ANNUAL R EPORT
2024/2025
3
HOLLAND COLOURS ANNUAL REPORT 2024/2025
CO-DESIGNING A
COLORFUL FUTURE
''We will find a better way by working
together. With a focus on personal service,
we co-design innovative solutions for a
sustainable industry. We develop and
supply concentrates of custom colorants
and additives that bring our customers
peace of mind and suit tomorrow’s needs.''
This copy of the 2024/2025 annual report of Holland Colours NV is
not in the European single electronic reporting format (ESEF) as
specified in the RTS on ESEF (Regulation (EU) 2019/815). The ESEF
version of the 2024/2025 annual report is available at the
Company’s website.
CONTENTS
Introduction by the CEO 5
About Holland Colours 6
Our Profile 6
Our Heritage 7
Our Products & Innovation 8
Our Solutions 9
Our Markets & Key Segments 10
Our Core Values 11
Purpose, Mission and Vision 12
Our Differentiators 13
Employee Participation 14
Report of the Board of Management 15
Board of Management 16
Introduction 17
Challenges & Opportunities 17
Strategic Update 19
Financial Key Figures 23
Financial Performance 24
Organization 26
Product Innovation 27
Risk Management 29
Outlook 2024/2025 40
Declaration of the Board of Management 40
Environmental, Social and Governance (ESG) 41
Corporate Governance 58
Report of the Supervisory Board 64
Remuneration Report 72
Employee Participation 78
Five-Year Summary 80
Investor Relations 81
Financial Statements 84
Other Information 127
Independent Auditor’s Report 128
Contact 136
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
55
DEAR SHAREHOLDERS, EMPLOYEES, CUSTOMERS
AND BUSINESS PARTNERS,
Uncertainty about the global economy and world politics
continued to increase in the last financial year. Military
conflicts, geopolitical powershifts and climate change were
joined by a trend towards deglobalization, including, more
recently, global trade tariff disputes. Although inflationary
pressure eased in financial year 2024/2025, elevated
interest rates continued to have a negative impact on
demand, especially in Building & Construction markets in
Europe and North America. Packaging markets continued to
show moderate growth, while the discussion around cost,
sustainability and circularity gained in strategic relevance.
In Asia, the trend of lower growth in China continued to
have an impact on demand in our industry.
In these challenging circumstances, we increased volumes
in line with our growth ambition while maintaining our
value-based pricing policy. Raw material markets were more
stable than in the previous year, except for two important
categories that were confronted with shortages and price
increases. Despite this, our net margin increased. At the
same time, our operating expenses increased in line with
our plans. We also made important investments in our
organization, including hiring new technology experts and
commercial talent. This has improved our capability to
achieve long-term sustainable growth. Overall, revenues
were 8.7% higher versus the previous year and the
operating result was € 7.9 million versus € 7.0 million in
2023/2024. The net result in 2024/2025 was € 5.9 million.
To acknowledge the trust and support of our shareholders,
we propose to pay a final dividend of € 5.9 million (€ 6.85
per share).
Last year, we began to execute our renewed strategy,
Accelerate-to-Win. This delivered initial successes related to
our first strategic objective of ‘Outpacing market growth.’
New product introductions and new customer acquisitions
contributed to this. By year-end, our sales and innovation
pipelines were at the levels planned, which provides a good
perspective for continued growth. In the Asia division, we
conducted an extra round of strategic business planning.
Through this we identified new business opportunities in
which we, as a niche player, can deploy our differentiation
strategy more effectively.
In addition to ‘Outpacing market growth,’ we also made
progress on our second and third strategic objectives.
‘Increase efficiency’ became a program of multiple small
projects that will help to mitigate the effects of continued
inflation. ‘Creating a new position in the circular value chain',
meanwhile, gained visibility and became more concrete with
the start of two new and wholly owned venture businesses
that are totally focused on innovations around renewable
and recyclable materials.
The new organizational structure we implemented in the
previous financial year is functioning well. There is effective
collaboration between the divisions and the central group
functions, which helps the divisions to maintain their focus
on sales and operations. The overall goal is to increase our
commercial power and innovation strength, and to create
a more unified approach in terms of process management
and new IT solutions. We will continue to see the benefits
of this new way of working.
We continued to make progress in Environmental, Social
and Governance (ESG) reporting, while also preparing for
the stricter compliance requirements under the EU’s
Corporate Social Reporting Directive (CSRD). However, the
EU’s recently proposed changes to this legislation (Omnibus
l and ll), means we will consider these developments when
we come to execute our plans. Whatever the outcome of
that discussion, being in or out scope, our company remains
fully committed to our sustainability policies.
Holland Colours is determined to secure our position as an
independent player and create value in the long run. Our
Vision 2035 project, completed last year, supplements our
Accelerate-to-Win strategy by providing various long-term
market scenarios for each of our main three business
segments. These scenarios will serve as a guide when taking
market-based business decisions that require a long-term
perspective.
Thank you to everyone – all our employees
and stakeholders – for the work you did to
keep Holland Colours on course through
what was another challenging year.
You helped to build a new platform for
our continued success going forward.
Coen Vinke, CEO
INTRODUCTION BY THE CEO
ANNUAL REPORT 2024/2025HOLLAND COLOURS ANNUAL REPORT 2024/2025
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
ABOUT
HOLLAND
COLOURS
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, developing innovations that
support recycling and contribute to
a more sustainable industry.
OUR PROFILE
46
YEARS
of customized color and
additive formulation
experience
SINCE
1979
NETWORK OF
100
suppliers,
distributors
and agents
GLOBAL SUPPLIER
of plastic colorants
and additives
2
BILLION KG
of plastic products
colored by
Holland Colours
each year
One global team
of over
400
EMPLOYEES
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
In 1979, 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.’
We are one global team of over 400 colleagues with different 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
1979
1990
2022
1990
1986
1992
1988
1995
HOLLAND
COLOURS
ASIA
HOLLAND
COLOURS
AMERICAS
HOLLAND
COLOURS
EMEIA
Gillingham,
United Kingdom
Jakarta
Sales
Production/Sales
Representative Office
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
HOLCOBATCH
®
Seeing a need for cleaner-
handling pigments in the
plastics industry, we create
our flagship product –
Holcobatch
®
.
HOLCOLEX
Development of a range of
universal, water-based
colorants to meet the coatings
industry’s environmental
challenges.
HOLCOPLAST
Introduction of maximum-
loaded, fully dispersed
plasticizer pigment pastes to
create flexible, permanently
plasticized solid products.
HOLCOPRILL
We invent Holcoprill to
meet the need for a more
concentrated product.
HOLCOSIL
Expanding into the sealants
and adhesives market, we
create and release Holcosil.
HOLCOMER
Anticipating the switch from
carton to PET packaging in the
dairy industry, we launch of a
breakthrough in light barrier
technology.
HOLCOLAC
Release of an optimized
solution for industrial tinting.
HOLCOPEARL
®
Expanding into the HDPE
market for personal care, we
create Holcopearl
®
lines for
both HDPE and PET. In 2022,
we launched Holcopearl
Micro and Holcopearl for
Building & Construction.
SOLIDS FOR COATINGS
We start to offer a range of
solids for coatings: Holcopearl
®
for solvent-based coatings and
Holcoprill for water-based
coatings.
ADDITIVE SOLUTIONS FOR RPET
We launched several new functional
colorants and additives for PET
packaging and recycling like the
Holcoprill LightGuard 400 (UV-
Lightblocker), next-generation
sublimation-stable TintMask,
ViscoBoost and CircStab (see
next page).
OUR PRODUCTS & INNOVATION
1979
2009 2015 2017 2023 2024
1985 2000
8
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
TINTMASK
Next-generation
sublimation-stable
TintMask products
that neutralize
off-color rPET
TASTEGUARD
Protecting the
taste of premium
water
FASTHEAT
Optimal energy
usage
SORT
Enhancing the
recyclability
of your product
HOLCOBATCH®
CLASSIC
Less energy during
processing
MARKIT
Color solutions for
laser marking
NATURAL
COLLECTION
Made from
renewable
resources
VISCOBOOST
Improving the intrinsic
viscosity of rPET
HOLCOPEARL
REWHITE
Additive for circular
white opaque rPET
in dairy applications
CIRCSTAB
Stabilizing and
enhancing rPET
REVIVE COLOURS
Our venture
providing sustainable,
low-CO
2
-footprint
colorants
HOLCOMER
THERMOSTRETCH
Low TiO
2
concept
for better
recyclability
How we contribute to a sustainable industry
OUR SOLUTIONS
Plastics are
essential
Strong, lightweight and moldable,
plastic is used in thousands of
products that add comfort,
convenience and safety to our daily
lives. It helps prevent food waste
thanks to excellent sealing and
enhanced durability, and is widely used
instead of wood by the building and
construction industry.
Adding color to plastics and coatings
creates emotion, affects behavior, aids
identification and supports safety,
depending on the purpose and
application. Together with our
customers, we co-design sustainable
colorants and additives that are
efficient, effective and aesthetic, and
contribute to a more sustainable
industry. A number of our products
are based on a bio-based carrier
technology.
revive
colours
9
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
PACKAGING
Brand-promoting colorants and proven
functional additives for enhancing
performance and meeting PET
recycling goals.
We partner with small, medium and large
customers to produce packaging for
water, carbonated soft drinks, fruit juices,
dairy, beer, wine, detergents,
pharmaceutical and personal care
products. There are various trends at play
in this market. These include recyclability,
thinner-wall bottles, improved food safety
and a growing interest in bio-based
packaging solutions. For companies that
want to produce eye-catching, attractive
packaging as efficiently as possible and
with optimal barrier properties, we can
combine any color with multiple
functionalities, and all in a one-pack
solution. Whether it’s to boost branding,
boost recyclability, cut energy
consumption or prolong shelf-life, we
guide our customers to innovative
solutions for a sustainable industry.
BUILDING &
CONSTRUCTION
Industry-standard and customized
colorants for pipe, siding, profiles,
fence, deck and rail.
We provide a vast choice of color
solutions for the Building & Construction
market, for numerous applications such
as profiles, sheets, siding, cladding, pipes,
tubing, PVC- and PU-coated fabrics and
more. Our solutions cover a wide range of
products and applications for which good
dispersion is a key factor. We offer
unlimited customization, global
consistency in production and reliable
supply chains. We focus on supporting
clients through innovative R&D and
extensive logistical networks to enhance
operational efficiency and product
distinctiveness.
COATINGS & SEALANTS
Optimized coloring solutions for
efficient and flexible production,
from factory to point of sale.
We offer a range of colorant solutions for
the Coatings & Sealants market that
enhance brand differentiation and
operational efficiency. Our solutions
include liquid and solid colorants tailored
to specific applications in architectural
and industrial coatings, as well as
adhesives and sealants. With over 46
years of experience, we also provide
comprehensive technical support and
customized solutions to meet the unique
needs of manufacturers in this sector.
OTHER HIGH-END
APPLICATIONS
Premium custom color solutions
for high-end applications in PVC-
& PU-coated fabrics, and consumer,
automotive and industrial goods.
In addition to our core market solutions,
we also create bespoke solutions for
specific clients in other markets, such as
automotive, consumer and industrial
goods. These colorants enhance product
aesthetics and functionality, providing
durability and visual appeal for high-end
applications. Our commitment to quality
control ensures consistency and
performance in demanding environments.
OUR MARKETS & KEY SEGMENTS
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GOVERNANCEESGMANAGEMENT BOARD REPORT
INTRODUCTION BY THE CEO
SUPERVISORY BOARD REPORT REMUNERATION REPORT EMPLOYEE PARTICIPATION FIVE-YEAR SUMMARY & INVESTOR RELATIONS FINANCIAL STATEMENTSABOUT
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
OUR CORE VALUES: PROVIDING
A FRAMEWORK FOR SUCCESS
Our four core values underpin everything we do as a company. They determine how
we behave and what we are like as people and as an organization. They are the basis
for the winning behaviors that are part of our strategy.
Teamwork
We work, design and develop together
internally, as a unified global organization,
and externally in close collaboration with
our customers. Teamwork is what makes
our work impactful, fun and fulfilling; it
enables us to continuously develop
ourselves and our company. We can build
on each other and rely on everyone’s
strengths and talents.
Passion
We are dedicated to finding the best
possible way to serve our customers.
We believe in what we are doing, and
what we achieve makes us proud.
With our enthusiasm, motivation, skills
and expertise, we get things moving
within our company and for our business
partners. We go the extra mile because
it’s what we love to do.
Courage
We challenge ourselves, each other and
the status quo by stepping outside our
comfort zone, both as individuals and as
Holland Colours. We explore, experiment,
innovate and take risks; if we try
something new, we learn. We make things
happen instead of waiting for them to
happen to us. We not only do what is
asked, we do what is needed.
Responsibility
We take ownership in our work for our
impact on the environment, for our
company, for the people we work with
and for our society. We are conscious of
our impact and make deliberate choices
on sustainability and safety. We
proactively provide guidance and lend our
expertise to our customers as we strive
for a more sustainable industry.
PURPOSE, MISSION AND VISION
Our Purpose – the reason we exist – plus our Mission, our Vision and our
Core Values guide how we work together as a team towards a common
goal, as colleagues and for our clients.
PURPOSE FINDING A BETTER WAY BY WORKING TOGETHER
The primary aim of finding a better way is to benefit our customers and the
environment. Process and outcome are equally important. Both give a positive
feeling. We continuously ask the question: “Is there a better way?” We are not
satisfied with a solution that is good enough. We challenge ourselves to deliver
better solutions in all aspects of the business and operations. We are convinced
that collaboration and teamwork are the basis for success. We collaborate
within our organization and with our business partners.
MISSION CO-DESIGNING INNOVATIVE SOLUTIONS
FOR A SUSTAINABLE INDUSTRY
We focus our efforts and resources on those challenges that contribute to
a sustainable industry (i.e., our core segments and chosen fields of innovation).
We do this through the concept of partnership and generally avoid purely
transactional relationships. Through collaboration with customers, suppliers and
partners, we develop solutions that help the plastics industry to become more
sustainable.
VISION TO BE THE BEST CUSTOM SOLUTION AND SERVICE PROVIDER
By 2030, the majority of our products – 90% – will be considered to be
sustainable
*
. In addition, we bring innovation to the market and act as a
responsible partner to our customers through our service propositions, product
stewardship efforts and support for high international quality, safety and
sustainability standards and regulations. In our chosen segments, most
customers are both service oriented and ‘best fit.’ In other words, they
appreciate partnership based on a qualitatively high level of service, personal
relationships and specialized know how, and they identify with our mission.
*
You can find more information about this objective in the ESG section of this report.
VISION
TO BE THE BEST
CUSTOM SOLUTION
AND SERVICE
PROVIDER
CORE VALUES
Teamwork Courage Passion Responsibility
OUR COMPANY OBJECTIVES
Zero accidents
ESG goals year 2030
Innovation Index 10%
Return on sales 10%
Return on investment 15%
MISSION
CO-DESIGNING
INNOVATIVE
SOLUTIONS FOR
A SUSTAINABLE
INDUSTRY
PURPOSE
FINDING A BETTER
WAY BY WORKING
TOGETHER
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FINANCIAL STATEMENTSABOUT
OUR DIFFERENTIATORS
Outstanding technical service
Our goal is to optimize our customers’
production process. We continuously build our
competence and strengthen our innovation
capabilities.
World-leading stewardship
Our Product Stewardship team proactively
ensures regulatory compliance in our fast-
developing market. We maintain the highest
quality standards.
Superior and innovative products
Our experts co-design color and functional solutions
with our customers, developing innovations that
support recycling and contribute to a more
sustainable industry.
Commitment & partnership
All our employees are co-owners of the
company. This commitment results in a high
level of service. Our strong relationships with
our customers rest on mutual trust, close
teamwork and partnership.
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INTRODUCTION BY THE CEO
ABOUT
Many companies offer their employees shares in
the business. Typically, it’s seen as an employee
benefit: a chance to share in the profits. We don’t
just do that at Holland Colours. We go further.
This is what employee participation means to us.
It’s true that every employee gets their first share in Holland Pigments for free when they
join us
*
. It’s true that we convert any profit-sharing bonus partly into Holland Pigments
shares, and that every employee can buy more shares in Holland Pigments if they want to.
But our goal is also different. Bigger. Because when you receive your first free share in
our business, you also become a co-owner of our business. A co-owner with a voice in
a unique workplace culture based on shared values, togetherness and solidarity with
each other.
EMPLOYEE PARTICIPATION DRIVES OUR SUCCESS
As a company, we absolutely believe that Employee Participation is essential to our
success. This belief goes back to 1979, when our founders decided to set up their own
business. They had experienced what it was like to work for an organization that placed its
employees second, and they didn’t want to repeat that. In building a company that would
be innovative, client-focused and responsible, they believed that every employee should
be a co-owner. They felt it was the right thing to do, a better way to run a business, and
the key to ensuring the independence and continuity of Holland Colours.
Today our employee participation is based on three principles:
1. Everyone participates via employee shareholding for both social and business reasons.
2. Independence and continuity are more important than short-term financial gains.
3. People and our impact on them are central, both inside and outside the company.
These principles are in line with our core values (Teamwork, Responsibility, Passion
and Courage) and shape what it feels like to work at Holland Colours in all kinds of ways.
This includes recognizing and rewarding everyone’s contribution to our success and
building engagement. It includes viewing entrepreneurship as fun and something to be
encouraged. It also includes recognizing that being human in our dealings with each other
builds loyalty and the willingness to go the extra mile.
A CULTURE BASED ON CONNECTION, COLLABORATION AND SUSTAINABILITY
The result is a company with an ownership model that goes back over four decades,
but which is uniquely in tune with today’s world. A world in which people are increasingly
seeking connection, togetherness, responsibility and sustainability in their work. In surveys
and discussions, formal and informal, colleagues tell us they feel proud to work for Holland
Colours, and that doing so gives them a sense of purpose. They love that everyone is
included, that everyone’s ideas are taken seriously and that everyone can say what
they think.
This in turn supports the independence and continuity of the company and enables us to
continue to make the right – balanced – choices for people, for the planet and for profit.
It helps us to be a sustainable organization, to lead the way in driving innovation, to
prioritize our clients’ interests and to meet their needs with innovative sustainable
solutions.
Thanks to Employee Participation, Holland Colours is a great place to do great things.
(You can read more about how Employee Participation works in practice in our story
on page 78.)
EMPLOYEE PARTICIPATION
The togetherness you get when everyone is a co-owner
*
Holland Pigments is the investment company that holds a controlling stake in Holland Colours.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSABOUT
BOARD OF MANAGEMENT
Martijn Klomp
CFO
1987, Dutch
Joined Holland Colours NV
February 1, 2025
Eelco van Hamersveld
CTO
1969, Dutch
Joined Holland Colours NV
December 1, 2017
Appointment to position
(second term)
July 7, 2022
Coen Vinke
CEO
1963, Dutch
Joined Holland Colours NV
May 1, 2018
Appointment to position
(second term)
July 7, 2022
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
CAUTIOUS RECOVERY OF MARKETS AND ON TRACK WITH THE FIRST YEAR
OF THE RENEWED STRATEGY
Despite the slow fall in interest rates, and signs of cautious stock replenishment, many
of our Building & Construction customers reported a continued soft market in 2024.
Market information indicated that Packaging continued to grow at its traditional pace,
with recycling becoming more important. We made progress on our plans and objectives
related to growth, efficiency and the development of a position in a circular value chain.
You can read more about our challenges, opportunities and results over the next few
pages.
CHALLENGES
Although some of our markets recovered slightly, we continued to feel the impact of
widescale uncertainties arising from the global economic and political situation. The
continued slowdown in the Chinese economy had a strong impact on exports in the Asia
region. The recent uncertain situation and possible changes with respect to global trade
tariffs did not have a direct impact on our business in the 2024/2025 financial year.
The amount of work related to the EU’s new CSRD legislation on corporate sustainability
reporting was a real challenge given the size of our organization. While we are committed
to our ESG goals, we are realizing that our objective related to sustainable products, in
particular, is very ambitious. Nonetheless, we are on track. You can read more about this
in the ESG Chapter of this report.
OPPORTUNITIES
Despite the difficult circumstances outlined above, we again demonstrated our ability to
manage the margins between raw material cost and selling price. We made a good start
on the execution of our strategy and realized the first new business gains to come from
the growth initiatives in our strategy. We also hired commercial and technical experts
from the market to further accelerate these initiatives.
Costs were higher than the previous year, but in line with our plans. In line with our
strategy, we continued our business improvement programs, invested in extra resources
and increased some of our expenses with the aim of creating sustainable year-on-year
revenue and margin growth.
CHALLENGES &
OPPORTUNITIES
INTRODUCTION
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FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
On the innovation front, we made positive progress, with market introductions of new
products in all our key segments.
Our capital expenses were less than envisioned in our plans and below our level of
depreciation, whereas our ambition is to increase, over the coming years, our investment
in the maintenance and modernization of our infrastructure and the expansion of our
production capacities. We began formulating concrete plans in Europe and Americas, and
we expect to come to new and substantial capex approvals in 2025 that will support
growth and improve productivity.
CIRCSTAB
Stabilizing and enhancing rPET
REVIVE COLOURS
Our venture providing
the industry with
sustainable, low-CO
2
footprint colorants
Product Innovations
revive
colours
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FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
‘Accelerate to win’ strategy
The dynamics of our markets and business are increasing as we face
growing volatility, uncertainty, complexity and ambiguity. We have,
therefore, adopted an annual strategy review cycle. Changes may be made
each year in line with what we have learned or when external factors urge
us to reconsider elements of the strategy. We continue to protect and
extend global market positions in Packaging, Building & Construction and
Coatings & Sealants. The first year of the updated strategy yielded results
that were, to a large extent, in line with our detailed rolling three-year
Mid-Term Business Plan (MTBP).
ACCELERATE TO WIN
Our strategy is based on three goals and four enablers (roots).
GOALS – our goals will provide direction for successful long-term value creation.
Outpacing market growth (see the next section, Financial Key Figures, for more
information). In a partially recovering market, we strengthened our position in our core
segments of Building & Construction, Packaging and Coatings & Sealants. The specific
growth initiatives set out in our strategy generated satisfying business gains.
In all three divisions, volumes of additives for packaging and solutions for PET recycling
have grown as a result of customer and product development. We made further inroads
with solutions for sidings in Americas and colorants for coatings and sealants in Americas
and EMEIA. The growth initiative for Coated Fabrics in EMEIA also delivered its first results,
with new customers being won. We did not achieve our growth goals for selected
applications in Asia and initiated a market strategy analysis with an external partner to
better understand our positioning and chances for future growth in this region. The
conclusion was that we are well positioned in South East Asia as a niche player offering
high-quality solutions for growth in Packaging and Building & Construction. Based on the
insights obtained, we have planned concrete improvement measures that will put us back
STRATEGIC UPDATE
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HOLLAND COLOURS ANNUAL REPORT 2024/2025
We achieved our objectives
for continued revenue
growth, return on investment,
return on sales and solvency
in 2024/2025. We did not
meet our strategic objectives
for the innovation index, nor
did we achieve zero
accidents.
