Schade Lagertechnik GmbH

Aumund Holding B.V.

Venlo

Konzernabschluss zum Geschäftsjahr vom 01.01.2021 bis zum 31.12.2021

Consolidated Annual Report 2021

CONTENTS

MANAGEMENT REPORT

1 Management report

CONSOLIDATED FINANCIAL STATEMENTS

1 Consolidated balance sheet as at December 31, 2021

2 Consolidated profit and loss account for the year 2021

3 Consolidated statement of comprehensive income

4 Consolidated cash flow statement 2021

5 Notes to the consolidated financial statements

6 Notes to the consolidated balance sheet as of December 31, 2021

7 Notes to the consolidated profit and loss account for the year 2021

8 Other disclosure

OTHER INFORMATION

1 Provisions of the Articles of Association relating to profit appropriation

2 Independent auditor's report

ATTACHMENTS

1 Financial position

2 Results

MANAGEMENT REPORT

1. Business Developments

The AUMUND Group with its comprehensive portfolio offers the well-known AUMUND products since 1922 as well as stockyard and blending bed technology of SCHADE Lagertechnik GmbH and mobile handling equipment of SAMSON Materials Handling Ltd.

Products of the AUMUND Group are installed in the cement, lime and gypsum industry, the metallurgy, mining and minerals industry, the power industry as well as in ports and terminals.

The AUMUND Group is active worldwide in more than 130 countries with subsidiaries in Germany, France, Great Britain, Brazil, Hong Kong SAR, PR China, USA and Representative Offices in Russia, Poland and Dubai.

Following the COVID slump in the first half of 2020, the global economy continued to recover in 2021. However, development within the year was split into two. The first half of the year saw a surprisingly rapid recovery process, with growth rates in numerous countries being overstated by base effects. In the second half of the year, economic development became increasingly sluggish. Pandemic-related setbacks and supply-side bottlenecks led to delays in the catch-up process. The COVID pandemic still had a noticeable impact on economic activity, but the waves of infection were more uneven and the packages of measures taken also differed. Some countries tolerated high infection levels without containment measures, while China pursued a strict zero COVID policy.

According to the International Monetary Fund (IMF), the global economic output grew by a price-adjusted 6.0 percent in 2021 as a whole, following the deep slump of 3.1 percent the year before. After several years of low inflation rates, this growth process was accompanied by unusually high price increases. Beyond base effects, the second half of the year saw large increases as fossil fuel prices drove energy costs and persistent supply bottlenecks drove transportation costs and the prices of various consumer and industrial goods. In the advanced economies, therefore, the recovery process was less smooth than expected. The intensified strains on global production networks affected them in particular, especially the manufacturing sector. In several countries, this meant that the growth figures initially forecast could not be achieved.

The AUMUND Group was able to increase order intake with more than 10% in 2021 Furthermore, the AUMUND Group maintained its supply chains as far as possible and, as a result of a balanced mix between AUMUND, SCHADE and SAMSON products, the group was able to grow its turnover by 6% compared to that of the previous year.

Key financial numbers

The consolidated sales of the AUMUND Group companies amount to € 197 million (2020: € 185 million), whereas the consolidated profit before tax for the business year amounts to € 16.8 million (2020: € 16.3 million). Sales is heavily depending on the size of individual projects in combination with the usage of the percentage of completion method (POC).

The equity ratio is solid with 45.4% at year-end 2021 versus 46.2%% at year-end 2020, the slight decrease is the result of a dividend payment in 2021 and an increased balance sheet total. Work in progress increased with € 1.8 million to € 11.6 million at year-end 2021 whereas work in progress under current liabilities decreased by € 3.0 million. Accounts receivable increased by € 9.7 million to € 47.8 million, mainly due to the timing of the completion of projects. Other receivables increased by € 2.9 million to € 9.2 million. Current liabilities increased with € 6.3 million to € 68.4 million. The cash position decreased, as a result, with € 10.3 million to € 31.7 million. The current ratio (current assets divided by current liabilities) is very healthy with 1.74 at year-end 2021 compared to 1.73 at year-end 2020.

The average number of permanent employees in 2021 was 435 (2020: 443).

2. Research and Development, Quality

In order to fulfill our commitment to first class performance with regard to quality, service and technology, the AUMUND Group continuously invests in research and development.

Experienced engineers in design, construction and production as well as in research and development, guarantee performance and quality, which is maintained on a high level for almost 100 years.

In 2021, R&D activities were further expanded, particularly in the areas of "Digitalization" and "Alternative Fuels". With new products such as tailored package solutions for industrial sensor technology or the AU-MILL®, we are not only following market trends, e.g. for online machine diagnostics or for reducing the CO2 footprint, but are also setting technological standards in this area and are therefore developing new business areas that complement our core competencies and core markets very well.

3. Corporate Social Responsibility

Corporate social responsibility is important to the Aumund Group. Our policies ensure that we rigorously adhere to the highest standards in ethical behavior, environmental sustainability, data security and more.

4. Outlook and Opportunities and Risks of Future Developments

The outlook for 2022 is associated with some uncertainty. The Russia/Ukraine situation has fundamentally changed the economic environment. In addition to the direct effects on the direct supply business due to sanctions in the form of lower sales, there are numerous and more far-reaching indirect consequences, particularly in Germany and neighboring European countries. These include higher prices for energy and raw materials, an even greater burden in the supply chains and, in general, increased uncertainty about future developments.

So far, the AUMUND Group has been able to offset supply chain issues with increased safety stocks and other measures to remain reliable. The increased energy prices have a limited impact on our facilities in Germany but do have, together with inflation in general, an impact on the purchase price of material and services within our business and our products as a result. The increased prices have been included in our price calculations for products in all markets.

Our business outside the cement industry has been expanding for many years now. As a result, the AUMUND Group continues to be a successful market participant in the metallurgical, the minerals and mining industry, the power industry, the lime and gypsum industry as well as in ports and terminals. Also in 2021 the Aumund Group continued this expansion and we will continue to do so in the future.

In general, due to our global presence and orientation in combination with a wide product portfolio, the AUMUND Group is able to compensate fluctuations in business resulting from regional, market or product related factors. These are assets for the sustainability of our status as a successful and leading specialist in the business of materials handling and storage technology.

AUMUND's flexible business concept and strong financial position prevent major problems during economic and financial crisis.

Currency Risk

The Group uses forward currency contracts in order to cover the foreign currency risks.

Derivative financial instruments involving speculation are not used by the AUMUND Group companies.

Credit Risk

In order to manage the credit risk, the Group companies usually require customers to make progress payments. Furthermore the Group companies also secure payments by using letters of credit.

Liability Risk

The AUMUND Group is covered by insurances mainly in order to be protected against a loss in assets and profits generated by liability risks or claims.

Outlook

The conflict in Ukraine led to further sanctions towards Russia and Belarus. Due to the dynamic and unpredictable development of the Ukrainian war, it cannot be ruled out that risks for the future economic development may arise. It is possible that projects cannot be delivered in the usual time or within the planned budget. There is also a risk that some projects in Russia may not be implemented at all in 2022, or that new orders may be lower than originally planned. As a result of the conflict, bank guarantees, letters of credit and, in some cases, bank transactions could no longer be relied on. For this reason, the order-backlog was analyzed and corrective measures were taken if required. The overall impact on our business is limited and offset by additional business in other regions.

Apart from the impact of the Russia/Ukraine situation and lockdowns in China as a result of COVID, the political situations in countries like Brazil, developments between the US, EU and China as well as economic sanctions against countries like Iran, have an impact on our business. Based on the current outlook of the global economy beyond 2022, in combination with the measures we took in 2021 and continue to take in 2022 in order to improve the performance of the business, we expect to improve our profitability in the years to come as well as a strengthening and a further expansion of our market position. This is based on our international business relations, our customer focused service, our top quality products, our activities in different industries and the support of our highly motivated employees.

As business in 2022 is beyond budget and exceeding previous year's level, we expect order intake and sales for the current fiscal year to be at least on previous year's level. As a result, we also expect a stable profit for fiscal year 2022. Due to supply chain constraints in combination with a higher order intake, working capital has increased. Higher safety stock levels in combination with increased positions in work in process have had an significant impact on the cash flow in 2022. In addition, per the 30th of September 2022, AUMUND Holding B.V. acquired Aumund Engineering Private Ltd. in India (a related company). The acquisition is predominantly financed with a loan for a period up to 4 years.

