ANNUAL R EPORT
2022/2023
HOLLAND COLOURS ANNUAL REPORT 2022/2023
3
WE ARE
HOLLAND COLOURS
''At Holland Colours, every employee is
a co-owner, and owners know that the
rst step to success begins with adding
value for our customers.''
CONTENTS
Introduction by the CEO 5
About Holland Colours 6
Report of the Board of Management 14
Environmental, Social and Governance (ESG) 38
Corporate Governance 49
Report of the Supervisory Board 55
Remuneration Report 62
Employee Participation 66
Five-Year Summary 68
Investor Relations 69
Financial Statements 72
Other Information 113
Independent Auditor’s Report 114
Contact 127
HOLLAND COLOURS
4
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
DEAR SHAREHOLDERS, EMPLOYEES, CLIENTS AND BUSINESS PARTNERS,
INTRODUCTION BY THE CEO
Coen Vinke
CEO
HOLLAND COLOURS
55
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
ABOUT
HOLLAND
COLOURS
44
YEARS
400
EMPLOYEES
SINCE
1979
NETWORK OF
100
GLOBAL SUPPLIER
2
BILLION KG
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.
OUR PROFILE
HOLLAND COLOURS ANNUAL REPORT 2022/2023
6
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
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 description ‘pioneers.’
Today, we are one global team of over 400 colleagues with dierent
experiences and from various backgrounds. But we all share the same core
values, passion for color, commitment to our customers and pride in our
company.
OUR HERITAGE
Holland
Colours
NV
Apeldoorn,
the Netherlands
Surabaya,
Indonesia
Shanghai,
China
Richmond, Indiana
United States
Szolnok,
Hungary
Toronto,
Canada
Tultitlán,
Mexico
Gillingham,
United Kingdom
Jakarta
Sales
Production/Sales
Representative Oce
HOLLAND COLOURS ANNUAL REPORT 2022/2023
7
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
HOLCOBATCH
®
HOLCOLEX
HOLCOPRILL
HOLCOSIL
HOLCOPEARL
®
HOLCOMER
OUR PRODUCTS
8
8
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
TINTMASK
TASTEGUARD
FASTHEAT
SORT
HOLCOBATCH®
CLASSIC
MARKIT
NATURAL
COLLECTION
HOLCOMER
THERMOSTRETCH
OUR SOLUTIONS
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 building and
construction industry.
Adding color to plastic and coatings creates emotion, aects behavior,
aids identication and supports safety, depending on the purpose and
application. Together with our customers, we co-design sustainable
colorants and additives that are ecient, eective and esthetic.
A part of our products is based on a bio-based carrier technology.
9
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
Building and construction
Packaging
Coatings & sealants
OUR MARKETS
OUR MISSION
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
10
ESG GOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
SUPERVISORY BOARD REPORT REMUNERATION REPORT EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTSABOUT
OUR CORE VALUES: PROVIDING
A FRAMEWORK FOR SUCCESS
Our ve core values underpin everything we do as a company. They are part of
our DNA and determine how we behave and what we are like as people and as an
organization. The values 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 nd additional ways to dierentiate
themselves.
Pro-activeness
Responsibility
Competence
Teamwork
Accountability
1111
SUPERVISORY BOARD REPORTESG REMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
ABOUT FIVE-YEAR SUMMARY & INVESTOR RELATIONSEMPLOYEE PARTICIPATION FINANCIAL STATEMENTS
OUR DIFFERENTIATORS
HOLLAND COLOURS
12
FIVE-YEAR SUMMARY & INVESTOR RELATIONSEMPLOYEE PARTICIPATIONREMUNERATION REPORT FINANCIAL STATEMENTSSUPERVISORY BOARD REPORTGOVERNANCEESGMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
ABOUT
Plenty of companies oer their employees shares in the business. Typically,
it’s seen as an employee benet: a chance to share in the prots. We don’t
just do that at Holland Colours. We go further. Here’s what that means to us.
EMPLOYEE PARTICIPATION DRIVES OUR SUCCESS
A CULTURE BASED ON CONNECTION, COLLABORATION
AND SUSTAINABILITY
EMPLOYEE PARTICIPATION
HOLLAND COLOURS ANNUAL REPORT 2022/2023
13
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
REPORT OF
THE BOARD OF
MANAGEMENT
HOLLAND COLOURS ANNUAL REPORT 2022/2023
14
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
BOARD OF MANAGEMENT
CFO ad interim
Joined Holland Colours NV
CTO
Joined Holland Colours NV
Appointment to position
(second term)
CEO
Joined Holland Colours NV
Appointment to position
(second term)
HOLLAND COLOURS ANNUAL REPORT 2022/2023
15
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
A CHALLENGING YEAR
CHALLENGES
Growing Together 2023
OPPORTUNITIES
OPPORTUNITIES
INTRODUCTION
HOLLAND COLOURS ANNUAL REPORT 2022/2023
16
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
HOLCOPEARL –
DARK COLOR SIDING
HOLCOPEARL –
SOLIDS FOR COATINGS
Product innovations
17
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
UPDATE
GROWING TOGETHER 2023
Growing Together 2023
DELIVERING GROWTH
Strategy
2023
Our strategic goals:
•
•
•
Our overall objectives:
•
•
•
•
•
•
HOLLAND COLOURS ANNUAL REPORT 2022/2023
18
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
DELIVERING EXCELLENCE
Innovation excellence
Growing Together 2023,
Commercial excellence
Operational excellence
People excellence
HOLLAND COLOURS ANNUAL REPORT 2022/2023
19
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
FINANCIAL KEY FIGURES
2021/20222022/2023
0.8%
111.4
110.5
2021/20222022/2023
–46.3%
7.3
13.6
2022/2023
2021/2022
2022/2023
2021/2022
2022/2023
2021/2022
2022/2023
2021/2022
2022/2023
2021/2022
2022/2023
2021/2022
6.6% 15.8%
€6.82 7.0%
20% 79.7%
12.3% 34.2%
€11.83 7.9%
24% 72.5%
2021/20222022/2023
–42.2%
5.9
10.2
HOLLAND COLOURS ANNUAL REPORT 2022/2023
20
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
FINANCIAL PERFORMANCE
2022/2023 2021/2022 Change
EMEIA
HOLLAND COLOURS ANNUAL REPORT 2022/2023
21
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
MANAGEMENT BOARD REPORT
AMERICAS
ASIA
INVESTMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
22
EMEIA in EUR millions Americas in USD millions Asia in USD millions
2022/2023 2021/2022 2022/2023 2021/2022 2022/2023 2021/2022
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
CASH FLOW
FINANCIAL REPORTING PROCESS
RECRUITMENT
DIVERSITY
COMPLIANCE
HOLLAND COLOURS ANNUAL REPORT 2022/2023
23
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
MANAGEMENT BOARD REPORT
MARKET OPPORTUNITIES
INNOVATION PROGRAM
PRODUCT STEWARDSHIP
PRODUCT INNOVATION
HOLLAND COLOURS ANNUAL REPORT 2022/2023
24
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
ENVIRONMENTAL, SOCIAL
INNOVATION INDEX
HOLLAND COLOURS ANNUAL REPORT 2022/2023
25
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
HOLLAND COLOURS RISK AREAS
Risk Severity Risk Likelihood Risk Level
****
****
***
***
***
**
**
**
*
*
*
RISK
HOLLAND COLOURS ANNUAL REPORT 2022/2023
26
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Strategic
** ** ** **
** *** *** **
**** ** *** **
Compliance
**** ** *** **
**** ** *** **
•
** *** *** **
•
** *** *** **
•
** *** *** *
•
** *** *** **
Financial
* * * *
*** ** *** *
We dierentiate between gross and net risk levels. Net risks are
the risks that remain once mitigation steps have been taken.
HOLLAND COLOURS ANNUAL REPORT 2022/2023
27
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Operational
**** *** **** ***
**** *** **** **
**** *** **** *
** *** *** ***
** * ** *
Political
**** ** *** ***
Sustainability
** *** *** *
** *** *** **
HOLLAND COLOURS ANNUAL REPORT 2022/2023
28
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
** ** ** **
** *** *** **
**** ** *** **
SIZE OF OUR CURRENT STRATEGIC SEGMENTS PLUS COMPETITIVE RIVALRY
HOLLAND COLOURS ANNUAL REPORT 2022/2023
29
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
CYBERSECURITY
BUSINESS AGILITY
30
SUPERVISORY BOARD REPORTESG GOVERNANCEABOUT
INTRODUCTION BY THE CEO
FIVE-YEAR SUMMARY & INVESTOR RELATIONSEMPLOYEE PARTICIPATIONREMUNERATION REPORT FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
**** ** *** **
**** ** *** **
•
** *** *** **
•
** *** *** **
•
** *** *** *
•
** *** *** **
LAWS AND REGULATIONS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
31
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
ETHICS
FRAUD
Product pricing
Authorization matrix
Gifts from/to relations
Agency commissions
HOLLAND COLOURS ANNUAL REPORT 2022/2023
32
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
* * * *
*** ** *** *
LIQUIDITY
OTHER FINANCIAL (CURRENCY, INTEREST RATES, CAPITAL STRUCTURE)
HOLLAND COLOURS ANNUAL REPORT 2022/2023
33
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
**** *** **** ***
**** *** **** **
**** *** **** *
** *** *** ***
** * ** *
SAFETY
SUPPLY
INTELLECTUAL PROPERTY
HUMAN RESOURCES
QUALITY
HOLLAND COLOURS ANNUAL REPORT 2022/2023
34
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
**** ** *** ***
GLOBAL ECONOMY AND POLITICS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
35
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
** *** *** *
** *** *** **
PROCESS AND PRODUCT
HOLLAND COLOURS ANNUAL REPORT 2022/2023
36
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
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:
•
•
•
•
•
Board of Management
OUTLOOK DECLARATION OF THE
BOARD OF MANAGEMENT
HOLLAND COLOURS ANNUAL REPORT 2022/2023
37
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
SOCIAL AND
GOVERNANCE
HOLLAND COLOURS ANNUAL REPORT 2022/2023
38
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
2021:
Dened our ambition
•
•
In 2021, we began integrating Environmental, Social and Governance (ESG)
criteria into our wider company strategy. ESG is the follow-on to CSR, or
Corporate Social Responsibility commitment, and the term is being
adopted by more and more European companies, in line with evolving
EU regulations. As such, although the terminology is new, many of the
ideas it covers are already familiar and central to Holland Colours.
ESG ROADMAP 2021-2025
2022:
Transition GRI reporting to
CSRD rules
•
•
•
•
2025:
Future-proof
•
•
2023-2024:
Integrate ESG into our strategy,
decision-making and reporting
•
•
•
•
•
HOLLAND COLOURS ANNUAL REPORT 2022/2023
39
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
•
•
•
•
THE SAFETY CULTURE LADDER
SAFETY PERFORMANCE IN 2022/2023
Safety 2022/2023 2021/2022
HOLLAND COLOURS ANNUAL REPORT 2022/2023
40
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
1
The company’s attitude is that it doesn’t have
accidents so doesn’t need to invest in safety.
2
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.
3
The company pays attention to health and safety
and has clear safety rules, but safety is seen mostly
as a senior management task.
5
Safety is a standard part of contractors’ operational
processes as well, and safety is ingrained in the
thinking and behavior of all employees.
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.
SAFETY CULTURE LADDER
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 incidents
but near misses as well. Near misses are things we see or experience that are or
could be dangerous, but which thankfully have not led to an accident. Therefore,
the more near misses we report, the fewer incidents and accidents there will be as
it means we can act to prevent them.
HOLLAND COLOURS ANNUAL REPORT 2022/2023
41
FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTSMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
SUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEESG FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTS
AN ALWAYS-IMPORTANT ELEMENT THAT IS MORE RELEVANT THAN EVER
FOCUS AREAS AND THE LINK BETWEEN OUR SDG GOALS AND ESG
HOLLAND COLOURS ANNUAL REPORT 2022/2023
42
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
FOCUS AREAS
Based on the selected SDGs, we dened three focus areas:
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.
By 2030, we will have reduced
the CO
2
impact of our operational
activities by between
30% and 50%.
We will structurally increase our
annual investment in innovation.
By 2030, 90% of our revenue will
be based on products that
contribute to sustainability.
We protect the safety,
health and welfare
of HCA employees and
oer development
opportunities to all. Given
our geographical spread,
we consider it important
to employ nationally.
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.
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 ENVISION A
COLORFUL WORLD
IN WHICH WEARE
THE WINNING
SUSTAINABLE
SOLUTION
HOLLAND COLOURS ANNUAL REPORT 2022/2023
43
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
A NEW BASELINE AND ACTION PLAN
OUR PEOPLE
Better Together Dialogues
Other personal development opportunities
1.
2.
3.
