Climate Change Data

Environmental Metrics

Social Achievements

• Invested in employee training in knowledge development, customer orientation, and entrepreneurship.

Climate Goals & Targets

Environmental Challenges

• Bad economic climate leading to downward pressure on turnover and margins.
• Initial costs for organizational adjustments.
• Overcapacity in the industry due to decreased demand for power supplies for telecommunication and lower investment levels.
• Price erosion.
• Insufficient compensation of margin pressure by cost savings or turnover growth.

Mitigation Strategies

• Sharpened strategy focusing on innovative products and product-market combinations with added value.
• Outsourcing of non-core activities.
• Additional cost savings.
• Concentration of activities on the European market.
• Sale of Chinese subsidiary Delong.
• Reduction of overhead costs.
• Outsourcing of production processes (10% time and salary reduction agreed with German works council and trade union).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Difficult market conditions leading to stagnant growth.
• Setbacks at the German subsidiary (iaE), requiring a major reorganization.
• Loss of a major customer at iaE due to a competing company formed by former employees.
• Serious health problems of iaE's director, requiring management changes.
• Quality problems with a supplier in the Renewable Energy segment.
• Changes in market structures in the Renewable Energy segment.
• Lagging order intake in the Defence and Railways segments.
• Stagnation in the low-frequency transformer market.

Mitigation Strategies

• Cost reduction of more than 10%.
• Strengthening of the sales team.
• Outsourcing of non-core activities.
• Expansion of the distribution network.
• Introduction of innovative products with higher added value at lower costs.
• Acquisition of new customers.
• Reorganization of the German subsidiary (iaE) (in progress).
• Reorganization of the Dutch subsidiary (in progress), including the sale of the low-frequency transformer business unit.
• Investigation of partnerships to strengthen the position in the Renewable Energy segment.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental impact
• Innovation

Environmental Achievements

• Further investments in international marketing of products within the mobility segment
• Successful roll-out of the new generation of shore power converter in 2006
• Successful battery charging system for caravans introduced in 2006
• Focused on inverters of 10 kW - 300 kW for various renewable energy projects in the field of wind, solar and fuel cell technology
• Investments in the technology for inverters for sustainable energy

Social Achievements

• Very low staff turnover
• Intensive cooperation between EXENDIS B.V. in the Netherlands and EXENDIS Deltronic Kft. in Hungary to address staff shortages

Governance Achievements

• Reappointment of Mr. B. Jankovich as Statutory Director of EXENDIS N.V. for a four-year period
• Change in the Executive Board at the Dutch subsidiary EXENDIS B.V.
• Transfer of the chairmanship of the Supervisory Board from Mr. J.B. Jankovich to Mr. Th.R. Bremer in 2007, in line with the Corporate Governance Code

Climate Goals & Targets

Environmental Challenges

• Margin pressure on electronic products due to cheap products from Asia
• Low order intake for defence products due to spending cuts and use of COTS products
• Difficulty filling vacancies at EXENDIS B.V. in the Netherlands, particularly in technical and commercial-technical areas

Mitigation Strategies

• Transformation into a niche player with innovative strength and a strong network
• Focus on product innovation and adding functionalities to products
• Intensive cooperation between Dutch and Hungarian subsidiaries to address staff shortages
• Repair and service activities for defence products

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: ISO 9001

Third-party Assurance: BDO CampsObers Audit & Assurance B.V.

Sustainable Products & Innovation

• New battery charger, Impuls S
• Battery management system (BMS)
• Battery charging system for caravans
• Inverters for renewable energy projects

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Invested €8 million in developing and rolling out environmentally friendly crop protection (Ceradis, later divested).

Social Achievements

• Appointment of female board members and commissioners based on merit.
• Employment of individuals with a distance to the labor market at Kersten (part of Morefield).

Governance Achievements

• Simple structure (one share one vote), absence of protective structures, and voluntary waiver of exit arrangements.

Climate Goals & Targets

Environmental Challenges

• Investments that, with hindsight, would not have been made.
• Mistakes in assessing the qualities and/or loyalty of some managers.
• Stock price lagging behind intrinsic value.

Mitigation Strategies

• Learning from past mistakes.
• Focusing on average return on effort and investment.
• Rewarding shareholders through dividends, capital repayment, share buybacks, and a super dividend.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Corporate social responsibility
• Sustainability

Environmental Achievements

• Renewi, a portfolio company, is a recycling champion reporting strong results despite lower recyclate prices.

Social Achievements

• Portfolio company Kersten is a CSR pioneer, leading in resource reuse and employing people with special needs; achieved PSO ladder 3.
• Value8 employs over 900 people across its majority-owned companies.

Governance Achievements

• Value8 implemented the Dutch Corporate Governance Code.
• Active policy on corporate social responsibility (CSR) at portfolio companies.

Climate Goals & Targets

Environmental Challenges

• Lower recyclate prices impacting Renewi's results.
• Subdued volumes in commercial waste sectors (construction and demolition) affecting Renewi.
• One-off charges and lower Q4 impacting Ctac's profitability.
• Challenging market conditions impacting Novisource's revenue.
• Lacklustre building market affecting AA Circular's turnover.

Mitigation Strategies

• Renewi's management team is focused on growth and increased profitability.
• Ctac's new CEO is focusing on growth with better margins and recalibrating strategy.
• Almunda is optimistic for 2024 based on continuing demand for healthcare professionals, opportunities due to the energy transition, and a recovery plan at Novisource.
• AA Circular management expects a substantial improvement in turnover and profitability in 2024.

Supply Chain Management

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Dutch Corporate Governance Code

Certifications: PSO ladder 3 (Kersten)

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed