Agrifirm Annual_report_2024_DefEN

2024 Annual Report

A responsible food chain for future generations

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While every effort has been made to ensure the accuracy and reliability of the translation, discrepancies may exist between the translated content and the original Dutch text. In the event of any inconsistencies or discrepancies, the Dutch version shall prevail. This translation should not be considered a legally binding document. Readers are advised to refer to the original Dutch version of the annual report for precise information and understanding.

Royal Agrifirm Group is a cooperative of 8,000 Dutch livestock farmers and growers who combined their purchasing power 120 years ago. We supply products for animal feed, crop and cultivation improvement in fifteen countries. With our 3,000+ employees, we also guide and advise agricultural entrepreneurs with regard to new cultivation methods, innovative technologies and the consequences of laws and regulations.

The food chain is faced with the major global challenge of feeding ten billion people in a sustainable way in thirty years’ time. Together with our members and customers, we make an essential contribution to this on a daily basis and are shaping a responsible food chain for future generations.

About Royal Agrifirm Group

Agrifirm supplies high-quality animal feed, premixes, concentrates, mineral mixtures, additives and advice for the animal feed industry and products and advice for crop and cultivation improvement.

Together with our members and customers, we create measurable, relevant and sustainable value on farms on a daily basis. We combine years of scientific research with local, specific knowledge of the agricultural sector.

Vision

A responsible food chain for future generations.

Strategy

Agrifirm’s strategy in 2024 was based on six pillars. These pillars represent the contributions that Agrifirm makes to a good and fair income for livestock farmers and growers, to reducing the environmental impact of the food chain and increasingly to retail chains.

We have defined six strategic pillars in the food chain based on our activities, trends and challenges:

Mission

To provide measurable, relevant and sustainable value on farms, in fields and for the food industry.

Dairy

Agrifirm worldwide

The route to a responsible food chain for future generations is a long one that requires special knowledge and investments from livestock farmers and growers. Agrifirm supports customers worldwide with new products and technologies that help them make all the difference. In doing so, we always seek and find a balance between ecology and economy, between care for the environment and nature and a healthy return for livestock farmers and growers.

Organisational structure

Sustainability

Responsible sourcing

(% responsibly sourced raw materials for animal feed)

2023: 78%

Responsible operations

% net reduction in CO2 emissions due to our direct and indirect energy consumption compared to reference year 2019

2023: 69%

Responsible solutions

(% of the margin that demonstrably comes from responsible solutions)

2023: 5%

+4%

Operational

Sales volume (x 1,000 tonnes)

> Compound feed: 2,860

> Co-products: 790

> Premixes and concentrates: 247

4,375 thousand tonnes of sales volume

3,077 employees

±8,000 members

Sales volume (x 1,000 tonnes)

> Cereals, potatoes, onions and carrots: 192

> Artificial fertilisers: 314

(in million euros)

> Crop protection products:

> Retail (incl. Welkoop):

countries

Introduction Management report

Dear members, colleagues and supply chain partners,

As the new CEO of Agrifirm, I am proud to present the 2024 annual report for Royal Agrifirm Group. As I was only appointed on 1 December 2024, I look back on these twelve months with restraint and modesty. In this initial period, I have been able to meet many of our passionate colleagues and members. This strengthens my confidence that Agrifirm will succeed in its task.

We are in a period in which the agricultural sector, and therefore also our cooperative, finds itself at the centre of political-administrative and social discussions. New laws and regulations are following each other in quick succession and placing high demands on our members and the sector. As the agricultural sector, however, we are expected to continue to provide the growing world population with access to sufficient and healthy food in a responsible manner. Agrifirm is happy to contribute to this on a daily basis with its expert knowledge. There is a clear task for the cooperative and its members to continue to stand out by developing and supplying innovative feed solutions, seeds, fertilisers and crop protection products.

Returns now and investments for later

There’s no need to beat about the bush: 2024 was a disappointing year for Agrifirm financially. We were forced to implement a negative revaluation on some foreign operations. Although this revaluation effect leads to a negative result for 2024, it gives us a stronger starting position for the future. As a result, we cannot pay out any member dividends and member discounts for the past year. Highly contrary to custom, and not a message that you like to tell members. They deserve to be rewarded for their contribution to society and the cooperative. One partial explanation for this financial result can be found in the turbulent period that the agricultural sector is going through. However, we also need to take an honest look at ourselves and improve our performance wherever possible. There are sufficient bright spots, both small and large, to give us confidence that we will succeed.

For example, there are business units that performed well in 2024 or where the upward trend was regained through decisive intervention. After a difficult period, we are once again seeing growth in a number of Agrifirm’s foreign activities. We are ready to seize any opportunities

that arise. With the sector, Agrifirm will have to find a new balance between returns now and investing in healthy, sustainable business operations later. This requires a healthy form of fighting spirit that relies on the capacity of colleagues, the broad knowledge of the agricultural sector, entrepreneurship and the many Agrifirm products and services that have proven their added value.

Leading the way

In recent years, we have taken great steps forward with our feed concepts, creating the conditions for a responsible food chain. In line with our vision and mission, we are increasingly able to make a sustainable difference. However, we can see that the market is not yet ready as a whole. That not all parties in the food chain are able or willing to pay a fair price for sustainable products. Although a great deal is changing for the better, these kinds of transitions take time. It is important that we do both: continue to supply products today that help members and customers to earn a fair income and continue to innovate for the necessary transition of tomorrow.

New strategic direction

In the months ahead, we will work hard to develop a detailed strategy for Agrifirm as a whole and its business units. In addition to determining the direction, there will be a strong focus on the implementation of the plans. After all, a strategy is only as good as the quality of its

Farewell to Dick Hordijk

On 31 December 2024, Agrifirm Group BV said farewell to CEO Dick Hordijk after eight years. We would like to thank Dick for his innovation and leadership in times in which the agricultural sector was faced with major, complex issues, from the nitrogen debate to the energy crisis and fluctuating raw material prices. With determination and decisiveness, he steered Agrifirm past these obstacles. He stimulated dialogue with members, employees and partners and helped to ensure that Agrifirm will continue to play a solid role in creating the responsible food chain of the future.

execution. Cost leadership takes centre stage in the plans. In order to implement a profitable and winning strategy, Agrifirm must be able to operate from a competitive starting position.

Listen, then take action

The agricultural sector in the Netherlands and surrounding countries is shrinking. This presents us with new challenges. It is important for Agrifirm to respond to this development proactively in order to strengthen our position in the Netherlands and beyond, thus making the cooperative more future-proof.

Agrifirm is willing and able to make a difference here by listening carefully to what members and customers ask of us and helping them to do business in a rapidly changing market. Sometimes this means that we will

need to sail closer to the wind. Focus even more on the result and putting the customer first: saying what we do and doing what we say.

Finally, I would like to thank employees, partners and other business relations for their collaboration with Agrifirm and their continued trust in the cooperative. I hope to meet many of you in the coming months. Please let me know your thoughts on how we can make Agrifirm and the sector even more successful and ready for the future.

Piet Hilarides

CEO Agrifirm Group BV

Financial results and explanatory notes

Financial key figures

The figures are explained in more detail on page 15 (all amounts are in millions of euros unless indicated otherwise)

Other key figures

The figures are explained in more detail on page 15 (all amounts are in millions of euros unless indicated otherwise)

Sustainability

No comparative figures available. Reporting had not yet started in the year in question.

Explanation of the financial results

The turnover of Royal Agrifirm Group fell by 15.9% compared to 2023, totalling €2,051 million. The total operating expenses fell by 15.4%, slightly less than the turnover. The total operating expenses include a one-off write-down on the assets of €27 million. The operating result is -€21 million and is strongly negatively influenced as a result of this write-down.

Revenue

Total net sales fell by 15.9% in 2024, mainly due to a 10.1% drop in the volume of animal feed. This decrease in feed volume in the Netherlands is mainly due to business closures by members. Abroad, the volume decreased as a result of quality and production problems. These problems have now largely been resolved. Sales of crop protection products increased by 5.2% and retail sales increased by 2.4%.

In 2024, the property of our location in Zwolle was sold. The result of this sale is included in other operating income.

Operating expenses

> Due to the sharp drop in volume, it is also necessary for costs to reduce significantly.

> The cost of raw materials fell by 21% in 2024 due to lower sales volumes and an average lower purchase price. Transport and energy costs have fallen in line with the decrease in volume.

> The wage costs are at the same level as in 2023. The increase in salaries was therefore offset by a 3.3% drop in FTE (106 FTE). The other costs have also fallen sharply.

> Deteriorating prospects in Belgium, Poland and South America necessitated a one-off write-down on the assets of €26.9 million.

Operating result

The final operating result was a loss of €20.7 million compared to a profit of €2.3 million in 2023. Normalised for the one-off write-down and the positive result of the sale of real estate, the operating result is €-1.7 million (€-12.0 million in 2023). This is an improvement of €10.7 million. Despite the improvement compared to last year, the operating result is significantly below the 2024 target. Losses in Belgium and Poland in particular contributed to this development.

Member discount

Due to the negative group result after taxes, no member discounts and member dividends will be paid out for 2024. The member discount on the result of the member company in 2023 was €7.3 million. No member dividends were paid out in 2023 either.

Equity

Despite the €26.9 million one-off write-down on the assets, group equity as a % of total equity remains at 55%. The balance of cash and cash equivalents increased by €26 million to €169.8 million. Just like last year, Agrifirm has no long-term bank debts. This allows Agrifirm to maintain its strong balance sheet.

In view of the development of the operating result, we need to focus strongly on liquidity. This will take place by further improving working capital, being cautious with investments and reducing costs. In addition, the portfolios of investment and innovation projects will focus more on the short term. This means faster payback times and a lower risk appetite.

Prospects

In the Netherlands, animal numbers are expected to continue to decline. Although the transition to climatefriendly products for arable farming and bulb cultivation will impact Agrifirm’s volume too, it also offers new opportunities for growth in integrated cultivation advice.

The impact of this over the next 12-15 months is difficult to estimate.

In order to grow market share in animal feed in the Netherlands and to keep the factories sufficiently occupied, there may be some pressure on the margins. In order to compensate for the impact of lower volumes and the possible pressure on margins, the costs will be reduced still further. In the meantime, we continue to stand out by providing the best advice.

We are also continuing to invest in solutions for our arable and bulb-farming members to help them in the transition to climate-friendly products.

In the non-member-related business, Specialties and Welkoop are expected to continue to perform solidly. In addition, the corrective measures taken in Poland and Belgium will lead to improvement in 2025.

The new construction of the Nutricontrol laboratory will be completed in 2025. Other than this, no major investments are expected.

We have been working towards a sustainable transition in the agricultural sector for years. Agrifirm is ready for this transition and more positive change is visible among consumers and in the market, including the retail sector. We will maintain this lead and expand it still further.

Royal Agrifirm Group in 2024

Ruminants NL

Ruminants supplies high-quality feed, premixes, concentrates, mineral mixtures and additives for dairy and beef cattle, sheep and goats in the Netherlands.

We also advise our customers on the application of products and develop new, sustainable feed concepts.

Products: animal feed, additives

Countries: The Netherlands

Services: technical advice, integral (in collaboration with Agrifirm Exlan)

Animals: dairy cattle, beef cattle, goats and sheep

Turnover: 380 million euros

In 2024

> The decrease in turnover compared to 2023 was mainly due to business closures and lower feed and raw material prices.

> The phasing out of derogation led to a relatively higher number of business closures by livestock farmers in regions that have traditionally been strong for Agrifirm.

> The costs have been reduced to partially compensate for the effects of the declining turnover.

> A combination of a wet spring, pressure on the fertiliser market and the bluetongue virus led to operational, financial and mental pressure on farmers and their families.

>

Market trends

Nationwide, there were 3% fewer dairy farms in 2024 than in 2023 (12,816 vs. 13,215).

The number of veal calf farms decreased from 1,143 in 2023 to 1,083 in 2024 (-5%).

The number of goat farms fell by 0.7% (416 in 2023 to 413 in 2024).

Source: CBS

> The Net Promotor Score (NPS) of +25 showed increasing customer satisfaction.

> Lower ecological footprint thanks to promising innovation (in collaboration with Bonda and WUR): moisture-rich compound feed for dairy goats from regionally available residual streams of the human food industry.

> Growing demand for sustainable products by consumers and processors of agricultural products. In the retail sector, the willingness to pay a little more for this is increasing.

In 2025

> Expansion of market share with returns for members, satisfied customers and employees. Continuous attention to innovations that will provide tomorrow’s solutions. Cooperative collaboration with reciprocal returns is an absolute prerequisite.

> The initial effects of the national termination scheme for livestock farming locations (LBV in Dutch) are becoming visible. Agrifirm is not expected to be hit particularly hard by this.

Monogastric NL

Monogastric supplies high-quality feed, premixes, concentrates, mineral mixtures and additives for pig and poultry farming in the Netherlands, Belgium, Poland and Hungary in particular.

Products: animal feed, premixes, concentrates, mineral mixtures and additives

Countries: The Netherlands

Services: technical advice, integral (in collaboration with Agrifirm Exlan)

Animals: pigs, broiler and layer poultry

Turnover: 338 million euros

In 2024

> Decreasing sales of feed products for pigs in the Netherlands as a result of the shrinking sector, among other things due to the termination scheme.

> Turnover for layer and broiler poultry remained stable.

> Rearing company Pluvita is seeing an increase in sales of high-quality animals.

> Ongoing success for innovative feed concept Crunch for young piglets, which has now passed 100,000 tonnes.

> Investments in feed quality and the approach to shed management (dry sheds).

> Closure of the Zwolle factory. Production has been moved to Meppel and Veghel.

In 2025

> Shrinkage in the pork and poultry market in the Netherlands is continuing. However, growth is expected in sales of piglet feed.

> Focus on execution with efficiency and cost reduction, making a lasting distinction with quality and commercial excellence.

Market trends

The total number of pigs in the Netherlands amounted to 10.56 million in 2024. This is 270,000 fewer than in 2023. The number of poultry decreased from over 93 million in 2023 to 89.6 million in 2024.

Source: CBS

Compound Feed International

Belgium

> The full integration of Quartes NV into Agrifirm Belgium NV was completed after an intensive process. This will result in savings in production, purchasing, auditing and invoicing, both now and later.

> Many changes are putting pressure on the commercial organisation. This has led to a significant loss of volume. Sales are picking up again thanks to new team members.

> As of the third quarter, start-up problems with the new cattle production line in Grobbendonk had been resolved and production was stable.

Poland

> The cattle sales volume increased by 50% compared to 2023. As a result, market share grew by 1% in the cattle sector.

> The sales of poultry in particular were placed under pressure due to quality issues that were resolved during 2024.

> Launch of RobotMaster, Constant Feeding and Dry2Fit programmes. The Constant Feeding concept was implemented.

> Greater focus on reputation as a consultancy and knowledge company.

> Greater brand awareness thanks to intensive marketing.

Hungary

> Much attention has been paid to the implementation of the robot feed concept.

> Market recognition for calf rearing performance is yielding new partners.

> The market share of Agrimprove Toxin Binder expanded.

Plant-Based Solutions NL

Plant-Based Solutions supplies high-quality cultivation products in the Netherlands. We also advise and guide growers in optimising crop yields, among other things. In doing so, we take the rapidly changing laws and regulations into account.

Product groups: crop protection, fertilisers, seeds, farm supplies, cereal trade

Countries: The Netherlands

Services: technical advice, integral (in collaboration with Agrifirm Exlan)

Sectors: arable farming, flower bulb cultivation, fruit cultivation, outdoor vegetables

Crops: including potatoes, cereals, sugar beet, onions, tulips and lilies

Turnover: 338 million euros

In 2024

> The results were under pressure, particularly because harvesting at the end of 2023 was difficult as a result of the weather conditions. In combination with the wet spring of 2024, this shifted the season which in turn led to a very moderate cereal harvest.

Market trends

Preliminary figures show that the gross yield per hectare for wheat in 2024 was 7.2 tonnes (vs. 8.6 tonnes in 2023). For barley, the gross yield fell to 6.2 tonnes per ha (vs. 6.6 tonnes in 2023).

Source: CBS

> Agrifirm launched digital cultivation advice by means of an application model that links growth curves and weather data. This allowed growers to take preventive measures. For the first time, a solution per hectare was sold. There is increasing urgency as only 30% of crop protection products will be permitted three years from now.

> The basic processes have been further improved by pilots with online and telephone advice, streamlining the range of products and greater customisation in the range of products available to customers.

> The digital problems in the IT system of one of our transporters, in the provision of fertiliser services to growers, were resolved in 2024.

> We refined our Plant-Based strategy with a focus on developing solutions for bottlenecks that will arise on the farm in the coming years. The aim is to help growers achieve profitable cultivation in changing circumstances as a result of changing laws and regulations and also to connect them with supply chain parties in order to create a revenue model for sustainability together.

In 2025

> Expansion of digitised advice to fertilisers. Also to provide more integrated, faster, more efficient and more complete advice. This will allow Agrifirm to continue to offer added value in an increasingly complex world.

Specialties

Worldwide, Specialties supplies nutritional products such as premixes, concentrates, mineral mixtures and additives for the animal feed industry.

Products: premixes, concentrates, additives

Regions: Europe, Middle East, North Africa (EMEA), Latin America, Asia, United States

Main countries: China, Brazil and Spain

Turnover: 306 million euros

In 2024

> Higher turnover and profit achieved in EMEA. Improved financial results were also achieved in China in the second half of the year, after a difficult first half. Disappointing results in Latin America.

> Roll-out of new strategy with a focus on five pillars: customer orientation, continued strengthenen of product portfolio, cost reduction, innovation and streamlined organisation.

> Recruitment, selection and appointment of new, skilled management in the various regions.

> In Spain, focus on better collaboration with distributors and acquiring larger direct customers.

> Plenty of challenges in China due to swine fever and the difficult financial situation of farmers. New, enthusiastic team succeeded in finding an upward trend.

> A strong position was maintained in Ukraine despite difficult (working) conditions for the local team due to the war.

Market trends

The Chinese pig population decreased in 2024. The number of fattening pigs decreased by 1.6% to 427.4 million and the number of sows fell by 1.9% to 40.8 million.

Source: Feedinfo

> Internal logistics challenges and quality issues in Brazil drove sales down. Problems were tackled through decisive intervention.

> Favourable development and opportunities for Special Nutrients in their markets.

> The sales growth continued in Southeast Asia.

In 2025

> Continue the largely upward trend in EMEA and China and resume growth in Latin America.

> Increase commercial strength, among other things by offering a combined product range to major clients.

Consultancy, research and circular products

Agrifirm Exlan

Agrifirm Exlan advises and helps agricultural entrepreneurs in the Netherlands with the transition to sustainable forms of agriculture and taking measures based on new laws and regulations. Thinking along with them allows us to contribute to a responsible food chain together with livestock farmers and growers, responding to changing consumer demand.

Services: providing advice with expert knowledge of the agricultural sector

Countries: The Netherlands

Specialities: Manure & Minerals, Business Development, Legal Advice, Production Entitlements

Turnover: 7 million euros

In 2024

> Turnover in ‘Fertiliser & Minerals’ remained in line with expectations. Revenue from ‘Business Development’ fell short of target due to unclear, faltering licensing procedures.

> Brand awareness increased to 87% (2023: 70%) thanks to campaigns on social media (‘The people of Exlan’).

> Customers rated Exlan 8.1 (2023: 7.9). Higher Net Promotor Score (NPS) of +28: more customers are willing to recommend Exlan to friends or acquaintances.

> The recruitment and selection of competent agricultural advisors is going well. We stand out through a combination of advisory skills and knowledge of the sector.

> Advice on the new Environmental Act, Nitrogen Action Programme (PAS) notifications, phasing out of derogation and purchase of manure silos.

> Contribution to initial permit granting processes based on measurable goals (goal management) instead of resources. Livestock farmers are getting their hands on the steering wheel and the licensing process is moving again.

> Stronger advisory capacity due to higher billability. Greater cost efficiency.

In 2025

> Focus on advising farmers on how to obtain permits for (changed) business operations and developing practical solutions that allow farmers to run their farm successfully within the set emission targets. Permit granting processes will more frequently feature goal management: measuring=knowing=doing.

NutriControl

NutriControl is an independent expert in laboratory research into nutritional values and food safety in the food, feed and dairy sectors. NutriControl uses innovative analytical techniques, combining them with a broad knowledge of products and processes in the feed and food sectors.

Markets: animal feed, pet food, raw materials, foods, dairy products, additives, alternative proteins

Locations: Veghel (laboratory), Heeswijk-Dinther (Laverdonk research farm)

Turnover: 16 million euros

In 2024

> Turnover remained stable compared to 2023.

> The construction of the new laboratory in Veghel started in February 2024. NutriControl is scheduled to start using the new building in mid-2025.

> Mobile Near Infra-Red (NIR portable measuring device) was developed and introduced worldwide. This allows customers around the world to quickly, reliably and easily measure nutritional values in the field without sending samples to the laboratory.

> The PFAS analysis for eggs, feed and dairy is operational. The analysis is now being carried out under accreditation.

> Stronger position of product development within the organisation, due to greater customer need for specific, complex R&D analyses.

> Extra attention and efforts to maintain and expand customer turnover, including by means of intensifying existing customer contacts and investing in new relationships.

> Increasing visibility in the market at trade fairs and events, such as the NutriControl Insight Day that we organised and at which we presented the latest developments in the analysis market.

Bonda

Bonda processes residual streams from the food and bioethanol industries into valuable circular feed for livestock farming. As a result, Bonda contributes to a responsible food chain and reducing the carbon footprint.

Products: circular feeds

Based in: Den Bosch

Turnover: 58 million euros

In 2024

> Better collaboration with suppliers and focus on lightening the load for customers.

> Bonda offered customers ration stability and security through the combination of the Bonda USP moisture-rich compound feeds and single flows.

> Achievement of a strong technical result, competitive cost prices and sales security for our suppliers through a more efficient and effective organisation.

> Together with Agrifirm’s Ruminants business unit and Wageningen University & Research, development of a new circular feed concept for goats. The initial results are positive.

> Young, enthusiastic colleagues with new technical, operational and commercial skills came to strengthen the organisation.

> Innovations contributed to lower CO2 emissions and a positive financial result for customers.

> 81% of all livestock farmers are familiar with Bonda (source: 2024 Brand Research).

In 2025

> Continue favourable business development with further professionalisation, a more data-driven approach and focus on specific market segments.

Welkoop

The Welkoop retail chain started out in 1899 as an agricultural cooperative. It has now become an omnichannel retail organisation with a webshop and more than 160 branches across the Netherlands.

Selling garden and animal products, we help our ‘green and animal-friendly’ customers with advice, products, services and inspiration.

Stores: 163 (own and franchise)

Customers: 1 million loyalty cards, average visiting frequency: eight times a year

Turnover: 299 million euros

In 2024

> Turnover increased. Consumers were spending more consciously than before and were more likely to opt for promotions and discounted items.

> The trend towards more online purchases continued.

> It was difficult to incorporate the increasing costs (wages, rent, energy) into consumer prices in a highly competitive market.

> Opening of three new stores and conversion of 24 stores to the new store format.

> Introduction of a new range of Welkoop’s own branded products, including fertilisers, grass seeds and the outdoor clothing brand VELESTE.

> Customers once again rated Welkoop as the best Garden store, best Garden webshop and best Animal store. Compared to all Dutch retailers, Welkoop ranked third.

In 2025

> Conversion of 25 stores to the new formula.

> Expansion of customer groups and growth of online turnover.

> Introduction of new product lines such as workwear for the small business market, a garden water management concept, ‘year-round’ green houseplants and the introduction of the food concept ‘BOER&NLekker’.

Organisation Efficiency

2024 was a transitional year for many agricultural companies and also for Agrifirm. This had an effect on our organisation and employees. Partly due to shrinkage in the sector, we were forced to operate more effectively and efficiently. The Polestar programme, which was launched in 2023 and focuses on efficiency, accelerating the introduction of innovation and exploiting commercial opportunities, has borne fruit. For example, the basic processes in support departments are now in order and have been improved. Greater cost efficiency meant that we could provide the services from staff departments with fewer employees. This is partly due to an increase in digital invoicing (from 60% to 95%), the automation of incoming invoice flows, the sending of digital customer information (lower printing costs), more online learning and more recruitment via our own channels. Although the efficiency drive in 2024 was unfortunately accompanied by forced redundancies and the closure of the Zwolle production site, as well as natural labour turnover, we demonstrated that we could keep our services up to standard with lower costs.

STAR values

Sharp, Together, Ambitious and Responsible. These are our core values. They summarise what we stand for and how we demonstrate this in our daily behaviour and attitude. Employees convey these values in their contact with customers and other business relations. They are the representatives and cultural ambassadors of Agrifirm.

Our STAR Values

Sharp.

We are inventive, inspiring and forward  thinking, with the right balance between  optimistic & down to earth. Measuring is  knowing, actions speak louder than words.

We have the reach to bring different players and different worlds together to join forces and make it happen.  Respecting different needs and opinions. Together.

Ambitious.

We have a proactive, entrepreneurial  mindset, recognizing opportunities and seizing them. We have a courageous can-do-mentality, challenging the status quo.

Responsible.

We take ownership and we’ve got your back,  committed to what we do, who we serve and  who we work with; going all the way to achieve our purpose.

Our people

An organisation can only be successful with enthusiastic, committed and knowledgeable people. Jointly, we are building an inspiring work culture in which the right colleagues with the right skills work together. This ensures satisfied employees who contribute to Agrifirm’s goals; in turn, Agrifirm contributes to their personal development.

Changes in employee numbers

Due to developments in the sector, Agrifirm’s business units faced changes in 2024 in order to make our organisation more efficient and future-proof. This also had consequences for the personnel: around 486 employees left Agrifirm (excluding Welkoop). 221 of these were forced redundancies, while 265 left on their own initiative. Around 378 new employees were also recruited within Agrifirm (excluding Welkoop) in 2024, with competencies that are a good fit for the renewed organisation and the challenges in the sector. Given the pressure on the markets as well as the continuous focus on efficiency, we also expect a decline in the number of employees in 2025. At Welkoop, the number of employees in the stores grew, while at the same time the number of employees in the Welkoop service office decreased to keep costs in balance with turnover.

Social safety and diversity

Agrifirm gives employees the space to develop in a socially safe working environment.

In 2024, for example, we paid particular attention to reporting and combating inappropriate behaviour. We also introduced a new Speak Up procedure, which included the possibility for employees to report incidents completely anonymously via an external channel. There was a slight increase in the number of complaints. Although this increase is naturally undesirable, at the same time it shows that people in the organisation felt more free to speak up. In the 2024 Diversity, Equity and Inclusion (DE&I) survey, 75% of employees indicated that they knew what to do in the event of inappropriate behaviour. This is an increase of 10% compared to 2023. Over the past year, the number of women in the top 100 rose from 23% to 29%. This is a great step forward. Agrifirm’s aim remains to have at least 1/3 women at all levels. We will continue to pursue the current working method and pay specific attention to this theme in recruitment and talent development, as well as DE&I initiatives. For roles in the top 25 of the organisation in particular, we note that it is still difficult to find external female candidates who are suitable. We continue to focus strongly on this in our recruitment process.

Talent and leadership

In 2024, employees once again followed various leadership and talent programmes. In particular, we

invested in change management. In a sector that is changing so quickly, after all, the organisation must continue to respond and anticipate accordingly. In 2024, 120 managers and employees followed one of the programmes (2023: 200).

Employee satisfaction survey

In 2024, Agrifirm once again carried out a global DE&I survey and employee satisfaction survey. Ultimately, the aim is to increase job satisfaction and physical and psychological safety for everyone. Overall, the results were in line with the 2023 results. Although the efficiency programme of recent years has resulted in financial savings, it also had an impact on employee satisfaction. For example, our Net Promoter Score (NPS) fell slightly in 2024 compared to 2023. In particular, we are seeing a decrease in areas in which we were forced to intervene as a result of the efficiency programme. With all the investments that we are making as a company in the areas of development, talent programmes and our STAR culture, we are convinced that we will be able to get the engagement score and sense of pride back to pre-2023 levels in 2025.

Number of employees (in FTE)

2024: 3,077

2023: 3,183

Difference: -106

Sustainability reporting

Agrifirm strives to achieve a responsible food chain for future generations. The main developments and results in 2024 are shown below. For more detailed information and an explanation, see the CSR report on page 91.

We have defined six key themes in the food chain based on our activities, trends and challenges.

1. Sustainable incomes

2. Responsible and efficient production systems

3. Healthy animals

4. Sustainable, improved yields

5. Reliable supply chains

6. Climate-friendly production

Relationship between KPIs and the six themes

Responsible Sourcing In 2024, 75% of the raw materials for animal feed were sourced from a responsible (and traceable) source.

Responsible Operations In 2024, our market-based greenhouse gas emissions were reduced by 70% compared to 2019.

In 2036, our greenhouse gas emissions will be net zero.

6

Responsible Solutions In 2024, 17% of our gross profit margin came from the sale of responsible solutions. 1, 2, 3 and 5

Agrifirm has established three measurable performance indicators (KPIs) which will allow us to determine the realisation of our sustainability goals. These KPIs are in line with the six themes by means of which we contribute to a responsible food chain. This allows us to make our efforts both visible and verifiable.

Reliable supply chains

Responsible and efficient production systems

Healthy animals

Sustainable incomes

Climate-friendly production

Sustainable, improved yields

EU sustainability reporting

In 2023, Agrifirm started preparing for the Corporate Sustainability Reporting Directive (CSRD). We are on track to meet the reporting requirements for the 2025 financial year. This EU directive requires companies to report on their impact on people, the environment and the climate. The directive will ensure better, more transparent and comparable sustainability information for companies. An auditor reviews the information on an annual basis. In our reports, Agrifirm also takes into account other future laws and regulations for ESG topics, such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the European Union Deforestation-free Regulation (EUDR).

In dialogue with stakeholders

Agrifirm is in constant contact with partners in the supply chain, scientists, public authorities and NGOs on subjects such as preventing deforestation, reducing the negative impact of food production on the climate and the organisation’s (more effective) focus on sustainability. For example, there were two breakfast sessions with MPs, field visits were organised around sustainable cultivation which NGOs, civil servants, politicians and chain partners were invited to attend, and dozens of lectures were held in which contact was sought with farmers and growers. We share our policy dilemmas about sustainability and the effective promotion of (more) sustainable portfolios with our stakeholders. For example, the development of feed with a lower environmental footprint is not always

accompanied by efficient production, and Europeangrown raw materials for animal feed are not necessarily less harmful to the climate.

Responsible sourcing

In 2024, 79% (2023: 78%) of the raw materials purchased by Agrifirm were produced sustainably and responsibly. Given the volume, the supply to PPO and Ruminants is of decisive importance. Due to the quality and availability of raw materials, there was a considerable shift in supply from Poland and the Black Sea region to Brazil and Ukraine. Nevertheless, the target was exceeded. In addition, there was a significant influence in EMEA on the (ultimately postponed) implementation of the European EUDR regulations. Due to expected disruptions to the supply, stockpiling occurred and this had a negative impact on the responsible sourcing percentage. Nevertheless, we remained above our target of 75%. We strive to only purchase raw materials produced in line with laws and regulations that apply in the country where the raw material was grown. By means of a risk analysis, we assess each batch of raw materials for environmental impact, working conditions and safety. On the basis of the developments mentioned previously, in 2025 we expect to be able to ensure that at least 78% of our raw material purchases are certified as responsibly sourced. As a result of turbulence on the commodity market, changing markets and the financial pressure on the organisation, however, it remains uncertain whether we can actually achieve the target in 2025.

Responsible operations

In 2024, we reduced our scope 1 and (market-based) scope 2 greenhouse gas emissions by 73% (2023: 69%) compared to 2019. We therefore exceeded our goal of a 70% reduction by investing in improved efficiency and the purchase of GOs. Compared to 2019, Agrifirm’s gross energy consumption decreased by 30% (from 119,500 tonnes of CO2-eq. to 83,500 tonnes of CO2-eq.).