HOLLAND COLOURS ANNUAL REPORT 2022/2023
44
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
HOLLAND COLOURS ANNUAL REPORT 2022/2023
45
SUPERVISORY BOARD REPORTESG GOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FIVE-YEAR SUMMARY & INVESTOR RELATIONSEMPLOYEE PARTICIPATIONREMUNERATION REPORT FINANCIAL STATEMENTSESG
OUR PROCESSES
• Scope 1
emissions
• Scope 2
emissions
• Scope 3
emissions
HOLLAND COLOURS ANNUAL REPORT 2022/2023
46
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
ESG
2021/2022
2021/2022
21/22 21/22 21/22
2021/2022
2022/2023 2022/2023
22/23
22/23 22/23
CO
CO
CO
2022/2023
2021/2022
2022/2023
2021/2022
30 4111
23
36 5216
23
760
8,067
1,408
4,809
1,851
674
8,794
1,829
5,317
1,649
490
+ =
25
20
Employees Management*
HOLLAND COLOURS ANNUAL REPORT 2022/2023
47
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
By reporting on all three scopes, we can better understand and manage our carbon
footprint. We are implementing strategies to reduce emissions across all scopes. These
include investing in renewable energy sources and working with our suppliers to improve
their sustainability practices. We are also engaging with our employees to promote
sustainable behaviors and oering training to help them reduce their carbon footprint
both at work and at home.
Our objective mentioned on page 43 is being reviewed due to a denition change and the
ongoing strategic review. Our commitment to reducing our carbon footprint and managing
our emissions is an ongoing eort, and we will continue to monitor and report on our
progress in our annual reports.
Employing the newly adopted analysis in place of the earlier methodology that was used
in 2021/2022, we can improve our understanding and so management of our carbon
footprint. We will use the new analytical approach going forward. Under the new
methodology, the emission per kg of product increases from 674g CO
2
equiv/kg to 760g
CO
2
equiv/kg. The principle reason for this increase is the return of business travel following
COVID-19, waste and the lower production volumes we saw in 2022/2023. The overall
CO
2
-equivalent impact of the organization fell by approximately 10%.
OUR PRODUCTS
Sustainability is moving from a nice-to-have extra to a key driver for innovation in our
industry. The whole materials market is facing a fundamental shift from fossil fuels to
sustainable alternatives, and from use-once consumerism to reuse and full circularity.
Logistics, economies of scale, the location and availability of raw materials and the
unpredictability of geopolitics are also factors in this trend. This shift forms part of our
current strategic review.
In 2022/2023, we continued to build our understanding of where we stand and to develop
a more detailed insight into where our client needs lie. We continued to reach out to our
suppliers to learn more about how they develop their products and to explain, where
necessary, the importance of including the sustainability impact of their products on what
we make and innovate. We also began analyzing the sustainability performance of our
product portfolio. For this we dened a sustainable product as being one that meets one
of the following three criteria while not performing signicantly worse in the other criteria.
At Holland Colours, a sustainable product:
•
either has a lower CO
2
/kg equivalent impact than the main solution in a specific
subsegment (cradle to gate); or
•
it enables our customer to have a lower CO
2
/kg equivalent impact in their production
vs. the main alternative solution; or
•
it supports the increased recycling of materials.
The analysis of the rst series of products led to the conclusion that some 20% of our
product portfolio can be dened as 100% sustainable.
Product analyzed on sustainability
● Analyzed
● Not analyzed
100%
sustainable
HOLLAND COLOURS ANNUAL REPORT 2022/2023
48
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
CORPORATE GOVERNANCE
Holland Colours is a limited liability company with common shares publicly
listed on the Euronext Amsterdam stock exchange.
ANNUAL GENERAL MEETING OF SHAREHOLDERS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
49
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
•
•
•
•
•
•
•
•
•
DIVERSITY POLICY
Tone at the top
Safe environment
HOLLAND COLOURS ANNUAL REPORT 2022/2023
50
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
Terms of employment
Recruitment
Developments in 2022/2023
COMMITTEES
Audit Committee
Remuneration Committee
ANTI-TAKEOVER PROVISIONS AND CONTROL
BILATERAL CONTACTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
51
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
CODE OF CONDUCT
BOARD OF MANAGEMENT
SUPERVISORY BOARD MEMBERS
INTERNAL AUDIT FUNCTION
HOLLAND COLOURS ANNUAL REPORT 2022/2023
52
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
COMPANY SECRETARY
CONFLICTS OF INTEREST
SHAREHOLDER POWERS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
53
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
In Holland Colours NV In Holland Pigments BV
March 31, 2023
Supervisory Board
Board of Management
March 31, 2022
Supervisory Board
Board of Management
HOLLAND COLOURS ANNUAL REPORT 2022/2023
54
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
REPORT OF THE
SUPERVISORY
BOARD
HOLLAND COLOURS ANNUAL REPORT 2022/2023
55
FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
SUPERVISORY BOARD
Chairman
Date of initial appointment
Term of oce
•
Member
Date of initial appointment
Term of oce
•
Member
Date of initial appointment
Term of oce
•
Deputy Chairman
Date of initial appointment
Term of oce
•
•
•
•
HOLLAND COLOURS ANNUAL REPORT 2022/2023
56
FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT
The global events of the past 12 months were felt in every region in which
Holland Colours is active. While the world was still recovering from the
COVID-19 pandemic, Russia’s invasion of Ukraine triggered new and
unexpected threats to global economics and politics. As well as its awful
humanitarian impact, the war created serious uncertainties for business,
including Holland Colours. We saw large uctuations in customer demand
and rapid and repeated increases in the price of raw materials.
COMPOSITION OF THE SUPERVISORY BOARD
COMPOSITION OF THE BOARD OF MANAGEMENT
BOARD MEETINGS AND CONTACTS
DEVELOPMENTS AND STRATEGY
HOLLAND COLOURS ANNUAL REPORT 2022/2023
57
FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT
Continuing investment
Risk Matrix
Code of Conduct and compliance
Russia/Ukraine
Focus on sustainability
Acting as one company
HOLLAND COLOURS ANNUAL REPORT 2022/2023
58
FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT
RISK MANAGEMENT
PERFORMANCE EVALUATION
ALLOCATION OF DUTIES
AUDIT COMMITTEE
HOLLAND COLOURS ANNUAL REPORT 2022/2023
59
FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT
REMUNERATION COMMITTEE
DIVERSITY POLICY
ANNUAL REPORT AND DIVIDEND PROPOSAL
HOLLAND COLOURS ANNUAL REPORT 2022/2023
60
FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
SUPERVISORY BOARD REPORT
ACKNOWLEDGEMENTS
Supervisory Board
HOLLAND COLOURS ANNUAL REPORT 2022/2023
61
FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT
REMUNERATION REPORT
REMUNERATION FRAMEWORK
•
•
•
HOLLAND COLOURS ANNUAL REPORT 2022/2023
62
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSREMUNERATION REPORT
SHORT- AND LONG-TERM INCENTIVE PLANS
STI AND LTI TARGET-SETTING PROCESS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
63
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE REMUNERATION REPORTSUPERVISORY BOARD REPORT
PROFIT-SHARING PLAN
SCENARIO ANALYSES
INDIVIDUAL REMUNERATION OF THE BOARD OF MANAGEMENT
Board of Management
Fixed
remuneration
Variable
remuneration
Total
remuneration
Base
salary
Pension
plan
Proportion of variable
remuneration (in %)
CEO
CTO
Total 548 53 87 688 13
HOLLAND COLOURS ANNUAL REPORT 2022/2023
64
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
REMUNERATION REPORT
INDIVIDUAL REMUNERATION OF THE SUPERVISORY BOARD OVER THE LAST
5 YEARS
Annual change 2022/23
21/22
> 22/23
20/21
> 21/22
19/20
> 20/21
18/19
> 19/20
Total 141 25 – – –
CHANGES IN THE REMUNERATION PER MEMBER OF THE BOARD OF
MANAGEMENT AND COMPANY PERFORMANCE
Annual change Fixed and variable
2022/23
21/22
> 22/23
20/21
> 21/22
19/20
> 20/21
18/19
> 19/20
Board of Management
remuneration
Company performance
Average remuneration on a
full-time equivalent basis of
employees
REMUNERATION OF THE SUPERVISORY BOARD
HOLLAND COLOURS ANNUAL REPORT 2022/2023
65
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSREMUNERATION REPORTSUPERVISORY BOARD REPORT
Employee Participation is central to the way we manage our company and
is the foundation of our success. You can read more about the culture it
supports in our Prole story on page 13. Here we explain how co-ownership
works.
Every permanent employee of Holland Colours owns shares (at least one) in Holland
Pigments BV,
The goal of Holland Pigments and the four majority shareholders is to promote the
stability, continuity and independence of Holland Colours, including eective
employee participation within the Holland Colours Group
Holland Pigments holds the majority (50.52%) of the shares in Holland Colours.
Holland Pigments is managed by a one-tier board
The non-executive board member for employee-shareholders and the executive
director of Holland Pigments are jointly responsible for managing the employee-
shareholder model properly.
EMPLOYEE PARTICIPATION IN PRACTICE
HOLLAND COLOURS ANNUAL REPORT 2022/2023
66
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG REMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSEMPLOYEE PARTICIPATION
HOLLAND COLOURS ANNUAL REPORT 2022/2023
67
ABOUT
INTRODUCTION BY THE CEO
INTRODUCTION BY THE CEO
ABOUT ESG FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORT FINANCIAL STATEMENTS
SUMMARY
IN MILLIONS OF EUROS, UNLESS STATED OTHERWISE
2022/23 2021/22 2020/21 2019/20 2018/19
Income statement
Statement of nancial position
2022/23 2021/22 2020/21 2019/20 2018/19
Statement of cash ows
Revenue per division
EMEIA
Ratios
HOLLAND COLOURS ANNUAL REPORT 2022/2023
68
ESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONS
SUPERVISORY BOARD REPORT
INVESTOR RELATIONS
Total 860,351
Disclosures % Date
HOLLAND COLOURS ANNUAL REPORT 2022/2023
69
SUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSFIVE-YEAR SUMMARY & INVESTOR RELATIONS
90
40
140
190
240
04 05 06 07 08 09 10 11 12 01 02 03
2022 2023
SHARE PRICES – HOLLAND COLOURS VERSUS ASCX
60
40
20
0
80
100
120
140
160
180
04 05 06 07 08 09 10 11 12 01 02 03
Holland Colours NV
ASCX Index
2022 2023
2022/2023 2021/2022 2020/2021 2019/2020 2018/2019
SHARE PRICES – HOLLAND COLOURS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
70
ESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSFIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT
HOLLAND COLOURS ANNUAL REPORT 2022/2023
71
SUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSFIVE-YEAR SUMMARY & INVESTOR RELATIONS
FINANCIAL
STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
72
Consolidated Income Statement 74
Consolidated Statement of Comprehensive Income 75
Consolidated Balance Sheet 76
Consolidated Statement of Changes in Equity 77
Consolidated Cash Flow Statement 78
Notes to the Consolidated Financial Statements 79
1. General Information 79
2. Going concern 79
3. Summary of Accounting Principles 79
4. Financial Risk Management 87
5. Cash Flow Statement 88
6. Segment Information 88
7. Revenue 90
8. Personnel Expenses 90
9. Other Operating Expenses 90
10. Finance Income and Expense 91
11. Income Tax 91
12. Intangible Assets 92
13. Property, Plant and Equipment 93
14. Right-of-Use Assets 94
15. Deferred Income Tax Assets and Liabilities 94
16. Inventory 95
17. Trade and Other Receivables 96
18. Cash and Cash Equivalents 97
19. Share Capital 97
20. Other Reserves 97
21. Earnings per Share 97
22. Non-Controlling Interest 98
23. Credit Facility 98
24. Lease Liabilities 98
25. Employee Benefit Obligations 99
26. Trade and Other Liabilities 100
Other Disclosures 101
27. Contingent Assets and Liabilities 101
28. Related Parties 101
29. Other Disclosures 103
Company Income Statement 104
Company Balance Sheet 105
Notes to the Company Financial Statements 106
30. General Information 106
31. Summary of Accounting Principles 106
32. Subsidiaries 106
33. Personnel Expenses 106
34. Income Tax 106
35. Intangible Assets 107
36. Property, Plant and Equipment 108
37. Right-of-Use Assets 109
38. Financial Non-Current Assets 109
39. Equity 110
40. Credit Facility 110
41. Lease Liabilities 110
42. Employee Benefit Obligations 111
43. Audit Fees 111
44. Other Disclosures 112
Other Information 113
Statutory Provisions regarding the Appropriation of Profits 113
Independent Auditor’s Report 114
CONTENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
73
In thousands of euros Note April 1, 2022/March 31, 2023 April 1, 2021/March 31, 2022
Revenue 7 111,438 110,465
Cost of Materials (62,938 ) (58,827 )
Direct Contribution Margin 48,500 51,638
Personnel Expenses 8 (23,374 ) (22,370 )
Amortization and Impairments 12 (64 ) (87 )
Depreciation and Impairments 13/14 (3,189 ) (3,325 )
Other Operating Expenses 9 (14,580 ) (12,226 )
Total Operating Expenses (41,207 ) (38,008 )
Operating Result 7,293 13,630
Finance Income 10 229 94
Finance Expense 10 (308 ) (180 )
Finance Income and Expense (79 ) (86 )
Result Before Income Tax 7,214 13,544
Income Tax 11 (1,345 ) (3,301 )
Net Result 5,869 10,243
Attributable to:
•
Shareholders of the Company 5,869 10,179
•
Non-Controlling Interest 22 – 64
Earnings per Share in euros
Average Number of Shares Issued 21 860,351 860,351
Earnings per Share from Total Net Result 6.82 11.83
CONSOLIDATED
INCOME STATEMENT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
74
Notes 1 to 29 are an integral part of these consolidated financial statements.
In thousands of euros Note April 1, 2022/March 31, 2023 April 1, 2021/March 31, 2022
Net Result 5,869 10,243
Items that will not be reclassified to the Income Statement
Actuarial Results on Employee Benefits, after Tax 25 27 82
Other Comprehensive Income that could in future
be classified to the Income Statement
Foreign Currency Translation Differences 20 715 1,558
Other Comprehensive Income 742 1,640
Total Comprehensive Income 6,611 11,883
Attributable to:
•
Shareholders of the Company 6,611 11,804
•
Non-Controlling Interest – 79
CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
75
Notes 1 to 29 are an integral part of these consolidated financial statements.
CONSOLIDATED
In thousands of euros Note
March 31,
2023
March 31,
2022
Non-Current Assets
Intangible Assets 12 5 69
Property, Plant and Equipment 13 22,327 20,817
Right-of-Use Assets 14 974 1,247
Deferred Tax Assets 15 1,047 1,415
Long-Term Receivables – –
Current Assets
Inventory 16 15,565 20,598
Trade and Other Receivables 17 16,588 18,145
Income Tax Receivables 1,492 366
Cash and Cash Equivalents 18 15,757 16,959
Total Assets 73,755 79,616
In thousands of euros Note
March 31,
2023
March 31,
2022
Equity
Share Capital 19 1,953 1,953
Share Premium Reserve 1,219 1,219
Other Reserves 20 506 (18 )
Retained Earnings 55,135 54,176
Equity Attributable to Shareholders of the Company 21 58,813 57,330
Non-Controlling Interest 22 – 420
Total Equity 58,813 57,750
Non-Current Liabilities
Lease Liabilities 24 441 744
Employee Benefit Obligations 25 854 1,105
Deferred Tax Liabilities 15 106 273
Current Liabilities
Lease Liabilities 24 439 535
Trade and Other Liabilities 26 12,786 17,392
Income Tax Liabilities 124 1,729
Employee Benefit Obligations 25 192 88
Total Equity and Liabilities 73,755 79,616
BALANCE SHEET
AS OF MARCH 31, 2023
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
76
Notes 1 to 29 are an integral part of these consolidated financial statements.
In thousands of euros Equity attributable to Shareholders of the Company
Share
Capital
Share
Premium
Reserve
Foreign
Currency
Translation
Reserve
Legal
Reserve for
Intangible
Assets
Retained
Earnings Total
Non-
Controlling
Interest
Total
Equity
As at March 31, 2021 1,953 1,219 (1,752 ) 119 48,719 50,258 341 50,599
Net Result for the Financial Year – – – – 10,179 10,179 64 10,243
Other Comprehensive Income – – 1,543 – 82 1,625 15 1,640
Total Comprehensive Income – – 1,543 – 10,261 11,804 79 11,883
Transfer of Reserve for Intangible Assets – – – 72 (72 ) – – –
Dividends Paid – – – – (4,732 ) (4,732 ) – (4,732 )
As at March 31, 2022 1,953 1,219 (209 ) 191 54,176 57,330 420 57,750
Net Result for the Financial Year – – – – 5,869 5,869 – 5,869
Other Comprehensive Income – – 715 – 27 742 – 742
Total Comprehensive Income – – 715 – 5,896 6,611 – 6,611
Transfer of Reserve for Intangible Assets – – – (191 ) 191 – – –
Buyout of minority shareholder* – – – – – – (420 ) (420 )
Dividends Paid – – – – (5,128 ) (5,128 ) – (5,128 )
As at March 31, 2023 1,953 1,219 506 – 55,135 58,813 – 58,813
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
77
Notes 1 to 29 are an integral part of these consolidated financial statements.
* Per April 1, 2022, Gaypa Srl has sold its shares (12.1%) in PT Holco Indo Jaya to Holland Colours NV. This item reflects the changes in the non-controlling interest and controlling interest.
In thousands of euros Note
April 1,
2022/
March 31,
2023
April 1,
2021/
March 31,
2022
Capital Expenditures in Intangible Assets 12 – –
Capital Expenditures in Financial Fixed Assets (420 ) –
Disposal of Property, Plant and Equipment 13 3 26
Capital Expenditures in Property, Plant
andEquipment 13 (3,879 ) (3,346 )
Cash Flow from Investment Activities (4,296 ) (3,320 )
Dividends Paid (5,128 ) (4,732 )
Lease Liabilities Payments (597 ) –
Cash Flow from Financing Activities (5,725 ) (4,732 )
Exchange Rate and Translation Differences
on Cash and Cash Equivalents 303 362
Net Cash Flow (1,202 ) 321
Cash and Cash Equivalents as at April 1 16,959 16,638
Cash and Cash Equivalents as at March 31 15,757 16,959
Net Cash Flow 18 (1,202 ) 321
In thousands of euros Note
April 1,
2022/
March 31,
2023
April 1,
2021/
March 31,
2022
Operating Result 7,293 13,630
Adjustments for:
•
Amortisation of Intangible Assets and
Impairments 12 64 87
•
Depreciation of Property, Plant and Equipment
and Impairments 13 2,574 2,314
•
Depreciation of Right-of-Use Assets 14 616 1,008
•
IFRS 16: reversal of lease costs – (921 )
•
Changes in Provisions 25 (147 ) (17 )
•
Exchange-rate Differences (41 ) 253
Cash Flow generated from Operating Activities before
changes in Working Capital, Tax and Interest 10,359 16,354
Changes in Working Capital 2,153 (5,715 )
Income Tax Paid (3,918 ) (2,594 )
Interest Received 229 94
Interest Paid (307 ) (128 )
Cash Flow generated from Operating Activities 8,516 8,011
CONSOLIDATED
CASH FLOW STATEMENT
FOR THE FINANCIAL YEAR ENDED MARCH 31, 2023
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
78
Notes 1 to 29 are an integral part of these consolidated financial statements.
IN THOUSANDS OF EUROS, UNLESS STATED OTHERWISE
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
79
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
80
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
81
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
82
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
83
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
84
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
85
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
86
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
87
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
88
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
89
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
90
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
91
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
92
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
93
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
94
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
95
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
96
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
97
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
98
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
99
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
100
IN THOUSANDS OF EUROS, UNLESS STATED OTHERWISE
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
101
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
102
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
103
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
104
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
105
IN THOUSANDS OF EUROS, UNLESS STATED OTHERWISE
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
106
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
107
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
108
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
109
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
110
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
111
NOTES TO THE COMPANY FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
112
Statutory Provisions regarding the Appropriation
of Profits
REGARDING THE APPROPRIATION OF PROFITS, THE ARTICLES OF ASSOCIATION
STATE THE FOLLOWING:
Article 21
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.
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.
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. 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. Claims for profit distribution expire after a period of five years from
the date on which the dividends were made payable.
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.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
113113
Independent Auditor’s Report
To: the general meeting and the supervisory board of
Holland Colours N.V.
REPORT ON THE FINANCIAL STATEMENTS
2022/2023
Our opinion
In our opinion:
•
theconsolidatednancialstatementsofHolland
Colours N.V. together with its subsidiaries (‘the Group’)
giveatrueandfairviewofthenancialpositionofthe
Group as at 31 March 2023 and of its result and cash
owsfortheyearthenendedinaccordancewith
International Financial Reporting Standards as adopted
by the European Union (‘EU-IFRS’) and with Part 9 of
Book 2 of the Dutch Civil Code;
•
thecompanynancialstatementsofHollandColours
N.V. (‘the Company’) give a true and fair view of the
nancialpositionoftheCompanyasat31March2023
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
2022/2023 of Holland Colours N.V., Apeldoorn. The
financial statements comprise the consolidated financial
statements of the Group and the company financial
statements.
Theconsolidatednancialstatementscomprise:
•
the consolidated balance sheet as at 31 March 2023;
•
thefollowingstatementsfornancialyearended31
March 2023: the consolidated income statement, the
consolidated statements of comprehensive income, the
consolidated statement of changes in equity, the
consolidatedcashowstatement;and
•
thenotes,comprisingasummaryofthesignicant
accounting policies and other explanatory information.
The company financial statements comprise:
•
the company balance sheet as at 31 March 2023;
•
thecompanyincomestatementforthenancialyear
ended 31 March 2023; and
•
the notes, comprising a summary of 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
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.
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 N.V. 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
We designed our audit procedures with respect to the key
audit matters, fraud and going concern, and the matters
resulting from that, in the context of our audit of the
financial statements as a whole and in forming our opinion
thereon. The information in support of our opinion, such
as our findings and observations related to individual key
audit matters, the audit approach fraud risk and the audit
approach going concern was addressed in this context,
and we do not provide a separate opinion or conclusion
on these matters.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
114
Overview and context
Holland Colours N.V. manufactures, distributes and sells
solid and liquid colours and additive concentrates. The
Group is comprised of several components and therefore
we considered our group audit scope and approach as set
out in the section ‘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 these considerations,
we paid attention to, amongst others, the assumptions
underlying the physical and transition risk related to
climate change.
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.
Holland Colours N.V. assessed the possible effects of
climate change on its financial position, refer to the annual
report section ‘Environmental, Social and Governance’
(pages 38-48). We discussed Holland Colours N.V.’s
assessment and governance thereof with the board of
management and evaluated the potential impact on the
financial position including underlying assumptions and
estimates.
We ensured that the audit teams at both group and
component level included the appropriate skills and
competences which 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 our
component teams.
The outline of our audit approach was as follows:
Materiality
Audit scope
Key audit
matters
Materiality
•
Overall materiality: €1,100,000
Audit scope
•
TheGroupconsistsoffoursignicantcomponents:HollandColoursN.V.,HollandColours
Europe B.V., Holland Colours Americas Inc., and PT Holland Colours Asia in Indonesia, and six
othernon-signicantcomponents.
•
AttheheadoceinApeldoorn,theNetherlands,thePwCgroupengagementteamaudited
Holland Colours N.V. and Holland Colours Europe B.V. and instructed the component auditors
inIndonesiaandtheUSAtoperformanauditonthecompletesetofnancialinformation.
•
The PwC group engagement team instructed the component auditor in Hungary to perform
speciedauditproceduresforgrouppurposes.Thisconsistedofattendinginventorycountsin
Hungary.
•
Audit coverage: 88% of consolidated revenue, 94% of consolidated total assets and 83% of
consolidatedprotbeforetax.
Key audit matters
•
Revenue recognition
•
Assumptions in the valuation of inventory
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
115
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 on our opinion.
OTHER INFORMATION
Overall group materiality €1,100,000 (2021/2022: €1,000,000).
Basis for determining
materiality
We used our professional judgement to determine overall materiality. As a basis for our
judgement, we used 1% of revenue rounded to €1,100,000.
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 consideration of revenue. The Group 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 Group.
Component materiality Based on our judgement, we allocate materiality to each component in our audit scope
that is less than our overall group materiality. The range of materiality allocated across
components was between €500,000 and €1,090,000.
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 misstatement identified during our
audit above €54,500 (2021/2022: €50,000) as well as
misstatements below that amount that, in our view,
warranted reporting for qualitative reasons.
The scope of our Group audit
Holland Colours N.V. 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 N.V.
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
operations of its components, the accounting processes
and controls, and the markets in which the components of
the Group operate.
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
116
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.
Our audit primarily focussed on the significant
components of the Group: Holland Colours N.V. (company
only), Holland Colours Europe B.V., 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 88%
Total assets 94%
Profit before tax 83%
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 N.V. and Holland
Colours Europe B.V. 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 B.V. 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 held 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 consolidation, financial statement preparation
(including disclosures) and a number of more complex
items. These included lease accounting and the going
concern analysis. The Group engagement team held
virtual meetings with the component audit teams. For
these virtual meetings sufficient time was taken and we
remotely reviewed selected working papers of the
respective component auditors and sufficient involvement
was achieved. The Group engagement team performed
the audit for the entities Holland Colours N.V. and Holland
Colours Europe B.V. on site and held regular meetings
with Group management.
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.
Audit approach fraud risks
We identified and assessed the risks of material
misstatements of the financial statements due to fraud.
During our audit we obtained an understanding of the
Group and its environment and the components of the
internal control system. This included management’s risk
assessment process, management’s process for
responding to the risks of fraud and monitoring the
internal control system, and how the supervisory board
exercised oversight.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
117
We refer to section ‘Risk Management’ in the report of the
board of management for management’s fraud risk
assessment and section ‘Audit Committee’ of the
supervisory board report in which the supervisory board
reflects on this fraud risk assessment.
We evaluated the design and relevant aspects of the
internal control system and in particular the fraud risk
assessment, as well as the code of conduct, whistle-blower
procedures and incident registration.
We evaluated the design and the implementation of
internal controls designed to mitigate fraud risks and
noted further enhancement and formalisation of controls
and procedures in the financial year to a more mature
level appropriate for the international footprint and size of
the Group. We reported our observations to the board of
management and the persons charged with governance.
As part of our process of identifying fraud risks, we
evaluated fraud risk factors with respect to financial
reporting fraud, misappropriation of assets and bribery
and corruption. We evaluated whether these factors
indicate that a risk of material misstatement due to fraud
is present and we have evaluated the remedial actions
that the company has taken with respect to reported
risk-related events in previous year.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
118
We identified the following fraud risks and performed the following specific procedures:
Identified fraud risks Our audit work and observations
Fraud risk 1
Management override of controls
Management is in a unique position to perpetrate fraud because of management’s ability to
manipulate accounting records and prepare fraudulent financial statements by overriding
controls that otherwise appear to be operating effectively.
That is why, in all our audits, we pay attention to the risk of management override of
controls and in this context, we paid attention to:
•
the appropriateness of journal entries and other adjustments made in the preparation
of the financial statements;
•
potential biases in estimates;
•
significant transactions, if any, outside the normal course of business.
We evaluated the design of the internal control measures mitigating the risk of
management override of controls and assessed the internal controls in the processes of
generating journal entries, making significant estimates and booking of revenue. We also
paid specific attention that access safeguards in the IT system supports segregation of
duties. We assessed whether deficiencies in controls may create opportunities for fraud.
We performed journal entry testing procedures based on the following criteria: unexpected
account combinations which increases revenue or decreases costs and unexpected users.
In addition, we tested manual consolidation adjustments. With regard to management’s
accounting estimates, we evaluated key estimates and judgements for bias, including
retrospective reviews of prior year’s estimates. We performed substantive audit procedures
for significant estimates such as valuation of inventory as well as for non-significant
estimates.
We did not identify any significant transactions outside the normal course of business.
Our audit procedures did not lead to specific indications of fraud or suspicions of fraud
with respect to management override of controls.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
119
Identified fraud risks Our audit work and observations
Fraud risk 2
The risk of fraudulent financial reporting due to overstating revenue
Given the listed status of Holland Colours N.V., its objective is to meet certain market and
shareholder expectations, management bonuses and financial targets for management and
based on a presumption that there are risks of fraud in revenue recognition, revenue
recognition was subject to the risk of a material misstatement due to fraud.
Above matters could lead to pressure on management to overstate revenue by recognising
fictitious revenue transactions or by recognising revenue transactions which have not been
realised yet, affecting the assertions existence/occurrence and cut off.
In addition to the audit procedures and observations mentioned at the key audit matter
‘Revenue recognition’ we performed the following procedures on the risk of overstating
revenue by recognising fictitious revenue transactions or by recognising revenue transactions
which have not been realised yet, affecting the assertions existence/occurrence and cut-off:
•
We evaluated the design and implementation of the internal control system in the
processes related to revenue reporting.
•
We evaluated the design and tested the operating effectiveness of the control activities on
the exception report to ensure the accuracy and existence 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 selected journal entries with unexpected account combinations with a credit to
revenue and conducted specific audit procedures for these entries. These procedures
included, amongst others, inspection of the entries to source documentation.
•
We tested the manual journal entry to adjust for appropriate cut-off of revenue
recognition.
•
We performed substantive audit procedures on credit invoices after year end and on
credit invoices during 2022/2023.
•
We tested, on a sample basis, the delivered performance and transaction prices of the
revenue transaction based on invoices, order confirmations, sales agreements, shipping
documents and bank receipts.
•
For our work on the existence/occurrence of revenue transactions we leveraged upon the
related work performed for account receivable, such as the work on subsequent receipts
of accounts receivables.
•
Performed substantive audit procedures over revenue transactions before and after year
end to determine appropriate cut-off.
Our audit procedures did not lead to specific indications of fraud or suspicions of fraud with
respect to the existence/occurrence of the revenue reported.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
120
We incorporated an element of unpredictability in our
audit. During the audit, we remained alert to indications of
fraud. We also considered the outcome of our other audit
procedures and evaluated whether any findings were
indicative of fraud or non-compliance of laws and
regulations. Whenever we identify any indications of fraud,
we re-evaluate our fraud risk assessment and its impact
on our audit procedures.
Audit approach going concern
As disclosed in section ‘Going concern’ on page 79 of the
financial statements, the board of management
performed their assessment of the entity’s ability to
continue as a going concern for at least twelve months
from the date of preparation of the financial statements
and has not identified events or conditions that may cast
significant doubt on the entity’s ability to continue as a
going concern (hereafter: going-concern risks). Our
procedures to evaluate the board of management’s
going-concern assessment included, amongst others:
•
considering whether the board of management’s
going-concern assessment includes all relevant
information of which we are aware as a result of our
audit and inquiring with the board of management
regarding the board of management’s most important
assumptions underlying its going-concern assessment.
•
evaluating the board of management’s current budget
including cash flows for at least twelve months from the
date of preparation of the financial statements taken
into account current developments in the industry and
all relevant information of which we are aware as a
result of our audit;
•
evaluating the Company’s existing on-balance and
off-balance obligations;
•
performing inquiries of the board of management as to
its knowledge of going-concern risks beyond the period
of the board of management’s assessment.
Our procedures did not result in outcomes contrary to the
Board of Management’s assumptions and judgements
used in the application of the going concern assumption.
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 described the key audit matters and
included a summary of the audit procedures we
performed on those matters.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
121
Key audit matter Our audit work and observations
Revenue recognition
The accounting principles for revenue recognition are included in ‘Summary of accounting
principles’ (note 3) in the financial statements.
Revenue is recognised 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. Based on the above
considerations we considered this area to be a key audit matter.
We updated our understanding of the Group’s revenue recognition policies and where
relevant to our audit, we assessed the design and effectiveness of the internal control
measures related to revenue reporting and in the processes for generating and processing
journal entries related to the revenue.
We evaluated the design and tested the operating effectiveness of the control activities on
the exception report to ensure the accuracy and existence 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.
To establish accuracy and existence we tested, on a sample basis, the delivered
performance and transaction prices of the revenue transaction based on invoices, order
confirmations, sales 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 and by the
component teams in Indonesia and the USA.
Our procedures did not indicate material findings.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
122
Key audit matter Our audit work and observations
Assumptions in the valuation of inventory
The board of management’s assumptions are included in note 3 paragraph Inventories and note
16 of the financial statements.
With a value of €15.6 million (31 March 2022: €20.6 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 realisable value, through
recognition of an inventory allowance of €1.2 million (31 March 2022: €1.0 million).
Marking products as (partly) obsolescent is based on an 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.
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 31 March 2023.
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 ageing report together with IT specialists. This
report is used by management to assess the ageing of the inventory.
We challenged the Group’s assumptions related to the valuation per ageing category based
on actual write-offs and the actual developments in inventory ageing.
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.
Our procedures did not indicate material findings with respect to estimates and
judgements in the valuation of inventory.
OTHER INFORMATION
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
123
REPORT ON THE OTHER INFORMATION INCLUDED
IN THE ANNUAL REPORT
The annual report contains other information. This
includes all information in the annual report in addition to
the financial statements and our auditor’s report thereon.
Based on the procedures performed as set out below, we
conclude that the other information:
•
isconsistentwiththenancialstatementsanddoes
not contain material misstatements; and
•
contains all the information regarding the directors’
report and the other information that is required by
Part 9 of Book 2 and regarding the remuneration
report required by 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
directors’ report and the other information in accordance
with Part 9 of Book 2 of the Dutch Civil Code. The board of
management and the supervisory board are responsible
for ensuring that the remuneration report is drawn up
and published in accordance with sections 2:135b and
2:145 subsection 2 of the Dutch Civil Code.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS AND ESEF
Our appointment
We were appointed as auditors of Holland Colours N.V. on
10 July 2014 by the supervisory board. This followed the
passing of a resolution by the shareholders at the annual
general meeting held on 10 July 2014. Our appointment
has been renewed annually by shareholders and now
represents a total period of uninterrupted engagement of
nine years.
European Single Electronic Format (ESEF)
Holland Colours N.V. has prepared the annual report in
ESEF. The requirements for this are set out in the
Delegated Regulation (EU) 2019/815 with regard to
regulatory technical standards on the specification of a
single electronic reporting format (hereinafter: the RTS on
ESEF).
In our opinion, the annual report prepared in XHTML
format, including the (partially) marked-up consolidated
financial statements, as included in the reporting package
by Holland Colours N.V., complies in all material respects
with the RTS on ESEF.
The board of management is responsible for preparing
the annual report, including the financial statements in
accordance with the RTS on ESEF, whereby the board of
management combines the various components into a
single reporting package. Our responsibility is to obtain
reasonable assurance for our opinion whether the annual
report in this reporting package complies with the RTS on
ESEF.
We performed our examination in accordance
with Dutch law, including Dutch Standard 3950N
‘Assuranceopdrachten inzake het voldoen aan
de criteria voor het opstellen van een digitaal
verantwoordingsdocument’ (assurance engagements
relating to compliance with criteria for digital reporting).
Our examination included amongst others:
•
Obtaininganunderstandingoftheentity’snancial
reporting process, including the preparation of the
reporting package.
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
124
•
Identifying and assessing the risks that the annual
report does not comply in all material respects with the
RTS on ESEF and designing and performing further
assurance procedures responsive to those risks to
provide a basis for our opinion, including:
•
obtaining the reporting package and performing
validations to determine whether the reporting
package containing the Inline XBRL instance
documentandtheXBRLextensiontaxonomyles
have been prepared in accordance with the
technicalspecicationsasincludedintheRTSon
ESEF;
•
examining the information related to the
consolidatednancialstatementsinthereporting
package to determine whether all required mark-
ups have been applied and whether these are in
accordance with the RTS on ESEF.
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 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:
•
thepreparationandfairpresentationofthenancial
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
thenancialstatementsthatarefreefrommaterial
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 has no
realistic alternative but to do so. The board of
management should disclose in the financial statements
any event and circumstances that may cast significant
doubt on the Company’s ability to continue as a going
concern.
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 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, 1 June 2023
PricewaterhouseCoopers Accountants N.V.
W.F.J. Vermeulen RA
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
125
Appendix to our auditor’s report on
the financial statements 2022/2023
of Holland Colours N.V.
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 scepticism 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 in order to design audit procedures that
are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness
of the Company’s internal control.
•
Evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by the board of
management.
•
Concluding on 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.
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.
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
law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, not
communicating the matter is in the public interest.
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
126
CONTACT
HOLLAND COLOURS NV
T (31) 55-368 0700
E info@hollandcolours.com
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 info@hollandcolours.com
HOLLAND COLOURS UK LTD
Unit 16/17/18, Sabre Court
Valentine Close, Gillingham
Business Park
Gillingham, Kent ME8 0RW
United Kingdom
T (44) 1634-388 727
E uk@hollandcolours.com
HOLLAND COLOURS
HUNGARIA KFT
Déri Miksa körút 2
P.O. Box 8
5000 Szolnok
Hungary
T (36) 56-420 644
E szolnok@hollandcolours.com
HOLLAND COLOURS
AMERICAS INC
1501 Progress Drive
Richmond, Indiana, 47374
USA
T (1) 765-935 0329
Toll-free (1) 800-723-0329
E richmond@hollandcolours.com
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 canada@hollandcolours.com
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 mexico@hollandcolours.com
PT HOLLAND COLOURS
ASIA - SURABAYA
Jl. Berbek Industri II/2
(Surabaya Industrial Estate Rungkut)
Sidoarjo 61256-East Java
Indonesia
T (62) 31-849 3939
E surabaya@hollandcolours.com
Export department Surabaya:
T (62) 31-841 1 801
E exportasia@hollandcolours.com
PT HOLLAND COLOURS
ASIA – JAKARTA
Kawasan Industri dan Pergudangan
TAMAN TEKNO BSD Blok E3 no. 45
Kecamatan SETU, Tangerang Selatan,
Banten 15314-West Java
Indonesia
T (62) 21-75681088
E jakarta@hollandcolours.com
REPRESENTATIVE OFFICE CHINA
Room 908, Eco City 1788, No. 1788
West Nanjing Road, Jing’an District
Shanghai 20040
China
T (86) 13022112583
(60) 162222684
E shanghai@hollandcolours.com
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSFINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
127
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTCSR EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2022/2023
128
FIND OUT MORE
Contact our sales people about purchasing quantities and deliveries or our technical experts for questions
about our technology and its implementation:
AMERICAS: richmond@hollandcolours.com | +1 765-935 0329 / toll-free: +1 800 723 0329
ASIA: surabaya@hollandcolours.com | +62 31 849 3939
EMEIA: info@hollandcolours.com | +31 (0)55 36 80 700
www.hollandcolours.com