The strategic developments and the associated investment plans have been discussed with the Roto B.V. management. Staco’s strategic change project is closely monitored and the De Boer Staal en De Boer Snijbedrijf’s strategy for trading and cutting steel is also subject of discussion in the meetings of the Supervisory Board. Rotocoat has opted for a new building at the location in Heerhugowaard. Investments are made in pre-treatment and hot-dip galvanising so that the process can take place within a sustainable environment and lasts for years to come.

In 2020, the management of Roto B.V. continued to formulate the strategy and the associated objectives into dashboards for the organisation as a whole and per Business Unit. Partly based on these dashboards, the report to the Supervisory Board provides further insight into how the objectives are achieved based on the underlying KPIs. In this way it is presented as SMART as possible how Roto and the individual Business Units score on the topics Finance - Sustainability - Innovation - Digitalisation - HRM - Commerce - Marketing. Most KPIs and goals are the same across the group, supplemented with specific KPIs per Business Unit. It is good to see that the strategic themes are made transparent by means of these KPIs and are therefore the subject of the strategic discussions. The differences per Business Unit are transparent, whereby it can be established that one Business Unit has already developed further on a specific strategic theme and another Business Unit has taken steps within another theme.

“ Thanks to the efforts of many motivated employees, the ROTO companies were able to further strengthen their position in 2020.

In the regular meetings, based on the quarterly reports, operational affairs, safety, risk management, (the status of) investment plans, sustainability, the auditor’s management letter, IT management and innovation were discussed.

The performance of the management of Roto B.V. was also evaluated (reviewed) and in a separate meeting, the Supervisory Board evaluated its own performance. The conclusion of the Supervisory Board is that the management of Roto B.V. in 2020, ravaged by the coronavirus, has been extremely agile and has functioned well, despite the restrictive government measures. Although the self-assessment showed that the membership and expertise within the Supervisory Board is adequate to fulfil a critical supervisory role, the board and its new member Heleen Cocu-Wassink can give even more concrete substance to the human recourses challenges that exist in the manufacturing industry. This appointment also creates more diversity in the Supervisory Board.

On the basis of a critical, constructive approach the Supervisory Board will continue to engage in dialogue with the Roto B.V. management in a transparant and trusting manner.

The impact of the covid pandemic on the economy is enormous and, given the uncertainty, will have an effect if restrictions continue. As an extension of this, the impact is also visible at the ROTO companies, not only from a financial perspective, but also for the well-being of the nearly 800 employees who work at the ROTO companies. The Supervisory Board closely follows developments and is kept informed by the management of Roto B.V. of the consequences for the ROTO companies. ROTO’s financial position is robust, and the group has an extremely 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 consequences of the corona crisis, but also the nitrogen and PFAS developments with their influence on developments in the Dutch market, are difficult to assess in the longer term. Therefore, the results for 2021 are difficult to predict.

Thanks to the efforts of many motivated employees, the ROTO companies were able to further strengthen their position in 2020. The expected economic developments will still be reflected in the sectors where ROTO does business. The late-cyclical position of the activities will still affect the companies, which will make 2021 challenging as well. However, the management teams of the Business Units feel strongly committed to their mission, vision and strategy, which gives confidence. The Supervisory Board will continue to monitor developments critically in 2021 in order to perform its supervisory duties optimally and support Roto B.V.’s management.

Rik van Thiel, chairman of the Supervisory Board

Uitgeest, 9 April 2021

The Supervisory Board

Rik van Thiel, chairman Heleen Cocu–Wassink Ger de Kwaasteniet Coert Zachariasse