Annual Report 2024 Def Lr

Table of Contents

Foreword4

Company profile6

Key figures7

Highlights8

Activities10

Industrial Systems 11

Lan | Handling Technologies 12

Royal Pas Reform | Integrated Hatchery Solutions 14

Rollepaal | Pipe Extrusion Technology 16

Hightech Components 19

Timmerije | Hightech Plastic Components 20

Helvoet | High Precision Components 22

Objectives and strategy 24

Objectives and strategy 25

Risk management 29

Developments 2024 34

Product and market development 35

Financial developments 38

Corporate governance 43

Shareholders' information 44

Personal details 45

Corporate governance 47

Remuneration 49

In control statement 53

Report of the Supervisory Board 54

Sustainability statements 58

Basis for preparing the statements 59

Climate change - E1 70

Resource use and circular economy - E5 75

EU taxonomy 79

Own workforce - S1 87

Business conduct - G1 94

Financial statements 97

Consolidated statement of profit or loss 98 Consolidated statement of comprehensive income 99 Consolidated balance sheet as at 31 December 100 Consolidated statement of changes in equity 101 Consolidated cash flow statement 103

Explanatory notes to the consolidated financial statements 104 2024 company financial statements 145

Notes to the company financial statements 147 Other information 151

Independent auditor's report 152

Assurance report of the independent auditor with a limited level of assurance on 153 the sustainability report

Appendix I: Reference table - ESRS information requirements 154

Appendix II: Reference table - EU legislation 156

Contact details 161

The management report as referred to in Part 9 of Book 2 of the Dutch Civil Code monitors the elements from the foreword to the sustainability statement. This version of the annual financial reporting of Hydratec Industries N.V. for the financial year ending on 31 December 2024 is not presented in the ESEF format as specified in the regulatory technical standards for ESEF (Delegated Regulation (EU) 2019/815). The set of ESEF reports can be downloaded at: https://annualreport.hydratec.nl/downloads/

Foreword

Dear shareholders, customers, employees and partners,

There are various societal developments that are affecting our company, both directly and indirectly. These include wars, armed conflicts and international tensions still continuing on Europe's doorstep. But elections overseas, fluctuating interest rates and inflation also led to uncertainty in the market and, in turn, ongoing cautiousness. In recent years, we have built a stable foundation for our companies, each with their own niche. The quality of the revenue also increased again last year, as shown by the increased margins and added value.

But overall, revenue fell organically by 3% in 2024. We saw cautiousness in the different markets we serve with both Hightech Components and Industrial Systems for various reasons. We had expected this cautiousness to diminish over the year, but this only happened in part.

Despite the economic headwinds, we have been able to improve the results by paying close attention to margins, costs and procurement. As a result, we have strengthened our market positions in both segments. Our multifaceted, decentralised organisation has enabled us to rapidly respond to ever-changing market conditions, in an agile and relevant way. All in all, 2024 was a year when we once again demonstrated that our robust structure is a good match for the different industries where we operate.

Market developments

If we look at the developments in our sub-markets, 2024 was a year of contrasts. The Mobility market, for example, has seen major unrest, including mass redundancies among our customers. There is a decreasing trend in revenue, which shows no sign of abating. This has led to increased competition in this market segment. Only revenue in the Health market remained steady, although we did expect it to do better there. The speed of further growth here is strongly determined by how quickly we can adapt our technical developments to market demands.

The Food market also showed a limited decrease, mainly because of the reluctance to make investment decisions due to market uncertainty. We took a 60% stake as of the year-end in Eqraft, a medium-sized company in Emmeloord that designs, builds and maintains onion and potato sorting and packaging lines for the international market. With this, we have added a promising, fourth line of operations to the Industrial Systems segment.

