Expectations

The consequences of coronavirus are impossible to predict. The management report has set out the main risks for ROTO. The uncertainties about the impact and duration of the measures required mean that it is impossible to make statements about the economic consequences for people and society.

ROTO has strong solvency and liquidity, and therefore a robust financial position. Given this, the management expects the organisation to be able to cope with the consequences of the virus with the support of the government's compensation measures. The financial consequences of the corona pandemic will have a significant impact on the course of business in 2020 and the accountability for the current financial year. This also means that the developments described below are likely to be completely overshadowed by the effects of coronavirus.

“TOGETHER flexible, TOGETHER strong!

Economic growth around the world, but certainly in Europe, is levelling off rapidly in 2020 due to coronavirus. The impact on the ROTO companies is slightly delayed because they generally operate at the end of the construction cycle. The trade restrictions, the trend towards declining international cooperation, coronavirus and, specifically in the Netherlands, the nitrogen and PFAS policies, are certainly not furthering economic growth.

The early months of 2020 are disappointing because of the ongoing fall in the zinc price. Partly because of significant production restrictions at the plants, steel prices have remained at the same level for the time being. ROTO will continue to focus on sustainability, innovation, digitalisation, HRM, commerce and marketing, and these matters will be at the heart of our internal and external communications in 2020. The KPIs developed on a group-wide basis mean that we now have a situation in which the numbers tell the story and so there will be a more intensive emphasis on these areas. Developments in society are encouraging ROTO to pursue this policy further.

Tom van Lindert and Ger de Kwaasteniet

Compliance with the 2020 budget will be a challenge. This budget assumes a positive result, depreciation of approximately € 5.5 million, stable working capital and more than sufficient cash flow to finance the planned investments from own resources.

In 2020, the Business Unit Surface treatment will expand its range of services and build a thermal spraying plant in Wolvega. The plans for the complete renovation of the pre-treatment in the galvanising plant in Heerhugowaard will be finalised in 2020. The Business Unit Grating technology is completing the improvements to its ERP program and, in line with its strategic focus on Create and Inspire, is taking the first steps towards an overhaul of its machine park. The Business Unit Zinc recycling is completing the investments in the renovation of its ERP system and the extraction fan for the furnaces. The Business Unit Steel and steel processing is further developing its investment plan and taking steps to modernise its ERP package. Approximately 1,500 solar panels will also be installed on the roof of the production hall in Uitgeest in 2020.

Ger de Kwaasteniet

In 2019 Ger de Kwaasteniet, the CEO of Roto B.V., indicated that, after more than 30 years of service, this is a good time to hand over to a successor. A new CEO is expected to be appointed in 2020. The management of Roto B.V., the Supervisory Board and the shareholders will be working as one man to ensure this process is completed smoothly.

The cultural values as formulated by ROTO continue to be an important anchor for the organisation. ROTO aims to be recognised as an enterprising family business with commitment and passion where reliability is central. Drawing on these cultural values, ROTO's goal is to establish a distinctive profile and deliver ongoing added value for its stakeholders.

Uitgeest, 27 March 2020

Roto B.V. Management Ger de Kwaasteniet, chief executive officer Tom van Lindert, chief financial officer

Expectations

The consequences of coronavirus are impossible to predict. The management report has set out the main risks for ROTO. The uncertainties about the impact and duration of the measures required mean that it is impossible to make statements about the economic consequences for people and society.

ROTO has strong solvency and liquidity, and therefore a robust financial position. Given this, the management expects the organisation to be able to cope with the consequences of the virus with the support of the government's compensation measures. The financial consequences of the corona pandemic will have a significant impact on the course of business in 2020 and the accountability for the current financial year. This also means that the developments described below are likely to be completely overshadowed by the effects of coronavirus.

“TOGETHER flexible, TOGETHER strong!

Economic growth around the world, but certainly in Europe, is levelling off rapidly in 2020 due to coronavirus. The impact on the ROTO companies is slightly delayed because they generally operate at the end of the construction cycle. The trade restrictions, the trend towards declining international cooperation, coronavirus and, specifically in the Netherlands, the nitrogen and PFAS policies, are certainly not furthering economic growth.

The early months of 2020 are disappointing because of the ongoing fall in the zinc price. Partly because of significant production restrictions at the plants, steel prices have remained at the same level for the time being. ROTO will continue to focus on sustainability, innovation, digitalisation, HRM, commerce and marketing, and these matters will be at the heart of our internal and external communications in 2020. The KPIs developed on a group-wide basis mean that we now have a situation in which the numbers tell the story and so there will be a more intensive emphasis on these areas. Developments in society are encouraging ROTO to pursue this policy further.

Tom van Lindert and Ger de Kwaasteniet

Compliance with the 2020 budget will be a challenge. This budget assumes a positive result, depreciation of approximately € 5.5 million, stable working capital and more than sufficient cash flow to finance the planned investments from own resources.

In 2020, the Business Unit Surface treatment will expand its range of services and build a thermal spraying plant in Wolvega. The plans for the complete renovation of the pre-treatment in the galvanising plant in Heerhugowaard will be finalised in 2020. The Business Unit Grating technology is completing the improvements to its ERP program and, in line with its strategic focus on Create and Inspire, is taking the first steps towards an overhaul of its machine park. The Business Unit Zinc recycling is completing the investments in the renovation of its ERP system and the extraction fan for the furnaces. The Business Unit Steel and steel processing is further developing its investment plan and taking steps to modernise its ERP package. Approximately 1,500 solar panels will also be installed on the roof of the production hall in Uitgeest in 2020.

Ger de Kwaasteniet

In 2019 Ger de Kwaasteniet, the CEO of Roto B.V., indicated that, after more than 30 years of service, this is a good time to hand over to a successor. A new CEO is expected to be appointed in 2020. The management of Roto B.V., the Supervisory Board and the shareholders will be working as one man to ensure this process is completed smoothly.

The cultural values as formulated by ROTO continue to be an important anchor for the organisation. ROTO aims to be recognised as an enterprising family business with commitment and passion where reliability is central. Drawing on these cultural values, ROTO's goal is to establish a distinctive profile and deliver ongoing added value for its stakeholders.

Uitgeest, 27 March 2020

Roto B.V. Management Ger de Kwaasteniet, chief executive officer Tom van Lindert, chief financial officer