Strategy
2024/2025
Our strategic goals
• Protecting and extending global market
positions in Packaging
• Protecting and extending global market
positions in Building & Construction
• Extending market positions in
Coatings & Sealants, primarily in EMEIA
Our overall objectives
• Zero accidents
• Continued revenue growth
• Innovation index over 10%
• Return on Sales of at least 10%
• Return on Investment of at least 15%
• Solvency remains above 60%
on track for year-on-year growth. In China, we saw a further volume reduction in our
Holcomer functional color for the dairy market; we will therefore shift our focus towards
additives for PET packaging.
We have stepped up our global marketing efforts with more targeted campaigns via social
media and participation at various regional exhibitions. This has resulted in an increase in
marketing leads, many of which have been handed to our sales teams to become sales
leads. Our product and customer-development pipelines have grown in all three divisions.
Our sales cycles, having a position as a co-designer, normally exceed two years.
A growing number of customer projects, therefore, indicates a possibility of continued
volume and margin growth for the following years. A further important driver for continued
growth for the coming years has been the addition of new sales and business
development talent – an enabler to help capture that growth.
Increasing efficiency
We pursue continuous productivity improvement as a way to improve our competitiveness
and commercial power. We have defined a monetized productivity implementation goal for
the organization as a whole, and this has been broken down into smaller sub-goals and
allocated to specific projects. Execution of this program began early in 2025. The plan is to
identify how we can work smarter and remove inefficiencies. As part of this program, we
are working on utilizing new technologies like AI to support and automate office
operations.
Creating a position in the circular value chain
We continued our efforts to co-create sustainable solutions and contributions to the
development of a growing recycling market, a circular value chain and renewable
ingredients. We have increased our sales of additives for the global PET recycling industry,
and we have created a separate business unit dedicated to the sales of recycled and
renewable colorants. We made progress towards achieving our goal of 90% sustainable
products (one of our ESG targets), but we also concede that this goal is a stretch and will
be hard to achieve. For the time being, we are sticking to this ambitious objective, but we
will evaluate it next financial year pending potential changes in customer requirements
and market and regulatory developments.
GOALS
THE ROOTS
OF OUR
STRATEGY
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THE ROOTS OF OUR STRATEGY – these roots will make us stronger, more adaptable
and, ultimately, more resilient, helping us achieve our goals.
One company approach
We successfully moved to a more global organization last year. The central group
focuses on business creation (Marketing, Product Market Management, Procurement
and Product Development and Stewardship) and business support (Finance, General
Counsel, HR, IT and Business Processes, and Business Intelligence). We created a
uniform way of working and more cross-divisional collaboration and knowledge sharing.
Regional divisions continued to focus on business realization with respect to sales
and manufacturing.
We have not yet achieved our plans to increase the standardization and centralization
of our finance and accounting function. The main reason was a lack of people.
This project will be restarted under the leadership of the new CFO.
Process improvement
We continued to make progress on the optimization of our business processes and
IT to increase commercial, operational, people and innovation excellence. For our
commercial activities, we manage tasks via our CRM systems for marketing and sales.
The organization has been quick to adopt this new way of working. The project,
including final changes, has been successfully completed and formally closed. The legal
department has adopted new software as its working platform. We made good
progress with the development of new software for quality control and enterprise asset
management, with a go-live planned (EMEIA first) for the first quarter of the new
financial year. We started a pilot for data collection at shop floor level and began the
discovery phase for a new SRM (supplier relationship management) process and
system. We will continue to upgrade our business processes and phase out outdated
software.
Entrepreneurship
We innovate and explore new business opportunities and partnerships to either
strengthen our current position or speed up growth. Collaborations with raw material
suppliers and dosing equipment makers have enabled us to introduce new product
propositions to the market very quickly, extending our portfolio of solutions.
Our innovation activities regarding renewable colorants resulted in the establishment of
a wholly owned legal framework for venturing activities, focused on the creation of new
business involving renewable and/or recycled ingredients. The first concrete outcome
is the creation of a subsidiary company, Revive Colours BV, that will focus on sales of
pigments made from plant-based materials. We will develop our venturing activities over
the coming years. A project called ‘compounding of white recycled PET’ has also been
started.
Winning behaviors
We have defined four behaviors which will help us to be successful. Team Up to Excel;
Dare to Take Chances and Win; Beat Customers’ Expectations; and Commit to
Sustainability. They are based on our core values, purpose, mission and vision. We have
started a project that closely involves our employees. The project is about agreeing on
concrete improvement measures with respect to our working methods and these four
behaviors. The first experiences are positive, especially with ‘Team Up to Excel’ and Beat
Customer Expectations.’ As we move forward with the project, we will learn more about
the other two behaviors and introduce improvements.
The annual global employee survey, held in January 2025, offered a concrete opportunity
to collect feedback on the behaviors project. We are proud that it had an 83% response
rate, which was 6% higher than last year, and that we improved in four of the five themes,
scoring higher than the benchmark. The group engagement theme remained unchanged
at 7.6, which is higher than the benchmark of 7.0. Findings and feedback from the survey
will be used in the project around winning behaviors and to identify further improvement
opportunities.
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VISION 2035
The Board of Management prepared a Vision 2035 document in the last quarter of this
financial year. This initiative articulated a vision for the coming 10 years to provide a
compass for long-term strategic decision-making. Working with an external consultant, we
assessed key market dynamics to evaluate the significant changes across each segment’s
value chain (for Packaging, Building & Construction and Coatings & Sealants).
We extrapolated three megatrends – climate change, technological disruptions and
a fracturing world – to define three scenarios as archetypes of possible futures. Scenario 1:
collaborative and circular evolution; Scenario 2: pragmatic and gradual transition; and
Scenario 3: uncertain and fragmented change. We then defined Holland Colours’
positioning in 2035 per market segment, identifying key strategic enablers and risks.
Ultimately, we identified short- and medium-term no-regret moves and early warning
indicators for our annual strategic review.
The Packaging segment will show significant change and is expected to grow by 2-3% per
year long term until 2060. This segment will continue to experience a regulatory push to
bend the curve of plastic usage (especially in Europe), combined with an increase in
mechanical and chemical recycling. Market demand for additive masterbatches for
packaging (including special solutions for recycling) will increase, but this will not
compensate for the decline in demand for colorants. However, there are also limitations
to circular ambitions, especially in the short and medium terms, due to socio-economic
and technical hurdles. The Building & Construction market will also grow by 2-3% a year,
but change will be limited. The increase in global demand is driven by urbanization,
infrastructure investments and rising industrial applications. Fundamental changes in
business dynamics are not expected, and innovation will be product-focused
(sustainability, recycling of PvC and production (manufacturing efficiency)). The market for
Coatings & Sealants is expected to grow by 4-5% a year, driven primarily by automotive
and construction, with Asia-Pacific showing the highest growth. The market dynamics in
this segment are also characterized by limited change.
The conclusion of the Vision 2035 report is that sustainability will hugely transform the
plastic packaging industry. Companies wanting to be relevant in this market will need
both scale and innovation. Similarly, despite their largely unchanging business dynamics,
innovation and scale will still drive growth opportunities in Building & Construction and
Coatings & Sealants.
At the end of this financial year, the Board of Management discussed the Vision 2035
report with the Supervisory Board. The insights obtained from the report give enough
confidence that our current mission, vision and prevailing strategy – Accelerate to Win –
set the right direction for the future. Sustainable long-term value creation is our
responsibility. Therefor we need to increase profitability through continued revenue
growth while stabilizing costs. Our starting points of continuity and independence
remain a strong basis for future planning, including for the long term.
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FINANCIAL KEY FIGURES
2023/20242024/2025
Revenue
In million euros
+8.7%
112.3
103.3
2023/20242024/2025
Operating Result
In million euros
12.9%
7.9
7.0
2024/2025
2023/2024
2024/2025
2023/2024
2024/2025
2023/2024
2024/2025
2023/2024
2024/2025
2023/2024
2024/2025
2023/2024
Return on Sales Return on Investment
Earnings per Share Innovation Index
OWC as % of Revenue
Solvency
7.1% 17.1%
€ 6.85 4.5%
21% 77.9%
6.8% 15.5%
€ 6.02 7.4%
21% 78.4%
2023/20242024/2025
Net Result
In million euros
+13.5%
5.9
5.2
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FINANCIAL PERFORMANCE
Key figures in EUR million 2024/2025 2023/2024 Change
Revenue 112.3 103.3 +8.7%
Operating result 7.9 7.0 +12.9%
Net result 5.9 5.2 +13.5%
Revenue for the 2024/2025 financial year was € 112.3 million, an increase of 8.7% on the
previous year (€ 103.3 million).
An initial cautious recovery in demand became apparent in the last quarter of 2023/2024,
due to the replenishment of stocks in the value chain. But market uncertainty and
continuing elevated interest rates weakened this recovery. In these ongoing sluggish
market circumstances, two of our three divisions managed to increase their revenue for
the year, primarily due to higher volume growth in line with our strategic objectives.
The Group achieved a net margin of € 55.6 million, an increase of € 6.8 million compared
to the previous year. The margin as a percentage of revenue rose to 49.5%, up from
47.2%. This improvement reflects the continued success of effective margin management
across all regions.
Operating expenses were € 47.6 million, € 6.0 million (14.2%) higher than the previous
year. This increase was caused by continuing inflation and to expenditure to strengthen
the organization to realize our strategy objectives. We invested in our commercial
capabilities to outpace market growth, in business process improvement, in IT to increase
efficiency in our operations, and in our efforts to secure a position in the circular value
chain.
The operating result was € 7.9 million, versus € 7.0 million for the previous year.
The net result was € 5.9 million (€ 6.85 per share) versus € 5.2 million in the previous year
(€ 6.02 per share).
Developments by division
EMEIA
The EMEIA division grew its revenue by € 5.5 million versus the previous financial year,
coming in at € 60.1 million compared to € 54.6 million. The overall gross margin
percentage decreased slightly from 50.7% to 49.7%.
The most important factor driving this revenue increase was the execution of our strategic
growth plan, which is gaining momentum as we move forward. We also benefited from
the increased demand and volume growth of Building & Construction markets in the
Middle East.
AMERICAS
The Americas division saw revenues increase by 10.0% compared with the previous year,
from USD 41.3 million to USD 45.4 million. The overall gross margin percentage decreased
from 47.3% to 45.7%.
The housing market in North America did not improve versus the previous year, but we
secured a number of successes with new strategic business projects. Volumes for dark
colors for window frames and colorants for sealants increased as a result of this. The
market for white UHT dairy packaging continues to be important to the Americas division
and our volume was up versus the previous year.
HOLLAND COLOURS ANNUAL REPORT 2024/2025
24
EMEIA
in EUR millions
Americas
in USD millions
Asia
in USD millions
Key figures
2024/
2025
2023/
2024
2024/
2025
2023/
2024
2024/
2025
2023/
2024
Revenue third-party 60.1 54.6 45.4 41.3 10.7 11.6
Operating result 3.0 2.6 3.9 2.4 1.4 1.1
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While the discussion among some brand owners about the recycling benefits of switching
to clear packaging instead of colored seems to have stalled temporarily, we nevertheless
continue to believe that this sentiment could have an impact on the UHT market going
forward.
ASIA
Our Asia division saw revenues decrease by 7.8% compared with the previous year, from
USD 11.6 million to USD 10.7. The overall gross margin percentage increased from 48.8%
to 51.1%.
Indonesia, the primary domestic market of Holland Colours Asia, experienced a decline in
the geomembrane business due to the impact of government investment policies. The
division’s results were also impacted by the loss of some positions in the adhesive market,
due to price competition. On the other hand, the Building & Construction segment grew,
while the Packaging segment remained stable compared to the previous financial year.
Our business in other Southeast Asian countries increased compared to the previous year.
This was driven by a recovery among key customers in various niche market segments, and
initial results of our strategic business initiatives. In China, where our business is primarily
focused on UHT dairy bottle applications, sales continued to decline due to changing
packaging concepts. Product launches, like our new UV blockers for PET tea bottles,
incurred some delays due to extended testing requirements.
INVESTMENTS
Despite the uncertain economic and political environment, we continued to invest across
the divisions and regions, even though the activity level was lower than the previous year
and plan. In EMEIA, we invested in further maintenance (roof repairs) at our production
facility in Hungary. In the Netherlands, we invested in the semi-automated cleaning of
vessels in the paste department. This has cut the need for manual cleaning, improved the
ergonomics and reduced the use of ethyl acetate. Two important manufacturing extension
projects that will further enable long-term growth were delayed until the next financial year
as the design and engineering phases require more time than initially anticipated.
CASH FLOW
Net cash flow came in at € 2.0 million positive in 2024/2025, versus € 2.8 million positive
the previous year. This stemmed from, among other reasons, operating activities of
€ 7.3 million, a cash outflow from investment of € 2.1 million, a dividend payout of
€ 2.6 million and a cash outflow from other financial activities of € 0.6 million.
There were no changes in the company’s funding. Except for the liabilities related to
IFRS 16, the company remains loan free.
FINANCIAL REPORTING PROCESS
Holland Colours’ financial reporting is based on data and formats from the central
consolidation system. This is managed by the Corporate Group Controller to ensure
systematic operating procedures and data accuracy. Each month, the business controllers
prepare a financial report based on the monthly YTD results, plus forward-looking data on
revenue and margin development. The cost and operating working capital trends are
compared to budget targets and prior-year actuals. Financial and business performance
are discussed in a monthly business review with each divisional head and the business
controller. Quarterly reviews, which have a much more forward-looking objective, involve
the entire division’s management team. The consolidated results and summary comments
are subsequently sent to the Supervisory Board.
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The Board of Management consists of a CEO, CFO and CTO. Each member has a clear set
of responsibilities and decisions are taken at either the divisional or Board of Management
level.
Monitoring and steering the implementation of our strategy is done regularly by the
Accelerate Leadership Team (ALT), consisting of the Board of Management, the three
divisional heads (EMEIA, Americas, Asia) and the head of Global HR.
ORGANIZATION
The new matrix structure that was introduced last financial year has been well-accepted
by the organization. We have become more ‘one company and, as such, we are better
prepared to achieve our strategic objectives. Furthermore, we strengthened our
commercial and technology organization by introducing 11 new positions. This investment
in newly recruited senior talent has improved our commercial power and innovation
capabilities. Our finance organization was understrength for a large part of the year, with
a relatively high number of temporary employees. We began hiring new talent at the start
of calendar year 2025 and we are convinced that we will be able to build a solid finance
team for the future. As training is an important value driver and part of our ESG goals, we
maintained our training agenda while enhancing the skills, competencies and behaviors of
our employees and staff.
NOMINATIONS AND RECRUITMENT
Martijn Klomp was appointed as Chief Financial Officer (CFO) at the Extraordinary General
Meeting of Shareholders of January 30, 2025. In the course of his career, Martijn has
gained extensive experience in finance, control and accounting at renowned international
companies. We are happy that Martijn has joined the Board of Management, and we are
confident that his leadership and insights will make a valuable contribution to
strengthening our organization and achieving our long-term goals.
ORGANIZATION
A new General Counsel and Company Secretary, Annamária Vágási, was appointed per
October 1, 2024. Her task is to provide legal advice to the Board of Management and the
organization on a multitude of topics. Her role also includes providing support to the
Supervisory Board, organizing Supervisory Board meetings and advising on matters
relating to corporate governance.
To further strengthen the commercial leadership of the Asia division, and to reestablish
our growth path in this region, we appointed a new head of the division who has vast
international experience in commercial strategy and execution. He is expected to start
at Holland Colours later in 2025.
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Holland Colours’ product innovation strategy is centered around two key areas: tailored
product development in collaboration with customers and the creation of new products
and features that align with evolving market needs.
In both areas, we see a growing focus on the sustainability and circularity of plastics, with
Holland Colours’ products enabling customers to have a positive impact on these. Our
global product development team works closely with customers, suppliers, research
institutions, educational organizations and application partners to develop next-generation
iterations of existing products and to pioneer sustainable solutions. In recent years, our
focus has shifted from predominantly color-based innovations to the development of
functional solutions through additive concentrates, particularly in PET packaging. We
continue to invest in application knowledge and testing capabilities across key market
segments to ensure our products integrate seamlessly into our customers’ production
processes.
MARKET OPPORTUNITIES
Our key markets are undergoing significant changes, driven by the global transition toward
greater circularity and sustainability. The Packaging sector is experiencing the most
profound transformation, characterized by increasing recycling rates and a shift toward
circular materials. This transition is propelled by brand owner commitments and
government regulations. The growing emphasis on mechanical PET recycling presents
opportunities for Holland Colours to support recyclers in producing food-compliant,
high-quality and aesthetically superior materials.
To achieve Holland Colours’ ambitions on Sustainable Products, we are identifying
technical solutions that could have a positive impact on carbon footprint. We will make
continuous efforts to introduce these solutions and scout new opportunities.
Although product lifecycles are longer in the Building & Construction market, sustainability
and recycling remain key drivers of innovation. The speed at which change is happening
differs per market region, but it is definitely happening. Customers are exploring ways to
maximize waste material reuse and minimize their carbon footprint through optimized
production processes and the adoption of more sustainable materials. Similarly, the
Coatings & Sealants market is witnessing an increasing demand for sustainable product
solutions and a reduced carbon footprint. This offers opportunities to introduce
sustainable product innovations.
Our innovation efforts are directed at addressing these evolving needs by incorporating
non-fossil and bio-based ingredients wherever feasible. A key challenge in this transition
is the cost differential between bio-based alternatives and conventional fossil-based
options. Our approach to product innovation aligns with our strategic sustainability
ambition of achieving a 90% sustainability rating. We also concede that this goal is a
stretch and will be hard to achieve. To this end, we continuously invest in the development
of sustainable products in collaboration with suppliers and partners, ensuring that
implementation is closely coordinated with customers. In 2024/2025, we identified
technical solutions that could have a positive impact on carbon footprint; we are now
busy trying to introduce these solutions and scout new opportunities.
In recent years, Holland Colours has dedicated part of its development resources to
bio-based colorants. In partnership with a university, we successfully developed a blue
colorant derived from renewable materials, for which a patent has been filed. As part of
our revised strategy for 2024/2025, we further strengthened this initiative by establishing
a dedicated unit, HCA Ventures, with its own team. This specialized team is focused on
developing renewable and recycled colorants and additives, ensuring dedicated attention
to building a strong position within the sustainable value chain. Also in 2024/2025,
HCA Ventures launched a bio-based colorant subsidiary called Revive Colours.
INNOVATION PROGRAM
For the Packaging segment, new product introductions mostly focused on solutions for
PET recycling. This included ViscoBoost, a product that helps to increase the viscosity of
PET during the recycling process. A second introduction was CircStab, which stabilizes PET
during the heat treatment that occurs in recycling, thereby reducing discoloration and
degradation. Also in 2024/2025, we introduced a new generation of sublimation-stable
TintMask for converters, unlocking the potential of this product to recyclers as well.
PRODUCT INNOVATION
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The innovation program for Packaging anticipates the launch of further functional
additives, based on customers’ accelerating recycling ambitions and/or their regulatory
obligations. Other launches in this segment included product optimizations of our
HolcoPET liquid series in EMEIA. This was received positively by the market, providing a
solid base for tailormade colorant products for customers who prefer liquid products.
In 2022, we commercialized Holcopearl for coatings. The initial product enabled customers
to make white products for industrial coatings more quickly and more effectively. In the
past year, developments in this product group focused on the use of a cost-effective
alternative carrier system and broadening the color portfolio. Based on customer interest
in solid products for water-based coatings, we have developed and introduced a specific
product for such coating systems: Holcoprill Waterbased. It will also provide a platform for
developing a series of colors in this field.
For the Americas, we successfully introduced Holcoprill Plus in 2024/2025, offering
additional weathering stabilizing effects for PVC products. The introduction of this
functional solution in the Building & Construction industry is in line with Holland Colours’
ambition to offer relevant additives in all our strategic areas.
For Asia, we successfully introduced several products in Holland Colours’ global focus
areas of Packaging and Building & Construction, as well as products to meet customer-
specific needs in the local market.
PRODUCT STEWARDSHIP
Our Product Stewardship team is recognized as a trustworthy source of information
by customers, suppliers and brand owners. The team also represents a key pillar in
our commitment to sustainability, providing product health and safety declarations to
customers and translating external regulations into internal advice on how we should
prepare to comply with them. In 2024/2025, new legislation regarding plastics, food
contact and recyclability was either announced or introduced. This applied in particular
to the European region.
INNOVATION INDEX
We maintain an innovation index. The index measures the percentage of a particular
year’s revenue that comes from products that were launched in the previous five years.
The target we have set is at least 10%. In 2024/2025, the innovation index was 4.5%.
This is a decrease compared to prior year. The product launches in 2024/2025 and their
expected business potential increased compared to the previous year and are in line with
realizing our 10% innovation index ambition in the future.
28
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Holland Colours’ attitude to risk is reflected in our strategic ambition. Our strategy is to
stay close to our proven core technologies and products while responding to and
anticipating new market trends and innovations. Chief among these are sustainability and
circularity. These represent a trend, an innovation driver and a business opportunity for
Holland Colours.
In terms of financial performance, we aim to grow and protect our global market share in
the segments we serve and secure profitable growth year on year. We secure profitable
growth in a variety of ways, including by extending our technology base. This is driven by
in-house product innovation and/or third-party partnerships. Our strategy section on
page 19 details our ambitions for the coming years in terms of revenue growth, increasing
efficiency and creating a position in the circular value chain.
Another aspect is to foster business opportunities in neighboring product areas and
market segments. This way, we can both enter new markets and extend our expertise in
color formulations, additives and applications in ways that are effective and profitable.
Here, as elsewhere, our company culture is an important driver for the successful
implementation of this strategy. Holland Colours is a partly employee-owned company
with direct and informal reporting lines. Our teamwork-based and caring culture enables
us to outperform customer needs with technological and production capabilities that are
global in terms of scale and holistic in terms of approach. Holland Colours values collective
effort and teamwork, both internally and with our customers.
In 2024/2025, the Board of Management again paid ample attention to assessing key risks
that could impact the realization of the company’s strategic objectives. The Board of
Management assessed control measures and actions that must be taken to 1), manage
these risks should they occur, and 2), to exploit the opportunities these risks could offer
if they were to materialize. We assessed our corporate Risk Matrix and reviewed this with
the Supervisory Board. The most important risks are summarized below, including the net
risks once mitigation actions have been taken.