As to other investments plans, the investments are underway and will be further implemented in 2022 and 2023 in accordance with our defined Strategic Plan.

CONSOLIDATED FINANCIAL STATEMENTS 2021

Consolidated balance sheet as at December 31, 2021

Consolidated profit & loss account for the year 2021

Consolidated cash flow statement for the year ended 2021

Notes to the consolidated financial statements

Notes to the consolidated balance sheet as of December 31, 2021

Notes to the consolidated profit & loss account for the year 2021

Other disclosures

1 CONSOLIDATED BALANCE SHEET AS AT DECEMBER 31, 2021

(after appropriation of result, amounts in T.€)

2 CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR 2021

3 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(after appropriation of result, amounts in T.€)

4 CONSOLIDATED CASH FLOW STATEMENT 2021

The cash flow statement has been prepared using the indirect method (amounts in T.€).

Compilation cash

5 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

GENERAL

Activities

The activities of AUMUND Holding B.V. consist of taking on service tasks of organisation and management for companies belonging to the Aumund group, in particular the provision of services in the field of group controlling, internal audit, financing and serivces in the field of public relations, advertising and other marketing activities. Furthermore, the activities of AUMUND Holding B.V. are setting up, acquiring, participating in, cooperating with its subsidiaries and other undertakings and the management and possession of registered property.

The activities of AUMUND Holding B.V. and its group companies mainly consist of development, engineering, production and sale of material handling equipment.

Registered office, legal form and registration number at the chamber of commerce

The registered address of AUMUND Holding B.V. (statutory seat Venlo, Chamber of Commerce file 12046549) is Wilhelminapark 40 in Venlo.

Estimates

The preparation of financial statements in conformity with the relevant rules requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group's accounting policies. If necessary for the purposes of providing the view required under Section 362(1), Book 2, of the Dutch Civil Code, the nature of these estimates and judgments, including the related assumptions, is disclosed in the notes to the financial statement items in question.

Consolidation

LIST OF PARTICIPATIONS

AUMUND Holding B.V. in Venlo is the head of a group of legal entities. The overview of the data as required in accordance with Articles 2:379 and 2:414 of the Dutch Civil Code is included below:

^* The above marked limited liability companies take advantage of the exemption in section 264 (3) German commercial code (HGB)
^** The above marked partnerships take advantage of the exemption in section 264b German commercial code (HGB)

The subsidiaries in which AUMUND Holding B.V. participates directly are disclosed in the notes to the balance sheet under subsidiaries. The other subsidiaries are held indirectly.

Consolidation principles

Financial information relating to group companies and other legal entities which are controlled by AUMUND Holding B.V. or where central management is conducted has been consolidated in the financial statements of AUMUND Holding B.V. The consolidated financial statements have been prepared in accordance with the accounting principles of AUMUND Holding B.V.

Financial information relating to the group companies and the other legal entities and companies included in the consolidation is fully included in the consolidated fiunancial statements, eliminating the intercompany relationships and transactions. Third-party shares in equity and results of group companies are separately disclosed in the consolidated financial statements.

GENERAL ACCOUNTING PRINCIPLES FOR THE PREPARATION OF THE CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements have been prepared in accordance with Title 9 Book 2 of the Netherlands Civil Code.

Valuation of assets and liabilities and determination of the result takes place under the historical cost convention. Income and expenses are recognised in the financial year to which they relate. Profits are recognised when they have been realised. Liabilities and losses that originate before balance sheet date are recognised when they are known before the financial statements are prepared.

Foreign currency

Transactions in foreign currencies are stated in the financial statements at the exchange rate of the functional currency on the transaction date.

Foreign group companies and non-consolidated participations outside the Netherlands qualify as carrying on of business operations in a foreign country, with a functional currency different from that of the company. For the translation of the financial statements of these foreign entities the balance sheet items are translated at the exchange rate at balance sheet date and the profit and loss account items at the exchange rate rate at transaction date. The translation differences that arise are directly deducted from or added to group equity.

