
Non-recoverable amounts (use)	3,928	322
Reversals	1,675	182
Balance at the end of the period	-5,797	-10,270

Trade and other receivables: foreign currencies	31 March 2021 €'000	31 March 2020 €'000
GBP	18,943	21,676
USD	15,101	29,508
PLN	7,432	9,021
CZK	21,154	26,856
Other	4,015	6,630

GREENYARD ANNUAL REPORT 2020/2021 / 165

Factoring

Most of the Group’s subsidiaries benefit from a multi-country syndicated factoring agreement. In accordance with the syndicated factoring agreement, undisputed trade receivables are sold to certain commercial finance companies on a basis which is non-recourse, including the receivables of the ten largest customers, to the extent the Group is not making use of their supply chain financing program. The financing obtained through the factoring has an off-balance character. The syndicated factoring agreement also contains a negative pledge (meaning that the receivables can only be sold to the syndicate of commercial finance companies), a maximum dilution ratio (meaning that at least 95% of the payments should be on the bank account of the syndicate of commercial finance companies), and a leverage test (the test used for the Facilities Agreement). Subsidiaries in the United Kingdom, France, Germany, the Netherlands, Italy, Austria, Poland, Spain and Belgium participate in the syndicated factoring programme which is subject to an overall maximum programme amount of € 475,00m. This maximum programme amount is the maximum that can be drawn for the Group, subject to the receivables sold to the factoring syndicate. Apart from the multi-country syndicated factoring programme mentioned earlier, only one US entity entered into a bilateral factoring agreement. Factoring is used when the transferred receivables are subject to credit insurance through credit insurers with at least an investment grade rating, since the syndicate of commercial finance companies bears the ultimate credit risk. As at 31 March 2021, € 345,5m of financing had been obtained through the multi-country syndicated factoring program (€ 353,6m as at 31 March 2020). The late-payment risk related to the factoring has been assessed as immaterial. In accordance with IFRS 9 Financial instruments: Recognition and Measurement, all non-recourse trade receivables, included in these factoring programmes, are derecognised for the non-continuing involvement part.

6.10. Cash & cash equivalents and bank overdrafts

Cash and cash equivalents and bank overdrafts	31 March 2021 €'000	31 March 2020 €'000
Cash and cash equivalents	81,250	132,709
Bank overdrafts	-1,909	-1,077
TOTAL	79,342	131,632

The cash & cash equivalents are held at reputable banks.

Notes to the consolidated financial statements / 166

6.11. Financial instruments by category

Financial assets by category at	Assets at amortised cost €'000	Assets at fair value through profit and loss €'000	Derivatives used for hedging €'000	TOTAL €'000
31 March 2021
Equity investments	-	5	-	5
Derivatives	-	14	505	519
Trade and other receivables excluding prepayments	289,886	-	-	289,886
Cash and cash equivalents	81,250	-	-	81,250
TOTAL	371,137	19	505	371,661

Financial assets by category at	Assets at amortised cost €'000	Assets at fair value through profit and loss €'000	Derivatives used for hedging €'000	TOTAL €'000
31 March 2020
Equity investments	-	106	-	106
Derivatives	-	14	2,111	2,125
Trade and other receivables excluding prepayments	294,260	-	-	294,260
Cash and cash equivalents	132,709	-	-	132,709
TOTAL	426,970	120	2,111	429,201

6.12. Issued capital, share premium and other capital instruments

Share capital and share premium

The Board of Directors is authorised, for a period of five years as from 17 October 2019, the date the resolutions of the Extraordinary Shareholders’ Meeting of 20 September 2019 were published in the Belgian Official Gazette, to increase the capital of the Company in one or more instalments up to a maximum amount equal to the share capital amounting to € 293 851 765. On 26 March 2021, the Board of Directors increased the share capital by € 50,0m within the framework of the authorized capital, through the issuance of 7 142 858 shares, which were fully paid. Transaction costs of € -0,7m were recorded as a reduction in share capital. As a result of the Board of Directors’ decision of 26 March 2021, the amount remaining available for a capital increase within the framework of the authorized capital is equal to € 243 851 759.

Share capital	Number of shares	Statutory amount (1) €'000	Capitalized transaction costs €'000	Group amount €'000
Balance at 31 March 2020	44,372,585	293,852	-5,460	288,392
Capital increase 26 March 2021	7,142,858	50,000	-696	49,304
Balance at 31 March 2021	51,515,443	343,852	-6,156	337,696

(1) As per the bylaws of Greenyard NV.

GREENYARD ANNUAL REPORT 2020/2021 / 167

There was no movement in the issued capital, authorised capital, share premium and other capital instruments during AY 19/20. All shares are without par value.

Treasury shares

As stipulated in article 12 of Greenyard’s articles of association, the Board of Directors is explicitly authorised to acquire, during a five-year period counting from the date of the Extraordinary Shareholders’ Meeting of 15 September 2017, and within the limits of the law, whether on or outside the stock exchange, directly or indirectly, by way of purchase or exchange, contribution or any other way of acquisition, the maximum number of Company’s shares permitted by law, without requiring shareholders’ meeting’s approval or resolution. In AY 17/18, the Group bought back 1 750 000 treasury shares for an amount of € 13,6m. In AY 18/19, the total amount of treasury shares decreased by € 7,6m, following the acquisition of the remaining 49 % stake in Greenyard Fresh Direct Belgium NV. As per 31 March 2021, the Group holds 1 363 854 treasury shares, representing 2,6% of the total shares (per 31 March 2020 also 1 363 854 treasury shares, representing 3,1% of the shares).

6.13. Share based compensation

Performance Share Units

On the recommendation of the Remuneration Committee, on 31 May 2017, the Board of Directors approved the Long Incentive (LTI) Performance Share Plan for Greenyard NV (the Plan).The Plan awarded in 2017 (“Series 2017”) and 2018 (“Series 2018”) the Leadership Team and other key persons at Greenyard (the Beneficiaries) performance share units (PSUs) which are optional constructions granting the beneficiaries Greenyard shares. The number of shares granted to beneficiaries depends on total shareholder return (TSR) increase over a 3-year period (the performance period) times a performance factor. The TSR at the end of the performance period is calculated as follows: average share price during the period 15 May – 14 June preceding the end date of the performance period, minus the average share price at the start of the performance period, plus the dividends per share distributed by Greenyard during the performance period. As of AY 19/20, no new Performance Share Units were granted under the existing long-term incentive Performance Share Units Plan (PSU Plan), in view of the implementation of the 2019 Stock Option Plan which replaced the PSU Plan as long-term incentive plan.

Performance condition	Number of shares granted per PSU
TSR increase >=10% per year	2.0
5% per year>= TSR increase < 10% per year	1.5
0% >= TSR increase < 5% per year	1.0
TSR increase < 0%	-

Because of the pay structure of PSUs (including averages of closing prices at the maturity of the structure), the economic value must be valued using numerical techniques. Monte-Carlo simulations using geometric Brownian motion assumptions were used to value the PSUs. The estimation for the relevant implied volatility assumption is based on benchmarking techniques considering the premium of listed equity options with comparable maturities. As a result, volatilities assump- tions used were 21.3% for the Series 2017 and 20.9% for the Series 2018. Using this valuation approach, the value per PSU for the Series 2017 was calculated at € 20.23 and for the series 2018 at € 10.49 per PSU.

Notes to the consolidated financial statements 168 / The number of PSUs can be summarised as follows:

Number of PSU's	31 March 2020	Granted AY 20/21	Forfeited AY 20/21	31 March 2021
Series 2017	8,633	-	-	8,633
Series 2018	56,695	-	-4,101	52,594
TOTAL	65,328	-	-12,734	52,594

Number of PSU's	31 March 2019	Granted AY 19/20	Forfeited AY 19/20	31 March 2020
Series 2017	20,361	-	-11,728	8,633
Series 2018	64,023	-	-7,328	56,695
TOTAL	84,384	-	-19,056	65,328

Based on the value calculated at grant date, the cost of the share-based payments affects the income statement and the equity, spread over the 3-year vesting period. In the event of PSUs being forfeited, the cost for the remainder of the vesting period impacts the income statement in the period when the PSUs are forfeited.

	AY 20/21	AY 19/20
Impact	Income statement	Equity
	€'000	€'000
Series 2017	15	15
Series 2018	201	201
TOTAL	216	216

Stock Options

The Board of Directors approved the 2021 Stock Option Plan, enabling it to grant certain stock options to selected staff members, including Leadership Team members. Stock options under the 2021 Stock Option Plan have been granted at the end of AY 20/21 (i.e. on 19 February 2021). They should be accepted by the beneficiaries within 60 days after the grant date (i.e. before 20 April 2021). Upon the achievement of the vesting conditions under the Plan, the options will gradually vest over a period of four years, ending on 31 March 2025. In total 910,000 options were accepted.

On 14 March 2019, the Board of Directors approved the 2019 Stock Option Plan enabling it to grant certain stock options to selected staff members, consisting of Leadership Team members and key employees. The 2019 Stock Option Plan is applicable as from AY 19/20, upon acceptance by the beneficiaries concerned of the options granted within 60 days after the grant date. Upon the achievement of the vesting conditions under the Plan, the options are definitively acquired (vested) after a vesting period of three years (ending on 31 March of the third calendar year following the year of the grant), i.e. on 31 March 2022.

Number of options	31 March 2020	Granted AY 20/21	Forfeited AY 20/21	31 March 2021
Plan 2019	971,000	-	-16,000	955,000

Number of options	31 March 2019	Granted AY 19/20	Forfeited AY 19/20	31 March 2020
Plan 2019	-	1,000,000	-29,000	971,000

GREENYARD ANNUAL REPORT 2020/2021 / 169

	AY 20/21	AY 19/20
Impact	Income statement	Equity
	€'000	€'000
Plan 2019	352	352

The options granted are recognised at fair value at grant date in accordance with IFRS 2. The fair value of the options is determined using a Black Scholes pricing model.

6.14. Pension and other employee benefit liabilities

Defined contribution plans

For defined contribution plans, the Group pays contributions to pension funds or insurance companies. Once the contributions have been paid, the Group has no further payment obligation. These contributions constitute an expense for the year in which they are due. The contributions paid during AY 20/21 amounted to € 5.1m (AY 19/20 € 5.2m). Since April 2019, the pension plan for Greenyard Prepared Netherlands is considered a defined contribution plan as the plan is now funded through an industry wide multi-employer pension fund BPL (for the agriculture and green sector) and consequently it is not possible, due to the nature of multi-employer funds, to separate the plan assets and liabilities of Greenyard Prepared Netherlands. The past service benefits remain funded through an insurance arrangement and the net-liability related to this plan is zero. In 2020, the defined benefit plan of Greenyard Fresh Netherlands was also transferred into a defined contribution plan, which is now funded through a collective defined contribution arrangement with pension fund PGB. A curtailment gain of € 1.1 million was recorded in AY 20/21. The risk of the company related to both Dutch plans are insignificant and therefore these plans are considered fully insured and are treated as a defined contribution plan.

Belgian defined contribution plans – presented as defined benefit plans

By law, Belgian defined contribution pension plans are subject to minimum guaranteed rates of return and therefore must be considered as defined benefit plans. Pension legislation was amended at the end of 2015 and defines the minimum guaranteed rate of return as a variable percentage linked to government bond yields observed in the market from 1 January 2016 onwards. For contributions paid from 1 January 2016 onwards, the minimum guaranteed rate of return equals 1.75% on employer and employee contributions. The former rates (3.25% on employer contributions and 3.75% on employee contributions) continue to apply to contributions paid up to 31 December 2015. The minimum guaranteed rates of return did not lead to a material net obligation to be accounted for by the Group. The net obligation was estimated using individual information provided by the insurance companies, analysing the difference between the guaranteed rates of return and the return offered by the insurance companies.

Defined benefit plans and other employee benefits

The costs relative to IAS 19 provisions are recorded under personnel costs, whereas the interest component is recognised in finance costs.

Notes to the consolidated financial statements 170 / The Group operates several defined benefit plans: two for employees in Germany and additional plans in Italy, France and Austria. As mentioned above, the defined benefit plan of Greenyard Fresh Netherlands and Prepared Netherlands transferred into defined contribution plans in respectively AY 20/21 and AY 19/20. The actuarial valuation method used is the projected unit credit cost method. This method allocates future accruals to the year in which the benefit is earned. The sum of accruals for prior years is the liability for the present value of defined benefit obligations. The plan assets were valued using the fair value method. For the insured plans, the fair value takes into account the present value of the expected future cash flows. One of the plans in which the Group participates is the Gustav Scipio Stiftung Fund (GUSS), a multi-employer defined-benefit pension fund in Germany. The assets and liabilities attributable to each member of the fund at the end of each accounting year are determined by an independent actuary, as are the contributions due from members. The ratio of contribution obligations is determined within the GUSS articles of association. Contributions are based upon the ratio of unfunded liabilities between members. Unfunded liabilities are determined as the fund liabilities minus assets allocated to members. If, according to the annual actuarial report, the Group has no further obligations to beneficiaries of the plan and ceases to be liable under the GUSS, it will be entitled to a reimbursement payment in cash minus any negative tax impact on the other members. According to the GUSS articles of association, entities are not liable for the liabilities of the other entities within the fund. In the event of a wind-up of the fund, all assets and liabilities will be split between the members in the proportions determined by an independent actuary. Such a wind-up would require the approval from the GUSS Board of Directors and the Bremen State Authority. The Group has several other long-term benefit liabilities (e.g. jubilees) and post-employment benefit liabilities.## Employee benet liabilities

	31 March 2021	31 March 2020
Obligations for dened benet plans	17610	16172
Obligations other employee benets	1521	1799
TOTAL	19131	17971

Dened benets - income statement

	AY 20/21	AY 19/20
Employee benet expense	(574)	1139
Interest expense	270	283
TOTAL	-304	1422

The net dened benet obligation detail and movement can be summarised as follows:

Dened benet - amounts recognised in the statement of nancial position

	31 March 2021	31 March 2020
Present value of dened benet obligation	29527	31648
Fair value of plan assets	-11917	-15475
Net liability	17610	16172

GREENYARD ANNUAL REPORT 2020/2021 / 171

Movement in dened benet obligation

	AY 20/21	AY 19/20
Balance at the end of the preceding period	31648	41909
Current service cost	568	1201
Past service cost	-	-
Interest cost	546	404
Remeasurement:
- Experience gain (-)/loss	-13	-555
- Gain (-)/loss due to demographic assumption changes	-109	-29
- Gain (-)/loss due to nancial assumption changes	3266	-906
Expected plan participant contributions	-	82
Benets paid	-943	-563
Curtailments/plan closures	-6634	-9837
Other events	1240	-
Settlements	-41	-67
Translation dierences	-	9
Balance at the end of the period	29527	31648

Movement in fair value of plan assets

	AY 20/21	AY 19/20
Balance at the end of the preceding period	15475	24753
Interest income	276	121
Actual expenses, taxes and premiums paid	-5	-
Employer contributions	711	1006
Plan participant contributions	82	-
Return on plan assets (excluding interest income)	646	-398
Benets paid from plan assets	-897	-252
Plan closure	-5533	-9837
Other events	1240	-
Translation dierences	-	5
Balance at the end of the period	11917	15475

“Curtailments/plan closures” in AY 20/21 relates to the dened benet plan at Greenyard Fresh Netherlands that became premium free early 2020. In AY 19/20, plan closure referred to the dened benet plan of Greenyard Prepared Netherlands. Both plans are now classied as dened contribution plans (see above). The “Other events” relates to an upgross of both the pension asset and liability of the Belgian dened contribution plans meeting the denition of a dened benet plan, but without impact on the net liability.

The following table summarises the components of the net benet expenses recorded in either directly in equity (other comprehensive income) or in the income statement:

Notes to the consolidated financial statements 172 /

Dened benet - development of accumulated other comprehensive income

	AY 20/21	AY 19/20
Experience gain (-)/loss	-13	-555
Gain (-)/loss due to demographic assumption changes	-109	-29
Gain (-)/loss due to nancial assumption changes	3266	-906
Return on plan assets (excluding interest income)	-646	398
Translation dierences	-	-17
Total movement in other comprehensive income	2497	-1109

Dened benet - expense recognised in the income statement

	AY 20/21	AY 19/20
Current service cost	568	1201
Curtailments	-1101	-
Other events	-41	-67
Interest cost	546	404
Interest income	-276	-121
Actual expenses, taxes and premiums paid	-	5
Expense recognised in income statement	-304	1422

The actuarial assumptions and average duration of the major pension plans are detailed below:

Principal actuarial assumptions

	The Netherlands (1)	Germany	Italy
	31 March 2021	31 March 2020	31 March 2021
Discount rate	-	1,9%	1,0%
General wage increases	-	1,4%	1,8%
Ination	-	1,4%	1,7%
Average duration of pension plans	-	26	13,9

(1) The pension plan of Greenyard Fresh Netherlands was converted into a collective dened contribution plan early 2020.

For the major plans the sensitivity of the dened benet obligation is as follows:

Sensitivity of dened benet obligation - major plans

	31 March 2021	31 March 2020
	DBO at discount rate	Impact increase of 0,50%
The Netherlands (1)	-	-
Germany	15629	-1060
Italy	2564	-161
TOTAL	18192	-1221

(1) The pension plan of Greenyard Fresh Netherlands was converted into a collective dened contribution plan early 2020.

GREENYARD ANNUAL REPORT 2020/2021 / 173

Detail of plan assets

	The Netherlands (1)	Germany
	31 March 2021	31 March 2020
Insurance contracts	-	100%
Equity instruments	-	-
Corporate bonds	-	-
Cash	-	-

(1) The pension plan of Greenyard Fresh Netherlands was converted into a collective dened contribution plan early 2020.

The expected employer contributions to be paid during AY21/22 amount to € 0,7m.

6.15. Provisions

Provisions

	31 March 2021
	Legal claims	Decommissioning	Onerous contracts	Environ-ment	Costs	Restructuring	Tax exposure
	€000	€000	€000	€000	€000	€000	€000
Balance at 31 March 2020	4876	5984	1248	-	279	-	-
Additions	2949	20	155	-	33	-	-
Unused amounts reversed	-277	-	-134	-	-113	-	-
Used during period	-34	5	-102	-	-166	-	-
Translation dierences	-0	-	-	-	2	-	-
Balance at 31 March 2021	7514	6008	1167	-	36	-	-

Analysis of total provisions
Non-current	4301	6008	-0	-	-	-	-
Current	3213	-	1168	-	36	-	-
TOTAL	7515	6008	1168	-	36	-	-

Provisions

	31 March 2020
	Legal claims	Decommissioning	Onerous contracts	Environ-ment	Costs	Restructuring	Tax exposure
	€000	€000	€000	€000	€000	€000	€000
Balance at 31 March 2019	3238	6653	2862	-	10401	3	23158
Additions	1965	28	-	-	222	-	2215
Unused amounts reversed	-309	-641	-999	-	-4424	-	-6373
Used during period	-16	-55	-615	-	-3879	-3	-4567
Translation dierences	-3	-	-	-	-69	-	-72
Transfer to lease liabilities	-	-	-	-	-1972	-	-1972
Balance at 31 March 2020	4876	5984	1248	-	279	-	12389

Analysis of total provisions
Non-current	2020	5984	32	-	113	-	8149
Current	2855	-	1217	-	167	-	4239
TOTAL	4876	5984	1248	-	280	-	12389

Notes to the consolidated financial statements 174 /

The increase in provisions of € 2,3m is mainly attributable to additions in the legal claims (€ 2,9m). This increase is oset by reversals of amounts which were unused (€ -0,5m) and used provisions (€ -0,3m). For further information concerning pending disputes, refer to note 7.2. Main Disputes.

6.16. Interest-bearing loans

Interest-bearing loans at 31 March 2021

	Due within 1 year	Due between 1 and 5 years	Due after 5 years	TOTAL
Convertible bond	122531	-	-	122531
Term loan	7500	181106	-	188606
Revolving credit facility	-	98791	-	98791
Other bank loans	191	1763	-	1955
Bank overdrafts	1909	-	-	1909
TOTAL	132131	281661	-	413792

Interest-bearing loans at 31 March 2021

	Fixed	Floating	TOTAL
Total	124440	289352	413792

Interest-bearing loans at 31 March 2021

	Secured	Non-secured	TOTAL
Total	287397	126394	413792

Interest-bearing loans at 31 March 2020

	Due within 1 year	Due between 1 and 5 years	Due after 5 years	TOTAL
Convertible bond	-	119327	-	119327
Term loan	12000	113352	-	125352
Revolving credit facility	64816	234024	-	298839
Other bank loans	-	5511	-	5511
Bank overdrafts	1077	-	-	1077
TOTAL	77893	472214	-	550107

Interest-bearing loans at 31 March 2020

	Fixed	Floating	TOTAL
Total	120404	429702	550107

Interest-bearing loans at 31 March 2020

	Secured	Non-secured	TOTAL
Total	430779	119327	550107

GREENYARD ANNUAL REPORT 2020/2021 / 175

Bank loans

By the end of the nancial year AY 20/21, Greenyard has renanced its nancing through an amendment and restatement of its 2016 Facilities Agreement (as amended and modied from time to time) into a new Amended and Restated Facilities Agreement for the amount of € 467,5m. The new Amended and Restated Facilities Agreement was signed on 29 March 2021. The banks participating in the 2016 Facilities Agreement have continued their support and credit lines towards Greenyard. The Facilities Agreement now comprises a € 190,0m term loan, and a € 152,5m revolving credit facility, the latter including a € 15,0m guarantee line. In addition, it was agreed that a second committed term loan of € 125,0m is available as of December 2021, intended to repay the current outstanding € 125,0m convertible bond. The new Facilities Agreement matures on 31 March 2024 (to the extent the extension option is not exercised for the continuation in the subsequent year). The Flemish Government, through its investment vehicle Gigarant, has guaran- teed € 62,5m of the total loans. Consequently, Greenyard secured sucient nancial means to nance its working capital and investment needs in line with its business plan. Also payment of instalments on the term loan (as from March 2022) and the repayment of the convertible bond in December 2021 have been foreseen. Thanks to its strong operational transformation, signicant revenue growth and the new equity, Greenyard managed to decrease its leverage ratio below 3,0x, actually 2,9x end March 2021, more than one year faster than the intention expressed in the semi-annual report. Moreover, it has sharpened its deleveraging ambition to evolve towards a sustainable leverage between 2,0 and 2,5x to be achieved in the coming two years.Considering a) the strengthening of the group’s equity and an extension of the credit lines for a period of 3 years b) an assessment of the cash flow forecast for a period not less than 12 months c) taking into account the risks and uncertainties as described in the related paragraph of this annual report, the group has prepared its financial statements for the financial year ending on 31 March 2021 on a going concern basis and does not consider any more separate uncertainties or key challenges to be mentioned and evaluated. The cash accordion line of € 85,5m granted under the previous Facilities Agreement has been fully repaid throughout the year and has been cancelled. The term loans bear / will bear a margin between 1,5% and 3,25%, based on a leverage grid. Installments are made on a half yearly basis, starting on 31 March 2022 for an aggregate (both term loans) amount of € 15,0m. The revolving credit facility bears a margin of between 1,25% and 3,00%, based on a leverage grid. Short-term bank debt varies in function of cash generated by operations, working capital needs and factoring drawdown. The withdrawn amount on the revolving credit facility as at 31 March 2021 amounted to € 98,8m. The fee for the Gigarant guarantee is included in the term loan and revolving credit facilties’ margins. The Group also avails of bilateral facilities with individual financial institutions outside of the syndicate banks for an amount of € 13,9m, € 1,9m of which was used as a bank overdraft at 31 March 2021. All interest-bearing bank liabilities at 31 March 2021 are expressed in euros and concluded at market conditions. Following contractual agreements with some financial institutions, most overdrafts are presented net of cash. For further information on bank covenants and the rights and commitments not included in the financial statement, refer to note 7.3. Off-balance sheet commitments. We note that in our analysis of the accounting treatment regarding the debt refinancing, we considered the refinancing as a whole and not as separate loans as such. Although the refinancing of Greenyard qualifies as a debt modification (i.e. the same lenders), the change is considered substantial due to the fact that the structure of the loans changed significantly and a change was made to the covenants and interest basis. Consequently, the existing debt was derecognised and the impact was directly recorded in P&L (impact ad € 0,5m). The bank loans are recorded at amortised cost, net of transaction costs.

