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Holland Colours NV

Environmental & Social Information Jun 3, 2021

3850_10-k_2021-06-03-173800_be6876f6-9a84-44fb-90dd-d75afec591bf.pdf

Environmental & Social Information

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COLORING YOUR SUCCESS

ANNUAL REPORT 2020/2021

WE ARE HOLLAND COLOURS

"At Holland Colours, every employee is a co-owner and owners know that the first step to success begins with adding value for our customers."

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

CONTENTS

Introduction by the CEO 3 Corporate Governance 34
About Holland Colours 4 Report of the Supervisory Board 39
Our Profile: 4

Highlights
4 Remuneration Report 45

Our History
5

Our Products
6 Employee Participation 49

The drivers of a future-oriented business
7
Focus on Responsibility: Safety & Sustainability 12 Five-Year Summary 50
Report of the Board of Management 20 Investor Relations 51
Introduction 22
COVID-19 22 Financial Statements 53
Strategic Update 22
Financial Key Figures 24 Other Information 94
Financial Performance 25
Outlook 2021/2022 27 Independent Auditor's Report 94
Organization 27
Product Innovation 27 Our Organization 104
CSR 28
Risk Management 31 Contact 105
Declaration of the Board of Management 33

CONTENTS INTRODUCTION BY THE CEO

ABOUT HCA

REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

INTRODUCTION BY THE CEO

Dear shareholders, employees, customers and business partners,

This time last year, our auditors informed us that we would be one of the first Dutch companies to have to include a special reference to COVID-19 in its Annual Report. Back then, the uncertainty was huge, and we saw many manufacturing companies having to scale down or cease operations temporarily.

Our priority was to ensure the safety of our people, which we did by taking appropriate measures at our locations. With those in place, we could then focus on keeping our customers supplied.

HEALTHY BALANCE SHEET

I am very proud of how the organization adapted to COVID-19 and the eagerness and commitment of everyone to step up and take responsibility. People at all our locations were proactive and engaged, reacting quickly and showing a deep understanding of the need to manage this crisis together.

Obviously, many factors were out of our hands, but because of a healthy balance sheet the continuity of our Company was never at stake. The organization did a good job of managing our costs. We also postponed some investments and delayed filling vacancies. Later, as it became clear that market demand was picking up again and our cash flow was holding up, we relaxed some of these decisions. Although revenues decreased by 5% compared with the previous year, the ROS (Return on Sales) rose to 12.9%, an increase of 2.3 percentage points versus the previous year. Based on these results, we propose to pay a final cash dividend for 2020/2021 of € 5.50 per share.

TOP LINE GROWTH AND EXCELLENCE INITIATIVES

Besides testing our Company's crisis management skills, the COVID-19 pandemic has taught us a few other things. We remain convinced that our strategic road map continues to be valid, and that top line growth and excellence initiatives continue to be key drivers for value creation. The world around us is changing fast, and the last year has really driven home just how much factors like digitalization and data, market knowledge, online marketing, breakthrough solutions, process optimization and personal competencies will become critical success factors for our business.

SUSTAINABILITY INCLUDED IN STRATEGY

At the same time, we will include a further element in our strategy: sustainability. This is something we have paid increasing attention to over the last decade, but in 2020/2021, we began taking steps to raise our game to a new level. The Board of Management and senior management invested time and effort in defining, developing and formulating both a sustainability vision for our Company and identifying how we can embed this vision in our daily mindset and processes. We are committed to achieving the sustainability objectives that we set with respect to our people, our processes and our products.

With national COVID-19 vaccination programs progressing on a global scale, there are grounds for positivity. We are cautiously optimistic about the development of global markets, but like previous years we refrain from providing estimates about future revenues and results.

Finally, I would like to thank all our employees and stakeholders for their effort and for their commitment to the success of Holland Colours.

Coen Vinke CEO

CONTENTS

REPORT OF THE BOARD OF MANAGEMENT ABOUT HCA

CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD

SINCE 1979

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS STATEMENTS OTHER INFORMATION

FINANCIAL

NETWORK OF 100

suppliers, distributors and agents

GLOBAL SUPPLIER of plastic colorants and additives

HIGHLIGHTS 42 Our Profile

INTRODUCTION BY THE CEO

We have been the frontrunners in eco-friendly colorants since our founding in 1979, back when sustainability and being 'green' were not on most people's minds. We created and will continue to develop sustainable products in partnership with our customers.

years of color

formulation experience

COLORING YOUR SUCCESS

2,000

customers in 85 countries

2 billion kg

of plastic products colored by Holland Colours each year

''Today, we are one global team of over 400 colleagues with different experiences and various backgrounds. But, we all share the same core values, passion for color, commitment to our customers, and pride in our company."

REPORT OF THE SUPERVISORY BOARD

CORPORATE GOVERNANCE

REPORT OF THE BOARD OF MANAGEMENT

INTRODUCTION BY THE CEO

CONTENTS

ABOUT HCA

THE FOUNDING OF CURRENT LOCATIONS

More than 40 years ago, the founders of Holland Colours set to work in an old paper factory in Apeldoorn, the Netherlands. A small but ambitious team, they had an idea that would ultimately disrupt the world of colors – and earn them the predicate 'pioneers'.

EMPLOYEE PARTICIPATION

REMUNERATION REPORT

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION HCA

REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE

REPORT OF THE SUPERVISORY BOARD REPORT

REMUNERATION

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

OUR PRODUCTS

Holcobatch®

Microbeads and an eco-friendly carrier, with a low melting point and support for ultralow dosing. Holcobatch is typically used for light color applications and delivers the highest coloring homogeneity. Use for transparent applications.

Holcolex

This liquid colorant based on water and glycol is designed for use with for waterborne paints and coatings, adhesives, liquid soaps, windshield wash and antifreeze.

Holcoprill

Cylindrical granulates, based on a natural carrier and showing a low melting point. Holcoprill is highly concentrated and is designed for use at high dosing levels. Use for transparent and

opaque applications.

Holcopearl®

Round granulates, based on a polymeric carrier and suitable for low dosing. Holcopearl is a great colorant for ABS, flexible PVC applications, polyolefins and PET. Use for transparent and highly opaque applications.

Holcosil

Liquid colorants for comprising three versions for different applications covering building and molding silicone rubbers press molding of silicone rubber.

Holcomer

A plastic packaging additive that protects the effect of light. The Holcomer family provides superior opacity for UHT milk packaging. We also offer low TiO2

6 HOLLAND COLOURS ANNUAL REPORT 2020/2021

The first product to emerge from all this R&D was Holcobatch®. Still made today, the

easier as well as safer. Even better – viewed with the benefit of hindsight – the carrier they developed to do this was a natural, vegetable-oil based sustainable product.

underlying technology and encapsulation know-how support a whole variety of 'Holco' colorant products for the building & construction and the packaging markets. These include high-loaded Holcoprill for the packaging and building & construction markets and Holcomer for the dairy PET packaging industry, where opacity is crucial.

THE DRIVERS OF A FUTURE-ORIENTED BUSINESS

The theme of the 2020/2021 Holland Colours Annual Report is responsibility. Responsibility for our planet, for our employees, for our customers and for their customers. Responsibility for their safety and for the sustainability of what we do as a Company and the impact we have.

You only have to read your news feed, watch TV or shop online to know that responsibility and sustainability are trending topics for pretty much every business today. And this is also true of Holland Colours. But there is a crucial difference. We are not new to sustainability. In our case, what is new is not that we are going to focus on sustainability, but that, as you can read elsewhere in this report, we are aiming to take sustainability to the next level by putting even more emphasis on something that has been in our DNA since day one.

A SUSTAINABLE BUSINESS SINCE 1979

INTRODUCTION BY THE CEO

As a business, we color the world. We create and manufacture high-quality solid and liquid color- and additive concentrates. Our products are designed to be ideal for coloring and adding functionality to a variety of polymers for building & construction and packaging applications, and coatings, sealants and adhesives. But just as important as what we do is how we do it: responsibly.

Responsibility, along with business opportunity and a passion for innovation, was the principal driver behind the establishment of Holland Colours back in 1979. Driven by an idea that they hoped would transform the world of plastic colorants, the Company's founders set up a new business in an old paper factory in Apeldoorn, the Netherlands.

Back then, PVC was colored by adding dry pigments, a process that would create dust that the people working with them would then breathe in. The Holland Colours concept was to instead encapsulate these colorants, bind them in a carrier. This would improve color distribution, improve people's health and make working with plastic colorants

PLASTICS ARE ESSENTIAL

Strong, lightweight and moldable, plastics are used in thousands of products that add comfort, convenience and safety to our daily lives. Plastic helps to prevent food waste with excellent sealing and enhanced durability and is widely used instead of wood by the ecological building & construction industry.

Adding color to plastic and coatings creates emotion, affects behavior, aids identification and supports safety, depending on the purpose and application. Together with our customers, we co-design sustainable colorants and additives that are efficient, effective and esthetic.

FROM RESPONSIBLE PRODUCTS TO SUSTAINABLE PRODUCTS

OF MANAGEMENT CONTENTS ABOUT HCA

CORPORATE GOVERNANCE REPORT OF THE BOARD

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL

STATEMENTS OTHER INFORMATION

REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

THE DRIVERS OF A FUTURE-ORIENTED BUSINESS

INTRODUCTION BY THE CEO

We continue to work on new applications for our sustainable carrier technology. In addition to our bio-based color concentrates, we now use the same technology to make additive concentrates, including some specifically designed to support packaging, product or process sustainability, and to enhance bottle recycling. Low dosing, enhanced recyclability and reductions in scrap rate and energy consumption are the key drivers. TasteGuard, for example, helps to ensure that bottled water tastes of water, not the container they come in. LightGuard extends the shelf life of teas and juices by protecting them against UV. TintMask counteracts the yellow appearance of recycled PET bottles, boosting their acceptance among consumers. FastHeat reduces the energy needed to produce PET bottles. Holcomer Thermostretch complies with new EU regulations to limit the use of titanium dioxide, while reducing the energy consumption during the bottle blowing process.

As our portfolio has grown, so has our business. The Company that started in the Netherlands now covers the world from manufacturing and sales locations in the Netherlands, the United States, the United Kingdom, Hungary, Indonesia, Canada and Mexico. From here more than 400 employees serve local and global customers.

A RESPONSIBILITY TO OUR COLLEAGUES

None of this would be possible without great people. Here, too, responsibility is key. A sense of responsibility is why Holland Colours believes in the employee co-ownership model. See the section on Employee Participation (page 49). Because of this, our employees – the people who make Holland Colours what it is – have a strong commitment to the Company and the business.

OUR MARKETS

Holland Colours' first customers were PVC pipe manufacturers supplying the building products and applications where good dispersion is a key factor. These applications include profiles, sheets, siding, cladding, sealants and flooring.

We entered the packaging market later, but today it is a fast-growing part of our business and another showcase for our expertise. There are various trends at play in interest in bio-based and recyclable packaging solutions. We partner with small, medium and large customers to produce packaging for water, carbonated soft drinks, With our wide market experience and strong R&D knowledge base, Holland Colours is REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS STATEMENTS OTHER INFORMATION

FINANCIAL

THE DRIVERS OF A FUTURE-ORIENTED BUSINESS

OUR MISSION

BY THE CEO

Employee co-ownership also underpins our mission and helps us to deliver on it. Our mission is two-fold:

TO BE RECOGNIZED AS A CONTRIBUTOR TO THE DEVELOPMENT OF A SUSTAINABLE INDUSTRY

TO BE OUR CUSTOMERS' CO-DESIGNER OF COLOR AND FUNCTIONAL SOLUTIONS

EMPLOYEE PARTICIPATION

REMUNERATION REPORT

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

THE DRIVERS OF A FUTURE-ORIENTED BUSINESS

INTRODUCTION BY THE CEO

HCA

CONTENTS ABOUT

OUR CORE VALUES: PROVIDING A FRAMEWORK FOR SUCCESS

REPORT OF THE BOARD OF MANAGEMENT

Underpinning everything are our core values. These are based on the insight that as the market for colorants becomes more competitive, and good products become the rule rather than the exception, successful companies will need to find additional ways to differentiate themselves.

Our five core values that lay out how we work:

REPORT OF THE SUPERVISORY BOARD

CORPORATE GOVERNANCE

RESPONSIBILITY

At Holland Colours, we are committed to our company, our colleagues, our society and our environment.

Safety

We believe in fostering a safe and healthy working environment for our employees. Our aim is zero accidents. We therefore create the right conditions for all our employees to give their best each day, and we take every opportunity to learn as much as possible from daily practice. In 2020, we introduced the 'Safety Culture Ladder' in each of our divisions to increase our safety awareness.

Sustainability

Our sustainable carrier technology is used to color a wide range of plastics, including those recovered from the Great Pacific Garbage Patch. In addition to the sustainability of our products, we value sustainable processes and human health, and we promote social and economic development in the countries and communities in which we operate. We feel that genuine corporate social responsibility is an integral element in ensuring business continuity and business success.

BY THE CEO

INTRODUCTION CONTENTS ABOUT HCA

REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL

AIMING FOR ZERO ACCIDENTS

We are determined to provide a safe and healthy working environment. We therefore aim for zero accidents. We continuously train our people and work to create the right conditions so each of us can do our best every day.

As part of this, we encourage everyone to report not only accidents and near-misses, but incidents as well. Incidents are things we see or experience that are or could be dangerous, but which thankfully have not led to an accident. Therefore, the more incidents we report, the fewer accidents there will be as it means we can act to prevent them.

THE DRIVERS OF A FUTURE-ORIENTED BUSINESS

COLORING YOUR SUCCESS RESPONSIBLY

Our brand stands for 'Coloring Your Success' by combining knowledge, dedication, passion and skills to enhance our customers' success and the success of their customers. We work collaboratively to create precise color matches, perfect color distribution and enhanced color consistency. We offer consistent and sustainable global production, reliable supply and logistics, top quality R&D and excellent customer care and project support, all to help our customers in growing their business. And crucially, we do this responsibly. We want to color today's world while simultaneously protecting our planet for current and future generations.

OUR DIFFERENTIATORS

We develop existing and new customer relationships into design partnerships.

Our employees are co-owners of the company and we are proud to provide the highest levels of service to our customers.

We do not compromise on regulatory compliance and we maintain the highest quality standards.

We continuously build our competence and strengthen our innovation capabilities.

11 HOLLAND COLOURS ANNUAL REPORT 2020/2021

CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

Focus on Responsibility

SAFETY & SUSTAINABILITY

Responsibility is one of Holland Colours' five core values, along with Teamwork, Proactiveness, Accountability and Competence, and it is something that has been very much top of mind in 2020/2021.

As a Company, we define Responsibility as covering the sustainability of our products and processes, and the safety and health of everyone who works at Holland Colours or comes into contact with our Company or products. In 2020/2021, we introduced a new safety program and took new steps in our sustainability commitment.

SAFETY FIRST

We work in a complex industry involving the use of chemicals that must be treated with respect. We also work in a manufacturing environment filled with heavy equipment. Our goal is to go for zero: zero accidents. In 2020/2021, we reported three accidents more and 13 fewer incidents compared to the previous year.

We are dissatisfied with this result and have further increased our focus and attention on creating safety awareness and behavior.

In 2020, we introduced the 'Safety Culture Ladder' in each of our divisions. The rollout was staggered and very much impacted by the burdens and restrictions placed on the organization by COVID-19. However, despite being unable to move as quickly as we had hoped, we succeeded in laying solid foundations for an upgrade in our safety mindset.

INTRODUCTION BY THE CEO CONTENTS ABOUT REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

FOCUS ON RESPONSIBILITY: SAFETY & SUSTAINABILITY

HCA

THE SAFETY CULTURE LADDER

PROGRESSIVE

Safety is a standard part of contractors' operational processes as well, and safety is ingrained in the thinking and behavior of all employees.

PROACTIVE

4

Safety is a top priority and is treated proactively within the Company's operations. Along with structural investments in raising safety awareness, employees are encouraged to raise unsafe behavior with each other.

CALCULATING

The Company pays attention to health and safety and has clear safety rules, but safety is seen mostly as a senior management task.

REACTIVE

3

The Company generally only tightens safety after something has gone wrong and employees do not generally feel responsible for their own or their colleagues' safety.

PATHOLOGICAL

2

The Company's attitude is that it does not have accidents so does not need to invest in safety.

1

REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD

EMPLOYEE PARTICIPATION REMUNERATION REPORT

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL STATEMENTS OTHER INFORMATION

FOCUS ON RESPONSIBILITY: SAFETY & SUSTAINABILITY

HCA

INTRODUCTION BY THE CEO

CONTENTS ABOUT

THE SAFETY CULTURE LADDER

The Safety Culture Ladder aims to embed a consciously proactive attitude to safety within organizations. The goal is to reduce the number of unsafe situations and so cut the number of accidents and near-misses. Doing so involves both following the rules, plus, and this is key, actively thinking about, spotting and flagging safety risks as people do their work. This approach to safety is all to do with attitude, behavior and culture. Do people feel they can raise what they see as an unsafe situation? Do they recognize potentially unsafe situations? Is safety discussed regularly and do employees feel heard on safety issues? The ladder was originally developed for the construction industry, which employs a lot of onsite contractors, and has five steps. The fifth step is less applicable to Holland Colours and our goal is to achieve Step four: Proactive.

SAFETY DEVELOPMENTS IN THE AMERICAS

The Americas organization worked hard in 2020/2021 to introduce the Safety Culture Ladder. Following a retirement, a new Safety Manager was appointed in the US and the position was redefined as a full-time role. A safety audit was also held to establish an initial benchmark.

COVID-19 inevitably had an impact on the program's roll out. The plant in Richmond moved to staggered shifts and teams were placed in cells. These measures both impacted efficiency and made it impossible to move people between teams. They also limited the ability to run informal safety audits and share safety knowledge easily. The division did however implement housekeeping safety walks in the operations in Richmond and implemented a number of other COVID-19 related safety items.

Looking forward to the easing of COVID-19 restrictions, the division plans to put renewed emphasis on the process of creating a culture change. A key element will be to change the perception of 'incidents' as being a bad thing. In safety culture terminology, an incident is a report of a potential safety issue. Having people report more incidents is therefore good rather than bad as it means they are paying more attention to the issue and acting proactively.

SAFETY DEVELOPMENTS IN ASIA

Introducing the Safety Culture Ladder and combatting COVID-19 were, as elsewhere in the Company, the two main safety themes within Holland Colours Asia in 2020/2021. The Safety Culture Ladder concept received the explicit backing of senior management in Asia, a factor that will help to drive its adoption. Various departments completed selfassessment questionnaires, and the organization developed an action plan based on these. The plant in Surabaya holds safety briefings every morning, the local Occupational Safety and Health Committee meets at least every three months, and subcontractors are also given strict safety briefings before they start work. A number of people have also been trained in the ISO 45001 standard for managing health and safety, and some employees are scheduled to receive safety training and environmental training through external parties.

As elsewhere, Holland Colours Asia took every measure to anticipate and help defeat the COVID-19 pandemic. These efforts included social distancing, departmental separations, emphasizing hygiene, temperature checks for employees and visitors and providing masks for all employees.

SAFETY DEVELOPMENTS IN EMEIA

The EMEIA division launched its Safety Culture Ladder program in Apeldoorn, Szolnok and Gillingham in the second half of 2020 and began by conducting a benchmark.

The division put together an action plan based on five points and the Plan, Do, Check, Act model. The primary aim was to achieve a mindset shift from treating safety as a technical issue to treating it as something that also involves each individual and their general safety awareness:

    1. Focus on safety roles, regulations and safety expectations.
    1. Communicate the rules via posters, memos, departmental meetings and one-to-one meetings to promote the message.
    1. Train people to conduct safety audits or to check equipment.
    1. Audit locations by getting people to look around with a proactive safety mindset all the time, and to speak out if necessary.
    1. Analyze data, actions, incidents and events to shape next year's plan.

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

FOCUS ON RESPONSIBILITY: SAFETY & SUSTAINABILITY

HCA

A follow-up questionnaire in early 2021 found that employees had a better understanding of the regulations and rules, there were more departmental meetings about safety and more incidents were being mentioned.

COVID-19 was, of course, a factor in the rollout of the Safety Culture Ladder in our European facilities. While the extensive and strict precautionary measures the division took helped to increase general awareness of health and safety, they also hindered the implementation of some routine safety protocols.

PUTTING SUSTAINABILITY FRONT AND CENTER

Part of our mission is 'to be recognized as a contributor to a sustainable industry'. This involves working as a co-design partner to create solutions that support our customers in their sustainability goals and, through this, contributing to the creation of a sustainable society.

Sustainability has always been central to our pigment encapsulation technology, but over the last decade we have increasingly felt that we can and should do more. Although we began measuring and reporting our sustainable footprint in 2013 – CO2 emission, waste, safety figures, energy use, raw material use and other criteria – plus creating awareness about the importance of our footprint, we had not yet developed a vision about sustainability at Holland Colours.

At the same time, the perception of sustainability among our customers and society was shifting from a nice-to-have benefit to a must-have requirement. More widely over the last decade, the definition and ambition of sustainability has grown worldwide as the climate change emergency, the circular economy concept and the focus on plastic waste have moved up the political, economic and social agenda. Regulatory changes underline this shift. The impact of these changes is most obvious in the use of colorants and additives for packaging. However, we see the same trend in building & construction and in applications like coatings, sealants and adhesives. Clearly addressing sustainability issues and circular economy requirements is going to be a key issue for the ongoing continuity of Holland Colours.

FROM HAVING A MISSION TO HAVING A VISION

The Company's 2019 strategy review identified recyclability as one of the megatrends that would impact Holland Colours. It was a threat, but it could also offer us an opportunity. Based on this insight, we developed our mission, with its reference to sustainability, and began thinking what our future role could be. For instance, what did 'being sustainable' mean to us as an organization? Where and how could we contribute to improving our sustainability? What could we do for our customers and their customers regarding sustainability? How could we contribute to a circular economy? Creating a sustainability vision would enable us to answer these questions. Doing so would also enable us to align with and respond to wider changes in society. Although we decided to focus on our growth strategy first, the commitment remained.

In 2020 and 2021, we began developing what will be the next step going forward. We talked with other companies and organizations that are passionate about sustainability. We partnered with The Ocean Cleanup to develop a colorant for sunglasses made from plastic reclaimed from the Pacific Ocean. And the Board of Management and senior management held several workshops on the topic. The parameters were that any vision should be challenging but achievable and true to Holland Colours' DNA: our history, mission, core values and our Coloring Your Success brand positioning.

The result was this vision:

"We envision a colorful world in which we are the winning sustainable solution."

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

FOCUS ON RESPONSIBILITY: SAFETY & SUSTAINABILITY

HCA

REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE CORPORATE GOVERNANCE

SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

TURNING THE VISION INTO ACTION

The next step is to embed the vision in the organization and to start to use it to drive our business. The question: where, on what and how should we focus?

Delivering on any strategy requires commitment, which we have, and tools, which we need to develop. The team investigated the sustainability focus of a number of our customers, brand owners and competitors. The parameters for this research were the 17 United Nations Sustainability Development Goals (SDGs). Which of the SDGs did our customers consider to be most important? What about brand owners? Industry peer group? Which of the SDGs did our senior management feel mattered most to them and to their customers?

THE SDGS FOR HOLLAND COLOURS

Based on the findings, the team plotted a heatmap

to show the most common overlaps. Next, they brainstormed the findings and selected six SDGs that they felt were most relevant to Holland Colours internally, as well as to our customers, brand owners and competitors.

These SDGs are:

  • 3 Good health and well-being;
  • 7 Affordable and clean energy;
  • 8 Decent work and economic growth;
  • 9 Innovation and infrastructure;
  • 12 Responsible production and consumption;
  • 17 Partnership.

REMUNERATION REPORT

OUR VALUE

WE ENVISION A COLORFUL WORLD IN WHICH WE ARE THE WINNING SUSTAINABLE SOLUTION

OUR PEOPLE

We protect the safety, health and welfare of HCA employees and offer development opportunities to all. Given our geographical spread, we consider it important to employ nationally.

OUR PROCESSES

Based on the selected SDGs, we defined three focus areas:

We service our customers with products that are produced regionally, and we design our processes to support the sustainable use of energy and raw materials.

OUR PRODUCTS

FINANCIAL STATEMENTS

Together with our customers and partners, we co-create sustainable solutions and develop products that enable recycling, the reduction of food waste and the reduction of energy consumption.

We invest at least 2% per year of our personnel expenses in responsible care for our employees. This investment is used to deliver training, for individual and team development and/or as time that can be spent on local social aid activities.1

By 2030, we will have reduced the CO2 impact of our operational activities by between 30% and 50%.2

We will structurally increase our annual investment in innovation. By 2030, 90% of our revenue will be based on products that contribute to sustainability.3

1 People: historically, expenditure on responsible care has been 1% of personnel expenses.

  • Processes: the baseline for comparison of CO2 emissions per unit sold is 2015.
  • Products: a definition and baseline for comparison for this objective are in development.

CONTINUING THE JOURNEY

For each focus area we will decide what to do from a sustainable perspective. We can also use the focus areas to define new opportunities. Together, the choices we make will help us become the winning sustainable solution to our customers' colorant needs.