Pension obligations towards employees

The pension plans are financed through contributions to pension providers such as insurance companies, industry pension funds or company pension funds. The contribution payable to the pension provider is recognised as an expense in the profit and loss account. Based on the administration agreement it is assessed whether and, if so, which additional obligations exist. These additional obligations are included in a provision on the balance sheet. If the effect of the time value of money is material the obligation is valued at the present value. A pension receivable (other than contributions) is included in the balance sheet when the company has the right of disposal over the pension receivable.

Leasing

Operational leasing

The company may have lease contracts whereby a large part of the risks and rewards associated with ownership are not for the benefit of nor incurred by the company. The lease contracts are recognised as operational leasing. Lease payments are recorded on a straight-line basis, taking into account reimbursements received from the lessor, in the income statement for the duration of the contract.

Financial instruments

Financial instruments comprise both primary financial instruments, like receivables and liabilities, and derivatives. For the accounting principles applying to primary financial instruments, we refer to the principles for the relevant balance sheet items.

The company hedges significant risks for translation results on receivables and liabilities nominated in foreign currencies with forward contracts. The company applies hedge accounting on these derivatives. This means that, as long as the hedge is effective, changes in the value of the hedge instruments are only recognised as far as a change in value of the hedged items is taken into account, so that on balance no result is recognised. On an annual basis the company assesses whether the critical characteristics of the hedged item and the hedge instrument are identical, and have been so during the financial year. If this is not so, the ineffective part of the hedge relation is determined by comparing the fair value of the hedged item with the fair value of the hedge instrument. If this comparison results in a loss, this will be recognised in the profit and loss account.

ACCOUNTING PRINCIPLES APPLIED TO THE VALUATION OF ASSETS AND LIABILITIES

Intangible fixed assets

Intangible fixed assets are presented at cost less accumulated amortisation and, if applicable, less impairments in value. Amortisation is charged as a fixed percentage of cost, as specified in more detail in the notes to the balance sheet. The useful life and the amortisation method are reassessed at the end of each financial year.

In order to determine if there is any impairment of intangible fixed assets the reference is made to paragraph "Impairments of fixed assets".

Goodwill is the positive difference between the acquisition price and the actual value of the acquired assets less the liabilities and provisions of the acquired legal entity.

Tangible fixed assets

Tangible fixed assets are presented at acquisition price less accumulated depreciation and, if applicable, less impairments in value. Depreciation is based on the estimated useful life and calculated as a fixed percentage of cost, taking into account any residual value. Depreciation is provided from the date an asset comes into use. Land is not depreciated.

Financial fixed assets

Where significant influence is exercised, participations are valued at net asset value. The net asset value is based on the same accounting principles as applied in these financial statements. If the net asset value is negative, the participation is valued at nil and the negative net asset value is as far as possible deducted from the value of receivables that can be considered to be part of the net investment in the participation.

If the company fully or partly guarantees the liabilities of a participation with a negative net asset value, or has an constructive obligation respectively to enable the participation to pay its (share of the) liabilities, a provision is formed for the amount that is expected to be paid in this respect.

Upon initial recognition the receivables on and loans to participations and other receivables are valued at fair value and then valued at amortised cost, which equals the face value, after deduction of any provisions.

Deferred tax claims are calculated using the most recently enacted tax rates and valued at present value, the discount rate is 3%.

Impairment of non-current assets

On each balance sheet date, the company assesses whether there are any indications that a fixed asset may be subject to impairment. If there are such indications, the realisable value of the asset is determined. If it is not possible to determine the realisable value of the individual asset, the realisable value of the cash-generating unit to which the asset belongs is determined.

An impairment occurs when the carrying amount of an asset is higher than the realisable value; the realisable value is the higher of the realisable value and the value in use. An impairment loss is directly recognised in the income statement while the carrying amount of the asset concerned is concurrently reduced.

If it is established that an impairment that was recognised in the past no longer exists or has reduced, the increased carrying amount of the asset concerned is set no higher than the carrying amount that would have been determined if no impairment value adjustment for the asset concerned had been reported.

The Company assesses at each balance sheet date whether there is objective evidence that a financial asset or a group of financial assets is impaired. If any such evidence exists, the impairment loss is determined and recognised in the income statement.