Notes to the consolidated financial statements

Reconciliation nominal to carrying amount

	Term loan €'000	Revolving credit facility €'000	Other bank loans €'000	TOTAL bank loans at 31 March 2021 €'000
Nominal amount	190,000	99,800	3,863	293,663
Transaction costs at inception	-1,394	-1,009	-	-2,403
Amortisation transaction costs	-	-	-	-
Carrying amount	188,606	98,791	3,863	291,261

	Term loan €'000	Revolving credit facility €'000	Other bank loans €'000	TOTAL bank loans at 31 March 2020 €'000
Nominal amount	126,000	300,020	6,588	432,608
Transaction costs at inception	-1,872	-2,807	-	-4,679
Amortisation transaction costs	1,222	1,627	-	2,849
Carrying amount	125,352	298,839	6,588	430,779

Bond loans

In December 2016, the Group issued a convertible bond with a nominal amount of € 125,0m, a gross coupon of 3,75% fixed interest and due in December 2021. The terms and conditions allowed Greenyard to redeem the convertible bonds in cash, new and/or treasury ordinary shares or a combination thereof at choice upon conversion of the convertible bonds by the bondholders. In November 2017, Greenyard gave notice to the bondholders it would unilaterally, irrevocably and unconditionally waive its right to make a Cash Alternative Election from the date of the notice. At 31 March 2021, no conversion of convertible bonds into shares occurred. The convertible bond is considered as a hybrid debt instrument containing a host contract and an embedded derivative. The host contract, being the obligation to make scheduled repayments of interests and principal on maturity, is considered as a financial liability presented within the interest-bearing loans. The initial carrying amount of the host contract was determined as the residual amount between the fair value of the convertible bond and the fair value of the embedded derivative, net of transaction costs. Subsequently, the host contract is measured at amortised cost, using the effective interest method allowing for the transaction costs that are included in the effective interest rate over the expected life of the debt.

Reconciliation nominal to carrying amount bond loans

	31 March 2021 €'000	31 March 2020 €'000
Nominal amount	125,000	125,000
Conversion option at inception	-12,059	-12,059
Amortisation conversion option	10,051	7,446
Transaction costs at inception	-2,771	-2,771
Amortisation transaction costs	2,310	1,711
Carrying amount	122,531	119,327

GREENYARD ANNUAL REPORT 2020/2021 / 177

6.17. Trade and other payables

Trade and other payables	31 March 2021 €'000	31 March 2020 €'000
Other payables	3,653	2,228
Non-current	3,653	2,228
Trade payables	649,628	592,821
Tax	36,044	23,150
Remuneration and social security	38,755	37,822
Accrued charges	29,025	28,435
Other	16,139	16,516
Other payables	119,964	105,923
Current	769,591	698,745

The significant increase in trade and other payables is apart from the business growth thanks to the strengthening of the financial situation of Greenyard and active working capital management. The accrued charges include accrued interest charges for an amount of €- 4,3m at 31 March 2021 (31 March 2020 € - 8,6m). The decrease in accrued interest charges is mainly explained by the decreasing leverage ratio.

The table below gives an overview of the most important current and non-current trade and other payables in foreign currency.

Trade and other payables: foreign currencies	31 March 2021 €'000	31 March 2020 €'000
GBP	37,445	33,358
USD	13,568	10,320
PLN	13,836	9,556
CZK	13,762	8,153
Other	2,608	9,125

Notes to the consolidated financial statements

178 /

6.18. Risk management policy

The Group's activities are exposed to a variety of financial risks: market risk (foreign exchange risk and interest rate risk), credit risk, and liquidity risk. The Group's overall risk management programme seeks to minimise potential adverse effects of the financial risks on the Group's financial performance. In order to manage certain market risks, the Group uses derivative financial instruments. The Board of Directors has overall responsibility for the establishment and management of the Group’s risk management, including financial risk management. The Audit Committee is responsible for developing and monitoring the Group’s risk management policies. Internal audit, under the direction of the Audit Committee, undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee. The daily financial risk management is carried out by Corporate Treasury under the corporate treasury policies. Corporate Treasury identifies, evaluates and hedges financial risks in close co-operation with the Group's operating units.

6.18.1. Market risk

Market risk is the risk of changes in market parameters, such as foreign exchange rates and interest rates, which can influence the Group’s performance. The objective is to control and manage this market risk within the limits of acceptable parameters, while optimising the return earned by the Group. In the normal course of business, the Group uses financial derivatives to manage the market risks. All these transactions are carried out in line with corporate treasury policy. It is Group policy not to undertake speculative transactions.

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures. The currency exposure is partly linked to the Group’s operations in the UK, the Czech Republic, the US and Poland and to non-euro transactions in eurozone entities. Foreign exchange exposure arises from future commercial transactions and recognised assets and liabilities. Foreign exchange risk arises when future commercial transactions are denominated in a currency that is not the entity's functional currency. The receivables and liabilities in foreign currency can give rise to a realised gain or loss depending on whether the daily exchange rate at the time of receipt or payment differs from the exchange rate at which the receivable or payable is recorded. Management has set up guidelines to require Group entities to manage their foreign exchange risk with regard to their local currency. Subsidiaries are required to hedge their entire foreign exchange risk exposure with Corporate Treasury. To manage its foreign exchange risk arising from future commercial transactions, the Group uses foreign exchange forward contracts. Corporate Treasury's foreign exchange risk management practice applies the following hedging ratios per currency pair:

Period	Hedging ratios
Up to 3 months	100%-75%
Over 3 months up to 6 months	75%-50%
Over 6 months and up to 1 year	50%-0%

If required for commercial reasons, a cash flow can be hedged at 100%.

GREENYARD ANNUAL REPORT 2020/2021 / 179

Foreign exchange sensitivity

The sensitivity analysis is applied to third-party and intercompany loans and deposits and trade and other receivables and liabilities, in so far as the foreign currency differs from the functional currency of the Group. A 10% fluctuation in foreign exchange rates is taken into account when calculating the foreign exchange sensitivity below. These fluctuations would affect the profit before income tax. The sensitivity analysis is also applied on the outstanding forward agreements for a 10% fluctuation in the foreign exchange rate.These uctuations would aect equity. The analysis below reects the sensitivity for US dollar and British pound. The exposure to foreign currency changes for all other currencies is not material. A positive sign represents a gain; a negative sign represents a loss.

Foreign exchange sensitivity

	31 March 2021		31 March 2020
	Eect on prot	Eect on equity	Eect on prot	Eect on equity
	before income tax	before income tax	before income tax	before income tax
	€'000	€'000	€'000	€'000
GBP +10%	2225	3148	-227	1200
GBP -10%	-2719	-3847	278	-1466
USD +10%	1105	-1880	-1042	-2177
USD -10%	-1351	2298	1273	3020

The sensitivity is based on a net receivable position per 31 March 2021 of € -24,5m for GBP (31 March 2020 € 2,5m) and € -12,2m for USD (31 March 2020 € 11,5m).

Interest rate risk

Interest rate risk is the risk that the fair value or future cash ows of a nancial instrument will uctuate because of changes in market interest rates. The oating interest rate debt of the Group arises mainly from its Facilities Agreement and the nancing retrieved from the multi-country factoring programme. The Group analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration renewal of existing positions, alternative nancing and hedging. Based on these scenarios, the Group calculates the impact on prot and loss of a dened interest rate shift. The scenarios are run only for liabilities that represent the major interest- bearing positions. The Group manages its interest rate risk by having a balanced portfolio of xed and variable rate interest-bearing loans. The Group kept 30,1% of its interest rate exposure at xed rates of interest. For the nancing facilities with oating interest rates, given the current low interest rate environment and maturity of the nancing in December 2021, substantially no nancial instruments were used to hedge the risk of interest rate uctuations.

Notes to the consolidated financial statements 180 / Financial liabilities at amortised cost

	31 March 2021	Average eective interest rate	31 March 2020	Average eective interest rate
	€'000	%	€'000	%
Floating interest rate EUR	289352	2,82%	429702	3,57%
Fixed interest rate EUR	124440	3,75%	120404	3,75%
TOTAL	413792		550107

Despite the hedging strategy on the basis of nancial derivatives, it cannot be excluded that the Group’s future net result will be subject to interest rate uctuations.

Interest rate sensitivity

	Nominal value at 31 March 2021	Impact 20 bps increase of interest rate	Impact 20 bps decrease of interest rate	Nominal value at 31 March 2020	Impact 20 bps increase of interest rate	Impact 20 bps decrease of interest rate
	€'000	€'000	€'000	€'000	€'000	€'000
Bank loans	293663	49	-49	432608	91	-91
IRS	369	1	-1	462	2	-2

Interest rate risk: maturity of nancial assets and liabilities at 31 March 2021

	Average eective Interest Rate	Total carry- ing value	< 1 year	1-5 year	> 5 year
	%	€'000	€'000	€'000	€'000
Assets and liabilities with xed interest rates
Bond loans	3,75%	122531	122531	-	-
Lease liabilities	4,17%	235445	28496	81213	125736
Assets and liabilities with oating interest rates
Cash and cash equivalents	-	81250	81250	-	-
Bank loans	2,82%	289352	7691	281661	-
Bank overdrafts	2,86%	1909	1909	-	-

GREENYARD ANNUAL REPORT 2020/2021 / 181

Remaining terms of nancial assets and liabilities at 31 March 2020

	Average eective Interest Rate	Total carry- ing value	< 1 year	1-5 year	> 5 year
	%	€'000	€'000	€'000	€'000
Assets and liabilities with xed interest rates
Bond loans	3,75%	119327	-	119327
Lease liabilities	4,61%	235191	26409	87575	121207
Assets and liabilities with oating interest rates
Cash and cash equivalents	-	132709	132709	-	-
Bank loans	3,57%	429702	76816	352887	-
Bank overdrafts	3,21%	1077	1077	-	-

All nancial assets and liabilities are classied at amortised cost at 31 March 2021 and 31 March 2020.

Foreign exchange risk and interest rate risk: derivative nancial instruments

Outstanding derivatives: nominal amounts at matu- rity date

	31 March 2021			31 March 2020
	Due within 1 year	Due between 1 and 5 years	Due after 5 years	Due within 1 year	Due between 1 and 5 years	Due after 5 years
	€'000	€'000	€'000	€'000	€'000	€'000
Foreign exchange risk
Forward agreements	225237	-	-	198122	-	-
Interest rate risk
IRS	-	369	-	-	462	-
TOTAL	225237	369	-	198122	462	-

Derivatives are reported at fair value and hedge accounting is applied for all derivatives. For nancial derivatives, no osetting has been applied. The forward agreements expire on 14 March 2022 at the latest. The maturity date of the IRS is no later than 21 November 2024. The fair value of derivatives is calculated using pricing models taking into account current market rates. For IRS, this information is provided by the Group’s nancial institutions with which the nancial instruments have been concluded. For the forward agreements, Corporate Treasury calculates the fair value.