A significant role was played by Groenvoerdrogerij Oldambt, a drying facility for green fodder. The closure of one of the two installations made a significant contribution to this. In addition, most business units have shown a lower CO2 consumption than budgeted, often coupled with a lower volume. Almost all our purchased electrical energy came from green sources in 2024, with Spain (part of the EMEA region) being the last company to switch to greening its purchased electrical energy.

The aim is to reduce the CO2 emissions due to our energy consumption (scopes 1 and 2 of the Greenhouse Gas Protocol) in all our locations to net zero by 2036. We plan to do this by reducing our absolute emissions, increasing the efficiency of our production processes and making use of energy from renewable sources.

Responsible solutions

When it comes to responsible solutions, we are taking major steps forward. In 2024, 17% (2023: 5%) of our gross profit margin came from the sale of responsible solutions. This exceeds the target. By responsible solutions, we mean products and services that demonstrably make a positive contribution to one of our six priorities and are in balance with the other themes. In addition to the gross margin on Low Environmental Impact resources, the Phytophthora approach has also been added within Plant-Based Solutions. PPO in particular made a major step forward with concepts such as Crunch for pigs, slow-growing chickens and wet mixes for pigs making a significant contribution. However, Ruminants and the AminoGo concept which was introduced last year also made an important contribution. Hungary was helped by the fact that mycotoxin binders were in high demand.

Risk management

The Supervisory Board and Executive Board of Agrifirm Group BV attach importance to a well-documented and centrally prepared and coordinated risk management process. The most significant risks facing Agrifirm have been identified by means of a bottom-up process. These have been coordinated with the Executive Board and discussed with the global leadership team. Control measures have been taken for these most important risks.

Risk profile

Our strategy and operating activities can entail risks. For example, the achievement of the business objectives is contingent in part on external geopolitical factors, the unpredictability of market developments, developments in the competition, human factors and calamities such as natural disasters, epidemics and animal diseases. Risk management is an integral part of the business processes in order to mitigate (the consequences of) risks in terms of their impact and/or likelihood.

Ultimate responsibility for Agrifirm’s risk management and internal control system lies with the Executive Board of Agrifirm Group BV, in close consultation with the Supervisory Board and the Audit Committee. Agrifirm usually adopts a cautious approach to taking risks.

Diversification of activities

We reduce risks by diversifying our activities. These include animal feed, plant-based activities, Welkoop and services. Agrifirm is also present in various regions both within and outside Europe. Partnerships with other parties also help to diversify our activities.

Risk management system

We are increasingly better able to assess and manage risks. In Agrifirm’s philosophy, the management of the clusters and business units plays the most important role in tailoring the global risk strategy to the local situation in terms of business operations, laws and regulations and culture. It is crucial to find the right balance between entrepreneurship, innovation and trust in employees on the one hand and preventive, research-oriented and corrective control measures on the other.

Specific risks

To minimise the risk of negative financial impact and reputational damage, a set of control measures has been adopted that focus on the following specific risks:

4. Information and data security (cybersecurity)

5. Compliance with laws and regulations and fraud prevention (compliance risks)

6. External risks

7. Financial risks

3. Delivery reliability

2. Employee health and safety

1. Animal health and welfare

Animal health and welfare

We constantly focus on animal diseases. This is also because, quite apart from animal suffering, they can undermine food safety and lead to a reduction in livestock numbers, costs and reputational damage. The main risks are related to the quality and availability of raw materials and additives, and the risk appetite is low. We mitigate these risks by safeguarding the quality of raw materials, providing information to livestock farmers, ensuring a geographical spread in our activities and having disaster plans in place that are tested regularly. In addition, the business units each have a team of quality assurance officers who are able to not only guarantee a high-quality environment but also make continuous improvements through training, coaching and quality audits.

Agrifirm runs sales and margin risks due to viruses. These risks will remain present and form part of the periodic valuation test of the assets and strategic country orientation.

Employee health and safety

Risks to the health and safety of employees, customers and suppliers are continuously present.

With regard to the joint venture in Ukraine, we are now primarily focusing on the safety of the employees and their willingness to continue working for the benefit of the regional feed requirements. Our willingness to accept risks relating to the health

and safety of employees is low. Various risks have been identified for employees, customers and suppliers at production sites, offices and during business travel. A healthy and safe environment for our employees is an essential component of our strategy. The Global Health, Safety & Environment (HSE) Lead has a team of experienced employees who are able to promote this healthy and safe environment through training, coaching and HSE audits.

Delivery reliability

Failure to deliver what customers request on time, correctly and in full can cause reputational damage and lead to the loss of customers. We limit this risk through good maintenance of the production sites, good planning, the maintenance of minimum stocks and reliable, up-to-date IT systems and infrastructure. Business Impact Analyses have also been carried out and we have drawn up Business Crisis Plans on the corrective side. Our willingness to accept delivery reliability risks is average.

Information and data security (cybersecurity)

Cybersecurity has become increasingly professional and diverse in recent years, with different sources, motivations and types of potential impact. The cybersecurity risk has increased significantly in the past few years and requires continuous attention from our IT experts. The risk appetite for these risks is low. In addition, we have to deal with ever stricter privacy laws

that are not always harmonised internationally. Noncompliance can lead to penalties and an immediate business impact.

As a result of digital trends, IT is shifting from support to business opportunities and business process accelerators. These trends, together with the need for information about the risks of collecting, storing, distributing and using information, make it necessary to keep information, data systems and infrastructure secure.

By concentrating IT management and applying new possibilities for data prevention and detection, Agrifirm can take adequate security measures together with partners.

Compliance with laws and regulations and fraud prevention (compliance risks)

The environment in which Agrifirm operates is subject to strict laws and regulations. In addition, these laws and regulations change regularly and are not always consistent. Agrifirm has a low appetite for risks relating to non-compliance with laws and regulations.

Our Code of Conduct sets out the need for compliance and leaves no room for deviating conduct. Agrifirm does not exclude the possibility of a case of non-compliance arising, given the complexity of its operations in combination with the complexity of the rules. Any reports or indications are investigated. If necessary, the results are used to respond with appropriate sanctions policy and training courses and any learning and improvement points are widely shared in the organisation. Agrifirm also focuses on updates to laws and regulations in training courses.

Control is provided by working with a code of conduct, a whistleblower scheme with internal and external reporting hotlines, workshops on ethics, onboarding and leadership programmes, authorisation structures and corporate guidelines. The relevant management is responsible for implementation and compliance (with the Executive Board of Agrifirm Group BV bearing ultimate responsibility).

In 2024, a new compliance plan was drawn up for the coming years with the following priorities:

> Awareness and dilemma training in both Dutch and foreign locations.

> Roll-out of the new whistleblower scheme.

> Roll-out of the new internal authorisation matrix.

Agrifirm uses the local knowledge of intermediaries (such as agents) in different countries, including countries with different laws and regulations. The policy concerning countries and individuals with whom we do business is evaluated continuously. Agrifirm also makes use of Business Partner Analyses to assess potential new intermediaries such as agents, distributors or dealers. These analyses evaluate not only the nature of the intermediary’s activities, but also the management and shareholders.

Despite the efforts to act in accordance with local and international laws and regulations, there are (residual) risks inherent in working with agents.

With regard to fraud we have identified the following risks, which are reduced within Agrifirm as follows:

> To record sales correctly and completely, we use various automated systems (ERP systems).

In addition, the business units perform regular analyses on the basis of agreed contract conditions (Incoterms) to ensure that sales are assigned to the correct period.

> For assessing accounts receivable and inventory, we use the internal guidelines for administration and

financial statements. The roles and responsibilities of the business units in the valuation of accounts receivable and inventory are clearly described in these guidelines and are carried out in this way in practice. The Executive Board monitors this via regular management reports, which include accounts receivable and inventory positions.

External risks

In implementing our strategy, Agrifirm experiences various external risks that cannot be directly mitigated or are difficult to mitigate. These include animal diseases, geopolitical tensions and changing (environmental) legislation. We strive to mitigate risks such as the war in Ukraine in part through the diversification of activities across geographical regions, animal species, products and services. However, these risks are inherent in the business activities. Consequently, our policy is not only aimed at mitigating these risks but also at timely anticipation should they arise.

In the event of animal diseases, a crisis team is formed immediately. It seeks to limit the impact for Agrifirm and its customers, in accordance with previously established protocols. With regard to the joint venture in Ukraine, we are primarily focusing on the safety and willingness of the employees to continue working for the benefit of the regional feed requirements.

Major societal developments relating to sustainability, climate and environmental management, the shift from animal to plant-based proteins, the explicit call to reduce the use of environmentally active substances in crop protection products and fertilisers and the call to reduce the livestock population are also important for Agrifirm.

Specifically with regard to sustainability, large companies such as Agrifirm must have implemented the CSRD legislation from the 2025 financial year onwards. We are working hard to achieve this in time. With regard to the climate risks, reference is made to the section: Accounting policies used in preparing consolidated financial statements (p. 55).

Financial risks

Financial risks are to some extent inherent in the strategic objectives. For this reason, the control of these risks varies for each type of risk. Commodity and currency prices can fluctuate greatly and affect the financial results. Agrifirm has a medium risk appetite for risks relating to the volatility of raw material prices. For currency risks, we try to control the risk as effectively as possible and consider it to be low in principle. We keep an eye on the volatility of commodity prices by constantly monitoring positions, paying attention to cost efficiency. We also have established limits for specific positions in order to control this risk. If necessary and appropriate, we cover currency and commodity positions using hedging transactions.

The financial stability of our customers may vary due to fluctuating prices, investments and changing laws. This means that working capital management is an important element in all business units. We assess customers prior to delivery on factors such as creditworthiness and payment history.

If appropriate, we arrange additional securities and/or insure credit risks. We constantly monitor outstanding balances and contact the customer in a timely manner to reduce the risk of late payments.

The close monitoring of the size and age of stocks is crucial for Agrifirm. We have strict measures, such as regular stock inventories, to ensure that the level, composition and age of stocks are checked and that the quality of products is guaranteed.

In principle, the appetite for interest-rate risks is low.

Agrifirm has a financing scheme with various scenarios to determine the required financing scope, whereby the liquidity risk is covered until December 2028. Agrifirm arranges the financing centrally. If necessary, interest rate and currency risks are hedged by interest rate swaps and forward currency contracts, and by preparing regular liquidity forecasts. These activities and the management of cash and cash equivalents are carried out by Group Treasury.

Agrifirm remains alert to currency fluctuations and tries to limit their impact by trading as much as possible in local or core currencies in cross-border transactions.

Budgeting and planning process

The company follows a budgeting and planning process with standard procedures and detailed guidelines. The Executive Board consults regularly with the management of the clusters, business units and companies on the realisation of strategic and operational objectives. The discussions are based in part on the periodic financial and operational reports and the annual budget cycle and risk analysis.

Other risk-mitigating measures

When designing and evaluating risk management and control systems, Agrifirm uses the internationally

accredited COSO framework for internal control as a frame of reference. This means there is an ongoing process of identifying, analysing, validating, monitoring and evaluating significant risk areas and the associated control measures, as well as communicating and reporting on this. Among others, we use the following guidelines, procedures, systems and organisational measures for managing and controlling our business processes:

> Clear organisational structure with responsibilities divided among the Members’ Council, Supervisory Board, Executive Board and the local level (management of the clusters, business units and companies).

> Codes of conduct and business ethics (both included in the Code of Conduct) for all employees.

> A whistleblower scheme.

> Onboarding programmes for new employees, introducing the strategy and codes of conduct.

> Systems for operational and financial planning, including drawing up budgets.

> Guidelines and procedures for management reports and financial reporting.

> A periodic evaluation of the realisation of the set objectives, with predefined critical success factors for all disciplines.

> Guidelines and procedures for financing activities and the control of currency and interest-rate risks.

> Guidelines for the continuity and reliability of automated data processing.

> Control of production processes and quality controls in accordance with internationally recognised and certified methodologies and in line with local laws and regulations.

> A quality assurance system for raw materials and final products.

> Guidelines for internal control and monitoring, including authorisation procedures and the segregation of duties.

> Letters of representation for Agrifirm’s group companies.

The measures set out above provide reasonable assurance that the strategic and operational objectives

will be achieved, that the company’s financial and nonfinancial reporting is reliable, and that relevant laws and rules are complied with.

The external auditor examines the structure, implementation and, where necessary, functioning of the internal controls and the administrative organisation as part of the audit of the financial statements.

This takes place in accordance with a programme drawn up in consultation with the Audit Committee of the Supervisory Board of Agrifirm Group BV. The information collected during the internal and external audits is used to make improvements to the internal risk management and control systems. The Executive Board ensures that such improvements are implemented correctly, comprehensively and in good time.

Statement of the Executive Board

The Executive Board is responsible for managing the risks associated with the company’s objectives and the reliability of the internal and external financial and non-financial reports. Agrifirm bases its internal control structure on the principle that the management of the business units bears primary responsibility for the correct day-to-day application, compliance and monitoring of the systems that have been put in place to sufficiently control the risks that are relevant for the group companies. Taking into account the limitations associated with the systems of risk management and internal control:

> this section specifies the risks and uncertainties relating to the assumption that Agrifirm will continue as a going concern for a period of 12 months after the compilation of the report;

> Agrifirm’s internal management and control systems provide reasonable assurance that the financial reports are free from material misstatement;

> these control systems performed adequately in 2024.

The phrase ‘reasonable assurance’ is used to indicate the level of assurance that would be provided by a director acting with due care under the current circumstances. The set of procedures involving the internal risk management and control systems, and the related findings, recommendations and measures, have been discussed with the Audit Committee and the external auditor.

Despite the care with which the above-mentioned systems and controls were designed, they can never completely guarantee that strategic, operational and financial corporate objectives will be achieved. Neither can these systems prevent all inaccuracies, errors or violations of laws and regulations.

Governance

Report of the Coöperatie Koninklijke Agrifirm U.A.

The Agrifirm cooperative consists of farmers and growers who have been making a difference with their hearts, heads and hands for more than 120 years. During this period, the agricultural landscape in the Netherlands and beyond has changed enormously. The cooperative has remained a stable factor, mainly thanks to the decisiveness and foresight of its members. With a network of over 8,000 affiliated farmers and growers, we are a major player in the food sector and create value for our members and society.

Structure of the Cooperative

Coöperatie Koninklijke Agrifirm U.A. is a cooperative under Dutch law with over 8,000 Dutch members. The Cooperative is managed by the board, which is appointed by the Members’ Council of the Cooperative. The Cooperative holds all shares in Agrifirm Group BV. This is a private limited company and functions as the holding company of Agrifirm’s group companies and participating interests, in which the actual activities take place. The Cooperative and Agrifirm Group BV have the following bodies:

> The Members’ Council of Coöperatie Koninklijke Agrifirm U.A.;

> The board of Coöperatie Koninklijke Agrifirm U.A., which forms a personal union with the Supervisory Board of Agrifirm Group BV;

> The General Meeting of Shareholders of Agrifirm Group BV;

> The Executive Board of Agrifirm Group BV.

In principle, the Executive Board and Supervisory Board are responsible for the corporate governance structure within Agrifirm. There is a desire to apply the 2022 Dutch Corporate Governance Code as much possible. Agrifirm deviates from this code in some respects:

1. The existing diversity and inclusion policy will be further aligned with the best practice provisions of the 2022 Corporate Governance Code.

2. In 2024, the then chairman of the Supervisory Board was still the chairman of the Remuneration Committee. This will be changed in 2025.

3. The members of the Executive Board are not appointed for four years, but for an indefinite period. However, in the spirit of the Corporate Governance Code, a thorough evaluation takes place after (each period of) four years.

4. On the basis of the current Articles of Association, the members of the Supervisory Board and the Executive Board may be reappointed twice after an initial term of four years. The chairman may hold office for a maximum of sixteen years. The Corporate Governance Code stipulates that after eight years, reappointment is possible a maximum of twice for a period of two years. In 2025, it will be assessed whether the appointment periods should be amended.

5. The remuneration of the individual members of the Executive Board is not published separately due to its confidential nature.