The amount of an impairment loss incurred on financial assets stated at amortised cost is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate (i.e. the effective interest rate computed at initial recognition). If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss shall be reversed. The reversal shall not result in a carrying amount of the financial asset that exceeds what the amortised cost would have been had the impairment not been recognised at the date the impairment is reversed. The amount of the reversal shall be recognised through profit or loss.

Inventories

Stocks of raw materials and merchandise are valued at cost or at the lower net-realisable value. This lower net-realisable value is determined by the individual assessment of the stocks.

Finished goods are valued at the lower of cost of manufacture and net realisable value. This lower net realisable value is determined by individual assessment of the inventories. Cost of manufacture includes direct materials used, direct wages and machine costs and other direct costs of manufacture, together with applicable production overhead. Net realisable value is based on estimated selling price, less any future costs to be incurred for completion and disposal.

The valuation method for inventories is the weighted average cost price.

Work in progress on construction contracts

The balance sheet item work in progress on construction contracts is the balance of the project income realised until balance sheet date, if necessary taking into account a provision for expected losses, and the amount already billed to customers. The project income realised until balance sheet date is measured as the part of the total expected project income that can be allocated to the period until balance sheet date, based on the progress of the project until then. The progress of the project is determined based on the project expenses up to the balance sheet date in relation to the estimated total project expenses. If however the total project income, the total project expenses or the progress of the project as at balance sheet date can't be reliably estimated, the project income realised until balance sheet date is at the utmost equal to the realised project expenses, so that no profit is recognised for such projects.

Projects in progress for which the balance is a debit amount are presented as current assets. Projects in progress for which the balance is a credit amount are presented under short-term debt.

Project income realised in the financial year is processed as income in the profit and loss account (nett turnover entry). Project costs have been included in the costs of raw materials and consumables and in the cost of outsourced work and other external costs.

Receivables

Receivables are valued at nominal value, unless the cost price differs from the nominal value. In that case, receivables are valued at amortised cost. Differences between the cost price and the nominal value may be caused by (dis)agio or transaction costs. If necessary, impairments (including provisions for doubtful debts) are applied.

Cash at bank and in hand

Cash and cash equivalents are valued at nominal value.

Non-controlling interest

The share of third parties in the group equity concerns the interest of third parties in the nett asset value of consolidated companies. In the profit and loss account the share of third parties in the result of consolidated companies is deducted from the group result.

Provisions

General

A provision is recognised when the company has a present obligation as a result of an event originating before balance sheet date, when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Unless stated otherwise, provisions are valued at nominal value.

Post-employment benefit obligation

The companies AUMUND Fördertechnik and Schade Lagertechnik have built up pension rights for its employees, on the basis of the defined benefit plan. Since 1994 no commitments have been given to new employees. The pension provision is based on actuarial calculations.

Deferred tax liability

Deferred tax liabilities are calculated using the most recently enacted tax rates and valued at present value, with an interest rate of 0 to 4%.

Other provisions

Warranty provision

The warranty provisions have been created for any future claims made by customers. Any actual claims received as well as 0,5% of turnover are allocated to the provisions.

Non-current liabilities

Liabilities are valued at nominal value, unless the original amount differs from the nominal value. In that case, liabilities are valued at amortised cost. Differences between the orginal amount and the nominal value may be caused by (dis)agio or transaction costs.

Current liabilities

Liabilities are valued at nominal value, unless the original amount differs from the nominal value. In that case, liabilities are valued at amortised cost. Differences between the orginal amount and the nominal value may be caused by (dis)agio or transaction costs.

ACCOUNTING PRINCIPLES FOR THE DETERMINATION OF THE RESULT

General

The result is determined as the revenue from business activities and other income less the expenses and other cost attributable to the financial year taking into account the aforementioned valuation principles. Losses originating from events in the financial year are recognized as soon as they are foreseeable.

Net turnover

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to the buyer and both the revenue and the costs of the transaction can be determined reliably. The cost of sales is recognised in the same reporting period.

The income for services is included proportionally to the level in which the services were performed based on the costs for the service up to the balance sheet date in relation to the estimated costs for all services to be provided, if a reliable estimate is available. The costs for these services are accounted for in the same period.