Over time, this aspect of sustainability – as a key consideration in making business decisions – will become more pronounced in determining what we do. Sustainability will become not only a long-term goal, but also a series of shorter-term actions along the way. Ultimately, we will redefine 'success' so that it includes sustainability as well as creating shareholder value.

Delivering on our sustainability vision is a journey, and the steps we took in 2020/2021, while important, mark the start of a new phase in our story. The sustainability vision and tools lay the foundation for us to play a more active role in enabling sustainability. They also make it possible to develop a proud story about our contribution. By outlining it here, we are making a commitment to our stakeholders that we, as a Company, are serious about delivering a colorful world in which we are the winning sustainable solution.

FOCUS ON RESPONSIBILITY: SAFETY & SUSTAINABILITY

extraction

biobased feedstock

REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

FIVE-YEAR SUMMARY & INVESTOR RELATIONS EMPLOYEE PARTICIPATION

FINANCIAL STATEMENTS OTHER INFORMATION

We join forces with value chain partners, recyclers, research organizations and NGOs to share our knowledge and resources, working together to curb the plastic pollution problem and create a circular economy. material

ABOUT HCA INTRODUCTION BY THE CEO CONTENTS

REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL STATEMENTS OTHER INFORMATION

REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE SUPERVISORY BOARD

REPORT

EMPLOYEE PARTICIPATION REMUNERATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL STATEMENTS OTHER INFORMATION

HCA

Board of Management

Position Year of birth Nationality Joined Holland Colours NV Appointment to position

Coen Vinke CEO 1963 Dutch May 1, 2018 July 12, 2018

Tanja van Dinteren CFO 1972 Dutch June 1, 2020 July 16, 2020

Eelco van Hamersveld

CTO 1969 Dutch December 1, 2017 July 12, 2018

The Board of Management consists of three members following the appointment of Tanja van Dinteren at last year's Annual General Meeting of Shareholders to fill the vacant CFO position.

ABOUT HCA INTRODUCTION BY THE CEO

CONTENTS REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE CORPORATE GOVERNANCE

SUPERVISORY BOARD REMUNERATION REPORT

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FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

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Introduction

Holland Colours' 2020/2021 financial year turned out to be better than we could have expected at the outset. In April 2020, COVID-19 was starting to push more and more of our markets into what would become a series of lockdowns, sparking widespread fears of global economic instability and recession.

Against this background, our Company performed well. The initial decline in revenues was compensated by the steps we took to control our costs and by the cost-reduction impact of events beyond our control, such as restrictions on travel. Our geographic, product and market mix provided a dynamic buffer to constantly shifting demand over the course of the year, and even though we could not visit our customers easily, or in some cases at all, we continued to serve them well.

In this section of the Annual Report, we look at Holland Colours' performance for the 2020/2021 financial year, shed light on the impact of COVID-19 on our business, and highlight the steps we took to continue our growth ambitions over the longer term.

COVID-19

Our priority at the outset of the COVID-19 pandemic was to first take care of our employees. The divisions took various steps, including introducing new work schemes, and our people acted carefully and responsibly to minimize the chances of the coronavirus entering Holland Colours. This enabled us to continue to supply our customers in line with our agreements.

Overall, we showed our flexibility as an organization through the way we adjusted to the new situation. For example, our employees could not travel, but they did a tremendous job of staying in touch with customers through online media, podcasts, webinars and virtual trade exhibitions. Increasing the use of digital media is in line with our online strategy, but the rollout of this was accelerated by COVID-19. The response from customers was very positive.

We also took several strategic measures in the first half of the year to protect our Company. While the continuity of Holland Colours was never at stake, we considered it wise to be prudent. We therefore suspended planned strategy-related investments in new machinery and software, placed a freeze on new hires and we decided not to pay a dividend. When it was certain that our cash flow was holding up, we distributed an interim dividend in November 2020 and the investment pause was lifted in the second half of the financial year.

Strategic Update

Over 40 years, Holland Colours has grown into a global-local Company with revenues of some € 100 million. This achievement is due to the high engagement levels of our employees and our problem-solving mentality. But the capabilities that got us to this point are not the ones that will ensure we thrive in a changing competitive landscape. While problem-solving and self-direction will remain important, we also need to become more competence-focused (our individual ability to adapt), more proactive, more systematic and more process-oriented.

This is the basis of Growing Together 2023. This growth strategy focuses on growing our presence in defined segments and markets – organic growth – and also pursuing excellence by focusing on the way we work as well as the result. In other words, how we get to a particular goal – launching a product, supporting a new customer or meeting a new customer request, etc. – matters just as much as what we deliver.

STANDSTILL YEAR

2020/2021 was a standstill year in terms of achieving our growth ambitions. Compared to the previous year, revenues declined. We noticed a recovery in the last months of the financial year. The timing and speed of contraction and recovery varied per division and market segment. The Americas had a very strong second half. Asia had a good first half due to stockpiling in some major export markets and, as a consequence of this, a slow second half. In EMEIA, we saw a major downturn in Q1 followed by a recovery from Q2 onwards. Our Innovation Index – the percentage of current revenue from products launched in the last five years – was 12.9%, above our 10% target.

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INTRODUCTION BY THE CEO

"Our overall growth strategy has not changed. We will continue to focus on achieving organic growth and to drive towards excellence."

OF MANAGEMENT

ABOUT HCA

While COVID-19 prevented us from maintaining the upwards revenue growth momentum of previous years, we did resume work on our excellence programs in the second half of the 2020/2021 financial year. Also the planned investment in a new extruder at our plant in Indonesia went ahead, and the new machine is due to come online in early June 2021. We also increased production at our plant in Hungary, where we concentrated the production of Holcoprill for the EMEIA division, and we concentrated Holcopearl® production at our site in the Netherlands. We completed last year's infrastructure modernization at our Hungary site.

UNCHANGED STRATEGY

The world after COVID-19 is likely to involve increased remote working. This can be a positive, but the challenge to our business model is how we support our co-creation approach from a distance. Our customer model is based on co-development, for which we need machine trial hours at the customer. This was not possible in 2020/2021, or much less so than normal. And while experiments in setting up machines remotely did succeed (by having the customer point a camera at a machine while we issued instructions), this is clearly not as effective as being on the spot. It is something we will have to consider going forward, depending on how the world develops post-pandemic.

While we did not meet our growth ambition in 2020/2021, our overall growth strategy has not changed. We will continue to focus on achieving organic growth and to drive towards excellence through the improvement of our internal processes.

Our strategic goals:

STRATEGIC GOALS & OBJECTIVES

STRATEGY 2023

  • Protecting and extending global market positions in packaging
  • Protecting and extending global market positions in building & construction
  • Extending market positions in coatings & sealants, primarily in EMEIA

Our overall objectives:

  • Zero safety accidents
  • Continued revenue growth
  • Innovation index over 10%
  • Return on Sales of at least 10%
  • Return on Investment of at least 15%
  • Solvency remains above 60%

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CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

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FINANCIAL KEY FIGURES

ABOUT

CONTENTS REPORT OF THE BOARD OF MANAGEMENT

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FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

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Financial Performance

2020/ 2019/
Key figures in EUR million 2021 2020 Change
Revenue 96.0 101.5 (5%)
Operating Result from continued operations 12.4 10.8 15%
Net Result from continued operations 9.6 7.9 22%

Revenue for the 2020/2021 financial year was € 96.0 million, a decrease of 5% on the previous year (€ 101.5 million). This included a negative impact (€ 2.2 million) arising from the translation from USD to EUR.

The EMEIA division saw a revenue decline of 6%, and all focus segments were down compared to the previous year. Revenue in Asia was down by 8% in functional currency, primarily due to lower volumes. Revenue growth of 5% in functional currency for the Americas division was the result of higher volumes and higher average sales prices.

The net margin for the group was € 46.2 million, an increase of € 0.5 million on the year before. The margin as a percentage of revenue ended higher at 48%, versus 45% in the previous year. This increase was due to a favorable geographical and product mix.

Operating expenses were € 33.8 million, down € 1.1 million (3%) from the previous year, primarily due to lower travel costs. Labor costs, maintenance and forex-related devaluations of receivables were also favorable compared to the previous year.

The operating result from continued operations was € 12.4 million, versus € 10.8 million for the previous year. The Effective Tax Rate (ETR) is lower than prior years, mainly because of the impact of higher tax exempt income in the US. After revaluing deferred tax assets in line with the adjusted tax regime in the Netherlands and the 'innovation box' incentive program, the ETR was below the legally applicable rate in the Netherlands of 25%. Please refer to Note 11 of the financial statements for a substantiation.

The net result was € 9.6 million (€ 11.00 per share) versus € 7.9 million in the previous year (€ 9.09 per share).

DEVELOPMENTS BY DIVISION EMEIA

The EMEIA division, which covers Europe, the Middle East, India and Africa, experienced a severe dip in the first quarter of the financial year but recovered after the summer. Packaging experienced a bigger downturn than we had initially expected while building & construction performed better than we had thought it would. Coatings and sealants & adhesives showed a decline. The dip in packaging reflected our strong presence in the on-the-go market. This was hit disproportionately by people staying at home because of the lockdowns introduced in Europe. We saw little impact from the UK's exit from the EU. Although revenues fell by 6% compared with the previous year, from € 53.2 million to € 49.8 million, the operating result was better, driven primarily by tight control of costs. Due to product and geo mix differences, the overall gross margin percentage increased from 46.2% to 49.8%.

EMEIA Americas Asia
(Euro millions) (USD millions) (USD millions)
2020/2021 2019/2020 2020/2021 2019/2020 2020/2021 2019/2020
Revenue 49.8 53.2 37.9 36.1 17.2 18.7
Operating result 3.7 3.3 4.5 2.4 3.9 3.9

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Americas

The Americas division experienced strong revenue performance in the B&C market in the second half of the year, driven by people investing in home improvement – window profiles and exterior sidings. Construction also continued. Packaging remained solid in North America, though South America suffered significantly, with revenue down 32%, while Mexico was down 14%.

Our plant in Indiana closed for a week, early in the pandemic, because of a case of COVID-19, and we received assistance amounting to USD 1.2 million under the US government's Payroll Protection Program for the months of May and June.

On the organizational side, we aligned our sales organization with our regional approach and we appointed a new Finance Director.

Overall, revenues rose by 5% compared with the previous year, from USD 36.1 million to USD 37.9 million. Like our other divisions, the Americas division maintained tight control of costs. As a result of this, the overall gross margin percentage increased from 48.5% to 48.9%.

Asia

The Asia division comprises Indonesia and export markets in North Asia, South East Asia, Australia and New Zealand. We therefore saw some significant swings within the region as COVID-19 impacted different countries and markets to differing degrees at different times.

Export markets had a robust first half year with high demand due to pipeline stocking. This fell back in the second half but picked up again at the end of our Q4. Revenues in Indonesia were in line with the previous year, with a stronger second half compensating for a weaker first half. We also won some new customers.

Taken as a whole, the Asia division delivered stable operating results. Revenues fell by 8% compared with the previous year, from USD 18.7 million to USD 17.2 million. Like our other divisions, it maintained tight control of costs. As a result, the overall gross margin percentage increased from 47.9% to 51.8%.

Following the lifting of the company-wide hiring freeze, we recruited a new General Manager for the Asia division and a new Division Controller. The division also began preparing to open a representative office in China. And a planned investment in a new extruder in Surabaya went ahead.

CAPITAL EXPENDITURES

The Company froze capital expenditure in the first half of the financial year. We restarted some planned investments in the second half of the year we were generally limited in what we could do as it was hard or impossible to visit potential equipment suppliers. We did however lay the groundwork to accelerate again when things reopen. Capital expenditure in 2020/2021 was € 1.8 million.

CASH FLOW

Net cash flow came in at € 9.0 million, versus € 0.2 million last year. The higher net cash flow was a result of, among other things, a higher cash flow from operating activities of € 2.0 million, the favorable development of working capital, which amounted to € 3.8 million, a reduction in investments to € 2.3 million, and favorable translation differences on Cash and Cash Equivalents of € 0.6 million. The reduction in income taxes paid is counterbalanced by the higher dividend paid. There were no changes in the company's funding. Except for the liabilities related to IFRS 16, the company remains loan free.

FINANCIAL REPORTING PROCESS

Holland Colours' financial reporting is based on data and formats from the central consolidation system managed by the Corporate Group Controller to ensure systematic operating procedures and data accuracy. Each month, the controllers of the various divisions prepare their financial report based on the monthly YTD results as well as forward-looking data on revenue and margin development. The cost and operating working capital trends are compared to budget targets and prior-year actuals. Financial and business performance are discussed in a monthly business review call with each divisional management team. The consolidated results and summary comments are subsequently sent to the Supervisory Board.

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Outlook 2021/2022

Holland Colours does not normally make forward-looking statements in its Annual Reports. We made an exception last year, because of COVID-19, and this year, too, we can say that while the outlook appeared more stable at the time of writing, there remained a high degree of uncertainty about the kind of world into which we will emerge and what this will mean for the global economy, for our customers and, therefore, our business going forward.

Based on our growth strategy and accompanying internal improvements, plus the journey we have begun towards making sustainability a central driver for our business, we feel there are grounds for optimism. At the same time, we will continue to monitor the development of the COVID-19 pandemic, the market situation, the price of raw materials, the global economic outlook and the effect of our plans and actions.

Organization

The Board of Management consists of a CEO, CFO and CTO, and each member has a clear set of responsibilities, with decisions being taken at either the divisional or Board of Management level.

KEY APPOINTMENTS

The departure of the Company's previous CFO at the end of 2019 left a vacancy. This was filled by the appointment of Tanja van Dinteren. She officially joined the Company as CFO on June 1, 2020, and her appointment was confirmed at the Annual General Meeting of Shareholders on July 16, 2020. This means that the Board of Management is now back at full strength.

The Company made three further key senior management appointments last year: a new Finance Director in the Americas division and a new General Manager and a new Division Controller in the Asia division.

SEARCH FOR TALENT

In general, staff turnover remained relatively low in 2020/2021. An initial recruitment stop introduced at the start of the COVID-19 crisis was later relaxed, but as with many other companies, it remains a challenge for Holland Colours to find the right people with the right skills and competences to match our Company and strategic requirements for the future.

Product Innovation

Our innovation model is based on partnering with customers to co-design color and functional solutions. An increasing number of these solutions are based on open innovation in which we collaborate with customers, suppliers, research institutions, educational institutions and application partners. Together, we develop next-generation iterations of existing products, plus breakthrough solutions inspired by our mission of helping to improve sustainability in our industry and supporting the move to a circular economy.

MARKET OPPORTUNITIES

In 2020/2021, we continued to invest in innovation for the packaging, building & construction, coatings and the adhesives & sealants markets, and these programs are progressing according to plan. While packaging tends to attract the most attention when it comes to the discussion of sustainability and circularity, we see opportunities in our other markets too. The rate of change may be slower, but the challenges are still significant and include coloring recycled materials, improving recyclability, reducing coloring costs and reducing weight. Another opportunity is to educate markets in Asia about the benefits of encapsulated pigments versus dry pigments for people's health, which is something our Asia division is actively working on.

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INTRODUCTION BY THE CEO

ABOUT HCA

CONTENTS REPORT OF THE BOARD

BRAND OWNERS

In 2019/2020, we recruited a second Product Market Manager – for Additives – following our appointment of a Product Market Manager for Dairy Packaging in financial year 2018/2019. Product Market Managers are responsible for talking to brand owners and developing their respective product market segments. The Product Market Managers gather insights into what is happening in markets longer term. Through this, they enable us to think and develop ahead of the curve and prepare our customers to meet emerging trends.

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Last year's launch of a new technology solution for Holcomer products is a case in point. Forthcoming EU regulations will classify titanium oxide (TiO2) as potentially carcinogenic. We have therefore been working to reduce the amount of TiO2 required to make white PET bottles for UHT dairy while also sharing knowledge with our suppliers and customers about the impending changes. The solution we came up with reduces the amount of TiO2 materials to below the new proposed limits while delivering the same performance properties, improving production efficiency and reducing production equipment wear and tear.

INNOVATION PROGRAM

We are rethinking our go-to-market. For instance, we are strengthening our interaction with brand owners – our customers' customers – to further improve the insights and support we can offer our direct customers. And through our Innovation Excellence program, we are optimizing our product development processes while setting concrete targets for hard launches. As part of this, we introduced a rolling launch calendar in 2020/2021. This covers a rolling six-month window.

Last year, despite COVID-19, we successfully introduced the following products to the market:

  • Dazzle Special effects for PVC flooring;
  • Diffuse Additive concentrate for transparent sheets to soften the intensity of LED lighting;

• Holcomer Thermostretch – Sustainable functional color for PET to boost production speed of dairy bottles;

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• TasteGuard Liquid & TasteGuard Ultramax – Additive concentrate for PET to protect the taste of bottled water.

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INNOVATION INDEX

REMUNERATION REPORT

We maintain an innovation index. This rolling list measures the percentage of current-year revenue that came from products launched in the previous five years. The target is above 10%. In 2020/2021 the percentage was 12.9%.

CSR

REPORT OF THE SUPERVISORY BOARD

CORPORATE GOVERNANCE

Corporate Social Responsibility covers several organizational issues, including safety, training and sustainability. Here, we briefly summarize the key developments in these areas in 2020/2021. You can read more on safety and sustainability in the special section about Responsibility, one of our core values, earlier in this Annual Report.

SAFETY

Our employees' safety is our Company's number one priority, and we are determined to provide a safe and healthy working environment. As part of this, we aim for zero accidents. We encourage our employees to report incidents and accidents, to learn from them and to improve our processes and procedures when these do occur. We define an accident as a lost-time injury. A near-miss accident is one that requires medical attention (rather than First Aid), and which may lead to restricted duties for the person involved. An incident is the signaling of a potential accident or near-miss, or an event with potential safety related implications. The reporting of incidents can therefore be seen as a positive sign of general safety awareness and a strong safety culture.

The numbers of accidents rose in 2020/2021 versus the previous year, while the number of near-misses and incidents both fell. Thankfully, the accidents recorded had no structural causes that we know of, but the fact they occurred underlines the need for a program we introduced in 2020/2021 – the Safety Culture Ladder. The aim of the program is to change

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our attitude to safety by encouraging each of us to be more proactive in signaling potential accident or injury risk factors and taking preventative measures. This goes beyond simply 'following the rules.' The program has been embraced by all divisions, though its rollout was slowed by COVID-19. You can read more about it in the section on Responsibility in this Annual Report.

Workplace accidents 2020/2021 2019/2020 2018/2019
Accidents 5 2 1
Near-miss accidents 1 1 4
Incidents 54 66 58

TRAINING AND DEVELOPMENT

As a Company, we continuously train our people and work to create the right conditions for each of us to give our best every day. We are strong supporters of training on the job, with external training and education available as needed. As well as skills-based training (the knowledge needed to do a specific job or operation), we are increasingly looking at supporting wider personal development based on competencies training (knowledge and behaviors that enable someone to be more widely successful within the Company).

This transition is driven by both changing business needs and by the need to attract new talent who see self-development and personal growth as one of the key criteria when choosing an employer. We are going to become more digital, more data-driven, uncertainty will increase, and the world is becoming more complex. We therefore need to prepare ourselves both for what is coming and to attract the next generation of Holland Colours employees. Building our competencies will enable us to learn and act faster as an organization and for each of us to operate more proactively.

Based on this, in 2020/2021, we conducted a small-scale pilot to provide competenciesrelated feedback to around 50 employees. The pilot, called the Better Together Dialogue, was a first step in assessing how we can build talent development and employability into our HR processes. We will now assess the feedback and results to decide how to move forward.

SUSTAINABILITY

In 2020/2021, Holland Colours' Board of Management and senior management began to develop a new sustainability vision and framework as part of our Responsibility core value. The vision that emerged is stretching but ambitious: "We envision a colorful world in which we are the winning sustainable solution."

This sustainability vision reflects our strategic assessment of the key social and environmental issues facing our Company and answers how these relate to our Company. The accompanying framework, which is a work in progress, will provide a tool for making and evaluating product, process, technology and other decisions. It will also provide a guide for the choices and impact each of us at Holland Colours chooses to make, from big things to small. The framework further provides an umbrella for the numerous community outreach programs our divisions operate in the US, Asia and Europe.

You can read more about our new sustainability vision and framework in the Responsibility section of this Annual Report. Figures for emissions, waste and other CSR criteria in 2020/2021 can be found on page 16.

Sustainable innovation

One example of how sustainability and innovation can complement each other can be seen in the work the EMEIA division did to prepare our processes, supply chain and customers to meet forthcoming EU regulations on titanium oxide (TiO2). These regulations come into force in October 2021.

The background is that the EU has classified the inhalation of TiO2 as potentially carcinogenic. As major users of TiO2 in white colorant for PET and PVC, this has implications for Holland Colours, our supply chain and our customers. In 2020/2021, along with ensuring own compliance, we communicated with our suppliers about the upcoming rules. We also took the opportunity to position ourselves as the innovative partner who can help our customers and their brand customers to mitigate the impact of the changes on their waste streams. As part of this, we introduced a new white

colorant, Thermostretch, which contains under 1% titanium dioxide in the final product, making it EU-compliant. This will help brands to avoid recycling fees and improve their products' recyclability. In addition, Thermostretch reduces energy requirements, with obvious sustainability benefits for our direct customers.

Product Stewardship

The ability to take a proactive lead on issues like titanium dioxide reflects our robust approach to product stewardship. Our Product Stewardship team is increasingly recognized as a leader not just by our customers and suppliers, but by brands as well. The team also represents a key pillar in our commitment to sustainability. The team provides product health and safety declarations to customers and translates external regulations into internal advice on how we should prepare to comply with them. In the case of TiO2, the team followed the development of the regulations and interacted with suppliers on how to implement them in their product development, product statements and customer communications. This outreach effort included organizing a special industry webinar in July 2020.

Partnerships

Partnerships form another vital strand in our sustainability vision and in 2020/2021 we continued to leverage these across the full value chain, from raw materials and conversion to machinery, customer quality and R&D. Partnerships enable us to develop know-how and knowledge that we can use to advance existing solutions and develop completely new ones. We also partnered with customers as part of our co-creation business model, and we teamed up with The Ocean Cleanup project to develop a color concentrate for the first product made from their unique drive to clean up the Great Pacific Garbage Patch – a pair of sunglasses.

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Risk Management

Holland Colours' attitude to risk is reflected in our strategic ambition. Our strategy is focused and aims to stay close to our proven core technologies and products, while also incorporating new market trends and innovations. Chief among these is sustainability and recycling. This represents a trend, an innovation driver and a business opportunity for Holland Colours.

When it comes to managing business risk, our primary focus is to grow and protect our global market share in the segments we serve with products that continue to be closely related to those on which our Company was founded. At the same time, we aim to secure profitable growth year on year. This continuity is central to maintaining a sustainable base for our Company's long-term profitability. We secure profitable growth in a variety of ways, including by extending our technology base. This is driven by in-house product innovation and/or third-party partnerships.

Another aspect is to foster business opportunities in neighboring product areas and market segments. This way, we can both enter new markets and extend our know-how in color formulations, additives and applications in ways that are effective and profitable.

Here as elsewhere, our Company culture is an important driver for the successful implementation of this strategy. Holland Colours is a partly employee-owned Company with direct and informal reporting lines and a strong focus on diversity. Our caring culture enables us to meet customer needs with technological and production capabilities that are global in terms of scale and holistic in terms of approach. Holland Colours values collective effort and teamwork, internally and with our customers.

In 2018/2019, we conducted a bottom-up review of our five-year strategy. An external consulting firm guided us through our Product Market Combinations (PMCs). For each PMC, we discussed market potential and risk as well as the best fit/adaptation for Holland Colours' products and services. This review continues to guide our decision-making.

Our divisions, working in close cooperation with our central functions, are responsible for maintaining an effective risk and control environment as part of our day-to-day operations. The directors and controllers of our divisions have signed a statement concerning compliance with the guidelines and procedures that are the basis for financial reporting and internal audits. No significant shortcomings were discovered in Holland Colours' internal risk management and control systems during the 2020/2021 financial year. As a Company, we also regularly evaluate our insurance cover, the premiums we pay and the policy excess that applies.

Cybersecurity is another risk management issue we face. Cybersecurity threats have become part of day-to-day life, including for Holland Colours. The risk of cybercrime is hard to assess, with technology and fraud tactics changing rapidly. As a Company, we update relevant staff and personnel on the various types of fraud to be aware of, such as phishing emails and identity fraud. We believe that ongoing efforts to create awareness of cybercrime risk are paramount in protecting Holland Colours against these risks.

Alongside our efforts to prevent cybercrime, we also ensure we adhere to the laws and regulations on data protection. For example, we have processes in place to ensure compliance with the General Data Protection Regulation (GDPR) for personal data processing. We also use antivirus software and internet blockers to prevent access to unsafe internet sites and we heed advice from our third-party service provider, based on their experiences in the field.

STRATEGIC

Strategic risks refer to elements or trends that could prevent us from achieving our long-term strategic objective.