Notes to the consolidated financial statements 182 / Fair value by type of derivative

31 March 2021

	Assets	Liabilities	Net Position	Movement through income statement	Movement through equity
	€ '000	€ '000	€ '000	€ '000	€ '000
Foreign exchange risk
Forward agreements	519	2408	-1889	-	-3191
Interest rate risk
IRS	-	-	-	-	-
TOTAL	519	2408	-1889	-	-3191

31 March 2020

	Assets	Liabilities	Net Position	Movement through income state- ment	Movement through equity
	€ '000	€ '000	€ '000	€ '000	€ '000
Foreign exchange risk
Forward agreements	2125	823	1302	1	1791
Interest rate risk
IRS	-	37	-37	11	26
TOTAL	2125	860	1265	12	1817

6.18.2. Credit risk

Credit risk is the risk of nancial loss to the Group through a customer or a nancial counterparty being unable to full its contractual obligations. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its nancing activities, including deposits with banks and nancial institutions, foreign exchange transactions and other nancial instruments. The Group’s exposure to credit risk on operating activities is inuenced mainly by the individual characteristics of each customer. To protect itself against customer defaults and bankruptcies, the Group uses the services of international credit insurance companies, and also applies internal customer credit limits. The Group’s credit policy does not identify any material credit risk exposure on its customers. Receivables for the ten largest debtors are credit insured and the three largest customers represent 53,0% of sales, as disclosed in note 4.1. Information about major customers. Please also refer to note 3.2. Key sources of estimation uncertainty, where the impact of COVID-19 on the outstanding receivables has been addressed and the potential impact on AY 20/21 is considered to be limited. Non-credit insured receivables are reviewed for impairment risk, based on the ageing of the receivables. Credit insurance is mandatory for all trade receivables sold to the factor company. Certain entities benet also from credit insurance although their receivables are not factored. Credit risk exposure on non-credit insured customers is continuously monitored by Corporate Treasury and any customer whose credit limit exceeds a predened amount, is subject to a credit check. The credit check and customer rating are

GREENYARD ANNUAL REPORT 2020/2021 / 183

based upon the customers’ shareholders and group structure, the balance sheet and prot and loss accounts of the last two calendar years and related audit report and the weighted average days paid late. An internal credit limit is mandatory for non-credit insured customers before conrming the order to the customer and before shipping the goods. Approval of the internal credit limits is subject to the Greenyard Authority Matrix as approved by the Audit Committee in December 2019. Impairment losses are recorded on an individual basis. The Group also makes advances to key suppliers, generally to secure produce in key categories. Advances made are generally interest bearing and recovered through deduction from payments made in respect of produce delivered by the counterparty. Financial investments are only allowed if the counterparties meet the minimum acceptable credit ratings at the time of initiation of the investment without exceeding a maximum concentration per counterparty. Investment counterparties must be of Western government credit (US, Canada, EC-countries) with banks and issuers with a credit rating of BBB (Standard & Poor’s), Baa (Moody’s Investor Service) or better. Credit risk covers only the instrument category of ‘loans and receivables’ (L&R). For the other instrument categories, the credit risk is limited or non-existent, given that counterparties are banks with a high creditworthiness.

6.18.3. Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its nancial obligations on their due date. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sucient liquidity to meet its liabilities when due, under both normal and stress conditions without incurring unacceptable losses or risking damage to its reputation. The Group monitors its risk of a shortage of funds using a cash positioning tool. Short-term cash ow forecasting is performed in the operating entities of the Group and aggregated by Corporate Treasury. Corporate Treasury monitors forecasts of the Group's liquidity requirements to ensure it has sucient cash to meet operational needs while maintaining sucient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.Most of the subsidiaries are part of a cash pool scheme, as such funds are collected on a daily basis on the bank accounts held by Corporate Treasury. For subsidiaries not part of a cash pool scheme, surplus cash above balances required for working capital purposes are transferred to Corporate Treasury. The Group’s policy is to have adequate facilities available at all times to cover unanticipated financing requirements. The Group has approval of committed term and revolving borrowings of up to € 467.5m per 31 March 2021 (€ 463.6m per 31 March 2020). At 31 March 2021, the Group has € 53.7m of unused available lines under its Facilities Agreement (31 March 2020 € 37.6m). The total uncommitted bilateral facilities for an amount of € 13.9m were unused for € 10.0m at 31 March 2021 (31 March 2020 € 12.8m). For a discussion of the existing lines and their terms and conditions, see note 6.16. Interest-bearing loans. The table below categorises the Group's financial liabilities into relevant maturity groupings based on the remaining period at the reporting date to the contractual maturity date. The undiscounted cash flows reflect net interest payments and principal repayments. Derivative financial assets and liabilities are included in the analysis for the residual cash flows.

Notes to the consolidated financial statements

184 / Remaining terms of financial debt

Contractually agreed undiscounted cash flows at 31 March 2021

	Due within 1 year	Due between 1 and 5 years	Due after 5 year	TOTAL
€'000	€'000	€'000	€'000	€'000
Bank loans	17,513	584,271	-	601,784
Bond loans	129,688	-	-	129,688
Lease liabilities	37,514	121,849	134,261	293,624
Trade and other payables	680,908	3,653	-	684,562
Non-derivatives	865,623	709,773	134,261	1,709,657
IRS	5	14	-	18
Forward agreements	2,114	-15	-	2,099
Derivatives	2,119	-1	-	2,118
TOTAL	867,742	709,772	134,261	1,711,775

Contractually agreed undiscounted cash flows at 31 March 2020

	Due within 1 year	Due between 1 and 5 years	Due after 5 year	TOTAL
€'000	€'000	€'000	€'000	€'000
Bank loans	82,861	385,564	-	468,425
Bond loans	4,700	127,350	-	132,050
Lease liabilities	36,720	117,193	147,355	301,268
Trade and other payables	627,397	2,228	-	629,624
Non-derivatives	762,054	632,335	147,355	1,531,367
IRS	-	462	-	462
Forward agreements	198,122	-	-	198,122
Derivatives	198,122	462	-	198,584
TOTAL	960,176	632,797	147,355	1,729,951

All instruments held at the reporting date and for which payments had been contractually agreed are included. Forecasted data relating to future, new liabilities are not included. Amounts in foreign currencies have been translated at the closing rate. The variable interest payments arising from financial instruments were calculated using the applicable forward interest rates.

GREENYARD ANNUAL REPORT 2020/2021 / 185

6.18.4. Financial assets and liabilities – fair value

Derivative financial instruments are measured at fair value at inception and at each reporting date, with the movement recognised in the income statement unless they are designated as cash flow hedges. Where instruments are classified as cash flow hedges, they are accounted for under hedge accounting rules with gains or losses arising on the effective portion of the derivative instrument recognised in the cash flow hedge reserve, as a separate component of equity. Gains or losses on any ineffective portion of the derivative are recognised in the income statement. When the hedged transaction matures, the related gains or losses in the cash flow hedge reserve are transferred to the income statement. The net carrying amounts and respective fair values are analysed for the various classes of financial assets and liabilities. The table below only includes the financial assets and liabilities for which the fair value differs from the carrying amount. For all other financial assets and liabilities, the Group considers the carrying amounts to approximate the fair values. The fair value of bank loans is calculated as the present value of the future cash flows (level 2 input). The fair value of the host component of the convertible bond is calculated as the present value of the future cash flows taking into account the reference swap rate and credit spread (level 3 input).

Financial assets and liabilities by class and category at 31 March 2021

	Net carrying amount	Fair value
€'000	€'000	€'000
Host component of the convertible bond	122,531	125,150
Bank loans	289,352	294,273

Financial assets and liabilities by class and category at 31 March 2020

	Net carrrying amount	Fair value
€'000	€'000	€'000
Host component of the convertible bond	119,327	86,875
Bank loans	429,702	431,872

6.18.5. Capital structure

To maintain a strong capital base and sustain market confidence, the Board of Directors regularly reviews and monitors the Group’s capital structure. This involves evaluating dividend policy and return on capital (based on shareholders’ equity). The Board of Directors is authorised to acquire own shares up to a legal maximum of 20%. On 31 August 2017, the Group completed a share buyback programme started in March 2017 with a total of 1,750,000 ordinary shares repurchased at a total cost of € 30.0m, including associated costs. These shares are held as treasury shares unless reissued or cancelled. Currently, the Group still holds 1,363,854 treasury shares. The Group also constantly seeks to optimise its capital structure (balance between debts and equity) to ensure that entities in the Group will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt to equity ratio. The Group is determined to reduce its leverage ratio to a level structurally below 2.5x over the coming periods. The Group targets a flexible structure in terms of periodicity and credit type, which enables it to seize potential opportunities. Note 6.12. Issued capital, share premium and other capital instruments and note 6.16. Interest-bearing loans provide more detail on equity and debt components. The Group has leverage ratio covenants as detailed in note 7.3. Off-balance sheet commitments.

Notes to the consolidated financial statements

186 / 6.18.6. Fair value hierarchy included in the statement of financial position

Assets and liabilities at fair value

| | 31 March 2021 | 31 March 2020 |
| :---------------------- | :----------------------- | :----------------------- | :----------------------- | :----------------------- |
| | Level 1 | Level 2 | Level 3 | TOTAL | Level 1 | Level 2 | Level 3 | TOTAL |
| €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 | €'000 |
| Financial assets at fair value | | | | | | | | |
| Derivatives - Forward agreements, IRS and equity investments | - | 519 | 5 | 524 | - | 2,125 | 106 | 2,232 |
| Total | - | 519 | 5 | 524 | - | 2,125 | 106 | 2,232 |
| Financial liabilities at fair value | | | | | | | | |
| Derivatives - Forward agreements and IRS | - | 2,408 | - | 2,408 | - | 860 | - | 860 |
| Total | - | 2,408 | - | 2,408 | - | 860 | - | 860 |

The table above analyses the Group’s financial instruments of initially measured at fair value, sorted by valuation method. The different levels have been defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: fair value measurement: the fair values of other financial assets and liabilities are determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes for similar instruments. This mainly relates to derivative financial instruments.
- Forward agreements are measured using quoted forward exchange rates and yield curves derived from quoted interest rates with matching maturities.
- Interest rate swaps are measured at the present value of future cash flows estimated and discounted using the applicable yield curves derived from quoted interest rates.
Level 3: fair value measurement: the fair value of the remaining financial assets and liabilities is derived from valuation techniques which include inputs that are not based on observable market data.

During the past financial year, there were no transfers of financial assets or liabilities between levels 1 and 2.

GREENYARD ANNUAL REPORT 2020/2021 / 187

7. Other elements

7.1. Subsidiaries, associates, joint ventures and investments recorded at cost

The parent company of the Group is Greenyard NV, Sint-Katelijne-Waver, Belgium. The subsidiaries, associates, joint ventures and investments recorded at cost of the Group as per 31 March 2021 are presented below.

Long Fresh

Long Fresh: Subsidiaries	Country of incorporation	Consolidation method	% of interest 31 March 2021	% of interest 31 March 2020
Greenyard Frozen Langemark NV	Belgium	Full	100%	100%
Greenyard Frozen Belgium NV	Belgium	Full	100%	100%
Pinguin Langemark NV	Belgium	Full	100%	100%
Greenyard Prepared Investments BE NV	Belgium	Full	100%	100%
Greenyard Prepared Belgium NV	Belgium	Full	100%	100%
BND CV (4)	Belgium	Full	25%	25%
Greenyard Frozen Brazil Ltda	Brazil	Full	100%	100%
Greenyard Frozen Investments FR (Moréac) SAS	France	Full	66%	66%
Greenyard Frozen Investments FR (Comines) SAS	France	Full	66%	66%
Greenyard Frozen Comines SAS	France	Full	100%	100%
Greenyard Frozen France SAS	France	Full	100%	100%
Greenyard Frozen Holding FR SAS	France	Full	100%	100%
Greenyard Frozen Investments PL Sp. Z o.o.	Poland	Full	100%	100%
Greenyard Frozen Poland Sp. Z o.o.	Poland	Full	100%	100%
LiliCo Hungary Kft. (1)	Hungary	Full	100%	100%
Greenyard Frozen UK Ltd.	UK	Full	100%	100%
Greenyard Prepared UK Ltd.	UK	Full	100%	100%
Greenyard Prepared Netherlands B.V.	Netherlands	Full	100%	100%