The Cooperative’s Members’ Council

The main objective of the Cooperative, and therefore also of the Members’ Council, is to support the members in maximising their returns by providing products and services. In addition, the Articles of Association state that the Cooperative wishes to: ‘… contribute to the social acceptance and the development of knowledge and a vision for the agricultural sector’. After all, social acceptance is a prerequisite for members to continue to achieve sufficient returns on investment in the future.

The board requires the approval of the Members’ Council for certain resolutions as described in the Articles of Association. Approval is required in the following cases, among others:

> amendment of the Articles of Association of the Cooperative and the Articles of Association of Agrifirm Group BV;

> appointment of members to the board of the Cooperative;

> important transactions, including entering into strategic partnerships and property transactions;

> acquisition and sale of participating interests in group companies and minority interests;

> important investments.

The Members’ Council is also responsible for adopting the financial statements of the Cooperative and determining the appropriation of profit, approving (1) Agrifirm’s long-term strategic plan, (2) the annual plan

for the Cooperative, including budget consequences, (3) the decision of the board of the Cooperative to grant discharge to the Supervisory Board and the Executive Board and granting discharge to the board of the Cooperative.

Composition of the Members’ Council

The board has subdivided the members of the Cooperative into nine geographically distinct districts. Members from these districts are elected to the Members’ Council. The number depends on the number of members in the district. The minimum number of Members’ Council members for a district is seven. The representation of the sectors within the Members’ Council is determined on the basis of the number of members and the turnover of each sector. The number of Members’ Council members for each district and the representation per sector are assessed periodically. Various changes that were prepared in 2024 will be implemented in 2025.

A Members’ Council member can serve a maximum of two additional four-year terms after their initial appointment. Prior to the end of the second term in office, an evaluation takes place to determine whether there are any special circumstances that warrant nominating the member in question for a third term in office. Ten members of the Members’ Council stepped down in the Members’ Council meeting of 26 March 2024. Following open elections, for which a sufficient number of candidates registered,

ten new members were appointed to the Members’ Council during that same meeting.

Members’ Council meetings

The Members’ Council met four times in 2024. The 2023 Financial Statements were adopted in the meeting of 26 March 2024. The quarterly figures, among other things, were discussed in the meetings of 18 June and 26 September 2024. The Cooperative’s Annual Plan 2024 and the budget for 2025 were approved during the meeting of 12 December 2024. A new multi-year strategy was also discussed and the main outlines were adopted in December. The definitive adoption and concrete elaboration will take place in 2025.

Involvement of the Members’ Council

In 2024, several members of the Members’ Council were involved in matters important to the cooperative. For example, cooperative frameworks were established. Members of the Members’ Council also advised the Board on the future viability of the council. They also actively contributed to the success of the second edition of Expedition Agrifirm, a knowledge festival focused on bringing people together and exploring innovations. A Public Affairs sounding board group, which met once, was also set up in 2024.

Youth Council

The Youth Council consists of 25 enthusiastic young agricultural entrepreneurs, aged between 18 and 32,

from all districts and sectors of our cooperative. The Youth Council is an important sounding board for the board and Executive Board of Agrifirm. This council met nine times in 2024. In addition, there were meetings in smaller working groups and members of the Youth Council participated in the Study Day and informative meetings with the Members’ Council. The Youth Council also organises a two-day excursion every year.

Cooperative projects

Cooperative projects are a response to societal challenges in business operations and aim to improve the income of members in the longer term. Both goals are essential for the future viability of our members’ companies. Some issues can only be addressed on a collaborative basis, for example because they are too large or too risky for individual farmers and growers. The Cooperative supports these projects with knowledge and experience, bringing them to the attention of relevant networks and parties. In turn, this generates new knowledge and experience that can be applied immediately in practice. Creating added value for our members is the premise in all projects. Where possible, the projects receive co-financing from other sources such as chain partners and public authorities.

Membership of the Cooperative

Dutch livestock farmers and growers are world leaders in food safety, innovation, efficiency and sustainability. The Cooperative regards it as its mission to support its

members, so that the sector can maintain and strengthen this position. Livestock farmers and growers who generate a certain level of turnover in the Netherlands and meet a number of other conditions described in the Articles of Association can join the Cooperative. Members benefit from member discounts and member dividends, among other things. The member discount and member dividend amounts are set by the Members’ Council at the close of every financial year.

The member discount for 2023 was set at the Members’ Council meeting of 26 March 2024 at 0.39 euros per 100 kg of compound feed and 0.87% on the turnover of crop protection products. For 2024, the proposal is not to issue

a payment. The total amount of the member discount paid to each member forms the member distribution. If the member distribution amounts to 500 euros or more, members can deposit the distribution in the Agrifirm Loyalty Scheme. Members can invest their member distributions in the Loyalty Scheme at a favourable interest rate. The annual round of deposits for 2023 took place in spring 2024, with 2,227 members deciding to participate in the scheme.

Board of the Cooperative

The Board of the Cooperative is responsible for all of the Cooperative’s operations. This includes looking after the interests of the members in the enterprises directed by

Agrifirm Group BV and its group companies. The Board of the Cooperative comprises eight members, five of whom come from the agriculture sector. They are elected from the members of the Cooperative, supplemented by three external members. The members of the Board are appointed by the Members’ Council on the basis of the nominations submitted by the Board. The Members’ Council may also dismiss a member of the Board.

The Board of the Cooperative also forms the Supervisory Board of Agrifirm Group BV. Each Board member is appointed for a period of four years and can be reappointed twice for subsequent four-year periods.

A Board member’s performance is assessed after each term. To implement the provisions of the Management and Supervision (Public and Private Companies) Act, the balanced distribution of seats between women and men is specifically taken into consideration when new Board members are appointed. At present, three women have a seat on the Board (and therefore also on the Supervisory Board) (37.5%). The Board continues to aim for diversity in future vacancies.

General Meeting of Shareholders of Agrifirm Group BV

The Cooperative holds 100% of the shares in Agrifirm Group BV. The Board of the Cooperative exercises the voting rights in the General Meeting of Shareholders on behalf of the Cooperative. In certain instances – as described in the Articles of Association – it does so subject to the prior approval of the Members’ Council.

Report of the Supervisory Board

Introduction

In 2024, major developments took place in the agricultural sector and therefore at companies such as Agrifirm. For example, the drop in livestock numbers is having a significant impact in the livestock farming sector. In the plant-based sector, the extensification of construction plans and the reduction of emissions in particular are having an impact on the companies and sector as a whole. As a result, a great deal of attention was paid to sustainability and technological innovations. For our members, working out how to tackle all these issues on their farm is a big puzzle. The Cooperative helps them with this. This includes subjects such as:

> Closing cycles and soil health. There is an increasing focus on closing cycles, with an emphasis on healthy soils and biodiversity.

> Digitisation and precision agriculture. Technologies such as sensors, drones and AI are helping farmers to work more efficiently and sustainably through practices such as optimising water and fertiliser use and applying site-specific crop protection.

> Climate adaptation. Members are adapting to climate change by investing in resilient soil.

> Developments in livestock farming and animal welfare. The sector is working to achieve more sustainable and animal-friendly livestock farming with a focus on responsible production and reducing emissions.

We can see that our members are making great progress in these developments in 2024 and are proud of this.

Cooperative frameworks

The Cooperative developed cooperative frameworks in 2024. These give direction to Agrifirm’s strategy. One example of such a framework is how we deal with activities abroad and sectors that do not contribute sufficiently to the company’s profitability. The starting point of the Cooperative is and remains that every member is equal. It makes no difference whether they wish to excel in a specific area or not. Every member should feel at home at Agrifirm. In 2024, a delegation from the Members’ Council and a number of board members formed a working group that developed the cooperative frameworks. These frameworks were adopted at the Members’ Council meeting in March 2024.

Results for 2024

Agrifirm had a difficult year. In essence, the Cooperative achieved a positive result with its membership company

in The Netherlands, despite the fact that we were losing turnover in a shrinking market. On average, foreign activities did not contribute sufficiently to the result in 2024. On the other hand, Welkoop in particular performed well. Further to the results, the Supervisory Board approved the Executive Board’s proposal that no profit distribution should be paid out in 2025 for the year 2024. Although the Supervisory Board naturally regrets this, we have to tread water at the moment because of the uncertain market developments. At the same time, we note that Agrifirm has a strong capital position, has an extensive and modern network of factories and carries out activities that have a lot of potential to generate profit. Together with our financing facilities and available cash and cash equivalents, we have a healthy starting position to meet the challenges in the years ahead.

New strategy

Improvement plans have been drawn up for the short term. In 2024, we also started to develop the new business strategy. Under the leadership of the new CEO, this will be completed in May 2025. The new strategy must provide an answer as to how we will implement Agrifirm’s activities over the next four years in order to achieve our goals.

Challenges and opportunities

One of the challenges we are facing is the changing society, in which an increasingly critical eye is being

Gerben Smeenk

New Chairman of the Supervisory

Board

I am delighted to introduce myself. On 16 December 2024, I took office as Chairman of the Supervisory Board of Agrifirm Group BV and the board of the Cooperative. I am 49 years old and work as a dairy farmer, together with my wife and business partner in Makkinga. Alongside my work on the dairy farm, I have been a Supervisory Board member at Agrifirm for the past six years. Before that, I sat on the Members’ Council for ten years. I am also active in various boards and smaller agriculture-related companies.

I am convinced that strong cooperatives in the Dutch agricultural sector are important for their members. Together, we create independence, perspective and returns. As Chairman of the Supervisory Board and the board of the Cooperative, I wish to use my knowledge and experience to continue to build a strong and future-proof organisation together with the other members of the Board and Supervisory Board. I am looking forward to this collaboration, so we can pass on the wonderful Agrifirm to future generations.

cast at agriculture. Restrictions in the availability of crop protection products and the pressure to work in an increasingly circular way are also making their mark on the sector. Agrifirm helps members to find solutions. A challenge that particularly affects the animal sector is the further shrinkage of the livestock population. The termination scheme seems effective and is leading to a considerable drop in the number of livestock farms in some regions. This will also affect Agrifirm. Fortunately, we can also see plenty of opportunities. There is definitely room for the members who are able to change course and adapt their farms to the requirements of society and the market. Cooperation between arable and livestock farming is essential for a sustainable future. Agrifirm is supporting them with concepts and advice. We are also seeing that prices for our members’ products, both animal- and plant-based, are at a higher level than in recent years. This offers good prospects.

Personnel developments

In December 2024, Arian Kamp said farewell to the board of the Cooperative and the Supervisory Board. Arian has been a member of these bodies for eighteen years, with the last seven years as chairman. From this same position, I would once again like to thank my predecessor for his commitment and contribution to further increasing Agrifirm’s professionalism.

The Executive Board gained a new CFO in April 2024. Margret Kleinsman decided to continue her career elsewhere after four years at Agrifirm. We filled this position with the arrival of Stefan Bulthuis. Stefan has built up an impressive (international) career, including at FrieslandCampina and as CFO of Prinsen Berning, a manufacturer of sports nutrition and dietary foods. We would like to thank Margret once again for her dedication and wish Stefan every success at Agrifirm.

After having led Agrifirm for a total of eight years, Dick Hordijk decided to continue his career elsewhere from 1 January 2025. Under Dick’s leadership, Agrifirm transformed into a company with a sustainable image. He contributed to the development of concepts and sustainable solutions that further help our members professionalise their businesses. We are very grateful to Dick for his achievements.

On 1 December, Piet Hilarides took over as the new CEO. Piet has built up a long career at FrieslandCampina, among others, and has a great deal of international experience in the agricultural sector at both cooperative and non-cooperative companies. We wish Piet every success in meeting the challenges we face as Agrifirm and look forward to working with him.

Healthy future

As members of Agrifirm, we own something special together: a cooperative with a rich history, built on the strength of cooperation, mutual support, trust and pride. Let us cherish this and join forces in these challenging times. The power of cooperation, trust and pride allow us to face the future together: together for a healthy future!

Gerben Smeenk

Chairman of the Supervisory Board of Agrifirm Group BV

Composition of the Supervisory Board

The Supervisory Board of Agrifirm Group BV forms a personal union together with the Board of the Coöperatie Koninklijke Agrifirm U.A.

On 31 December 2024, the Supervisory Board consisted of eight people, all of whom were Dutch nationals.

As at 31 December 2024, the Supervisory Board was comprised as follows:

Gerben Smeenk from Mak k inga (male, 10 April 1975)

Frank de Wildt from Roswinkel (male, 31 March 1978)

Kees v.d. Bos from Holwerd (male, 10 April 1956)

year of appointment: 2018 Due to stand down and eligible for reappointment in 2026

Deputy Chair First year of appointment: 2024

Due to stand down and eligible for reappointment in 2028

First year of appointment: 2017

member Due to stand down and eligible for reappointment in 2025

Iris Bouwers from Zuidwolde (female, 7 June 1993) Board member

Teun Smits from Wanroij (male, 10 June 19 6 4)

Xander We s s e l s from Hilver sum (male, 17 Febr uary 19 6 4)

Lizet Friesen-Leibbrandt from Rot terdam (female, 7 N ovemb er 1975)

Carin van Huet from Alblasserdam (female, 25 November 1968)

Arable farmer/pig farmer

First year of appointment: 2022

Due to stand down and eligible for reappointment in 2026 Arable farmer/pig farmer

First year of appointment: 2014

Board member Due to stand down and not eligible for reappointment in 2026

First year of appointment: 2015

External member Due to stand down and not eligible for reappointment in 2027

First year of appointment: 2016

External member Due to stand down and not eligible for reappointment in 2028

External member First year of appointment: 2024

Due to stand down and eligible for reappointment in 2028

Former CEO C aldic

Board of Coöperatie Topigs / Supervisory Board Topigs Norsvin CvD IKBNederland Sector Council Achmea-agro

Supervisory Board member of Stichting ISPT-AFT Member of the growers’ advisory council of

Agricultural farmer/pig farmer None

Vice-Chair of the Supervisory Board of A rc hroma (S wi tz erl an d)

Supervisory Board member of A c c s y s P lc (UK )

CF O IDH

CFO Coöperatie Koninklijke FruitMasters U.A.

Supervisory Board member of S tic hting Mac h e o Ne derl an d

Supervisory Board member of Amstelland hospital Chair of the Supervisory Board of the residential care organisation Stichting “Het Laar”

In March 2024, Frank de Wildt was appointed as a Supervisory Board member from among the members. In December, he was also appointed the new vice-chairman. He succeeds Gerben Smeenk, who was appointed chairman. Arian Kamp resigned as chairman at the end of 2024 after the end of his regular term. He was a member of the Supervisory Board for 18 years, with 7 years in the position of chairman. In September 2024, Carin van Huët joined the Supervisory Board as an external member. Lizet Friesen was reappointed in December of the same year.

Discussed by the Supervisory Board

The Supervisory Board met eleven times in 2024, once without the Executive Board. Every quarter, they discussed the financial reporting with the Executive Board. Other important topics included the developments and financial performance of the companies at home and abroad, the progress with and adoption of the strategic plan and the changes to the management team. In addition, (possible) acquisitions, divestments, locations, cooperative affairs and projects, talent development and leadership were discussed. The Board also explicitly focused on sustainability and other current societal developments. For example, the way in which Agrifirm wanted to use its specific knowledge and expertise to contribute to current themes was discussed on a regular basis. Examples include topics such as crop protection products, the nitrogen policy and the climate issue.

Evaluations

The Supervisory Board evaluated the performance of the Board, the committees and its members in the form of a questionnaire, individual interviews and joint discussions. The conclusions and recommendations, which relate in particular to the areas of workload, size, composition and profile of the board and its committees, will be discussed in more detail in 2025. The performance of the Executive Board was also evaluated. All the members of the Board and the committees were present at almost all the respective meetings.

Adoption of the financial statements

In its meeting on 14 March 2024, which was also attended by the external auditor, the Supervisory Board was informed about the 2023 financial result. On 26 March 2024, the Members’ Council adopted the 2023 financial statements and discharge was granted.