Employee benefits

Benefits to be paid periodically

The benefits payable to personnel are recorded in the profit and loss account on the basis of the employment conditions.

Amortisation and depreciation

The depreciation of the intangible fixed assets is calculated using fixed percentages of the purchase price or the research and development costs based on the estimated useful life.

Depreciation for tangible fixed assets is based on the estimated useful life of the assets and calculated as a fixed percentage of cost, taking into account any residual value. Book results on the sale of tangible fixed assets are included in depreciation cost.

Future depreciation and amortisation is adjusted if there is a change in estimated future useful life.

Gains and losses from the occasional sale of intangible and tangible fixed assets are included in depreciation.

Financial income and expenses

Interest income and interest expenses

Financial income and expenses comprise interest income and expenses of loans for the current reporting period.

Translation differences

Currency translation differences arising upon the settlement or conversion of monetary items are recognised in the income statement in the period that they are realised, unless hedge accounting is applied.

Dividends

Dividends to be received from participations and securities not carried at net asset value are recognised as soon as AUMUND Holding B.V. has acquired the right to them.

Taxes

Tax is calculated over the result before taxation according to the consolidated profit and loss account using current corporate income tax rates, taking into account permanent differences between taxable profit and the profit according to the financial statements. Temporary differences between calculated tax and tax payable are expressed in deferred tax liabilities or receivables, taking into account that a deferred tax receivable is only valued as far as the company expects sufficient taxable profit to realize the receivable.

PRINCIPLES FOR PREPARATION OF THE CONSOLIDATED CASH FLOW STATEMENT

The cash flow statement has been prepared using the indirect method.

The cash consists of the cash and cash equivalents and securities.

Income and expenses related to interest, received dividend and profit taxes are included in the cash flow from operational activities. Dividend payments are included in the cash flow from financing activities.

6 NOTES TO THE CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2021

ASSETS

(amounts in T.€)

FIXED ASSETS

1. Intangible fixed assets

The goodwill was purchased when the company acquired the shares in AUMUND Fördererbau GmbH, Samson Materials Handling Ltd., AUMUND France SARL and Aumund International Ltd. and can be specified as follows:

The goodwill paid for AUMUND France SARL (T.€ 614) and AUMUND International Ltd. (T.€ 7) is completely amortized.

The amortisation period for goodwill is determined on the basis of the expected period, during which future benefits will flow to the receiving party.

The book value of the intellectual property rights at December 31, 2021 contains T.€ 1.041 self developed assets (December 31, 2020: T.€ 628).

Amortisation rates

2. Tangible fixed assets

Depreciation rates

3. Financial fixed assets

The actuarial reserve values have been calculated according to actuarial principles and have been allocated by insurance carriers.

Long-term ICMS tax credit

The long-term ICMS tax credit of Aumund Brasil Ltda. is calculated at present value and is estimated to be realised in the period from 2022 to 2032. The local tax authorities are not granting any interests on the tax credits.

Deferred tax assets

The deferred tax assets have been calculated using tax rates of 25 to 34%.

Other

CURRENT ASSETS

7. Cash at bank and in hand

The cash at bank and in hand are freely disposable.

EQUITY AND LIABILITIES

(amounts in T.€)

8. Group equity

Group equity share of the legal person

The equity as at December 31, 2021 can be specified as follows:

9. Provisions

The provisions are mostly long-term.

Post-employment benefit obligation

The value of the pension provision for the company pension scheme as of 31-12-2021 was calculated by the actuary and economic mathematician Harmut Karras and by GBG Consulting according to actuarial principles. Reinsurance policies exist for the benefit of the reporting company for the pension commitments granted.

Provisions for pensions and similar obligations are calculated in accordance with actuarial principles, taking into account Prof. Dr. Klaus Heubeck's 2018 G mortality tables, using the projected unit credit method. The valuation is based on an average market interest rate of 1,87% over the past ten years (2020: 2,3%), as announced by the Deutsche Bundesbank for a period of 15 years. The calculation is based on expected pension increases of 1 %. The high surrender values of the reinsurance contracts of T.€ 699 as of 31-12-2021 are reported under other financial fixed assets.

For the T.€ 195 other deferred employee benefits included in the total balance of T.€ 6,857 at December 31,2021 we refer to the disclosure below.

