PRESS RELEASE

HOLLAND COLOURS HALF YEAR RESULTS 2022/2023

Revenues at EUR 62.9 million against EUR 54.7 million previous year, an increase of 15%, of which 8% was due to a favorable translation from USD to EUR;
Operating result amounts to EUR 5.3 million versus EUR 7.9 million previous year;
Net result of EUR 4.1 million versus EUR 6.1 million prior year resulting in net earnings per share of EUR 4.75 versus EUR 6.99 prior year.

The EMEIA division saw a fractional decrease of revenue. Due to customer inventory destocking and lower market demand in markets Building & Construction and Coatings, Sealants & Adhesives, volumes were down. This effect was largely compensated by sales price increases. Revenue growth in Asia in functional currency was mainly the result of increased sales prices. The revenue of division Americas in functional currency increased due to higher volumes in Q1 and higher sales prices.

The direct contribution margin for the Group was EUR 26.8 million, an increase of EUR 0.8 million compared to the same period last year. The margin as a percentage of revenue ended at 43%, versus 48% in the previous year. The drop is largely explained by an increased difficulty to pass on continued and sharply rising raw material prices, timely and in full to our end markets. The net revaluation of inventories (EUR 0.5 million) favorably impacted the margin with 1% point.

Operating expenses were EUR 21.5 million, up by EUR 3.4 million (19%) from the previous year, primarily due to higher labor-, energy-, consulting-, travel costs and unfavorable exchange rate differences. The increase is to a large extent related to the Groups' ongoing program of process optimizations and IT upgrades.

The operating result was EUR 5.3 million, versus EUR 7.9 million for the previous year. The net result was EUR 4.1 million (EUR 4.75 per share) versus EUR 6.1 million in the previous year (EUR 6.99 per share).

Net cash flow was negative at EUR 4.9 million versus a negative cashflow of EUR 1.9 million last year. The negative net cash flow was a result of unfavorable development in the cash flow from operating activities and from financing activities. These were partially compensated by translation differences in Cash and Cash Equivalents.

The lower cash flow from operating activities is mainly explained by an increase in working capital. The higher working capital is a result of higher inventory because of higher raw material prices and higher stock positions to avoid supply disruptions. The lower cash flow from financing activities is caused by expenditures in fixed assets, such as new machines.

OUTLOOK 2022/2023

The situation in Ukraine and the current global economic climate contribute to a high level of uncertainty related to market developments. In line with previous years, Holland Colours refrains from making forward-looking statements.

Apeldoorn, October 21st, 2022

Board of Management

Coen Vinke Eelco van Hamersveld Geert Rutgers

Key Figures

	April 1, 2022/	April 1, 2021/
	September 30, 2022	September 30, 2021
RESULTS (in millions of euros) Revenue Revenue growth versus comparable period Operating result Net result	62.9 15.0 5.3 4.1	54.7 12.7 7,9 6,0
CASH FLOW (in millions of euros) Net cash flow Investments Depreciations	(4.9) 2.7 (1,5)	(1,9) 1.4 1,4
BALANCE SHEET (in millions of euros) Trade working capital1 Invested capital Shareholders equity (excl. Minority interest) Balance-sheet total	25.7 49.6 60.4 78.9	23.1 38,5 50.0 70,2
RATIOS Return on Sales (ROS) (%) Solvency2 (%) Return on invested capitals (ROI) (%) Working capital (%)	8,4 76,5 22,2 21,6	14.4 74.4 36,5 22.4
FIGURES PER SHARE (In euros) Total net result Growth of earnings per share (%) Equity (excl. Minoritory interest) Closing price	4.8 (32.0) 70,2 123.0	6.99 34.4 58.12 153.50
OTHER DATA Number of outstanding shares Average number of employees (fte's)	860.351 464	860.351 431

Condensed interim consolidated Income Statement

	April 1, 2022/		April 1, 2021/
In thousands of EUR		September 30, 2022 September 30, 2021

Revenue		62.921		54.709
Cost of Materials		(36.113)		(28.698)
Direct Contribution Margin		26.808		26.011
Personnel Expenses	(12.112)		(10.772)
Amortization and Impairments	(43)		(44)
Depreciation and Impairments	(1 454)		(1.398)
Other Operating Expenses	(7.895)		(5.923)
Total Operating Expenses		(21.504)		(18.136)
Operating Result		5.304		7.875
Finance Income	68		50
Finance Expense	(106)		(86)
Finance Income and Expense		(38)		(36)
Result before Income Tax		5.266		7.839
Income Tax		(1.176)		(1.789)
Net Result		4.090		6.050
Attributable to:
· Shareholders of the Company		4.090		6.016
Non-controlling interest				34
		4.090		6.050
Earnings per share in euros
Average number of shares issued		860.351		860.351
Earnings per Share from Continued Operations		4.75		6.99
Earnings per Share from Total Net Result		4.75		6 99

