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Notes to the company balance sheet as at 31 July 2025

18. Tangible fixed assets

The movements in the tangible fixed assets are as follows:

Amounts x € 1.000 Land and buildings Plant and machinery Other fixed assets Assets under construction Total
Acquisition costs 77.618 680.171 54.062 38.039 849.890
Cumulative depreciation and impairments -50.268 -527.307 -47.773 -1.006 -626.354
Balance as at 31 July 2024 27.350 152.864 6.289 37.033 223.536
           
Investments 416 5.472 499 47.022 53.409
Commissioning of assets under construction 1.059 29.270 1.576 -31.905  - 
Depreciation -1.820 -33.156 -2.590  -  -37.566
Impairment  -  -482  -  -1.043 -1.525
Reversal of impairment losses  662  1.467 866 407 3.402
Book value of disposals  -  0  -   -64   -64 
Balance as at 31 July 2025 27.667 155.435 6.640 51.450 241.192
           
Acquisition costs 79.093 714.913 56.136 53.093 903.235
Cumulative depreciation and impairments -51.426 -559.478 -49.496 -1.643 -662.043
Balance as at 31 July 2025 27.667 155.435 6.640 51.450 241.192
           
Depreciation period 0-25 years 10 years 3-10 years n/a  

Based on developments in the potato starch market, part of Avebe's assets have been written down to their recoverable amount in this financial year or in previous years. In the financial year, a previously recognized impairment on a production line was reversed. This reversal is based on a sustainable recovery of operational performance and market outlook. The reversal amounts to EUR 3.4 million and has been recognized in the income statement.

19. Financial fixed assets

A summary of the movements in the financial fixed assets is given below:

Amounts x € 1.000 Participating interests in
group companies
Other participating interests Receivables from group companies Other loans Deferred tax assets Total
Balance as at 31 July 2024 86.769 150 17.814 325 5.044 110.102
Additions and supplies  -   -  1.443 400  -  1.843
Repayments and withdrawals  -   -  -76  -   -  -76
Acquisition of a participation  -   22   -   -   -  22
Share in result of participation 4.950  -   -   -   -  4.950
Exchange rate differences -306  -   -   -   -  -306
Movement credited/debited to the result  -   -   -   -  -310 -310
Balance as at 31 July 2025 91.413 172 19.181 725 4.734 116.225

As of July 31, 2025, all carry-forward losses are valued at EUR 2.7 million (previous year: EUR 2.4 million). The deferred tax asset is formed on the basis of tax legislation whereby deductible losses from the past can be carried forward indefinitely. Temporary differences are valued at EUR 2 million (previous year: EUR 2.7 million). It is expected that an amount of EUR 0 of this amount on the balance sheet date will be realised within one year.

The following companies are included in (other) participations in financial fixed assets:

Name Location Participation in %
Aktiebolaget Stadex Malmö 100,00
Avebe America Inc. Princeton (actually Cranbury) 100,00
AVEBE Asia Pacific Holding B.V. Veendam 100,00
Avebe European Sales Centre GmbH Meerbusch 100,00
Avebe (Far East) PTE Ltd. Singapore 100,00
Société Avébé France SARL Evry 100,00
Avebe (Shanghai) Co. Ltd. Shanghai 100,00
Avebe Italia S.r.l. Milan 100,00
Avebe Japan Co. Ltd. Yokohama 100,00
Avebe Kartoffelstärkefabrik Prignitz/Wendland GmbH Dallmin 100,00
Avebe North America Inc. Dover (actually Cranbury) 100,00
AVEBE S.A. Barcelona 100,00
Avebe UK Ltd. London 100,00
Averis Saatzucht GmbH Visbek 100,00
Averis Seeds B.V. Veendam 100,00
GFL Anlagen KG Lüchow 100,00
GFL mbH Lüchow 100,00
Stichting Averis Veendam 100,00
Coöperatie JoinData U.A. Amersfoort 7,14
Breeders Trust S.A. Brussel 4,15

The Averis Foundation (Stichting Averis) was founded on March 9, 2022, to date no activities have taken place in Stichting Averis. On October 15, 2024, Averis Seeds B.V. became a shareholder of Breeders Trust S.A.

20. Inventories

The inventories valued at lower realisable value have a carrying amount of EUR 3.4 million on the balance sheet date (previous year: EUR 7.4 million). The total provision on inventories amounts to EUR 9.9 million (previous year: EUR 3.2 million). The provision relates to products that were made as a trial product, products that do not meet the set product requirements or products that are provided for based on the age of the product. 

The purchased emission rights included in the inventories have a carrying amount of EUR 7.8 million on the balance sheet date (previous year: EUR 6.3 million).     

21. Receivables

All receivables have a remaining term of less than one year.

A provision for bad debts of EUR 0.7 million has been deducted from trade debtors (previous year: EUR 0.6 million). This provision is determined on the basis of the collectability of the outstanding receivables. The fair value of the other receivables approximates the carrying amount due to their short-term nature.     

22. Shareholders' equity

  Total shares Value Total shares Value
Share Capital 2024/2025 2024/2025 2023/2024 2023/2024
Balance as at August 1  103.253   23.438   103.253   23.438 
Mutations shares  -   -   -   - 
Balance as at July 31  103.253   23.438   103.253   23.438 

During the financial year, 6,959 shares were transferred to other shareholders with the approval of the board of directors.
All issued shares have been fully paid up. The number of shares in-house is 19,495.

Share premium

Amounts x € 1.000 2024/2025 2023/2024
Balance as at August 1  19.848   19.848 
Received upon transfer of shares  -   - 
Balance as at July 31  19.848   19.848 

The share premium consists of a free part of EUR 19.8 million (previous year: EUR 19.8 million).

Legal reserve

The balance of legal reserve for translation differences is:

Amounts x € 1.000 2024/2025 2023/2024
Balance as at August 1  -6.184   -23.472 
Conversion differences foreign group companies  -306   315 
Exchange rate result of hedging financial fixed assets  259   -129 
Sale of participation in profit and loss account  -   17.102 
Balance as at July 31  -6.231   -6.184 

During the financial year 2023/2024, an amount of EUR 17.1 million of the translation differences reserve was included in the profit and loss account as a result of the sale of the Turkish subsidiary Avebe Nisasta Sanayii ve Ticaret Limited Sirketi.

Other reserves

Amounts x € 1.000   2024/2025   2023/2024
Balance as at August 1    210.185     202.205 
Cooperative result for the financial year  5.126     2.595   
Return on share premium  -     -   
Final payment to members for the financial year  -2.050     -1.038   
     3.076     1.557 
Other direct movements in equity    2.034     6.423 
Balance as at July 31    215.295     210.185 

Distribution of results

The board of directors, with the approval of the supervisory board, in anticipation of the adoption by the members' council, has proposed to distribute the cooperative result after tax as follows:

Amounts x € 1.000 2024/2025
Final payment for members 2024/2025  2.050 
Addition to other reserves  3.076 
   5.126 

The proposed appropriation of the result has been included in the 2024/2025 financial statements.

23. Provisions

The movements in the provisions are as follows:

Amounts x € 1.000 Transition Onerous
contracts
Disposal
costs
Anniversary Asbestos Total
Balance as at 31 July 2024 3.303 2.861 9.737 4.621 1.950 22.472
Addition 2.471 685  3.281  628  -  7.065
Withdrawals/releases -1.866 -2.861 -1.292 -591  -  -6.610
Balance as at 31 July 2025 3.908 685 11.726 4.658 1.950 22.927
             
Current part 3.096 685 1.400 670 250 6.101

The provisions are long-term unless stated otherwise.

Disposal costs

The provision for disposal costs concerns the expected expenses for the removal of waste streams at the Dutch Avebe locations. The estimate of this provision is based on applicable environmental regulations and a multi-year agreement with an external party for waste processing.

24. Debts to lending institutions

Refer to the notes to the consolidated financial statements.

25. Other debts

The other debts and accruals and deferred income have a term of less than one year. EUR 0.5 million is of a long-term nature. The fair value of the other debts approaches the book value due to their short-term character. Refer also to the notes to the consolidated financial statements.

Off-balance sheet commitments

Avebe has provided the following securities to the banks: right of mortgage on the property in the Netherlands and pledging of inventories and receivables in the Netherlands. These securities have been maintained.
 
Guarantees have been issued up to an amount of EUR 1 million. Of the guarantees issued, EUR 0.7 million relates to consolidated participating interests
 
The long-term commitments in connection with operational lease and rental agreements of mainly industrial buildings and warehouses amount to EUR 80.5 million, of which EUR 12.2 million matures within one year. An amount of EUR 39.1 million matures between one year and five years and an amount of EUR 29.2 million matures after more than five years.

Based on our cooperative model, there are purchase obligations for the purchase of potatoes. This concerns both delivery obligations and rights based on shares of our farmer members, but also contractual obligations with members and third parties. The size of these purchase obligations depends on the actual quantity and quality of the potato deliveries as well as the price to be determined for the upcoming campaign.
 
Avebe has entered into commitments worth EUR 27.8 million in the context of current investments.
 
Until 1992, Avebe used bills of exchange to pay potato money. An amount of approximately NLG 1.3 million (EUR 0.6 million) in bills from this period has not yet been collected. These bills are still subject to interest commitments.

Fiscal unity

Avebe, with its 100% Dutch participations, forms a fiscal unity for corporate tax purposes. Under the standard terms and conditions, the company and its affiliated subsidiaries are each jointly and severally liable for taxes owed by the combination and for the processing of taxes within the fiscal unity. The parent company makes payments based on the tax results of the Dutch participations.

Declaration of liability

Avebe has issued a declaration of joint and several liability as referred to in section 403, book 2 of the Dutch Civil Code in respect of one of its consolidated participations. The declaration concerns Averis Seeds B.V. in Veendam.

Subsequent events

For the disclosure of the events after balance sheet date refer to note "Subsequent events" in the consolidated financial statements.