Other deferred employee benefits

In France, an obligation exists for the company to pay retirement indemnities to its employees at the end of their professional career. These are not pensions, but only one-off payments made when an employee finishes his or her career at the company. This obligation recorded from 2021 onwards, but was instead disclosed in the consolidated financial statements until 2020.

The current obligation is estimated at T.€ 204 as at December 31, 2021 (December 31, 2020: T€ 195) and is based on the following assumptions:

As at December 31, 2021 T.€ 9 (December 31, 2020: T.€ 9) of the obligation is externalized at an insurance company. The gap between the calculated obligation and the externalized part amounts to T.€ 195 at year-end.

Deferred tax liability

A part of the provision for deferred tax liabilities amounting to T.€ 628 has a term of less than a year. The nominal value of the provision is T€ 1,284.

The provision arises from the lower appraisal value of land and buildings paid for tax purposes (as part of the surplus value paid to AUMUND Beteiligungs GmbH upon the company's acquisition of the shares in AUMUND Holding GmbH) and is calculated based on the applicable tax rate of 15% from 2022 to 2036. The present value of the provision is calculated taking into account a term of 15 years and an interest rate after tax of 4%.

The provision also arises from the conversion of the work in progress valuation according to the accounting principles of the subsidiaries of AUMUND Holding B.V. to the percentage of completion method under Dutch GAAP. The provision is calculated based on the applicable tax rate of 25 to 30%.

The warranty provisions have been created for any future claims made by customers. Any actual claims received as well as 0,5% of realised turnover are allocated to the provision.

10. Current liabilities

Projects in progress

Amounts due to participants and to companies in which participation takes place

There was no interest charged.

Contingent assets and liabilities

Guarantees

As of December 31, 2021 guarantees have been issued for an amount of T.€ 33,698 (December 31, 2020: T.€ 34,663). The total credit line at year end amounts to T.€ 89,796 (December 31, 2020: T.€ 86,758).

For the guarantee facilities and credit lines of Schade Lagertechnik GmbH and Aumund Fördertechnik GmbH the following securities are provided:

Investment commitments

Investment commitments have been made in the amount of T€ 200.

Off-balance sheet commitments

Lease

The AUMUND group has entered into various rental and operational lease contracts. The total liabilities from these contracts amount to:

Less than 1 year: T.€ 1,449 (2020: T.€ 1,066)

1-5 years: T€ 1,947 (2020: T.€ 3,244)

Longer then 5 years: € 10 (2020: T.€ 0)

Total: € 3,406 (2020: T€ 4,309)

Financial instruments

Currency risks

Forward exchange transactions are concluded to hedge expected and existing currency receivables. In principle, the financing transactions are carried out with banks of the highest credit standing. These are macro hedges. The term of the forward exchange transactions corresponds to the expected payment dates of the underlying transactions. Hedging transactions and underlying transactions are presented in the balance sheet as valuation units (integration method). The critical match method was used to measure the effectiveness of the irrigation units.

The following contracts exist as at December 31, 2021:

As at December 31, 2021 the nominal volume is T.€ 9.404 (prior year T.€ 14.308) and the fair value is T.€ 410 (prior year T.€ -/- 341). The fair value was determined as the difference between the countervalue using the respective hedging rate and the countervalue using the closing rate.

Since the hedge and the underlying are congruent (critical terms match method), there are no effects on earnings for the consolidated financial statements (freezing method).

7 NOTES TO THE CONSOLIDATED PROFIT AND LOSS ACCOUNT FOR THE YEAR 2021

(amounts in T.€)

11. Net turnover

The revenues increased in 2021 compared to 2020 with 6.3 %.

The pension expenses are included in the social security charges

14. Staff

During 2021, 435 employees were employed on a full-time basis (2020: 443).

Audit fees

The effective tax rate is 24.6%. The applicable tax rate is 26.7%

The applicable tax rate is based on the relative ratio of the contribution of the group companies to the result and the tax rate applicable in the countries concerned.