Condensed interim consolidated Statement of Comprehensive Income

	April 1, 2022/	April 1, 2021/
In thousands of euros	September 30, 2022	September 30, 2021
Net Result	4.090	6.050
ltems that will not be reclassified to the Income Statement Actuarial result on Employee Benefits, after Tax
Other comprehensive income that could in future be classified to the income statement Foreign Currency Translation Differences	4.044	306
Other Comprehensive Income and Expenses	4.044	306
Total Comprehensive Income after Expenses	8.135	6.356
Attributable: Shareholders of the Company Non-controlling Interest	8.135	6.322 34
	8 135	6 356

Condensed interim consolidated Balance Sheet

	April 1, 2022/	April 1, 2021/
In thousands of EUR	September 30, 2022	September 30, 2021

Non-Current Assets
Intangible Assets	25	112
Property, Plant and Equipment	23.336	19.765
Right-of-Use Assets	970	1.481
Deferred Tax Assets	1.526	456
Long-Term Receivables		60
	25.857	21.874
Current Assets
Inventory	21.677	16.411
Trade and Other Receivables	18.335	18.555
Income Tax Receivables	1.001	363
Cash and Cash Equivalents	12.029	13.004
	53.042	48.332
Total Assets	78.899	70.206

Equity
Share Capital	1.953	1.953
Share Premium Reserve	1.219	1.219
Other Reserves	4.027	(1.327)
Retained Earnings	53.181	50.003
Equity Attributable to Shareholders of the Company	60.380	51.848
Non-Controlling Interest		375
Total Equity	60.380	52.223
Non-Current Liabilities
Long-Term Debt
Lease Liabilities	457	917
Employee Benefit Obligations	1.138	1.029
Deferred Tax Liabilities	272	33
	1.867	1.979
Current Liabilities
Lease Liabilities	406	483
Trade and Other Liabilities	14.348	14.443
Income Tax Liabilities	1.810	995
Employee Benefit Obligations	88	84
	16.652	16.005
Total Equity and Liabilities	78.899	70.206

Condensed interim consolidated Statement of Changes in Equity

In thousands of EUR	Equity attributable to Shareholders of the Company
	Share Capital	Premium Reserve	Currency Reserve	Legal Reserves	Retained Earnings	Total	Controlling Interest	Total Equity

As at March 31, 2021	1.953	1.219	(1.399)	(234)	48.719	50.258	341	50.599
Net result 1st half year 2021/2022					6.016	6.016	34	6.050
Other Comprehensive Income			306			306		306
Total Comprehensive Income	1.953	1.219	(1.093)	(234)	54.735	56.580	375	56.955
Transfer of Reserve for Intangible Assets
Dividends paid					(4.732)	(4.732)		(4.732)
As at September 30, 2021	1.953	1.219	(1.093)	(234)	50.003	51.848	375	52.223
Net result 2st half year 2021/2022					4.163	4.163	30	4.193
Other Comprehensive Income			1.237		82	1.319	15	1.334
Total Comprehensive Income			1.237		4.245	5.482	45	5.527
Transfer of Reserve for Intangible Assets				72	(72)
Dividends paid
As at March 31, 2022	1.953	1.219	145	(162)	54.176	57.330	420	57.750
Net Result for the 1st half year 2022/2023					4.090	4.090		4.090
Other Comprehensive Income			4 044			4.044		4.044
Buy out of minority shareholder							(420)	(420)
Total Comprehensive Income			4.044		4.090	8.135	(420)	7.715
Transfer of Reserve for Intanqible Assets
Dividends paid					(5.085)	(5.085)		(5.085)
As at September 30, 2022	1.953	1.219	4.189	(162)	53.181	60.380		60.380