We continue to see ongoing changes in market requirements. These involve both equipment requirements (faster, more standardization) and product compliance requirements (recycling, environmental legislation, FDA, REACH, NIAS). The risk that Holland Colours is (or is perceived as being) too small to manage these challenges effectively is mitigated by the fact that we supplement our product core with third-party REPORT OF THE SUPERVISORY BOARD

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complementary technology where needed. For example, by forming manufacturing alliances. We also deploy our global marketing activities combined with our unique products, services and know-how to capture the attention of new and existing customers.

Overall, our global presence and strong relationships with key players in both the packaging and building & construction industries continue to drive the development of our product portfolio. To protect our technology, we apply for patents where feasible.

The risk that we lack scale or are seen as lacking scale continues to receive full management attention and we are focused on developing the right products and technologies. Our Chief Technology Officer along with our Innovation Manager and Global Product Market Managers for UHT Dairy and Additives play a central role in mapping our path ahead.

We also closely track the dynamics in what is a competitive landscape. We see, for example, that global players are separating their colorants businesses, acquiring compounders, or teaming up with others. In North America in particular, we see some trends towards concentration in our customer base.

These trends present both challenges and opportunities for smaller players like us that have a global reach serving niche markets based on a service-oriented approach. For instance, there is a trend towards the standardization of technology and machinery among convertors in the packaging industry. Brand owners in this segment are also having a growing impact. As these are global trends, we manage this segment of our business on a global basis where it relates to strategy and product innovation.

One of the risks of being a relatively small player with a global reach is that we could end up stretching our resources too thinly over the globe while at the same time failing to be effective in local markets. Given this, we use different go-to-market models to spread our risk and we remain closely connected to local developments. In the North American region, we work with local sales offices. In EMEIA and Asia, we have dedicated sales representatives in the various countries, in some cases combined with dedicated

distributors. For efficiency reasons, our product supply remains predominantly regional. From time to time, we evaluate the efficiency of the model and its elements and make changes where needed.

COMPLIANCE

These risks refer to insufficient know-how and the measures we have in place to properly manage ever-changing local and international compliance requirements. Compliance is a broad area. In our risk assessment processes, we focus on strictly managing the introduction of new raw materials and on product and production compliance. In the packaging segment, we are subject to audits and reviews by our customers, which helps to keep us close to and aligned with their requirements.

From a preventive perspective, we partner closely with our key customers to interpret new regulations. We achieve this by reformulating products and/or changing our internal operations where needed. The latter may also be prompted by customer audits (mainly in packaging). Our manufacturing sites are ISO-registered and subject to regular audits (except for our site in Richmond, Indiana, in the USA, which uses a self-designed audit system). Research performed for us by an external industry consultant concluded that Holland Colours is usually well-informed and that customers value our active approach to finding solutions.

When it comes to incidents, we take a similarly structured approach to learning from them. Our complaints registration and handling system has achieved outstanding scores in multiple ISO audits for its structure and content. Complaints are discussed promptly by a Quality Assurance team consisting of Sales, Operations, Technical and Quality Management, with follow-up on the elimination of root causes. Product compliance and complaints management are an agenda item at divisional management team meetings, while product liability risk is covered in the agreements with customers and suppliers, and insured through third parties.

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FINANCIAL

CONTENTS

Holland Colours continuously monitors elements that could jeopardize our financial health. The risks that are part of our regular business operations (such as currency and credit risk) are listed in the Financial Risk Management section of the financial statements.

The financial risks related to the funding of the Company are limited. We are debt-free with a standby credit line for incidental need.

OPERATIONAL

Operational refers to risks arising from our operations which would prevent us from achieving our strategic objectives.

An aspect of operational risk relates to security of supply. In other words, our ability to secure the raw materials we need to make our products and serve our customers. With this in mind, we operate a dual supplier strategy for key raw materials so that we mitigate the risk of supply disruption. The current high demand for raw materials means that we face longer delivery times from our suppliers, and we are doing all in our power to prevent this causing inconvenience to our customers.

We have incorporated the scale-up phase as an integral part of projects that relate to new product innovation. All global projects are subject to extensive review by our Chief Technology Officer and subsequent approval by the Board of Management. Special attention is given to staffing and other needs during the scale-up phase. Market launch is prepared under the direct supervision of the Head of Global Marketing during the final phase of a product development project. Coordination between the project leader and Global Marketing begins early, during the test marketing stage.

Given the relatively small size but global reach of Holland Colours, it is essential but also not easy to develop or find and successfully onboard new management members at different levels. This process has the full attention of the Board of Management. We aim to retain long-term employees who know the business and can share the Holland Colours

culture with new members of staff. The latter can, in turn, introduce new ways of working and new technologies.

Declaration of the Board of Management

In accordance with provision 1.4.3 of the Code and Section 5:25c of the Dutch Financial Supervision Act, the Board of Management declares that, to the best of its knowledge:

  • The Report of the Board of Management as included in this Annual Report provides sufficient insights into any deficiencies in the effectiveness of Holland Colours' internal risk management and control systems;
  • The aforementioned systems provide reasonable assurance that Holland Colours' financial reporting contains no material errors;
  • The Report of the Board of Management lists those material risks and uncertainties that are relevant to the expectation regarding Holland Colours' continuity for a period of twelve months following the preparation of the Management Report;
  • The financial statements as included in this Annual Report provide a true and fair view of the assets, liabilities, financial position and profit for the financial year of Holland Colours and the group companies included in the consolidation; and
  • The Report of the Board of Management as included in this Annual Report provides a true and fair view of the situation on the balance sheet date, business development during the financial year of Holland Colours, and of its affiliated group companies included in the financial statements. The Report of the Board of Management describes the material risks to which Holland Colours is exposed.

Apeldoorn, June 3, 2021

Board of Management

Coen Vinke Tanja van Dinteren Eelco van Hamersveld INTRODUCTION BY THE CEO

REPORT OF THE BOARD OF MANAGEMENT ABOUT HCA CONTENTS CORPORATE

GOVERNANCE

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

CORPORATE GOVERNANCE

Holland Colours is a limited liability Company with common shares publicly listed on the Euronext Amsterdam stock exchange.

The Company's management structure complies with Dutch law and has a two-tier structure comprising a Board of Management and a Supervisory Board.

Holland Colours promotes responsible behavior towards society and the environment, while at the same time taking into account the interests of its various stakeholders: employees, shareholders, other capital providers, customers and suppliers. The Board of Management and Supervisory Board are ultimately accountable for giving due consideration to the interests of all parties involved, focusing on the continuity of the Company and long-term value creation for relevant stakeholders, both at present and in the longer term, and are held accountable for the performance of their duties by the Annual General Meeting of Shareholders (AGM). The risk management strategy and the internal control framework play an important role in this process. For a description of these systems, please refer to the section on Risk Management.

Corporate Governance Framework

Holland Colours is incorporated and based in the Netherlands. As a result, our governance structure is based on the requirements under Dutch legislation and the Company's Articles of Association, complemented by internal policies and procedures. Given the worldwide exposure of our business, we conduct our operations in accordance with internationally accepted principles of good governance. Good corporate governance, long-term value creation and engagement are key components of the Holland Colours culture and way of doing business. They are embedded in our core values. Holland Colours endorses the principles of the Dutch Corporate Governance Code (the 'Code'), the content of which is available on www.mccg.nl.

The Code is reflected in the regulations of the Board of Management and the Supervisory Board. In addition, the Diversity Policy and a Policy on Bilateral Contacts with shareholders have been updated, and the Articles of Association of Holland Colours have been aligned with the Code.

The statutory responsibility resides with the Board of Management. This consists of the CEO, CFO and CTO, who convene every two weeks with a formal agenda and a list of action items and decisions made. The Board of Management holds regular meetings with the divisional management teams for monthly business reviews and quarterly updates on major projects. Large product, technology, innovation and capex projects need specific approval by the Board of Management. Cost budgets are approved as part of the annual budget review. During the extraordinary circumstances related to COVID-19, the Board of Management and Divisional Managers participated in regularly digital meetings to discuss, align and act on the actual situation, and the Supervisory Board was kept informed.

The Board of Management is held accountable by the Supervisory Board for defining and implementing the Company's strategy as well as its day-to-day operational management. The members of the Board of Management attend the periodic meetings of the Supervisory Board as well as the regularly update calls. The CEO is the main contact for the Supervisory Board.

ANNUAL GENERAL MEETING OF SHAREHOLDERS

The AGM is an integral part of the Company's governance and its system of checks and balances. The AGM reviews the Annual Report and decides on the adoption of the financial statements, the dividend proposal, the discharge of their duties performed by the members of the Supervisory Board and the Board of Management, and the adoption of the remuneration policy of the Board of Management and the Supervisory Board.

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

CORPORATE GOVERNANCE

The AGM is convened by public notice. The agenda, the notes to the agenda and the procedure for attendance and voting at the meeting are published in advance and posted on the corporate website. Matters proposed for consideration, approval or adoption are dealt with as separate agenda items and explained in writing in advance of the meeting.

These proposals include, where applicable:

  • Adoption of the financial statements;
  • Dividend proposal;
  • Discharge of their liability for the duties performed by the members of the Supervisory Board and the Board of Management;
  • Appointment and reappointment of members of the Board of Management and the Supervisory Board;
  • Remuneration policy of the Board of Management and the Supervisory Board;
  • Appointment of the auditor;
  • Other important matters, such as major acquisitions or the sale or demerger of a substantial part of the Company, as required by law or under the Articles of Association;
  • Authorization of the Board of Management to issue new shares;
  • Amendments to the Articles of Association.

The Company provides options to its shareholders for voting by proxy. Holding shares in the Company on the registration date determines the right to exercise voting rights and other rights relating to the AGM. All resolutions are adopted according to the 'one share, one vote' principle and by an absolute majority of votes, unless the law or the Company's Articles of Association stipulate otherwise.

Holders of common shares that in total represent at least 1% of the total issued capital may submit proposals for the AGM agenda. Such proposals must be adequately substantiated and must be submitted in writing, or electronically, to the Company at least 60 calendar days in advance of the meeting. The draft minutes of the AGM (in Dutch) are made available on the Company's corporate website within three months of the meeting date. The final minutes (in Dutch) are available on the corporate website within six months after the meeting date.

DIVERSITY POLICY

Holland Colours highly values diversity and endeavors to reflect this in the composition of its Board of Management and Supervisory Board. The objective of the Diversity Policy is to enrich the Board of Management's perspective, improve performance, increase member value and enhance the probability of achievement of Holland Colours' goals and objectives. The policy is designed to promote diversity, including in terms of nationality, age, gender, education and professional background. One out of four members of the Supervisory Board is female. The Board of Management currently consists of one woman and two men. Further information about the composition of the Board of Management and the Supervisory Board can be found in the reports of the Board of Management and the Supervisory Board (and its profile).

COMMITTEES

There are two committees of the Supervisory Board: the Audit Committee and the Remuneration Committee.

Audit Committee

The Audit Committee assists and advises the Supervisory Board in its responsibility of supervising the integrity and quality of Holland Colours' financial reporting and the effectiveness of its internal risk management and control systems. The Audit Committee consists of Roland Zoomers (chair) and Jorrit Klaus, who both qualify as financial and risk experts.

Remuneration Committee

The Remuneration Committee ('RemCo') assists and advises the Supervisory Board on matters relating to the selection and appointment of the members of the Board of Management and Supervisory Board. The RemCo also monitors and evaluates the remuneration policy for the Board of Management. The RemCo consists of Aukje Doornbos (chair) and Gert-Hein de Heer.

REPORT OF THE SUPERVISORY BOARD GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

CORPORATE GOVERNANCE

ANTI-TAKEOVER PROVISIONS AND CONTROL

The Company has no specific anti-takeover provisions in place. The fact that the Company has a majority shareholder, Holland Pigments BV, in which the collective employees have a shareholding of approximately 25%, guarantees that the voice of the employees is heard.

BILATERAL CONTACTS

The Company fully endorses the importance of a transparent and balanced provision of information to its shareholders and other parties. In accordance with principle 4.2 of the Code, the Company makes every effort to provide such parties with information that is relevant to shareholders, doing so equally and simultaneously, with due consideration of the exceptions provided for under applicable law. All this is set out in Holland Colours' policy on bilateral contacts with shareholders. The full text of the policy is available on www.hollandcolours.com.

CODE OF CONDUCT

The Holland Colours Code of Conduct reflects our core principles on doing business in a fair and ethical way, complying with local rules and regulations, and treating our employees and business partners with respect. It provides guidelines for avoiding unfair competition and corruption or bribery and states the conditions for a safe and healthy work environment. Through our HP Officials – as appointed by Holland Pigments BV – and other channels, we maintain our unique employee participation model and culture. Holland Colours has a global whistleblower policy, while adherence to the Company core values is part of the annual employee performance review cycle.

Corporate Governance Code

The Supervisory Board and the Board of Management endorse the principles of Corporate Governance as established in the principles and best practice provisions that currently apply to internationally operating listed Dutch companies.

The full version of the Corporate Governance rules of Holland Colours, along with explanatory notes, is available on www.hollandcolours.com. The deviations from the Code relate to the subjects outlined below.

BOARD OF MANAGEMENT

The Code states that the main elements of the contracts of the Company's Board of Management members must be published without delay once the contract has been concluded. As we do not want to single out this type of information, Holland Colours continues to publish this information as an integral part of the Annual Report. The remuneration policy for the Board of Management for the year under review was formulated by the Remuneration Committee. It is further described in the Remuneration Report and Note 29 to the financial statements and will be proposed to the AGM for approval. Since Holland Colours does not offer remuneration in the form of options, the provisions governing options do not apply.

SUPERVISORY BOARD MEMBERS

As long as Holland Pigments BV holds an interest of at least one-third of the Company's issued share capital, it is entitled to nominate one member of the Supervisory Board.

The Supervisory Board has established a Remuneration Committee and an Audit Committee. In deviation from Article 2.3.4, the chair of the Supervisory Board is also chair of the Audit Committee. This is on account of his expertise. The duties of the selection and appointment process are performed by all members of the Supervisory Board. The remuneration of the members of the Supervisory Board is set by the AGM.

INTERNAL AUDIT FUNCTION

The internal audit function assesses the design and operation of the internal controls and the risk management system. Due to the size of the Company this function is fulfilled, in deviation from Article 1.3, by the Group Controller. The Supervisory Board evaluates annually if it is necessary to establish an internal audit department and includes the conclusions in the report of the Supervisory Board.

COMPANY SECRETARY

Holland Colours does not have an official Company Secretary. This position is fulfilled by the legal and governance function at the head office level, in line with the lean and effective organizational structure.

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

CORPORATE GOVERNANCE

CONFLICTS OF INTEREST

As Holland Pigments BV is a majority shareholder in Holland Colours, with all employees of Holland Colours having shares in Holland Pigments, any transactions between Holland Pigments and the Company that are of material significance are subject to approval by the Supervisory Board.

SHAREHOLDER POWERS

For practical reasons and because of the costs involved, the provision stipulating the option for shareholders to follow meetings with investors and analysts and presentations and press conferences in real time is not observed. All relevant information is immediately published on the Company's website. There have been no substantial changes to the corporate governance structure. The alignment with the Dutch Corporate Governance Code is published on the Company website. Any future substantial changes will be submitted to the AGM.

The AGM held on July 16, 2020, authorized the Board of Management to acquire shares in the Company for a period of 18 months, up to January 16, 2022, subject to the approval of the Supervisory Board. The acquisition price must be between the amount equal to the nominal value of the shares and the amount equal to 110% of the share price, whereby the share price will be: the highest average share price on each of the five trading days prior to the acquisition date in accordance with the Daily Official List of Euronext Amsterdam.

All documents related to the implementation of the Dutch Corporate Governance Code can be found in the Investor Relations section in the paragraph on Corporate Governance on our website. This includes the profile, regulation and schedule of retirement by rotation for the Supervisory Board, regulations of the Audit Committee and the Remuneration Committee, the Diversity Policy and the Policy on Bilateral Contacts with shareholders, the Remuneration Policy of the Board of Management, the Remuneration Policy of the Supervisory Board, the Company's Articles of Association, the Whistleblower Policy, Holland Colours' Insider Dealing Policy and the minutes of the Annual General Meetings of Shareholders.

Prevention of Insider Trading

In compliance with the Dutch Financial Supervision Act, Holland Colours has adopted internal regulations regarding investments in the Company's shares, share ownership and preventing the abuse of insider information. Moreover, the duty of disclosure and the relevant best practice provisions of the Corporate Governance Code have been incorporated into these internal regulations where applicable.

These internal regulations apply to the Supervisory Board, the Board of Management and local managers and a circle of employees, as well as to a number of advisors. The Compliance Officer maintains a register, supervises compliance with the internal regulations and liaises with the Netherlands Authority for the Financial Markets (AFM).

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE
BY THE CEO HCA OF MANAGEMENT GOVERNANCE

REPORT OF THE SUPERVISORY BOARD GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL STATEMENTS OTHER INFORMATION

CORPORATE GOVERNANCE

Interests of Members of the Supervisory Board and the Board of Management

At March 31, 2021, the Supervisory Board members and the members of the Board of Management owned the following shareholdings, which are held as long-term investments:

In Holland
Colours NV
In Holland
Pigments BV
March 31, 2021
Supervisory Board
Roland Zoomers 0.00% 0.00%
Gert-Hein de Heer 0.00% 0.17%
Aukje Doornbos 0.00% 0.00%
Jorrit Klaus 0.00% 0.00%
Board of Management
Coen Vinke 0.00% 0.11%
Tanja van Dinteren 0.00% 0.00%
Eelco van Hamersveld 0.00% 0.08%
March 31, 2020
Supervisory Board
Roland Zoomers 0.00% 0.00%
Gert-Hein de Heer 0.00% 0.17%
Aukje Doornbos 0.00% 0.00%
Jorrit Klaus 0.00% 0.00%
Board of Management
Coen Vinke 0.00% 0.05%
Eelco van Hamersveld 0.00% 0.05%

INTRODUCTION BY THE CEO CONTENTS

REPORT OF THE BOARD OF MANAGEMENT

ABOUT HCA

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL STATEMENTS OTHER INFORMATION

REPORT OF THE SUPERVISORY BOARD

REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD

REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS STATEMENTS OTHER INFORMATION

FINANCIAL

Supervisory Board

Position Year of birth Nationality Date of initial appointment Term of office Additional positions

Aukje Doornbos

Solutions

Member 1979 Dutch July 9, 2015 2019 – 2023 (second term) • Managing Director Covestro Energy Curable

Roland Zoomers

Chairman 1950 Dutch July 9, 2015

  • Director Mandaat Investments BV
  • Member Supervisory Board Vermeulen Group BV

2019 – 2023 (second term)

Jorrit Klaus Member 1969 Dutch October 26, 2017 2017 – 2021

• Managing Director Synres BV

Gert-Hein de Heer

Deputy Chairman

1964 Dutch July 12, 2018

  • 2018 2022 • Board Member Holland Pigments BV
  • Chairman Stichting Administratiekantoor 's-Heerenhove Heerde
  • Board Member Stichting Grafica
  • Board Member Peerwith BV

HCA

CORPORATE GOVERNANCE SUPERVISORY BOARD

REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

REPORT OF THE SUPERVISORY BOARD

Last year was one that history will not forget, and the Supervisory Board would like to begin this Annual Report by thanking all our employees for their motivation and determination to help the Company, our colleagues and our customers through this difficult time. We also want to express our sympathy if you have family members or friends affected by COVID-19; please know that our thoughts are with you.

COMPOSITION OF THE SUPERVISORY BOARD

The financial year 2020/2021 saw no changes in the composition of the Supervisory Board. However, the first four-year term of Jorrit Klaus is set to end this year. As he brings substantial industrial experience to Holland Colours, we propose to reappoint him at the forthcoming Annual General Meeting of Shareholders on July 15, 2021.

The board has four members, which we believe to be in proportion to the size of the Company. The board has two sub-committees – the Audit Committee and the Remuneration Committee – and each comprises two different board members.

The size of the board does raise one issue: our non-alignment with current Dutch guidelines and planned future law on diversity and female representation in senior management. At present, we have one woman on the Supervisory Board, representing 25% of the total. The guidelines call for at least one-third female representation. Given that we do not want to increase the size of the Supervisory Board, we have decided to maintain the current balance.

COMPOSITION OF THE BOARD OF MANAGEMENT

The only change in the Board of Management during the past financial year was the confirmation at last year's shareholders' meeting of the appointment of Tanja van Dinteren as Chief Financial Officer.

Tanja joined us at a time when travel was not permitted. Despite being unable to visit our divisions and meet people face to face, we believe that she has made a great start. She fits into both the Board of Management team and the wider Holland Colours culture, and she adds to the diversity of experience and key capabilities within our Company.

BOARD MEETINGS AND CONTACTS

Together, the Supervisory Board and Board of Management met six times in compliance with the COVID-19 rules on group size. We extensively discussed the impact of COVID-19 on financial and market developments, on our colleagues and how they were coping, on ongoing strategic programs and on plans to develop a sustainability vision for the Company.

The Supervisory Board held more frequent contact with the Board of Management in 2020/2021 than it would in a normal year. During the first six months of the COVID-19 pandemic, we were informed about developments on a monthly basis. We reduced this frequency once it became clear that the situation was under control and that the Company's financial situation was not under pressure. At that time, we also decided to declare an interim dividend.

The Supervisory Board held one face-to-face meeting in 2020/2021, to discuss its own composition and relationships, its relationships with the main shareholders, the Company's longer-term outlook and the performance of the Board of Management. This meeting was held in compliance with the applicable Dutch COVID-19 rules.

DEVELOPMENTS AND STRATEGY

In terms of developments and strategy, Holland Colours had to delay some of its planned strategic actions because of the special market circumstances resulting from COVID-19. Management learned a lot about its markets in 2020/2021, about the resilience of the organization and about the capabilities of its people. Of course, the dominant consideration was to counter the effects of the COVID-19 pandemic and how to ensure proper service to customers.

The start of the last financial year, in April 2020, coincided with the first economic shocks as countries around the world went into various degrees of lockdown. The Company's first action was to take steps to ensure the health and safety of its employees. The next consideration was how to maintain operations as best as possible. It is a huge compliment to everyone that they adapted so well and stuck to the strict procedures that were

SUPERVISORY BOARD

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

REPORT OF THE SUPERVISORY BOARD

introduced. As a result, there were few COVID-19 cases among Holland Colours employees, and all locations maintained production at the desired levels.

Last year we anticipated that the spread of industries, markets and the applications for which Holland Colours' products are used would provide a buffer against the worst of what was then an unknown and unprecedented situation. This proved to be true, with the packaging market benefitting from strong food and household-related demand but on the other hand struggling with the on-the-go market and the building & construction markets rebounding after an initial fall. In last year's Annual Report, we noted that Holland Colours was financially healthy, had a strong balance sheet, no loans and extensive credit facilities. This continues be the case.

All divisions and all segments contributed to the healthy overall result. The trend to use recyclable plastics continued and in response Holland Colours began developing a cohesive 'sustainability vision'. This aims to both pull together its current sustainability credentials and to lay the foundations to give sustainability a central position in its behavior as well as in its product, production, supply and other decision-making processes.

The Company took steps to keep operational costs under control and it reduced or paused investment in longer term strategic programs, such as IT improvement and investments in new production technologies. These were short-term decisions taken to protect its finances in an unpredictable situation. The Company resumed these investments in the second half of the financial year and will, wherever possible, accelerate these planned investments in the 2021/2022 financial year. The Supervisory Board does not believe that the pause will have any structural impact for the longer term.

In general terms, Holland Colours continues to benefit from the fact that demand for its products in the major markets in which it operates, remains relatively strong in all areas. The Company's employees continued to give their best to keep the Company working well and supporting its customers in what have been and remain difficult conditions for everyone.

We expect that in 2021/2022, the organization will be able to refocus on its strategic growth priorities to grow in niche markets, invest in IT and new technologies, and that it will be able to begin the process of building its emerging sustainability vision into the fabric of the business. All these steps will contribute to long-term value creation for the Company.

RISK MANAGEMENT

As with the Company's strategy, COVID-19 dominated the discussions with the Board of Management about the financial, operational, compliance and strategic risks within Holland Colours.

One thought-provoking conclusion to emerge from the COVID-19 pandemic was to remind us that risk extends beyond our own organization. We naturally tend to consider risks and risk management in terms of our own operational environment. But, as COVID-19 has shown, risks can come at you suddenly and unexpectedly from far beyond your own field of control. The good news is that COVID-19 has proven that Holland Colours' conservative and strong financial structure is a major asset in effective risk management.

As in other years, but with arguably more rigor because of the exceptional uncertainties, the Board of Management and Supervisory Board considered the Company's exposure to major accounts and customers. Please refer to the Risk Management section in the report of the Board of Management for a complete overview, including risk-mitigating measures.

The financial statements 2020/2021 that are included in this Annual Report have been audited. The findings of the audit were discussed with the Audit Committee and, subsequently, with the full Supervisory Board in the presence of the Board of Management and the auditor. PwC Accountants NV has issued a management letter and Board Report on the 2020/2021 financial statements and provided certain recommendations for improvement, which are being implemented.

HCA

CORPORATE GOVERNANCE SUPERVISORY BOARD

REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

REPORT OF THE SUPERVISORY BOARD

PERFORMANCE EVALUATION

As well as periodically evaluating its own performance, the Supervisory Board also evaluates the performance of the Board of Management and, occasionally, as in the last financial year, recommends changes, in this case to the way Board of Management is remunerated.

We refer to the Remuneration Report for the introduction of a Long-Term Incentive Plan for the Company.

ALLOCATION OF DUTIES

The allocation of duties and procedures in the Supervisory Board are set out in the Regulations for the Supervisory Board and its committees. The profile required to become a member of the Supervisory Board and a schedule of retirement from the board are available on Holland Colours' website. Provision 2.1.5 of the Dutch Corporate Governance Code stipulates that a diversity policy must be in place and this will continue to be considered for future appointments, with quality remaining the most important criterion.

In accordance with provision 2.1.7 of the Dutch Corporate Governance Code, all members of the Supervisory Board are independent of the Company, except Gert-Hein de Heer, who is the Supervisory Board member proposed by Holland Pigments BV.

COMMITTEES

Both the Audit Committee and the Remuneration Committee held a number of meetings during the last financial year.

The most important subjects discussed during the Audit Committee meetings included monitoring the Board of Management regarding financial developments, the funding of the Company, the use of information and communication, including risks relating to cybersecurity and the Company's tax position and policy.

The Audit Committee further discussed the plans to update Holland Colours' IT systems, especially regarding data management and information management to support improved business analysis.

The Remuneration Committee discussed the remuneration levels of the Board of Management versus market trends, its transparency and the Company's remuneration policy as a whole. The remuneration of the Board of Management comprises a fixed and a variable component. The variable component consists of a bonus plan that is linked to financial and non-financial targets.

The Remuneration Committee discussed the introduction of a Long-Term Incentive Plan for the Board of Management. Planned to come into effect in financial year 2022/2023, this will alter the nature of the variable bonus element in board members' remuneration. The move is in line with guidelines set out in the Dutch Corporate Governance Code of which the underlying principle is to further and actively encourage the creation of financial shareholder value, to increase innovation and to foster sustainability. Please see under Performance Evaluation, above, and the Remuneration Report for more information.

For financial years 2020/2021 and 2021/2022, the variable bonus scheme will continue to operate unchanged. The bonus is capped at three times the monthly salary, subject to the achievement of agreed targets. In addition to this bonus, the members of the Board of Management are entitled to a profit-sharing plan. This plan applies to all the group's employees and is linked to the return on investment of Holland Colours NV and the net operating result of the division of the employee concerned. The payment under the profit-sharing plan is capped at one and a half times the monthly salary. Where applicable, variable pay for the previous year is paid in July of the following year.

We believe that the remuneration of the Board of Management is in line with Dutch market conditions. The details of the remuneration of the Board of Management and the Supervisory Board are stated in the Remuneration Report and Note 29 to the financial statements, Related Parties.

REPORT OF THE SUPERVISORY BOARD

CONTENTS

INTRODUCTION BY THE CEO

"The packaging market benefitting from strong food and household-related demand but struggling with the on-the-go market and the building & construction markets rebounding after an initial fall."

REPORT OF THE BOARD OF MANAGEMENT

ABOUT HCA

LOOKING FORWARD

The Supervisory Board would like to express its great esteem for Holland Colours' management at all levels who have successfully kept the Company running throughout the COVID-19 pandemic.

The events of the last year confirmed that Holland Colours' local organizations are extremely capable and flexible when it comes to quickly adapting to major changes in their operational environment. The organization's ability to quickly adapt to major changes and threats, proved to be a boon amid the COVID-19 pandemic.

Something COVID-19 reminded us of is that Holland Colours is a multinational when it comes to geographic reach and a mid-sized Company when it comes to absolute scale, especially locally. This makes it important to ensure we have all the competences we require in all our local organizations, times like these show the value of having very good HR people, financial controllers, marketers and others in place.

Another learning point of COVID-19, and not just for Holland Colours, is that companies can manage and conduct business differently. Online meetings are less spontaneous, and certainly cannot replace all one-to-one meetings, but at the same time we have learned that remote, online meetings are effective, with the added bonus of offering financial, climate, time-saving and other benefits.

The Supervisory Board places a high priority on the sustainability vision of the Board of Management that was initiated during this financial period. The Supervisory Board believes that sustainability will have a major impact on the industries that Holland Colours serves and that, approached with the right mindset, will offer important opportunities for Holland Colours going forward. As a board, we are fully committed to supporting Holland Colours to implement this vision.

We thank all customers, suppliers, shareholders and employees for their continued support and trust in our Company.

Apeldoorn, June 3, 2021

Supervisory Board

Roland Zoomers, Chairman Gert-Hein de Heer, Deputy Chairman Aukje Doornbos Jorrit Klaus

REMUNERATION REPORT REPORT OF THE SUPERVISORY BOARD

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

Members of the Board of Management have a change-of-control arrangement and in the case of an early termination of their contract they are covered by a severance provision of six months' gross base salary. This is in accordance with the Dutch Corporate Governance Code. Holland Colours does not provide any personal loans, guarantees or advance payments to

REMUNERATION REPORT

Remuneration of the Board of Management

Holland Colours' remuneration policy is designed to attract, motivate and retain qualified top management who will enable Holland Colours to achieve its strategic and operational goals. Their remuneration is guided by the Remuneration Committee. This advises the Supervisory Board on the formulation of the remuneration policy and on the level of the individual remuneration of the Board of Management.

Dutch Law incorporates the EU Shareholders' Rights Directive. Therefore, the Company's Remuneration Policy has been adapted so that it is in line with this. However, the change in legislation entailed no material changes to the Company's existing remuneration policy or its application. On July 16, 2020, the Annual General Meeting of Shareholders (AGM) adopted this updated version of the Remuneration Policy in line with the new legislation (Article 2:135a DCC) and gave a positive advice concerning the remuneration report 2019/2020. The Remuneration Policy is evaluated at least once every four years. For more information about Holland Colours' Remuneration Policy, please visit the corporate website.

This remuneration report referred to in Book 2: 135b DCC for 2020/2021 will be put before the AGM to be held on July 15, 2021 for an advisory vote.

REMUNERATION FRAMEWORK

The remuneration policy is intended to encourage enterprising behavior. At the same time, it must also be in reasonable proportion to the remuneration of the other management personnel. Holland Colours' remuneration policy is appropriate to its identity and strategy and is result-oriented and straightforward in its application. It also takes account of the social context, the corporate governance structure and the interests of Holland Colours stakeholders. Apart from the 75% of the profit share that is vested in Holland Pigments shares, Holland Colours does not provide for long-term variable remuneration in the form of financial instruments such as shares or options. The development of Holland Colours' share price is not an element in the remuneration policy. The Company does however

provide variable remuneration to reflect short-term achievements. These payments will change in 2022/2023, when they will be partly transformed to a Long-Term Incentive Plan. This move reflects a change in the Dutch Corporate Governance Code. See the explanation under Scenario Analyses for more information.

Holland Colours benchmarks the salaries of the Company's senior management with the support of a third party, when applicable. We strive to offer compensation at the median level compared to companies of similar size, international scope and complexity and located in the same geographical area. The salaries of our employees are reviewed annually, and we conduct a job evaluation and rating process. In adopting this approach, Holland Colours ensures fair pay compared to other comparable companies.

In 2020/2021, the internal pay ratio was 10.65 (2019/2020 10.36) based on the annual total remuneration of the CEO and the average total remuneration of all other full-time employees, as reported in accordance with IFRS, excluding discretionary elements.

The remuneration of the members of the Board of Management consists of:

  • A fixed gross annual salary including the statutory Dutch 8% holiday allowance;
  • Pension based on a defined contribution system;
  • Other employment benefits (reimbursement of specific expenses or contribution and a company car):
  • Variable remuneration: in cash for short-term achievements (one year);
  • Profit-sharing.

Claw-back and ultimate remedial provisions are subject to the Dutch Civil Code.

ABOUT HCA INTRODUCTION BY THE CEO CONTENTS REMUNERATION

REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

REPORT OF THE BOARD OF MANAGEMENT ABOUT

CORPORATE GOVERNANCE REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL STATEMENTS OTHER INFORMATION

REMUNERATION REPORT

the members of the Board of Management. The Supervisory Board sets financial targets and individual non-financial targets for the Board of Management annually. These targets are based on the overall strategic group objectives for the financial year.

Both the financial and the non-financial targets that come into consideration for a bonus payment constitute 50% of the maximum possible variable remuneration, subject to a maximum of three months' salary, equivalent to 25% of the gross annual salary. These factors are subdivided into performance criteria. The financial targets are related to Revenue, Return on Sales and Operating Working Capital. The non-financial targets relate to specific strategic objectives and initiatives, specific KPIs and the development of the organization.

The Board of Management also participates in the employee profit-sharing plan according to the general profit-sharing scheme for all employees. Targets set for this are measured annually. The benefit to a member of the Board of Management depends on the Return on Investments for Holland Colours. The basis is the monthly gross compensation excluding holiday allowance, to a maximum remuneration of one and a half months, equivalent to 12.5% of the gross annual salary. The Board of Management receives 75% of this profit-share in shares of Holland Pigments, main shareholder and subject to the applicable terms and conditions, and 25% in cash. Depending on the level of achievement of the targets, the total variable remuneration can add from a minimum of 0% to a maximum of 37.5% to the gross annual salary.

For 2020/2021, the Board of Management has achieved the bonus targets for 94%. The ROI of Holland Colours Group is 32.6%. This means that the members of the Board of Management will receive profit-sharing of 1.5 months of which 75% will be received in shares of Holland Pigments.

SCENARIO ANALYSES

The Supervisory Board and the Remuneration Committee use scenario analyses in the formulation and establishment of the remuneration of the Board of Management as stated in principles 3.1 and 3.2 of the Corporate Governance Code. The scenario analyses are

made to determine the long-term effect of the level and structure of the Board of Management's variable remuneration. The Remuneration Committee evaluates the total remuneration of the Board of Management each year to ensure that the package continues to be competitive and offers appropriate incentives.

COVID-19 emerged as a factor in the Company's planning around the time the financial scenarios for the then coming year were in the process of being set. Based on the expected shock to the world economy and the uncertain impact this would have on Holland Colours, the financial scenarios set for the Board of Management for financial year 2020/2021 were adjusted downwards in the period March-April 2020. As it turned out, the impact was ultimately less than initially feared. As a result, management overdelivered against the scenarios that had been set.

At the Annual General Meeting of shareholders on July 16, 2020, the Company proposed not to distribute a dividend from the record year 2019/2020 because of the uncertain economic situation going forward. As it became clear that the impact of the pandemic on Holland Colours would be less than feared, an interim dividend was paid in November 2020 following the publication of the half-year results on October 27, 2020.

INDIVIDUAL REMUNERATION OF THE BOARD OF MANAGEMENT

(amounts x € 1,000 unless stated otherwise)

Fixed Variable Total
Board of Management remuneration remuneration remuneration
Base
salary
Pension
plan
Variable Proportion of
variable
remuneration (in %)
Coen Vinke CEO 329 26 99 454 22
Tanja van Dinteren1 CFO 162 10 56 228 25
Eelco van Hamersveld CTO 190 20 53 263 20
Total 681 56 208 945 22

1 Included for 10 months.

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

REMUNERATION REPORT

CHANGES IN THE REMUNERATION PER MEMBER OF THE BOARD OF MANAGEMENT AND COMPANY PERFORMANCE

ABOUT HCA

(amounts x € 1,000 unless stated otherwise)

Annual change Fixed and variable
2020/21 19/20
> 20/21
18/19
> 19/20
17/18
> 18/19
16/17
> 17/18
Board of Management remuneration
Coen Vinke (CEO) 454 (2) 38
1
Tanja van Dinteren (CFO) 228
2
Eelco van Hamersveld (CTO) 263 4 29
Company performance
Organic revenue growth (in %) (5%) 12% 9% 8% 5%
EBITDA 15,475 13,677 10,672 10,186 9,150
EPS (in € x 1,00) 11 9 7 7 6
Average remuneration on a full-time
equivalent basis of employees (2) 4 3 (3)
Number of employees of the group 436 425 419 413 411

1 Included for 11 months.

2 Included for 10 months.

Introduction of a Long-Term Incentive Plan

While not applicable to the 2020/2021 financial year, the Remuneration Committee is working on the introduction of a Long-Term Incentive Plan for the Board of Management. The idea is to transform part of the current variable payment into a long-term incentive, and the timetable is to use financial year 2021/2022 to establish benchmarks, with the change going live from the 2022/2023 financial year.

The move to include a long-term incentive element in the payment to the Board of Management reflects guidance set out in the Dutch Corporate Governance Code. By encouraging the establishment of long-term incentives, the Code aims to stimulate long-term value creation in three areas: finance (shareholder value), innovation and sustainability. Long-term goals are defined as being three to five years ahead, though longer is also possible, and performance payments can be made at the end of the period or at milestone points en route. As Holland Colours has always thought long-term, this change aligns how the Board members are rewarded with the existing commitment to shareholder value, innovation and improving sustainability.

Remuneration of the Supervisory Board

The Dutch Act implementing the revised Shareholders Directive also includes a requirement to establish a remuneration policy for the Supervisory Board. The remuneration of the members of the Supervisory Board encourages them to perform their role well and does not depend on Holland Colours' results. The remuneration reflects the time spent and the responsibilities relating to their position. A remuneration benchmark is evaluated on a regular basis to establish whether the remuneration of the members of the Supervisory Board is still appropriate or requires adjustment. The remuneration does not include the award of shares or options on shares. Holland Colours does not provide any personal loans, guarantees or advance payments to the members of the Supervisory Board.

The Supervisory Board proposes the remuneration of the Supervisory Board as follows: fixed remuneration per financial year of € 38,000 for the chair and € 26,000 for each other member of the Supervisory Board. These remunerations are not subject to any general adjustment for inflation. The AGM held on July 16, 2020 adopted the Remuneration Policy of the Supervisory Board. Any changes to the compensation of the Supervisory Board will be proposed to and so subject to the approval of the Annual General Meeting of Shareholders.

REMUNERATION
EMPLOYEE
FIVE-YEAR SUMMARY
FINANCIAL
OTHER
BY THE CEO
HCA
OF MANAGEMENT
GOVERNANCE
SUPERVISORY BOARD
REPORT
PARTICIPATION
& INVESTOR RELATIONS
STATEMENTS
INFORMATION REPORT OF THE CORPORATE REPORT OF THE BOARD ABOUT INTRODUCTION CONTENTS
--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ------------- -- -- -- --------------- ----------- --------------------- ------- -------------- ----------

REMUNERATION REPORT

CHANGES IN THE INDIVIDUAL REMUNERATION OF THE SUPERVISORY BOARD OVER THE LAST 5 YEARS

(amounts x € 1,000)

Annual change 2020/21 19/20
> 20/21
18/19
> 19/20
17/18
> 18/19
16/17
> 17/18
Roland Zoomers 38 6
Gert-Hein de Heer 26
Aukje Doornbos 26
Jorrit Klaus 26
Total 116 6

REMUNERATION REPORT

PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

EMPLOYEE PARTICIPATION

Our shares are traded on the Euronext Amsterdam stock exchange. Our employees participate in Holland Pigments BV, a Dutch-based investment Company, which in turn owns the majority (50.45%) of the shares in Holland Colours.

Stability, Continuity and Independence

The goal of this majority shareholder is to promote the stability, continuity and independence of Holland Colours, including effective employee participation within the Holland Colours Group.

Every employee is a co-owner, and owners are aware that the first step to success is adding value for our customers. Employee participation encourages teamwork, proactiveness and accountability. Being a shareholder means having shared goals, responsibilities, rewards and commitment.

In addition to the employees of the Holland Colours Group, four main shareholders participate in Holland Pigments. These main shareholders endorse the importance of the employee-shareholder model and actively support this.

The management of Holland Pigments BV consists of a one-tier board. The collective shareholding of employees (around 25%) is represented by a non-executive board member, who is an employee of Holland Colours. This person is elected by the Company's employees every four years. The Board of Holland Pigments BV is currently composed of a chair (rotates each year), four non-executive members and an executive director.

Holland Pigments Officials

The non-executive board member for employee-shareholders and the executive director of Holland Pigments are jointly responsible for effectively implementing the employeeshareholder model. To support this, each Holland Colours site elects and appoints its own Holland Pigments Official. This person liaises between the employees of Holland Colours and the Holland Pigments board. These officials also attend Holland Pigments' Annual General Meeting of Shareholders. The non-executive board member for employee-shareholders and the executive director of Holland Pigments visit the various Holland Colours sites regularly to discuss employee participation.

1 Inventories + trade accounts receivable -/- trade accounts payable.

2 Property, plant & equipment, intangible assets, other investments -/- non interest bearing current liabilities.

3 Sum of long-term financintg, translation differences on cash and cash equivalents and derivatives.

4 Equity as % of balance sheet total.

5 Operating result as % of the invested capital.

50 HOLLAND COLOURS ANNUAL REPORT 2020/2021

Number of shares outstanding 860,351 860,351 860,351 860,351 860,351

FIVE-YEAR SUMMARY

ABOUT HCA

INTRODUCTION BY THE CEO

CONTENTS

IN MILLIONS OF EUROS, UNLESS STATED OTHERWISE

2020/21 2019/18 2018/19 2017/18 2016/17 2020/21 2019/18 2018/19 2017/18 2016/17
Income statement Statement of cash flows
Revenue 96.0 101.5 90.9 83.5 77.5 Cash flow from operating activities 14.5 7.8 7.7 3.3 7.2
Operating result before depreciaton Investments (2.0) (4.2) (2.9) (2.5) (3.6)
and amortisation (EBITDA) 15.5 13.7 10.7 10.2 9.1 Dividend (3.9) (3.0) (2.9) (2.6) (1.9)
Depreciation of property, plant, Other financial activities 3 0.3 (0.5) 0.2 (0.4) (1.0)
equipment and intangibles (3.1) (2.9) (1.9) (2.0) (1.9) Net cash flow 9.0 0.2 2.1 (2.2) 0.7
Operating result 12.4 10.8 8.8 8.2 7.2
Interest (0.1) (0.1) (0.1) (0.1) Revenue per division
Income tax (2.8) (2.8) (2.3) (2.2) (1.7) EMEIA 49.4 53.2 48.9 43.9 39.1
Result of discontinued operations (0.0) (0.2) (0.1) (0.2) Americas (in USD) 37.9 36.1 32.4 34.1 31.6
Net result 9.6 7.9 6.1 5.9 5.2 Asia (in USD) 17.2 18.7 17.2 14.0 11.6
Statement of financial position Ratios
Total assets 68.7 63.2 57.8 50.2 49.4 Return on Sales (ROS) 12.9% 10.6% 9.6% 9.8% 9.3%
Total equity 50.6 47.1 41.8 36.7 35.9 Solvency 4 73.6% 74.5% 72.3% 73.1% 72.7%
Interest-bearing debt Return on Investment (ROI) 5 32.6% 27.0% 24.0% 25.2% 24.2%
Working capital 1 19.6 21.3 19.4 17.2 14.3 Working capital in % of revenue 20.4% 21.0% 21.3% 20.6% 18.5%
Invested capital 2 38.1 39.9 36.6 32.6 29.7
Cash 16.6 7.7 7.4 5.3 7.5 Market capitalisation as at March, 31 106.7 68.8 65.7 76.6 59.8
F-YFAR SUMMARY

REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

FINANCIAL STATEMENTS OTHER INFORMATION

51 HOLLAND COLOURS ANNUAL REPORT 2020/2021

ABOUT HCA

INTRODUCTION BY THE CEO

CONTENTS

REPORT OF THE BOARD OF MANAGEMENT

CORPORATE GOVERNANCE

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

INVESTOR RELATIONS

Profit Appropriation and Dividend Policy

Holland Colours intends to distribute at least 50% of its net profit in the form of dividend, as long as the solvency ratio after distribution is at least 40%. Due to the specific circumstances caused by COVID-19, we deviated from the baseline. We therefore did not distribute any dividend related to financial year 2019/2020 due to the high uncertainty of the COVID-19 crisis. In November 2020, we distributed an interim dividend of € 4.55 per share. We propose to distribute a final dividend of € 5.50 per share.

Publications

The interim results (for the period April to September) are published in October and the full-year results (from April to March) are published by the end of May/beginning of June. Company non-public information is published in the form of press releases which are also posted on our website and social media.

Please refer to the next page for the full financial calendar.

Liquidity Provision

Holland Colours shares are traded on the Euronext Amsterdam stock exchange, classified under small caps and with a limited free float. Since March 1, 2020, Holland Colours makes no use of a liquidity provision and sponsored research services. We assessed the pros and cons of these services at the end of calendar year 2020 and decided to continue without.

Share Ownership

The number of outstanding shares remained constant during the financial year.

Shares traded on Euronext Amsterdam 423,738
Holland Pigments BV 1 434,054
Registered shares 2,559
Total 860,351

As at March 31, 2021, the following substantial interests (>3%) were recorded in the registers of the AFM (Netherlands Authority for the Financial Markets) based on the Decree on the Disclosure of Major Holdings and Capital Interests in Issuing Institutions in accordance with the Netherlands Financial Supervision Act.

A list of shareholdings in excess of 3% is also available on the AFM website.

Disclosures % Date
Holland Pigments BV 1 50.03 April 2, 2012
Lazard Frères Gestion 6.97 February 13, 2014
Axxion S.A. 5.55 April 5, 2017
ELNED Holding BV 5.00 March 4, 2013
P. Chr. Van Leeuwen Beheer BV 5.06 August 7, 2019
Waag & Zübert Value AG 3.84 August 24, 2016

1 Please refer to page 49 Employee Participation. Based on our internal register, Holland Pigments BV holds 50.45% of the shares in Holland Colours NV.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

INVESTOR RELATIONS

SHARE PRICES – HOLLAND COLOURS VERSUS ASCX

April 1, 2020 = 100

SHARE PRICES – HOLLAND COLOURS

In euros

KEY DATA PER SHARE

In euros, unless stated otherwise 2020/2021 2019/2020 2018/2019 2017/2018 2016/2017
Net result 11.00 9.09 7.04 6.78 6.03
Final dividend 5.50 3.52 3.39 3.01
Interim dividend 4.55
Equity 58.42 54.47 48.58 42.66 41.71
Highest share price 125.00 111.00 94.20 94.20 71.71
Lowest share price 82.00 76.00 74.00 66.25 45.00
Number of shares outstanding 860,351 860,351 860,351 860,351 860,351

Publications (presented to AFM)

Holland Colours published the following press releases in the 2020/2021 financial year:

April 7, 2020 Holland Colours is taking
actions to mitigate the impact
of the COVID-19 pandemic
April 8, 2020 New CFO Holland Colours
June 4, 2020 Publication of 2019/2020
financial statements
July 16, 2020 Resolutions adopted by the
Annual General Meeting of
Shareholders
October 27, 2020 Publication of interim results
2020/2021

Key dates (indicative)

July 15, 2021 Annual General Meeting of
Shareholders
October 22, 2021 Publication of interim results
2021/2022
May 25, 2022 Publication of 2021/2022
financial statements
July 7, 2022 Annual General Meeting of
Shareholders

FINANCIAL STATEMENTS

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

CONTENTS

Consolidated Income Statement 55
Consolidated Statement of Comprehensive Income 56
Consolidated Balance Sheet 57
Consolidated Statement of Changes in Equity 58
Consolidated Cash Flow Statement 59
Notes to the Consolidated Financial Statements 60
1. General Information 60
2. COVID-19's impact on the Financial Statements 60
3. Summary of Accounting Principles 60
4. Financial Risk Management 67
5. Cash Flow Statement 69
6. Segment Information 69
7. Revenue 71
8. Personnel Expenses 71
9. Other Operating Expenses 71
10. Finance Income and Expense 72
11. Income Tax 72
12. Discontinued Operations 73
13. Intangible Assets 74
14. Property, Plant and Equipment 75
15. Right-of-Use Assets 76
16. Deferred Income Tax Assets and Liabilities 76
17. Inventory 77
18. Trade and Other Receivables 77
19. Cash and Cash Equivalents 78
20. Share Capital 79
21. Other Reserves 79
22. Earnings per Share 79
23. Non-Controlling Interest 79
24.
25.
26.
27.
Credit Facility
Lease Liabilities
Employee
Benefit
Obligations
Trade and Other Liabilities
79
80
80
81
Other Disclosures 82
28. Commitments and Contingencies 82
29. Related Parties 82
30. Other Disclosures 84
Company Income Statement 85
Company Balance Sheet 86
Notes to the Company Financial Statements 87
31. General Information 87
32. Summary of Accounting Principles 87
33. Subsidiaries 87
34. Personnel Expenses 87
35. Income Tax 87
36. Intangible Assets 88
37. Property, Plant and Equipment 89
38. Right-of-Use Assets 90
39. Financial Non-Current Assets 90
40. Equity 91
41. Statutory
Provisions
regarding
the
Appropriation
of
Profits
91
42. Credit Facility 92
43. Lease Liabilities 92
44. Employee
Benefit
Obligations
92
45. Audit Fees 93
46. Other Disclosures 93
Other Information 94
Independent Auditor's Report 94

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

CONSOLIDATED INCOME STATEMENT

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021

In thousands of euros Note April 1, 2020/March 31, 2021 April 1, 2019/March 31, 2020
Revenue 7 96,029 101,539
Cost of Materials (49,781) (55,772)
Direct Contribution Margin 46,248 45,767
Personnel Expenses 8 (19,939) (20,186)
Amortization and Impairments 13 (124) (142)
Depreciation and Impairments 14/15 (2,935) (2,747)
Other Operating Expenses 9 (10,834) (11,904)
Total Operating Expenses (33,832) (34,979)
Operating Result 12,416 10,788
Finance Income 10 22 20
Finance Expense 10 (97) (105)
Finance Income and Expense (75) (85)
Result Before Income Tax 12,341 10,703
Income Tax 11 (2,762) (2,784)
Net Result from Continued Operations 9,579 7,919
Discontinued Operations 12 (23)
Net Result after Discontinued Operations 9,579 7,896
Attributable to:

Shareholders of the Company
9,471 7,823

Non-Controlling Interest
23 108 73
9,579 7,896
Earnings per Share in euros
Average Number of Shares Issued 22 860,351 860,351
Earnings per Share from Continued Operations 11.00 9.12
Earnings per Share from Total Net Result 11.00 9.09

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

CONSOLIDATED

STATEMENT OF COMPREHENSIVE INCOME

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021

In thousands of euros Note April 1, 2020/March 31, 2021 April 1, 2019/March 31, 2020
Net Result 9,579 7,896
Items that will not be reclassified to the Income Statement
Actuarial
Results
on
Employee
Benefits,
after
Tax
26 (8) (56)
Other Comprehensive Income that could in future
be classified to the Income Statement
Foreign
Currency
Translation
Differences
21 (2,134) 392
Other Comprehensive Income (2,142) 336
Total Comprehensive Income 7,437 8,232
Attributable to:

Shareholders of the Company
7,329 8,159

Non-Controlling Interest
108 73
7,437 8,232

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

CONSOLIDATED BALANCE SHEET

ABOUT HCA

AS OF MARCH 31, 2021

March 31, March 31,
In thousands of euros Note 2021 2020
Non-Current Assets
Intangible Assets 13 156 280
Property, Plant and Equipment 14 19,354 20,398
Right-of-Use Assets 15 1,616 1,425
Deferred Tax Assets 16 1,319 1,318
Long-Term Receivables 60 80
22,505 23,501
Current Assets
Inventory 17 12,604 12,782
Trade and Other Receivables 18 16,647 18,857
Income Tax Receivables 331 396
Cash and Cash Equivalents 19 16,638 7,666
46,220 39,701

Total Assets 68,725 63,202

March 31, March 31,
In thousands of euros Note 2021 2020
Equity
Share Capital 20 1,953 1,953
Share Premium Reserve 1,219 1,219
Other Reserves 21 (1,633) 608 *
Retained Earnings 48,719 43,064 *
Equity Attributable to Shareholders of the Company 23 50,258 46,844
Non-Controlling Interest 341 233
Total Equity 50,599 47,077
Non-Current Liabilities
Long-Term Debt 24
Lease Liabilities 25 956 565
Employee
Benefit
Obligations
26 1,093 1,134
Deferred Tax Liabilities 16 189 271
2,238 1,970
Current Liabilities
Lease Liabilities 25 643 879
Trade and Other Liabilities 27 13,615 12,414
Income Tax Liabilities 1,546 775 *
Employee
Benefit
Obligations
26 84 87
15,888 14,155
Total Equity and Liabilities 68,725 63,202

* Comparative figures have been restated.

REPORT OF THE SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

CONSOLIDATED

STATEMENT OF CHANGES IN EQUITY

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021

ABOUT HCA

In thousands of euros Equity attributable to Shareholders of the Company
Share
Capital
Share
Premium
Reserve
Legal
Reserve for
Currency
Translation
Legal
Reserve
for Hedge
Legal
Reserve for
Intangible
Assets
Retained
Earnings
Total Non
Controlling
Interest
Total
Equity
As at March 31, 2019 1,953 1,219 343 (353) 402 38,154 41,718 160 41,878
Net Result for the Financial Year 7,823 7,823 73 7,896
Other Comprehensive Income 392 (56) 336 336
Total Comprehensive Income 392 7,767 8,159 73 8,232
Transfer of Reserve for Intangible Assets (176) 176
Dividends Paid (3,033) (3,033) (3,033)
As at March 31, 2020 1,953 1,219 735 (353) 226 43,064 46,844 233 47,077
Net Result for the Financial Year 9,471 9,471 108 9,579
Other Comprehensive Income (2,134) (8) (2,142) (2,142)
Total Comprehensive Income (2,134) 9,463 7,329 108 7,437
Transfer of Reserve for Intangible Assets (107) 107
Dividends Paid (3,915) (3,915) (3,915)
As at March 31, 2021 1,953 1,219 (1,399) (353) 119 48,719 50,258 341 50,599

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

CONSOLIDATED CASH FLOW STATEMENT

ABOUT HCA

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021

In thousands of euros Note April 1,
2020/
March 31,
2021
April 1,
2019/
March 31,
2020
Operating Result 12,416 10,788
Adjustments for:

Amortization of Intangible Assets and
Impairments 13 124 142

Depreciation of Property, Plant and Equipment
and Impairments 14 2,310 2,139

Depreciation of Right-of-Use Assets
15 625 608

Changes in Provisions
26 44 (82)

Exchange Rate Differences
20 (80)
Cash Flow from Operating Activities before
changes in Working Capital, Tax and Interest 15,539 13,515
Changes in Working Capital 1,066 (2,774)
Income Tax Paid (2,008) (2,831)
Interest Received 22 20
Interest Paid (97) (103)
Cash Flow from Operating Activities from
Continued Operations 14,522 7,827
Cash Flow from Operating Activities from
Discontinued Operations 12 (23)
Cash Flow from Operating Activities 14,522 7,804
April 1,
2020/
March 31,
April 1,
2019/
March 31,
In thousands of euros Note 2021 2020
Capital Expenditures in Intangible Assets 13 (3)
Capital Expenditures in Property, Plant and
Equipment 14 (1,953) (4,290)
Cash Flow from Investment Activities (1,953) (4,293)
Dividend Paid (3,915) (3,033)
Cash Flow from Financing Activities (3,915) (3,033)
Exchange
Rate
and
Translation
Differences
on Cash and Cash Equivalents 318 (246)
Net Cash Flow 8,972 232
Cash and Cash Equivalents as at April 1 7,666 7,434
Cash and Cash Equivalents as at March 31 16,638 7,666
Net Cash Flow 19 8,972 232

INTRODUCTION BY THE CEO CONTENTS

OF MANAGEMENT ABOUT

REPORT OF THE BOARD

REPORT OF THE SUPERVISORY BOARD

CORPORATE GOVERNANCE REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

IN THOUSANDS OF EUROS, UNLESS STATED OTHERWISE

HCA

1. General Information

Holland Colours NV ('the Company') is a listed limited liability Company ('Naamloze Vennootschap') under Dutch law with its registered office in Apeldoorn, the Netherlands.

The Company and its subsidiaries ('the Group'), manufacture, distribute, and sell color concentrates. As of balance sheet date, the Holland Colours Group operates through eight of its own facilities and a network of agents and distributors.

Shares of the Company are listed on the Euronext stock exchange in Amsterdam.

Since April 2, 2012 just over 50% of the shares in Holland Colours NV are held by the Dutch based investment company Holland Pigments BV, in which, along with others, all employees of Holland Colours participate. The employees collectively hold approximately 25% of the shares in Holland Pigments BV. Participations held in Holland Pigments by former directors (who are also major shareholders in Holland Pigments) are excluded from this number.

The Group's financial year commences on April 1 and closes on March 31 of the following year.

The consolidated IFRS financial statements of the Company comprise the financial statements of the Company and its subsidiaries.

On June 3, 2021, the Board of Management authorized the financial statements for issue. The financial statements as presented in this report are subject to adoption by the Annual General Meeting of Shareholders on July 15, 2021.

2. COVID-19's impact on the Financial Statements

The pandemic situation has been closely monitored and appropriate measures have been taken to ensure a continuous service to our customers. All divisions were impacted by the pandemic. The pandemic has not impacted our going concern assumption.

Holland Colours has a strong balance sheet, a solid cash position, and generates positive operational cash flows. This gave us the confidence to distribute an interim dividend on November 10, 2020.

The pandemic had limited effect on our business and financial performance. Due to the close monitoring of our customers and working capital, there were no indications to perform detailed impairment tests.

The impact of the pandemic on the Financial Statements has been considered for each of the relevant notes, and additional disclosures have been provided in case COVID-19 had a material impact on a specific Financial Statements section. In our 2020/2021 figures, all COVID-19 related impacts have been treated as normal results from operations.

3. Summary of Accounting Principles

GENERAL

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and with Title 9 Book 2 of the Dutch Civil Code.

The consolidated financial statements are presented in thousands of euros, rounded to the nearest thousand, unless stated otherwise.

The consolidated financial statements are prepared on the basis of historical cost.

The accounting policies as detailed below are applied consistently for all periods presented in these consolidated financial statements.

OPERATING SEGMENTS

We determine and present operating segments based on the information that is used by the Board of Management. The segmentation is divisional, based on the regions in which the Group operates. In turn, these regions reflect the Group's management and internal reporting structure. Segmentation based on markets in which the Group operates requires significantly more profit allocation. This is because several products are sold in more than one market, which makes the cost for accounting ineffective.

IFRS CHANGES

Below are the changes in the IFRS standards that have been issued and became effective as of January 1, 2020. These changes do not have a material impact on the Group.

IFRS Topic Effective date
IFRS 9 Interest Rate Benchmark January 1, 2020
IFRS 3 Definition
of
Business
January 1, 2020

New standards that will become effective for the first time after the 2020/2021 financial year are not included with early adoption. The IFRS standards shown in the table below will become effective for Holland Colours after March 31, 2021. The impact of these changes on the Group is expected to be limited.

IAS 16 Proceeds before Intended Use January 1, 2022 IAS 37 Cost of Fulfilling a Contract January 1, 2022

USE OF ESTIMATES

The preparation of the financial statements in compliance with IFRS requires management to make judgments, estimates and assumptions that affect amounts reported in the financial statements. The estimates and assumptions are based on experience and various other factors that are believed to be reasonable under the circumstances and are used to judge the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of estimates are included in the period in which they are revised. The most important estimates are stated under the relevant policies and relate to impairment analysis of Property, Plant and Equipment, the valuation of Inventories and the incremental borrowing rate and/or the renewal options of the Lease Liabilities.

IFRS Topic Effective date

IFRS 17 Insurance Contracts January 1, 2022

CONSOLIDATION

The consolidated financial statements include the accounts of Holland Colours NV and its subsidiaries. Subsidiaries are companies over which Holland Colours NV has control, because it is exposed, or has rights, to variable returns from its involvement with the subsidiary and has the ability to affect returns through its power over the subsidiary. Non-controlling interests in equity and in results are presented separately.

The consolidated financial statements include the financial data of the following companies:

Legal structure including capital interest and division structure

Division Subsidiaries Interest Consolidated
EMEIA Holland Colours Europe BV, 100% 100%
the Netherlands, Apeldoorn
EMEIA Holland Colours UK Ltd, 100% 100%
United Kingdom,
Gillingham
EMEIA Holland Colours Hungária 100% 100%
Kft, Hungary, Szolnok
Americas Holland Colours Canada 100% 100%
Inc., Canada, Toronto
Americas Holland Colours Americas 100% 100%
Inc., United States,
Richmond Indiana
Americas Holland Colours Mexicana 100% 100%
SA de CV, Mexico,
Tultitlán
Asia PT Holland Colours Asia, 99% 100%
Indonesia, Surabaya*
Asia PT Holco Indo Jaya, 88% 100%
Indonesia, Surabaya**

* Regarding the subsidiary PT Holland Colours Asia in Indonesia, Holland Pigments BV holds 1% of the legal ownership. Economic ownership resides with Holland Colours NV.

** Regarding the subsidiary PT Holco Indo Jaya in Indonesia, PT Holland Colours Asia holds 36% of the legal and economic ownership and Holland Colours NV holds 52% of the legal and economic ownership.

There were no changes to the consolidated Group compared with the 2019/2020 financial year.

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

IFRS 1 Subsidiary as a First-Time

Adopter

REMUNERATION REPORT

January 1, 2022

FINANCIAL STATEMENTS

OTHER INFORMATION SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Holland Colours NV and PT Holland Colours Asia jointly own 88% of the shares in PT Holco Indo Jaya, while the Italy-based Gaypa Srl holds the remaining 12% (12% in 2019/2020). The results of PT Holco Indo Jaya are consolidated on an integral basis in the figures for the Group. The non-controlling interest is recognized separately in the results and equity of the Group.

In the consolidated financial statements, all intercompany receivables, payables and deliveries are fully eliminated, as are the related and not yet realized results. Unrealized losses are eliminated in the same way as unrealized profits, unless there is an indication of impairment.

The comparative figures have been restated, an amount of EUR 13 is transferred from Equity to Income Tax Liabilities.

FOREIGN CURRENCY

Transactions included in the financial statements of each of the Group's subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates. Transactions in foreign currency are translated to the functional currency using the foreign exchange rate at the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency using the exchange rate at the balance sheet date. Foreign exchange differences resulting from translation into the functional currency are recognized in the Income Statement.

Assets and liabilities of Group companies with a functional currency other than the euro are translated using the foreign exchange rate at the balance sheet date.

The Income Statement for these Group companies is translated at the average exchange rate during the financial year. Foreign exchange rate differences are recognized in unrealized results and the foreign currency translation reserve. On sale or termination of an operation outside the Eurozone, the amount concerned is transferred from Equity to the Income Statement as part of the gain or loss on sale or termination.

The principal exchange rates against the euro used in preparing the balance sheet and the statement of income are:

Exchange Rates Used

in EUR Balance Sheet Income
Statement
March 31,
2021
March 31,
2020
2020/
2021
2019/
2020
US dollar 1.17 1.10 1.17 1.11
British pound 0.85 0.89 0.89 0.87
Canadian dollar 1.48 1.56 1.54 1.48
Mexican peso 24.11 26.21 25.25 21.60

REVENUE RECOGNITION

Revenues from contracts with customers are recognized by identifying the contract and its performance obligations as well as determination and allocation of the transaction price to these performance obligations. Revenues are recognized for each performance obligation when the control of goods or service have been transferred from Holland Colours to the customer at a point in time based on the contract. This is normally when the goods have

arrived at the customer. The revenue is measured at the fair value of the transaction price received. This means the revenue is recognized net of rebates, discounts and similar allowances and net of sales tax.

Grants

Government grants related to costs (which include grants related to COVID-19) are deducted from the relevant costs to be compensated in the same period. Government grants to compensate for the cost of an asset are deducted from the cost of the related asset.

Finance Income and Expense

Finance Income and Expense include the income and expenses on lent and borrowed funds and interest charges on lease payments. Finance Income and Expense is recognized in the Income Statement under Finance Income and Expense if no hedge accounting is applied.

Income Tax

Income Tax Expenses compromises both current and deferred tax, including the effects of changes in tax rates.

The tax amount is calculated on the basis of the tax rates and tax legislation as applicable on the reporting date in the countries in which the Group operates and generates income subject to taxation. Current income tax relating to items recognized directly in Equity is recognized in Equity and not in the Income Statement. Uncertain tax positions may exist due to interpretation differences of applicable tax regulations.

SUPERVISORY BOARD REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS STATEMENTS OTHER INFORMATION

FINANCIAL

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ABOUT HCA

Current tax receivables and liabilities for the current period are measured at the amount expected to be reclaimed from or paid to the tax authorities.

Earnings per Share

Earnings per ordinary share are calculated as the Net Result attributable to holders of ordinary shares divided by the weighted average number of outstanding shares in the period concerned.

PRINCIPLES FOR THE VALUATION OF ASSETS AND LIABILITIES

General

The valuation principles are primarily based on valuation of the assets and liabilities at historical cost.

Offsetting Financial Instruments

Financial Assets and Liabilities are offset in the consolidated balance sheet only in situations of an actual legally enforceable right to offset the amounts recognized, and only if it is the intention to settle these amounts on a net basis or simultaneously.

Intangible Assets

Costs of Development Activities are capitalized if the product or process is technically and commercially feasible, the Group has sufficient resources to complete its development, and it is expected that the product or process will generate future gains. The capitalized expenses comprise direct labor cost and a surcharge for overhead costs, to the extent that these are attributable to the project. All other research and development costs are stated as an expense in the Income Statement at the time they are incurred.

Capitalized Development Costs are valued at cost, less accumulated amortization and impairments, if applicable. Amortization costs are charged to the Income Statement over their estimated useful life, which is typically five years.

Intangible Assets are assessed for impairment if there are events or indications that an intangible asset might be subject to a loss in value. The amortization period and method for an intangible asset with a measurable useful life are assessed, at the very least, at the end of each financial year. Changes in the expected useful life of an asset or in its expected pattern of future economic benefits are accounted for by changing the amortization period or method and are treated as changes in accounting estimates.

Other Intangible Assets

The Other Intangible Assets consist of the costs of computer software and licenses, plus the external costs related to their implementation and commissioning. Other Intangible Assets are measured at historical cost; that is, the acquisition price or production cost less cumulative amortization and any applicable impairments.

Amortization

Amortization of Intangible Assets is charged to the Income Statement according to the straight-line method. The basis applied is the estimated useful life of each component within an item that falls into the Development

Costs and Other Intangible Assets category. The estimated useful life is as follows:

Development Costs 5 years
Other 3-5 years

Property, Plant and Equipment

Property, Plant and Equipment are stated at cost less accumulated depreciation based on the estimated useful life of the assets concerned and impairment losses. The costs of assets produced in-house comprise material costs, direct labor cost and an appropriate portion of the directly attributable overhead costs. Finance costs are added to the costs of Property, Plant and Equipment if these meet the conditions for recognition in the balance sheet. If significant parts of Property, Plant and Equipment must be replaced at regular intervals, the Group recognizes these as separate assets with their own useful life and depreciation method. All other repair and maintenance costs are recognized in the Income Statement at the time they occur.

Property, Plant and Equipment are assessed for impairment if there are events or indications that an item may have lost value. The depreciation period and method for Property, Plant and Equipment with a measurable useful life is assessed, at the very least, at the end of each financial year. Changes in the expected useful life of an asset, or in its expected pattern of future economic benefits, are accounted for by adjusting either the depreciation period or method. These are treated as changes in accounting estimate.

INTRODUCTION BY THE CEO

CONTENTS

ABOUT HCA

Financial Non-Current Assets

Loans and receivables for which the maturity date is more than 12 months after the balance sheet date are presented as Financial Non-Current Assets. On initial recognition, these are measured at fair value less directly attributable transaction costs. After initial recognition, interest-bearing loans are valued at amortized cost using the effective interest rate method, less any impairment. Gains or losses arising from changes in the amortized cost are accounted for in the Income Statement under Finance Expense.

Right-of-Use Assets

We assess whether a contract is, or contains, a lease at inception. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for a consideration. Leases are recognized as Right-of-Use Assets on the balance sheet under Non-Current Assets. The related lease liability is recognized as an obligation on the balance sheet under Non-Current Liabilities and Current Liabilities. The Group applies judgement in evaluating the term of lifetime of a lease. A judgement has to be made whether it is reasonably certain to exercise an option to renew or terminate a lease. The non-cancelable term of the lease is then determined based on these judgements. If the Group expects that the expiry date of the current contract will not in fact be the actual end date, the lease obligation is determined to include extension periods.

The Group uses the practical expedients to apply a single incremental borrowing rate per portfolio of leases. Leases of low-value objects and non-lease components are excluded for buildings. Non-lease components do not apply to vehicle fuel costs, because fuel costs do not form part of the lease term. The Group uses the implicit interest rate when available. If not, the Group uses an Incremental Borrowing Rate (IBR) to measure the lease liabilities. The IBR is the rate of interest that the Group would have to pay to borrow the necessary funds, over a similar term and with a similar security, to obtain an asset of similar value to the Right-of-Use Asset in a similar economic environment. The IBR therefore reflects what the Group 'would have to pay'. This necessitates estimating when no observable rates are available or when rates need to be adjusted to reflect the terms and conditions of the lease. The Group estimates the IBR based on observable inputs (such as market interest rates) and is required to make certain entity specific estimates. For this financial year the weighted average IBR is 4.4%.

Right-of-Use Assets are depreciated using the straight-line method over the lifetime of the object, in line with the duration of the contract. The net present value of the obligation is calculated using the applicable discount rate for object and country. The periodical payments to the lessor, based on the lease contract, can be considered as repayments of the obligation. The depreciations costs are charged as Depreciation and Amortization, the service costs as Other Operating Expenses and the interest expenses as Finance Expense to the Income Statement.

The lease and rental agreements included in the standard for Lease and Rental Obligations are classified as Right-ofUse Assets. Property, Plant and Equipment acquired by means of leases or rentals are, at the moment of capitalization, measured using the then net present value of the lease payments. The depreciation period for Right-of-Use Assets reflects the duration of the underlying lease or rental contract. The depreciation method is straight-line.

The depreciation period and method for Right-of-Use Assets is assessed, at the very least, at the end of each financial year. Changes in the expected useful life of an asset or in its expected pattern of future economic benefits are accounted for by adjusting either the depreciation period or method. These are treated as changes in accounting estimate.

Low-value leases, below € 5,000 per underlying asset, are not recognized in the Right-of-Use Assets and Lease Liabilities. Lease payments on the lease of low-value assets are recognized as expensed on a straight-line basis over the lease term and recognized as general and administrative expenses in the statement of profit or loss. Low-value leases are not recognized in the balance sheet.

Depreciation

Depreciation is charged to the Income Statement according to the straight-line method on the basis of the estimated useful life of each component of items of Property, Plant and Equipment. Depreciation is not applied to land.

REPORT OF THE BOARD OF MANAGEMENT

REPORT OF THE SUPERVISORY BOARD

EMPLOYEE REMUNERATION REPORT

FIVE-YEAR SUMMARY & INVESTOR RELATIONS PARTICIPATION

FINANCIAL STATEMENTS OTHER INFORMATION CONTENTS

REPORT OF THE SUPERVISORY BOARD REPORT

REMUNERATION

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

The estimated useful life is as follows:

Buildings 25-40 years
Machinery and Equipment 10 years
Other Non-Current Assets 3-5 years
Right-of-Use Assets 1-10 years

The remaining useful life, residual value and depreciation method are assessed on an annual basis.

Impairment of Non-Current Assets

An asset is impaired if its realizable value is less than its carrying amount. Non-Current assets are assessed on an annual basis for indications of impairment per location. If there are such indications, or events, the realizable value of the asset concerned is estimated based on either its directly realizable value or its value in use to the Company. The impairment test is primarily based on cashflow forecasts of five years. Elements considered to determine if a different approach would be more appropriate are, among others, high growth/emerging economies, geographical expansion opportunities and the introduction of new product lines. The cashflow forecast is calculated with the expected free cashflow and discounted to the present value using a weighted average cost of capital of 8% for the Group. Sensitivity tests are performed for growth assumptions, scenariobased adjustments to the free cashflow forecast and for the weighted average cost of capital.

An impairment loss is reversed if there is a change to the estimates used. The reversal is done to the extent that the carrying amount of the asset does not exceed the carrying amount that would have been the case if no impairment had been recognized – so after deduction of the then applicable depreciation.

Deferred Income Tax

A receivable is recognized or a provision is formed for deferred tax positions using the balance sheet method for temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the carrying amount of these items for tax purposes.

The carrying amount of Deferred Tax Assets is assessed at reporting date and reduced if and when it is unlikely that sufficient taxable profit will be available to absorb these temporary differences and/or changes incurred to the assessment base (such as a change in the corporate tax rate). Deferred Tax Assets not recorded are reassessed at reporting date and recorded when deemed realizable based on expected future taxable profits.

Deferred Tax Assets and Liabilities are valued at the tax rates and under the tax law that has been substantially enacted at the balance sheet date and which are expected to apply in the period in which the asset is realized or the liability is settled.

Under certain circumstances, current and deferred tax is recognized outside profit or loss either in Other Comprehensive Income or directly in Equity, depending on the item the tax relates to.

Deferred Tax Assets and Liabilities are offset if, and only if there is a legally recognized right to set off current tax assets and liabilities, and the Deferred Tax Assets and Liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity, or different taxable entities which intend to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

There is a degree of uncertainty around the correct interpretation of complex tax regulations and the amount and timing of future taxable profits.

Given the huge diversity of international business relations, discrepancies between the assumptions made and the actual outcomes, or future changes in such assumptions, this could lead to future changes in the tax payments and returns already recognized.

Inventories

Inventories are measured at the lower of cost and net realizable value. The cost price for inventories is based on the FIFO principle (first in, first out). Finished Goods is valued at production cost including costs of raw materials and a surcharge to direct and indirect production costs. This valuation is based on normal capacity, or at realizable value if lower. The net realizable value compromises the estimated selling price in the normal course of the business, less the estimated cost for completion and estimated costs necessary to make the sale.

REMUNERATION REPORT

FIVE-YEAR SUMMARY & INVESTOR RELATIONS EMPLOYEE PARTICIPATION

FINANCIAL STATEMENTS OTHER INFORMATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

ABOUT HCA

The estimated selling price is based on actual selling prices and the recent history of sales information per product. Aging of products is tracked and based on in line with the aging management estimates of the risk of obsolescence and this is used to adjusts the valuation of the inventory accordingly.

Trade and Other Receivables

Trade and Other Receivables are recognized initially at fair value and subsequently at amortized cost. A provision for non-collectability is established based on expected credit loss.

The Group measures the expected credit losses allowance for its trade receivables for the whole lifetime of the receivables (simplified approach). To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics. If these differences are substantial, they are grouped based on days past due and security, when applicable. The expected loss rates are based on the historical payment profiles of sales of the last five years and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current and forward-looking information when these would affect the ability of customers to settle the receivables. Management assesses forward looking information in relation to the specific market in which it operates. Bad debts are written off entirely once the inability to collect has been established with certainty. Indicators that there is no reasonable expectation of

recovery include, amongst others, the failure to make the contractual payments for a period longer than the local applicable payment term, or a trade debtor has financial difficulties, or a trade debtor is unable to engage in a repayment plan with the Group.

Cash and Cash Equivalents

Cash and Cash Equivalents comprises cash balances and short-term deposits that are available on call. Cash and Cash Equivalents are financial instruments that are classified as measured at amortized cost.

Dividends

Dividends payable to shareholders are recognized as a liability to shareholders once the proposed profit appropriation has been approved by the Annual General Meeting of Shareholders.

Employee Benefit Obligations

Holland Colours Group has a number of pension plans in accordance with local conditions and practices. The voluntarily pension plans of the subsidiaries are in line with local legislation and regulation and are included in the financial statements as defined contribution plans. These involve the payment of predetermined premiums to an insurance company. The terms of these pension plans mean that Holland Colours Group has no legal or factual obligation to pay additional premiums if the insurance company has insufficient means to fund current or future pensions.

Other Employee Benefits

The termination of the pre-pension plan (including the transitional arrangement) for employees in the Netherlands has led to the originally agreed conditional financing of past service years being converted into an annual payment of the same amount. This is also conditional. The most important conditions for this payment are that an employee must still be in the Company's service at the time of the annual payment and that the Group's financial results are assessed by the Board of Management as being sufficient to cover this payment. The Group has included a provision for this future liability, which will end in September 2037. Any revaluation of this future liability is recognized in the profit and loss account.

The Group has also included a provision for other long-term obligations regarding Employee Benefits. These include jubilee payments, which are earned by employees for their service in the current and previous reporting periods.

The obligations are calculated partly on the basis of actuarial principles and based on a discount rate of (0.6%) (2019/2020 (0.6%)) in accordance with the IBoxx Index Government bonds. They are recognized under Non-Current Liabilities. The expenses are reported in the Income Statement under Personnel Expenses. All assumptions are reassessed at balance sheet date.

Provisions

CONTENTS

A provision is recognized in the balance sheet when there is a present obligation (legal or constructive) for the Group as a result of a past event and it is probable that an outflow of economic benefits will be required to settle this obligation and a reliable estimate can be made of the amount of the obligation.

Provisions for restructuring of activities are recognized when a detailed and formal restructuring plan has been approved, and the restructuring has either commenced or has been announced publicly. We do not provide for future operating costs.

Lease Liabilities

The obligation arising from lease and rental agreements is classified as Lease Liabilities on the balance sheet. Lease Liabilities that run longer than 12 months are recognized under Non-Current Liabilities. Lease Liabilities shorter than 12 months are recognized under Current Liabilities. The estimated value of the liability is the calculated net present value of the remaining periodical payments as included in the contract. Applicable discount rates have been determined for each object and country of the lease portfolio for the calculation of the net present value.

Trade and Other Payables

Trade and Other Payables are recognized initially at fair value and subsequently measured at amortized cost.

Determination of Fair Value

Certain accounting policies as well as disclosures by the Group require fair value assessments of financial and non-financial assets and liabilities. Further information on the principles used in these assessments is provided in the notes relating to the specific asset or liability.

Long-Term Receivables

Long-term Receivables at fixed and variable interest rates are assessed by the Group on the basis of factors such as the applicable interest rate and the borrower's individual creditworthiness. When necessary, a provision is formed for losses expected on these receivables on the basis of this assessment. As at March 31, 2021, the carrying amount of these receivables did not vary materially from their fair value.

Trade and Other Receivables

The fair value of Trade Debtors and Other Receivables is estimated as the net present value of future cash flows, based on market interest rates as at the reporting date. This fair value is determined for informative purposes.

4. Financial Risk Management

As part of the normal conduct of its business, the Group is exposed to a variety of financial risks such as currency risk, credit risk, liquidity risk, interest risk and capital risk. In terms of risk management policy, it is recognized that the financial markets are volatile and that the aim should be to limit the potential negative effects of this on the Group's

financial results as much as possible. The Board of Management is responsible for managing the risks associated with our activities and the establishment and adequate functioning of appropriate risk management and control systems.

CURRENCY RISK

The reporting currency of the Group is the euro. Being a global operation, the Group is exposed to a variety of foreign currencies. Currency risk arises from engaging in commercial transactions in non-functional currencies (mainly USD). Holland Colours aims to limit the effect of transaction-related exchange-rate exposure on the Group by preferring to invoice in the functional currency of the supplying entity, which in most cases is regional. Currency hedging on outstanding AR or projected sales is not in place. The Group participates in several foreign subsidiaries of which the net equity is mainly USD nominated. This is subject to currency translation risk in the consolidation process. The impact varies over the years and is complicated to mitigate due to the long term fluctuations in the EUR-USD rate. This risk is monitored but not hedged.

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

OTHER INFORMATION

FINANCIAL STATEMENTS

REPORT OF THE BOARD OF MANAGEMENT ABOUT HCA INTRODUCTION BY THE CEO

CORPORATE GOVERNANCE

REPORT OF THE SUPERVISORY BOARD REPORT

EMPLOYEE PARTICIPATION REMUNERATION

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

The table below shows the sensitivity of the net result after tax and the equity (including translation effects) to the US dollar with all other variables kept constant:

2020/2021 2019/2020
Increase EUR-USD 10% Decrease EUR-USD 10% Increase EUR-USD 10% Decrease EUR-USD 10%
Net Result (813) 674 (519) 625
Equity (2,479) 3,052 (2,356) 2,794

In relative terms, the various currencies affected the Group's net sales and expenses as follows:

Revenue Expenses
2020/2021 2019/2020 2020/2021 2019/2020
Euro 46% 46% 43% 42%
US dollar 39% 39% 43% 43%
Other 15% 15% 14% 15%
Total 100% 100% 100% 100%

CREDIT RISK

Credit risk is the risk of financial loss by the Group in the event a customer fails to meet their contractual obligations. Credit risk mainly arises from receivables from customers. Holland Colours follows an active policy to minimize credit risk. This policy includes strict internal guidelines regarding overdue payments, the use of sales information systems, the consultation of external sources and, where necessary, requesting security for payment. Due to its distribution over a large number of customers and geographical areas, there is no significant concentration of credit risk. There is no insurance for credit risk in place. The cash transactions are executed with creditworthy financial institutions.

LIQUIDITY RISK

Liquidity risk is the risk that Holland Colours is unable to meet its obligations when they are due. Holland Colours' policy with regard to liquidity risk is to ensure to the best of its ability that sufficient committed credit facilities are available to meet its payment obligations in time, in both normal and exceptional situations. The Trade and Other liabilities all fall due within one year.

The Group aims to maintain flexibility in funding by keeping credit lines available at a number of well-known financial institutions. On the basis of cashflow forecasting models, the Group tests whether the available credit

facilities will cover the expected credit need. Based on the analysis, the Group believes that the current expected credit need is covered sufficiently.

INTEREST RATE RISK

At the end of the fiscal year, there were no current or non-current borrowings. As the Group has no significant interest-bearing assets and liabilities, the direct impact of changes in the market rates to the Group's income and operating cash flow is limited.

CAPITAL RISK

The policy of the Group regarding the capital structure of the company is based on the solvency. The solvency remains above 60% and is calculated by equity/total assets. In addition, the Group aims to finance its activities with equity.

FAIR VALUE OF FINANCIAL INSTRUMENTS

The Group applies the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

  • Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities;
  • Level 2: Valuation techniques whereby the lowest-level input as significant for valuation at fair value is directly or indirectly observable;
  • Level 3: Valuation techniques whereby the lowest level input as significant for valuation at fair value is not observable.

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

CONTENTS

Changes in the fair value of the above-mentioned Financial Instruments, if accounted for at fair value, are recognized in the Income Statement unless hedge accounting is applied.

The fair value of Financial Instruments is calculated on the basis of the net present value of the expected future cash flows by virtue of repayment and interest payments. The calculation is not based on observable market data.

Trade and Other Receivables, Payables to Suppliers, Credit Institutions and Other Debt due to expire within one year are included in the financial statements at amortized cost. The amortized cost is considered to be a reflection of fair value due to the short duration.

5. Cash Flow Statement

The cash flow statement is prepared using the indirect method. Cash flows in foreign currencies are translated at transaction date.

6. Segment Information

The Group is divided into geographical segments for management as well as business purposes. The segment information contained in the financial statements is therefore presented based on the organizational structure of the Group. In this, the three operating units each represent a region and the holding, under 'Other', represents General Management, Innovation and Technology and other central functions.

The Board of Management monitors the operating result of the geographic segments to facilitate the decisionmaking process in relation to the allocation of resources and the performance evaluation. The operating result of the segments are determined and based on the same accounting principles as the operating result shown in the consolidated financial statements.

The funding of the Group, including loan structure and dividend policy as well as the current income tax, deferred income tax and certain financial assets and liabilities are also not allocated to the segments since these items are supervised at Group level.

Transfer prices for transactions and services between the operating segments are set on an arm's-length basis.

Revenue in the Netherlands accounted for 52% (2019/2020: 51%) and the USA accounted for 24% (2019/2020: 23%) of total revenue. There are no other significant revenue concentrations in specific countries. The Group companies in the identified segments are to some extent dependent on certain large customers.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION
Adjustments/
Segments 2020/2021 EMEIA Americas Asia Other Eliminations Total
Revenue 48,929 32,236 14,864 96,029
Intersegmental Transactions 902 29 (931)
Revenue including Intersegmental Transactions 49,831 32,265 14,864 (931) 96,029
Depreciation, Amortization and Impairments (1,242) (707) (349) (313) (448) (3,059)
Operating Result from Continued Operations 3,676 3,745 3,805 1,190 12,416
Operating Result from Discontinued Operations
Operating Result after Discontinued Operations 3,676 3,745 3,805 1,190 12,416
Financial Income 22 22
Financial Expense (97) (97)
Tax (2,762) (2,762)
Net Result 9,579 9,579
Non-Current Assets 10,024 5,940 3,822 52,093 (49,375) 22,505
Current Assets 20,230 16,264 7,516 2,134 76 46,220
Liabilities 14,182 3,781 2,291 3,297 (5,425) 18,126
Total Investments 1,388 406 159 1 1,954
Average Number of Employees (in FTE) 208 101 112 15 436
Adjustments/
Segments 2019/2020 EMEIA Americas Asia Other Eliminations Total
Revenue 52,207 32,541 16,791 101,539
Intersegmental Transactions 1,015 25 24 (1,064)
Revenue including Intersegmental Transactions 53,222 32,566 16,815 (1,064) 101,539
Depreciation, Amortization and Impairments (1,149) (642) (285) (222) (591) (2,889)
Operating Result from Continued Operations 3,275 2,144 3,534 1,835 10,788
Operating Result from Discontinued Operations (23) (23)
Operating Result after Discontinued Operations 3,275 2,144 3,511 1,835 10,765
Financial Income 20 20
Financial Expense (105) (105)
Tax (2,784) (2,784)
Net Result
Non-Current Assets 7,896 7,896
Current Assets 9,924
16,487
6,688
13,466
3,534
8,637
46,815
1,681
(43,460)
(570)
23,501
39,701
Liabilities 13,050 3,899 2,894 1,634 (5,352) 16,125
Total Investments 2,371 1,692 461 (289) 1,856 6,091
CONTENTS INTRODUCTION
BY THE CEO
ABOUT
HCA
REPORT OF THE BOARD
OF MANAGEMENT
CORPORATE
GOVERNANCE
REPORT OF THE
SUPERVISORY BOARD
REMUNERATION
REPORT
EMPLOYEE
PARTICIPATION
FIVE-YEAR SUMMARY
& INVESTOR RELATIONS
FINANCIAL
STATEMENTS
OTHER
INFORMATION
-- ---------- ---------------------------- -------------- -------------------------------------- ------------------------- ------------------------------------ ------------------------ --------------------------- ------------------------------------------- ------------------------- ----------------------

7. Revenue

The table below shows the breakdown of Revenue per market segment.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Building & Construction 42,632 44,762
Packaging 31,663 34,230
Coatings, Sealants & Adhesives 12,593 13,428
Other 9,141 9,119
Total Revenue 96,029 101,539

The remuneration of the Board of Management and the Supervisory Board is shown in Note 29: Related Parties. The pension costs relate to defined contribution plans.

Wages and salaries in the 2020/2021 financial year include € 1,083 of government grants (2019/2020: € 79), including € 1 million COVID-19 assistance in the USA (2019/2020: nil).

In the 2020/2021 financial year, the average number of employees was 436 FTEs (2019/2020: 425 FTEs).

9. Other Operating Expenses

The table below shows the main components of the Other Operating Expenses.

8. Personnel Expenses

The table below shows the breakdown for Personnel Expenses.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Wages and Salaries (16,987) (17,248)
Social Security (1,943) (1,993)
Pension Costs (1,009) (945)
Personnel Expenses (19,939) (20,186)

For the 2020/2021 financial year, an accrual for profit sharing of € 1,708 is included (2019/2020: € 1,167). This is included under Wages and Salaries. All employees in the Group are eligible for the profit-sharing plan. Payments depend on the Group's ROI and the operating result of the Division in which the individual employee works.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Other Personnel (2,610) (2,543)
Travel and Accommodation (639) (1,588)
Maintenance (1,288) (1,525)
Energy (1,089) (1,178)
Consulting (1,971) (1,382)
Materials (1,154) (1,205)
Insurance (560) (572)
Other Costs (1,523) (1,911)
Other Operating Expenses (10,834) (11,904)

10. Finance Income and Expense

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Finance Income 22 20
Finance Expense (97) (105)
Finance Income and Expense (75) (85)

change in tariffs in the Netherlands. Please refer to note 16 as well. The Other Taxes mainly relate to local applied Withholding Taxes on dividends and royalties paid to the Company by the operating entities in Indonesia, Canada and Mexico. These accumulated charges are gradually applied against the Dutch corporate income tax.

Calculation of effective tax rate starting at statutory tax rate in the Netherlands:

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Result before Income Tax 12,341 10,703
At the 25% rate applicable in
the Netherlands (25.0%) (3,085) (25.0%) (2,677)
Effect
of
different
tax
rates
in
countries
in which the Group operates 0.0% (0.0%) (3)
Tax exempt income COVID-19 assistance 2.0% 252
Adjustments of Tax recorded in previous
years 0.3% 32 (2.0%) (209)
Expenses not tax-deductible (0.7%) (84) (0.6%) (63)
Tax incentive programs 0.9% 117 1.3% 140
Other
differences
0.0% 6 0.3% 28
(22.5%) (2,762) (26.0%) (2,784)

11. Income Tax

The main components of the Tax charge in the 2020/2021 financial year are shown in the table below.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Consolidated Income Statement
Corporate Income Tax due this year:

Current Income Tax
(2,855) (2,680)

Tax Incentive Programs, including Innovation Box

Other Taxes, including Applied Withholding Tax
117
(107)
140
405
Deferred Tax:

In relation to the existence and reversal of
temporary differences
83 (649)
Income Tax recognized in the Consolidated
Income Statement (2,762) (2,784)

The Corporate Income Tax as recognized in the consolidated income statement amounted to € 2.8m versus € 2.8m the previous year. The deferred tax asset position was increased by € 83 (this was reduced the previous year by € 649). The increase mainly related to the

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

12. Discontinued Operations

Operations from our China production entity ended per February 15, 2017. We have finished the liquidation process of the legal entity in the financial year 2019/2020. Results relating to the closure and liquidation were recognized as results from discontinued operations.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Other Operating Expenses (23)
Operating Result (23)
Net Result from Discontinued Operations (23)
CONTENTS
INTRODUCTION
ABOUT
REPORT OF THE BOARD
CORPORATE
REPORT OF THE
REMUNERATION
EMPLOYEE
FIVE-YEAR SUMMARY
FINANCIAL
BY THE CEO
HCA
OF MANAGEMENT
GOVERNANCE
SUPERVISORY BOARD
REPORT
PARTICIPATION
& INVESTOR RELATIONS
STATEMENTS
OTHER
INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ----------------------

13. Intangible Assets

Development Assets under
Costs Other Construction Total
As at March 31, 2019
Cost 1,979 1,765 28 3,772
Accumulated Amortization (1,569) (1,727) (3,296)
Carrying Amount 410 38 28 476
Change in Asset Value
Capital Expenditures 3 3
Carrying Amount of Disposals (57) (1,264) (1,321)
Impairments 1,264 1,264
Amortization (127) (15) (142)
Exchange
Rate
Differences
Balance (184) (12) (196)
As at March 31, 2020
Cost 1,922 504 28 2,454
Accumulated Amortization (1,696) (478) (2,174)
Carrying Amount 226 26 28 280
Change in Asset Value
Capital Expenditures
Transfer 28 (28)
Amortization (107) (17) (124)
Exchange
Rate
Differences
Balance (107) 11 (28) (124)
As at March 31, 2021
Cost 1,922 532 2,454
Accumulated Amortization (1,803) (495) (2,298)
Carrying Amount 119 37 156

The Company's total expenses for research and development were € 2,390 in the financial year (2019/2020: € 1,324). The expenses are included under Personnel Expenses, Depreciation, Amortization and Other Operating Expenses. Due to the development structure of the research and technology department, the Group does not comply with all the criteria for capitalizing development costs in line with IAS 38.57. The amortization amounting to € 124 (2019/2020: € 142) is recognized under Amortization and Impairments in the consolidated Income Statement.

There were no impairments in the 2020/2021 financial year in relation to the capitalized development costs (2019/2020: nil). The Other Intangible Assets consist of the purchase price of computer software and licenses, as well as the external costs related to their implementation and commissioning.

FIVE-YEAR SUMMARY
FINANCIAL
BY THE CEO
HCA
OF MANAGEMENT
GOVERNANCE
SUPERVISORY BOARD
REPORT
PARTICIPATION
& INVESTOR RELATIONS
STATEMENTS
OTHER
INFORMATION
EMPLOYEE REMUNERATION REPORT OF THE CORPORATE REPORT OF THE BOARD ABOUT INTRODUCTION CONTENTS
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------- -- -- ---------- -------------- --------------- ----------- --------------------- ------- -------------- ----------

14. Property, Plant and Equipment

Land and Machinery and Assets under
Buildings Equipment Other Construction Total
As at March 31, 2019
Cost 24,229 30,759 7,087 1,159 63,234
Accumulated Depreciation (14,434) (24,227) (6,422) (45,083)
Carrying Amount 9,795 6,532 665 1,159 18,151
Change in Asset Value
Capital Expenditures 775 5,189 408 (487) 5,885
Carrying Amount of Disposals (367) (5,763) (2,530) (8,660)
Depreciation of Disposed Assets 313 4,259 2,412 6,984
Depreciation (674) (1,210) (255) (2,139)
Exchange
Rate
Differences
99 63 7 8 177
Balance 146 2,538 42 (479) 2,247
As at March 31, 2020
Cost 24,736 30,248 4,972 680 60,636
Accumulated Depreciation (14,795) (21,178) (4,265) (40,238)
Carrying Amount 9,941 9,070 707 680 20,398
Change in Asset Value
Capital Expenditures 1,334 443 115 61 1,953
Transfer Assets under Construction 44 186 123 (353)
Transfer Cost between Categories 206 (206)
Transfer Accumulated Depreciation
between Categories (130) 130
Disposal Cost Price (164) (883) (304) (1,351)
Disposal Accumulated Depreciation 128 779 303 1,210
Depreciation (682) (1,371) (257) (2,310)
Exchange
Rate
Differences
(384) (144) (19) 1 (546)
Balance 352 (1,066) (39) (291) (1,044)
As at March 31, 2021
Cost 25,353 29,116 4,701 389 59,559
Accumulated Depreciation (15,060) (21,112) (4,033) (40,205)
Carrying Amount 10,293 8,004 668 389 19,354

The capital expenditures include nil (2019/2020: nil) of capitalized Personnel Expenses. No impairments occurred in the 2020/2021 financial year (2019/2020: nil), while the asset count led to Disposals. Most of the Disposed Assets were already fully depreciated and the impact on book value of PP&E was € 141 (2019/2020: € 58). The Group has provided collateral to a maximum of € 724 (2019/2020: € 770) in the form of mortgage rights on buildings in Indonesia.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

15. Right-of-Use Assets

The table below shows the movement of Right-of-Use Assets. These Assets consists of capitalized lease and rental contracts.

Machinery
Land and and
Buildings Equipment Vehicles Other Total
As at April 1, 2019 522 193 861 3 1,579
Change in Asset Value
New Contracts 161 117 278
Depreciation (147) (138) (326) (3) (614)
Other Adjustments 48 103 31 182
Balance 62 (35) (178) (3) (154)
As at March 31, 2020
Carrying Amount 584 158 683 1,425
Change in Asset Value
New Contracts 128 76 612 816
Depreciation (152) (62) (411) (625)
Transfer (63) 63
Balance (24) (49) 264 191
As at March 31, 2021
Carrying Amount 560 109 947 1,616

16. Deferred Income Tax Assets and Liabilities

Deferred Income Tax resulting from temporary differences between the fiscal and commercial value of assets and liabilities is accounted for in the nominal tax rate applicable in the country concerned, but only if it is likely to be realized from future taxable profits. This likelihood assessment is based on projections of the future taxable results of the relevant entities in the Group. These projections are partly based on approved budgets.

The Deferred Tax Assets and Liabilities stated in the balance sheet can be attributed to the following items:

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Assets
Liabilities
Assets Liabilities
Property, Plant and Equipment 297 189 230 233
Financial Non-Current Assets 219 229
Inventories 151 201
Other Receivables 245 257
Employee
Benefits
342 336
Other Assets 65 66 38
Tax Loss Carry-Forward
Balance of Assets and
Liabilities 1,319 189 1,318 271
April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Current 14 17
Non-Current 1,116 1,030
Deferred Tax Assets and Liabilities 1,130 1,047
April 1, 2020/ April 1, 2019/
Change in Net Deferred Tax March 31, 2021 March 31, 2020
Opening Balance 1,047 1,696
Recognized in Income Statement 83 (649)
Deferred Tax Assets and Liabilities 1,130 1,047

The deferred tax asset position was increased by € 83 (reduced the previous year by € 649) due to changes in tariffs (previous year mainly relating to the loss from finalizing the liquidation of Holland Colours China Ltd).

17. Inventory

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Raw Materials 7,173 6,470
Finished Goods 5,431 6,312
Inventory 12,604 12,782

The Income Statement includes an amount of € 46,429 (2019/2020: € 51,890) under the direct selling cost and raw materials for usage of inventory goods.

At March 31, 2021, the provision for obsolete inventory amounted to € 1,010 (March 31, 2020: € 1,013). Movements in the provision for obsolete inventory are shown below.

April 1, 2020/ April 1, 2019/
March 31, 2021 March 31, 2020
Opening Balance (1,013) (962)
Additions to the Provision (319) (59)
Impairments Charged to the Provision 299 8
Exchange
Rate
Differences
23
Closing Balance (1,010) (1,013)

Impairments charged to the provision relates to sales from inventory where provided for, or to disposal of obsolete inventory.

18. Trade and Other Receivables

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Trade Debtors 14,703 16,800
Tax-Related Receivables 907 1,066
Prepaid Items 1,037 991
Trade and Other Receivables 16,647 18,857
CONTENTS
INTRODUCTION
ABOUT
REPORT OF THE BOARD
CORPORATE
REPORT OF THE
REMUNERATION
EMPLOYEE
FIVE-YEAR SUMMARY
FINANCIAL
BY THE CEO
HCA
OF MANAGEMENT
GOVERNANCE
SUPERVISORY BOARD
REPORT
PARTICIPATION
& INVESTOR RELATIONS
STATEMENTS
OTHER
INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ----------------------

The Tax-Related Receivables relates to a VAT claim in Indonesia. The Group expects to receive the claim in full in the next financial year. The aging specification of Trade Debtors is shown in the table below.

March 31, 2021 March 31, 2020
13,589 14,978
940 1,295
84 279
38 174
52 74
14,703 16,800
Trade Debtors by Currency March 31, 2021 March 31, 2020
Euro 8,121 8,878
US dollar 5,198 6,626
British pound 420 301
Other Currencies 964 995
Total 14,703 16,800

Trade and Other Receivables with less than one year to maturity are recognized initially at fair value and subsequently at amortized cost. Additions to the Provision for Doubtful Debts are included in the Income Statement under Other Operating Expenses.

The table below shows movements in the Provision for Doubtful Debts.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Opening Balance (191) (82)
Releases from or additions to the Provision 58 (117)
Write-off
of
Trade
Debtors
(27)
Exchange
Rate
Differences
(1) 8
Closing Balance (161) (191)

19. Cash and Cash Equivalents

March 31, 2021 March 31, 2020
Bank Balances 16,633 7,660
Cash Balances 5 6
Cash in Cash Flow Statement 16,638 7,666

The Cash and Cash Equivalents are freely available to the Company. The credit risk on Cash and Cash Equivalents is limited as the counterparties are generally banks with high credit ratings from international credit-rating agencies.

FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

20. Share Capital

ISSUED SHARE CAPITAL

The registered capital of Holland Colours NV is € 6,810 divided into 3,000,000 ordinary shares with a face value of € 2.27 per share. Of this registered total, an amount of 860,351 shares are issued and fully paid up. The total issued share capital is € 1,953. There were no changes to the issued capital in either the 2020/2021 or the 2019/2020 financial year.

SHARE PREMIUM RESERVE

The Share Premium Reserve of € 1,219 is available for distribution to shareholders and is unchanged relative to the last financial year.

21. Other Reserves

LEGAL RESERVE FOR FOREIGN CURRENCY TRANSLATION

The Foreign Currency Translation Reserve relates to all exchange-rate differences that originate from the translation of the financial statements of the subsidiaries with a functional currency other than the euro. This only applies to the non-monetary accounts. These translation results are directly allocated to Equity via Other Comprehensive Income. This practice was initiated on April 1, 2004, in accordance with the exception allowed in IFRS 1.

LEGAL RESERVE FOR HEDGE

Hedge accounting is applied to the net investment hedge of a USD 2.5 million loan that was redeemed as of March 2016. Hedge accounting results are included in Other Comprehensive Income until the net investment is sold. At that time, the results are recognized in the Income Statement. The net investment reserve is reduced by Deferred Taxes.

LEGAL RESERVE FOR INTANGIBLE ASSETS

A statutory reserve for development costs is formed in the Company financial statements, although not specifically required under IFRS. This statutory reserve is formed within equity to maintain alignment with Equity in the Company financial statements.

The above-mentioned reserves may not be distributed freely to shareholders. Negative amounts reduce the amount available for distribution and positive amounts are nondistributable.

22. Earnings per Share

Earnings per share allocated to shareholders (ordinary and diluted) in the 2020/2021 financial year amounted to € 11.00 (2019/2020: € 9.09). The calculation of the earnings per share at March 31, 2021 is based on the net result attributable to shareholders of € 9,471 (2019/2020: € 7,823) and the average number of shares issued in the 2020/2021 financial year of 860,351. The total number of issued shares did not change compared to March 31, 2020.

23. Non-Controlling Interest

This concerns a non-controlling interest of 12% in the net asset value at March 31, 2021 of PT Holco Indo Jaya (2019/2020: 12%).

24. Credit Facility

The company does not have any long-term debt positions outstanding (March 31, 2020: also nil). Short term funding needs are covered with access to current account credit facilities of € 7,937 per balance sheet date (March 31, 2020: € 8,002). These facilities are provided by various international and local banks and have no expiration date. The amount drawn was nil at the March 31 balance sheet date for both 2021 and 2020.

The bank agreements and collateral provided in relation to the Group's financing is limited to mortgage rights on real estate in Indonesia with a maximum value of € 724 (March 31, 2020: € 770).

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

25. Lease Liabilities

The Group recognized Lease Liabilities on the balance sheet. The table below shows the movement and breakdown of Non-Current and Current Lease Liabilities.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Opening Balance 1,444 1,579
Lease Payments (660) (667)
New Contracts 815 278
Other Adjustments 254
Closing Balance 1,599 1,444
April 1, 2020/ April 1, 2019/
March 31, 2021 March 31, 2020
Non-Current Lease Liabilities 956 565
Current Lease Liabilities 643 879
Total 1,599 1,444

Maturity analysis – contractual undiscounted cashflows:

March 31, 2021 March 31, 2020
Less than 1 year 75 118
Between 1 and 5 years 1,618 1,460
Longer than 5 years
Total 1,693 1,578

26. Employee Benefit Obligations

PRE-PENSION PLAN IN THE NETHERLANDS

The pre-pension plan in the Netherlands relates to the obligation to issue a conditional annual payment.

As explained in Note 3, the originally agreed conditional financing of past service years in the pre-pension plan has been converted into an equivalent annual payment, which is also conditional. At March 31, 2021 the resulting liability amounted to € 299. On March 31, 2020 the liability was € 392.

LEGAL LIABILITY ON TERMINATION OF EMPLOYMENT – INDONESIA

This mainly relates to the legal liability to make a payout should the employment of Indonesian personnel be terminated. As of the reporting date, the primary actuarial assumptions are:

March 31, 2021 March 31, 2020
Discount Rate 7.0% 8.3%
Expected Return Fund Capital Expenditures 7.0% 8.3%
Future Salary Increases 6.0% 7.0%
Average Remaining Period of Employment 8.00 9.20

Assumptions relating to future mortality rates are based on published statistical data and mortality tables. The mortality table used is the TMI 2011 (2019/2020: TMI 2011) table with a correction factor varying for age and gender. The total expected long-term Return on Investment amounts to 7.0% (March 31, 2020: 8.3%).

OTHER EMPLOYEE BENEFITS

The Other Employee Benefits item also includes a provision for future jubilee payments of € 285 (March 31, 2020: € 274) and other future payments of € 11 (March 31, 2020: € 18).

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

Movements in the Employee Benefit Obligations are shown in the table below.

Pre
pension
Plan the
Netherlands
Statutory
Termination
Employment
Plan
Indonesia
Other
Employee
Benefits
Total
As at March 31, 2019 448 479 328 1,255
Additions 51 18 69
Withdrawals/Releases (56) (4) (51) (111)
Exchange
Rate
Differences
11 (3) 8
As at March 31, 2020 392 537 292 1,221
Additions 102 2 104
Withdrawals/Releases (93) (24) (117)
Exchange
Rate
Differences
(32) 1 (31)
As at March 31, 2021 299 583 295 1,177

Of this total, the following amounts have been accounted for under current liabilities:

Pre
pension
Plan the
Netherlands
Statutory
Termination
Employment
Plan
Indonesia
Other
Employee
Benefits
Total
As at March 31, 2021 21 63 84
As at March 31, 2020 19 68 87

27. Trade and Other Liabilities

March 31, 2021 March 31, 2020
Trade Creditors 7,739 8,948
Payables Regarding Other Taxes 505 349
Other Liabilities and Accruals 5,371 3,117
Trade and Other Liabilities 13,615 12,414

The Payables regarding Other Taxes relates mainly to sales tax.

The Other Liabilities and Accruals also includes a profit share to be paid to employees of € 2,048 (March 31, 2020: € 1,210).

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

OTHER DISCLOSURES

ABOUT HCA

IN THOUSANDS OF EUROS, UNLESS STATED OTHERWISE

28. Commitments and Contingencies

CAPITAL COMMITMENTS

The Group had entered into capital commitments regarding Property, Plant and Equipment as at balance sheet date of € 1,025 (March 31, 2020: € 909).

PURCHASE CONTRACTS

The total commitment resulting from raw material purchase contracts was € 2,977 (March 31, 2020: € 2,388).

29. Related Parties

IDENTITY OF RELATED PARTIES

The related parties can be divided into the relations between the Group on the one hand and its subsidiary companies, the members of the Board of Management, Supervisory Board, and the holding company Holland Pigments BV.

REMUNERATION OF KEY OFFICERS OF THE GROUP

The key officers are the members of the Board of Management.

REMUNERATION POLICY

The remuneration policy for the Board of Management, which consists of the Chief Executive Officer, Chief Financial Officer and Chief Technology Officer, is set by the Supervisory Board. A separate Remuneration Committee is in place. Holland Colours strives to pay remuneration in line with the market for a company of its size, and in proportion to its overall salary structure. The remuneration package consists of a fixed element and a variable element. Fixed salaries are adjusted annually in line with inflation. The variable payment for the Board of Management consists of a bonus plan based on achieving financial and non-financial targets. The bonus is up to three times the monthly salary in the event that 100% of the targets are achieved. The Board of Management also participates in the profit-sharing plan, under which Holland Colours pays up to 1.5 months' salary. For the Board of Management, the profit-sharing plan depends on the ROI realized by Holland Colours whereby 75% of this part of the bonus is paid in shares of Holland Pigments. Based on the results for the 2020/2021 financial year the Board of Management will receive such a payment. For 2020/2021, the Board of Management partly achieved the bonus targets. An accrual for payout has been made.

The Company does not offer an option plan.

The Group does not provide any personal loans, guarantees or advance payments to the members of the Board of Management or the Supervisory Board.

The contracts with the Chief Executive Officer, the Chief Financial Officer and the Chief Technology Officer specify a term of appointment of four years and a severance payment which is in accordance with the recommendations of the Dutch Corporate Governance Code.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

OTHER DISCLOSURES

The breakdown of the remuneration for the Board of Management and Supervisory Board is listed in the table below.

Board of Management Coen Vinke Tanja van Dinteren Eelco van Hamersveld Margret Kleinsman Total
2020/2021 2019/2020 2020/20211 2019/2020 2020/2021 2019/2020 2020/2021 2019/20202 2020/2021 2019/2020
Fixed Salary 329 326 162 190 185 179 681 690
Pension Expenses 26 25 10 20 19 23 56 67
Variable Element 99 105 56 53 55 208 160
Non-Recurring Payment
454 456 228 263 259 202 945 917

Transactions with Key Officers

Other than the regular remuneration, no transactions with key officers took place during the financial year.

Other Interests of Members of the Board of Management

No transactions were effectuated during the financial year with parties in which any of the Supervisory Board Members, Members of the Board of Management or their partners have an interest.

Supervisory Board 2020/2021 2019/2020
Roland Zoomers 38 38
Gert-Hein de Heer 26 26
Aukje Doornbos 26 26
Jorrit Klaus 26 26
Total 116 116

1 Included for 10 months.

2 Included for 9 months.

The Annual General Meeting of Shareholders determines the remuneration of the Supervisory Board Members. The fixed remuneration is intended to be in line with the market given the size of the Company.

Holland Pigments BV

At the balance sheet date, the Dutch based investment company Holland Pigments BV held 434,054 (March 31, 2020: 434,048) shares in Holland Colours NV. Within Holland Pigments BV employees collectively held approximately 25% of the shares of Holland Pigments BV.

The costs incurred by Holland Pigments BV in connection to activities relating to the employee participation are partly reimbursed by Holland Colours NV, please refer to page 49 for a further description of the activities of Holland Pigments. An amount of € 91 was accordingly paid to Holland Pigments BV in the 2020/2021 financial year (2019/2020: € 91).

At the balance sheet date, there was no outstanding material position with Holland Pigments BV. Receivables from and payables to Holland Pigments BV are not covered by commercial collateral, are non-interest-bearing and are settled in cash.

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

OTHER DISCLOSURES

CONTENTS

30. Other Disclosures

PROFIT-SHARING PLAN

Holland Colours Group operates a profit-sharing plan for its employees. The plan is the same for all Group employees and may, depending on the ROI and operating result of the Division, result in a payment of up to 1.5 months' salary. Depending on the position of the individual employee, 25% to 75% of this payment is made in Holland Pigments BV shares in recognition of the employee participation model. Settlement to the employees takes place after the financial statements have been adopted by the Annual General Meeting of Shareholders of Holland Colours. The applicable shares in Holland Pigments BV are purchased for the employee at the last calculated price of Holland Pigments BV shares. The remainder of the profit-sharing payment is paid in cash to the employees by Holland Colours NV after the relevant statutory deductions have been made.

A profit-sharing payment is applicable to the employees on the basis of the results in the 2020/2021 financial year.

The shares held by Holland Pigments BV in Holland Colours NV are specified below.

2020/2021 2019/2020
Number of Shares in Holland Colours NV held
by Holland Pigments BV
Situation at April 1 434,048 434,043
Purchased by Holland Pigments BV 6 5
Situation at March 31 434,054 434,048
In euros
Share Price of Holland Colours NV at
Balance Sheet Date 124.00 80.00
Value 53,822,696 34,723,840

SUBSEQUENT EVENTS

No events took place after the reporting period that could materially affect the financial statements.

EMPLOYEE NUMBERS

During the 2020/2021 financial year, the Company employed an average of 436 FTEs (2019/2020: 425 FTEs). Of these, 137 FTEs (2019/2020: 140 FTEs) were employed in the Netherlands.

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS OTHER INFORMATION

FINANCIAL STATEMENTS

COMPANY INCOME STATEMENT

FOR THE FINANCIAL YEAR ENDED MARCH 31, 2021

In thousands of euros Note April 1, 2020/March 31, 2021 April 1, 2019/March 31, 2020
Management Fees 7,130 7,156
Personnel Expenses 34 (2,859) (2,278)
Amortization 36 (123) (141)
Depreciation 37/38 (189) (280)
Other Costs (2,731) (2,677)
Operating Result 1,228 1,780
Interest Income 93 24
Interest Expenses (28)
Result before Tax 1,293 1,804
Income Tax 35 (360) (527)
Result Subsidiaries 39 8,538 6,546
Net Result 9,471 7,823

REMUNERATION REPORT

FIVE-YEAR SUMMARY EMPLOYEE PARTICIPATION

& INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

COMPANY

BALANCE SHEET

AS OF MARCH 31, 2021 BEFORE PROPOSED PROFIT APPROPRIATION

In thousands of euros Note March 31, 2021 March 31, 2020 In thousands of euros Note March 31, 2021 March 31, 2020
Non-Current Assets Equity
Share Capital 40 1,953 1,953
Intangible Assets 36 154 277 Share Premium Reserve 40 1,219 1,219
Property, Plant and Equipment 37 1,161 1,242 Statutory Reserves 40 (1,633) 608 *
Right-of-Use Assets 38 271 194 Retained Earnings 40 39,248 35,241*
Financial Non-Current Assets 39 49,834 38,961 Result for the Year 40 9,471 7,823*
51,420 40,674 Total Equity 50,258 46,844
Current Assets Non-Current Liabilities
Receivables from Group Companies 596 6,906 Lease Liabilities 43 193 114
Other Receivables and Prepayments 188 194 Employee
Benefit
Obligations
44 21 56
Cash and Cash Equivalents 1,523 916 214 170
2,307 8,016
Current Liabilities
Payables to Group Companies 172 18
Lease Liabilities 43 147 85
Income Tax Liabilities 1,230 412
Other Liabilities and Accrued Income 1,706 1,161*
3,255 1,676
Total Equity and Liabilities 53,727 48,690
Total Assets 53,727 48,690 * Comparative figures have been restated.
April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Wages and Salaries (2,536) (1,947)
Social Security (161) (150)
Pension Costs (162) (181)
Total Personnel Expenses (2,859) (2,278)

The average number of employees in the Company in the 2020/2021 financial year was 15 FTEs (2019/2020: 16 FTEs). For an explanation of the remuneration of management, please refer to Note 29, Related Parties, of the consolidated financial statements.

35. Income Tax

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Current Tax
Current Year (511) 22
Prior Years (14) (212)
Deferred Tax 165 (337)
Total Income Tax (360) (527)

REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS OTHER INFORMATION

NOTES TO THE COMPANY FINANCIAL STATEMENTS

REPORT OF THE SUPERVISORY BOARD

CORPORATE GOVERNANCE

IN THOUSANDS OF EUROS, UNLESS STATED OTHERWISE

ABOUT HCA

31. General Information

INTRODUCTION BY THE CEO

CONTENTS

The Company financial statements are part of the financial statements of Holland Colours NV and are prepared in accordance with the legal requirements of Title 9, Book 2 of the Dutch Civil Code. Holland Colours NV applies the same accounting policies to the Company financial statements as those used in the consolidated financial statements under the possibility given in Article 2:362, paragraph 8 of the Dutch Civil Code to apply. The only exception relates to the accounting standards relating to participations in Group companies. Investments in consolidated subsidiaries are measured at net asset value.

REPORT OF THE BOARD OF MANAGEMENT

The 2020/2021 Company financial statements were presented to the Supervisory Board to be approved for publication on June 3, 2021. The financial statements will be presented to the Annual General Meeting of Shareholders for adoption on July 15, 2021.

32. Summary of Accounting Principles

The accounting policies used for the Company financial statements are the same as those used for the consolidated financial statements. Unless other standards are stated, the reader is referred to the standards stated in the consolidated financial statements.

33. Subsidiaries

INVESTMENTS IN SUBSIDIARIES

Investments in subsidiaries and other companies over which the Company has a controlling interest or exercises central management are measured at net asset value. The net asset value is based on the measurement of assets, provisions and liabilities, and the determination of net profit in accordance with the accounting policies used in the consolidated financial statements.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

36. Intangible Assets

Development Assets under
Costs Other Construction Total
As at March 31, 2019
Cost 1,979 1,357 28 3,364
Accumulated Amortization (1,569) (1,320) (2,889)
Carrying Amount 410 37 28 475
Change in Asset Value
Capital Expenditures
Carrying Amount of Disposed Assets (57) (1,264) (1,321)
Amortization of Disposed Assets 1,264 1,264
Amortization (127) (14) (141)
Balance (184) (14) (198)
As at March 31, 2020
Cost 1,922 93 28 2,043
Accumulated Amortization (1,696) (70) (1,766)
Carrying Amount 226 23 28 277
Change in Asset Value
Capital Expenditures
Transfer 28 (28)
Amortization (107) (16) (123)
Balance (107) 12 (28) (123)
As at March 31, 2021
Cost 1,922 121 2,043
Accumulated Amortization (1,803) (86) (1,889)
Carrying Amount 119 35 154

The Company's total expenses for research and development were € 1,734 in the financial year (2019/2020: €717). Of this amount nil (2019/2020: nil) is capitalized, whereas the remainder is reported under Other Income and Expenses after Tax in the Company financial statements.

The costs of Amortization and Impairments of € 123 (2019/2020: € 141) are included in the Amortization item in the Company financial statements.

Most of the disposed Assets in previous year were already fully depreciated and the impact on the book value of Intangible Assets was € 57.

The Other Intangible Assets consist of the costs of computer software and licenses, and the external costs related to their implementation and commissioning.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

37. Property, Plant and Equipment

Land and Machinery and Other Assets under
Buildings Equipment Capital Assets Construction Total
As at March 31, 2019
Cost 3,804 1,845 625 6,274
Accumulated Depreciation (2,762) (1,373) (535) (4,670)
Carrying Amount 1,042 472 90 1,604
Change in Asset Value
Capital Expenditures 73 32 105
Carrying Amount of Disposals (775) (1,639) (356) (2,770)
Depreciation of Disposed Assets 751 1,259 369 2,379
Impairments
Depreciation (13) (16) (47) (76)
Balance 36 (396) (34) 32 (362)
As at March 31, 2020
Cost 3,102 206 269 32 3,609
Accumulated Depreciation (2,024) (130) (213) (2,367)
Carrying Amount 1,078 76 56 32 1,242
Change in Asset Value
Capital Expenditures 1 1
Transfer Assets under Construction 32 (32)
Carrying Amount of Disposals
Transfer Cost between Categories 206 (206)
Transfer Accumulated Depreciation
between Categories (130) 130
Depreciation (42) (40) (82)
Balance 66 (76) (40) (31) (81)
As at March 31, 2021
Cost 3,340 269 1 3,610
Accumulated Depreciation (2,196) (253) (2,449)
Carrying Amount 1,144 16 1 1,161

The costs of Depreciation and Impairments of € 82 (2019/2020: € 76) are included in the Depreciation item in the Company financial statements.

FINANCIAL
BY THE CEO
HCA
OF MANAGEMENT
GOVERNANCE
SUPERVISORY BOARD
REPORT
PARTICIPATION
& INVESTOR RELATIONS
STATEMENTS
OTHER
INFORMATION
FIVE-YEAR SUMMARY EMPLOYEE REMUNERATION REPORT OF THE CORPORATE REPORT OF THE BOARD ABOUT INTRODUCTION CONTENTS
----------------------------------------------------------------------------------------------------------------------------------------------------- ---------------------- -- ------------------- ---------- -------------- --------------- ----------- --------------------- ------- -------------- ----------

38. Right-of-Use assets

The table below shows the movement of Right-of-Use Assets. These assets consist of capitalized lease and rental contracts.

Vehicles Total
As at April 1, 2019 281 281
Change in Asset Value
New Contracts 117 117
Depreciation (204) (204)
(87) (87)
As at March 31, 2020
Carrying Amount 194 194
Change in Asset Value
New Contracts 184 184
Depreciation (107) (107)
77 77
As at March 31, 2021
Carrying Amount 271 271

39. Financial Non-Current Assets

The Financial Non-Current Assets can be specified as follows:

March 31, 2021 March 31, 2020
Investments in Subsidiaries 42,329 38,221
Loans to Group companies and Deferred Tax Assets 7,505 740
Financial Non-Current Assets 49,834 38,961

The table below shows movements in the investments in subsidiaries.

April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Opening Balance 38,221 32,855
Movements:

Result from Subsidiaries
8,538 6,546

Change in Equity
(8) (56)

Dividends Declared
(2,288) (1,516)

Currency Translations
(2,134) 392
Closing Balance 42,329 38,221
CONTENTS
INTRODUCTION
ABOUT
REPORT OF THE BOARD
CORPORATE
REPORT OF THE
REMUNERATION
EMPLOYEE
FIVE-YEAR SUMMARY
FINANCIAL
BY THE CEO
HCA
OF MANAGEMENT
GOVERNANCE
SUPERVISORY BOARD
REPORT
PARTICIPATION
& INVESTOR RELATIONS
STATEMENTS
OTHER
INFORMATION
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ ---------------------- -- -- -- -- -- -- -- -- -- --

Movements in the Loans to Group companies and Deferred Tax Assets are shown below.

Deferred
Tax
Assets
Loans to
Group
companies
Total
As at March 31, 2019 1,121 275 1,396
Additions
Withdrawals (381) (275) (656)
As at March 31, 2020 740 740
Additions 75 6,950 7,025
Withdrawals (260) (260)
As at March 31, 2021 815 6,690 7,505

40. Equity

For a clarification on the Share Capital and Share Premium, as well as the movement of the Foreign Currency Translation Reserve, Hedge Reserves and Other Reserves, please refer to the Statement of Equity and to Notes 20 and 21 of the consolidated balance sheet, as there are no differences between Company Equity and consolidated Equity.

41. Statutory Provisions regarding the Appropriation of Profits

REGARDING THE APPROPRIATION OF PROFITS, THE ARTICLES OF ASSOCIATION STATE THE FOLLOWING:

Article 21

    1. From the profit established in the approved financial statements, reserves are formed as determined by the Board of Management with the approval of the Supervisory Board.
    1. The profit remaining after the transfer to the reserves and distribution as stated in paragraph 1 is at the disposal of the Annual General Meeting of Shareholders, with due regard to the provisions of Section 105, Book 2 of the Dutch Civil Code.
    1. The Board of Management, with the approval of the Supervisory Board, is authorized to decide on the distribution of an interim dividend with due regard to the provisions of Article 105 Book 2 of the Dutch Civil Code.
    1. The dividend will be made payable within one month after it has been set, in the manner and at the place determined by the Board of Management.
    1. Claims for profit distribution expire after a period of five years from the date on which the dividends were made payable.
    1. A resolution regarding the disposal of any reserve may be adopted by the Annual General Meeting of Shareholders with due regard to the legal and statutory provisions.

PROPOSAL FOR THE APPROPRIATION OF PROFIT

In compliance with Article 21 of the Articles of Association and the Dividend Policy as discussed in the Annual General Meeting of Shareholders of last year, and set out on page 51 under Investor Relations, it is proposed to appropriate the total net profit to the other reserves. The proposal for appropriation of profit has not been included in the balance sheet.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

42. Credit Facility

The Company has an available credit facility in the Netherlands of € 7,000 (March 31, 2020: € 7,000). Per end of March 2021, the Company has not used this credit facility and no collaterals have been provided.

43. Lease Liabilities

The Company recognized Lease Liabilities on the balance sheet. The table below shows the movement and breakdown of Non-Current and Current Lease Liabilities.

April 1, 2020/ April 1, 2019/
March 31, 2021 March 31, 2020
Opening Balance 199 281
Lease Payments (43) (199)
New Contracts 184 117
Closing Balance 340 199
April 1, 2020/
March 31, 2021
April 1, 2019/
March 31, 2020
Non-Current Lease Liabilities 193 114
Current Lease Liabilities 147 85
Total 340 199

Maturity analysis – contractual undiscounted cashflows:

March 31, 2021 March 31, 2020
19 15
330 188
349 203

44. Employee Benefit Obligations

This employee benefit provision relates to the obligation to issue a conditional annual payment.

The liabilities regarding employee benefits also include the item Other Employee Benefits. This relates to a provision for future jubilee payments of € 12 (March 31, 2020: € 7) and other future payments of nil (March 31, 2020: nil).

Movements in the Employee Benefit Obligations were as follows:

Pre-pension
Plan
the Netherlands
Other
Employee
Benefits
Total
As at March 31, 2019 92 7 99
Additions
Withdrawals (19) (19)
As at March 31, 2020 73 7 80
Additions 9 9
Withdrawals (43) (4) (47)
As at March 31, 2021 30 12 42
CONTENTS
BY THE CEO
INTRODUCTION
ABOUT
HCA
REPORT OF THE BOARD
OF MANAGEMENT
CORPORATE
GOVERNANCE
REPORT OF THE
SUPERVISORY BOARD
REMUNERATION
REPORT
EMPLOYEE
PARTICIPATION
FIVE-YEAR SUMMARY
& INVESTOR RELATIONS
FINANCIAL
STATEMENTS
OTHER
INFORMATION
-- ------------------------ ------------------------------ -------------------------------------- ------------------------- ------------------------------------ ------------------------ --------------------------- ------------------------------------------- ------------------------- ----------------------

The following amounts have been accounted for as current under Other Liabilities and Accrued Income:

Pre-pension
Plan the
Netherlands
Other
Employee
Benefits
Total
As at March 31, 2021 16 5 21
As at March 31, 2020 19 5 24

45. Audit Fees

In the 2020/2021 financial year, the following audit fees were charged by the independent auditor, PricewaterhouseCoopers Accountants NV, to the Income Statement in accordance with Section 382a Title 9 Book 2 of the Dutch Civil Code.

2020/2021 2019/2020
Audit of the Financial Statements 292 261
Other Audit Services
Tax Services
Other Non-Audit Services
Audit Fees 292 261

The total costs of PricewaterhouseCoopers Accountants NV for their procedures in the Netherlands amount to € 208 (previous year: € 180). The remaining € 84 (previous year: € 81) were charged to the Company by other PwC network entities.

46. Other Disclosures

SUBSEQUENT EVENTS

No events took place after the reporting period that could materially affect the financial statements.

WRITTEN GUARANTEE

Holland Colours NV has given a guarantee for its subsidiary Holland Colours Europe BV in accordance with Section 403, Title 9, Book 2 of the Dutch Civil Code, and according to Section 479A of the Companies Act on behalf of its subsidiary Holland Colours UK Ltd.

Holland Colours NV has not issued any other written guarantee as security for the payment obligations of foreign companies.

OTHER INFORMATION

The Company forms a tax unity together with Holland Colours Europe BV with regard to income tax and sales tax. Both the Company and its subsidiary are jointly and severally liable for tax payable by all companies that are part of the tax entity.

Apeldoorn, June 3, 2021

Coen Vinke Roland Zoomers Tanja van Dinteren Gert-Hein de Heer Eelco van Hamersveld Aukje Doornbos

Board of Management Supervisory Board

Jorrit Klaus

OTHER INFORMATION

ABOUT HCA

REPORT OF THE BOARD OF MANAGEMENT

Independent Auditor's Report

INTRODUCTION BY THE CEO

To: the General Meeting and the Supervisory Board of Holland Colours NV.

REPORT ON THE FINANCIAL STATEMENTS 2020/2021 Our opinion

In our opinion:

  • the consolidated financial statements of Holland Colours NV together with its subsidiaries ('the Group') give a true and fair view of the financial position of the Group as of March 31, 2021, and of its result and cash flows for the year then ended, in accordance with International Financial Reporting Standards as adopted by the European Union ('EU-IFRS') and with Part 9 of Book 2 of the Dutch Civil Code;
  • the company financial statements of Holland Colours NV ('the Company') give a true and fair view of the financial position of the Company as of March 31, 2021, and of its result for the year then ended in accordance with Part 9 of Book 2 of the Dutch Civil Code.

What we have audited

We have audited the accompanying financial statements 2020/2021 of Holland Colours NV, Apeldoorn. The financial statements include the consolidated financial statements of the Group and the company financial statements.

The consolidated financial statements comprise:

REPORT OF THE SUPERVISORY BOARD

CONTENTS FINANCIAL

CORPORATE GOVERNANCE

  • the consolidated balance sheet as of March 31, 2021;
  • the following statements for the financial year ended March 31, 2021: the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated cash flows statement; and
  • the notes to the consolidated financial statements, comprising significant accounting policies and other explanatory information.

The company financial statements comprise:

  • the company income statement for the financial year ended March 31, 2021;
  • the company balance sheet as of March 31, 2021 before proposed profit appropriation; and
  • the notes to the company financial statements, comprising the accounting policies applied and other explanatory information.

The financial reporting framework applied in the preparation of the financial statements is EU-IFRS and the relevant provisions of Part 9 of Book 2 of the Dutch Civil Code for the consolidated financial statements and Part 9 of Book 2 of the Dutch Civil Code for the company financial statements.

The basis for our opinion

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

EMPLOYEE PARTICIPATION

REMUNERATION REPORT

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. We have further described our responsibilities under those standards in the section 'Our responsibilities for the audit of the financial statements' of our report.

STATEMENTS

OTHER INFORMATION

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of Holland Colours NV in accordance with the European Union Regulation on specific requirements regarding statutory audit of public-interest entities, the 'Wet toezicht accountantsorganisaties' (Wta, Audit firms supervision act), the 'Verordening inzake de onafhankelijkheid van accountants bij assuranceopdrachten' (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore, we have complied with the 'Verordening gedrags- en beroepsregels accountants' (VGBA, Dutch Code of Ethics).

Our audit approach

Overview and context

Holland Colours NV manufactures, distributes, and sells solid and liquid color- and additive concentrates. The Group is comprised of several components and we considered the scope and approach of our audit as set out in the section

REMUNERATION REPORT

EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS STATEMENTS OTHER INFORMATION

OTHER INFORMATION

'The scope of our Group audit.' We paid specific attention to the areas of focus driven by the operations of the Group, as set out below.

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular, we considered where the Board of Management made important judgements, for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. In note 3 of the financial statements, the Company describes the areas of judgement in applying accounting policies and the key sources of estimation uncertainty. Given the estimation uncertainty, magnitude and the related inherent risks of material misstatement in the valuation of inventory, we considered this to be a key audit matter as set out in the section 'Key audit matters' of this report. Furthermore, we identified revenue recognition as a key audit matter because of the various price agreements and terms and conditions for delivery of the product to customers. There have been no important changes in the key audit matters assessment because of the long-term nature of the Group business activities.

Another area of focus, not considered to be a key audit matter, was the impact of the COVID-19 pandemic on the valuation of assets and the Company's ability to continue as a going concern. The impact of the COVID-19 pandemic is described in note 2 of the financial statements.

As in all our audits, we also addressed the risk of management override of internal controls, including evaluating whether there was evidence of bias by the Board of Management that may represent a risk of material misstatement due to fraud.

We ensured that the audit teams at both Group and component level included the appropriate skills and

competences that are needed for the audit of an international manufacturing company. To increase the quality of the audit, we also included IT specialists in our team, who, working centrally, performed specified audit procedures on IT and reported the findings to the component teams.

The outline of our audit approach was as follows:

Materiality

• Overall materiality: € 800,000.

Audit scope

  • The Group consists of three significant components: Holland Colours Europe BV, Holland Colours Americas Inc, and PT Holland Colours Asia in Indonesia, and six other non-significant components.
  • At the head office in Apeldoorn, The Netherlands, the PwC group engagement team audited Holland Colours NV and Holland Colours Europe BV, and instructed the component auditors in Indonesia and the USA to perform an audit on the complete set of financial information.
  • The PwC group engagement team instructed the component auditor in Hungary to perform specified audit procedures for group purposes. This consisted of attending inventory counts in Hungary.
  • Audit coverage: 92% of consolidated revenue, 93% of consolidated total assets and 95% of consolidated profit before income tax.

Key audit matters

  • Revenue recognition
  • Assumptions in the valuation of inventory
CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

OTHER INFORMATION

Materiality

The scope of our audit was influenced by the application of materiality, which is further explained in the section 'Our responsibilities for the audit of the financial statements.'

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall materiality for the financial statements as a whole as set out in the table below. These, together with qualitative considerations, helped us to determine the nature, timing, and extent of our audit procedures on the individual financial-statement line items and disclosures, and to evaluate the effect of identified misstatements, both individually and in aggregate, on the financial statements as a whole and in our opinion.

Overall Group materiality € 800,000 (2019/2020: € 850,000).
Basis for determining
materiality
We used our professional judgement to determine overall materiality. As a basis for
our judgement, we used 0.85% of net revenue from continuing operations rounded
to € 800,000.
Rationale for benchmark
applied
We used revenue as the primary benchmark, a generally accepted auditing practice,
based
on
our
analysis
of
the
common
information
needs
of
the
users
of
the
financial
statements. From a stakeholder's perspective, the long-term horizon and sustainable
growth
are
reflected
through
the
consideration
of
revenue.
The
Company
has
a
strategic
focus on extending global market positions and the focus on revenue therefore makes
revenue
in
itself
an
important
metric
for
the
financial
performance
of
the
Company.
The negative impact of the COVID-19 pandemic on the Company's revenue does not
change this metric.
Component materiality Based on our judgement, we allocate materiality to each component in our audit scope.
The materiality allocated amounts to less than that of our overall Group materiality. The
range of materiality allocated across components was between € 480,000 and € 799,000.

We also take misstatements and/or possible misstatements into account that, in our judgement, are material for qualitative reasons.

We agreed with the Supervisory Board that we would report to them any misstatements identified during our audit above € 40,000 (2019/2020: € 42,500) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.

The scope of our Group audit

Holland Colours NV is the parent company of a group of entities. The financial information of this group is included in the consolidated financial statements of Holland Colours NV.

We tailored the scope of our audit to ensure that we, in aggregate, provide sufficient coverage of the financial statements for us to be able to give an opinion on the financial statements as a whole, taking into account the management structure of the Group, the nature of

REPORT OF THE SUPERVISORY BOARD CORPORATE GOVERNANCE

REMUNERATION REPORT

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS STATEMENTS OTHER INFORMATION

OTHER INFORMATION

operations of its components, the accounting processes and controls, and the markets in which the components of the Group operate. In establishing the overall Group audit strategy and plan, we determined the type of work required to be performed at component level by the Group engagement team and by each component auditor.

HCA

The audit primarily focused on the significant components of the Group: Holland Colours NV (company only), Holland Colours Europe BV, Holland Colours Americas Inc., and PT Holland Colours Asia. Due to their significance within the Group, an audit of the complete set of financial information was performed on these components.

In total, in performing these procedures, we achieved the following coverage on the financial line items:

Revenue 92%
Total assets 93%
Profit before tax 95%

None of the remaining components represented more than 3% of Group Revenue, Total assets or Profit before tax. For those remaining components we performed, among other things, analytical procedures to corroborate our assessment that there were no significant risks of material misstatements within those components.

The Group engagement team performed the audit work for Group entities Holland Colours NV and Holland Colours Europe BV. For the components Holland Colours Americas Inc. and PT Holland Colours Asia, as well as for the stock count procedures relating to the inventory of Holland Colours Europe BV in Hungary, we used component auditors from the PwC network. These auditors are familiar with the local laws and regulations required to perform this audit work.

Where component auditors performed the audit, we determined the level of involvement we needed to have in their work to be able to conclude whether we had obtained sufficient and appropriate audit evidence as a basis for our opinion on the consolidated financial statements as a whole.

We issued instructions to the component audit teams in our audit scope. These instructions included, amongst others, our risk analysis, materiality, and the scope of the work. We explained to the component audit teams the structure of the Group, the main developments that were relevant for the component auditors, the risks identified, the materiality levels to be applied, and our global audit approach. We had individual calls with each of the in-scope component audit teams both during the year and upon conclusion of their work. During these calls, we discussed any significant accounting and audit issues identified by the component auditors, their reports, the findings of their procedures and other matters that could be of relevance for the consolidated financial statements.

The Group engagement team performed the audit work on the Group consolidation, financial statement disclosures and a number of more complex items at the head office. These included lease accounting and the going concern analysis.

By performing the procedures outlined above at the components, combined with additional procedures exercised at Group level, we have been able to obtain sufficient and appropriate audit evidence on the Group's financial information, as a whole, to provide a basis for our opinion on the financial statements.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in the audit of the financial statements. We have communicated the key audit matters to the Supervisory Board. The key audit matters are not a comprehensive reflection of all matters identified by our audit and that we discussed. In this section, we describe the key audit matters and included a summary of the audit procedures we performed on those matters.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

OTHER INFORMATION

Revenue recognition

The accounting principles for revenue recognition are included in "Summary of accounting principles" (note 3) in the financial statements.

Revenue is recognized when a performance obligation is satisfied by transferring control over a promised good or service. A contract with a customer generally has one performance obligation, which is satisfied at a certain point in time.

The Group applies price agreements per customer and various terms and conditions for delivery of its products to customers. Given the variety in terms and conditions for delivery, determining the timing of transfer of control of the promised goods is inherently complex and due to the magnitude, the number of transactions and the client specific price agreements, this could potentially lead to materially misstated revenue. Therefore, we considered revenue recognition to be a key audit matter.

Key audit matter Our audit work and observations

We updated our understanding of the Group's revenue recognition policies and evaluated the design and implementation of the internal control procedures regarding accuracy and cut-off of revenue.

We evaluated the design and tested the operating effectiveness of the control activities on the exception report to ensure the accuracy of revenue recognition. In this exception report, created by the Group, deviations between order prices and invoiced prices and shipped quantities and invoiced quantities were identified, explained, and followed up.

We obtained the exception report and, together with IT specialists, assessed the reliability of the report by reconciling the exception report to the financial administration. We reperformed the analysis and evaluated the outcome and the follow-up by the Group.

Furthermore, we performed substantive audit procedures to establish the accuracy of revenue accounting. This involved reconciling a sample of invoices to order confirmations and/or any discount agreements, shipping documents, and bank receipts.

With respect to the cut-off, we obtained the Group's revenue recognition analysis. We then tested the mathematical accuracy and the reliability of the underlying data by reconciling the analysis to the invoiced revenue in the last period, and the revenue adjustment to the journal entry recorded. In addition, we tested a sample of the sales transactions in the period immediately before and after the Company's year-end. We did this by tracing the information related to the date of transfer of control to shipping documents and client specific contractual terms and conditions.

The audit procedures were performed by the Group engagement team or by the component teams in Indonesia and the USA.

Our procedures did not result in material findings.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

OTHER INFORMATION

Assumptions in the valuation of inventory

The Board of Management's assumptions are included in note 17 of the financial statements.

With a value of € 12.6 million (2019/2020: € 12.8 million), inventory is one of the significant assets of the Group. Due to its nature, it is subject to market developments that require management judgement. This management judgement especially relates to the valuation of raw materials that are subject to obsolescence due to changing recipes, and to finished goods that are produced for specific clients (including the surcharge for overhead). At year-end, this is reflected in the valuation against the net realizable value, through recognition of an inventory allowance of € 1.0 million.

Marking products as (partly) obsolescent is based on a inventory report and the assessment whether inventory will be sold, which requires management's judgement. Inaccurate pricing and/or obsolescence assessment may, given the significant balance of inventory, result in the inventory being materially misstated. Therefore, we considered this to be a key audit matter.

Key audit matter Our audit work and observations

As part of our risk assessment procedures, we performed look-back procedures to assess the quality of management estimates. This involved comparing the actual write-offs in the current financial year to the inventory allowance in previous years' financial statements.

We also performed substantive audit procedures on the calculation of the standard cost prices against which the inventory is initially valued. This included testing a sample of components in the standard cost price of finished goods by reconciling the raw material component to purchase invoices. In addition, we tested the surcharge for overhead by performing analytical procedures. Here, we compared our expectation with the actual surcharge for overhead included in the inventory valuation as of March 31, 2021. Furthermore, we performed an overall analysis of price- and efficiency variances recorded during the year to test the accuracy of the costing method used for finished goods.

We tested the reliability of the inventory aging report together with IT specialists. This report is used by management to assess the aging of the inventory. We challenged the Group's assumptions related to the valuation per aging category based on actual write-offs and the actual developments in inventory aging. We reviewed revenue on product level for negative margins, which could indicate a lower market value, and discussed developments in the product portfolio and pricing.

The impact of the COVID-19 pandemic was considered in our audit procedures, however the impact on the valuation of the inventory is considered not material.

Our procedures did not result in material findings.

REMUNERATION REPORT

EMPLOYEE PARTICIPATION OTHER INFORMATION

OTHER INFORMATION

REPORT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT

In addition to the financial statements and our auditor's report thereon, the annual report contains other information that consists of:

  • Introduction by the CEO;
  • About Holland Colours;
  • Report of the Board of Management;
  • Corporate Governance;
  • Report of the Supervisory Board;
  • Remuneration Report;
  • Employee Participation;
  • Five-Year Summary;
  • Investor Relations;
  • Other Information;
  • Our Organization;
  • Contact.

Based on the procedures performed as set out below, we conclude that the other information:

  • is consistent with the financial statements and does not contain material misstatements;
  • contains the information that is required by Part 9 of Book 2 and the sections 2:135b and 2:145 subsection 2 of the Dutch Civil Code.

We have read the other information. Based on our knowledge and the understanding obtained in our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements.

By performing our procedures, we comply with the requirements of Part 9 of Book 2 and section 2:135b subsection 7 of the Dutch Civil Code and the Dutch Standard 720. The scope of such procedures was substantially less than the scope of those procedures performed in our audit of the financial statements.

The Board of Management is responsible for the preparation of the other information, including the Report of the Board of Management and the other information, in accordance with Part 9 of Book 2 of the Dutch Civil Code, and the remuneration report in accordance with the sections 2:135b and 2:145 subsection 2 of the Dutch Civil Code.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

Our appointment

We were appointed as auditors of Holland Colours NV on July 10, 2014, by the Supervisory Board. This followed the passing of a resolution by the shareholders at the annual general meeting held on July 10, 2014. Our appointment has been renewed by shareholders annually and now represents a total period of uninterrupted engagement of seven years.

No prohibited non-audit services

To the best of our knowledge and belief, we have not provided prohibited non-audit services as referred to in Article 5(1) of the European Regulation on specific requirements regarding statutory audit of public-interest entities.

Services rendered

In addition to the audit, we have provided no services to the Company or its controlled entities for the period to which our statutory audit relates.

RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS AND THE AUDIT

Responsibilities of the Board of Management and the Supervisory Board for the financial statements

The Board of Management is responsible for:

  • the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the Dutch Civil Code; and for
  • such internal control as the Board of Management determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the financial statements, the Board of Management is responsible for assessing the Company's ability to continue as a going concern. Based on the financial reporting frameworks mentioned, the Board of Management should prepare the financial statements using the going-concern basis of accounting unless the Board of Management either intends to liquidate the Company or to cease operations, or it has no realistic alternative but to do so. The Board of Management should disclose in the financial statements any events and circumstances that may cast significant doubt on the Company's ability to continue as a going concern.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS

EMPLOYEE PARTICIPATION

FIVE-YEAR SUMMARY & INVESTOR RELATIONS STATEMENTS OTHER INFORMATION

OTHER INFORMATION

The Supervisory Board is responsible for overseeing the Company's financial reporting process.

Our responsibilities for the audit of the financial statements

Our responsibility is to plan and perform an audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence to provide a basis for our opinion. Our objectives are to obtain reasonable assurance about whether the 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 but not absolute level of assurance, which makes it possible that we may not detect all material misstatements. Misstatements may arise due to fraud or error. They are considered to be material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.

Materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

A more detailed description of our responsibilities is set out in the appendix to our report.

Utrecht, June 3, 2021

PricewaterhouseCoopers Accountants N.V.

Original signed by W.F.J. Vermeulen RA

STATEMENTS

OTHER INFORMATION

INTRODUCTION BY THE CEO

Appendix to our auditor's report on the financial statements 2020/2021 of Holland Colours NV

ABOUT HCA

In addition to what is included in our auditor's report, we have further set out in this appendix our responsibilities for the audit of the financial statements and explained what an audit involves.

THE AUDITOR'S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

We have exercised professional judgement and have maintained professional skepticism throughout the audit in accordance with Dutch Standards on Auditing, ethical requirements, and independence requirements. Our audit consisted, among other things, of the following:

  • Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error; designing and performing audit procedures responsive to those risks; and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the intentional override of internal control.
  • Obtaining an understanding of internal control relevant to the audit to design audit procedures that are appropriate in the circumstances, but not for the

purpose of expressing an opinion on the effectiveness of the Company's internal control.

REPORT OF THE SUPERVISORY BOARD

CONTENTS FINANCIAL

CORPORATE GOVERNANCE

REPORT OF THE BOARD OF MANAGEMENT

  • Evaluating the appropriateness of accounting policies used, and the reasonableness of accounting estimates and related disclosures made by the Board of Management.
  • Deciding the appropriateness of the Board of Management's use of the going concern basis of accounting, and, based on the audit evidence obtained, concluding whether a material uncertainty exists related to events and/or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report and are made in the context of our opinion on the financial statements as a whole. However, future events or conditions may cause the Company to cease to continue as a going concern.
  • Evaluating the overall presentation, structure, and content of the financial statements, including the disclosures, and evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Considering our ultimate responsibility for the opinion on the consolidated financial statements, we are responsible for the direction, supervision, and performance of the

Group audit. In this context, we have determined the nature and extent of the audit procedures for components of the Group to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole. Determining factors are the geographic structure of the Group, the significance and/or risk profile of Group entities or activities, the accounting processes and controls, and the industry in which the Group operates. On this basis, we selected Group entities for which an audit or review of financial information or specific balances was considered necessary.

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

EMPLOYEE PARTICIPATION

REMUNERATION REPORT

We communicate with the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. In this respect, we also issue an additional report to the audit committee in accordance with Article 11 of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. The information included in this additional report is consistent with our audit opinion in this auditor's report.

We provide the Supervisory Board with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related actions taken to eliminate threats or safeguards applied.

CONTENTS INTRODUCTION ABOUT REPORT OF THE BOARD CORPORATE REPORT OF THE REMUNERATION EMPLOYEE FIVE-YEAR SUMMARY FINANCIAL OTHER
BY THE CEO HCA OF MANAGEMENT GOVERNANCE SUPERVISORY BOARD REPORT PARTICIPATION & INVESTOR RELATIONS STATEMENTS INFORMATION

OTHER INFORMATION

From the matters communicated with the Supervisory Board, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless either law or regulation precludes public disclosure about the matter or, in extremely rare circumstances, not communicating the matter is in the public interest.

Holland Colours NV

REPORT OF THE SUPERVISORY BOARD

CONTENTS FINANCIAL

CORPORATE GOVERNANCE

OUR ORGANIZATION

ABOUT HCA

INTRODUCTION BY THE CEO

REPORT OF THE BOARD OF MANAGEMENT

FIVE-YEAR SUMMARY & INVESTOR RELATIONS

STATEMENTS

OTHER INFORMATION

EMPLOYEE PARTICIPATION

REMUNERATION REPORT

REMUNERATION REPORT

EMPLOYEE PARTICIPATION OTHER INFORMATION

CONTACT

HOLLAND COLOURS NV

Halvemaanweg 1 7323 RW Apeldoorn P.O. Box 720 7300 AS Apeldoorn The Netherlands T (31) 55-368 0700

E [email protected] Chamber of Commerce 08036180

HOLLAND COLOURS EUROPE BV

  • Halvemaanweg 1 7323 RW Apeldoorn P.O. Box 720 7300 AS Apeldoorn The Netherlands
  • T (31) 55-368 0700
  • E [email protected]

HOLLAND COLOURS UK LTD

Unit 16/17/18, Sabre Court Valentine Close, Gillingham Business Park Gillingham, Kent ME8 0RW United Kingdom

HOLLAND COLOURS HUNGARIA KFT

  • Déri Miksa körút 2 P.O. Box 8 5000 Szolnok Hungary
  • T (36) 56-420 644
  • E [email protected]

HOLLAND COLOURS AMERICAS INC

1501 Progress Drive Richmond, Indiana, 47374 USA T (1) 765-935 0329 Toll-free (1) 800-723-0329 E [email protected]

HOLLAND COLOURS CANADA INC

200 Consumers Rd, Suite 303 Toronto, Ontario M2J 4R4 Canada T (1) 416-449 4344 Toll-free (1) 800-361 3967 E [email protected]

HOLLAND COLOURS MEXICANA SA DE CV

Tezosomoc #4 (Bodega 3) Col. Recursos Hidráulicos Tultitlán, Edo de México México CP 54913 T 52 (55) 58-94-36-41 E [email protected]

PT HOLLAND COLOURS ASIA

  • Jl. Berbek Industri II/2 (Surabaya Industrial Estate Rungkut) Sidoarjo 61256-East Java Indonesia
  • T (62) 31-849 3939
  • E [email protected]

Export department Surabaya:

Jl. Industri III/88 Blok A1-3 Kompl. Industri Facto, Jatake Tangerang 15136-West Java Indonesia

T (62) 21-590 5135

PT HOLCO INDO JAYA

  • Jl. Berbek Industri IV No 1 (Surabaya Industrial Estate Rungkut) Sidoarjo 61256-East Java Indonesia
  • T (62) 31-849 3939
  • E [email protected]

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