The effective tax rate differs from the applicable tax rate as a result of:

19. Result attributable to non-controlling interests

8 OTHER DISCLOSURE

Subsequent events

The war in Ukraine led to further sanctions towards Russia and Belarus. Due to the dynamic and unpredictable development of the Ukrainian war, it cannot be ruled out that risks for the future economic development may arise. It is possible that projects cannot be delivered in the usual time or within the planned budget. There is also a risk that some projects in Russia may not be implemented at all in 2022, or that new orders may be lower than originally planned. As a result of the conflict, bank guarantees, letters of credit and, in some cases, bank transactions could no longer be relied on. For this reason, the order-backlog was analyzed and corrective measures were taken if required. The overall impact on our business is limited and offset by additional business in other regions.

Per the 30th of September 2022, AUMUND Holding B.V. acquired Aumund Engineering Private Ltd. in India (a related company). The acquisition is predominantly financed with a loan for a period up to 4 years.

Appropriation of the profit for 2021

The board of directors proposes to add the profit for 2021 of T.€ 12,617 to the other reserves.

This proposal has been processed in the annual account in advance of the adoption by the General Meeting.

Related party transactions

No significant transactions with related parties took place during the financial year under non-market conditions.

Signing directors board

OTHER INFORMATION

1 Provisions of the Articles of Association relating to profit appropriation

According to article 20 of the articles of association the profit is at the shareholders' disposal, provided that the company is only allowed to make dividend distributions as far as equity exceeds the total of issued share capital, statutory and legal reserves.

INDEPENDENT AUDITOR'S REPORT

To: the board of directors and shareholders

A. Report on the audit of the consolidated financial statements 2021 included in the annual report

Our opinion

We have audited the consolidated financial statements 2021 which are part of the financial statements of AUMUND Holding B.V., based in Venlo.

In our opinion, the accompanying consolidated financial statements give a true and fair view of the financial position of AUMUND Holding B.V. as at 31 December 2021, and of its result for 2021 in accordance with Part 9 of Book 2 of the Dutch Civil Code.

The consolidated financial statements comprise:

Basis for our opinion

We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are further described in the 'Our responsibilities for the audit of the consolidated financial statements' section of our report.

We are independent of AUMUND Holding B.V. in accordance with the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).

We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Consolidated financial statements as part of the (complete) financial statements

The financial statements include the company financial statements and the consolidated financial statements. The company financial statements have been included in a separate report. For a proper understanding of the financial position and result the consolidated financial statements must be considered in connection with the company financial statements. On November 30, 2022 we issued a separate auditor's report on the company financial statements.

B. Report on the other information included in the annual report

In addition to the consolidated financial statements and our auditor's report thereon, the annual report contains other information that consists of:

Based on the following procedures performed, we conclude that the other information:

We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements.

By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the consolidated financial statements.

Management is responsible for the preparation of the management board's report in accordance with Part 9 of Book 2 of the Dutch Civil Code and other information as required by Part 9 of Book 2 of the Dutch Civil Code.

C. Description of responsibilities regarding the consolidated financial statements

Responsibilities of management for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation of the consolidated financial statements that are free from material misstatement, whether due to fraud or error.

As part of the preparation of the consolidated financial statements, management is responsible for assessing the company's ability to continue as a going concern. Based on the consolidated financial reporting framework mentioned, management should prepare the consolidated financial statements using the going concern basis of accounting unless management either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Management should disclose events and circumstances that may cast significant doubt on the company's ability to continue as a going concern in the consolidated financial statements.

Our responsibilities for the audit of the consolidated financial statements

Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during our audit.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion.

We have exercised professional judgement and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements and independence requirements.

Our audit included among others:

Because we are ultimately responsible for the opinion, we are also responsible for directing, supervising and performing the group audit. In this respect we have determined the nature and extent of the audit procedures to be carried out for group entities. Decisive were the size and/or the risk profile of the group entities or operations. On this basis, we selected group entities for which an audit or review had to be carried out on the complete set of financial information or specific items.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control that we identify during our audit.

1 FINANCIAL POSITION

The consolidated balance sheet can be summarised as follows:

2 RESULTS

2.1 Development of income and expenses

The result after taxation for 2021 amounts to € 12,617 compared to € 11,584 for 2020. The results for both years can be summarised as follows:

2.2 Analysis of the result

The development of the result 2021 compared to 2020 can be analysed as follows: