Sustainability is essential

The current challenging and often unpredictable geopolitical situation only emphasis the need for solid strategy and risk management to ensure future success. As such, building on our ROTO Strategy House, our values as well as reporting and steering on broad value creation along the lines of the UN Sustainable Development Goals is key. A great example of how sustainability is anchored within the ROTO Family culture is our recent decision to incorporate the carbon shadow price within each investment decision. It is the Supervisory Boards strong conviction that a value driven, pro-active approach to sustainability is essential from both a risk management and entrepreneurial perspective.

ROTO’s growth through the successful acquisition of Prestia, as well as our autonomous growth in a dynamic world, emphasizes the need to further develop and strengthen our Business Units’ leadership and control. Together with the solid base of our ROTO Strategy House and our core values, this allows to stimulate entrepreneurship within the Business Units and remain agile and pro-active, close to our core markets and clients.

It is our strong conviction that a value driven, pro-active approach on sustainability is essential from both a risk management and entrepreneurial perspective.

Performance evaluation

The Supervisory Board has also assessed the management of Roto B.V. and concluded that the management of Roto B.V. in 2021 performed well, strategically by introducing the ROTO Strategy House and its core values and financially by delivering excellent financial results. The Supervisory Board will maintain an open and constructive dialogue with the management of Roto B.V. in an open and trusting manner and support them to the best of their ability.

In a separate meeting the Supervisory Board evaluated its own performance. Although the self-evaluation has shown that the expertise within the Supervisory Board is sufficient to fulfill a critical supervisory role, a new member with a focus on sales, marketing and branding during 2022 would be most welcome.

The year 2022 has started with the tragic and shocking events in Ukraine in full focus. The events affect many of our Family members personally, particularly in our Poland facility. The safety and well- being of our Family members, as well as our full support for those in need, can be counted on. On top of the human tragedy, the events have created a challenging volatility on the markets for commodities and energy and pose a challenging business environment. The fall-out of the Ukraine war and the subsequent sanctions on Russia, combined with the aftermath of the corona virus pandemic, potentially have enormous impact on the economy. It is impossible to assess the effect on developments in our core markets in the longer term. Therefore, the results for 2022 are difficult to predict.

We thank all our passionate and committed Family members that helped ROTO to further strengthen its position in 2021.

The Supervisory Board closely follows developments and is kept well informed by the management of Roto B.V. of the consequences for the ROTO Business Units. ROTO's financial position is robust, and the group has a strong liquidity position. This buffer gives Roto B.V.’s management the peace of mind to take adequate measures and to continue the strategic investment decisions to align the organisation for the future. The Supervisory Board will continue to monitor developments critically in 2022 in order to perform its supervisory duties optimally.

Entrepreneurial, reliable, passionate and committed

The Supervisory Board would like to thank all our passionate and committed Family members that helped ROTO to further strengthen its position in 2021. The volatility of the current economic developments will still be reflected in the sectors where ROTO does business. However, the management teams of the Business Units feel strongly committed to our ROTO Strategy House, which gives us confidence.

Uitgeest, 10 May 2022

The Supervisory Board Coert Zachariasse, Chairman Heleen Cocu-Wassink