Condensed interim consolidated Statement of Cash Flows

	April 1, 2022	April 1, 2021/
In thousands of euros	September 30, 2022	September 30, 2021
Operating Result Adjustments for:	5,304	7,875
Amortisation of Intangible Assets and Impairments	43	র ব
Depreciation of Property, Plant and Equipment and Impairments	1,207	1,398
Depreciation of Right-of-Use Assets	247
IFRS 16: reversal of lease costs	(266)
Changes in Provisions	(51)	(70)
Exchange-rate Differences	(439)	(353)
Cash Flow from Operating Activities before Changes in Working Capital,
Tax and Interest	6,045	8,894
Changes in Working Capital	(2,684)	(3,882)
Income Tax Paid	(1,759)	(689)
Interest Received		0
Interest Paid	(6)	(11)
Cash Flow from Operating Activities	1,596	4,312
Capital Expenditures in Intangible Assets	(2,666)	(1,445)
Disposal of Property, Plant and Equipment
Capital Expenditures in Property, Plant and Equipment
Cash Flow from Investment Activities	(2,666)	(1,445)

Dividends Paid	(5.085)	(4,732)
Cash Flow from Financing Activities	(5,085)	(4,732)
Exchange-rate and Translation Differences on Cash and Cash Equivalents	1.225	(1)
Net Cash Flow	(4,930)	(1,873)
Cash and Cash Equivalents as at April 1	16.959	14.877
Cash and Cash Equivalents as at September 30	12.029	13.004
Net Cash Flow	(4,930)	(1,873)

Segment Information for the first half year of 2022/2023

				Adjustments

Segments (first half year of 2022/2023)	EMEIA	Americas	Asia	Other liminations		Total
Revenue	29.217	25.239	8.465			62.921
Inter segmental transactions	771	14			(785)
Revenue Including Intersegmental Transactions	29.988	25.253	8.465			63.706
Depreciation, Amortisation and Impairments	(813)	(498)	(219)	(95)	127	(1.497)
Operating Result	818	2629	1.107	4.145	(3.395)	5.304
Financial Income		6	8	53		68
Financial Expense	(65)	(5)	(7)	(29)		(106)
Tax					(1.176)	(1.176)
Net Result					4.090	4.090
Non-current Assets	12.926	7.080	3.326	65.553	(63.028)	25.857
Current Assets	25.271	23.246	11.255	4.193	(10.923)	53.042
Liabilities	17.269	6.425	2.381	9.457	(17.012)	18.520
Total Investments	2 265	229	158	14	(0)	2666
Average Number of Employees (in FTE)	204	102	137	22		464

Segment Information for the first half year of 2021/2022

					and
Segments (first half year of 2021/2022)	EMEIA	Americas	Asia	Other liminations		Total
Revenue	29 534	18.401	6.774			54.709
Inter segmental transactions	590	29			(619)
Revenue Including Intersegemental Transactions	30.124	18.430	6.774		(619)	54.709
Depreciation, Amortisation and Impairments	(626)	(350)	(170)	(125)	(170)	(1.442)
Operating Result	3.673	2 029	984	1.189		7.875
Financial Income	2	বা	9	35		50
Financial Expense	(37)		(4)	(25)	(20)	(86)
lax					(1.789)	(1.789)
Net Result					6.050	6.050
Assets	37 311	22 901	12 525	59 559	(62.089)	70.207
Liabilities	18.319	4.457	2603	7.397	(14.792)	17.984
Total Investments	953	271	163	58		1.445
Average Number of Employees (in FTE)	204	98	111	18		431

NOTES

Basis of preparation

The interim financial information regarding the period ending September 30, 2022 has been prepared in accordance with the principles for consolidation and financial reporting, as described in the annual report of Holland Colours NV for the fiscal year 2021/2022 and do not include all the information and disclosures required for the annual financial statements. Accordingly, they should be read in conjunction with the financial statements for the year ended March 31, 2022, which have been prepared in accordance with IFRS EU.

Audit

The interim financial information is not audited.

COMPANY PROFILE

Holland Colours develops and manufactures groundbreaking solid and liquid color concentrates, masterbatches, and additive concentrates for rigid and flexible PVC for the building and construction industry, and for the production of PET and polyolefin-based packaging. We also produce color concentrates for use in coatings, sealants & adhesives and other applications.

As a company, we set out to deliver customer peace of mind through superior product performance, world-leading product stewardship, and outstanding technical service. Our experts co-design color and functional solutions with our customers, develop solutions to support recycling, and actively contribute to creating a more sustainable industry overall.

Holland Colours is a Dutch company, founded in 1979 and listed on the Euronext Amsterdam Stock Exchange. With committed employee shareholders and production locations in the Americas, Europe, and Asia, we serve customers in every continent. To find out more, visit us at hollandcolours.com.

KEY DATES (indicative)

June 1, 2023 Publication of 2022/2023 financial statements July 13, 2022 Annual General Meeting of Shareholders

AI Terminal

Holland Colours NV

3850_iss_2022-10-21_06dd9fab-efc3-4cd3-a763-7577946b8364.pdf