Halfjaarbericht 2025 Hydratec ENG DEF

21 August 2025

* Normalisation relates to project costs in preparation for the closure of the Helvoet site in Hellevoetsluis (first half of 2025: €0.5 million, first half of 2024: €0.9 million), acquisition costs (first half of 2025: €0.1 million) and Hydratec delisting process costs (first half of 2024: €0.9 million).

Bart Aangenendt, Co-CEO of Hydratec Industries: "Revenue fell at both segments in the first half of the year, but we still achieved a good result. Industrial Systems' order book showed a limited decrease due to the uncertainties in the market. At Hightech Components, too, there are uncertainties around import tariffs, among other things. Eqraft, in which we acquired a 60% stake at the end of 2024, made a sound contribution to our net result. Thanks to our strong market position, we saw our relative margins rise, as the need for food, health and mobility remains consistently high."

Revenue at Industrial Systems fell to €74.0 million, down 5.3% on the first half of last year. This revenue drop in the first half of this year is mostly explained by last year's fulfilment of major orders from the US. The gross margin as a percentage increased compared to 2024. As a result, the absolute margin was also up, despite the revenue drop.

Our strong market positions allowed us to pass on the rising costs for new projects in particular. Operating costs were only modestly higher than last year, despite the limited increase in salary costs. This led to an operating result of €11.6 million (15.7% of revenue) over the first half of the year, compared to €11.1 million (14.2%) last year.

The project-based nature of the activities can lead to significant fluctuations in revenue and results. The uncertainty over various import tariffs, currency exchange rate fluctuations and increased geopolitical tensions have worsened the investment climate. The order book showed a limited decrease and investment decisions are taking longer.

Over the course of last year, certain structural efficiency measures were implemented to increase profitability in due course. It was decided to have fewer locations with higher revenue per location, and certain activities have been ceased. Furthermore, the reduction of additional customer inventory levels has now almost been

completed. Together, this led to a 9.1% drop in revenue at Hightech Components compared to the same period last year. Revenue totalled €54.2 million over the first six months, compared to €59.6 million in 2024. The gross margin expressed as a percentage of revenue was higher than in the first half of 2024. Despite inflation, operating costs showed a marked decline, mainly on the back of the efficiency measures that were taken. Due to the lower revenue, the operating result corrected for non-recurring effects was lower than last year. The operating result came in at €2.7 million (5.1% of revenue). The uncertainty over various import tariffs and increased geopolitical tensions have worsened the investment climate, making new projects more uncertain.

Hydratec Industries got the year off to a good start and has a well-filled order book. In view of macroeconomic developments, such as volatile exchange rates, trade restrictions, supply chain uncertainties and rising geopolitical tensions, we are unable to make any concrete statements about 2025.

This half-year report is also available on the website https://www.hydratec.nl. The figures in the half-year report have not been audited.

Co-CEO

Hydratec Industries NV is listed on the Euronext Amsterdam stock exchange (ISIN NL0009391242, ticker: HYDRA.) Mr Bart Aangenendt

CEO Hydratec Industries NV Phone: +31 33 469 73 25

Email: info@hydratec.nl Website: https://www.hydratec.nl

Profile

1997

Listed since 1997

s Companies

1,263

Colleagues

1. Segments

   Industrial systems Hightech components

   
   
   
   
   
   

   Lan Handling Technologies

   Royal Pas Reform Rollepaal Integrated Pipe Extrusion HatChery Solutions Technology

   Eqraft

   Em bracing

   the future

   Helvoet

   High Precision

   Components

   Timmerije Hightech Components

2. Markets

Food

Health Mobility

Global operations

Milestones Net revenue (x €1 m)

2024

300

2020

+ Rollepaal

2010

+ Timmerije

+ Euro Mouldings

2018

+ Polmer and Partner (Poland)

+ NatureForm (USA)

2011 2015

+ Pas Reform + Helvoet and Abar

+ Lan - Euro Mouldings

2009

Renamed Hydratec

2014

- Danielson

1997

Listing

as Nyloplast

2000

- Nyloplast (USA)

2005

2008

+ Danielson - Nyloplast

250

200

150

100

50

0

‌1 January to 30 June

* Net result divided by the number of shares outstanding as at 30 June of the reporting year.

** Net result divided by the number of shares outstanding, including all conditionally awarded shares.

‌1 January to 30 June

‌Before profit appropriation

‌1 January to 30 June

x €1,000

Dividend distribution

Share issue

Unappropriated result

Change in exchange rates

Movements in hedge reserve

Other changes

Attributable to Hydratec shareholders

Attributable to third parties

2025

shareholders'

equity

Attributable to Hydratec shareholders

Attributable to third parties

2024

shareholders'

equity

‌1 January to 30 June

1. ‌General

   The half-year financial statements were prepared by the Management Board, discussed with the Supervisory Board and released for publication on 21 August 2025. The external auditor was not engaged to, and did not, conduct an audit or review with respect to this half-year report.

2. ‌Accounting policies for the half-year financial statements

   The half-year financial statements for the period from 1 January to 30 June 2025 have been prepared in accordance with IAS 34 Interim Financial Reporting and the information and notes contained in these are more condensed than that required for annual financial statements. The half-year financial statements have been prepared in accordance with the same accounting policies as those specified in the 2024 consolidated financial statements.