Fresh: Subsidiaries

Subsidiaries	Country of incorporation	Consolidation method	% of interest 31 March 2021	% of interest 31 March 2020
Bakker Belgium NV	Belgium	Full	100%	100%
Greenyard Fresh NV	Belgium	Full	100%	100%
Greenyard Fresh Belgium NV	Belgium	Full	100%	100%
Greenyard Fresh Direct Belgium NV	Belgium	Full	100%	100%
Greenyard Transport Belgium NV	Belgium	Full	100%	100%
Greenyard Logistics Belgium NV	Belgium	Full	100%	100%
Lunasoft BV (1)	Belgium	Full	-	100%
Greenyard Fresh Holding NL B.V.	The Netherlands	Full	100%	100%
Greenyard Fresh Netherlands B.V.	The Netherlands	Full	100%	100%
Greenyard Fresh Investments NL B.V. (1)	The Netherlands	Full	100%	100%
Bakker Barendrecht B.V.	The Netherlands	Full	100%	100%
Bakker Barendrecht Transport B.V.	The Netherlands	Full	100%	100%
Holland Crop B.V.	The Netherlands	Full	100%	100%
Bakker Centrale Inkoop B.V.	The Netherlands	Full	100%	100%
Greenyard Flowers Netherlands B.V.	The Netherlands	Full	100%	100%
Greenyard Supply Chain Services B.V.	The Netherlands	Full	100%	100%
Greenyard Fresh France SAS	France	Full	100%	100%
Agrisol SAS (2)	France	Full	-	100%
Delta Stocks Sarl	France	Full	100%	100%
Greenyard Fresh Beteiligungs GmbH	Germany	Full	100%	100%
Greenyard Fresh Holding DE GmbH & Co KG	Germany	Full	100%	100%
Greenyard Fresh Trade International GmbH	Germany	Full	100%	100%
Greenyard Fresh Germany GmbH	Germany	Full	100%	100%
Fresh Solutions GmbH	Germany	Full	100%	100%
Greenyard Fresh Services GmbH	Germany	Full	100%	100%
Greenyard Fresh Austria GmbH	Austria	Full	100%	100%
Greenyard Fresh Spain SA	Spain	Full	100%	100%
Greenyard Logistics Portugal - logistica e transportes SA (3)	Portugal	Full	-	100%
Mor K.B. International Ltd	Israel	Full	65%	65%
Amore Srl	Italy	Full	46%	46%
Biofarm Srl	Italy	Full	100%	100%
Greenyard Fresh Italy Srl	Italy	Full	100%	100%
Bardsley Fruit Enterprises Ltd.	UK	Full	50%	50%
Greenyard Fresh UK Ltd.	UK	Full	100%	100%
Pastari International Ltd (1)	Turkey	Full	60%	60%
Greenyard Logistics Poland Sp. Z o.o.	Poland	Full	100%	100%
Bakker Trans sro	Czech Republic	Full	100%	100%
Bakker sro	Czech Republic	Full	100%	100%
Greenyard USA Co	US	Full	100%	100%
Seald Sweet LLC	US	Full	90%	90%
Greenyard Logistics USA Inc	US	Full	100%	100%
Mor U.S.A. Inc	US	Full	65%	65%
DFM Brazil Ltda	Brazil	Full	100%	100%
Greenyard Fresh Brazil Ltda	Brazil	Full	100%	100%
Greenyard Fresh Peru SAC	Peru	Full	100%	100%
Greenyard Fresh Chile Ltda	Chili	Full	100%	100%
Greenyard Fresh Colombia SAS	Colombia	Full	100%	100%
M.I.S.A. Int. (Pty) Ltd	South Africa	Full	65%	65%

Fresh: Joint ventures and associates

Joint ventures and associates	Country of incorporation	Consolidation method	% of interest 31 March 2021	% of interest 31 March 2020
Grupo Yes Procurement Marketing SL	Spain	Equity method	50%	50%
Logidis Sistem SL	Spain	Equity method	50%	50%
Mahindra Greenyard Private Ltd. (3)	India	Equity method	-	40%
Agritalia Srl	Italy	Equity method	33%	33%

Fresh: Investments recorded at cost

Investments recorded at cost	Country of incorporation	Consolidation method	% of interest 31 March 2021	% of interest 31 March 2020
Pison Srl (1)	Italy	Not consolidated	25%	25%
Campoverde Spa Agricola	Italy	Not consolidated	2%	2%
Carpe Naturam Soc. Consortile ARL	Italy	Not consolidated	9%	9%
Kiwi Passion S.r.l. Consorzio	Italy	Not consolidated	7%	7%

(1) Liquidated or in liquidation
(2) Merger
(3) Divestment
(4) Greenyard has ‘de facto’ control based on certain statements in the articles of association: on the one hand they have more rights and blocking possibilites and on the other hand they are always involved in the representation in and out of court of the CV.

Signicant restrictions

There are no signicant restrictions (e.g. resulting from borrowing arrangements, regulatory requirements or contractual arrangements between investors with signicant inuence over a subsidiary) on the ability of subsidiaries to transfer funds to their parent company in the form of cash dividends, or to repay loans or advances made by the parent company, except for those mentioned in note 7.3. O-balance sheet commitments, with the approval of the majority shareholder. In addition, there are no signicant restrictions on the Company’s or its subsidiaries’ ability to access or use the assets and settle the liabilities of the Group, except for those mentioned in note 7.3. O-balance sheet commitments.

Changes in the consolidation scope

The following major changed occurred in the consolidation scope during AY 20/21:
• In June 2020, Greenyard nalised the sale of Greenyard Logistics Portugal for a net consideration of € 5,00m and realised a gain of €3,0m.
• In March 2021, the stake in Mahindra was sold without any gain or loss resulting from this sale.

During AY 19/20 the following changes were noted:
• In May 2019, Greenyard reached an agreement to increase the investment in Bardsley Fruit Enterprises (formerly known as Bardsley England). Greenyard now owns 50,1% of the shares and has control over the entity. Consequently, the consolidation method changed from equity to full consolidation method.
• Greenyard acquired the remaining 50% of the shares in Lunasoft in May 2019. Consequently, the consolidation method changed from equity to full consolidation method.
• On 14 October 2019 the Group announced the divestment of Greenyard Flowers UK to Yellow Holdings Ltd. The total consideration amounts to € 9,7m, consisting of € 5,7m for the shares and € 4,0m for the debt settlement. Cumulative translation adjustments for an amount of € -1,4m were recycled to the income statement ad a loss on disposal of € 22,5m was recognised.

7.2. Main disputes

To the extent the expected outcome of the disputes mentioned below would result in a potential nancial impact for Greenyard, a provision has been recorded or an existing one has been revised.

Tax dispute

Greenyard Frozen Brazil Ltda. imports frozen fruit and vegetables from Europe for which the company has received an exemption from paying ICMS (tax on circulation of goods and services) from the state of São Paulo. Frozen fruit and vegetables are considered basic and natural products which are generally exempt from ICMS. However, local tax authorities do not consider frozen fruit and vegetables to be natural products and claim administrative penalties for such imports. This is general practice in the frozen vegetables business. The total litigations of Greenyard in this respect amount to R$ 22,5m (€ 6,1m) relating to the period 2010-2016 for which no amounts were paid nor accrued. A nal favourable court decision was pronounced by the Supreme Court on 17 August 2017. Procedures before the courts of rst instance to execute the Supreme Court judgement and cancel the total amount of nes imposed by the local tax authorities are pending.

Banana license dispute

In 2002, Greenyard Fresh Italy S.r.l. (formerly Univeg Trade Italia S.r.l. and previously Bocchi Import Italia S.r.l.) received a claim relating to allegedly unpaid customs duties on banana imports between October 1998 and November 1999. The tax authorities claimed that false licenses to trade bananas were used by the company. It appears that the company purchased the false licenses in good faith. The Greek tax authorities claim a payment of € 2,8m (including interest). However, because of new legislation which has entered into force, there is likely to be a positive outcome in favour of the company. Legal proceedings before the Greek High Court are pending.

Dispute with a large banana supplier

Greenyard Fresh Handelsgesellschaft GmbH, which was merged into Greenyard Fresh Germany GmbH, entered into a banana ripening and distribution agreement in 2013 with a large banana supplier, who unilaterally decided to partly deviate from this agreement, whereas Greenyard continued to comply with it. A writ of summons has been led against Greenyard Fresh Germany GmbH and Greenyard NV in the amount of € 6,0m, against which an objection has been led. The legal proceedings are pending in rst instance before the commercial court.

Outstanding receivables towards Polish customer

Greenyard Logistics Poland is taking part as a creditor in the restructuring proceedings initiated before the Polish court by a Polish customer which owes outstanding receivables of PLN 5,7m (or approximately € 1,3m) in total to the company.

Dispute with a Central American banana supplier

Greenyard’s German subsidiary Greenyard Fresh Germany GmbH entered into a supply agreement with a supplier for the sourcing of bananas in Central America. The sea freight of the bananas was organised by Greenyard Supply Chain Services B.V. at the expense of the supplier. In the course of 2018, Greenyard Fresh Germany GmbH brought claims against the supplier as a result of certain quality issues. During the same period, there were also arrears on the part of the supplier with regard to the freight costs. The supplier has led a writ of summons against Greenyard Fresh Germany GmbH in the amount of € 2,3m, against which objection as well as a counterclaim in the amount of € 1,7m has been led. The legal proceedings are pending in rst instance before the regional court.

Loan debt due by Peruvian grower

Greenyard Fresh Peru SAC and a local grape grower signed an agreement whereby the grower undertook to deliver (at least) 2k tons of grapes per season, in the period between 2014 and 2018. In order to nance the purchase of additional plantations by the grower, the company granted a long-term loan of USD 500k, repayable in annual instalments from 2015 to 2019. Since the grower remains in breach of its obligation to repay the loan, Greenyard Fresh Peru SAC has initiated proceedings to enforce its collateral.# Notes to the consolidated financial statements

7.3. O-balance sheet commitments

7.3.1. Commitments concerning purchases of property, plant and equipment and fresh vegetables

Per 31 March 2021 and 31 March 2020, the Group committed for the purchase of property, plant and equipment, and fresh fruit and vegetables an amount of:

Purchase commitments	31 March 2021	31 March 2020
Fresh fruit and vegetables	110,953	85,234
Property, plant & equipment	2,970	5,385
Other	725	483
TOTAL	114,648	91,102

The Group has concluded sowing and purchase contracts with a number of farmers for the procurement of fresh fruit and vegetables. The contracted amounts can still fluctuate as a function of climate conditions and market prices for fresh fruit and vegetables.

7.3.2. Factoring

In accordance with IFRS 9 Financial instruments: Recognition and Measurement, all non-recourse trade receivables, including in factoring programmes, are derecognised for the non-continuing involvement part. As of 31 March 2021, total derecognised trade receivables amounted to € 345,5m.

7.3.3. Bank and bond covenants and undertakings

The Group has a convertible bond (€ 125,0m) and an amended Facilities Agreement (€ 467,5m) signed in March 2021.

Group convertible bond

In December 2016, Greenyard Fresh NV, a wholly-owned subsidiary of the Company, issued a senior, unsecured, guaranteed convertible bond of € 125,0m with a gross coupon of 3,75% fixed interest rate, due in December 2021. The convertible bond is guaranteed by the Company. The terms and conditions allowed Greenyard Fresh NV to redeem the convertible bonds in cash, new and/or treasury ordinary shares or a combination thereof at choice upon conversion of the convertible bonds by the bondholders. On 23 November 2017, Greenyard Fresh NV gave notice to the bondholders that it was unilaterally, irrevocably and unconditionally waiving its right to make a Cash Alternative Election, as provided in clause 6(m) of the terms and conditions, effective from that date. Greenyard Fresh NV has the option of calling in all outstanding convertible bonds on or after 22 January 2020 at par plus accrued interest, in accordance with the terms and conditions of the convertible bonds, provided that the volume weighted average price of the Company’s shares exceeds 130% of the conversion price over a specified period, or, at any time, if 15% or less of the principal amount of the convertible bonds remains outstanding. The conversion price of the convertible bond was set at € 17,430 at the launch, representing a premium of 25% on the volume weighted average price of the Company’s shares on Euronext Brussels between opening and closing of the market on the placement date. On 26 March 2021, the Company informed its bondholders through a press release that the conversion price was reset to € 16,6534 pursuant to the € 50,0m capital increase.

The terms and conditions of the convertible bond include, amongst other things, some specific clauses on dividend protection and change of control. The convertible bond is not subject to financial covenants.