Supervision of the strategy

Agrifirm’s strategy is based on a responsible food chain for future generations. The Supervisory Board regards it as its task to ensure that strategic developments move forward at a sufficient pace, both financially and in the implementation of Agrifirm’s strategic ambitions. The transition to sustainable agriculture is taking place gradually, with Agrifirm in the vanguard. Innovation will play an important role here in the medium term, and the Supervisory Board can see good progress in this area. In its supervisory activities, the board pays a great deal of attention to maintaining the right balance: how can Agrifirm lead the way in the development of new solutions while at the same time providing excellent services and products for the challenges our members face on a daily basis, at the right quality and at a competitive price? This is the only way for Agrifirm and its members to work on the challenges of tomorrow, from a financially strong position today. In the Supervisory Board, the plans for a new long-term strategy were discussed in detail a number of times.

Committees

Within the Supervisory Board of Agrifirm Group BV, the following committees are active: an Audit Committee, Remuneration Committee, Appointments Committee, Nomination Committee and the Cooperative Affairs Committee (of the Board).

Audit Committee

In 2024, the Audit Committee consisted of Lizet FriesenLeibbrandt (chair), Gerben Smeenk, Carin van Huët and Kees van der Bos. The Audit Committee prepares for the Supervisory Board’s decision-making process concerning its supervision of the integrity and quality of the company’s financial and sustainability reporting, the effectiveness of the internal risk management and control systems, and compliance with laws and regulations. Among others, the tasks of the Audit Committee consist of:

> Discussing the internal audit plan, the internal audit charter, the internal audit reports and progress on actions.

> The annual discussion of the audit plan, the main risks for the annual reporting and the findings of the audit procedures for the financial statements and the annual report with the external auditor.

> Reporting to the Supervisory Board on the external auditor’s performance and procedures and providing advice on the appointment or reappointment of the external auditor.

The Audit Committee met five times in 2024. The Chief Financial Officer (CFO) of Agrifirm Group BV, the internal auditor and the external auditor were present at these meetings. During the meetings, the members of the management provided an explanation of specific topics such as: one-off write-downs, IT & cybersecurity, cost-saving programmes, CSRD regulations, purchasing, the internal control system and mandates, compliance with laws and regulations and risk management.

Remuneration Committee

In 2024, the Remuneration Committee consisted of Arian Kamp (chair), Gerben Smeenk, Xander Wessels and Lizet Friesen-Leibbrandt. This committee is tasked with preparing the decision-making by the Supervisory Board on the remuneration policy and the individual remuneration for the members of the Executive Board.

The Remuneration Committee met four times in 2024. The performance, the remuneration policy and the actual remuneration of the Executive Board were discussed at these meetings. Decisions regarding these matters were taken in the plenary sessions of the Supervisory Board.

Appointments Committee

The Appointments Committee makes proposals to the Supervisory Board on filling vacancies for members of the Executive Board. It also puts forward proposals for the profile and selection criteria for filling vacancies. In 2024, the Appointments Committee explicitly focused

on the selection and appointment of the positions of CFO and CEO, as well as two new members of the Supervisory Board.

Nomination Committee

In 2024, the Nomination Committee consisted of Arian Kamp (chair) and Teun Smits. In addition to these members of the Supervisory Board, the committee included Inge van Schie, Frank de Wildt (until his appointment as Supervisory Board member), Arjan Prins (from the Members’ Council) and Jos De Bie (from Agrifirm’s Central Works Council). The Nomination Committee advises the Members’ Council on new appointments and reappointments to the Supervisory Board. The committee met a number of times during the past year.

Cooperative Affairs Committee

In 2024, the Cooperative Affairs Committee consisted of Iris Bouwers (chair) and Kees van der Bos. Meetings of the Cooperative Affairs Committee were also attended by the Public & Cooperative Affairs director and the commercial director of Cooperative Affairs. The Cooperative Affairs Committee has the task of supervising and advising on the Cooperative policy. The committee discussed topics such as sponsorship, Members’ Council meetings and elections and the cooperative frameworks. Decisions regarding these matters were taken in the plenary sessions of the Supervisory Board. The Cooperative Affairs Committee met six times in 2024.

Other activities

> The customary meeting between the Chair of the Supervisory Board and the Central Works Council to discuss the company’s overall development also took place in 2024, as it does every year.

> The Supervisory Board members appointed from among the members are all connected with one of the Sector Councils, which act as a sounding board and advise on specific sectoral matters. They always have a presence at these Sector Councils on behalf of the Supervisory Board.

> The Youth Council meetings are always attended by a member of the Supervisory Board, at least for part of the meeting. Current developments in the company are shared and any questions, ideas and suggestions from the Youth Council are brought to the board by the Supervisory Board member if applicable.

Supervisory Board

Gerben Smeenk (Chair)

Kees van der Bos

Iris Bouwers

Lizet Friesen

Carin van Huët

Teun Smits

Xander Wessels

Frank de Wildt

2024 Financial Statements

Consolidated balance sheet as at 31 December

Consolidated profit & loss account

Statement of comprehensive income

Consolidated cash flow statement

Accounting policies used in preparing consolidated financial statements

Introduction and explanatory notes

These are the consolidated financial statements of Coöperatie Koninklijke Agrifirm U.A., established on 1 June 2010, having its registered offices in Apeldoorn, the Netherlands, registered in the Trade Register of the Chamber of Commerce in Apeldoorn under number 08226836. The core activities of the group are the production and sale of animal feed and the sale of various other products and materials for the agriculture sector.

For the year ending 31 December 2024, the Cooperative has had both the company financial statements and the consolidated financial statements drawn up in accordance with the statutory requirements of Part 9, Book 2 of the Dutch Civil Code and the Dutch Accounting Standards for Annual Reporting in the Netherlands as issued by the Dutch Accounting Standards Board. The financial statements have been prepared on a going concern basis. The financial statements have been prepared dated 13 March 2025.

General

The accounting policies adopted for the valuation of assets and liabilities and the determination of the result are based on historical costs. Unless stated otherwise,

assets and liabilities are shown at amortised cost price. An asset is included in the balance sheet when it is probable that its expected future economic benefits will accrue to the company and the value of these benefits can be reliably measured. A liability is included in the balance sheet if it is expected that its settlement will result in an outflow of funds and the amount thereof can be reliably measured. The income and expenses are accounted for in the period to which they relate.

Judgements and estimates

The application of the accounting policies and rules for the preparation of the financial statements requires the Executive Board of Coöperatie Koninklijke Agrifirm U.A. to make judgements on various matters and to make estimates that may be essential to the amounts recognised in the financial statements. The principal judgements and estimates, including the underlying assumptions, are a test of probable impairment of assets, deferred tax, stock provisions and other provisions. If necessary for the purposes of providing the insight required under Section 362(1), Book 2 of the Dutch Civil Code, the nature of these estimates and judgements, including the related assumptions, is disclosed in the notes to the relevant items in the financial statements.

Assessments of climate-related risks

The group has set itself the goal of making important contributions to sustainability. Both commercially, with solutions to support our customers, and in terms of our own business operations. The 3 KPIs of responsible sourcing, responsible operations and responsible solutions are the expression of this. In 2024, the group aimed to source 75% of the purchased raw materials responsibly, to reduce our direct and indirect CO2 emissions by 70% compared to 2019 and to ensure that 17% of the gross margin came from responsible solutions. In 2025, the KPIs will be harmonised with the new business strategy and the specific legal and societal needs.

The group has analysed what these objectives mean for the valuations of the assets in the financial statements. In addition, an analysis was carried out of which climaterelated risks could further influence the valuation of assets and liabilities in the balance sheet as at 31 December 2024.

At present, the biggest climate-related challenges are in the Dutch and Belgian markets.

To a greater or lesser extent, the government has announced measures or is already actively focusing on climate, water, nitrogen and nature. In both markets, the livestock population is expected to shrink (as a result of obligation).

Agrifirm is adapting to this and is working on a programme in both countries to adapt its footprint to a changing market or to become flexible. Given the progress on these plans, Agrifirm currently sees no reason to write off the values as justified as of 31 December 2024. In addition, the production assets are usually found in favourable locations, so that the market value in the event of divestment is higher than the book value and covers any write-offs on machinery.

The impact of responsible sourcing can potentially lead to a higher purchase value, but the group expects to be able to compensate for this in the market with the supplier or the customer.

As part of responsible operations, the group is choosing to make the leased cars more sustainable and to invest in the reduction of CO2 in production processes.

Ensuring the sustainability of leased cars will take place through replacement at the end of the contracts and therefore does not give any (surrender) risk. Assets that are replaced or closed have already been depreciated or written down to the residual value in the financial statements.

The group does not regard the shift towards the sale of responsible solutions as a threat. The targets and market development currently give no reason to identify a materially relevant impact on the current asset valuation.

Where impairment tests have been carried out on goodwill, land or buildings and machinery, the climate risk impact has been taken into account and not found materially relevant. From the point of view of further climate risks, no materially relevant impact on the financial statements is foreseen.

Where changing laws and regulations as a result of the climate have a direct impact on the operating costs of the group, this is provided for at the end of 2024 or included in the budget for 2025.

Consolidation principles

The items in the consolidated financial statements are determined in accordance with consistent accounting policies. Coöperatie Koninklijke Agrifirm U.A. and its group companies (hereinafter jointly referred to as Agrifirm) are included in the consolidated financial statements for the year ending on 31 December 2024. Group companies are legal entities and companies over which the company exercises control. The group companies are fully consolidated in the consolidated financial statements and all mutual balance sheet items, income and expenses within Agrifirm are fully eliminated. The financial statements of the group companies are drawn up for the same reporting year as that of the

parent company using consistent accounting policies. The initial consolidation or deconsolidation follows on the date on which control is obtained by Agrifirm, or the date on which control is transferred to third parties respectively. Profits and losses resulting from intragroup transactions are eliminated in full.

Non-controlling interests are presented separately in the consolidated financial statements. Non-controlling interests in group equity refers to the non-controlling interests of third parties in the equity of group companies. Non-controlling interests in the results of group companies are deducted from the group result in the profit and loss account. If the losses attributable to the minority interest exceed the minority interest in the equity of the group companies, the difference, as well as any further losses, shall be borne in full by Agrifirm, unless and to the extent that the minority shareholder has the obligation, and is able, to bear such losses. If the group companies subsequently return to profit, those profits will accrue in full to Agrifirm until the losses borne by Agrifirm are recovered.

Participating interests in group companies and minority interests

Coöperatie Koninklijke Agrifirm U.A. is head of the group. The participating interests are held via Agrifirm Group BV and are fully consolidated. Unless otherwise indicated, the participating interests are 100% owned.

In accordance with Section 379 and 414, Book 2 of the Dutch Civil Code, a list of the details of group companies and other interests associated with the financial statements has been filed in the Trade Register of the Chamber of Commerce, the Netherlands.

Agrifirm’s key group companies are as follows:

Holding and corporate services

> Agrifirm Group BV, Apeldoorn, the Netherlands

Europe

> Agrifirm NWE BV, Apeldoorn, the Netherlands

> BV Oldambt, Oostwold, the Netherlands

> Agrifirm Belgium NV, Grobbendonk, Belgium

> Agri-Activ NV, Onhaye, Belgium

> Nuscience Belgium NV, Drongen, Belgium

> Agrifirm Polska Sp zoo, Szamotuły, Poland

> Agrifirm Magyarország Zrt, Környe, Hungary

> Nuscience Iberica SA, Cassarubios Del Monte, Spain

> Nuscience Italia SRL, Reggiolo, Italy

> Nuscience Premix International DOO, Velika Plana, Serbia

> Cehave Korm Ltd (50%), Kyiv, Ukraine

> Nutrition Sciences NV, Drongen, Belgium

> NutriControl BV, Veghel, the Netherlands

> Welkoop Retail Holding I BV, Apeldoorn, the Netherlands

Asia

> Suzhou DKVE Animal Nutrition Co., Ltd, Suzhou, China

> Tianjin DKVE Animal Nutrition Co., Ltd, Tianjin, China

> Royal Agrifirm Jing An Research And Technical Application Training Center Co., Ltd, (90%), Hengshui, China

> Vitamex Shanghai Ltd, Shanghai, China

> Nuscience Singapore Pte Ltd, Singapore, Singapore

> Premix INVE Export NV, Drongen, Belgium

North and South America

> Agrifirm do Brasil Nutricao Animal LTDA, Taió, Brazil

> Agrifirm Uruguay SA, Montevideo, Uruguay

> Special Nutrients LLC, Wilmington DE, United States

Participating interests

Important participating interests held via Agrifirm Group BV which are excluded from the consolidation:

> Schothorst Feed Research BV (18.9%), Lelystad, the Netherlands

> De Lokalist BV (8.7%), Groenekan, the Netherlands

> Sto Posto DOO Beograd (35%), Belgrade, Serbia

> AgriDiam SARL (49%), Rouïba, Algeria

> Agrilakes Feed Co., Ltd (50%), Tianjin, China

The (former) Quartes NV and Agrifirm Belgium NV merged on 1 January 2024. As these were both 100%-owned participating interests, this merger does not affect the consolidated and company financial statements.

Application of Section 402, Book 2 of the Dutch Civil Code

Since the 2024 profit & loss account of Coöperatie Koninklijke Agrifirm U.A. is included in the consolidated financial statements, a condensed profit & loss account has been disclosed in the company financial statements in accordance with Section 402, Book 2 of the Dutch Civil Code.

Prior-year comparison

The accounting principles applied have remained unchanged from the previous year in all aspects material to the financial year.

Mergers and acquisitions

Acquisitions are recognised in the financial statements according to the purchase accounting method. This means that any assets and liabilities acquired are carried at fair value as at the acquisition date. The difference between cost and the company’s share of the fair value of the identifiable assets and liabilities acquired at the time of the transaction of a participating interest is recognised as goodwill.

Policies for the translation of foreign currencies

The consolidated financial statements are prepared in euros, the functional and presentation currency of the company. Each entity in the group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions denominated in foreign currencies are initially carried at the functional exchange rates ruling at the date of transaction. Monetary balance sheet items denominated in foreign currencies are translated at the functional exchange rates at the balance sheet date. Non-monetary balance sheet items that are measured at historical cost in a foreign currency are translated at the functional exchange rates ruling at the date of transaction.

Non-monetary balance sheet items that are measured at current value are translated at the functional exchange rates ruling at the date of valuation.

Exchange differences arising on the settlement or translation of monetary items denominated in foreign currencies are recognised in the profit and loss account, with the exception of exchange differences resulting from net investments in foreign activities, or from loans taken out to finance or effectively hedge net investments in foreign activities. These exchange differences are recognised directly in the foreign currency translation reserve. The foreign currency translation reserve is included under the legal reserves.

Exchange differences arising on the translation of non-monetary balance sheet items denominated in foreign currencies that are carried at current value are recognised directly in the revaluation reserve, provided the changes in value of the non-monetary items are likewise recognised directly in equity.

Goodwill and fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign activity are treated as assets and liabilities of the foreign activity and translated at the exchange rate ruling at the balance sheet date.

At the balance sheet date, the assets and liabilities of foreign activities are translated into the presentation currency (euros) at the exchange rate ruling at the balance sheet date and the income and expenses of these foreign activities in the profit and loss account are translated at the rates ruling on the transaction date for the year. Resulting exchange rate differences are recognised directly in the legal foreign currency translation reserve. On the disposal of a foreign activity, the cumulative exchange differences recognised directly in the reserves are recycled to the profit and loss account as part of the gain or loss on the sale.

Offsetting

Assets and liabilities are only offset in the financial statements if and to the extent that:

> an enforceable legal right exists to offset the assets and liabilities and settle them simultaneously; and

> the firm intention is to settle the assets and liabilities on a net basis or simultaneously.

Financial instruments

Financial instruments include loans granted, trade and other receivables, cash items, derivatives, loans and other financing commitments, trade and other payables.

Financial instruments embedded in contracts are recognised in accordance with the host contract.

Loans granted, trade and other receivables

Loans granted, trade and other receivables are carried at amortised cost, less impairment losses.

Loans and other financial obligations

Loans and other financial obligations are carried at amortised cost.

Fair value of financial instruments

The fair value of financial instruments traded on active markets as at the balance sheet date is determined by reference to quoted market prices, without deduction of transaction costs.

The fair value of financial instruments not traded on active markets is determined using appropriate valuation methods. Such methods include, among others:

> using recent market transactions between independent parties;

> reference to the current fair value of another instrument that is substantially the same;

> discounted cash flow analysis or other valuation models.

A list of fair values of financial instruments is included in the notes to the financial instruments.

Derivatives and hedge accounting

The group uses derivative financial instruments such as forward currency contracts and interest rate swaps to hedge its risks associated with interest rate and foreign currency fluctuations. Under Dutch Accounting Standard 290, on initial recognition, the group classifies the derivatives on a portfolio basis in the subcategories listed below.

Currency and forward commodity contracts

Forward commodity contracts with a listed underlying value will only be closed and held for own use. Agrifirm applies cost price hedge accounting in order to simultaneously recognise both the results from changes in the value of the currency and forward commodity contract (forward contract) and the future hedged transaction in the profit and loss account.

The group documents the following:

> the general hedging strategy and the way in which the hedging relationships are in line with risk management objectives and the expected effectiveness of these hedging relationships;

> the nature of the hedging instruments involved and hedged positions.

The application of cost price hedge accounting leads to the following exception to the above-mentioned accounting policies and accounting treatment for financial instruments. As long as the forward contract concerns an expected future transaction, the forward contract will not be revalued. As soon as the hedged position of the expected future transaction leads to the recognition of a financial asset or financial liability, the gains or losses associated with the forward contract are recognised in the profit or loss account in the same period in which the asset or liability affects the profit or loss. The results from the non-effective part of the hedging relationship are included in the profit and loss account immediately. If a forward contract no longer qualifies for hedge accounting, expires or is sold, the hedging relationship is terminated. The cumulative profit or loss that has not yet been included in the profit and loss account is recognised as deferred income/liability on the balance sheet until the expected transaction has taken place. Should the transaction no longer be expected to take place, the accumulated profit or loss is recognised in the profit and loss account.

Interest rate swaps

Interest received and paid in relation to interest rate swaps are accounted for in the profit and loss account in the period to which they relate. Unsettled interest income and expense is presented under receivables and accrued

income and current liabilities and accruals respectively.

If an interest rate swap no longer qualifies for hedge accounting, expires or is sold, the hedging relationship is terminated. The cumulative profit or loss that has not yet been included in the profit and loss account is recognised as deferred income/liability on the balance sheet until the expected transaction has taken place. Should the transaction no longer be expected to take place, the accumulated profit or loss is recognised in the profit and loss account.

Intangible fixed assets

An intangible fixed asset is recognised in the balance sheet if:

> it is likely that the future economic advantages inherent in an asset will accrue to the group; and > the cost of the asset can be reliably determined.

Intangible fixed assets are carried at the purchase value less annual straight-line depreciation over a maximum of ten years and any impairment losses. Impairment losses are accounted for if the realisable value is lower than the book value. The realisable value is the higher of the net selling price or value in use. Impairment losses and depreciation are directly accounted for in the profit and loss account.

Goodwill

Intangible fixed assets obtained in the acquisition of a group company are recognised against fair value at the time of acquisition. When the fair value of an intangible fixed asset cannot be determined by reference to an active market, the asset value is limited such that it does not create or increase negative goodwill. In the case of an acquisition, the negative difference between the acquisition price and Agrifirm’s share in the fair value of the identifiable assets and liabilities at the time of acquisition is recognised as badwill in the balance sheet. This badwill is released to the result in proportion to the occurring losses that were expected at the time of acquisition.

Goodwill is amortised over the estimated life with a maximum of five years for a commercial company and ten years for a production company as the starting point. This is based on the nature and foreseeable estimated life of the acquired business, the stability and foreseeable estimated life of the industry sector, as well as the estimated employment term of key persons and the extent to which the business depends on the existing management. Permitted adjustments to the purchase price result in an adjustment of goodwill. Subsequent adjustments to the fair value of identifiable assets and liabilities are reflected in goodwill, provided the adjustment is made before the end of the first full financial year after the acquisition.

Research and development

Research and development expenses are not capitalised, since in general the future benefits cannot be determined accurately.

Other intangible fixed assets

Other intangible fixed assets including software will be depreciated on a straight-line basis over three to ten years. Other intangible fixed assets include the capitalised external expenditures relating to the implementation of software within Agrifirm. A legal reserve amounting to these external expenditures is included under equity. Costs relating to intangible fixed assets not meeting the criteria for capitalisation (e.g. cost of research, internally developed brands, logos, trademark rights and customer databases) are recognised directly in the profit and loss account.

Tangible fixed assets

Tangible fixed assets are carried at the purchase value or cost of manufacture less depreciation based on the remaining expected useful economic life and the residual value of the asset concerned. In general, buildings are depreciated over a maximum of 25 years, plant and machinery over 10 years and other tangible fixed assets over 3 to 5 years.

In the event of an impairment of tangible fixed assets, they are valued at the realisable value if this will be permanently lower.

The realisable value of buildings and land is determined on the basis of expert appraisals. The realisable value of plant and equipment is determined on the basis of their value in use taking into account the future use of the assets concerned. Any immovable property that is not used directly for business purposes is stated at the lowest of its value determined in accordance with the same principles as in the case of land and buildings, or its lower realisable value. Maintenance expenditure is only capitalised when incurred and if the recognition criteria are met. The carrying amount of components to be replaced is then regarded as a disposal and recognised directly in the profit and loss account.

If a tangible fixed asset is taken out of use, impairment losses are taken into account. A tangible fixed asset is derecognised upon sale or when no further economic benefits are expected from its continued use or sale. The gain or loss arising on the disposal is recognised in the profit and loss account.

Impairment of fixed assets

At each balance sheet date, the group assesses whether there are indications that a fixed asset may be subject to impairment. If such indications exist, the realisable value of the asset is determined.

The realisable value is based on the cash-generating unit’s value in use at the balance sheet date. An impairment loss is recognised if the book value of an asset exceeds its realisable value;

the realisable value is the higher of the realisable value and the operating value.

The realisable value is initially derived from a binding sales agreement; if no sales agreement exists, the realisable value is determined using the active market with the prevailing bid price normally serving as the market price. The value in use is calculated with the present value method using cash flow projections derived from the budgets, approved by senior management, for a five-year period, extrapolated for subsequent years at a constant growth rate and discounted using the estimated discount rate. The cash flow projections contain assumptions and estimates of future expectations. The value in use is sensitive to the discount rate as well as the expected future cash flows and the growth rate used for extrapolation purposes.

An impairment loss is recognised directly as an expense in the profit and loss account while simultaneously reducing the book value of the asset concerned.

Financial fixed assets

Participating interests

Non-consolidated participating interests over whose financial and operating policies the group exercises significant influence are valued using the net asset value method. To determine whether there is significant influence, the financial instruments containing potential

voting rights are also considered. Under the net asset value method, participating interests are carried at the group’s share in their net asset value plus its share in the results of the participating interests and its share of changes recognised directly in the equity of the participating interests as from the acquisition date, determined in accordance with the accounting policies disclosed in these financial statements, less its share in the dividend distributions from the participating interests. The group’s share in the results of the participating interests is recognised in the profit and loss account. If and to the extent the distribution of profits is subject to restrictions, these are included in a legal reserve. The group’s share in direct equity increases and decreases of participating interests is also included in the legal reserve, except for asset revaluations recognised in the legal revaluation reserve.

If the value of the participating interest under the net asset value method has become nil, this method is no longer applied, with the participating interest being valued at nil if the circumstances are unchanged. In connection with this, any long-term interests that, in substance, form part of the net investment in the participating interest are included. A provision is recognised if and to the extent the group is liable for all or part of the debts of the participating interest or if it has a constructive obligation to enable the participating interest to repay its debts.

A subsequently acquired share of the profit of the participating interest is recognised only if and to the extent that the accumulated share of the previously unrecognised loss has been compensated.

Following application of the net asset value method, the group determines whether an impairment loss has to be recognised in respect of the participating interest. At each balance sheet date, the group assesses whether there are objective indications of impairment of the participating interest. If any such indication exists, the group determines the impairment loss as the difference between the realisable value and the carrying amount of the participating interest. This amount is recognised in the profit and loss account.

Participating interests over whose financial and operating policies no significant influence is exercised are carried at cost less any impairment. Dividend is designated as income and recognised under the financial income and expenses.

Results from transactions with or between nonconsolidated participating interests carried at net asset value are recognised proportionally. Results from transactions with or between non-consolidated participating interests carried at cost are recognised in full, unless they are effectively unrealised.

Receivables

Long-term receivables are carried at their amortised cost price less a provision for doubtful debts where necessary.

Inventories

Stocks of raw materials and consumables are carried at the cost of acquisition. The cost of acquisition includes the purchase price and the additional costs. However, if a negative result must be expected based on the insights existing as at the balance sheet date into the development of the sales prices of finished products, the value based on the purchase prices of raw materials is reduced to the possibly lower market value and a provision is established to cover all existing raw materials positions that have not been received physically. The cost price of any finished products, being their total production costs, are determined in accordance with the first-in-firstout (FIFO) method. Production costs include the direct expenses as well as part of the variable component of indirect production costs. The cost price of livestock is deemed to include all related variable expenses, Provisions are established for obsolete inventories and weight losses.

Receivables

Trade and other receivables are at first recognition recorded at their fair value and subsequently stated at amortised cost based less a provision for doubtful debts. The term of these trade and other receivables is less

than one year. Provisions are determined on the basis of individual assessment of the collectability of receivables.

Cash and cash equivalents

This refers to all cash and bank deposits at call. Cash and cash equivalents are stated at their nominal value.

Classification of equity and liabilities

A financial instrument or its separate components are classified in the consolidated financial statements as liability or as equity in accordance with the substance of the contractual agreement underlying the financial instrument. In the company financial statements, a financial instrument is classified in accordance with the legal reality. Interest, dividends, gains and losses relating to a financial instrument, or part of a financial instrument, are included in the financial statements in accordance with the classification of the financial instrument as liability or equity.

Third-party non-controlling interests

The third-party non-controlling interests are valued at the third parties’ share of the net asset value.

Provisions

A provision is recognised if the group has a legal or constructive obligation as at the balance sheet date and if it is probable that an outflow of resources will be required to settle the obligation and the amount of the liability can be reliably estimated. The amount of the

provision is determined based on a best estimate of the amounts required to settle the liabilities and losses concerned as at the balance sheet date. If the effect of the time value is material or the term is longer than one year, the provisions are carried at present value with the exception of provisions for pension and similar obligations which are based on actuarial calculations.

When a third-party reimbursement of expenses required to settle a provision is probable, the reimbursement is recognised as a separate asset.

Pensions

Group companies of Agrifirm have different pension plans in accordance with the local conditions and customs in the countries in which they operate. In general, these plans are funded by means of premiums paid to the insurance companies. The actuarial risks of these plans are borne entirely by the insurance companies. Only to a small extent, Agrifirm has some self-managed pensions with a very limited actuarial risk for which a provision has been made.

The amounts payable are recognised directly in the profit and loss account. The contributions that are still to be paid and to be received back are entered under current liabilities and receivables, respectively.

For obligations in addition to the contribution to be paid to the pension provider, a provision is included if at the balance sheet date there is a legally enforceable or factual obligation to the pension provider and/or

employee, it is likely that an outflow of funds is necessary for the settlement of this obligation and a reliable estimate can be made of the extent of the obligation. The provision for additional liabilities to the pension provider and/or the employees is based on a best estimate of the amounts required to settle the relevant liabilities at the balance sheet date. The provision is carried at present value if the effect of the time value of money is material (with the discount rate before taxation reflecting the market interest rate for high-quality corporate bonds).

A pension receivable in respect of surpluses available at the pension provider is recognised if the group has power of disposal over the surplus, if it is probable that it will yield future economic benefits for the group and if it can be reliably determined. A pension surplus is calculated using the same method as is used for provisions.

Non-current liabilities

When non-current liabilities are recognised initially, they are measured at fair value less directly attributable transaction costs.

After the initial valuation, non-current liabilities are carried at amortised cost using the effective interest method. Profit and losses are taken to the profit and loss account when the liabilities are derecognised, as well as through the amortisation process. Interest charges are recognised in the periods to which they relate.

Current liabilities

On initial recognition, current liabilities are carried at fair value and subsequently at amortised cost. Current liabilities have a term of less than one year.

Amortised cost

Amortised cost is the amount at which a financial asset or liability is measured at initial recognition less repayments of the principal, plus or less the cumulative amortisation determined using the effective interest method for any difference between this initial amount and the maturity amount, and less any reductions (effected directly or through a provision being formed) for impairment and doubtful debts.

Derecognition of financial assets and liabilities

A financial instrument is no longer recognised in the balance sheet if a transaction results in the transfer to a third party of all or nearly all the rights to economic benefits and all or nearly all the risks attached to the position.

Leasing

Assessing whether an agreement contains a lease is based on the economic reality at the inception date of the agreement. The agreement is regarded as a lease if the fulfilment of the agreement depends on the use of a specific asset, or if the agreement contains the right of use of a specific asset.

Amounts paid in accordance with operating leases are accounted for in the profit and loss account on a straightline basis over the term of the lease. Assets which are acquired under the terms of financial leases are stated at the lowest of the fair value or present value of the minimum instalments less accumulated depreciation. Financial lease commitments are accounted for under non-current and current liabilities.

Revenue

General

Net turnover represents the proceeds from the supply of goods and services, net of taxes levied on revenue and discounts etc. Amounts received by the group for its own account (as principal) are recognised as revenue. Amounts received by the group for third parties (as an agent) are not recognised as revenue.

Performance obligations

Revenue will be recognised per separate performance obligation. The nature of significant performance obligations and the method of allocating revenue to reporting periods is described below. See the paragraphs on the Sale of goods and Provision of services.

Transaction price

Revenue is recognised for the amount to which the group expects to be entitled in exchange for the transfer

of the promised goods or services. If there are several performance obligations in an agreement, the total transaction price shall be allocated to the performance obligations in proportion to the value of the performance obligations.

Reimbursements to customers purchasing goods and services Any reimbursements to be paid to customers of goods and services are processed as a reduction of the transaction price, unless payment to the customers takes place in exchange for distinguishable goods or services.

The revenue from goods and services supplied to third parties, less quantity discounts, other discounts, price adjustments paid to customers and excluding turnover tax, is recognised as net turnover. The member discount is a profit distribution and is therefore not deducted from net turnover.

Sale of goods

Revenue from performance obligations regarding the sale of goods are recognised in the profit and loss account when all the significant rights to economic benefits and all significant risks relating to the goods are transferred to the customer, the amount of revenue and the related costs can be measured reliably and the receipt of the revenue is probable.

Provision of services

If the amount of revenue of a performance obligation to provide a service can be estimated reliably and the receipt of the revenue is probable, the revenue relating to the service is recognised in proportion to the services provided.

Interest

Interest income is recognised pro rata in the profit and loss account. The effective interest rate for the asset concerned is taken into account, provided the income can be measured and is likely to be received.

Dividend

Dividends are recognised in the profit and loss account under financial income if the group is entitled to them and the dividends are likely to be received.

Operating grants

Operating grants are recognised in the profit and loss account in the year in which the subsidised expenditure is incurred, in which the reduction of income is recognised, or in which the operating loss is incurred for which the grant was received. The grants are accounted for as soon as there is reasonable assurance that the group will comply with the conditions laid down and will actually obtain the grant.

Share in the results of participating

interests

The share in the results of participating interests is the amount by which the book value of the participating interest has changed since the previous financial statements as a result of the group’s share in the earnings achieved by the participating interest.

Expenses

The cost of raw materials and consumables is recognised on the basis of historical cost. Foreseeable and other obligations as well as potential losses arising before the financial year-end are recognised if they are known before the financial statements are prepared and provided all other conditions for forming provisions are met.

Wages, salaries and social security contributions are recognised in the profit and loss account according to the terms of employment to the extent that they are due to either employees or the tax authorities. The group recognises an obligation if it has demonstrably committed to paying a termination benefit or transition payment. If the termination is part of a reorganisation, the group includes the costs of a termination benefit or transition payment in a provision for reorganisation costs.

Interest

Interest is allocated to successive financial reporting periods in proportion to the outstanding principal. Premiums, discounts and redemption premiums are allocated to successive accounting periods as interest charges such that, together with the interest payable on the loan, the effective interest rate is recognised in the profit and loss account, with the amortised cost of the liabilities being recognised in the balance sheet. Periodic interest charges and similar charges are recognised in the year in which they fall due.

Interest income is recognised pro rata in the profit and loss account, taking into account the effective interest rate for the asset concerned, provided the income can be measured and is likely to be received.

Taxes

Income taxes comprise both taxes payable in the short term and deferred taxes, taking account of tax facilities and non-deductible costs. No taxes are deducted from profits if and insofar as these can be offset against losses from previous years and a deferred tax asset had not been recognised. Taxes are deducted from losses if these can be offset against profits in previous years. In addition, taxes will be deducted if and insofar as it may be reasonably expected that losses can be offset against future profits.

Tax assets and liabilities are netted if the general conditions for netting are met.

Coöperatie

Koninklijke Agrifirm U.A. and all of its Dutch group companies in which a 100% participation is held, with the exception of some entities in which no activities are performed, form a fiscal entity.

Deferred taxes

If valuations for tax purposes differ from the policies described in this section and these result in deferred tax liabilities, a provision is recognised for these liabilities. Deferred tax assets are recognised for all deductible temporary differences and available carry forward of unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and the carry forward of unused tax losses can be offset.

Deferred tax assets and liabilities are measured by taking account of the tax consequences of the realisation or settlement of assets, provisions, liabilities and accruals as intended by Agrifirm and its group companies, at the balance sheet date. The deferred tax assets and liabilities are stated at the nominal rates that apply in the various countries and are carried at nominal value.

Deferred tax assets and liabilities are netted if the following criteria are met:

> the group has a legally enforceable right to set off current tax assets against current tax liabilities to the extent that these relate to the same financial year. > the deferred taxes are related to taxes on profits that relate to the same fiscal entity and are levied by the same tax authority.

Deferred tax assets are included under financial fixed assets and deferred tax liabilities are included under provisions.

Result from participating interests

The share in the results of the companies in which Agrifirm has a participating interest comprises Agrifirm’s share in the net result of these participating interests.

Cash flow statement

The cash flow statement has been prepared in accordance with the indirect method.

Cash and cash equivalents consists of cash at bank and in hand and cheques and bank acceptance drafts, presented as accounts receivable. Cash flows in foreign currencies are translated at average rates. Cash exchange differences are presented separately in the cash flow statement.

Income and expenses arising from interest, dividends received and taxes on profits are included under cash flow from operating activities. Dividends paid are included under cash flow from financing activities.

The acquisition price of the acquired group company and the sale price of the sold group company are included under cash flow from investment activities, insofar as payment has been made in cash. The funds available in these group companies are deducted from the purchase price or the sale price respectively.

Transactions for which no cash or cash equivalents are exchanged, including finance leases, are not included in the cash flow statement. Lease payments under finance leases are considered to be cash outflows from financing activities to the extent that they relate to repayment instalments and as cash outflows from operating activities to the extent that they relate to interest payments.

Notes to the consolidated balance sheet

(all amounts are in thousands of euros unless indicated otherwise)

Intangible fixed assets (1)

Changes in intangible fixed assets were as follows:

For an explanation of the impairment of goodwill and software, reference is made to the notes on tangible fixed assets.

Tangible fixed assets (2)

Changes in tangible fixed assets were as follows:

Assets not employed in business operations consist of land and buildings which were previously used for business purposes and that are currently vacant or (partly) rented by third parties. The assets not employed in business operations are largely related to the Dutch activities.

Based on changes in book value over time and the proceeds of similar property, it is anticipated that the

expected net proceeds of these properties will exceed the current book value.

The divestments predominantly relate to the sale of real estate. In 2024, the realised book profit amounted to €8.5 million (2023: €19.6 million).

The impairment of the (in)tangible fixed assets to the realisable value is the result of decreasing volumes for the cash-generating units in Belgium, Brazil, Poland and Uruguay. The realisable value is based on the cashgenerating unit’s value in use as at 31 December 2024. This value in use has been calculated using cash-flow projections for a period of five years. When determining the value in use of the cash-generating unit, future cash flows have been discounted at the following discount rate: Belgium 7.8%, Brazil 9.8%, Poland 8.0% and Uruguay 10.3%.

After the five-year period, the cash flows were

extrapolated at a growth rate of 2.1%. With regard to business premises and land with a book value of €9.7 million (2023: €10.2 million), the group does not have legal ownership but beneficial ownership based

Financial fixed assets (3)

Changes in the financial fixed assets were as follows:

upon financial lease contracts. For further information regarding these contracts, reference is made to the notes on financial leasing under non-current liabilities.

Participating interests

The investments in participating interests in the year under review, to the sum of €1.3 million (2023: €0.6 million), relate to participating interests valued at cost.

Other receivables

The other receivables mainly concern financing provided to customers. The short-term amount of the other receivables is €1.3 million (2023: €1.3 million).

Deferred tax assets and liabilities

Deferred tax assets mainly relate to tax losses carried forward (Belgium €14.1 million, China €2.1 million, Poland €3.4 million, Spain €1.5 million, Brazil €5.7 million and the United States €3.3 million) and temporary valuation differences. These deferred tax assets have been capitalised on the basis of expected taxable earnings in the future.

The nominal value of the deferred tax assets amounted to €14.7 million (2023: €11.9 million). The valued deferred tax assets increased in 2024 due to changes in the valuation of tax losses and changes in the differences between the commercial and fiscal valuation of assets and liabilities.

The deferred tax asset in the consolidated balance sheet is specified as follows:

temporary

At year-end 2024, Agrifirm had recoverable losses and temporary valuation differences amounting to €14.0 million (2023: €5.2 million) for which no deferred tax assets were recognised due to uncertainty regarding the future realisation of taxable profits. These recoverable

losses mainly relate to group companies in China and to some of the activities in Belgium, Brazil and Uruguay. Losses in China and Uruguay can be set off against future profits to a limited extent. Losses in the other countries mentioned can be set off against future profits without restriction.

Inventories (4)

Inventories can be specified as follows:

Receivables (5)

Receivables can be specified as follows:

The term of the receivables is less than one year. Trade receivables consist of the gross receivables to the sum of €214.0 million (2023: €223.6 million) less the provision for doubtful debtors of €25.3 million (2023: €27.7 million).

Cash and cash equivalents (6)

All cash and cash equivalents are available to the company on demand.

Non-controlling

interests

(7)

Equity

Changes in equity are elaborated upon in the company financial statements.

Non-controlling interests

Changes in non-controlling interests were as follows:

Provisions (8)

Changes in provisions were as follows:

The provisions are mainly of a short-term nature, except for the provisions for pensions and deferred tax liabilities.

The provisions for pensions relate to the actuarial value of pension liabilities not insured at third-party insurers or pension funds.

The provision for deferred tax liabilities mainly relates to differences between the commercial and fiscal valuation of assets and liabilities.

The restructuring provision relates to the projected cost of integration and restructuring of activities of various group companies. The provision has primarily been recognised to cover the cost of personnel reductions.

Included in other provisions are provisions for risks related to soil contamination, legal claims, losses on contracts with customers, losses on contracts with customers and claims relating to product liability.

Non-current

liabilities (9)

Changes in non-current liabilities are as follows:

Changes in book value

(De-)consolidations of participating interests

The Agrifirm Loyalty Scheme is a scheme for members only. Members can choose to invest their Member

Dividend/Member Discount in the Loyalty Scheme, which is subordinated to all other claims on Agrifirm. In 2024, Agrifirm pays an interest rate of 4% on the first €50,000 balance per account on the amount in the Loyalty Scheme; above that, the interest payment is 1%.

Other non-current liabilities include a financial lease obligation of €11.9 million (2023: €12.4 million) for the Graansloot cereal storage facility. The part of the financial lease obligation with a term of more than five years amounts to €9.6 million (2023: €10.1 million).

A €12.4 million (2023: €12.7 million) guarantee was provided to the bank of the lessor of the cereal storage facility. No security was provided for the other loans.

Current liabilities (10)

Current liabilities can be specified as follows:

The term of the current liabilities is less than one year. Other current liabilities consist mainly of invoices to be received.

Financing facility

The company has a financing facility with a group of banks (‘club deal’). During the term of the facility, amounts are drawn, funded and regular transactions take place at various banks included in the club deal.

As a result, at year end the positions with the banks involved in the club deal are recognised in the financial statements as a net position per bank involved.

The facility is granted in the form of a ‘multi-currency revolving credit facility’, under which amounts can be drawn up to a maximum of €200 million as long as

various ratios agreed upon with the banks have been met. Agrifirm Group BV and a number of group companies act as guarantor. The facility was made available as from 20 December 2021.

The facility has a term of five years and can be extended twice by a period of one year. The option to extend the term was used for the second time at the end of 2023.

The facility also has the option to be extended up to €250 million. The interest rate is based on the EURIBOR interest rate plus a mark-up.

Financial instruments

Forward contracts have been concluded to hedge the risk of price fluctuations of foreign currency. At the end of 2024, the fair value of the forward contracts was €249,000 positive (2023: €42,000 positive) due to a higher currency value than the prices agreed in the forward contracts.

Risks acknowledged by Agrifirm are as follows:

> Interest rate risk: The interest rate risk is limited to borrowings. Internal guidelines apply to hedging the interest rate risk, whereby it is possible to use interest rate derivatives. Agrifirm uses derivative financial instruments such as forward currency contracts and interest rate swaps to hedge its risks associated with interest rate and foreign currency fluctuations.

> Liquidity risk: Agrifirm monitors its liquidity position by means of liquidity forecasts. The management ensures

that sufficient liquidity is always available to meet the obligations and that sufficient financial scope remains among the available facilities to always remain within the specified banking covenants.

> Currency risk: Transactions in foreign currencies are recognised immediately at the exchange rate on the date of the transaction. Monetary assets and liabilities in foreign currencies are converted at the exchange rate at year-end. In the treasury guidelines, the agreement is that transaction risks will be hedged as much as possible.

Any translation risks are not hedged.

> Credit risk: The maximum credit risk is equal to the balance sheet value of the financial assets including derivative financial instruments. Agrifirm’s credit risk at financial institutions mainly relates to cash and cash equivalents.

The starting point of the credit risk policy for trade debtors is not to grant any credits to customers other than normal supplier credits as laid down in the applicable terms of delivery. The following measures are applied to limit the risk of default:

- the use of credit limits;

- claims should in principle be paid in accordance with standard delivery conditions;

- accounts receivable that are not paid on time are monitored and active reminders are sent;

- obtaining securities to cover outstanding accounts receivable;

- the use of debt collection agencies and

differentiation in collection methods for current and historical customers.

Off-balance sheet commitments

Securities provided

Bank guarantees were issued amounting to €1.2 million (2023: €0.6 million) for primarily allocated credit facilities. Guarantees for other parties were issued amounting to €4.7 million (2023: €5.3 million).

Guarantees as defined in Section 2:403 of the Dutch Civil Code have been issued by Coöperatie Koninklijke Agrifirm

U.A. on behalf of most of its Dutch group companies. The overview of these group companies is available for inspection at the Chamber of Commerce.

Other non-significant transactions with related parties took place under normal market conditions.

Rental, lease and other commitments

The composition of the total liabilities can be specified as follows:

Claims

Third parties have filed some claims against Agrifirm, the scope and settlement of which is currently uncertain. Further disclosures have been waived under Dutch Accounting Standards (RJ) 252.

Rent and lease of transport

As part of the normal business activities, contracts with purchasing and buying commitments are entered into with third parties.

Fiscal entity

Coöperatie Koninklijke Agrifirm U.A. and all of its Dutch group companies in which a 100% participation is held, with the exception of some entities in which no activities are performed, form a fiscal entity. As a result of this, Coöperatie Koninklijke Agrifirm U.A. can be held liable for tax liabilities of all the group companies that form part of this fiscal entity. At balance sheet date the total offbalance sheet tax liabilities of these group companies is nil (2023: nil).

Notes to the consolidated profit & loss account

Net turnover (11)

The breakdown of net turnover by activity is as follows:

Feeds, NL (Netherlands) 708,693 863,142

Agriculture and horticulture, NL 279,985 292,547

Other feeds and agriculture 332,889 448,037

Co-products 57,970 85,714

Premixes & concentrates 348,040 436,720 Retail 298,941 291,624

Other activities 24,203

The geographical breakdown of the net turnover is as follows:

Other operating income

Other operating income mainly refers to proceeds regarding logistic services rendered to third parties, income from the lease of tangible fixed assets to third parties, and income from the sale of predominantly real estate.

Personnel costs (12)

The breakdown of personnel costs is as follows:

Employees

Number of employees per activity (at financial year-end in FTE):

Transactions with related parties

An amount of €0.9 billion (2023: €1.2 billion) was supplied to and purchased from members of Coöperatie Koninklijke

Agrifirm U.A. Other than this, no noteworthy transactions with related parties took place in the year under review.

In the Netherlands, the implementation agreement with Centraal Beheer Algemeen Pensioenfonds became effective from 1 January 2019 for the majority of the activities.

The key characteristics are set out below:

> Membership of the company pension fund is mandatory for board members and employees of the company.

> Under this scheme, only the payment of the determined premiums is required. In no case is there an obligation to make additional payments or the right to a refund/ premium discount.

The number of FTE working in the Netherlands at the end of the financial year was 1,815 (2023: 1,885).

Remuneration of directors and supervisory board members

The details pursuant to Section 383(1) Part 9, Book 2 of the Dutch Civil Code (including pension costs) for directors of Coöperatie Koninklijke Agrifirm U.A. (also the Supervisory Board of Agrifirm Group BV) are as follows: €443,000 (2023: €416,000).

Depreciation, amortisation and impairment (13)

The breakdown of the depreciation, amortisation and impairment is as follows:

Other operating expenses (14)

The costs under other operating expenses mainly relate to freight, energy, maintenance and repair costs.

The cost of research and development amounted to €1.4 million (2023: €2.4 million).

Financial income and expenses (15)

The breakdown of the financial income and expenses is as follows:

Among other things, financial expenses relate to interest on current debt to credit institutions and interest on the Agrifirm Loyalty Scheme. Financial income relates to interest on long-term receivables from customers and receivables from credit institutions, among other things. The financial income and expenses also includes a sum of €0.2 million (2023: €0.8 million negative) due to negative exchange rate differences.

Taxes (16)

The total tax expense is €4.0 million (2023: €3.7 million), of which the current tax expense is €6.7 million (2023: €1.0 million) and the deferred tax gain is €2.7 million (2023: €4.7 million expense). Of the tax on the result, €4.1 million (2023: €5.4 million expense) relates to the Netherlands and a gain of €0.1 million (2023: €1.7 million gain) to foreign operations. The effective tax rate (-20.5%) differs from the nominal rate in the Netherlands (25.8%) because:

> The result from participating interests is not subject to taxation under the participation exemption in the Netherlands.

> Other permanent differences exist in the valuation of assets and liabilities for statutory and tax purposes.

> Different nominal tax rates exist in foreign countries.

> Uncertainty exists regarding the realisation of tax refunds on some losses and valuation differences, as a result of which no deferral is formed or for which the deferral is adjusted.

> Active and passive deferrals are formed through the

capitalisation of tax losses from previous years, based on improvement of results.

The reconciliation between the effective tax burden and the nominal tax rate applicable in the Netherlands is as follows:

The relatively high rates of deviations in the effective tax burden are mainly explained by the low pre-tax profit balance. As a result, individual causes have a relatively high deviation on the effective tax burden.

Minimum Tax Rate Act 2024

On 31 December 2023, the Minimum Tax Rate Act 2024 (Pillar 2) entered into force. This law ensures that multinationals and domestic groups with a revenue of at least €750 million are taxed at a rate of 15% on their profits in each jurisdiction in which they operate. This law applies to Agrifirm. Agrifirm is not liable for tax for 2024 under the Pillar 2 legislation. Use has been made of the mandatory exception regarding the processing of deferred tax assets and liabilities related to Pillar 2 income taxes.

Notes to the consolidated cash flow statement

Cash and cash equivalents increased by €26.3 million (2023: increase of €104.6 million). This change can be explained as follows:

Company balance sheet as at 31 December

Company profit & loss account

Accounting policies used in preparing company financial statements

These are the company financial statements of Coöperatie Koninklijke Agrifirm U.A., established on 1 June 2010, having its registered offices in Apeldoorn, the Netherlands. These financial statements have been drawn up in accordance with Dutch laws and regulations for financial reporting. The provision of Section 362(8), Part 9, Book 2 of the Dutch Civil Code that allows the same accounting policies to be used in drawing up the company financial statements as those used in drawing up the consolidated financial statements was invoked

For the accounting policies used for valuing assets and liabilities and drawing up the profit and loss account, we refer to the notes to the consolidated financial statements, unless the company financial statements already include explanatory notes for the relevant items reported there.

The exemption pursuant to Section 402, Part 9, Book 2 of the Dutch Civil Code was applied for the presentation of the company profit and loss account.

A list of capital interests, prepared in accordance with legal provisions, is available at the company’s offices and has been filed with the Trade Register.

Notes to the company financial statements

(17)

Shareholders’ equity (18)

Changes in shareholders’ equity were as follows:

The net result, amounting to €23.6 million negative, will be added to equity.

In February 2025, the Executive Board submitted a proposal to the Supervisory Board that no member discount and no member dividend should be paid out. During the adoption of the financial statements, in March 2025, the Members’ Council will ratify the proposed profit appropriation.

Currency differences arise due to the conversion into euros of the value of foreign participating interests. A legal reserve is retained for these differences. Due to currency translation differences, the reserve is

negative. The other reserves are not distributable up to this amount. A legal reserve has also been established to the amount of capitalised external expenditure for software development within Agrifirm.

Auditor’s fees

The fees paid to the auditor charged with conducting the audit are as follows:

The fees stated above for the audit of the financial statements are based on the total fees for the audit of the 2024 financial statements, regardless of whether the activities were already performed in 2024.

Fiscal entity

Coöperatie Koninklijke Agrifirm U.A. and all of its Dutch group companies in which a 100% participation is held, with the exception of some entities in which no activities are performed, form a fiscal entity. As a result of this, Coöperatie Koninklijke Agrifirm U.A. can be held liable for tax liabilities of all the group companies that form part of this fiscal entity. At balance sheet date the total off-balance sheet tax liabilities of these group companies is nil (2023: nil).

Events after the balance sheet date

There are no events after the balance sheet date to be reported in the financial statements.

Signing of the financial statements

Apeldoorn, 13 March 2025

On behalf of the Board of Coöperatie Koninklijke Agrifirm U.A.

G.H. Smeenk F. de Wildt Chairman Vice Chairman

K. van der Bos I. Bouwers

E.W. Friesen-Leibbrandt C. van Huët

A.C.M. Smits A. Wessels

Other information

Profit allocation

According to Article 30 of the Articles of Association of Coöperatie Koninklijke Agrifirm U.A., a proportion of any profit balance revealed in the profit and loss account of the adopted financial statements may be added to the reserves.

The Members’ Council shall decide on the allocation of the remaining balance based on a proposal presented by the board.

Independent auditor’s report

This translated version of the annual report from Dutch to English is provided for information purposes only. While every effort has been made to ensure the accuracy and reliability of the translation, discrepancies may exist between the translated content and the original Dutch text. In the event of any inconsistencies or discrepancies, the Dutch version shall prevail. This translation should not be considered a legally binding document. Readers are advised to refer to the original Dutch version of the annual report for precise information and understanding.

Appendix

Background information on sustainability reporting

Agrifirm aims to provide a well-balanced, reliable and clear impression of our approach and performance in the area of sustainability. This appendix to Royal Agrifirm Group’s 2024 Annual Report contains information on the management and reporting methods we use when preparing the sustainability data, results and themes.

Safeguards and implementation

Agrifirm’s Director of Public & Cooperative Affairs is in charge of the sustainability policy in the organisation. The progress of the implementation of this policy is discussed several times a year in the Global Leadership Team. The Global Sustainability Lead is responsible for implementing the sustainability policy at group level, sharing knowledge, setting out the policy lines, targeting the KPIs and monitoring and contributing to important sustainability debates in the agricultural sector.

Materiality

Our current sustainability strategy and initiatives are based on a materiality analysis, which helps us to understand the most relevant topics for our organisation. In 2022, we conducted a materiality analysis of our global operations to better understand and prioritise

the areas in which we have the biggest impact on the environment and society. We drew up a longlist of topics that are potentially materially relevant based on issues addressed in current and planned legislation and regulations, sector-specific standards, past materiality analyses and the materiality analyses of our competitors. This longlist contained topics relating to the environment, society and good governance (Environmental, Social, and Governance: ESG). We drafted a short description for each topic in the longlist, where possible making use of existing descriptions in legislation and regulations, existing standards and other such sources.

Based on the Global Reporting Initiative (GRI) definition, we identified the following relevant stakeholder groups for Agrifirm: supply chain parties, NGOs, public authorities, employees, members and customers, suppliers, advocacy groups, financiers and the Supervisory Board. To ensure proportionate input from the different parts of the world, we applied a ratio based on the net sales in 2021 in the countries in which Agrifirm operates. This meant that two thirds of the stakeholders we approached were based in or from the Netherlands or Belgium, while one third were based in or from the other countries in which we operate, such as China,

Brazil, Poland and Hungary. The stakeholders were sent an online survey and asked to rate the extent to which Agrifirm:

> has an economic, environmental or social impact on the ESG topic;

> can influence the ESG topic;

> by managing the ESG topic, can contribute to (more) successful business operations in the long term while paying attention to the interests of stakeholders and the wider community.

Stakeholders could assign one, two or three stars to each ESG topic. At the end of the survey, the respondent could suggest additional topics and confirm or change the score.

The results of the materiality analysis were plotted in a matrix. These were then discussed in in-depth interviews – one interview for each stakeholder group – and with the Executive Board. The most materially relevant topics were determined on the basis of the interviews and the reflection by the Executive Board.

Double materiality

In the context of the Corporate Sustainability Reporting Directive (CSRD), we carried out a double materiality analysis in 2024 and will report on this in detail in the 2025 annual report. This analysis forms the basis for CSRD-compliant sustainability reporting by Agrifirm and

emphasises our commitment, in collaboration with our stakeholders, to identify the most relevant ESG themes for our organisation.

Preparations for the CSRD

In 2024 and early 2025, we are preparing to implement the CSRD requirements. Among other things, this includes updating our sustainability strategy, refining our data collection processes, improving ESG disclosures and working with external auditors. By doing so, we wish to comply with obligations to obtain an auditor’s report with a ‘limited level of assurance’. These efforts are helping us to report more transparently and fully in a rapidly changing ESG reporting landscape.

Scope of the reporting process

This annual report contains qualitative and quantitative information about the year 2024. It covers the consolidated companies of Coöperatie Koninklijke Agrifirm U.A., with the exception of Welkoop Retail Holding BV. Welkoop has been excluded because of the company’s unique character. Welkoop has its own sustainability policy with associated measures. All the reported data relates to the consolidation scope. The sustainability information is collected separately from the financial systems. We aim to integrate data collection into the financial systems as much as possible in the future.

Reporting criteria

Where possible, we make use of the GRI Standards for reporting on the progress of our CSR KPIs. We have drawn up separate reporting criteria for some KPIs. In this case, the GRI KPIs are insufficiently aligned with our approach, our market and our business operations. The definitions and criteria that we apply for each KPI are shown below, along with the scope and any other details.

KPI: Responsible sourcing

Using risk assessments, we calculate whether a raw material comes from a high-risk or low-risk country. The risk assessments of the countries of origin are updated every five years by an independent party from the international agricultural sector. The risk of noncompliance with applicable laws and regulations is taken into account in the assessments. The outcomes

of our risk assessments are in line with the results of the Country Legal Compliance Assessment of the SAI Platform (2019). The assessments were updated by Control Union in 2021.

A given volume of procured raw materials can qualify as responsibly sourced in three ways:

> The raw material comes from a low-risk country (cultivation origin) according to the risk country list drawn up by Control Union.

> The raw material comes from a high-risk country (cultivation origin) according to the risk country list, but the volume of the purchased raw material is certified by means of a sustainability certificate. Only those certificates qualify that comply with the FEFAC Soy Sourcing Guidelines for soy, RSPO certificates for palm products and ISCC certificates for other raw materials.

> The raw material comes from a high-risk country (cultivation origin) according to the risk country list, but together with the supplier, mitigating measures have been taken in the supply chain. If the origin of a raw material is completely unknown, this raw material stream is not classified as ‘responsible’ until the origin can be determined. The following methods are used to determine the origin: own estimates based on our experience with the raw materials market, estimates based on discussions with the suppliers, and the contractually stipulated origin. We aim to include the origin (at the country level) as a requirement in all our

contacts with suppliers and to record this in our IT systems.

The in-scope raw materials of the KPI form 74.4% (2023: 69%) of the total purchased volume of raw materials for animal feed. In 2024, we purchased 3,059,000 tonnes of animal feed raw materials (2023: 3,603,000 tonnes), of which 2,274,509 tonnes (2023: 2,493,040 tonnes)

was in scope for the responsible sourcing KPI. For more information about our responsible procurement policy and the methodology used for risk assessments, please refer to the ‘2022 Responsible Procurement Policy’ drawn up by Agrifirm.

KPI: Responsible operations

For Agrifirm’s greenhouse gas emissions, we report our scope 1 and scope 2 emissions in line with the Greenhouse Gas Protocol. All production, office and storage locations of the consolidated companies of Coöperatie Koninklijke Agrifirm U.A. are in scope. This means that only joint ventures and minority interests are out of scope. Welkoop is also placed out of scope of the KPI because of the company’s unique character and Welkoop’s own sustainability report.

The emission factors were re-established in 2024 with the help of an external consultant. The new emission factors were introduced for 2025. In 2024, the impact of the new emission factors for all production sites was assessed. The effect was negligible (less than 1%

deviation) for almost all production sites, except for the production sites in Brazil and Ukraine. In both countries, the emission factor decreased significantly due to a higher share of renewable energy in the purchased electricity. In addition, the Zwolle production site was closed in 2024. This will be dismantled and will no longer produce animal feed.

The chosen reference year for our emissions reduction target is 2019. This is the last year for which no Guarantees of Origin (GOs) were purchased. The reference year is representative for the total of emissions and it was a normal, average production year. The 2019 emission profile can therefore be used as a reference profile. The emissions in the reference year will only be recalculated when production, office or storage locations are sold.

The emission of scope 2 emissions is calculated on the basis of the emission factors of contractual instruments such as GOs. This compensates for the CO2 emissions of the electricity for which a guarantee of origin for the same quantity has also been purchased.

The location-based method provides information on the average emissions in the place in which the electricity is consumed. The emissions are calculated using the average emissions intensity of the grid. For the purpose of transparency, Agrifirm reports both the market-based and location-based emissions in scope 2.

The reporting of greenhouse gas emissions includes CO2 emissions. The emissions of the gases CH4, N2O, HFCs, PFCs and SF6 are not included. The emissions relating to electricity are calculated on the basis of the purchased electricity. The emission factors are updated every year by an external consultant. The emission factors that apply in the country where the production, office or storage location in question is located are used in the calculation of the greenhouse gas emissions. The emission factors are updated at the start of each calendar year in the emission accounting.

In 2022, country-specific CO2 emission factors for gas were added to the emission accounting. This resulted in a specific and more precise calculation. It was decided to implement this change on a one-off basis for the emission calculation of the reference year and the previously reported year 2023. This will ensure the comparability of the figures.

The following sources are used for emission factors when calculating the reported figures (Bilan Carbone method):

Electricity:

> In the Netherlands: https://www.CO2emissiefactoren.nl;

> All production and storage locations outside the Netherlands: for electricity, the IEA’s 2023 electricity EFs

Gas:

> http://wds.iea.org/wds/pdf/gas_documentation.pdf

> https://www.CO2emissiefactoren.nl

For all other energy carriers (including steam), the emission factors from the Bilan CarboneTM Method BC V.8.9. are used.

KPI: Responsible solutions

In 2021, we developed a protocol to assess unambiguously whether a product, service or concept qualifies as a responsible solution. The development of the protocol was an internal process as the protocol had to be suitable for scoring the kinds of products, services and innovation projects that are found in the portfolio.

Commercial interests played a role here. In order to receive independent feedback on the protocol and the way in which this KPI is designed, an independent scientist evaluated the protocol in 2024. In 2025, we will be discussing the structure of this KPI with external stakeholders.

In the protocol, product marketing managers are asked to assess the impact of a product, service or concept on the six themes of the sustainability policy, e.g. the reduction in CO2 emissions when using the product. The positive or negative scores (-5,-3, -1, 1, 3, 5) for these six themes are combined to give an overall estimated impact score. A product, service or concept qualifies as a responsible solution if the overall score is positive and if it can be shown – using research results and data – that the product, service or concept performs better with respect to these sustainability themes than the ‘market standard’.

We have defined six strategic pillars in the food chain based on our activities, trends and challenges:

1. Sustainable incomes

2. Responsible and efficient production systems

3. Healthy animals

4. Sustainable, improved yields

5. Reliable supply chains

6. Climate-friendly production

A multidisciplinary team of employees will discuss the protocol and decide whether a product, service or concept is a responsible solution. This ensures that the protocol is assessed and applied in an unambiguous manner. If the multidisciplinary team gives a positive assessment, we monitor the gross profit margin of the product, service or concept. We calculate the gross profit margin percentage arising from the sale of responsible solutions by dividing the gross profit margin of all responsible solutions by Agrifirm’s total gross profit margin. When a product or service is approved, the gross profit margin of the entire financial year is included in the reporting of the KPI.

In 2024, we also decided to reassess each responsible solution within two years after its approval. This will allow us to keep each other focused and prevent certain products and services from being classified as responsible ‘forever’.

Acknowledgements

This is a publication of Coöperatie Koninklijke Agrifirm U.A.

Coöperatie Koninklijke Agrifirm U.A.

Landgoedlaan 20

7325 AW Apeldoorn, the Netherlands

+31 88 488 10 00

www.agrifirm.com

info@agrifirm.com

Ch. of Commerce 08226836

Design & realisation

Agrifirm DTP & Design

Text and contributions

Frank van der Vorst

Agrifirm Communications

Photography

Daniel Wenzel

Ivo Hutten

Linelle Deunk Photography

Marcel Bekken

Marnix Klooster

RM Fotografie

Wim Roefs

Adobe Stock

Glossary

Term Definition

RAG Royal Agrifirm Group

AVA Agrifirm Group General Meeting of Shareholders

CEE Central and Eastern Europe

Compound Feed International Feed produced according to the different growth stages of animals, different physiological needs and different production applications.

CSR Corporate Social Responsibility

EMEA Europe, Middle East & Africa

GLT Global Leadership Team

Governance Policy implementation, the auditing of this implementation, the distribution of power and the rules and principles of conduct.

LATAM Latin America

Monogastric Europe In the Netherlands, Agrifirm Monogastric supplies high-quality premixes, concentrates, mineral mixtures and additives for pig and poultry farming in the Netherlands, Belgium, Poland and Hungary in particular.

Plant-Based Solutions Agrifirm Plant-Based Solutions supplies high-quality cultivation products in the Netherlands for arable farming, flower bulbs, fruit cultivation, outdoor vegetables and agricultural contractors. We also advise and guide growers in achieving yields from their crops, among other things. In doing so, we take the rapidly changing laws and regulations into account.

PPO Pigs, Poultry & Organic

Ruminants NL Agrifirm Ruminants supplies high-quality feed, premixes, concentrates, mineral mixtures and additives for cattle, sheep and goats in the Netherlands. We also advise our customers on the application of products and develop new, sustainable feed concepts.

Specialties Worldwide, Agrifirm Specialties supplies nutritional products such as premixes, concentrates, mineral mixtures and additives for integrators, farmers and compound feed companies.