Our divisions, working closely with our central functions, are responsible for maintaining an
effective risk and control environment as part of our day-to-day operations. The directors
of our divisions and our business controllers have stated that they comply with the
guidelines and procedures that are the basis for financial reporting and internal audits.
As a company, we regularly evaluate our insurance cover, the premiums we pay and the
policy excess that applies.
HOLLAND COLOURS RISK AREAS
Risk Severity Risk Likelihood Risk Level
Intolerable
****
Extreme
****
Undesirable
***
Probable
***
High
***
Tolerable
**
Possible
**
Medium
**
Acceptable
*
Improbable
*
Low
*
RISK MANAGEMENT
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Strategic
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Trends in our current strategic segments
*** ** *** **
The chosen value drivers (goals and enablers) of our renewed strategy
*** ** *** **
Execution of the renewed strategy and our mid term business plans
*** ** *** **
TRENDS IN OUR CURRENT STRATEGIC SEGMENTS
Sustainability and recycling increase the reuse of polymers. This could reduce the need
for color concentrates, but it also creates an opportunity for functional additives and other
new solutions. We closely monitor developments in our core segments and explore
opportunities to innovate in other niche segments.
Overall, our global presence and strong relationships with key players in both the
Packaging and Building & Construction industries continue to drive the development of
our product portfolio. To protect our technology, we apply for patents where feasible.
We also closely track the dynamics in what is a competitive landscape. An annual review
by the Board of Management and divisions forms part of this strategic planning and
decision-making process. We see, for example, that global players are separating their
colorants businesses, acquiring compounders or teaming up with others. For instance,
there is a trend towards the standardization of technology and machinery among
converters in the packaging industry. Brand owners in this segment are also having a
growing impact. As these are global trends, we manage this segment of our business
on a global basis where it relates to strategy and product innovation.
These trends present both challenges and opportunities for smaller players like us
that have a global reach serving niche markets based on a service-oriented approach.
One of the risks of being a relatively small player with global reach is that we could end
up stretching our resources too thinly worldwide, while also failing to be effective in local
markets. The risk that we lack scale or are seen as lacking scale continues to receive full
management attention, and we are focused on developing the right products and
technologies. Our divisional sales and technology teams, in conjunction with our
Chief Technology Officer and our Innovation and Marketing teams, play a central role
in mapping our path ahead.
We choose to be strong in and focus on selected market niches. We, therefore, use
different go-to-market models to spread our risk, and we remain closely connected to local
developments. In the North American region, we work with local sales and service support.
In EMEIA and Asia, we have dedicated sales representatives in the various countries, in
some cases combined with dedicated distributors. For efficiency reasons, our product
supply remains predominantly regional. An annual review by the Board of Management
and divisions forms part of the strategic planning and decision-making process. We
evaluate the efficiency of the model and its elements and make changes as needed.
Towards the end of the financial year, the Board of Management drew up a Vision 2035
document. For more information, we refer to the strategic update on page 19.
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THE CHOSEN VALUE DRIVERS (GOALS AND ENABLERS) OF THE ANNUAL
STRATEGY REVIEW
With reference to what is stated on page 19 regarding the annual strategy review process,
it may be necessary – due to changing market and other external circumstances – to alter
certain aspects of our vision and strategy to secure sustainable long-term value creation.
EXECUTION OF THE RENEWED STRATEGY AND OUR MID-TERM BUSINESS PLANS
This concerns the risk that we cannot accelerate as much as we aim to, or that we fall
behind our execution plans due to unforeseen circumstances. We are in control of these
risks as we work with detailed implementation plans, responsibilities have been clearly
defined, and additional resources are being put in place.
“Sustainability
and recycling
increase the reuse
of polymers”
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Compliance
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Laws and regulations
**** ** *** **
Ethics
**** *** **** **
Cybersecurity
*** *** *** **
These risks refer to insufficient know-how and the measures we have in place to properly
manage ever-changing local and international compliance requirements.
LAWS AND REGULATIONS
We do not have a specific internal control department. However, we have appointed the CEO
as our Compliance Officer and established an Integrity Committee to control and mitigate
the business, compliance and fraud risks. Employees are co-owners of the company and as
such, responsible behavior can be expected of them. Nonetheless, our Code of Conduct
needs to be actively monitored and communicated.
The Board of Management takes measures to communicate the Compliance policy,
organizational framework and roadmap to divisional Management Teams and all employees.
Each year, to ensure the accuracy and completeness of our documents, we make an
inventory of documents listed in the Compliance Control Matrix, conduct a comprehensive
review of them and amend them where necessary. Recognizing the importance of local
representation, Local Compliance Coordinators are the point of contact per location
(Americas, Asia and EMEIA). Regular quarterly meetings with the Compliance Taskforce
are planned to ensure effective coordination.
From a preventative perspective, we partner with our key clients to interpret new regulations.
We achieve this by reformulating products and/or changing our internal operations if
needed. The latter may also be prompted by client audits (mainly in packaging).
All our manufacturing sites are ISO-registered and subject to regular audits.
We take a similarly structured approach to learning from incidents. Our complaints
registration and handling system has achieved outstanding scores for its structure and
content in multiple ISO audits. Complaints are discussed promptly by a Quality Assurance
team consisting of Sales, Operations, Technical and Quality Management, with follow-up on
the elimination of root causes. Product compliance and complaints management are an
agenda item at divisional management team meetings, while product liability risk is covered
in the agreements with clients and suppliers and insured through third parties.
ETHICS
We work in different geographies with different cultures. We also work with agents and
distributors. We not only want our employees but also our business partners to show
responsible and compliant behavior. The four core values (Teamwork, Responsibility,
Passion and Courage) of Holland Colours and our Code of Conduct underpin the culture
of the company.
In a move to streamline reporting processes, we have invested in the IntegrityLog digital
reporting system. This system aligns with the recent update to our Whistleblower’s policy,
providing employees with an easily accessible platform to report suspected wrongdoings or
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FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
undesirable behavior, including the option for anonymous submissions. This financial year
we have managed two incidents that were reported in IntegrityLog. The incidents reported
were not severe enough that we need to provide information about them in this annual
report.
CYBERSECURITY
Cybercrime risk is increasing, while the potential impact is becoming more severe. We
regularly train our people to identify and counter cybercrime. We also perform penetration
tests through an external partner on a regular basis. We hold awareness sessions and report
results, we have firewalls in place, and we report incidents to the BoM. We have insurance
coverage for cybercrime and an external party conducts annual cyber scans on our behalf.
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FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Fraud
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
The risk of the possibility of the Company being subject to fraudulent activity.
The Company identified the following areas:
Product pricing
*** *** *** **
Authorization matrix
** *** *** *
Gifts from/to relations
*** *** *** *
Agency commissions
*** *** *** *
Product pricing
We have an ongoing process for authorizing product pricing. Although there is no formal
control regarding adherence to the procedure, the regular margin analyses we run during
end-of-month procedures ensure it is under control. This reduces the risk that we
incorrectly offer favorable pricing to a customer or sell at the wrong price.
Authorization matrix
We continuously monitor authorizations, including management override, and have put
controls in place in Legal and Accounts Payable. We have improved this procedure by
implementing a new software tool for accounts payable that includes the authorization
matrix.
Gifts from/to relations
Our Code of Conduct includes rules about gifts to and from relations. In general, any
potential gifts from suppliers or business partners (especially those received around
Christmas) are collected centrally and distributed among all employees. The HR
department checks and controls the process of receiving gifts, especially at year-end
celebrations.
Agency commissions
In some markets, Holland Colours works with distributors or agents. All Holland Colours
agents have signed the Code of Conduct that applies to them. Every year, we evaluate and
register whether a controversial situation has occurred in the context of the Code of
Conduct, and how it has been dealt with. All Holland Colours distributors have received the
Code of Conduct and an accompanying letter in which we ask them to act in accordance
with it.
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FINANCIAL STATEMENTSMANAGEMENT BOARD REPORT
Financial
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Liquidity
* * * *
Other Financial (Currency, interest rates, capital structure)
** ** ** *
LIQUIDITY
This describes the risk that we do not have enough cash to pay our employees and
suppliers. Holland Colours is debt-free and has positive operational cash flows.
The divisions report monthly to the Board of Management, providing a cashflow overview
and forecast, which are reviewed and consolidated at holding level.
OTHER FINANCIAL (CURRENCY, INTEREST RATES, CAPITAL STRUCTURE)
The risk posed by currency exchange rate fluctuations. We do business in USD, IDR, GBP,
EUR, CNY, MXN, CAD and HUF. We have both revenues and expenses in all currencies, so
some natural hedges are in place. Please refer to Note 4 of the financial statements for
currency risk. We monitor the net effect on a continuous basis. We are not (actively)
hedging positions and consider it an acceptable risk.
Holland Colours continuously monitors elements that could jeopardize our financial
health. The risks that are part of our regular business operations (such as currency
and credit risks) are listed in the Financial Risk Management section of the Financial
Statements. The financial risks related to the funding of the company are limited.
We are debt-free with a standby credit line for ad hoc needs.
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Operational
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Safety
**** *** **** ***
Supply
**** *** **** **
Intellectual property
*** *** *** *
Human resources
*** *** *** **
Quality
*** * ** *
SAFETY
Health and safety risks are inherent to our operation given that we are a company with
manufacturing processes and laboratories, significant manual work and manual internal
logistics. We work according to a Safety Ladder concept that addresses all aspects related to
safe behavior. The Safety Ladder methodology has been introduced globally. Local practices
and regulations also form part of our safety programs. The Board of Management is informed
of L1 and L2 incidents within 24 hours. Learnings from near misses are shared between the
divisions. Information about a healthy lifestyle and good ergonomics are shared with
employees, and we have programs in place that contribute to the well-being of our employees.
Continued training in health, safety and, in particular, awareness and behavior are in place.
The Board of Management has introduced 10 rules of engagement with respect to safety.
SUPPLY
Any inability to secure raw materials on time disrupts our production process and means
we cannot supply our clients. Our multiple sourcing strategy reduces this risk significantly.
INTELLECTUAL PROPERTY
This is the risk that our IP is used by our competitors. Our IP is registered. The recipes are
protected by means of a good IT infrastructure and recipes are difficult to produce in
production environments outside those of Holland Colours.
HUMAN RESOURCES
Our workforce is aging. In Western countries (sites in Europe and USA), labor markets are tight,
while our operational activities are difficult and physically challenging. With fewer people
interested in and/or available to do jobs in operations, we are paying increased attention to
ergonomics and investing in training and automation to make these jobs more attractive. In
comparison with the previous year, we have reduced the net risk from high to medium by
hiring and onboarding various business experts from the market. These talents will help to
accelerate the implementation of our strategy.
QUALITY
Quality control reduces the risk that our products will be recalled due to production errors.
Holland Colours has a fully-fledged stewardship department which ensures adherence to
international standards and regulations regarding the use of raw materials for defined
applications (e.g., food contact). We have incorporated the scale-up phase as an integral
part of projects that relate to new product innovation. All global projects are subject to
extensive review by our Chief Technology Officer and subsequent approval by the Board
of Management. Special attention is paid to staffing and other needs during the scale-up
phase. Market launch is prepared under the direct supervision of the Head of Global
Marketing during the final phase of a product development project. Coordination between
the project leader and Global Marketing begins early, during the test marketing stage.
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Political
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Global economy and politics
*** ** *** **
GLOBAL ECONOMY AND POLITICS
We have a large geographical footprint and operate in many areas that are politically
unstable. The political situation in a country or region could influence the business or
project management. International tensions continue to be a consideration, such as the
war in Ukraine, for example, the armed conflict in Gaza and the discussions around
Taiwan. We monitor the risks and act upon them.
Since the change of the presidency in the US at the beginning of 2025, the international
business and political climate has become characterized by an even higher level of
unpredictability and uncertainty. At the time of writing of this report, there were first signs
that our business would be impacted directly by changes in trade tariffs on short term.
Indirect effects (i.e., longer-term impact on our value chains and the economy in general)
are difficult or even impossible to predict. We do not know what we can expect in the
future, nor do our customers and suppliers. Should we be negatively impacted by tariffs,
our first and most likely response would be to pass on cost increases to our markets.
Compared with 2023/2024, we have increased the net risk level from low to medium.
At the start of the war in Ukraine, export sales to Russia and Ukraine represented less than
4% of total Holland Colours Group revenue. In March 2022, we changed and
communicated our policy related to doing business in the region. We halted all business
development but decided that we were willing to continue to supply existing products to
existing customers under the prevailing EU sanctions. The company will continue to
monitor the situation closely.
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Sustainability
Gross Net
Risk Severity Risk Likelihood Risk Level Risk Level
Process
*** *** *** *
Product
*** *** *** ***
Climate Change Mitigation
*** *** *** **
Reporting
*** ** *** **
PROCESS
We have set ambitious goals to reduce the CO
2
impact of our operations by 2030. The
divisions have drawn up roadmaps for how they plan to achieve these reductions and are
actively executing them. There is a risk that legislation could be put in place that would
require us to have a greater impact at regional level. There are also further risks associated
with changing customer expectations and competitive performance – i.e., that our
customers have higher expectations and that our competitors are better able to meet
these. To keep the risk level low, we monitor this risk closely and it remains a priority
on the agenda.
PRODUCT
Increasing regulation and sustainability pressure from competitors pose a risk to Holland
Colours. The company must adapt to remain competitive. Circularity is a significant subject
in our industry and part of our strategy. Holland Colours aims to contribute to circularity in
the value chain and considers this in the design of our products and in co-design activities
with our customers. Due to a shift in the global public debate around sustainability, we
have increased this risk from low to high in comparison with the previous year. We have
ambitious sustainability goals for our products and a clear target for 2030. There is an
increased risk that we experience delays in achieving these goals and a risk that customers
are not willing to pay for the extra value that we plan to generate with these sustainable
products. The risk that competitors develop more sustainable products remains equal to
the previous year. We have made the sustainability of our products an integral part of our
strategy and this topic remains high on our agenda. We have a roadmap in place, progress
is being monitored and plan to reevaluate our targets set on product given the dynamics
we see as described above. We also put our vision into action and market our strong
points. Key is to invest in innovation through partnerships and in customer co-creation.
CLIMATE CHANGE MITIGATION
Climate change mitigation poses several risks for Holland Colours. Our ESG activities that
focus on reductions in Scope 1, Scope 2 and Scope 3 mitigate the impact of new legislation
that targets the reduction of GHG emissions.
Holland Colours’ own production processes emit relatively low amounts of CO
2
. Achieving
further reductions in these emissions would pose a financial risk in terms of additional
investment requirements and require extra time and resources from the organization.
Procurement and transport contribute significantly to CO
2
emissions, posing risks for legal
compliance and the company’s reputation. Climate change mitigation can also impact
customer choices and preferences.
We use customer co-creation dialogues to develop new solutions that include these
needs, and this approach was included as part of our renewed strategy.
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Holland Colours has an active program involving EHS (Environmental, Health and Safety)
teams in operations, and product stewardship team in product development, to ensure
we remain compliant with regulatory changes arising from climate change mitigation.
The section on ESG describes our plans, activities and progress in more detail.
REPORTING
The risk that we are not compliant with the CSRD reporting requirements effective in
2027/2028. We have established a task team that is responsible for securing adherence
to the requirements. Recently, the EU made certain announcements with respect to CSRD.
These amendments give us extra time that we will use to rethink our efforts with respect
to reporting. For the time being, our goals with respect to sustainability remain unchanged.
Risk-related events in 2024/2025
There are no risk-related events to report for 2024/2025.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT FINANCIAL STATEMENTSFIVE-YEAR SUMMARY & INVESTOR RELATIONSEMPLOYEE PARTICIPATIONREMUNERATION REPORTMANAGEMENT BOARD REPORT
Globally, the uncertainties regarding international politics have further
increased. The recent developments concerning global trade tariffs are
likely to have a negative impact on the world economy in 2025/2026.
Longer-term effects are hard to predict.
At the time of preparing this report, we were estimating the short-term direct effects of the
US government’s import tariffs on our business. We are identifying mitigation possibilities,
primarily by searching for alternative sourcing opportunities and by passing on cost
increases to our customers. The indirect effects of trade tariffs in the form of lower market
demand are hard to predict. We are therefore cautious regarding business expectations
for 2025/2026.
Our strategy includes specific initiatives to accelerate the growth of our core business, and
we are committed to finding new innovative opportunities in the area of recycling and
circularity. Our strategy continues to be based on a commitment to solidifying our position
as an independent supplier of colorants and additives. Holland Colours traditionally does
not include forward-looking financial statements in its annual reports. This also applies to
the current market situation, which is highly unpredictable and uncertain.
In accordance with provision 1.4.3 of the Code and Section 5:25c of the
Dutch Financial Supervision Act, the Board of Management declares that,
to the best of its knowledge:
•
The Report of the Board of Management as included in this Annual Report provides
sufficient insight into any deficiencies in the effectiveness of Holland Colours’ internal
risk management and control systems;
•
The aforementioned systems provide reasonable assurance that Holland Colours’
Financial Statements contain no material errors;
•
Based on the current state of affairs, it is justified that the financial reporting is prepared
on a going-concern basis;
•
The Report of the Board of Management lists those material risks and uncertainties that
are relevant to the expectation regarding Holland Colours' continuity for a period of
twelve months following the preparation of the Report of the Board of Management;
•
The Financial Statements as included in this Annual Report provide a true and fair view
of the assets, liabilities, financial position and profit for the financial year of Holland
Colours and the group companies included in the consolidation; and
•
The Report of the Board of Management as included in this Annual Report provides a
true and fair view of the situation on the balance sheet date, business development
during the financial year of Holland Colours, and of its affiliated group companies
included in the Financial Statements. The Report of the Board of Management describes
the material risks to which Holland Colours is exposed.
Apeldoorn, May 27, 2025
Board of Management
Coen Vinke (CEO)
Martijn Klomp (CFO)
Eelco van Hamersveld (CTO)
OUTLOOK 2025/2026 DECLARATION OF THE
BOARD OF MANAGEMENT
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Implementation of ESG
Sustainability is an integral part of our value creation goals. Technology is also at the core
of our business and many of our products. Because of this, we leverage technology and
data to drive innovation, with a strong emphasis on developing solutions that contribute to
a more sustainable industry while safeguarding the environment. This approach extends
across our products, operations and broader corporate citizenship. Consequently, ESG
plays an important role within our strategic framework, with collaboration, connectivity and
co-creation serving as the foundation of our approach.
We continue to integrate our previous CSR efforts within the evolving ESG framework,
taking concrete steps to formalize our approach. In 2024/2025, we advanced our efforts
by:
•
embedding ESG factors into our internal frameworks;
•
establishing governance structures;
•
implementing changes based on our double materiality analysis to align with compliance
requirements; and
•
further developing our processes for internal evaluation and external ESG
communications.
It is important to note that the new Omnibus I and II proposals could change the scope of
the EU’s Corporate Sustainability Reporting Directive and place Holland Colours out of
scope with regard to this regulatory requirement. As Omnibus I and II are currently only
proposals and not yet law, the approach described below will remain unchanged unless
the legislation changes. Nevertheless, our intrinsic motivation is the driving force for
adhering to ESG.
IMPORTANGE OF ESG IN CORPORATE STRATEGY
Holland Colours recognizes that strong ESG implementation goes beyond compliance
requirements; it is a strategic imperative. By aligning with ESG principles, we aim to
enhance our reputation, attract socially conscious stakeholders and mitigate risks
associated with environmental and social challenges. This approach not only aligns with
global sustainability trends, but it also strengthens our position as a responsible corporate
citizen, enabling us to navigate the evolving expectations of investors, customers and
regulatory bodies.
COMPLIANCE WITH CSRD REGULATONS
1
The Corporate Sustainability Reporting Directive (CSRD) is a mandatory reporting
framework from the European Union that governs sustainability reporting. Under the
CSRD, Holland Colours will begin disclosing its sustainability performance in accordance
with the specified criteria from 2027/2028. Despite not yet being applicable, we have
already begun implementing ESG processes aligned with the new guidelines. This
approach will help us to gradually integrate the CSRD requirements into our operations
while reinforcing our commitment to sustainability. Moving early will also allow us to
demonstrate our sustainability improvements in future annual sustainability reports.
1
The degree to which Holland Colours will have to comply with CSRD regulations depends on the outcome of the EU Omnibus
proposal to simplify ESG reporting.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
ESG Governance: Program structure
ESG is implemented in our organization through an array of targeted programs, each led by
a program owner. These programs are the driving force behind our sustainability initiatives,
ensuring that our ESG goals are not just aspirations but are also supported by actionable
plans with tangible outcomes. Communication and reporting are integral to this structure.
Board of Management
Endorses integration of sustainability in strategy, oversees implementation of sustainability initiatives
TOPICS ENVIRONMENTAL SOCIAL GOVERNANCE
PROGRAM
Sustainability
Product
Sustainability
Process
Sustainability
People
People
Excellence
Safety
Compliance
Program
Risk
Management
Each program has an owner and members who are responsible for ensuring that their respective sustainability objectives are met
CROSS-
FUNCTIONAL
SUPPORT
Reporting & Dashboarding
Ensures compliance with CSRD, accurate data collection, measurement, and meaningful reporting of ESG performance
Communication
Communicates sustainability efforts to internal and external stakeholders
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
ESG ROADMAP 2022-2028
In 2024/2025, we took a further step regarding our double materiality analysis and
validating the outcomes. We are now close to finalizing these. We also made progress
towards completing our gap analysis regarding what data we already have and what data
collection systems we still need to set up. We also made progress on designing processes
and controls, and started implementing them to manage ESG. This further emphasizes our
commitment to integrating sustainability across the company. Integrating CSRD and its
ESRS requirements (European Sustainability Reporting Standards) into the company is
a step-by-step process. Below is the roadmap we are following.
2
The 2025-2026 roadmap is highly dependent on the outcome of the EU Omnibus proposal to simplify ESG reporting.
•
Started preparing for introduction
of CSRD reporting directive
•
New baseline for implementation
of Scope 1, 2 and 3
•
Integrated ESG reporting as part
of overall strategy and reporting
in Annual Report
•
Completed definition measurements
for sustainable products and analyzing
first part of product portfolio
2022
Transition
GRI reporting
to CSRD rules
•
Draft double materiality analysis in place
•
Draft gap analysis completed
•
Processes designed, controls designed
and working on implementation
•
IT landscape/architecture regarding
non-financial information identified
•
Reporting dashboard designed and set up
•
Progress made on non-financial reporting
manual and preparing for rollout
2024-2025
Future-proof
•
Data collection strategy integrated
•
Sustainability topics are fully
embedded as part of regular
business operations and reviews
2025-2026
•
Limited assurance on ESG
reporting in accordance with
CSRD
2
and EU Taxonomy
declarations
2027-2028
•
ESG governance structure in place
•
Initiated the renewal of double
materiality analysis (DMA) to
include both inside-out/outside-in
perspectives
•
Analysis of products for
sustainability: >95% of product
portfolio analyzed
2023-2024
Integrate ESG into
our strategy,
decision-making
and reporting
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
Safety
Ensuring the safety and well-being of our employees remains Holland Colours’ utmost
commitment. Our primary focus is on fostering a work environment free of accidents.
