Catom Annual Report 2023 EN

Catom B.V.

ANNUAL REPORT 2023

Catom B.V.

ANNUAL REPORT 2023

CONTENTS

1. Company profile 2. Mission and vision

6

12 20 30 53

3. Strategy

4. Management report 5. Financial statements

54 54 56 58 60 90 90 92 92

Consolidated financial statements

Consolidated balance sheet as at 31 December 2023 Consolidated profit and loss account for 2023

Consolidated cash flow statement for 2023

Notes to the consolidated balance sheet and profit and loss account

Company only financial statements Balance sheet as at 31 December 2023

Profit and loss account for 2023

Notes to the balance sheet and profit and loss account

6. Other information and Independent auditor’s report

102

Colophon

112

Catom B.V.

2006

2007

2008

2010

2009

Auction purchase of two petrol stations, a Shell station along the A27 and an Esso station along the N31.

Spectacular growth in wholesale.

Acquisition of Oliecentrale Nederland, distributor of Shell fuels and lubricants for the business market.

Catom wins Business Award.

2

2013

2014

2015

2016

2017

2011 2012

Acquisition of 33 petrol stations from Kuwait Petroleum Nederland B.V. with a joint turnover of nearly € 100 million.

New look and feel for OK stations. Acquisition of 3 petrol stations from Kuwait Petroleum. All truck management is done in-house.

Acquisition of 4 new petrol station locations, three of which are new builds. Acquisition of Stacy Olieproducten B.V.

Acquisition of Tamoil Direct landhandel,

Acquisition of 2 resellers, 3 domestic petrol stations and 1 petrol station abroad.

Van Scherpenzeel landhandel and 7 petrol stations.

3

2018

2019

2020

2021

2022

2023

Acquisition of 2 bunker suppliers, 2 resellers and 8 petrol stations.

Acquisition of 1 bunker lubricants supplier, 2 resellers and 8 petrol stations.

Acquisition of one reseller, 11 domestic petrol stations. Project started for design improvement and building processes for staffed and unstaffed OK petrol stations, OK Café.

Acquisition of oil company Rijmar B.V., including 7 petrol stations, extended investments in the existing petrol station network and 8 domestic petrol stations added to the network.

Acquisition of Slurink Bunker stations with 6 bunker stations on various shipping routes within the Netherlands and adding 7 new petrol stations to the OK network.

Acquisition of 8 new petrol stations added to the OK network, including 1 highway location, and the rollout of OK Grand Café at 3 locations. Modernisation of the Den Bosch depot and construction of an HVO tank.

4

1

Company profile

Catom is a fast growing company in the trade, distribution and sale of conventional and

renewable fuels and lubricants. The company focuses on four primary activities in the

downstream segment of the oil market: wholesale, sale through a network of trucks to

end users in the business market on land (reselling), sale through own fleet of bunker

boats and bunker stations to end users in the business market on water (reselling) and

operation of petrol stations with shops (retail). The major part of the turnover stems

from wholesale and reselling. In reselling, Catom is market leader in the Netherlands and

its ambition is to achieve that position in the other primary activities as well.

7

turnover (m euro)

Ebitda (keuro)

turnover (m euro)

Ebitda (keuro)

Catom was founded in 1998 by two entrepreneurs with extensive experience in the oil industry. Since its inception, the company has expanded explosively due to both takeover and autonomous growth. Turnover in 2023 reached 1.7 billion euros, a significant increase compared to 2022. Catom achieved healthy growth in virtually all business lines, making an above-average gross margin contribution with underlying positive developments. Catom is on top of the market and can react alertly to oppor tunities and threats. Catom has its head quarters in Breda and six regional sales

offices in Staphorst, Arnhem, Roermond, Heino, Tholen and Lelystad, with the two additional water-based main branches owned by Slurink in Dordrecht and Lobith.

8

net profit (keuro)

personnel

net profit (keuro)

personnel

Catom PDM is the trade name that Catom uses for all its wholesale activities. Reselling takes place in OK Oliecentrale – on land – and OK Marine – on water – and focuses on the sale and distribution of fuels, lubricants, coolants and AdBlue in the business-to business market. A key feature of 2023 was our cooperation with Slurink, a household name on the water distinguished for its service, quality and safety, with modern bunker points throughout the Netherlands. Petrol stations are operated under the OK brand name; they are characterized by a modern minimalistic design. For the shops at the petrol stations a new and very successful retail formula has been developed under

the name OK Retail. The company had a total of 792 employees at year-end, equivalent to 492 FTEs.

10

2

Mission and vision

Mission

Vision

Catom aims to play a leading role in the downstream segment of the Dutch oil market by providing energy for all. Here the customer is the central focus combined with competitive prices and a high level of service. Catom sources this energy from an indepen dent purchasing position with conventional fuel and renewable fuel suppliers. The 4 business units Catom PDM, OK Oliecentrale, OK Marine and OK Retail are interconnec ted and together they are stronger than the elements individually.

Catom believes in the power of being customer-oriented. Both its own organisa tion and the trading companies and petrol stations are geared towards ensuring that the customer experiences first-class service and competitive pricing. Catom’s specific customer culture is discernible at all points during the sales process, and this is how Catom distinguishes itself from traditional suppliers. Catom seeks to acquire market leadership in all segments it operates in, by continuing to develop. It wishes to fulfil this ambition by way of autonomous growth combined with acquisitions. Catom seeks to capitalise on opportunities arising on the one hand due to the major oil companies seeking to dispose of divisions and on the other hand because

13

smaller (family) firms – both oil traders and owners of smaller petrol stations – want to sell their business. Particularly in the latter segment Catom has seen increasing movements and opportuni ties over the past few years. Thanks to its size and the professional way in which acquisi tions are implemented and, where possible, integrated rapidly, with respect for all stake holders of the acquired companies, Catom has proved to be a reliable negotiating party and an attractive party for companies contemplating such a move. Expansion will predominantly remain focused on the Dutch market, which offers plenty of opportunities. Catom has shown that it is capable of mana ging explosive growth. In order to manage further expansion, Catom is investing in its management and its HR and IT systems. Catom’s organisation is compact and goal

oriented with a marked focus on cost management. Staff are encouraged by giving them a high degree of responsibility and opportunities to foster their personal development and growth. Catom has a sustainability policy that focuses on people and energy. This results in an active policy to strive for the highest possible sustainable employability for its employees. Furthermore, the company is innovative in a wide range of biofuels. The core values of Catom and its staff are dedication, ambition, flexibility, innovation and ownership. The organisation is keen to learn and willing to get better year in, year out, both in terms of results and in perfor mance towards the customer. The safety of people and their environment is a first priority for Catom in all of its activities.

15

Human First

Catom’s business operations are charac terized by many recurring processes, repetitive daily actions. Catom focuses on the details of these daily operations and considers each repetitive action as an opportunity for improvement. Every year, the company processes hundreds of thousands of orders, each of which are delivered and invoiced within 24 hours. In addition, well over ten million cash register transactions take place in its petrol stations on an annual basis. Therefore, it is crucial for Catom to focus on the details of daily operations. By constantly looking at and analysing every element in this chain of actions and then searching for improvements, the company strives for perfection in the entire process. Catom’s intention is to achieve this level of perfection and the road leading to it is a continuous creative process from day to day. Employees are therefore encouraged to look at the work process from that perspective.

This creative process is in some ways similar to the work of a visual artist, who also loves details and strives to an ideal. In this annual report, the works of art by Frank van Hemert, and his sources of inspiration, are the focal point. Psychic Portraits “ When I paint a portrait, my only motivation is to understand the essence of that person and to tell his or her story in colour. Because colour is able to be more precise than words.” The works of Frank van Hemert are represented in numerous museum, private and public collections. The versatility of his work – on both canvas and paper – speaks from many comprehensive series on the major themes of life.

Frank van Hemert Psychic Portrait Vincent van Gogh 2020, oil on canvas 165 x 134 cm

17

Frank van Hemert Psychic Portrait Alberto Giacometti 2020, oil on canvas 165 x 134 cm

3

Strategy

Strategy

Catom’s strategy is geared towards both autonomous growth and growth through acquisitions; the buy and build strategy. The company is anticipating substantial shifts in the Dutch oil market’s downstream segment. Major oil companies such as Shell, Exxon, Total and BP, the ‘majors’, are increasingly concentrating on upstream activities (oil exploration and production) and are seeking opportunities to dispose of downstream activities (marketing, distribution and sales). At the same time, smaller players in the market are struggling to envision the future and are increasingly opting to sell off their trading activities and petrol stations. Catom plays an active role in this consolida tion process. The company is in a position to take over these activities and to acquire customers who, as a result of the shifts, choose a new supplier. Catom is especially interested in trade, sales and distribution activities as well as petrol stations. The reorganisation of the downstream segment is expected to occur in the Nether lands over the next few years. Consequently, Catom discerns ample opportunities in the

coming years for growth and further acquisitions in the Dutch market.

For each of the four core activities, a targeted strategy is followed which fits in with a specific market conditions and opportunities within that segment.

Wholesale

Growth in wholesale activities will largely be autonomous. Catom will distinguish itself by means of more competitive pricing and a higher standard of service, enabling new customers to be attracted. Growth in recent years has resulted in the wholesale activities reaching such a scale that acquisi tions will also be able to bolster growth. A crucial aspect in acquisitions is to ensure the high and distinctive level of service and quality in order to sustainably retain the customers of the acquired company. In 2023, Catom increased its stock position and further expanded its Wholesale team as regards Supply, Trading and Bio in order to secure greater control of fuels logistics. The expectations are that this development will continue in 2024. Storage capacity and

21

Wholesale

Reselling

Retail

maintaining our own stock in conventional and renewable fuels provide strategic independence and greater flexibility, thereby ensuring better service provision to the customer.

thousands of active customers, with a total of about 300 million litres of fuel and well over 6 million litres of lubricants.

Retail

Reselling

The growth strategy for the retail activities is also primarily focused on acquisitions as well as new construction. Following the successful launch of the staffed OK Retail formula, the organisation continued the roll-out of the formulas in 2023 and standardised these formulas in buildings and shops. We want to give all our newly built and renovated petrol stations a uniform appearance and prominently establish the OK brand across the Netherlands. Customers will recognise

The reselling market is a 100% displacement market, which logically means, that growth will mainly be achieved through acquisitions. A large number of smaller businesses is active in this market. The challenge lies in identifying interesting parties among them that are open to collaborations or willing to sell their business to Catom. The ambition is to further expand our current market position over the next few years, with a market share of around 20% based on

22

Catom reinforces its Top-5 position in the Dutch WHOLESALE market, for example with

MORE OWN STOCK and INDEPENDENT PROCUREMENT.

Further strengthened its MARKET LEADERSHIP in RESELLING. FASTER CONSOLIDATION in

reseller’s market will provide OPPORTUNITIES for further growth.

RETAIL VOLUME INCREASED BY 31%. Number of PETROL STATIONS +8

elements such as the awning, the pumps, the shop exterior, the OK shop and the OK Café. In 2023, the OK Grand Café concept was added at three sites. The brand new OK Grand Café makes refuelling an experience. It offers extensive facilities not only for vehicles but for customers as well. The kitchen serves not only excellent coffee but also high-quality meals throughout the day. Developments in both the upper and lower ends of the market are playing a role in this division too. Major companies are expected to eventually sell a significant portion of their petrol stations, while smaller players with one or a limited number of stations are

In recent years, Catom has proved itself to be a serious partner to both sides of the market.

Financing

The company is highly interested in acquisitions and in practical terms is capable of financing these from its own balance sheet position.

contemplating their continuity and considering selling their station(s).

23

Wholesale

Management

Almost half of Catom’s turnover is achieved through its wholesale trade in petrol, diesel, gas oil GTL, HVO, diesel with a percentage of biofuels, and petroleum, by way of its subsidiary Catom Distribution, under the trade name Catom PDM. Catom PDM purchases these bulk products on the open market and sells to oil traders, petrol stations of small independent chains and individual petrol station operators in the Netherlands. Sale prices are set on the basis of market developments and communicated to the customer several times a day. Customers of Catom can use a special pass to load products at almost all depots in the Netherlands, in line with their needs. Catom also supplies its own reselling operations and petrol stations through these wholesale activities. Catom stands out from other players in this market by its greater flexibility and cost efficiency. By combining fuel volumes

competitive pricing can be achieved for customers. With more than 90 buyers and a volume of over 1.7 billion litres of fuel per annum – including its own reselling and retail volumes – Catom’s wholesale activities have a market share of 5 to 10%. Catom PDM has been active in this market since its inception in 1998 and has achieved its current market position mainly through autonomous growth. Catom has a purchasing position at virtually all depots in the Netherlands through long-term contracts. In addition to this, the company has its own stock locations; storage capacity at its own depot in ‘s-Hertogen bosch and rented at several depots at other locations nationwide. The company has an excise permit and expertise in the field of biofuels, which are essential conditions for competitively participating in the trade of this commodity market.

Jan Willem Westerhuis (1961) Founder and director of Catom B.V., he studied business administration and started his career at Esso Benelux in Breda. For eleven years he was primarily involved in downstream activities. During this time, he met Rik de Leeuw den Bouter, with whom he founded Catom B.V. in 1998.

24

Reselling

Water-based activities are carried out by OK Marine, a Catom subsidiary, from offices in Lelystad and Tholen, and Slurink from its main branches in Dordrecht and Lobith. With a network of 6 modern bunker stations and 19 bunker vessels throughout the Netherlands, OK Marine is one of the biggest and most professional parties in water-based trade. OK Oliecentrale and OK Marine distinguish themselves by their service levels. Both of them have professional and customer oriented organisations with 24/7 services. The sales staff are knowledgeable and advise customers on complex issues pertaining to logistics over land and water, lubricating schedules, maintenance and product characteristics. From the Heino location, in-house developed services receive KIWA certification, including the installation of stationary fuel tanks and the inspection and maintenance of mobile fuel tanks.

Reselling involves the sale of fuels and lubricants to large, medium and small users in the business market. With a market share of over 20%, Catom is market leader in this segment. Until the end of 2017, the reselling activities primarily focused on land-based operations, serving customer segments such as agricultural companies, local and regional authorities, utility companies, construction firms, garages and haulage companies. Operating under the name of OK Marine, we serve customers on the water, in marine contracting, as well as in the shipping, fishing and cruise industries. Subsidiary OK Oliecentrale is the largest distributor of Shell fuels and lubricants in the Netherlands. Also, OK Oliecentrale is active in the reselling market on land under the brand name OK. The company has branch offices in Arnhem, Heino, Breda, Roermond and Staphorst.

25

For the purposes of transporting fuel and AdBlue in the reselling market, OK Olie centrale has 71 trucks in service, all owned by the company. OK Marine owns five vessels and the Batavia port in Lelystad is one of our OK Marine locations. Leisure boats can refuel there with diesel or GTL, and our office staff manage daily admini strative tasks efficiently. Our bunker boats, also referred to as “De Bartjes”, leave the port on a daily basis to provide rivercraft with diesel and lubricants. With the acquisi tion of Slurink, we add the bunker locations Dordrecht, Zaltbommel, Amsterdam, Hansweert, Lobith (Tolkamer) and Vlissingen, where “de Zwaantjes” serve inland shipping and fishing customers on a daily basis. Catom holds its own stocks of both OK and Shell lubricants so as to enable it to supply customers efficiently and on time. Storage and warehousing are partly performed in-house. Part of the storage and ware

housing has been outsourced to two professional service providers (one for packaged products and one for bulk products), in connection with distribution to end customers. The entire operation is controlled by OK employees, with a strong focus on customer satisfaction (ordered today, delivered tomorrow).

Retail

OK petrol stations OK has a long history in the Netherlands. The 1950s saw the brand, which was originally Swedish, introduced to the Dutch market, and since 2004 it has been owned by the Catom group. Since 2006 Catom has been working on putting the OK brand of petrol stations back on the map, with the number of petrol stations growing each year.

26

OK Retail A distinctive feature of our petrol stations is their sleek, contemporary design. This look is consistently applied throughout, making the OK brand clear and recogni sable to customers. Examples of this are to be seen in the awning, the pumps, the OK Shop and the OK Café. We also developed an innovative and highly successful retail formula for the shops and cafés, where the emphasis is on quality and customer experience. For instance, we always serve fresh rolls and sandwiches in our OK Café. In our Grand Café, customers can even enjoy full meals in a restaurant ambience. The core values of OK Retail are customer friendliness, serenity, space, hygiene, atmosphere, design and range, which are strong features of all these activities.

As at year-end 2023, 99 petrol stations nationwide form part of the retail activi ties. Of these, 93 are operating under the proprietary OK brand, 60 are staffed and feature a modern shop, while the other 33 are unmanned. The growth achieved in 2023 includes Eemakker petrol station on the A27 motorway as well as Breda Graaf Hendrik III Laan petrol station, Breda’s fifth petrol station. 2024 is proving to be another good year for our retail activities, with several offers in the pipeline. Alongside station operations, fuel cards also performing well, card-carrying customers are continuing to increase with the Tango network now also accepting cards. Acceptance of third-party cards is also expanding, driven by growing interest in OK as a partner among fuel card issuers, thanks to the network’s quality.

In 2023, the focus was on the OK Café concept. OK Café has a distinctive look and

27

Ever since 2004, Catom has been the owner of the OK brand in the Netherlands. The originally Swedish brand has had Dutch presence since the 1950s. Traditionally originating from the cooperatives (such as Cebeco), OK is a trusted name as a supplier of fuels and lubricants in agriculture and associated fields. Thanks to Catom’s investments in state-of the-art petrol stations, the market share has been growing and the brand name has become much more familiar these past years. The OK brand is becoming more and more manifest in the Netherlands. Both at petrol stations and around those stations, online and during various types of (sports) events. Campaigns have been started to make OK’s name better known. Aiming at (potential) customers but also on (future) employees, for example by introducing www.werkenbijok.nl. The NAC head sponsorship is taking on increasing shape and impact this year. And with our presence at the Formula 1 and Porsche Supercup in Zandvoort and the OK Junior Dutch Open golf tournament, we are making great strides in relationship marketing.

offers a wide range of A-brands with the best coffee, delicious snacks and confec tionery and in some cases freshly made rolls and sandwiches. For 2024, the focus will be on further rolling out the OK Grand Café concept and category management .

The unmanned OK Express concept with car wash boxes is also proved successful and will be further expanded in 2024. Currently, there are ongoing projects at various stations to expand with unmanned car wash boxes, such as OK Zoetermeer and OK Terwispel.

28

4

Management report

General information

Ever since its establishment in 1998, the company has experienced uninterrupted turnover and profit growth, as a result of both takeovers and autonomous growth. In 2023 a record-breaking sales figure of € 1.7 billion was realised. In a year characterised by further recovery from the worldwide imbalance between supply and demand of fuels, Catom saw a healthy growth in practically all its business lines. The develop ment in business fundamentals was strong in 2023. This is shown by volume growth in wholesale activities and retail, in both fuel sales and shop sales. Fuel volumes dropped a little in business-to-business on land and water, while lubricant volumes increased slightly. Over the reporting year 2023, a number of takeovers were realised again, particularly with regard to OK Petrol Stations, with the addition of one motorway and eight city sites to the network. With Slurink Holding entering the Catom Group, we substantially expanded the OK Marine activities. 2023

was therefore marked by the integration of the Slurink bunker stations into the Group. In addition to the increased number of petrol stations, in 2023 significant invest ments were made in the quality of the OK network through construction and renova tion of petrol stations, and the rollout of the OK Grand Café concept at 3 locations. The international (crude) oil market is volatile. Local markets of finished products may well be characterized by their own dynamics, but are nonetheless, as a rule, affected by that volatility. Fluctuations in prices had a significant impact on our business in 2023. Market conditions in 2023 were characterised by falling fuel prices and a volatile renewable fuels market with a negative effect on the gross margin. Catom is a leading company in the market and reacted nimbly to opportunities and threats of the 2023 market situation.

In 2023 we continued to develop the IT department, optimising IT Systems, Applica

31

tions management, Security and Governance by making them customer-orientated. Continuous improvement to the IT environ ment and further professionalisation of business processes are important pillars of Catom’s strategy. Anchoring the new ERP system for retail activities and investing in Retail Asset Management are good illustra tions of this. We also continue to invest in Business Intelligence, providing increasingly relevant management information to the business using BI Reporting Software. and commercial insight. IT Governance is also on the agenda where progress was made in implementing relevant changes, driven by implementing business cases and user input into the ERP in a structured way. The security of Catom’s IT environment remains a key focus in 2023. The percentage of PDF invoicing again increased and is now 95% (92% in 2022), and in 2023 we again started to link customers by means of XML invoicing.

The further expansion of the retail network and the further development of the internal organization led to a further increase in the number of employees. On balance, the number of employees increased from 382 FTE (2022) to 492 FTE (2023). At the end of 2023, Catom had 792 employees. Catom’s strategy focuses on further growth, both organic and through acquisitions. Catom seeks to acquire market leadership in all segments it operates in. In 2023, Catom’s mission and vision were further refined and communicated with its people. Catom B.V. has its corporate seat in Breda. Its principal place of business is at Verlengde Poolseweg 32 in Breda. All group companies are wholly owned by Catom. In 2023 there were no changes in the management. Catom B.V. and its group companies operate mainly in the Dutch market. Nearly 100% of turnover is realised in the Netherlands.

>

Frank van Hemert Psychic Portrait Francis Bacon 2021, oil on canvas 165 x 134 cm

32

Turnover and results

Investments

Turnover in terms of money increased by 18.5% in 2023 to € 1.7 billion. The volume of motor fuels sold grew by 72.2%. The volume of lubricants sold increased by 23.3%. The gross profit on sales (turnover minus purchase cost of goods sold) increased by 13.3%. This turnover and gross margin led to an EBITDA of € 22,611,609 and a group result before taxes of € 9,935,559. The balance sheet total has increased to € 274 million. The solvency ratio reached 13.6% (2022: 10.7%). The liquidity ratio was 62% (2022: 62%). The company’s liquidity level is partly guaranteed by the credit facility. The financial figures relate to the 2023 financial year, which coincides with the calendar year.

Investments in fixed assets in 2023 amounted to € 19,277,150 (2022: € 8,341,479). Of this, € 10.3 million (2022: € 6.5 million) was spent on the takeover and improvement of petrol stations. Catom also invested in acquisitions, vehicles and vessels, software and hardware, and other machinery. In 2024 the company intends to invest in acquisitions, vessels and vehicles, software and hardware, and machinery. Expectations are that these investments can be realised with the currently available funding.

Financing

The investments in 2023 were partly financed from own funds. The total credit facility amounts to € 160.0 million. Cash flow from operating activities increased from € -5,970,837 to € 6,688,651, with stock and working capital effects together with investment and financing activities resulting in a cash decrease of € 14.4 million.

Frank van Hemert Psychic Portrait Jean-Michl Basquiat 2023, oil on canvas 160 x 130 cm

35

The financing structure was changed in September 2023. The modification and extension of the existing agreement was achieved with the help of existing Dutch bank institutions. The agreement provides for a larger credit facility at equal terms for the company.

Catom has managed to enhance its compe titive position in this market. In 2023 Catom took a major step in terms of sustainable fuel by selling more renewable HVO diesel and investing in the expansion of distribu tion capacity. In the reporting year, this led to a significant increase in the volume of renewable fuels. Catom is one of the five largest players in the Dutch wholesale market and sees opportunities for further growth in this segment. The major oil companies, also referred to as the ‘majors’, are expected to leave this market in due course, in order to focus more on upstream activities. Reselling – Land In the reselling division – resale of fuels and lubricants by OK Oliecentrale BV – the volume of motor fuels dropped by 9.5%. This was driven mainly by lower sales in the Construction segment, with volumes in the Transport and Industry segments remaining stable. The volume of lubricants sold increased by 8.1% along with a double

Developments

Wholesale The core activity wholesale – Catom Distri bution B.V., trading name Catom PDM – operates in a dynamic market with high price volatility. Prices in the international market fluctuate significantly each day, increasingly even during the course of a day. Catom participates in this trend by adjusting its prices at various times during the day. The buying behaviour of customers is heavily price-driven. Catom responds promptly to this trend.

By improving its supply process and, conse quently, its opportunities to blend biofuels,

36

figure increase in the AdBlue, Alkylate- based petrol and Coolant and Anti-Freeze volume. OK Oliecentrale’s customer services increasingly include technical advice on lubricants and the provision of stationary steel and synthetic storage tanks made to size. In a slightly declining reselling market, Catom managed to maintain its market leadership position in reselling. Reselling – Water In the reselling division, i.e. the resale of fuels, lubricants and marine items by OK Marine B.V. and Slurink B.V., the volume of motor fuels decreased by 1.4%. Providing access to a unique network and a wide range of products, bunker stations in Amsterdam, Dordrecht, Hansweert, Lelystad, Lobith, Vlissingen and Zaltbommel offer customers excellent service. In addition, OK Marine has many bunker boats and its own tanker that provides gas oil transport for the bunkering stations. In 2023, Slurink B.V. gained Inter national Sustainability & Carbon Certifica tion, taking a big step forward in the biofuels market. This in addition to an

efficient and highly safety-conscious opera tion means that Catom maintains a strong position in inland shipping, which is increasingly tending towards concentration. Retail Retail again experienced significant develop ments in 2023. The expansion in the number of OK stations continued due to various factors including the acquisition of a number of petrol stations and the renovation and rebranding of a number of stations acquired earlier. Following on from this, successful building work on the internal organisation is ongoing in order to control the constantly growing Retail operation from head office. This development is also helped by Category Management of the staffed OK Petrol Stations, targeted marketing and the growth of the OK Petrol Pass. On balance, the volume of motor fuels sold by our retail operation increased by 20.3%. Shop sales increased by 31%.

37

Research During the financial year no work was done in the area of research and development that was included in the balance sheet. Financial risk recognition, risk appetite and risk control In the performance of its business activities, Catom is exposed to various types of opera tional and non-operational financial risks. The risk appetite is limited, with mitigating measures in place. The risk appetite is periodically assessed by the Executive Board and management, and if necessary adjusted; actual indicators play a significant role. This section describes the main financial risks. The chances are categorised as very unlikely, unlikely, possible, likely and very likely. The impact is categorised as minimal, moderate, serious, substantial and very substantial. Credit risks One of the main risks is the bad-debt risk related to customers. The level of this risk is largely determined by the prices of motor

fuels and the related indirect taxes and tariffs, combined with the applied payment periods. This risk is mitigated as much as possible by means of a strict debtor policy. The chances of a credit risk occurring are very likely. The impact on the results and/or the financial position is moderate. maintaining its sound financial position. Thanks to a sound balance sheet structure and more than ample credit facility, Catom has plenty of capacity to absorb liquidity risks and sufficient access to credit on an ongoing basis. The chances of cash flow or financing risks occurring is unlikely. The impact on the results and/or financial position is very substantial. Currency risks Catom’s functional currency is the euro. In the wholesale department, a different functional currency, the US dollar, is used for part of the purchasing of motor fuels. Currency risks arising from these dollar Liquidity and financing risks Catom’s financing policy is aimed at

38

purchases are not hedged because the exposure is limited in terms of absolute amounts and only occurs for short periods (days), and because the currency fluctua tions have only a limited impact on our competitive position in the market. The chances of a currency risk occurring are very likely. The impact on the results and/or the financial position is moderate. Fuel price risks, interest rate risks, derivatives There have been major fluctuations in fuel prices in recent years. Catom follows the market and our business model has proven robust in absorbing these fluctuations. Catom makes very limited use of financial instruments – forward exchange contracts – to hedge against losses on its stocks, which in turn make up a very limited part of its total turnover. The chances of a fuel price risk occurring are very likely. The impact on the results and/or the financial position is substantial.

The interest rate risk incurred by Catom relates to the risk that future outgoing interest cash flows will increase due to changes in the market interest rate of interest-bearing loans with a variable interest rate. The risk policy with respect to interest rate risk aims at limiting the effects of interest rate fluctuations on the result. These interest charges only include the Euribor component of the finance costs and as from this financial year Catom uses interest rate derivatives. The chances of interest risks occurring are likely. The impact on the results and/or the financial position is substantial. Other risks, compliance with laws and regulations, safety As a player in the downstream oil market, Catom is aware of the crucial importance of always being in compliance with legislation and regulations and ensuring safe opera tions. A key foundation for managing the risks in this area is the company culture. Accordingly, the Executive Board and management focus on an ongoing basis on

39

safety and quality and increasing transpa rency in terms of the timely identification, assessment and reporting of risks. The risks in these areas are further mitigated by internal risk management and control systems, which are tailored to the day-to day work environment in which Catom operates, and with considerable support being provided by an extensive system of requirements, procedures and systems in relation to quality assurance, as documented in Catom’s HSE quality manual and in accor dance with ISO 14001 and VCA* (safety, health and environment) standards. Compliance with these standards is audited every year by Bureau Veritas. Using a compliance tool that Catom main tains with a third party, an update was carried out in 2023 to ensure that Catom has all the requisite permits, is in compliance with them, and adheres to all laws and regulations on safety and the environment. This tool was developed containing all legislation and regulations relevant to our

organisation. This tool verifies that we are informed of any changes in legislation so as to be able, if necessary, to take the required measures in time and remain compliant with the relevant legislation and regulations. When changes occur in the organisation in terms of sites or activities, an investigation is done with an external party into whether the inventory is still complete, and adjust ments are then made where necessary. Damage to property and liability towards third parties Catom has taken out an extensive package of insurance policies against risks relating to damage to its property and to property of third parties, as well as other potential liabilities towards third parties. The insurance portfolio is monitored in collaboration with a specialised organisation and, where necessary, specialists in the various insurance fields.