   Where necessary, comparable figures were adjusted for comparison purposes.

3. ‌Seasonal influences

   The Group's revenue and results are not structurally influenced by seasonal effects of sales, although project

   revenue may fluctuate at Industrial Systems, due to its dependence on progress made.

4. ‌Segment reporting

   The table below shows the breakdown of a number of key figures between Industrial Systems and Hightech

   Components for the period from 1 January to 30 June of the year in question.

   x €1,000

   Industrial Systems

   Hightech

   Components Total segments

   Holding company expenses and

   items eliminated Total

   2025	2024		2025	2024		2025	2024		2025	2024		2025	2024
   74,041	78,212		53,472	59,283		127,513	137,495					127,513	137,495
   			691	322		691	322		-691	-322
   74,041	78,212		54,163	59,605		128,204	137,817		-691	-322		127,513	137,495
   11,645	11,092		2,742	2,604		14,387	13,696		-1,405	-2,026		12,982	11,670
   1,710	1,817		3,146	3,427		4,856	5,244		49	38		4,905	5,282
   362	978		1,187	2,758		1,549	3,736					1,549	3,736

   Net revenue from third parties

   Intersegment revenue

   Total segment revenue

   Operating result

   Depreciation/

   amortisation

   Investments in tangible/

   intangible

   fixed assets

5. ‌Breakdown of revenue by type

   The table below shows the breakdown of revenue by type for the period from 1 January to 30 June in the year in

   question.

   x €1,000		2025	%		2024	%
   Supply of goods		77,002	60.4		93,137	67.7
   Projects		49,994	39.2		43,320	31.5
   Other revenue		517	0.4		1,038	0.8
   Total		127,513	100.0		137,495	100.0

6. ‌Result from participating interests

   The result from participating interests came from the 60% stake in the income and expenses of Proqraft Holding

   B.V., which was acquired in late 2024. The result was measured based on Hydratec Industries' accounting policies.

   x €1,000	Participating interests
   Carrying amount as at 1 January 2025	13,307
   Acquisition of participating interest
   Share of result from participating interest	1,009
   Capital contributions
   Dividend received
   Disposals
   Carrying amount as at 30 June 2025	14,316

7. ‌Fair value of financial instruments

   Lias Industries B.V. has a call option to acquire 10% of the shares in Proqraft Holding B.V. as of December 2027. This option has been recognised as a financial instrument under other financial fixed assets. Furthermore, the minority shareholders have a put option to sell their stake in Proqraft Holding B.V. as of December 2027. This option has been recognised under other financial instruments.

   These options have been recognised at fair value as determined under the 'Profitability-Weighted Expected Return' method. This method qualifies as a Level 3 fair value method (determination of the value based on non-listed data and assumptions).

   The other financial instruments mainly consist of interest rate swaps (IRS) concluded to lower the risk of interest rate fluctuations on corporate finance. This finance is provided at a variable interest rate and fixed by means of the interest rate swap. In addition, derivatives such as forward exchange contracts (Forwards) and foreign exchange swaps (FX Swaps) are used to hedge the risk of projects paid in foreign currencies. All these derivatives are designated as 'cash flow hedge' and are measured initially at the fair value on the contract date and, on subsequent reporting dates, at the fair value applicable on those dates.

   The effective portion of movements is recognised directly in shareholders' equity in a separate shareholders' equity component: the hedge reserve. Any ineffective portion is recognised in the statement of profit or loss. Hydratec only designates the spot component of forward exchange contracts as hedging instruments.

8. ‌Dividend distribution

   In April 2025, it was decided to pay a dividend of €7.8 million to Hydratec shareholders on 28 May 2025. This

   payment related to the final dividend for 2024.

9. ‌Share issue

   In 2025, 1,536 ordinary shares were issued with a nominal value of €0.45 per share at an issue price of €167.46 per share. The aim of this share issue was to issue shares for the participation plan for the Management Board and management of Hydratec and its operating companies. This issue resulted in an increase in share capital of €1,000 and an addition to the share premium reserve of €257,000. The other change in equity is accounted for in accordance with IFRS 2.

10. ‌Capital investment commitments

    The Group entered into material capital investment commitments on 30 June 2025. These commitments totalled

    €0.6 million (2024: €1.7 million).

11. ‌Bank guarantees issued

    As at 30 June 2025, the Group had issued bank guarantees to customers for the delivery of plant and equipment to

    the value of €8.5 million (2024: €3.1 million).

12. ‌Related party transactions

    Transactions with related parties take place on an arm's length basis.

13. ‌Events after the balance sheet date

    No events took place after the balance-sheet date which lead to material changes.

14. ‌Involvement of the auditor

The external auditor was not engaged to, and did not, conduct an audit or review with respect to this half-year report.

The Management Board of the company hereby declares that, as far as it is aware:

• significant events that occurred in the first six months of the corresponding financial year and of their effect on the half-year financial statements;

• the most significant transactions undertaken with related parties in this period;

• the main risks and uncertainties for the other six months of the corresponding financial year.

Amersfoort, 21 August 2025 Management Board

Mr B. F. Aangenendt, Co-CEO

Ms E. H. Slijkhuis RA, Co-CEO & CFO