Group Facilities Agreement

In March 2021, the Group refinanced its bank loans through an Amended and Restated Facilities Agreement for an amount of € 467,5m consisting of a € 190,0m term loan 1 facility, a € 125,0m term loan 2 facility, intended to refinance the € 125,0m convertible bond and a € 152,5m revolving credit facility with the same consortium of banks with whom it had entered into its earlier Facilities Agreement, which would mature in December 2021. The term loans are repayable in periodical instalments per half year, with an aggregated EUR 15,0m repayable by end of March 2022 for the term loan 1 and the term loan 2 facility. The facilities bear interest composed of EURIBOR plus a margin. The margin is not the same for the term loan as it is for the re- volving credit facility. The margin is based on the Group’s leverage. The term loans bear / will bear a margin between 1,5% and 3,25%, based on a leverage grid. The revolving credit facility bears a margin of between 1,25% and 3,00%, based on a leverage grid. Short-term bank debt varies in function of cash generated by operations, working capital needs and factoring drawdown. Next to a change of control clause and customary general covenants, the Facilities Agreement includes financial covenants being an interest cover ratio and a leverage ratio which are tested on a semi-annual basis (30 September and 31 March) and reported to the lenders. At 31 March 2021, Greenyard complied with its covenants. For the coming financial year (2021/2022), the leverage ratio covenant is set at 3,5x and 3,2x (September 2021 and March 2022 respectively), where the interest cover ratio covenant is set at 3,0x and 3,5x (September 2021 and March 2022 respectively). Greenyard intends to gradually decrease its leverage towards 2,5x. The Facilities Agreement also foresees a Guarantor Cover requirement for which the Guarantors need to meet certain minimum levels on coverage of total consolidated gross assets, total consolidated net sales and consolidated adjusted EBITDA. The guarantor cover test is required annually at year-end and Guarantors need to be added to the Facilities Agreement in case that the guarantor test is not met.

Securities

In March 2021, the Group successfully refinanced its bank facilities and entered into the Facilities Agreement. These facilities are secured through different types of asset pledges. In general, main assets, mostly including shares, cash balances, property, plant and equipment, inventories, trade and other receivables of the Group’s subsidiaries, located in Belgium, France, the Netherlands, Poland, UK, Spain, Germany, Czech Republic and the US, are pledged or secured through mortgages. On a consolidated basis, meaning excluding intercompany positions, total pledged assets amounted to € 2 815,0m at 31 March 2021 of which € 2 310,0m related to business assets, € 185,4m to property, plant and equipment, € 244,6m to inventories and receivables, € 75,0 to cash and cash equivalents. The convertible bond is not secured. The Company will issue comfort letters to some of its subsidiaries confirming financial support until their General Shareholders’ Meeting in 2022.

Bank and corporate guarantees

On 31 March 2021, the Group has outstanding bank guarantees amounting to € 12,7m and outstanding corporate guarantees amounting to € 181,9m. The main beneficiaries are tax/customs authorities, landlords, tenants, lenders, suppliers and customers. Of these amounts, bank guarantees amounting to € 0,6m are not considered to be in the ordinary course of business.

7.3.4. Contingent liabilities

There are no contingent liabilities, other than the above-mentioned responsibilities and warranties.

7.4. Related parties

Transactions between Greenyard NV and its subsidiaries have been eliminated in the consolidation and are therefore not included in this note. Transactions with joint ventures and associates are included. For an overview of the application of articles 7:96 and 7:97 BCAC, reference should be made to the Corporate Governance Statement chapter.

The Fruit Farm Group

Until December 2019, Greenyard Group had a strategic fruit sales, marketing and distribution agreement with The Fruit Farm Group. Since, Greenyard entities is only doing business with local individual key suppliers within The Fruit Farm Group. The Fruit Farm Group is ultimately owned by the reference shareholder of the Group.

Joint ventures

Transactions with joint ventures relate to sourcing, packing and selling of fruit and vegetables and logistic services.

	31 March 2021	31 March 2020
The Fruit Farm Group
Purchase of products, services and other goods	19,477	47,745
Sales of services and other goods	84	2,085
Interest and similar revenue	-	9
Trade receivable incl advances	36	1,061
Trade payables	3,375	1,084
Other entities
Purchase of products, services and other goods	2,938	-
Joint ventures
Purchase of products, services and other goods	13,062	12,756
Sales of services and other goods	94	75
Interest and similar revenue	-	-
Trade receivable incl advances	10	17
Trade payables	2,330	3,344

Remuneration of the Board of Directors and Leadership Team

Remuneration	AY 20/21	AY 19/20
Board of Directors (1)	482	546
Leadership Team (2)	5,373	5,368

(1) Excluding Mr Hein Deprez (as permanent representative of Deprez Invest NV) who receives a management fee in his capacity of co-CEO.# 7.4. Remuneration Report (Continued)

(2) The Leadership Team’s remuneration consists of the fixed remuneration and bonus of the Leadership Team members (including the co-CEOs). The total annual remuneration paid to the Board of Directors for AY 20/21 decreased with € 0,1m compared with AY 19/20. This decrease is mainly due to the difference in the number of Board of Directors’ meetings held in AY 20/21 (11 meetings, 4 of which were update meetings which do not entitle directors to attendance fees) compared to AY 19/20 (15 meetings, 4 of which were update meetings). The Leadership Team’s total annual remuneration includes the remuneration of both co-CEOs, Mr Hein Deprez (as permanent representative of Deprez Invest NV) and Mr Marc Zwaaneveld (as permanent representative of MZ-B BV), and the remuneration of the other Leadership Team members. For more detailed information in this respect and with respect to disclosures relating to the 2020 Code, reference should be made to the Corporate Governance Statement chapter.

7.5. Events after balance sheet date

7.6. Fees group auditor

During AY 20/21, additional services for a total amount of € 87k were provided by the statutory auditors and persons working under cooperative arrangements with them. These services mainly consist of supplementary audit and advisory services. The audit fees charged to the Group for the accounting year ending 31 March 2021 amounted to € 1,5m. All additional fees were presented in advance to the Audit Committee for approval. The Group’s Audit Committee gave a positive decision on this extension.

196 / GREENYARD ANNUAL REPORT 2020/2021 / 197

Statement of responsible persons

Declaration regarding the information given in this financial report for the 12-month period ended 31 March 2021.

Sint-Katelijne-Waver, 10 June 2021

The undersigned, in the name and on behalf of Greenyard NV, declare that, as far as they are aware:

The financial statements, established in conformity with the applicable accounting standards, give a true and fair view of the equity, the financial position and the results of Greenyard NV, including its consolidated subsidiaries;
The financial report for the 12-month period ended 31 March 2021 contains a true and fair statement of the important events, the results and the position of Greenyard NV, including its consolidated subsidiaries, as well as a comment on the principal risks and uncertainties confronting the Group.

Ahok BV, represented by Mr Koen Hoffman, Chairman of the Board of Directors
Deprez Invest NV, represented by Mr Hein Deprez, co-CEO and managing director
MZ-B BV, represented by Marc Zwaaneveld, co-CEO
Chilibri BV, represented by Mr Geert Peeters, CFO

198 / GREENYARD ANNUAL REPORT 2020/2021 / 199

Statutory auditor’s report on the consolidated financial statements

200 / Greenyard NV | 31 March 2021

1 Statutory auditor’s report to the shareholders’ meeting of Greenyard NV for the year ended 31 March 2021 - Consolidated financial statements

In the context of the statutory audit of the consolidated financial statements of Greenyard NV (“the company”) and its subsidiaries (jointly “the group”), we hereby submit our statutory audit report. This report includes our report on the consolidated financial statements and the other legal and regulatory requirements. These parts should be considered as integral to the report.

We were appointed in our capacity as statutory auditor by the shareholders’ meeting of 21 September 2018, in accordance with the proposal of the board of directors (“bestuursorgaan” / “organe d’administration”) issued upon recommendation of the audit committee and presentation of the works council. Our mandate will expire on the date of the shareholders’ meeting deliberating on the financial statements for the year ending 31 March 2021. Due to a lack of online archives dating back prior to 1997, we have not been able to determine exactly the first year of our appointment. We have performed the statutory audit of the consolidated financial statements of Greenyard NV for at least 23 consecutive periods.

Report on the consolidated financial statements

Unqualified opinion

We have audited the consolidated financial statements of the group, which comprise the consolidated statement of financial position as at 31 March 2021, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flow for the year then ended, as well as the summary of significant accounting policies and other explanatory notes.

The consolidated statement of financial position shows total assets of 1 942 133 (000) EUR and the consolidated income statement shows a profit for the year then ended of 1 201 (000) EUR.

In our opinion, the consolidated financial statements give a true and fair view of the group’s net equity and financial position as of 31 March 2021 and of its consolidated results and its consolidated cash flow for the year then ended, in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium.

Basis for the unqualified opinion

We conducted our audit in accordance with International Standards on Auditing (ISA), as applicable in Belgium. In addition, we have applied the International Standards on Auditing approved by the IAASB applicable to the current financial year, but not yet approved at national level. Our responsibilities under those standards are further described in the “Responsibilities of the statutory auditor for the audit of the consolidated financial statements” section of our report. We have complied with all ethical requirements relevant to the statutory audit of consolidated financial statements in Belgium, including those regarding independence. We have obtained from the board of directors and the company’s officials the explanations and information necessary for performing our audit. We believe that the audit evidence obtained is sufficient and appropriate to provide a basis for our opinion.

GREENYARD ANNUAL REPORT 2020/2021 / 201

Greenyard NV | 31 March 2021

2 Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

| Key audit matters | How our audit addressed the key audit matters # Responsibilities of the Board of Directors and Auditors

Auditor's Responsibilities for the Audit of the Consolidated Financial Statements

Our objective is to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

An audit involves performing procedures to obtain audit evidence. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the consolidated financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors, as well as evaluating the overall presentation of the consolidated financial statements.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant findings of the audit, including any significant deficiencies in internal control that we identify during our audit.

We have identified the following Key Audit Matters:

Going concern consideration

A number of adverse non-recurring events along with fierce competition and market pressure caused a steep decrease in profitability in AY 18/19 and consequently triggered uncertainty around the liquidity position and the going concern consideration of the company. In response to these circumstances a number of restructuring measures & transformation measures were taken by management. A new business plan considering these measures was created and executed over the past 24 months. The Board of Director’s performed a going concern assessment, considering:
* management’s 12 months forward looking cashflow analysis;
* the amended and restated bank agreement the company signed with the syndicated lenders per March 2021;
* management’s assessment of potential risks and uncertainties as described in the annual report.

Considering the pervasive impact of the going concern assumption on the financial statements and the material uncertainty in this respect identified in prior accounting periods, we consider this to be a Key Audit Matter. The group disclosed their going concern assessment in note 7.16 to the consolidated financial statements.

In response to this matter, we obtained an understanding and tested the design and implementation of relevant internal controls in relation to the going concern assessment. We critically challenged the documentation that served as a basis for the Board of Director’s going concern assessment. We challenged management’s assumptions and sought appropriate evidence for any anticipated improvements in major assumptions such as sales growth & cost reductions or working capital movements. We assessed the historical accuracy of management's estimates through retrospective review, performed covenant sensitivity analysis as well as stress-testing of the cash flow model. We involved debt restructuring specialists in the review of the overall debt structure of the company. We considered the appropriateness of the disclosure provided in note 7.16 ‘Bank loans’ and the disclosure around general Risks & Uncertainties.

Greenyard NV | 31 March 2021 4

Changes in finance systems and processes

The IT systems within the Group form a critical component of the Group’s financial reporting activities and impact all account balances. In the past year the group commenced its finance transformation in the Fresh division with the implementation of a new ERP Platform in the German subsidiary Fresh Solutions GmbH. We focussed on this area because during a period of finance operational and systems changes there is an increased risk to the internal financial control environment. Deficiencies in controls surrounding key business processes lead to an increased risk of material misstatement in the financial statements. The group disclosed the potential risk as part of its general Risks & Uncertainties and in Note 3.2 to the consolidated financial statements.

We performed the following procedures in respect of the new ERP implementation:
* Walkthroughs of new processes and review of the Design & Implementation of relevant controls identified in processes that are relevant to the preparation of the financial statements;
* Obtained an understanding of the data cleaning that occurred prior to the migration and tested data migration with associated reconciliations;
* Discussed and assessed IT access and segregation of duties for all users.

Whilst our audit strategy did not seek to rely on controls over the processes impacted by the changes in finance operations and the ERP implementation, in performing our audit procedures we evaluated the robustness of the financial statements closing process. Such evaluation, as well as an assessment of the impact of all unremediated control deficiencies, served as a basis for our risk assessment and determination of our audit plan. Where relevant, the audit plan was adjusted to include the testing of additional manual business process controls and additional substantive procedures to mitigate the unaddressed risk mainly situated in the Cost of Sales. We considered the appropriateness of the disclosure provided in the Group financial statements in respect of the potential risks resulting from the change in finance and operational systems.

Responsibilities of the board of directors for the preparation of the consolidated financial statements

The board of directors is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium and for such internal control as the board of directors determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the board of directors is responsible for assessing the group’s ability to continue as a going concern, disclosing, as applicable, matters to be considered for going concern and using the going concern basis of accounting unless the board of directors either intends to liquidate the group or to cease operations, or has no other realistic alternative but to do so.

GREENYARD ANNUAL REPORT 2020/2021 / 203# Statutory auditor’s report on the consolidated financial statements

204 / Greenyard NV | 31 March 2021

5 Responsibilities of the statutory auditor for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a statutory auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISA will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

During the performance of our audit, we comply with the legal, regulatory and normative framework as applicable to the audit of consolidated financial statements in Belgium. The scope of the audit does not comprise any assurance regarding the future viability of the company nor regarding the efficiency or effectiveness demonstrated by the board of directors in the way that the company’s business has been conducted or will be conducted.

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

identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain 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 an error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control;
obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control;
evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors;
conclude on the appropriateness of the use of the going concern basis of accounting by the board of directors and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our statutory auditor’s report to the related disclosures in the consolidated 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 statutory auditor’s report. However, future events or conditions may cause the group to cease to continue as a going concern;
evaluate the overall presentation, structure and content of the consolidated financial statements, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the group to express an opinion on the consolidated financial statements.

We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and we communicate with them about all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated to the audit committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes any public disclosure about the matter.

Greenyard NV | 31 March 2021

Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL

Registered Office: Gateway building, Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem
VAT BE 0429.053.863 - RPR Brussel/RPM Bruxelles - IBAN BE86 5523 2431 0050 - BIC GKCCBEBB
Member of Deloitte Touche Tohmatsu Limited

Other legal and regulatory requirements

Responsibilities of the board of directors

The board of directors is responsible for the preparation and the content of the directors’ report on the consolidated financial statements, the statement of non-financial information attached to the directors’ report on the consolidated financial statements and other matters disclosed in the annual report on the consolidated financial statements.

Responsibilities of the statutory auditor

As part of our mandate and in accordance with the Belgian standard complementary to the International Standards on Auditing (ISA) as applicable in Belgium, our responsibility is to verify, in all material respects, the director’s report on the consolidated financial statements, the statement of non-financial information attached to the directors’ report on the consolidated financial statements and other matters disclosed in the annual report on the consolidated financial statements, as well as to report on these matters.

Aspects regarding the directors’ report on the consolidated financial statements and other information disclosed in the annual report on the consolidated financial statements

In our opinion, after performing the specific procedures on the directors’ report on the consolidated financial statements, this report is consistent with the consolidated financial statements for that same year and has been established in accordance with the requirements of article 3:32 of the Code of companies and associations.

In the context of our statutory audit of the consolidated financial statements we are responsible to consider, in particular based on information that we became aware of during the audit, if the directors’ report on the consolidated financial statements and other information disclosed in the annual report on the consolidated financial statements are free of material misstatements, either by information that is incorrectly stated or otherwise misleading. In the context of the procedures performed, we are not aware of such a material misstatement.

The non-financial information as required by article 3:32, § 2 of the Code of companies and associations, has been disclosed in the directors’ report on the consolidated financial statements. This non-financial information has been established by the company in accordance with the GRI standards. In accordance with article 3:80 § 1, 5° of the Code of companies and associations we do not express any opinion on the question whether this non-financial information has been established in accordance with these standards.

Statements regarding independence

Our audit firm and our network have not performed any prohibited services and our audit firm has remained independent from the group during the performance of our mandate. The fees for the additional non-audit services compatible with the statutory audit, as defined in article 3:65 of the Code of companies and associations, have been properly disclosed and disaggregated in the notes to the consolidated financial statements.

Other statements

This report is consistent with our additional report to the audit committee referred to in article 11 of Regulation (EU) No 537/2014.

Signed at Ghent.

The statutory auditor

Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
Represented by Kurt Dehoorne

GREENYARD ANNUAL REPORT 2020/2021 / 205

Greenyard NV | 31 March 2021

5 Responsibilities of the statutory auditor for the audit of the consolidated financial statements

As part of an audit in accordance with ISA, we exercise professional judgment and maintain professional scepticism throughout the audit.# Statutory Auditor’s Report

We also: identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain 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 an error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group’s internal control; evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the board of directors; conclude on the appropriateness of the use of the going concern basis of accounting by the board of directors and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our statutory auditor’s report to the related disclosures in the consolidated 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 statutory auditor’s report. However, future events or conditions may cause the group to cease to continue as a going concern; evaluate the overall presentation, structure and content of the consolidated financial statements, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation. obtain sufficient appropriate audit evidence regarding the financial information of the entities and business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with the audit committee regarding, amongst other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the audit committee with a statement that we have complied with relevant ethical requirements regarding independence, and we communicate with them about all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated to the audit committee, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our report unless law or regulation precludes any public disclosure about the matter.

Greenyard NV | 31 March 2021
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
Registered Office: Gateway building, Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem
VAT BE 0429.053.863 - RPR Brussel/RPM Bruxelles - IBAN BE86 5523 2431 0050 - BIC GKCCBEBB
Member of Deloitte Touche Tohmatsu Limited

Other legal and regulatory requirements

Responsibilities of the board of directors

Responsibilities of the statutory auditor

Aspects regarding the directors’ report on the consolidated financial statements and other information disclosed in the annual report on the consolidated financial statements

Statements regarding independence

Other statements

This report is consistent with our additional report to the audit committee referred to in article 11 of Regulation (EU) No 537/2014.

Signed at Ghent.
The statutory auditor

Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
Represented by Kurt Dehoorne
Statutory auditor

Statutory auditor’s report on the consolidated financial statements

206 / Greenyard NV | 31 March 2021

1

Statutory auditor’s report to the shareholders’ meeting, in accordance with article 4 of the Transparency Directive 1 , in the context of the compliance of the consolidated financial statements in the form of an electronic file of Greenyard NV as of 31 March 2021 with the ESEF requirements and taxonomy under Delegated Regulation (EU) 2018/815 2

In accordance with article 4 of the Transparency Directive 3 , the statutory auditor’s mission is to report on the compliance of the XBRL tagging of the consolidated financial statements in the form of an electronic file ("digital consolidated financial statements") of Greenyard NV ("the company") with the ESEF requirements and taxonomy, in particular with the provisions stipulated in the ESEF Regulatory Technical Standard ("ESEF RTS") applicable to the digital consolidated financial statements as of 31 March 2021.

Responsibilities of the board of directors

The board of directors is responsible for the preparation of the digital consolidated financial statements in accordance with the ESEF requirements and taxonomy (in particular, the provisions stipulated in the ESEF RTS applicable to the digital consolidated financial statements as of 31 March 2021). This responsibility includes the selection and application of the most appropriate methods for preparing the digital consolidated financial statements. The responsibility of the board of directors furthermore includes the design, implementation and follow-up of systems and processes relevant for the preparation of the digital consolidated financial statements that are free from any material misstatement, whether due to fraud or error. The board of directors must verify that the digital consolidated financial statements correspond to consolidated financial statements which are readable by the user.

Responsibility of the statutory auditor

Based on the work we performed, it is our responsibility to express a conclusion as to whether the XBRL tagging of the company's digital consolidated financial statements as of 31 March 2021 complies in all material respects with the ESEF RTS. We conducted our work in accordance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) "Assurance engagements other than audits or reviews of historical financial information”. This standard requires that we comply with all ethical requirements and that we plan and perform this mission in order to obtain reasonable assurance that nothing has come to our attention that causes us to believe that the digital consolidated financial statements have not been prepared, in all material respects, in accordance with the ESEF RTS that have been applied by the company. The selection of the procedures performed is based on our professional judgment and on our assessment of the risks of material misstatement in the digital consolidated financial statements and in the statements made by the board of directors.# Statutory auditor’s report to the shareholders’ meeting, in accordance with article 4 of the Transparency Directive 1 , in the context of the compliance of the consolidated financial statements in the form of an electronic file of Greenyard NV as of 31 March 2021 with the ESEF requirements and taxonomy under Delegated Regulation (EU) 2018/815 2

Responsibilities of the board of directors

Responsibility of the statutory auditor

The work performed consisted of, amongst others, the following procedures:

Obtaining an understanding of the processes followed by the company for the XBRL tagging of the digital consolidated financial statements and of the internal control relevant to the certification, 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 internal control, which are intended to provide reasonable assurance that the XBRL tagging of the digital consolidated financial statements is, in all material respects, in compliance with ESEF RTS;
1
Directive 2004/109/EC of the European Parliament and of the Council of 15 December 2004 on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trading on a regulated market and amending Directive 2001/34/EC. This directive has been implemented into Belgian law by the royal decree of 14 November 2007 regarding the obligations of issuers of financial instruments admitted to trading on a regulated market. The provisions relating to the ESEF requirements have however not yet been transposed.
2
Delegated Regulation (EU) 2018/815 of the Commission per 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament and of the Council with regulatory technical standard to specify a uniform electronic reporting format. The delegated regulation is directly applicable in Belgian law.
3
Ibid.
Reconciling the tagged data with the audited consolidated financial statements of Greenyard NV, 0402.777.157, as of 31 March 2021;
Assessing the completeness of the tagging of the digital consolidated financial statement prepared by the company;
Assessing the appropriateness of the use of the iXBRL elements of the ESEF taxonomy by the company and assessing the creation of the extension taxonomy;

Our independence and quality control

We have complied with all independence and other ethical requirements stipulated by law and regulations in Belgium that are applicable in the context of our mission. These requirements are founded on the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our audit firm applies International Standard on Quality Control (ISQC) 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with the ethical requirements, professional standards and applicable legal and regulatory requirements.

Conclusion

Based on the procedures performed, in our opinion, the XBRL tagging of the digital consolidated financial statements of Greenyard NV as of 31 March 2021 is, in all material respects, in compliance with the ESEF requirements and taxonomy (in particular, the current provisions stipulated in the ESEF RTS applicable to the digital consolidated financial statements as of 31 March 2021). The purpose of this report is not to express an audit opinion nor a conclusion of a limited review or any other assurance conclusion on the consolidated financial statements itself. Our audit opinion with respect to the consolidated financial statements of the group is set out in the statutory auditor's report dated 31 March 2021.

Other matter

The consolidated financial statements of Greenyard NV and its affiliates (together "the group") have been prepared by the board of directors of the company on 9 June 2021 and have been subject to a statutory audit. Our statutory auditor’s report signed on 14 June 2021 comprises an unqualified opinion on the true and fair view of the group’s net equity and consolidated financial position as of 31 March 2021 and of its consolidated results and its consolidated cash flow for the year then ended in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union and with the legal and regulatory requirements applicable in Belgium.

Signed at Ghent.

The statutory auditor
Deloitte Bedrijfsrevisoren BV
Represented by Kurt Dehoorne

GREENYARD ANNUAL REPORT 2020/2021 / 207

Greenyard NV | 31 March 2021
Deloitte Bedrijfsrevisoren/Réviseurs d’Entreprises BV/SRL
Registered Office: Gateway building, Luchthaven Brussel Nationaal 1 J, B-1930 Zaventem
VAT BE 0429.053.863 - RPR Brussel/RPM Bruxelles - IBAN BE86 5523 2431 0050 - BIC GKCCBEBB
Member of Deloitte Touche Tohmatsu LimitedThese requirements are founded on the fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour. Our audit firm applies International Standard on Quality Control (ISQC) 1 and accordingly maintains a comprehensive system of quality control including documented policies and procedures regarding compliance with the ethical requirements, professional standards and applicable legal and regulatory requirements.

Conclusion

Other matter

Signed at Ghent.
The statutory auditor
Deloitte Bedrijfsrevisoren BV
Represented by Kurt Dehoorne

208 / GREENYARD ANNUAL REPORT 2020/2021 / 209

Condensed statutory accounts of the parent company Greenyard NV, according to Belgian accounting standards

210 / Condensed statutory accounts

The statutory financial statements of the parent company, Greenyard NV, are presented below in a condensed form. The statutory auditor issued an unqualified report on the financial statements of Greenyard NV. In accordance with Belgian company law, the directors’ report and financial statements of the parent company, Greenyard NV, together with the statutory auditor’s report, will be deposited with the National Bank of Belgium. They are available on our website and on request from:

Greenyard NV
Strijbroek 10
BE – 2860 Sint-Katelijne-Waver
Belgium

GREENYARD ANNUAL REPORT 2020/2021 / 211

ASSETS

Codes	31 March 2021 €’000	31 March 2020 €’000
NON-CURRENT ASSETS	282,359	233,319
20	696	208
21	1,962	1,465
22/27	268	11,234
22	-	9,094
23	39	56
24	27	33
25	91	121
26	-	-
27	111	1,930
28	279,433	220,411
280/1	279,233	220,211
280	279,233	220,211
281	-	-
282/3	-	-
282	-	-
283	-	-
284/8	200	200
284	200	200
285/8	-	-
CURRENT ASSETS	319,539	378,312
29	270,251	340,370
290	-	-
291	270,251	340,370
3	-	-
30/36	-	-
30/31	-	-
32	-	-
33	-	-
34	-	-
35	-	-
36	-	-
37	-	-
40/41	8,021	3,467
40	7,020	2,991
41	1,001	476
50/53	-	-
50	-	-
51/53	-	-
54/58	30,301	11,875
490/1	10,966	34,464
TOTAL ASSETS	601,898	611,631

212 / Condensed statutory accounts

LIABILITIES

Codes	31 March 2021 €’000	31 March 2020 €’000
EQUITY	386,952	332,838
10	343,852	293,852
100	343,852	293,852
101	-	-
11	-	-
12	-	-
13	46,241	46,241
130	9,474	9,474
131	23,930	23,930
1310	23,905	23,905
1311	25	25
132	1,477	1,477
133	11,360	11,360
14	-3,141	-7,254
15	-	-
19	-	-
PROVISIONS AND DEFERRED TAXATION	-	-
160/5	-	-
160	-	-
161	-	-
162	-	-
163	-	-
164/5	-	-
168	-	-
CREDITORS	214,946	278,792
17	206,218	206,697
170/4	205,863	205,891
170	-	-
171	-	-
172	63	91
173	-	-
174	205,800	205,800
175	355	805
1750	355	805
1751	-	-
176	-	-
178/9	-	-
42/48	6,827	70,129
42	34	36
43	-	-
430/8	-	-
439	-	-
44	5,580	3,659
440/4	5,580	3,659
441	-	-
46	-	-
45	1,193	781
450/3	231	86
454/9	962	695
47/48	20	65,654
492/3	1,901	1,966
TOTAL EQUITY AND LIABILITIES	601,898	611,631

213 / Condensed statutory accounts

INCOME STATEMENT

Codes	AY 20/21 €’000	AY 19/20 €’000
Operating income	21,849	21,114
70	19,032	19,100
71	-	-
72	-	-
74	2,061	2,014
76A	756	-
Operating charges	22,822	22,753
60	-	-
600/8	-	-
609	-	-
61	12,666	14,827
62	4,253	3,585
630	1,593	2,111
631/4	-	1
635/8	-	-
640/8	4,310	2,229
649	-	-
66A	-	-
Operating profit/loss (-)	-973	-1,639
Financial income	12,248	10,833
75	12,248	10,833
750	2,000	8
751	9,905	10,823
752/9	343	1
76B	-	-
Financial charges	7,156	13,259
65	7,156	13,259
650	6,618	12,855
651	-	-
652/9	538	404
66B	-	-
Profit/loss (-) for the period before taxes	4,119	-4,066
780	-	-
680	-	-
Income taxes	5	5
670/3	5	5
77	-	-
Profit/loss (-) of the period	4,114	-4,070
789	-	-
689	-	-
Profit/loss (-) for the period available for appropriation	4,114	-4,070

214 / GREENYARD ANNUAL REPORT 2020/2021 / 215

APPROPRIATION ACCOUNT

Codes	AY 20/21 €’000	AY 19/20 €’000
Profit/loss (-) to be appropriated	-3,141	-7,254
Profit/loss (-) for the period available for appropriation (9905)	4,114	-4,070
Profit/loss (-) brought forward (14)	-7,254	-3,184
Transfers from equity (791/2)	-	-
From capital and share premiums (791)	-	-
From reserves (792)	-	-
Transfers to equity (691/2)	-	-
To capital and share premiums (691)	-	-
To legal reserve (6920)	-	-
To other reserves (6921)	-	-
Profit/loss (-) to be carried forward (14)	-3,141	-7,254
Shareholders' contribution in respect of losses (794)	-	-
Distribution of profit (694/7)	-	-
Dividends (694)	-	-
Directors' emoluments (695)	-	-
Employees (696)	-	-
Other allocations (697)	-	-

216 / GREENYARD ANNUAL REPORT 2020/2021 / 217

Financial definitions

CAPEX: Capital expenditures
EBIT: Operating result
EPS: Earnings per share
IRS: Interest rate swap
Liquidity: Current assets (including assets classified as held for sale)/Current liabilities# Key Financial Information

Definitions

Leverage NFD/LTM adjusted EBITDA: Net financial debt (NFD) divided by last twelve months (LTM) adjusted EBITDA.
Net financial debt (NFD): Interest-bearing debt (at nominal value) before the impact of IFRS 16 as of AY 20/21, less derivatives, bank deposits, cash and cash equivalents and restricted cash.
Net financial debt (post IFRS 16): Interest-bearing debt (at nominal value) after the impact of IFRS 16 as of AY 20/21, less derivatives, bank deposits, cash and cash equivalents and restricted cash.
Net result: Profit/loss (-) for the period.
Adjusting items: Adjusting items are one-off expenses and income that in management’s judgement need to be disclosed by virtue of their size or incidence. Such items are included in the consolidated income statement in their relevant cost category, but separately disclosed in the chapter Key financial information reconciling EBIT to adjusted EBITDA. Transactions which may give rise to adjusting items are principally restructuring and reorganisation activities, impairments, disposal of assets and investments, claims, IFRS 3 acquisition accounting and merger & acquisition projects and the effect of the accelerated repayment of certain financial indebtedness.
Adjusted EBITDA: EBIT corrected for depreciation, amortisation and impairments excluding adjusting items, excluding EBIT corrected for depreciation, amortisation and impairments from minor divested operations (not within the scope of IFRS 5) and excluding the impact of IFRS 16.
Adjusted EBITDA (post IFRS 16): EBIT corrected for depreciation, amortisation and impairments excluding adjusting items, excluding EBIT corrected for depreciation, amortisation and impairments from minor divested operations (not within the scope of IFRS 5) and including the impact of IFRS 16.
LTM: Last twelve months.
LTM adjusted EBITFA: Last twelve months adjusted EBITDA, corrected for acquisitions.
Working capital: Working capital is the sum of the inventories, trade and other receivables (non-current and current) and trade and other payables (current). In this respect trade and other receivables are corrected for long-term (financing) receivables and accrued interest income and trade and other payables exclude accrued interest expenses and dividend payable.
AY 20/21: Accounting year ended 31 March 2021.
AY 19/20: Accounting year ended 31 March 2020.

About Greenyard

Greenyard (Euronext Brussels: GREEN) is a global market leader of fresh, frozen and prepared fruit & vegetables, flowers and plants. Counting Europe’s leading retailers amongst its customer base, Greenyard provides efficient and sustainable solutions to customers and suppliers through best-in-class products, market leading innovation, operational excellence and outstanding service. Our vision is to make lives healthier by helping people enjoy fruit & vegetables at any moment, easy, fast and pleasurable, whilst fostering nature. With more than 9,000 employees operating in 23 countries worldwide, Greenyard identifies its people and key customer and supplier relationships as the key assets which enable it to deliver goods and services worth approx. €4.4 billion per annum.

Greenyard NV / Strijbroek 10 / 2860 Sint-Katelijne-Waver / Belgium

ANNUAL REPORT 2021

Description	AY 20/21	AY 19/20	AY 18/19
Issued Capital	€31.93 million	€31.93 million	€31.93 million
Share Premium	€200.63 million	€200.63 million	€200.63 million
Treasury Shares	€(26.79) million	€(26.79) million	€(26.79) million
Retained Earnings	€392.13 million	€362.99 million	€347.38 million
Reserve of Cash Flow Hedges	€1.94 million	€3.06 million	€1.48 million
Reserve of Exchange Differences On Translation	€(36.22) million	€(31.28) million	€(29.96) million
Reserve of Gains And Losses On Financial Assets Measured At Fair Value Through Other Comprehensive Income	€0.00 million	€0.00 million	€0.00 million
Reserve of Remeasurements Of Defined Benefit Plans	€(3.55) million	€(3.10) million	€(3.01) million
Equity Attributable To Owners Of Parent	€565.57 million	€537.64 million	€520.70 million
Noncontrolling Interests	€12.02 million	€11.55 million	€10.91 million
Total Equity	€577.59 million	€549.19 million	€531.61 million

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Greenyard NV — Annual Report 2021

3957_10-k_2021-06-15_01ca2bf2-59d4-4c61-a4f9-f22be40edf38.xhtml

Untitled Annual Report 2020/2021

Message from the co-CEOs

Highlights

Agility in times of great need

Safety as our rst priority

Healthy choices

Contents

A year like no other

Message from the co-CEOs

Highlights

Agility in times of great need

Agility in times of great need

Safety as our first priority

Reorganised for social distancing

Agility in times of great need

Working apart together

Rising to the challenge

Agility in times of great need

Healthy choices

A unique business model

Adding value throughout the entire chain

A unique business model

Operational review

divisions

What we do

A unique business model

Deepening Greenyard’s unique long-term relationships

Seven pillars for growth

A unique business model

Helping our customers stand out from the crowd

Working for the long term in a rapidly evolving world

A unique business model

The road to better sourcing

The best of nature, available all year round

Where health and convenience meet

Product innovation is key

Focus on R&D and co-creation

Secure growth at robust profitable margins

Building for growth

Technology for better and healthier lifestyles

Extra space for a growing business

GREENYARD ANNUAL REPORT 2020/2021 / 39

A unique business model

New citrus line

Next level of chain specialisation

Enormous amount of data

40 / Boom, Belgium

Co-creation with the customer

Safety and sustainability

IN A NUTSHELL

Ridderkerk, the Netherlands

GREENYARD ANNUAL REPORT 2020/2021 / 41

A unique business model

Improving life step by step

How sustainability creates value for every link in the chain

Creating economic value

Working with the entire chain

GREENYARD ANNUAL REPORT 2020/2021 / 43

A unique business model

Water risk mapped for 100% of our grower base

Four commitments

44 / Our Sustainability Roadmap

GREENYARD ANNUAL REPORT 2020/2021 / 45

46 / Greenyard at a glance / 47

GREENYARD ANNUAL REPORT 2020/2021

Greenyard at a glance

Financial report

GREENYARD ANNUAL REPORT 2020/2021

Financial report

In good health

Message from the CFO

GREENYARD ANNUAL REPORT 2020/2021

Key nancial information

Sales and adjusted EBITDA per operating segment

Report of the board of directors

Comments on the consolidated nancial statements

1. Consolidated income statement

Greenyard NV Annual Report 2021