Sustainable innovation

To stay competitive in the long run, we need to remain at the forefront. That's why we strongly believe in innovative power as an accelerator for further sustainable growth. Innovations that reduce waste provide yet another incentive for a lot of our customers to choose our solutions. We are convinced that Environmental, Social and Governance (ESG) aspects are important and that they are perfectly compatible with our ambitions and objectives as a company. We are continuing to scout for opportunities to sustainably improve our products and production processes across the board, as we are certain that is where we can make the greatest environmental impact, and we are working intensively with knowledge centres, universities and suppliers. We want to be transparent about our sustainable operations and performance. In 2024, we invested a great deal of energy in the implementation of the new EU Corporate Sustainability Reporting Directive (CSRD). We report on this in the sustainability statement of our 2024 annual report.

Committed, dedicated employees

Dedicated employees are the beating heart of Hydratec. We rely heavily on their expertise and employability. That is why it is of the utmost importance to attract the right new talent, but also to keep them on board once they have joined us. The shortage of technicians on the labour market continued in 2024, but did not lead to major problems for Hydratec. However, the workload has been high at times. The diversity of the workforce is important too. We firmly believe that greater diversity improves the quality of decision-making and drives innovation. In 2024, we celebrated International Women's Day and launched further initiatives to make diversity and inclusion even more visible within our company.

Governance

Our stock market listing has done a lot for us, but in recent years, the drawbacks as well as the costs have started to outweigh the benefits. To proceed with the delisting, a public bid by Ten Cate Investeringsmaatschappij was recommended last year. Unfortunately, the shareholders were unable to reach agreement on this. In April, Mr ten Cate resigned from the Supervisory Board. I would also like to thank him once again for the valuable and inspiring role he has played in developing Hydratec into the successful company it is today. I have always appreciated his leadership, tireless commitment and astute, practical advice, not to mention his supportive approach. In November, Ms J. ten Cate and Mr D. Raithel joined Hydratec's Supervisory Board and Mr Raithel was elected chair. Moreover, following a proposal from the Management Board, the Supervisory Board decided to appoint two people to serve jointly as CEO. Besides myself, Everien Slijkhuis was also appointed CEO of Hydratec. This decision has resulted in benefits such as complementary skills and improved continuity. I'm also happy to share my CEO role with Everien, with whom I have enjoyed working together on an equal footing for years. The diversity of our perspectives leads to balanced decision-making.

We would like to take this opportunity to thank all our colleagues for their sterling efforts, flexibility, passion and dedication. We are grateful to our customers, partners, Supervisory Board members and shareholders for their confidence and support as we continue to develop Hydratec Industries.

Bart Aangenendt, Co-CEO

Hydratec Industries

Company profile

Technology company Hydratec Industries N.V. (hereinafter referred to as Hydratec) supplies industrial systems and hightech components to sustainably meet the growing need for food, health and mobility. Hydratec Industries has been listed on Euronext Amsterdam since 1997 and employs some 1,342 people worldwide. All its companies have a principal place of business in the Netherlands, but some of their production plants are outside the Netherlands, including in Belgium, Brazil, India, Poland and the US. About 50% of our staff live and work in the Netherlands.

Global operations

Milestones

Historical summary

Amounts in thousands of euros, unless stated otherwise

Income statement

Net revenue

Operating result

Net result

Net result for shareholders

Cash flow

Cash flow from operating activities

Cash flow from investing activities

Cash flow from financing activities

Net cash flow

Balance sheet

Shareholders' equity attributable to Hydratec shareholders

Shareholders' equity

2024 2023 2022 2021 2020

270,204 282,748 283,261 257,297 217,550

25,254 22,026 21,787 22,027 3,342

18,238 15,797 15,820 15,133 771

18,218 15,693 15,927 15,118 1,301

37,532 4,735 43,459 33,664 22,946 -19,968 -11,285 -8,681 -6,661 -4,576 -19,123 -7,408 -14,577 -26,568 -16,031

104,579 93,817 85,990 76,082 63,079

104,785 94,030 86,089 76,261 63,240

1. Net result and interest expenses as a percentage of capital invested (total assets less cash and cash equivalents, less current, non-interest-bearing debts).
2. Net result as a percentage of the average shareholders' equity attributable to Hydratec shareholders.
3. Shareholders' equity as a percentage of the balance sheet total.
4. Continuing operations.