We emphasize continuous training and the empowerment for our staff to promptly report
incidents, accidents and near misses. Through proactive learning and process
enhancements, we strive for excellence in our operations.
Accordingly, we have defined four safety categories:
•
An L1 accident is a lost-time injury.
•
An L2 accident is one that requires external medical treatment (rather than first aid),
or which leads to restricted duties for the person involved.
•
An L3 incident is one that requires first aid, or involves damage to material, or in which
smoke or fire are involved.
•
An L4 incident which relates to a near miss.
THE SAFETY CULTURE LADDER
We introduced the Safety Culture Ladder program in 2020/2021 and have continued to
strive to improve it since. Our primary goal with this program is to achieve zero accidents.
This initiative aims to instill a cultural shift towards safety by encouraging the active
participation of every employee in identifying and mitigating potential risks. It goes beyond
simple compliance with regulations, emphasizing both adherence to protocols and a
vigilant approach to hazard recognition. Paramount in this are regular discussions on
safety, people’s willingness to reporting unsafe conditions, and the need for effective
communication channels. The Safety Culture Ladder was developed for the construction
sector. Our goal is to reach step four of the ladder: Proactive.
SAFETY PERFORMANCE IN 2024/2025
Measurements from our internal system for monitoring safety improvement actions
indicated that our safety management improved in 2024/2025 compared to the previous
year. There is more focus on prevention and more focus on anticipation versus reacting.
The Board of Management and local leadership continued to signal the importance of
safety.
The number of Lost Time Injuries (L1) in 2024/2025 was zero. Unfortunately, there were
five L2 incidents, but the number of L3 incidents was again lower versus the previous year.
The reporting of near-miss incidents (L4) remained high, which helps the organization to
proactively address risky situations. The overall trend remains positive. We continue to
increase our safety efforts to ensure a safe workplace. More information on safety can
be found on page 55 under Learning & Development.
Safety 2024/2025 2023/2024
L1 : Lost time 0 0
L2 : Restricted Duty / Medical Treatment 5 5
L3 : First Aid, Material or Fire 37 45
L4 : Near miss 520 544
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FINANCIAL STATEMENTSESG
1
Pathological
The company’s attitude is that it doesn’t have
accidents so it doesn’t need to invest in safety.
2
Reactive
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
Calculating
The company pays attention to health and safety
and has clear safety rules, but safety is seen mostly
as a senior management task.
5
Progressive
Safety is a standard part of contractors’ operational
processes as well, and safety is ingrained in the
thinking and behavior of all employees.
4
Proactive
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
Aiming for zero accidents
We are committed to fostering a safe and healthy workplace environment and striving for
pro-active environment with high safety awareness and zero-accidents. Through ongoing
training initiatives and the creation of suitable conditions, we empower each individual to
perform at their best every day.
Central to this is to create a mindset and behavior that is focused at continuous
improvement, open dialogue and to encourage everyone to report not just accidents and
incidents, but near misses as well. Near misses represent potential hazards that, although
they haven't resulted in accidents, could have. By reporting near misses, we enhance our
preventive measures, ultimately reducing the occurrence of incidents and accidents.
4646
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FINANCIAL STATEMENTSFIVE-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
Sustainability
Holland Colours’ mission is to contribute to the development of a sustainable industry.
This involves collaborating as co-design partners to create solutions that align with our
clients’ ESG objectives. Our ESG framework guides our approach to key sustainability
areas, helping us evaluate decisions related to products, processes, personnel and
technology. It also shapes the collective impact of every member of Holland Colours, from
major strategic choices to everyday decisions, while supporting community outreach
across our divisions in the U.S., Asia and Europe.
On the technology side, our pigment encapsulation technology incorporates sustainability
into its formulation by using renewable resources where possible. This puts us in a strong
position to meet our clients’ increasing sustainability demands. As they seek more
sustainable solutions for their products, the need for renewable, recyclable or circular
materials is growing – particularly in packaging colorants and additives – as well as in
building and construction materials and coatings, sealants and adhesives. Meeting
sustainability and circular-economy requirements will be essential for Holland Colours’
continued success.
FOCUS AREAS AND THE LINK BETWEEN OUR SDG GOALS AND ESG
Our sustainability programs focus on three main areas: our process, our products and our
people. Our ESG efforts in these areas derive from a selection of the United Nations
Sustainability Development Goals (SDGs). Of the 17 SDGs, we selected seven that are most
relevant to Holland Colours internally, to our clients, to brand owners and to our value
chain partners. They are:
3. Good health and well-being;
7. Affordable and clean energy;.
8. Decent work and economic growth;
9. Innovation and infrastructure;
12. Responsible production and consumption;
13. Climate action; and
17. Partnership for the goals.
Sustainability at Holland Colours covers
our processes, our products and our people
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FOCUS AREAS
Based on the selected SDGs, we defined three focus areas:
We invest at least 2% per year
of our personnel wages
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 50% versus 2015.
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
offer 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 WE ARE
THE WINNING
SUSTAINABLE
SOLUTION
Our Processes Our PeopleOur Products
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FINANCIAL STATEMENTSESG
SUSTAINABILITY AND PROCESS
Regarding the sustainability of our processes, our main focus has been on our
GHG emissions. We are dedicated to minimizing our carbon footprint and effectively
managing greenhouse gas emissions across all three scopes.
In 2024/2025, we continued our carbon footprint analysis based on the Greenhouse Gas
Protocol guidelines. An external audit was carried out to determine the most suitable
emission factors. In Scope 3, waste is one of the two most significant factors contributing
to our overall carbon footprint. Accordingly, we will continue to focus on reducing our
waste and discussing possible improvements with our suppliers to lower our emissions.
Employee commuting by car is also a focus and we are working with employees to
promote sustainable travel to address this issue as well.
• Scope 1
emissions
• Scope 2
emissions
• Scope 3
emissions
arise directly from sources
that Holland Colours owns
or controls itself, such as
manufacturing processes,
equipment and company
owned transportation.
are indirect
emissions from
the electricity
we purchase.
are the most comprehensive and complex of the three scopes. They include all indirect
emissions that are not covered by Scope 2. This encompasses a wide range of activities,
including the emissions from business travel, our employees' commuting, waste
generation and water usage. The last three of those – travel emissions, waste and water
usage – have been added to our Scope 3 CO
2
calculations. They were not included in the
GRI calculations and therefore not included in the overall reporting in the previous years.
Explanation of used methodology
The Greenhouse Gas Protocol has emerged as the predominant greenhouse gas
accounting standard worldwide, offering a more comprehensive and transparent
framework for reporting. Holland Colours embraced the GHG protocol standard in
financial year 2022/2023, and the previously used GRI-based calculations are no longer in
use. Under the new methodology, Scope 1 and Scope 2 emissions have been calculated in
accordance with the Protocol.
Holland Colours has chosen to include Scopes 1, 2 (fully) and Scope 3 (limited categories),
in its GHG accounting. This annual report discloses emissions from Scopes 1 and 2, plus
Scope 3 categories 5, 6 and 7.
Calculating Scope 3 emissions is the most complex challenge. Under our current
methodology, we have excluded upstream categories 1 (product packaging and purchased
materials) and 4 (upstream transport) from Scope 3 calculations to maintain consistency.
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SUPERVISORY BOARD REPORT FIVE-YEAR SUMMARY & INVESTOR RELATIONSEMPLOYEE PARTICIPATIONREMUNERATION REPORT FINANCIAL STATEMENTSESG
Category 2 – capital goods – has been excluded because the indirect emissions from the
capital goods used by Holland Colours over the lifetime of their use are considered stable
and to have limited significance in the company’s overall emissions. Categories 3 (fuel and
energy-related activities not included in Scope 1 or 2) and 8 (upstream leased assets) are
excluded because they do not apply to Holland Colours’ activities or assets. Downstream
categories are excluded because of the difficulty of gathering accurate data about them.
The Greenhouse Gas Protocol divides an organization's impact into three scopes, each
defining CO
2
emissions. We have also highlighted the Scope 3 categories we have included
in our emissions.
Through in-depth reporting on all three scopes, we can comprehensively assess, manage
and mitigate our carbon footprint. Our strategies to curb emissions span all scopes,
encompassing investments in renewable energy and collaboration with suppliers to
enhance sustainability practices. Additionally, we involve our employees in promoting
sustainable behaviors and provide training to reduce carbon footprints both in the
workplace and at home. Embracing a new analytical approach, we remain committed to
reducing our emissions. We aim to continually monitor and report progress in our mission
to minimize our carbon footprint.
Overall, our emissions decreased by 41% in 2024/2025 compared to 2023/2024. This was
primarily driven by a drastic reduction in our Scope 2 emissions, which represent the largest
share of our gate-to-gate carbon footprint. This was achieved through a strategic shift to
green electricity and/or purchase of green certificates across divisions, resulting in a 73%
reduction in Scope 2 emissions. Some corrections were also made. For instance, in Scope 2
Asia, a booking error in one quarter (incorrectly booked as green energy instead of grey) led
to a 29% increase in Scope 2 Asia emissions in 2023/2024. This has been corrected in this
year’s data. The total GHG impact from scopes 1 and 3 saw an increase of 14% mainly due
to higher production volumes and associated activities such as increased employee
commuting and business travel. However, these increases were offset by the major decline
in Scope 2 emissions following a broader switch to renewable energy and more accurate
tracking of energy sources. The overall CO
2
-equivalent impact of the organization fell by 41%.
23/24 23/2424/25 24/25
Emissions per
kg product
CO
2
equiv-g
Total
emissions
CO
2
equiv-g in metric tons
369
4,605
756 7,796
23/24 23/24 23/2424/25
Scope 1 Scope 2 Scope 3
24/25 24/25
Emissions per scope
CO
2
equiv-t
1,168
1,358
2,079
1,058
4,960
1,778
RESULTS
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FINANCIAL STATEMENTSFIVE-YEAR SUMMARY & INVESTOR RELATIONSEMPLOYEE PARTICIPATIONREMUNERATION REPORTESG
The gate-to-gate carbon footprint (CFP) per kg product decreased from 756g CO
2
-eq/kg
to 369g CO
2
-eq/kg, reflecting a 51% reduction. This significant improvement reflects
increased green energy usage, purchase of green certificates and improved energy
efficiency per kg produced.
The energy mix for electricity
The energy mix at Holland Colours differs by region and supplier, month-to-month and
location-to-location. We monitor this monthly fluctuation across our global sites. The mix
broadly includes ‘grey’ fossil-based energy (mainly coal and natural gas), nuclear, hydro-
electric and other ‘green’ renewable sources like wind, solar and bio-based energy. In the
past year, we have increased the use of green energy significantly – particularly in the
Netherlands and EMEIA region. Moving forward, we will continue to assess and optimize
our electricity sourcing to improve our emissions profile in the future.
SUSTAINABILITY AND PRODUCT
Sustainability has evolved from a mere add-on to a driving force for innovation in our
industry. The materials market is undergoing a profound transformation, shifting from
reliance on fossil fuels to embracing sustainable alternatives, and from single-use
consumerism to prioritizing reuse and full circularity. Factors such as logistics, economies
of scale, raw material availability and geopolitical dynamics further contribute to this trend,
which is integral to our ongoing strategic review. Next to that, we setup a dedicated unit
under the name Revive Colours, which will focus on colorants produced from biobased
feedstock and/or low CO
2
.
In 2024/2025, we continued to advance our sustainable product assessment methodology
and applied it to 99% of our product portfolio. This was based on an enhanced
understanding of our position in the transition towards more sustainable materials and
by gaining deeper insights into our clients’ sustainability needs. We actively engaged with
our suppliers to understand their product development processes and emphasized the
importance of considering sustainability impacts.
At Holland Colours, we have defined a sustainable product as follows:
•
it enables our customer to have a lower cradle-to-gate CO
2
/kg equivalent impact in
material usage versus the main alternative solution in a specific application subsegment;
or
•
it enables our customer to have a lower CO
2
/kg equivalent impact in their production
versus the main alternative solution; or
•
it supports the increased recycling of materials.
Sustainable product assessment – our methodology
For each product subsegment, we take the main competitive product as being the
alternative. The assessment looks at three criteria covering the life cycle of the customer
product. Our product is considered (more) sustainable if the assessment of total
CO
2
impact across the three criteria is less than that of the competitor benchmark.
If it is equal, it is not sustainable.
Our three criteria are below. The evaluation is done from a customer perspective:
Criteria 1 – Assessment based on total CO
2
impact of the customer formulation
We compare the CO
2
value/kg of the formulation of our Holland Colours product against
the formulation used by the competitive benchmark product. Key comparison parameters
are:
•
the quantity of raw materials used for concentrate production;
•
the percentage of biobased material with a lower CO
2
impact;
•
changes in customer product materials (e.g. lower use of concentrates);
•
the concentrate production process (electricity/gas/heating/number of steps); and
•
waste generated during concentrate production.
Criteria 2 – CO
2
impact of the customer production process
Here we compare the CO
2
/kg generated during the production process, by the customer,
using a Holland Colours product versus the competitive benchmark product. Key
comparison parameters are efficiency, energy usage/heating required, number of
production steps and the amount of customer waste generated.
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Criteria 3 – Impact on recycling of customer product
The recyclability of the customer’s product made with a Holland Colours solution is
compared to that of the same product made with a competing solution. The comparison
focuses on the impact each solution has on the sorting, separation, and recycling
processes.
At the end of 2024/2025, 48% of our assessed product portfolio is considered sustainable,
an increase of 4% versus last year. This 4% improvement is attributable to normal shifts in
the product portfolio and additional assessments (29 new product-market combinations
evaluated this year). Only 2% of our portfolio remains unassessed, compared to 5.0% last
year. The decrease is due to the inclusion of more categories that grew in volume and
were now eligible for assessment. Additionally, some straightforward product categories
were newly evaluated. These results are primarily due to criteria 1: the product used and,
specifically, the use of natural or biobased carrier materials that, on average, lowered the
environmental impact. The largest contribution in our cradle-to-gate analyses came from
the Scope 3 raw material impact.
We will use the learnings and results from these assessments to improve our methods
and to align with customers on their expectations. We will also undertake improvement
initiatives to increase the percentage of sustainable product in our portfolio. Our target
continues to be to have 90% of our revenue derived from sustainable products by 2030.
We also concede that this goal is a stretch and will be hard to achieve. To support this,
we continue to invest structurally in innovation, supplier engagement and product
development to substitute fossil-based ingredients with sustainable alternatives
wherever possible.
Our procurement and product development team have started a program to identify and
replace fossil-based ingredients with more sustainable alternatives where possible. As part
of this program, we carefully evaluate both product performance and compliance, as well
as the cost of the formulations. We are finding that the multitude of unique and customer-
specific formulations produced by Holland Colours is making it difficult to achieve rapid
progress in transitioning existing products towards new and sustainable alternatives.
Therefore we plan to reevaluate our targets set on product given these dynamics.
SUSTAINABILITY AND PEOPLE
Our strategy includes building on our competencies and developing our skills. We maintain
an environment in which we train our people and create the right conditions for each of us
to give our best every day. Our ambition is to invest at least 2% per year of our personnel
wages in our employees. This is used to stimulate personal development, deliver training,
to support team development and/or as time that can be spent on local charity and
volunteering activities.
All employees are part of the Better Together Dialogue (BTD) cycle. By better
understanding the ambitions and talents of our people – and discussing how each of us
can contribute to our strategy of Accelerate to Win – we create a culture of continuous
Sustainable % of Revenue
50%
Non-sustainable
product
2%
Non-assessed
48%
Sustainable
product
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learning, development and feedback. Through these well-integrated and ongoing
Holland Colours dialogues, we help each other to become stronger, more efficient and
more effective. The dialogues also help us ensure we maintain an ongoing focus on
personal development plans and the development of competences and behaviors.
Through the dialogues, we agree on clear, mutual expectations, so increasing
accountability within our organization.
Every dialogue starts with questions for the employee. The next step is to reflect on the
answers and create an individual development plan that encourages each employee to
think ahead. In 2024/2025, we introduced new BTD questions such as: ‘How will the new
strategy affect my job?’ and ‘What are the strengths that makes me successful and can
contribute to developing our people?’
Our Winning Behaviors
In addition, and also as part of our strategy, we are working with our employees to
co-develop our Holland Colours Behaviors. We have translated our core values into
Winning Behaviors – unique strengths that differentiate us from our competitors.
These behaviors are close to our hearts as they make us unique and successful. This is
why we foster, continuously develop and improve these behaviors to accelerate to win.
The Winning Behaviors are: Team Up to Excel; Beat Customer Expectations; Dare to Take
Chances and Win; and Commit to Sustainability. Part of the BTD cycle involves reflecting
on these Holland Colours Behaviors and identifying which skills or behaviors need further
development (and how) to deliver success.
Team Up to Excel emphasizes the importance of collaboration at three levels: within
teams, across different departments and with customers. It highlights that teamwork
is essential to achieving better results and is more effective than working individually.
By respecting each other’s competencies, sharing knowledge and supporting personal
development, teams can drive excellence and outperform competitors.
2024/2025
2023/2024
2024/2025
2023/2024
New hires by gender
In total
Diversity & Equal Opportunities
In %
*
Board of Management and Senior Management
40 5919
23
13 163
22
+ =
22
25
Employees Management*
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Dare to Take Chances and Win emphasizes the importance of taking risks and stepping
outside comfort zones to drive innovation and growth. It encourages exploring new
opportunities, experimenting and adapting to changing market demands. By proactively
reaching out to new people and asking questions, individuals and organizations can
broaden their perspectives, flexibly adapt to the outside world and improve their
achievements.
Commit to Sustainability emphasizes the importance of sustainability in all aspects of
the company’s operations. It highlights Holland Colours’ dedication to guiding customers
towards sustainable solutions, improving products and processes and focusing on the
well-being of employees. This includes prioritizing safety, equality, health, personal
development and community engagement. The commitment to sustainability is seen
as essential for the company’s growth and long-term success.
Beat Customers’ Expectations emphasizes the importance of exceeding customer
expectations by understanding and fulfilling their needs through collaboration. It highlights
the need for proactive and thoughtful interactions with both customers and colleagues.
By building strong relationships and fully understanding the context and needs of both
internal and external customers, the organization can distinguish itself from the
competition and achieve better results.
At the beginning of the 2024/2025 financial year, we introduced a development program
covering the Winning Behaviors. First, in interviews with 50 colleagues, we explored our
current and desired situations and the “gaps” between these and our Winning Behaviors.
We then determined where we could improve the most to achieve the desired situation.
Taking a bottom-up approach, we worked on several topics to accelerate our Winning
Behaviors. These topics involved doing little things that would be felt immediately by teams
and individuals. Starting in June, a team of people at every location came together every
two months to identify small steps that would accelerate our Winning Behaviors, while also
being easy to implement.
Examples of things we have done include having Operators communicate job details
themselves during the daily shift meetings, reintroducing the Lunch & Learn program in
America, introducing short ‘alignment’ meetings between departments in Asia and setting
up a weekly meeting in Production to ensure that information also cascades down to our
non-office colleagues in the Netherlands. From a one-organization angle, we introduced
better guidance on holding meetings across time zones. Generally, we aim to prioritize
existing systems that require training to improve collaboration. Improvement doesn't
always require new ideas; sometimes, just paying something more attention is enough
to accelerate the communication and cooperation.
The Winning Behaviors development program will continue in the new financial year,
and we will measure it during our Annual Employee Survey.
Employee Survey
As we do every year, we organized a global Employee Survey among our employees
in 2024/2025. With a high response rate of 83%, our people are eager to share their
feedback with management. We performed better than last year on the themes of
Alignment, Change Management, Team Leadership and Teamwork. We scored exactly
the same on Engagement, and while Employer Excellence was a new theme for us, we
outperformed the benchmark. The message coming through is that our people are proud
to work at Holland Colours because of the team dynamics and Holland Colours as an
employer. In the coming months, we will discuss the results within the teams and define
team-level improvement points.
Based on the results of the Employee Survey, we are proud to have been named a
“World-class Workplace 2025!” by Effectory, an independent firm specializing in employee
feedback research.
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2% of our personnel wages are allocated to People development
We protect the safety, health and welfare of HCA employees, and offer development
opportunities to all. Given our geographical footprint, we consider it important to employ
local people. We invest at least 2% per year of our personnel wages 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.
Every division has allocated 2% of their budget for People Development. The 2% is
assigned as follows:
1. Learning & Development: 80%.
2. Well-being & Health: 10%.
3. Local charity and volunteering activities: 10%.
Learning & Development
The goal here is to make the best possible use of the ambitions and talents of all our
people in achieving our strategy. By stimulating and supporting all employees with training,
backed by the Better Together dialogues, we can create a culture of continuous learning
and development.
Every employee has a Better Together dialogue with their manager. Development plans
can be broad or short-term, ranging from skills-based training (knowledge needed to do
a specific job or project), to competencies training (knowledge and behaviors that enable
someone to be more widely successful within Holland Colours). We continually push to
provide and get feedback, because this is the only way we can develop as an individual and
as an employer. The result is that we are creating and maintaining a continuous learning
and development organization that delivers higher performance and utilizes our talent.
In 2024/2025, the total spend on training and development amounted to 70% of the total
budget (2023/2024 was 66%).
We held safety-first trainings at all our locations in 2024/2025. These included the annual
first-aid training, plus an ADR training/Hazardous Waste Training (Only Ship-Rec). Through
the ADR/Hazardous training, we ensure that people have the knowledge, skills and
expertise to use and ship dangerous goods safely and efficiently. Being on level 4 of the
Safety Ladder demands safety awareness, and we held trainings on recognizing obstacles
to safety and to remind people about their own safety-related behavior. In addition, the
Americas and Asia divisions held Fire Extinguisher Training sessions involving live fires.
Americas further organized a Respirator Training and Fit test, Active Shooter Training
(Richmond Police Department) and Drug Usage and What to Look For (Richmond Police
Dept). We held a PPE toolbox meeting in every location, too.
Globally, we introduced Microsoft 365 training. We have a lot of Microsoft 365 applications,
and this project aims to help all our office employees get the most out of them by
stimulating productivity, collaboration and good internal communication. The ultimate goal
is to increase the efficiency of our digital way of working. We first trained some colleagues
to become key users. They can then train their colleagues on efficient ways of working with,
for example, Teams, Teams productivity, Outlook calendar and Outlook email and
SharePoint. The second phase will concentrate on OneDrive and document sharing.
On a different note, we also invested a lot of time in cascading and teaching people about
our strategy. Starting with our top 30 leaders, we cascaded our strategy and insights to
local managers. We invested time in engaging people in our strategy and we saw their
appreciation of this in their feedback in the employee survey.
Increasing Efficiency is one of our strategic pillars. To support projects related to this,
we organized training on basic project management for people in HR, IT, Operations and
Procurement. And as our BP-IT organization already has extensive experience working in
projects, we decided to train project sponsors on their role and how they can support and
assist project leaders.
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Commit to Sustainability is one of our Winning Behaviors. Commitment involves more
than just undergoing a training program, which is why sustainability is at the heart of our
organization and part of our mission and our strategy. As part of this, we train our people
on ESG, so they feel included, involved and committed. Last year, we paid a lot of attention
to providing ESG training for our commercial teams around the world. As a result, they are
well informed about Holland Colours’ ESG initiatives and our ambitious sustainability goals,
and they can convey this positively to our customers, agents, distributors and other
partners.
Turning to Knowledge, we are working on capturing knowledge areas and creating internal
training within our Technology group. The goal is to safeguard internal and external
Holland Colours knowledge for the future.
To ensure compliance, we held our annual global cyber training for office employees in
October, and in March we launched the Collusion/antitrust e-learning training for our sales
and procurement employees.
All locations again offered a number of individual competence and skill-specific training
courses in 2024/2025. We also hired more internationals, which is resulting in more and
more English being spoken in the company. A number of colleagues in Apeldoorn, Szolnok
and Asia started English language training. And in Szolnok, a Lean training was organized
for the Color Design Lab and for Logistics, plus a Lean training Six Sigma program for the
Color Design Lab.
Well-being & Health
All our regions took part in well-being, charity and volunteering activities in 2024/2025.
Here are some of the highlights.
In the Netherlands, we extended the opportunities around sustainable employability.
Every employee receives a budget that they can use to improve or increase their long-term
employability. The budget allows employees to make their own health and well-being
choices, such as taking part in sports activities, support on certain topics, buying extra
vacation days, support with healthy meals, etc. In addition, our Apeldoorn location
organized multiple activities to stimulate the health and well-being of the individual
employee. The idea was to engage people, stimulate connections between different
departments, make people feel happy and other ways to contribute to the well-being
of the employee.
Vitality week, in September, aimed to encourage connection and collaboration among
colleagues through challenging sports and other activities, and healthy food. The annual
Sustainable Employability Interview between employee and manager also featured again.
Holland Colours also offered every employee two chair massages, while one of the favorite
activities continued to be a lunch walk, organized by a group of colleagues.
The health of our employees matters to us. We therefore organize different kinds of
activities per location with the aim of preventing health issues or stimulating people to live
more healthily. In Szolnok, Hungary, we continue to offer all colleagues a medical check-up
and an ultrasonography checkup. Around 80% of our employees there took up the offer.
In addition, the annual gynecological checkup was organized once again. In EMEIA, we
offered eyesight tests, and we support people who need prescription safety glasses or
computer glasses. We organize hearing tests in every region to ensure we have the right
noise protection equipment in our factories.
In the Netherlands, we organized activities to stimulate taking part in sport. In Americas,
we held our Annual Employee Health Fair, allowing employees and their spouses/partners
to meet with health care providers and local non-profit organizations. In Asia, we
organized an Annual Medical Check-up (MCU) for all employees. This aims to detect health
issues and ensure employees are fit to do their job. The MCU also checks for health risks
in the workplace. In addition, we trained key leaders in well-being and mental health issues
to create awareness and understanding of the impact of these on personal, team and
workplace productivity.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
Local charity and volunteering activities
To mark the anniversary of Holland Colours, in April, we gave each employee a sapling as
a souvenir of this festive moment. Each of these small trees represents Holland Colours
and the growth we want to achieve together through our Accelerate to Win strategy.
Tying into this, we donated trees to the WWF’s Atlantic Rainforest project. For every year
Holland Colours has existed, we planted 100 m
2
(120 sq. yards) of forest. This means
4,500 m
2
(5382 sq. yards) of forest in total and 10 m
2
(12 sq. yards) of forest per employee.
In this way, we are helping to bring the forest back to life.
Our location in Szolnok, Hungary, donated to four local activities: to disabled children in
secondary school, to the Szolnok Street Music Festival, and to Szolnok Folklore Dance Club.
It also supported young athletes and a local sports club. Szolnok also donated to the
Hungarian ‘10 Million Trees’ foundation, which plants trees for schools and kindergartens.
Holland Colours Hungary received 10 trees from the foundation, which we then planted
between our buildings.
Our people in Americas continued to offer financial support to the Laundry Days and
Diaper Project as well as several other local non-profit organizations. They also resumed
volunteer participation in the Laundry Days and Diaper Project packing/distributions
events.
Our location in Asia planted 50 trees to support global concerns about climate change due
to CO
2
, and to ensure the sustainability of the green environment where our business is
located. Holland Colours Asia worked on this with non-profit organization Bhumi Bhakti
Mulia and local government.
Together we make
the difference!
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HOLLAND COLOURS ANNUAL REPORT 2024/2025
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
CORPORATE GOVERNANCE
Holland Colours is a limited liability company with common shares listed
on the Euronext Amsterdam stock exchange.
Corporate Governance Framework
The company’s management structure complies with Dutch law and has two tiers
consisting of a Board of Management and a Supervisory Board.
Holland Colours promotes responsible behavior towards society and the environment,
while at the same time taking into account the interests of its various stakeholders:
employees, shareholders, other capital providers, customers and suppliers.
Holland Colours is incorporated and based in the Netherlands. The company’s governance
structure is based on the requirements under Dutch legislation and the company’s Articles
of Association, complemented by internal policies and procedures. Given the worldwide
exposure of our business, we conduct our operations in accordance with internationally
accepted principles of good governance.
Good corporate governance, long-term value creation and engagement are key
components of the Holland Colours culture and way of doing business. They are
embedded in our core values.
BOARD OF MANAGEMENT
The Board of Management is ultimately accountable for giving due consideration to the
interests of all parties involved, focusing on the continuity of the company and long-term
sustainable value creation for stakeholders. The Board of Management is held accountable
for the performance of its duties by the Annual General Meeting of Shareholders (AGM).
The risk management strategy and internal control framework play an important role in
this process.
The statutory responsibility resides with the Board of Management, which consists of the
CEO, CFO and CTO. Until February 1, 2025, the position of the CFO was filled temporarily
by a non-statutory interim CFO. A statutory CFO was appointed as of February 1, 2025.
The Board convenes every two weeks with a formal agenda and a list of action items and
decisions to be made. The Board of Management meets regularly with the divisional
management teams and staff from the central group for monthly business reviews and
quarterly updates on major projects. Large product, technology, innovation and capex
projects need specific approval by the Board of Management. Budgets are approved as
part of the annual budget review.
SUPERVISORY BOARD
The Board of Management is held accountable by the Supervisory Board for defining and
implementing the company’s long-term value creation strategy as well as its day-to-day
operational management. The members of the Board of Management attend the periodic
meetings of the Supervisory Board, the meetings of the committees of the Supervisory
Board, as well as incidental update calls. The CEO serves as the main point of contact for
the Supervisory Board. The Company Secretary assists the Supervisory Board by ensuring
adherence to correct procedures, statutory obligations, the Articles of Association and in
organizing Board affairs.
COMMITTEES OF THE SUPERVISORY BOARD
There are two committees of the Supervisory Board: the Audit Committee and the
Remuneration Committee.
Audit Committee
The Audit Committee assists and advises the Supervisory Board in its responsibility of
supervising the integrity and quality of Holland Colours’ financial reporting and the
effectiveness of its internal risk management and control systems.
The Audit Committee consists of Gert-Hein de Heer (chair) and Jorrit Klaus, who both
qualify as financial and risk experts.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
Information on the activities of the Audit Committee during financial year 2024/2025 is
included in the report of the Supervisory Board (page 70 of the annual report 2024/2025).
Remuneration Committee
The Remuneration Committee (‘RemCo’) assists and advises the Supervisory Board on
matters relating to the selection and appointment of the members of the Board of
Management and Supervisory Board. The RemCo also monitors and evaluates the
remuneration policy for the Board of Management.
The RemCo consists of Aukje Doornbos (chair) and Jeanine van der Vlist. Information on
the activities of the RemCo during financial year 2024/2025 is included in the report of the
Supervisory Board (page 70 of the annual report 2024/2025).
ANNUAL GENERAL MEETING OF SHAREHOLDERS (AGM)
The AGM is an integral part of the company’s governance and its system of checks and
balances. The AGM reviews the Annual Report and decides on the adoption of the financial
statements, the dividend proposal, the discharge of the duties performed by the members
of the Supervisory Board and the Board of Management, and the adoption of the
remuneration policy of the Board of Management and the Supervisory Board.
The AGM is convened by public notice. The agenda, the notes to the agenda and the
procedure to attend and vote at the meeting are published in advance and posted on the
corporate website. Matters proposed for consideration, approval, or adoption are dealt
with as separate agenda items and explained in writing in advance of the meeting.
These proposals include where applicable:
•
Adoption of the financial statements;
•
Dividend proposal;
•
Discharge of their liability for the duties performed by the members of the Supervisory
Board and the Board of Management;
•
Appointment and reappointment of members of the Board of Management and the
Supervisory Board;
•
Remuneration policy of the Board of Management and the Supervisory Board;
•
Appointment of the auditor;
•
Other important matters, such as major acquisitions or the sale or demerger of a
substantial part of the company, as required by law or under the Articles of Association;
•
Authorization of the Board of Management to issue new shares;
•
Amendments to the Articles of Association.
The company provides options to its shareholders for voting by proxy. Holding shares in
the company on the registration date determines the right to exercise voting rights and
other rights relating to the AGM. All resolutions are adopted according to the ‘one share,
one vote’ principle, and by an absolute majority of votes, unless the law or the company’s
Articles of Association stipulate otherwise.
Holders of common shares that in total represent at least 1% of the total capital issued
may submit proposals for the AGM agenda. Such proposals must be adequately
substantiated and must be submitted in writing, or electronically, to the company at least
60 calendar days in advance of the meeting. The draft minutes of the AGM (in Dutch) are
made available on the company’s corporate website within three months of the meeting
date. The final minutes (in Dutch) are available on the corporate website within six months
of the meeting date.
There have been no substantial changes to the corporate governance structure. Any
future substantial changes will be submitted to the AGM.
Information on the activities of the RemCo during financial year 2024/2025 is included in
the report of the Supervisory Board (page 70 of the annual report 2024/2025).
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
Corporate Governance Code
Holland Colours endorses the principles of the Dutch Corporate Governance Code
(the ‘Code’). The Code applies to all listed companies having their statutory seat in
The Netherlands. Its latest version (2022) can be found on the website of the Corporate
Governance Code Monitoring Committee at www.mccg.nl. The Code is reflected in the
regulations of the Board of Management and the Supervisory Board.
Compliance with the Code is based on the “comply or explain” principle. The Board of
Management and the Supervisory Board account for compliance with the Code in the
AGM and provide a substantive and transparent explanation for any deviations from the
principles and best practice provisions. The alignment with the Code, including an
explanation for any deviations, is recorded in a comply or explain manual as published on
our company website. The main deviations from the Code relate to the subjects outlined
below.
DIALOGUE ON SUSTAINABILITY ASPECTS WITH STAKEHOLDERS
To ensure that the interests of the relevant stakeholders of a company are considered when
the sustainability aspects of the strategy are determined, a company should draw up an
outline policy for effective dialogue with those stakeholders (Best Practice Provision 1.1.5).
This best practice provision has been introduced by the Monitoring Committee Corporate
Governance with effect from January 1, 2023. Holland Colours already held dialogues with
different stakeholders. However, a policy for effective dialogue has not been drawn up yet.
INTERNAL AUDIT FUNCTION
The internal audit function, currently carried out by the Group Controller under the
supervision of the CFO, focusses on selected aspects of internal controls and risk
management. This is a temporary arrangement, which deviates from Principle 1.3
of the Code.
The CFO periodically informs the Audit Committee about the activities conducted by the
Group Controller. The Supervisory Board evaluates annually whether adequate alternative
measures are in place and will consider establishing a dedicated internal audit department
to align with the Code.
CONFLICTS OF INTEREST
As Holland Pigments BV is a majority shareholder in Holland Colours, with all employees
of Holland Colours having shares in Holland Pigments BV, any transactions between
Holland Pigments BV and the company that are of material significance are subject to
approval by the Supervisory Board.
Under the Code, all transactions between the company and Holland Pigments BV must
be agreed upon under conditions customary in the sector. This principle is supported
by Holland Colours. However, given the special position of Holland Pigments BV as an
investment company in which all employees of Holland Colours participate worldwide, it
may sometimes be difficult to determine what is customary in the industry. In line with
Best Practice Provision 2.7.5 of the Code, transactions which are of material significance
require the approval of the Supervisory Board.
SHAREHOLDER POWERS
For practical reasons and because of the costs involved, the provision stipulating that there
should be an option for shareholders to follow meetings with investors and analysts and
presentations and press conferences in real time is not observed. All relevant information
is immediately published on the company’s website.
CANCELLING THE BINDING NATURE OF A NOMINATION
As long as Holland Pigments BV holds an interest of at least one-third of the issued capital
of Holland Colours, it has the right to nominate one member of the Supervisory Board.
The general meeting of shareholders may pass a resolution to cancel the binding nature of
such nomination by a majority of at least two thirds of the votes cast, provided that those
votes represent more than half of the issued capital of Holland Colours.
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FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
Policies and procedures
Given the worldwide exposure of our business, we conduct our operations in accordance
with internationally accepted principles of good governance. Our governance structure is
complemented by internal policies and procedures.
DIVERSITY POLICY
Together with HR, the Board of Management strives for diversity, while selecting the right
candidates with the right competences. In a historically male-dominated industry, we strive
to attract talented women to our workforce.
Holland Colours values diversity highly. Diversity is crucial to create a fair and inclusive
society. It promotes equal opportunities and helps break down barriers of prejudice and
unconscious bias. Diversity in the workplace increases creativity, innovation and
productivity, and it contributes to well-informed decision-making. Holland Colours wants to
be an inclusive organization.
We provide an environment in which all employees have equal opportunities to develop
and contribute to the realization of our strategy, regardless of their age, background,
gender, nationality, ethnicity, or religion.
Tone at the top
We are convinced that diversity strengthens the competences within the organization. Top
and senior management set the example and diversity begins here. By having a balanced
ratio of men and women in the Supervisory Board, the Board of Management, senior
management and divisional management, we emphasize the importance of gender
diversity within Holland Colours.
Two of the four members of the Supervisory Board are female and two are male. All
members of the Board of Management are male.
Information about the composition of the Board of Management and the Supervisory
Board can be found in the reports of the Board of Management and the Supervisory Board
in our annual report 2024/2025 and on our website.
Safe environment
We aim to provide a safe environment within Holland Colours. In such an environment, our
employees feel safe to give feedback about each other’s behaviors and work, and to openly
discuss their own and others’ mistakes. A safe environment is essential to creating a
diverse culture in which age, background, gender, nationality, ethnicity and religion don’t
matter. We stimulate safety awareness at every location of Holland Colours, employing a
mix of audits, communication and training to ensure safety is always on the agenda. In our
annual employee survey, we measure the psychological safety environment.
Terms of employment
If we look at our terms of employment and the various schemes we have, we pursue
diversity. We apply an equal pay policy in Holland Colours and do not distinguish between
men and women when considering scaling, remuneration, education, knowledge,
experience and results. We regularly benchmark our salaries against an external database
of a renowned international specialist consultant. We also have various schemes to
facilitate a good work-life balance among our people.
Recruitment
Objective selection is an important criterion in our recruitment process. We therefore
ensure that our job advertisements reflect the diversity of Holland Colours. A second way
we pursue objective selection is by establishing clear tasks and competences in the job
description. Third, we follow the STAR methodology (Situation, Task, Action, Result) during
interviews, and our selection committee is always diverse.
HOLLAND COLOURS ANNUAL REPORT 2024/2025
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FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
Developments in 2024/2025
In line with SER guidelines (Sociaal Economische Raad – the Dutch Social and Economic
Council), we have developed and agreed gender diversity targets. Currently, women make
up 25% of top and senior management in the company. The aim is to ensure that at least
35% of our top and senior management is female and at least 35% is male. Expressed in
numbers, this means that divisional management teams should also consist of at least one
man or one woman and that at least one third of the Board of Management is male or
female. We have developed an action plan to achieve these goals and strove to put it into
effect with the appointment of a new CFO in financial year 2024/2025. However, despite
extensive efforts including multiple interviews to appoint a woman to the position, this
proved to be impossible within a reasonable and realistic timeframe.
ANTI-TAKEOVER PROVISIONS AND CONTROL
The company has no specific anti-takeover provisions in place. The fact that the company
has a majority shareholder, Holland Pigments BV, in which the collective employees have a
shareholding of approximately 22.3%, guarantees that the voice of the employees is heard.
BILATERAL CONTACTS
The company fully endorses the importance of a transparent and balanced provision of
information to its shareholders and other parties. In accordance with principle 4.2 of the
Code, the company makes every effort to provide such parties with information that is
relevant to shareholders, doing so equally and simultaneously, with due consideration of
the exceptions provided for under applicable law. All this is set out in Holland Colours’
policy on bilateral contacts with shareholders. The full text of the policy is available on the
company website.
CODE OF CONDUCT
The Holland Colours’ Code of Conduct reflects our core principles on doing business in a
fair and ethical way, complying with local rules and regulations and treating our employees
and business partners with respect. It provides guidelines for preventing unfair
competition and corruption or bribery and states the conditions for a safe and healthy
work environment. To emphasize the importance of this, Holland Colours has drawn up
an Anti-Bribery and Anti-Corruption policy for all Holland Colours’ entities and employees.
Holland Colours has also set up a Compliance Policy, a Compliance governance
organization (including an integrity committee) and a Compliance Road Map for 2024/2025
and 2025/2026 to emphasize to employees the importance of integrity. This structure will
help them to take into account moral considerations around themes involving risk-
sensitive integrity issues. Typical themes include fraud, bribery and corruption,
psychological and physical safety and cybersecurity.
In addition, Holland Colours organizes employee training with respect to ethical behavior
and there is a due diligence process for all subsidiaries to screen for compliance issues,
including anti-bribery and anti-corruption policies. Holland Colours has a global
whistleblower policy, while adherence to the company core values is part of the annual
employee performance review cycle.
Through our HP Officials – as appointed by Holland Pigments BV – and other channels,
we maintain our unique employee participation model and culture.
WHISTLEBLOWER POLICY
Holland Colours has a whistleblower procedure to encourage individuals to report
suspected wrongdoings in the workplace and protect them if they do so. Our policy is
based on the Dutch Whistleblower Protection Act (Wet bescherming klokkenluiders) and the
European Whistleblowing Directive. It is reviewed by all Holland Colours’ foreign entities to
ensure compliance with applicable local and national legislation.
INSIDER DEALING POLICY
In compliance with the Dutch Financial Supervision Act, Holland Colours has adopted
internal regulations regarding investments in the company’s shares, share ownership
and preventing the abuse of insider information. Moreover, the duty of disclosure and
the relevant best practice provisions of the Corporate Governance Code have been
incorporated into these internal regulations where applicable.
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FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
These internal regulations apply to the Supervisory Board, the Board of Management, local
managers and a circle of employees, as well as to a number of advisors. The Compliance
Officer maintains a register, supervises compliance with the internal regulations and liaises
with the Netherlands Authority for the Financial Markets (AFM).
Authorization to acquire shares
The AGM of July 11, 2024 authorized the Board of Management to acquire shares in
Holland Colours for a period of 18 months, up to January 11, 2026, subject to the approval
of the Supervisory Board. The acquisition price must be between the amount equal to the
nominal value of the shares and the amount equal to 110% of the share price, whereby
the share price will be: the highest average share price on each of the five trading days
prior to the acquisition date in accordance with the Daily Official List of Euronext
Amsterdam.
Governance documents on website
All documents related to the implementation of the Dutch Corporate Governance Code
can be found in the Investor Relations section in the paragraph on Corporate Governance
on our website. This includes the profile, regulation and schedule of retirement by rotation
for the Supervisory Board, regulations of the Audit Committee and the Remuneration
Committee, the Diversity Policy and the Policy on Bilateral Contacts with shareholders, the
Remuneration Policy of the Board of Management, the Remuneration Policy of the
Supervisory Board, the company’s Articles of Association, the Whistleblower Policy, Holland
Colours’ Insider Dealing Policy and the minutes of the AGM.
Interests of Members of the Supervisory Board
and the Board of Management
At March 31, 2025 the members of the Supervisory Board and the Board of Management
owned the following shareholdings, which are held as long-term investments:
In Holland Colours NV In Holland Pigments BV
March 31, 2025
Supervisory Board
Jeanine van der Vlist 0.00% 0.00%
Gert-Hein de Heer 0.00% 0.39%
Aukje Doornbos 0.00% 0.00%
Jorrit Klaus 0.00% 0.00%
Board of Management
Coen Vinke 0.00% 0.25%
Eelco van Hamersveld 0.00% 0.16%
Martijn Klomp 0.00% 0.00%
March 31, 2024
Supervisory Board
Jeanine van der Vlist 0.00% 0.00%
Gert-Hein de Heer 0.00% 0.18%
Aukje Doornbos 0.00% 0.00%
Jorrit Klaus 0.00% 0.00%
Board of Management
Coen Vinke 0.00% 0.22%
Eelco van Hamersveld 0.00% 0.14%
Martijn Klomp 0.00% 0.00%
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FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSGOVERNANCE
SUPERVISORY BOARD
Jeanine van der Vlist-Verdel
Chair
1964, Dutch
Date of initial appointment
July 13, 2023
Term of office
2023 – 2027
Additional positions
•
Member of the Supervisory Board of
Alfen NV, Chair of the Remuneration
Committee
•
Non-executive Director of DPG Media
Group NV
•
Vice Chair of the Supervisory Board,
Chair of the Remuneration Committee,
Member Audit Committee of BDR
Thermea Group
Aukje Doornbos
Member
1979, Dutch
Date of initial appointment
July 9, 2015
Term of office
2023 – 2025 (third term)
Additional positions
•
Managing Director
Covestro Speciality Films
•
Board Member of the
Eindhoven University
Fund
Jorrit Klaus
Member
1969, Dutch
Date of initial appointment
October 26, 2017
Term of office
2021 – 2025 (second term)
Additional positions
•
Managing Director of
Synres BV
(till December 31, 2024)
Gert-Hein de Heer
Deputy Chairman
1964, Dutch
Date of initial appointment
July 12, 2018
Term of office
2022 – 2026 (second term)
Additional positions
•
Board Member of
Holland Pigments BV
•
Chair of Stichting Administratie-
kantoor ’s-Heerenhove Heerde
•
Chair of Stichting Administratie-
kantoor Aandelen Emco B.V.
•
Board Member of
Area Reiniging N.V.
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FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT
The past 12 months presented a mixed picture in terms of market
developments. The stabilization in markets that began in the previous
financial year continued, but activity levels in our core segments did not
pick up as expected. Uncertainties returned towards the end of the
financial year as fears of a global tariff war mounted.
Against this backdrop, Holland Colours grew in 2024/2025, achieving its revenue targets
for the year. Customer orders in EMEIA and the Americas were up, as post-pandemic
customer destocking finally worked its way out of the system, and the company also won
new customers. Although contribution margins were solid and profitability was up versus
the previous year and in line with budget, Holland Colours faced issues such as wage
inflation, which drove up the costs of the organization. The company also invested in
people capacity by hiring new commercial talent and technology experts who will help to
drive the growth in the years to come. The market challenges in Asia were a further factor
influencing the results.
Over time, Holland Colours needs to increase its profitability when revenues rise. This
highlights one of the major challenges the company faces going forward: to grow revenues
while stabilizing costs and so improving the relative profitability.
The Supervisory Board is of the opinion that Holland Colours performed well throughout the
financial year. The organization successfully mitigated the inflationary pressures it faced,
began implementing its new ‘Accelerate to Win’ strategy, and developed long-term scenarios
that will help it to navigate an increasingly uncertain economic and political climate globally.
This, plus the company’s strong financial position, gives us confidence that Holland Colours
will be able to face the challenges ahead.
COMPOSITION OF THE SUPERVISORY BOARD
The Supervisory Board had four members in financial year 2024/2025: Jeanine van der
Vlist-Verdel (Chair), Gert-Hein de Heer (Deputy Chair), Aukje Doornbos and Jorrit Klaus.
The third and final term of Aukje Doornbos ends in 2025. In addition to her valuable
contribution to the overall work of the Board, Aukje has led the efforts of the
Remuneration Committee to successfully update Holland Colours’ remuneration policies.
We thank her for her contribution and wish her well for the future.
At the Annual General Meeting of Shareholders, on July 10, 2025, the Supervisory Board
will propose the appointment of Mariken Schoenmakers to the Board. Mariken has
extensive business experience in finance, CSRD, ESG, IT and digitization, and holds degrees
in industrial engineering, mechanical and manufacturing engineering and is a chartered
management accountant.
The second term of Jorrit Klaus ends in 2025, and the Supervisory Board will propose his
reappointment for a third term of two years at the Annual General Meeting. Given his
knowledge and understanding of Holland Colours, his reappointment will help ensure the
continuity of the Supervisory Board.
COMPOSITION OF THE BOARD OF MANAGEMENT
There was one change in the composition of the Board of Management during financial
year 2024/2025. Geert Rutgers, who had been interim Chief Financial Officer since
February 2022, decided to leave for personal reasons. The Supervisory Board would like to
thank him for his hard work and commitment to Holland Colours.
Following an extensive search, the Supervisory Board proposed to the Extraordinary
Meeting of Shareholders on January 30, 2025, that Martijn Klomp be appointed as Chief
Financial Officer, effective February 1, 2025. Martijn was appointed with 99.99 % of the
votes in favor. He brings a wealth of international experience in finance, control and
accounting that aligns perfectly with Holland Colours’ ambitions for sustainable growth.
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FIVE-YEAR SUMMARY & INVESTOR RELATIONSESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSSUPERVISORY BOARD REPORT
BOARD MEETINGS AND CONTACTS
The Supervisory Board and Board of Management met six times in financial year
2024/2025. All members attended these meetings except in one instance, when a member
of the Supervisory Board was absent. The overall attendance rate was therefore nearly
100%. During this financial year, it was decided to add an additional meeting to the annual
cycle. This meeting, held every February, closes what has been a gap in the interaction
cycle between the Supervisory Board and Board of Management, and especially assists in
timely budget-setting for the company.
Agenda topics included the ongoing implementation of the short and long-term strategy,
the organizational redesign, including recruitment for a number of key positions, and
centralization of key support functions such as Finance, IT, HR and Legal. The Supervisory
Board and Board of Management also discussed a recovery plan for Asia, where Holland
Colours’ operations have struggled in recent years.
In a revival of an earlier tradition, one meeting between the Supervisory Board and Board
of Management was held on the premises of a division. In 2024/2025, this was at the
Holland Colours site in Richmond, Indiana. Doing this gives the Supervisory Board first-
hand insight into the business and what matters to employees. Going forward, the
Supervisory Board intends to hold one of its regular meetings at a different manufacturing
site each year.
Lastly, alongside the regular meetings with the Board of Management, the Chair of the
Supervisory Board maintains bi-weekly contact with the CEO and holds periodic meetings
with all members of the Board of Management.
DEVELOPMENTS AND STRATEGY
The focus in financial year 2024/2025 was on completing the implementation of decisions
taken previously by Holland Colours, such as the organizational redesign and
implementing the new strategy, while also preparing for the future and next steps.
Strengthening the fundamentals
The organization redesign launched in financial year 2023/2024 was largely completed in
2024/2025. The centralization of a core group of business creation roles and support
functions means Holland Colours is now a more global organization. There are uniform
ways of working in place, and more cross-divisional collaboration and knowledge sharing.
As a result, the regional divisions can focus on sales and manufacturing.
Holland Colours also continued to make progress on the optimization of its business
processes and IT. Many of the original programs are now well-established, while new ones
are starting to come on stream or are being planned.
On the strategy front, the first year of the new ‘Accelerate to Win’ strategy delivered results
that were largely in line with Holland Colours’ rolling three-year Mid-Term Business Plan,
introduced in financial year 2023/2024. The company faces increasing volatility, uncertainty
and complexity in its markets, so having an annual strategy review cycle enables it to adjust
course based on what has happened over the year. With the Mid-Term Business Plan, the
Board of Management and Supervisory Board evaluate the budget for the coming year
against the strategic goals for the coming three years. Doing this ensures better alignment
between short-term decisions and longer-term goals, as well as the needs of each division
and region.
Thinking long-term
In the last quarter of financial year 2024/2025, the Board of Management and the
Supervisory Board devoted significant time to mapping out possible future directions and
opportunities for Holland Colours. This initiative, known as Vision 2035, supplements the
‘Accelerate to Win’ strategy.
With Vision 2035, the Supervisory Board and Board of Management took a long term
outside-in look at the market changes that could have an impact on the Packaging, Building
& Construction and Coatings & Sealants markets, identifying the trends, threats and
opportunities. Three possible scenarios were constructed for each. These scenarios serve
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as a guide to making market-based business decisions, such as what products to offer,
which markets to serve and how, in line with the trends at the time.
Stimulating innovation
Regardless of how Holland Colours’ markets develop, innovation will be central to its future
success. To this end, the company started Revive Colours, a venturing initiative that is
working on making pigments from plant-based materials. Revive Colours, located at
Brightlands Chemelot Campus, a Dutch science park for green chemistry and circular
materials, represents an exciting first step in a wider strategy to use venturing to uncover
and encourage new growth directions that complement Holland Colours’ existing business
opportunities.
Underlining the focus on innovation and sustainability, the Supervisory Board is about
to propose a change to the current Long-Term Incentive plan (LTI) for the Board of
Management. This will be put up for approval at the coming Annual General Meeting of
Shareholders. A benchmark of the Board’s remuneration versus comparable companies
showed that the current LTI plan is out of line with the approach taken by comparable
companies. The current LTI is essentially a Short-Term Incentive plan with a ‘multiplier’
element to stimulate long-term value creation through innovation and sustainability.
The proposed changes would turn it into a LTI with an equity plan element, similar to
those of other companies in comparable industries.
Turnaround plan for Division Asia
The declining Chinese market demand for white PET bottles for dairy products has
weighed on the results of Division Asia in recent years. In 2024/2025, the Board of
Management developed a plan for renewed growth in South East Asia and stepped up the
discussion around the local go-to-market, product and country strategies in the region.
As part of this effort, it was decided to appoint a new head of Division Asia with a strong
background in sales, marketing and strategy in our industry. He will join Holland Colours
Asia as of September 1, 2025.
Code of Conduct and compliance
Holland Colours’ management and the Supervisory Board take the company’s Code
of Conduct very seriously. Providing our employees with a safe, honest and compliant
working environment is an absolute requirement for the Holland Colours organization.
In recent years, Holland Colours has developed new policies or tightened existing ones
related to compliance, including the Purchase Code, Whistleblower Policy and others.
The company has started to translate these policies into a living way of working by
updating existing Codes, providing training and introducing new systems to support and
manage compliance topics. The compliance road map for 2024/2025 was implemented
and the actions were completed on time and in full, including the implementation of
IntegrityLog, a secure online whistleblowing platform. There was also training on collusion
and anti-trust regulations for Sales and Procurement. A compliance road map for
2025/2026 was approved by the Supervisory Board, including a plan to review and update
the Code of Conduct and training on cybersecurity and desirable behavior.
Russia/Ukraine
At the start of the war in Ukraine in February 2022, export sales to Russia and Ukraine
represented less than 4% of total Holland Colours Group revenue. In March 2022, the
company changed its policy on doing business in the region. It halted all business
development but continued to supply existing products to existing customers under the
prevailing EU sanctions. Holland Colours closely follows sanctions regulations and ensures
compliance with all sanctions imposed. The company continues to monitor the situation
closely.
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RISK MANAGEMENT
Risk Management is an integral part of the company’s strategy and, as such, of the
discussions with the Board of Management. Of particular concern are possible impacts on
the financial results, on the organizational development and on operations. We naturally
tend to consider risks and risk management in terms of our own operational environment.
As well as financial, strategic, compliance and operational risks, the risk matrix also
emphasizes sustainability, political and fraud risks.
Risk Matrix
The Supervisory Board and Board of Management discussed and evaluated the company’s
Risk Matrix in financial year 2024/2025, adapting or updating it where needed. This is an
ongoing discussion, especially with regard to identifying new or emerging risk factors,
assessing their potential impact on the organization and identifying the steps the company
can take to minimize their potential impact. As in other years, the Board of Management
and Supervisory Board considered the company’s exposure to major accounts and clients.
Please refer to the Risk Management section in the Report of the Board of Management
for a complete overview, including risk-mitigating measures.
The financial statements for 2024/2025 included in this Annual Report have been audited.
The findings of the audit were discussed with the Audit Committee and, subsequently, with
the full Supervisory Board in the presence of the Board of Management and the external
auditor. KPMG Accountants N.V. has issued a management letter and Auditor’s Report on
the 2024/2025 financial statements and provided certain recommendations for
improvement, which are being implemented.
INTERNAL AUDIT FUNCTION
Due to the size of the company, there is no separate internal audit function. Each year, the
Supervisory Board assesses whether adequate alternative measures have been taken and
considers whether it is necessary to establish an internal audit department.
As the relevant circumstances of Holland Colours did not change in 2024/2025, the
Supervisory Board concluded that there continued to be no need to establish a separate
department, and that sufficient alternative measures had been taken. The function is
performed by the Group Controller, reporting to the CFO, focusing on selected aspects
of internal controls and risk management. Having said so, the new CFO will look further
into this matter in 2025/2026.
PERFORMANCE EVALUATION
Following a recommendation from last year’s annual evaluation of the performance of the
Supervisory Board, the Board moved to hold one of its meetings on location in 2024/2025
– at Holland Colours’ site in Richmond, Indiana. This was very successful and will be
repeated elsewhere. The Board also met the desire for permanent education, organizing
insightful sessions, including outside speakers, on the Packaging, Building & Construction
and Coatings & Sealants markets. Interaction with the members of the Board of
Management, especially the CFO and CTO, was stepped up, and an additional Supervisory
Board meeting was added to the annual cycle. As part of the annual evaluation, we also
discussed the collaboration between the Supervisory Board and the Board of
Management. Generally, this collaboration is considered to be very good. However, the
consensus was that the quality of the documentation issued by the Board of Management
prior to the meeting could be improved. The review of the overall performance of the
Supervisory Board in 2024/2025 concluded that it continued to score as ‘very good.’
ALLOCATION OF DUTIES
The allocation of duties and procedures in the Supervisory Board are set out in the
Regulations for the Supervisory Board and its committees. The profile required to become
a member of the Supervisory Board and a schedule of retirement from it are available on
Holland Colours’ website. In accordance with provision 2.1.5 of the Dutch Corporate
Governance Code, Holland Colours has a diversity policy in place (see below in the
Diversity Policy paragraph). This policy will be considered for future appointments, with
quality remaining the most important criterion.
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FINANCIAL STATEMENTS
SUPERVISORY BOARD REPORT
In accordance with provision 2.1.7 of the Dutch Corporate Governance Code, all members
of the Supervisory Board are independent of Holland Colours, except Gert-Hein de Heer,
who is the Supervisory Board member nominated by Holland Pigments BV, the majority
shareholder.
AUDIT COMMITTEE
The Audit Committee consists of Gert-Hein de Heer (Chair) and Jorrit Klaus. Throughout
financial year 2024/2025, the Audit Committee held four meetings, maintaining a 100%
attendance rate. This included an additional meeting with an introductory program for the
new CFO. In addition to the formal meetings, the Audit Committee members had several
informal interactions amongst themselves and with the CFO and other key financial
employees.
The Audit Committee addressed general financial developments within the company,
including its funding, risk assessment and tax position and policy. The external auditor,
KPMG , presented the management letter, audit plan, audit report and recommendations,
which were discussed in the presence of the Board of Management.
The company will closely monitor the developments regarding CSRD reporting
requirements. For now, the focus will be on finalizing the Double Materiality Assessment
(DMA) until the legislative bodies provide further clarity on scope and deadlines.
REMUNERATION COMMITTEE
The Remuneration Committee consists of Aukje Doornbos (Chair) and Jeanine van der Vlist.
The Remuneration Committee held two separate meetings, with an attendance rate of
100%. In addition to the scheduled meetings, there were several informal and ad hoc
meetings and calls among the Remuneration Committee members. In some instances,
these calls also included members of the Board of Management, Head of Global HR and/or
General Counsel & Company Secretary. An update on ongoing topics was provided to the
other Board members at every Supervisory Board meeting.
In addition to the key events and developments of 2024/2025 summarized above, the
Remuneration Committee advised on and monitored regular matters. These included the
selection and nomination of the new CFO and the nomination for reappointment of
Jorrit Klaus as Supervisory Board member, and the selection and nomination of
Mariken Schoenmakers as Supervisory Board member. The Remuneration Committee –
together with an executive search agency – also developed different role profiles, taking
into account the ongoing business and operational requirements, as well as the financial
position of the company.
DIVERSITY POLICY
Current Dutch guidelines and planned future law on diversity and female representation
in company boards and senior management require that at least one-third of Supervisory
Board members should be female, and one-third should be male. With a ratio of 50:50 in
the Supervisory Board in 2024/2025, Holland Colours fully adhered to these guidelines.
The Board of Management of Holland Colours adopted a new policy on diversity in
2022/2023. This involved developing and agreeing gender diversity targets and is in line
with the regulations set by the SER (the Social and Economic Council of the Netherlands).
Currently, women make up 25% of senior management in the company. The aim is to
ensure that at least 35% of our senior management is female and at least 35% is male.
Expressed in numbers, this means that divisional management teams should include at
least one man or one woman, and that at least one third of the Board of Management is
male or female.
The company has an action plan to achieve these goals and strove to put it into effect with
the appointment of a new CFO in financial year 2024/2025. However, despite extensive
efforts including multiple interviews to appoint a woman to the position, this proved to be
impossible within a reasonable and realistic timeframe. We believe Holland Colours now
has an excellent CFO in Martijn Klomp.
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For more information, see the Diversity Policy section in the Corporate Governance
chapter on page 61 of this report.
ANNUAL REPORT AND DIVIDEND PROPOSAL
The company’s Annual Report, as presented, contains the financial statements for the
2024/2025 financial year. These were audited by KPMG Accountants N.V. and an
unqualified auditor’s report was issued by them, which is included on page 128 of this
report. The Supervisory Board discussed and approved the Annual Report and the financial
statements at its meeting on May 27, 2025, in the presence of the Board of Management
and the external auditor.
Based on this discussion, we believe that the Annual Report and the financial statements
both meet the requirements of transparency and form a sound basis for the Supervisory
Board’s duty to render an account of its supervisory activities. We submit the financial
statements to the AGM and recommend that they be adopted in their present form.
Overall, 2024/2025 was a cautiously more positive year than the preceding one. The
business improved and the company made good progress on laying a solid foundation
through its ‘Accelerating to Win’ strategic focus on outpacing market growth, increasing
efficiency and creating a position in the circular value chain. That said, the effects of inflation
– particularly on raw materials prices and wages – continued to be felt, pressuring the
company’s profits. Also, while demand picked up in 2024/2025, uncertainties remain,
especially regarding the potential impact of tariffs and tariff wars on the business. Looking
forward, the general climate of political and economic instability is increasing at present
rather than decreasing.
We are therefore cautious regarding business expectations for 2025/2026. The supervisory
board proposes to pay a dividend equal to 100% of net results, which is a recognition of the
trust and support of our shareholders.
We further recommend that the Annual General Meeting of Shareholders grant full
discharge from liability to the members of the Board of Management and the Supervisory
Board for the performance of their duties in financial year 2024/2025.
The members of the Supervisory Board have signed the Financial Statements and have
accordingly discharged their statutory obligation pursuant to Section 101, subsection 2 of
Book 2 of the Dutch Civil Code.
ACKNOWLEDGEMENTS
The commitment and engagement shown by the management and employees of Holland
Colours is a real strength of the organization, and the Supervisory Board would like to put
on record our appreciation of everyone’s efforts. Once again, we saw a loyal, engaged team
that is committed to creating sustainable long-term value. This is inspiring to see, and the
Supervisory Board believe this mindset will benefit Holland Colours enormously as it looks
to secure its future business success.
Apeldoorn, May 27, 2025
Supervisory Board
Jeanine van der Vlist-Verdel, Chair
Gert-Hein de Heer, Deputy Chair
Aukje Doornbos
Jorrit Klaus
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FINANCIAL STATEMENTS
SUPERVISORY BOARD REPORT
REMUNERATION REPORT
This Remuneration Report provides a comprehensive overview of the remuneration
framework at Holland Colours and its execution in financial year 2024/25.
Holland Colours’ remuneration policy is appropriate to its identity and strategy and is
result-oriented and straightforward in its application. It also takes account of the social
context, the corporate governance structure and the interests of Holland Colours
stakeholders. Apart from the 75% of the profit share that is vested in Holland Pigments
shares, Holland Colours does not provide long-term variable remuneration in the form
of financial instruments such as shares or options. The development of Holland Colours’
share price is not an element in the remuneration policy. However, the company does
provide variable remuneration to reflect short-term and, since financial year 2022/2023,
long-term achievements.
VARIABLE REMUNERATION OUTCOMES
The remuneration policy is intended to encourage entrepreneurial behavior. At the
same time, it must also be in reasonable proportion to the remuneration of the other
management personnel. The variable remuneration is driven largely by underlying financial
parameters spread across the short-term incentive and profit-sharing scheme. For
2024/2025, the Board of Management achieved 97.5% of the Short Term Incentive targets.
The ROI of Holland Colours Group was 17.1% and the ROS 7.1%. This means that the
members of the Board of Management will receive a profit-share amounting to 1 month,
of which 75% will be received in shares of Holland Pigments BV.
OUTLOOK 2025
In 2024, the Supervisory Board, helped by an independent external advisor, conducted
a thorough review of the BoM’s remuneration policy and benchmarking process. A new
framework was created to align more closely with market standards, talent expectations
and the long-term objectives of the company. The most notable changes to the updated
remuneration policy were an update to the benchmarking peer group, simplification of the
short-term incentives, the introduction of a long-term incentive plan and enhancement of
the governance provisions to align with best practice.
The outcomes of our remuneration policies over the past year and the proposed new
policy that will be submitted for approval at the upcoming AGM are shown below. With this
improved framework in place, we are confident that the remuneration policy will continue
to be an effective tool in supporting the Board of Management’s performance and
commitment to long-term value creation.
The report contains the following:
•
Remuneration at a Glance – Management Board
•
Implementation in 2024/25 – Management Board
•
Implementation in 2024/25 – Supervisory Board
Aukje Doornbos
Chair of the Remuneration Committee
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Remuneration at a glance – Management Board
Annual base salary
1
Short-Term Incentive (STIP) Profit-sharing
Fixed annual salary, intended to attract and retain
qualified executives and which reflects their experience
and role responsibilities.
Annual cash-based incentive that rewards the
achievement of annual performance targets that align
with Holland Colours’ strategy.
Profit-sharing scheme for all employees. Payout is in cash
(25%) and Holland Pigments shares (75%).
CEO
Coen Vinke
CFO
Martijn Klomp
CTO
Eelco van
Hamersveld
CEO
Coen Vinke
CFO
Martijn Klomp
CTO
Eelco van
Hamersveld
CEO
Coen Vinke
CFO
Martijn Klomp
CTO
Eelco van
Hamersveld
2024/25 actuals Target opportunity (as % of ABS) Target opportunity (as % of ABS)
€ 333 € 27 € 208 25% 25% 25% n/a n/a n/a
Pension & Benefits Maximum opportunity (as % of ABS) Maximum opportunity (as % of ABS)
Pension and benefits that help attract and retain
qualified executives and which promote long-term saving
and retirement planning.
1
Annual base salary is calculated as gross monthly salary x 12 + 8% holiday
allowance.
2
Maximum opportunity is capped at 25% overall, although underlying
performance objectives and ESG multipliers incentivize overperformance.
Please note all amounts in this remuneration report are in thousands of
€, unless stated otherwise.
25%
2
25%
2
25%
2
12.5% 12.5% 12.5%
2024/25 Short-Term Incentive payout 2024/25 Profit-sharing payout
€ 81 € 0 € 51 € 26 € 2 € 16
KPIs
2
Weighting Assessment KPIs Score Payout
Revenue Growth 25% 27.7% Group ROIC 17.1% 5.2%
Return on Sales 25% 33.8% Group ROS 7.1% 3.1%
Project 1 25% 0.0% Profit-sharing outcome 8.3%
Project 2 25% 25.0%
The basis is the monthly gross compensation excluding
holiday allowance, and there is a performance threshold
of 3% net profit.
STI outcome 86.5%
ESG goal 1 50% 0.53
ESG goal 2 50% 0.60
LTI multiplier 1.128
STIP outcome 97.5%
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Remuneration at a glance – Management Board
(continued)
Holland Colours’ remuneration policy is designed to attract, motivate and retain qualified
top management who will enable Holland Colours to achieve its strategic and operational
goals. Their remuneration is guided by the Remuneration Committee. This advises the
Supervisory Board on the formulation of the remuneration policy and on the level of the
individual remuneration of the Board of Management. The Remuneration Policy is
evaluated and submitted for shareholder approval at least once every four years. For more
information about Holland Colours’ Remuneration Policy, please visit the corporate
website. This remuneration report, referred to in Book 2: 135b DCC, will be put before the
AGM on July 10, 2025 for an advisory vote.
INTERNAL PERSPECTIVE
The Remuneration Committee assesses the alignment of the Management Board’s pay
structures with the wider organisation by examining the consistency in remuneration
components, conducting scenario analyses and evaluating the pay ratio. The Board of
Management’s members also share their views on their remuneration. The Supervisory
Board collectively considers all input when discussing and evaluating the remuneration
policy, its implementation and future outlook.
EXTERNAL PERSPECTIVE
Talent is crucial for delivering our strategy. It is essential that our remuneration is
competitive with other companies seeking executive talent and that we consider the
international markets where we compete for this talent. The Management Board’s
remuneration is assessed frequently against a peer group to ensure its competitiveness
and to understand relevant market trends. The preferred positioning is between the 25th
and median market level on Total Direct Compensation.
SCENARIO ANALYSES
The Supervisory Board and the Remuneration Committee use scenario analyses in the
formulation and establishment of the remuneration of the Board of Management, as
stated in principles 3.1 and 3.2 of the Corporate Governance Code. The scenario analyses
are made to determine the long-term effect of the level and structure of the Board of
Management’s variable remuneration. The Remuneration Committee evaluates the total
remuneration of the Board of Management each year to ensure that the package
continues to be competitive and offers appropriate incentives. The business climate
continued to be challenging in the period 2024/2025, and this is reflected in the financial
scenarios that have been set for the remuneration of the Board of Management in
2024/2025.
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FINANCIAL STATEMENTS
REMUNERATION REPORT
ANNUAL BASE SALARY
Holland Colours benchmarks against the salaries of the company’s senior management
with the support of a third party, when applicable. We strive to offer compensation at the
median level compared to companies of similar size, international scope and complexity,
and located in the same geographical areas. The salaries of our employees are reviewed
annually and we conduct a job evaluation and rating process. In adopting this approach,
Holland Colours ensures fair pay compared to other comparable companies. The actual
annual base salary levels for the Management board in 2024/2025 were as follows:
Amounts x € 1,000 Annual base salary Progression
2024/25 2023/24 2024/25 vs 2023/24
Coen Vinke, CEO 333 299 39
Martijn Klomp, CFO 27 – 27
Eelco van Hamersveld, CTO 208 183 25
Implementation in 2024 – Management Board
(CONTINUED) TOTAL REMUNERATION
The remuneration of the members of the Board of Management in financial year 2024/25
consisted of:
•
A fixed gross annual salary including the statutory Dutch 8% holiday allowance;
•
Pension and employment benefits;
•
A Short-Term Incentive;
•
A Profit-sharing scheme.
The total remuneration of the Management Board, split by remuneration element in
2024/2025 was:
1
Included for 2 months.
The remuneration element for annual base salary is recalculated for 2023/2024 as it contained other employment benefits like pension allowance, social charges and company car for private use
income, which need to be reported under pension plan and other employment benefits.
Board of Management
Fixed
remuneration
Variable
remuneration
Total
remuneration
Year
Annual
base salary
Pension
& benefits
Short-term
incentive
Profit-sharing
scheme Total
Fixed / Variable
(in %)
Coen Vinke 2024/25 333 89 81 26 529 20%
CEO 2023/24 299 101 13 25 438 8%
Martijn Klomp
1
2024/25 27 8 – 2 37 6%
CFO 2023/24 – – – – – 0%
Eelco van Hamersveld 2024/25 208 59 51 16 334 20%
CTO 2023/24 183 65 8 15 271 9%
Total 2024/25 568 156 132 44 900
2023/24 482 166 21 40 709
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FINANCIAL STATEMENTSREMUNERATION REPORT
Implementation in 2024 – Management Board
(continued)
PENSION & BENEFITS
Holland Colours provides a pension based on a defined contribution system and other
employment benefits. Examples of such benefits are reimbursements of specific expenses
or contribution and a company car.
SHORT-TERM INCENTIVE
The Supervisory Board sets the short-term financial and non-financial targets for the Board
of Management annually. These targets are based on the overall Holland Colours Group
strategic objectives. In addition, the Supervisory Board sets long-term targets for
environmental and sustainability goals. Progress against these is assessed annually and
this influences the payment or otherwise of any incentive, via a multiplier.
•
The achievement of the financial targets is calculated on the audited financial results
of the relevant financial year. This is evaluated and assessed by the Remuneration
Committee.
•
The achievement of the non-financial targets is evaluated and assessed per topic by the
Remuneration Committee, on behalf of the Supervisory Board, for each individual Board
of Management member.
•
The achievement of ESG goals to determine the incentive multiplier is also evaluated per
topic by the Remuneration Committee on behalf of the Supervisory Board.
PROFIT-SHARING PLAN
The Board of Management also participates in the employee profit-sharing plan according
to the general profit-sharing scheme for all employees. Targets set for this are measured
annually. In 2024/25 the scores and pay out were:
Performance Assessment
Score Payout
Return on Invested Capital 17.1% 5.2%
Return on Sales 7.1% 3.1%
For 2024/2025, the Board of Management achieved 97.5% of the bonus targets.
The ROI was 17.1% and the ROS 7.1% for 2024/2025. This means that the members of
the Board of Management will receive a profit-share amounting to 1 month, of which
75% will be received in shares of Holland Pigments BV.
OTHER
Holland Colours does not provide any personal loans, guarantees or advance payments
to the members of the Board of Management. Claw-back and ultimate remedial provisions
are subject to the Dutch Civil Code. Members of the Board of Management have a
change-of-control arrangement and, in the case of an early termination of their contract,
they are covered by a severance provision of six months’ gross base salary. This is in
accordance with the Dutch Corporate Governance Code. No claw-back or severance
payments were made in financial year 2024/2025, nor has derogation or discretion been
applied.
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
REMUNERATION REPORT
Implementation in 2024 – Supervisory Board
The remuneration of the members of the Supervisory Board encourages them to perform
their role well. It does not depend on Holland Colours’ results, and nor does it include the
award of shares or options on shares. The remuneration reflects the time spent and the
responsibilities relating to their position. A remuneration benchmark is evaluated on a
regular basis to establish whether the remuneration of the members of the Supervisory
Board is still appropriate or requires adjustment. Holland Colours does not provide any
personal loans, guarantees or advance payments to the members of the Supervisory
Board.
The current remuneration policy of the Supervisory Board is as follows:
•
Annual Retainer: chairperson fee of € 45,000 and member fee of € 32,000.
Actual remuneration paid
2024/25 2023/24 2022/23 2021/22 2020/21
Jeanine van der Vlist, Chair 45 32 – – –
Gert-Hein de Heer, Deputy Chair 32 32 32 26 26
Jorrit Klaus 32 32 32 26 26
Aukje Doornbos 32 32 32 26 26
Previous Members – 13 45 63 38
Total 141 141 141 141 116
CHANGES IN THE REMUNERATION PER MEMBER OF THE BOARD OF
MANAGEMENT AND COMPANY PERFORMANCE
(amounts x € 1,000 unless stated otherwise)
Annual change Fixed and variable
2024/25
23/24 >
24/25
22/23 >
23/24
21/22 >
22/23
20/21 >
21/22
Board of Management
remuneration
Coen Vinke (CEO) 529 91 15 (30)
Martijn Klomp (CFO)
1
37 37 0 – –
Eelco van Hamersveld (CTO) 334 63 6 (25) 27
Company performance
Organic revenue growth % 9% (7%) 1% 15% (6%)
EBITDA (in € x 1,000) 11,354 10,237 10,600 16,954 15,475
EPS (in € x 1) 7 6 7 11 11
Comparison to the wider
workforce
Average remuneration
2
61 8 3 4 4
Number of employees
3
399 410 438 448 436
Pay ratio
4
8.7 0.4 (0.2) (1.4) (1.0)
1
Included for 2 months
2
Average remuneration on a full-time equivalent basis of employees (excluding the Board of Management) is calculated by
dividing the total wage costs by the average number of full-time equivalent employees (FTEs) during the year. This includes
wages, salary, taxable benefits, annual bonuses, share-based remuneration and pension benefits.
3
Number of employees of the group.
4
The internal pay ratio is based on the total annual remuneration of the CEO and the average total remuneration of all full-time
employees (excluding the Board of Management), as reported in accordance with IFRS, excluding discretionary elements.
HOLLAND COLOURS ANNUAL REPORT 2024/2025
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FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSREMUNERATION 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 14. Here we explain how employee
participation works.
Every employee of Holland Colours owns shares (at least one) in Holland Pigments BV,
a Dutch investment company. At the end of financial year 2024/2025, our employees and
pensioners held 21.9% of the Holland Pigments shares. The other 78.1% was held by the
four founding families. These are the majority shareholders, and they are committed to
actively supporting the employee participation model.
The goal of Holland Pigments and the four majority shareholders is to promote and
support the stability, continuity and independence of Holland Colours, including
effective employee participation within the Holland Colours Group. To do this, the four
main shareholders buy up any unsold Holland Pigments shares offered by employees,
creating a market for them and ensuring those shares remain within Holland Pigments.
They also sell shares to employees if there are not enough available from other employee-
shareholders to meet demand.
Holland Pigments holds the majority (50.52%) of the shares in Holland Colours.
The Holland Colours shares are traded on the Euronext Amsterdam stock exchange.
Holland Pigments is managed by a one-tier board, made up of a chairperson (rotates
regularly), four non-executive members and an executive director. The collective
shareholding of our employees is represented by one of the non-executive members, who is
employed at Holland Colours. This person is elected by the employee-shareholders every
four years.
The non-executive board member for employee-shareholders, and the executive
director of Holland Pigments, are jointly responsible for managing the employee
participation model properly. To support this, each Holland Colours site elects and
appoints its own Holland Pigments Official. This person serves as a contact between the
employee-shareholders and the Holland Pigments Board. The officials also attend Holland
Pigments’ Annual General Meeting of Shareholders. The non-executive board member for
employee-shareholders, and the executive director of Holland Pigments, visit the various
Holland Colours sites regularly to discuss employee participation.
This structure helps to underpin the independence and continuity of the company. It also
supports and enables the unique co-ownership culture that makes working at Holland
Colours unlike working anywhere else.
EMPLOYEE PARTICIPATION IN PRACTICE
HOLLAND COLOURS ANNUAL REPORT 2024/2025
78
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG REMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSEMPLOYEE PARTICIPATION
“Employee
Participation
drives our
success.”
HOLLAND COLOURS ANNUAL REPORT 2024/2025
79
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
FIVE-YEAR SUMMARY
IN MILLIONS OF EUROS, UNLESS STATED OTHERWISE
2024/25 2023/24 2022/23 2021/22 2020/21
Income statement
Revenue 112.3 103.3 111.4 110.5 96.0
Operating result before depreciaton
and amortisation (EBITDA)
11.4 10.2 10.5 17.0 15.5
Depreciation of property, plant,
equipment and intangibles
(3.4) (3.2) (3.3) (3.4) (3.1)
Operating result 7.9 7.0 7.3 13.6 12.4
Interest – – (0.1) (0.1) (0.1)
Income tax (2.2) (1.8) (1.3) (3.3) (2.8)
Result of discontinued operations – – – – –
Net result 5.9 5.2 5.9 10.2 9.6
Statement of financial position
Total assets 82.8 78.5 73.8 79.6 68.7
Total equity 64.5 61.6 58.8 57.8 50.6
Interest-bearing debt – – – – –
Working capital
1
24.1 21.4 22.6 26.1 19.6
Invested capital
2
46.4 45.1 46.3 39.8 38.1
Cash 20.6 18.5 15.8 17.0 16.6
2024/25 2023/24 2022/23 2021/22 2020/21
Statement of cash flows
Cash flow from operating activities 7.3 10.8 8.5 8.0 14.5
Investments (2.1) (4.5) (4.3) (3.3) (2.0)
Repayment lease liabilities (0.5) (0.7) (0.6) – –
Dividend (2.6) (2.9) (5.1) (4.7) (3.9)
Other financial activities
3
(0.1) 0.1 0.3 0.4 0.3
Net cash flow 2.0 2.8 (1.2) 0.3 9.0
Revenue per division
Europe 60.1 54.5 54.5 58.5 49.4
Americas (in USD) 45.4 41.3 44.2 43.7 37.9
Asia (in USD) 10.7 11.6 15.1 16.6 17.2
Ratios
Return on Sales (ROS) 7.1% 6.8% 6.6% 12.3% 12.9%
Solvency
4
77.9% 78.4% 79.7% 72.5% 73.6%
Quick Ratio 2.3 2.3 2.5 1.8 2.0
Return on Investment (ROI)
5
17.1% 15.5% 15.8% 34.2% 32.6%
Working capital in % of revenue 21.4% 20.7% 20.3% 23.6% 20.4%
Market capitalisation as at March, 31 75.3 85.2 101.5 134.6 106.7
Number of shares outstanding 860,351 860,351 860,351 860,351 860,351
1
inventories + trade accounts receivable -/- trade accounts payable
2
(year average of) equity, long term debt 3rd parties, employee benefit obligations -/- cash
3
sum of long-term financing, translation differences on cash and cash equivalents and derivatives and taxes
4
equity as % of balance sheet total
5
operating result as % of the invested capital
HOLLAND COLOURS ANNUAL REPORT 2024/2025
80
ESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONS
SUPERVISORY BOARD REPORT
INVESTOR RELATIONS
Profit Appropriation and Dividend Policy
Holland Colours intends to distribute at least 50% of its net profit in the form of dividends,
as long as the solvency ratio after distribution is at least 40%. We therefore propose to
distribute a final dividend of € 6.85 per share.
Publications
The interim results (for the period April to September) are published in October. The
full-year results (from April to March) are published by the end of May/beginning of June.
Other company information is published in the form of press releases that are also posted
on our website and social media.
Please refer to page 83 for the full financial calendar.
Liquidity Provision
Holland Colours’ shares are traded on the Euronext Amsterdam stock exchange, classified
under other shares and with a limited free float. Since March 1, 2020, Holland Colours no
longer makes use of a liquidity provision and sponsored research services. We assessed
the pros and cons of these services at the end of calendar year 2020 and decided to
continue without.
Share Ownership
The number of outstanding shares remained constant during the financial year.
Shares traded on Euronext Amsterdam 423,161
Holland Pigments BV
1
434,675
Registered shares 2,515
Total 860,351
As of March 31, 2025, the following substantial interests (>3%) were recorded in the
registers of the AFM (Netherlands Authority for the Financial Markets), based on the
Decree on the Disclosure of Major Holdings and Capital Interests in Issuing Institutions in
accordance with the Netherlands Financial Supervision Act.
A list of shareholdings in excess of 3% is also available on the AFM website.
Disclosures % Date
Holland Pigments BV
1
50.03 April 2, 2012
Lazard Frères Gestion 6.97 February 13, 2014
Gay-Lussac-Gestion 5.00 September 13, 2022
ELNED Holding BV 5.00 March 4, 2013
P. Chr. Van Leeuwen Beheer BV 5.06 August 7, 2019
Axxion S.A. 4.94 January 21, 2022
Waag & Zübert Value AG 3.84 August 24, 2016
1
Please refer to pages 14 and 78 Employee Participation. Based on our internal register, Holland Pigments BV holds 50.52% of
the shares in Holland Colours NV.
HOLLAND COLOURS ANNUAL REPORT 2024/2025
81
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
2024 2025
SHARE PRICES – HOLLAND COLOURS VERSUS ASCX
April 1, 2024 = 100
120
100
80
60
140
160
180
200
220
04 05 06 07 08 09 10 11 12 01 02 03
Holland Colours NV ASCX Index
2024 2025
Key data per share
In euros, unless stated otherwise 2024/2025 2023/2024 2022/2023 2021/2022 2020/2021
Net result 6.85 6.02 6.82 11.83 11.00
Dividend 6.85 3.01 3.41 5.91 5.50
Interim dividend – – – – 4.55
Equity 74.92 71.43 68.36 66.64 58.42
Highest share price 106 .00 124.00 164.50 199.00 125.00
Lowest share price 87.00 83.00 114.00 121.00 82.00
Number of shares outstanding 860,351 860,351 860,351 860,351 860,351
SHARE PRICES – HOLLAND COLOURS
In euros
HOLLAND COLOURS ANNUAL REPORT 2024/2025
82
ESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSFIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT
Publications (presented to AFM)
Holland Colours published the following press releases in the 2024/2025 financial year:
May 30, 2024 Publication of 2023/2024 financial statements
July 11, 2024 Resolutions adopted by the Annual General Meeting
of Shareholders
October 31, 2024 Publication of interim results 2024/2025
November 21, 2024 Announcement of new CFO
January 30, 2025 Appointment of new CFO by the Extraordinary General
Meeting of Shareholders
Key dates (provisional)
July 10, 2025 Annual General Meeting of Shareholders
October 31, 2025 Publication of interim results 2025/2026
May 28, 2026 Publication of 2025/2026 financial statements
July 9, 2026 Annual General Meeting of Shareholders
HOLLAND COLOURS ANNUAL REPORT 2024/2025
83
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSFIVE-YEAR SUMMARY & INVESTOR RELATIONS
Consolidated Income Statement 86
Consolidated Statement of Comprehensive Income 87
Consolidated Balance Sheet 88
Consolidated Statement of Changes in Equity 89
Consolidated Cash Flow Statement 90
Notes to the Consolidated Financial Statements 91
1. General 91
2. Going Concern 91
3. Key Accounting Principles 91
4. Financial Risk Management 99
5. Cash Flow Statement 100
6. Segment Information 100
7. Revenue 102
8. Personnel Expenses 102
9. Other Operating Expenses 103
10. Income Tax 103
11. Intangible Assets 105
12. Property, Plant and Equipment 106
13. Right-of-Use Assets 107
14. Deferred Tax Assets and Liabilities 108
15. Inventories 108
16. Trade and Other Receivables 109
17. Cash and Cash Equivalents 110
18. Share Capital 110
19. Reserves 110
20. Earnings per Share 110
21. Dividend 111
22. Credit Facilities 111
23. Lease Liabilities 111
24. Employee Benefits 112
25. Provisions 113
26. Trade and Other Liabilities 113
Other Disclosures 114
27. Contingent Assets and Liabilities 114
28. Related Parties 114
29. Other Disclosures 116
Company Income Statement 117
Company Balance Sheet 118
Notes to the Company Financial Statements 119
30. General 119
31. Key Accounting Principles 119
32. Revenue 119
33. Personnel Expenses 120
34. Other Operating Expenses 120
35. Income Tax 120
36. Intangible Assets 121
37. Property, Plant and Equipment 122
38. Right-of-Use Assets 123
39. Financial Assets 123
40. Equity 124
41. Credit Facilities 124
42. Lease Liabilities 125
43. Employee Benefits 125
44. Auditor’s Remuneration 126
45. Contingent Assets and Liabilities 126
46. Other Disclosures 126
Other Information 127
Statutory Provisions regarding the Appropriation of Profits 127
Independent Auditor’s Report 128
CONTENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202585
In thousands of euros Note 2024/2025 2023/2024
Revenue 7 112,347 103,285
Cost of Materials (56,779 ) (54,539 )
Contribution Margin 55,568 48,746
Personnel Expenses 8 (24,227 ) (22,253 )
Amortization and Impairments 11 (8 ) (5 )
Depreciation and Impairments 12/13 (3,420 ) (3,222 )
Other Operating Expenses 9 (19,986 ) (16,255 )
Total Operating Expenses (47,641 ) (41,735 )
Operating Result 7,927 7,011
Finance Income 274 141
Finance Expenses (91 ) (135 )
Finance Income and Expenses 183 6
Result Before Income Tax 8,110 7,017
Income Tax 10 (2,220 ) (1,835 )
Net Result for the Year 5,890 5,182
Attributable to:
Shareholders of the Company 5,890 5,182
Net Result for the Year 5,890 5,182
Earnings per Share Attributable to Shareholders of
the Company in Euros 20
Basic Earnings per Share 6.85 6.02
Diluted Earning per Share 6.85 6.02
CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 31 MARCH
The accompanying notes are an integral part of these consolidated financial statements.
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
86 HOLLAND COLOURS ANNUAL REPORT 2024/2025
In thousands of euros Note 2024/2025 2023/2024
Net Result for the Year 5,890 5,182
Items that may be reclassified subsequently
to profit or loss:
Exchange Differences on Translation of Foreign Operations 19 (303 ) 407
Other Comprehensive Income for the year, net of tax (303 ) 407
Total Comprehensive Income for the year 5,587 5,589
Attributable to:
Shareholders of the Company 5,587 5,589
Total Comprehensive Income for the Year 5,587 5,589
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
87 HOLLAND COLOURS ANNUAL REPORT 2024/2025
In thousands of euros Note 2025 2024
Non-Current Assets
Intangible Assets 11 16 1
Property, Plant and Equipment 12 23,457 24,278
Right-of-Use Assets 13 867 1,250
Deferred Tax Assets 14 1,190 1,108
Current Assets
Inventories 15 17,668 15,189
Trade and Other Receivables 16 18,337 16,851
Current Income Tax Receivables 651 1,198
Cash and Cash Equivalents 17 20,598 18,523
Total Assets 82,784 78,398
In thousands of euros Note 2025 2024
Equity
Share Capital 18 1,953 1,953
Share Premium Reserve 19 1,219 1,219
Translation Reserve 19 367 721
Other Reserves 19 60,915 57,562
Total Equity 64,454 61,455
Non-Current Liabilities
Lease Liabilities 23 381 672
Employee Benefits 24 608 458
Deferred Tax Liabilities 14 74 81
Provisions 25 – 42
Current Liabilities
Trade and Other Payables 26 16,119 14,892
Lease Liabilities 23 429 432
Current Income Tax Liabilities 296 143
Employee Benefits 24 43 223
Other Provisions 25 380 –
Total Equity and Liabilities 82,784 78,398
CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
88 HOLLAND COLOURS ANNUAL REPORT 2024/2025
In thousands of euros
Share
Capital
Share
Premium
Reserve
Translation
Reserve
Other
Reserves
Total
Equity
As at 31 March 2023 1,953 1,219 506 55,135 58,813
Net Result for the Year – – – 5,182 5,182
Other Comprehensive Income – – 407 – 407
Total Comprehensive Income – – 407 5,182 5,589
Transfer Translation Reserve – – (192 ) 179 (13 )
Dividends Paid – – – (2,934 ) (2,934 )
As at 31 March 2024 1,953 1,219 721 57,562 61,455
Net Result for the Year – – – 5,890 5,890
Other Comprehensive Income – – (354 ) 51 (303 )
Total Comprehensive Income – – (354 ) 5,941 5,587
Dividends Paid – – – (2,588 ) (2,588 )
As at 31 March 2025 1,953 1,219 367 60,915 64,454
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
89 HOLLAND COLOURS ANNUAL REPORT 2024/2025
In thousands of euros Note 2024/2025 2023/2024
Cash Flow from Investing Activities
Purchases Intangible Assets 11 (22 ) (1 )
Proceeds Sale Property, Plant and Equipment 148 16
Purchases Property, Plant and Equipment 12 (2,200 ) (4,469 )
Net Cash from Investing Activities (2,074 ) (4,454 )
Cash Flow from Financing Activities
Dividends Paid 21 (2,588 ) (2,934 )
Lease Liabilities Repayments 23 (465 ) (665 )
Net Cash from Financing Activities (3,053 ) (3,599 )
Cash and Cash Equivalents as at 1 April 18,523 15,757
Exchange Rate and Translation Differences
on Cash and Cash Equivalents (129 ) 89
Cash and Cash Equivalents as at 31 March 17 20,598 18,523
In thousands of euros Note 2024/2025 2023/2024
Operating Result 7,927 7,011
Adjustments for:
•
Amortization/Impairments Intangible
Assets 11 8 5
•
Depreciation/Impairments Property,
Plant and Equipment 12 2,866 2,558
•
Depreciation Right-of-Use Assets 13 554 664
•
Gains/Losses on Sale Property, Plant and
Equipment (26 ) –
•
Changes in Provisions 24/25 318 (323 )
•
Changes in Working Capital:
•
Change in inventories (2,642 ) 497
•
Change in receivables (1,691 ) (80 )
•
Change in Liabilities 1,446 2,022
•
Exchange Rate Differences – (36 )
Cash Flow from Operating Activities 8,760 12,318
Income Tax Paid (1,612 ) (1,594 )
Finance Income 274 141
Finance Expense (91 ) (135 )
Net Cash from Operating Activities 7,331 10,730
CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 MARCH
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTSESG
90 HOLLAND COLOURS ANNUAL REPORT 2024/2025
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
IN THOUSANDS OF EUROS
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202591
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202592
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202593
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
PRINCIPLES FOR THE VALUATION OF ASSETS
AND LIABILITIES
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202594
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202595
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202596
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202597
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202598
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/202599
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/2025100
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/2025101
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
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FINANCIAL STATEMENTSESG
102 HOLLAND COLOURS ANNUAL REPORT 2024/2025
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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FINANCIAL STATEMENTSESG
103 HOLLAND COLOURS ANNUAL REPORT 2024/2025
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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FINANCIAL STATEMENTSESG
104 HOLLAND COLOURS ANNUAL REPORT 2024/2025
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORT EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
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FINANCIAL STATEMENTSESG
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
13. Right-of-Use Assets
The table below shows the movement of the Right-of-Use Assets. These assets consist of
capitalized lease agreements.
Land and
Buildings
Machinery
and
Equipment Vehicles Total
As at 31 March 2023
Carrying Amount 174 175 625 974
Additions 236 – 134 370
Remeasurements 431 – 134 565
Depreciation (196) (70) (399) (665)
Exchange Rate Differences 4 1 1 6
Changes 475 (69) (130) 276
As at 31 March 2024
Carrying Amount 649 106 495 1,250
Additions 245 4 401 650
Remeasurements (388) (9) (71) (468)
Depreciation (177) (53) (324) (554)
Transfer (6) – – (6)
Exchange Rate Differences (7) – 2 (5)
Changes (331) (58) 8 (383)
As at 31 March 2025
Carrying Amount 316 48 503 867
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
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REMUNERATION OF KEY OFFICERS OF THE GROUP
The key officers are the members of the Board of Management (which also includes the
interim CFO position).
OTHER DISCLOSURES
IN THOUSANDS OF EUROS
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OTHER DISCLOSURES
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115 HOLLAND COLOURS ANNUAL REPORT 2024/2025
29. Other Disclosures
EMPLOYEE NUMBERS
During the 2024/2025 financial year, the company employed an average of 399 FTEs
(2023/2024: 410 FTEs), of which 137 FTEs (2023/2024: 131 FTEs) were employed in the
Netherlands.
OTHER DISCLOSURES
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
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NOTES TO THE COMPANY FINANCIAL STATEMENTS
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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
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FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/2025127
We designed our audit procedures in the context of our
audit of the financial statements as a whole and in forming
our opinion thereon. The information in respect of going
concern, fraud and non-compliance with laws and
regulations, climate and the key audit matters was
addressed in this context, and we do not provide a
separate opinion or conclusion on these matters.
We believe the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
The consolidated financial statements comprise:
1 the consolidated balance sheet as at 31 March 2025;
2 the following consolidated statements for the year
ended 31 March 2025: the income statement, the
statement of comprehensive income, the statement
of changes in equity and cash flow statement; and
3 the notes comprising material accounting policy
information and other explanatory information.
The company financial statements comprise:
1 the company balance sheet as at 31 March 2025;
2 the company income statement for the year ended
31 March 2025; and
3 the notes comprising a summary of the accounting
policies and other explanatory information.
Basis for our opinion
We conducted our audit in accordance with Dutch
law, including the Dutch Standards on Auditing. Our
responsibilities under those standards are further
described in the ‘Our responsibilities for the audit
of the financial statements’ section of our report.
We are independent of Holland Colours N.V. in
accordance with the Verordening inzake de
onafhankelijkheid van accountants bij assurance-
opdrachten (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).
OTHER INFORMATION
Independent Auditor’s Report
To: the General Meeting of Shareholders and the
Supervisory Board of Holland Colours N.V.
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS 2024-2025 INCLUDED IN THE
ANNUAL REPORT
Our opinion
In our opinion:
•
the accompanying consolidated financial statements
give a true and fair view of the financial position of
Holland Colours N.V. as at 31 March 2025 and of its
result and its cash flows for the year then ended, in
accordance with IFRS Accounting Standards as
endorsed by the European Union (EU-IFRS) and with
Part 9 of Book 2 of the Dutch Civil Code.
•
the accompanying company financial statements give
a true and fair view of the financial position of Holland
Colours N.V. as at 31 March 2025 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 financial statements 2024-2025 of
Holland Colours N.V. (the ‘Company’) based in Apeldoorn.
The financial statements include the consolidated financial
statements and the company financial statements.
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OTHER INFORMATION
Information in support of our opinion
Summary
Materiality
•
Materiality of EUR 1 million
•
1% of revenue
Group audit
•
Performed substantive procedures for 82% of total assets
•
Performed substantive procedures for 97% of revenue
Risk of material misstatements related to Fraud, NOCLAR, Going concern and Climate related risks
•
Fraud risks: presumed risk of management override of controls and presumed risk of revenue recognition are
identified and further described in the section ‘Audit response to the risk of fraud and non-compliance with laws and
regulations’.
•
Non-compliance with laws and regulations (NOCLAR) risks: no reportable risk of material misstatements related to
NOCLAR risks identified.
•
Going concern risks: no going concern risks identified.
•
Climate-related risks: we have considered the impact of climate-related risks on the financial statements and
described our approach and observations in the section ‘Audit response to climate-related risks’.
Key audit matters
•
Revenue recognition
Materiality
Based on our professional judgement we determined
the materiality for the financial statements as a whole at
EUR 1 million (2023-2024: EUR 1 million). The materiality
is determined with reference to revenue (rounded at 1%).
We consider revenue as the most appropriate benchmark,
because revenue is an important metric for users of the
financial statements. We have also taken into account
misstatements and/or possible misstatements that in
our opinion are material for the users of the financial
statements for qualitative reasons.
We agreed with the Supervisory Board that misstatements
identified during our audit in excess of EUR 40,000 would
be reported to them, as well as smaller misstatements
that in our view must be reported on qualitative grounds.
Scope of the group audit
Holland Colours N.V. is at the head of a group of
components (the ‘Group’). The financial information of this
Group is included in the financial statements of Holland
Colours N.V.
This year, we applied the revised group auditing standard
in our audit of the financial statements. The revised
standard emphasizes the role and responsibilities of the
group auditor. The revised standard contains new
requirements for the identification and classification of
components, scoping, and the design and performance
of audit procedures across the group. As a result, we
determine coverage differently and comparisons to
prior-period coverage figures are not meaningful.
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OTHER INFORMATION
We performed risk assessment procedures throughout
our audit to determine which of the Group’s components
are likely to include risks of material misstatement to the
Group financial statements. To appropriately respond to
those assessed risks, we planned and performed further
audit procedures, either at component level or centrally.
We identified five components associated with a risk of
material misstatement. For four out of these five
components we involved component auditors. We as
group auditor audited the remaining component. We set
component performance materiality levels considering the
component’s size and risk profile.
We have performed substantive procedures for 97% of
Group revenue and 82% of Group total assets. At group
level, we assessed the aggregation risk in the remaining
financial information and concluded that there is less than
reasonable possibility of a material misstatement.
In supervising and directing our component auditors, we:
•
Held risk assessment discussions with the component
auditors to obtain their input and identify matters
relevant to the group audit.
•
Issued group audit instructions to component auditors
on the scope, nature and timing of their work, and
received written communication about the results of
the work they performed.
•
Held meetings with all component auditors in person
and/or virtually to discuss relevant developments,
understand and evaluate their work and attend
meetings with local management.
•
Inspected the work performed by four component
auditors and evaluated the appropriateness of audit
procedures performed and conclusions drawn from
the audit evidence obtained, and the relation between
communicated findings and work performed. In our
inspection we mainly focused on key audit matters and
significant risks.
We consider that the scope of our group audit forms
an appropriate basis for our audit opinion. Through
performing the procedures mentioned above we obtained
sufficient and appropriate audit evidence about the
Group’s financial information to provide an opinion on
the financial statements as a whole.
Audit response to the risk of fraud and non-compliance with
laws and regulations
In chapter ‘Risk management’ of the Report of the Board
of Management, the Board of Management describes
its procedures in respect of the risk of fraud and non-
compliance with laws and regulations and the Supervisory
Board reflects on this.
As part of our audit, we have gained insights into the
Company and its business environment and the
Company’s risk management in relation to fraud and
non-compliance. Our procedures included, among other
things, assessing the Company’s Code of conduct,
Whistleblowing hotline, Anti-bribery and corruption
policy and Group compliance policies.
Furthermore, we performed relevant inquiries with the
Board of Management, Supervisory Board and other
relevant functions, such as group finance and the internal
legal counsel and included correspondence with relevant
authorities and regulators in our evaluation. We have also
incorporated elements of unpredictability in our audit,
such as performing procedures on declarations of the
Board of Management.
As a result from our risk assessment, we identified the
following laws and regulations as those most likely to have
a material effect on the financial statements in case of
non-compliance:
•
trade laws (reflecting the Company’s international
operating character);
•
health and safety law (reflecting the nature of the
Company’s production and distribution processes);
•
consumer product law, including product safety and
product liability claims (reflecting the nature of the
Company’s diverse product base); and
•
environmental law (reflecting environmental impact
restrictions, waste and contamination related to the
Company’s production and distribution processes).
Our procedures did not result in the identification of a
reportable risk of material misstatement in respect of
non-compliance with laws and regulations.
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OTHER INFORMATION
Based on the above and on the auditing standards, we
identified the following fraud risks that are relevant to our
audit, including the relevant presumed risks laid down in
the auditing standards, and responded as follows:
MANAGEMENT OVERRIDE OF CONTROLS
(A PRESUMED RISK)
Risk:
•
Management is in a unique position to manipulate
accounting records and prepare fraudulent financial
statements by overriding controls that otherwise
appear to be operating effectively.
•
The key opportunities for management manipulation
are within the manual elements of the control
environment, such as journal entries.
Responses:
•
We evaluated the design and the implementation
of internal controls that mitigate fraud risks, such
as processes related to journal entries.
•
As part of the fraud risk assessment, we performed
a data analysis of the journal entries population to
determine if high-risk criteria for testing applies and
evaluated relevant estimates and judgments for bias
by the Company’s management.
•
We identified and selected adjustments made at the
end of the reporting period for testing.
REVENUE RECOGNITION (A PRESUMED RISK)
Risk:
Our risk description and procedures performed to
address the fraud risk related to revenue recognition
are described in the key audit matter section.
Audit response to going concern
The Board of Management has performed its going
concern assessment and has not identified any going
concern risks. To assess the Board of Management’s
assessment, we have performed, inter alia, the following
procedures:
•
we considered whether the Board of Management’s
assessment of the going concern risks includes all
relevant information of which we are aware as a result
of our audit;
•
we analyzed the Company’s financial position as at
year-end and compared it to the previous financial year
in terms of indicators that could identify going concern
risks;
•
we inquired with the Board of Management on the key
assumptions and principles underlying the Board of
Management’s assessment of the going concern risks.
The outcome of our risk assessment procedures did not
give reason to perform additional audit procedures on
management’s going concern assessment.
Audit response to climate-related risks
The Company has set out its ambitions relating to climate
change in the chapter ‘Environmental Social and
Governance’ and in the section ‘Sustainability’ in chapter
‘Risk Management’ of the Report of the Board of
Management.
The Board of Management has assessed, against the
background of the Company’s business and operations at
a high-level how climate-related risks and opportunities
and the Company’s own ambitions could have a significant
impact on its business or could impose the need to adapt
its strategy and operations. The Board of Management
has considered the impact of transition risks, such as the
transition towards applying more sustainable materials
and gaining deeper insights into the sustainability needs
of the Company’s clients, on the financial statements in
accordance with the applicable financial reporting
framework.
The Board of Management prepared the financial
statements, including considering whether the
implications from climate-related risks and ambitions have
been appropriately accounted for and disclosed. As part
of our audit, we performed a risk assessment of the
impact of climate-related risks and ambitions made by the
Company in respect of climate change on the financial
statements and our audit approach.
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OTHER INFORMATION
In doing this we performed the following:
•
Understanding the Board of Management’s processes:
•
we made inquiries to understand Board of
Management’s assessment, against the background
of the Company’s business and operations of the
potential impact of climate-related risks and
opportunities on the Company’s annual report and
financial statements and the Company’s
preparedness for this;
•
we have inspected minutes and documents relevant
for assessing the climate-related risks in the audit;
•
we obtained an understanding of relevant
sustainability themes and issues, considering the
operations and characteristics of the Company.
•
We have evaluated climate-related fraud risk factors,
such as the fact that management’s remuneration is
dependent on both financial and non-financial
sustainability targets, such as CO
2
reductions and
compliance with laws and regulations.
•
Used KPMG climate change subject matter experts, to
support in understanding how climate-related risks and
opportunities may affect the entity, in order to
understand (potential) implications on its accounting in
the current year’s financial statements.
Based on our risk assessment procedures, we did not
identify a risk of material misstatement specific to
climate-related risks, including on the valuation of
non-current assets, and thus no further audit response
was considered necessary.
Based on the procedures performed above, we found
climate-related risks have no material impact on the
current financial statements and no material impact on
our key audit matter.
Furthermore, we have read the ‘Other information’, with
respect to climate-related risks as included in the annual
report and considered whether such information contains
material inconsistencies with the financial statements or
our knowledge obtained through the audit, in particular as
described above and our knowledge obtained otherwise.
Our key audit matter
Key audit matters are those matters that, in our
professional judgement, were of most significance in our
audit of the financial statements. We have communicated
the key audit matter to the Supervisory Board. The key
audit matter is not a comprehensive reflection of all
matters discussed.
Revenue recognition
Description
We identified a fraud risk in relation to the recognition of revenue. The presumed risk inherently includes the fraud risk
that management deliberately overstates revenue as management may feel pressure to achieve planned results for the
current year. We focused our presumed fraud risk on non-routine entries that increase revenue. As this is a significant
risk for which special attention from the auditor is needed, we considered this as a key audit matter.
Our response
Our procedures primarily consisted of:
•
we evaluated the design and the implementation of relevant internal controls that mitigate fraud risks, such as
controls related to revenue recognition through journal entries;
•
we performed a data analysis matching the recorded revenue to the delivery notes and the order confirmations.
For selected entries increasing revenue outside the routine operational flow, we performed additional procedures
including vouching to source documentation;
•
we tested the accuracy of the revenue related disclosures in the financial statements.
Our observation
Our audit procedures did not reveal indications and/or reasonable suspicion of fraudulent revenue recognition.
The results of our procedures performed regarding fraudulent revenue recognition due to fictitious revenue are
satisfactory and the related disclosures (note 7) are adequate.
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OTHER INFORMATION
REPORT ON THE OTHER INFORMATION INCLUDED
IN THE ANNUAL REPORT
In addition to the financial statements and our auditor’s
report thereon, the annual report contains other
information.
Based on the following procedures performed, we
conclude that the other information:
•
is consistent with the financial statements and does not
contain material misstatements; and
•
contains the information as required by Part 9 of Book
2 of the Dutch Civil Code for the management report
and other information.
We have read the other information. Based on our
knowledge and understanding obtained through our audit
of the financial statements or otherwise, we have
considered whether the other information contains
material misstatements.
By performing these procedures, we comply with the
requirements of Part 9 of Book 2 of the Dutch Civil Code
and the Dutch Standard 720. The scope of the procedures
performed is less than the scope of those performed in
our audit of the financial statements.
The Board of Management is responsible for the
preparation of the other information, including the
information as required by Part 9 of Book 2 of the
Dutch Civil Code.
REPORT ON OTHER LEGAL AND REGULATORY
REQUIREMENTS AND ESEF
Engagement
We were initially appointed by the General Meeting of
Shareholders as auditor of Holland Colours N.V. on
13 July 2023, for the audit of the year 2023-2024 and have
operated as statutory auditor ever since that financial
year.
No prohibited non-audit services
We have not provided prohibited non-audit services as
referred to in Article 5(1) of the EU Regulation on specific
requirements regarding statutory audits of public-interest
entities.
European Single Electronic Format (ESEF)
Holland Colours N.V. has prepared its 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 (partly) 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 one
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 ‘Assurance-opdrachten 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 among others:
•
obtaining an understanding of the entity’s financial
reporting process, including the preparation of the
reporting package;
•
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
document and the XBRL extension taxonomy files
have been prepared in accordance with the
technical specifications as included in the RTS on
ESEF;
•
examining the information related to the
consolidated financial statements in the reporting
package to determine whether all required mark-
ups have been applied and whether these are in
accordance with the RTS on ESEF.
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HOLLAND COLOURS ANNUAL REPORT 2024/2025133
OTHER INFORMATION
DESCRIPTION OF RESPONSIBILITIES REGARDING
THE FINANCIAL STATEMENTS
Responsibilities of the Board of Management and the
Supervisory Board for the financial statements
The Board of Management is responsible for the
preparation and fair presentation of the financial
statements in accordance with EU-IFRS and Part 9 of Book
2 of the Dutch Civil Code. Furthermore, the Board of
Management is responsible for such internal control as
management determines is necessary to enable the
preparation of the financial statements that are free from
material misstatement, whether due to fraud or error. In
that respect the Board of Management, under supervision
of the Supervisory Board, is responsible for the prevention
and detection of fraud and non-compliance with laws and
regulations, including determining measures to resolve
the consequences of it and to prevent recurrence.
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 events and circumstances
that may cast significant doubt on the Company’s ability to
continue as a going concern in the financial statements.
The Supervisory Board is responsible for overseeing the
Company’s financial reporting process.
Our responsibilities for the audit of the financial
statements
Our objective is to plan and perform the audit
engagement in a manner that allows us to obtain sufficient
and appropriate audit evidence for our opinion.
Our audit has been performed with a high, but not
absolute, level of assurance, which means we may not
detect all material errors and fraud during our audit.
Misstatements can arise from fraud or error and 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 these
financial statements. The materiality affects the nature,
timing and extent of our audit procedures and the
evaluation of the effect of identified misstatements on our
opinion.
A further description of our responsibilities for the audit of
the financial statements is included in the appendix of this
auditor’s report. This description forms part of our
auditor’s report.
Groningen, 27 May 2025
KPMG Accountants N.V.
R.W. van Dijk RA
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/2025134
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 findings in internal control that we identify
during our audit. In this respect we also submit an
additional report to the audit committee in accordance
with Article 11 of the EU Regulation on specific
requirements regarding statutory audits 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 safeguards.
From the matters communicated with the Supervisory
Board, we determine the key audit matters: those matters
that were of most significance in the audit of the financial
statements. 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.
•
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,
whether a material uncertainty exists related to events
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. However, future events or conditions may cause
a 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.
We are responsible for planning and performing the
group audit to obtain sufficient appropriate audit evidence
regarding the financial information of the entities or
business units within the group as a basis for forming
an opinion on the financial statements. We are also
responsible for the direction, supervision and review of
the audit work performed for purposes of the group audit.
We bear the full responsibility for the auditor’s report.
OTHER INFORMATION
Appendix
DESCRIPTION OF OUR 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
included among others:
•
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 the risk resulting from error, as fraud
may involve collusion, forgery, intentional omissions,
misrepresentations, or the 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;
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/2025135
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 VENTURES BV
Halvemaanweg 1
7323 RW Apeldoorn
P.O. Box 720
7300 AS Apeldoorn
The Netherlands
T (31) 55-368 0700
E info@hollandcolours.com
Chamber of Commerce 96571926
REVIVE COLOURS BV
Halvemaanweg 1
7323 RW Apeldoorn
P.O. Box 720
7300 AS Apeldoorn
The Netherlands
T (31) 55-368 0700
E info@hollandcolours.com
Chamber of Commerce 867707094
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.
100 King Street West, Suite 1600
Toronto, Canada M5X 1G5
P.O. Box 62034
North York RPO Victoria Terri,
ON M4A 2WI
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) 31-849 3939
E surabaya@hollandcolours.com
FIVE-YEAR SUMMARY & INVESTOR RELATIONSSUPERVISORY BOARD REPORTESG EMPLOYEE PARTICIPATIONREMUNERATION REPORTGOVERNANCEMANAGEMENT BOARD REPORTABOUT
INTRODUCTION BY THE CEO
FINANCIAL STATEMENTS
HOLLAND COLOURS ANNUAL REPORT 2024/2025136
NOTES TO THECONSOLIDATED FINANCIAL STATEMENTS
137
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