>

Frank van Hemert Psychic Portrait Anton Heyboer 2020, oil on canvas 180 x 130 cm

40

Risks in relation to financial reporting Catom’s financial reporting is part of a framework that covers its budgeting, reporting and forecasts. A distinction is made between reports for internal use and those for external use. The external repor ting at group level consists of a management report that includes the financial statements as audited by the independent auditor. The internal reporting consists of extensive daily, weekly, monthly and quarterly reports in which current developments are compared to the (cumulative) budgets and results from previous years. At the level of the main activities, financial and operational results are analysed and explained and, where needed, examined in detail. The quality of the financial reporting systems is regularly assessed in the context of the procedures of the independent auditor. We communicate the independent auditor’s findings regarding the quality of the financial reporting as identified in the

context of the audit of the financial statements.

The above contains a list of what we currently consider to be our main risks. This list is not exhaustive. There may be other risks we currently do not consider to be of vital importance, but which may still turn out to be significant.

Corporate sustainability

A major part of Catom’s strategy is the steps it is taking in terms of corporate sustainabi lity. The ultimate aim is to make all fuel driven vehicles sustainable. Catom has an effective strategy for this, given its Connec tion with People and Society, Taking Care of Business Essentials and Customer-Driven Innovation pillars.

42

Connection with People and Society

number of FTEs (+29%), the average turn over per employee fell by 8%.

At Catom, we prioritize connection with People and Society. This begins with people who work for us and extends to individuals who inspire our society. We consistently act according to and from our core values. Within Catom, we emphasize continuous attention to the sustainable employability and vitality of our employees. We encou rage the physical and mental well-being of our colleagues. We remain committed to achieving our goals and persevere until they are accomplished.

All employees are employed by the Dutch companies. Catom has no employees in other countries. It is expected that, with autonomous growth, the workforce may again decrease slightly as a result of efficiency measures and investments in new technologies. Any drop in the number of employees can be fully achieved through natural attrition. However, it is quite plausible that such a potential drop will be more than offset by further growth, including through acquisitions, and particularly through a further increase of the number of petrol stations operated by the company itself.

Staff numbers and gender ratios

The average number of employees, expres sed in FTE, rose during the reporting year from 382 to 492. This increase was mainly due to the acquisition of petrol stations. Due to the considerable increase in the

The breakdown of personnel by activity is as follows:

• 15 in management and staff positions • 405 in sales and financial departments • 72 logistics employees

43

The percentage of women in the company’s workforce rose from 48% to 53%.

empower everyone to get engage in physical activity, thus boosting the physical and mental well-being of our employees. Catom attaches importance to creating a working environment where employees can work happily and with drive. We therefore conducted an employee satisfaction survey in 2023. With a participation rate of 55%, the result was an enthusiasm score of 84%. The survey results reflect a number of Catom’s strengths as well as some areas that require attention.

The Executive Board consisted of 1 person at year-end 2023 (1 person in 2022) and the male/female ratio is 1 to 0. The Catom Board of Management consisted of 7 persons at year-end 2023 (4 persons in 2022) and the male/female ratio is 5 to 2. The policy for a balanced gender ratio on the Board and in management positions focuses solely on a person’s suitability to perform a specific job. Initiatives The Catom Executive Board highly apprecia tes the efforts and dedication of its staff. Their efforts make it possible to realise the company’s ambition to improve every year, both in terms of performance towards customers and in terms of results. Catom supports various sporting events, encouraging initiatives and ideas from employees. Workshops, a proactive policy on absence and the Catom FIT! Programme

Taking Care of Business Essentials

At Catom we strive for perfection, for continuous quality improvement. There are deep-rooted rhythms in the company. Improving operations is a demanding task that we tackle together, day in and day out. We set the bar high and have the ambition to use fuel and energy as effectively as possible. Our certifications are in order and we are also investing in digital progress.

> Frank van Hemert Psychic Portrait Vincent van Gogh

2019-2020, oil on canvas 165 x 134 cm

44

Automation and training

Safety and the environment

In 2023, according to plan, investments were again made in training and education of personnel. In addition to technical and commercial training, the focus was on setting up a training programme for OK Retail. Perma nent attention is also given to the training of employees who are responsible for the audits conducted in the field of safety and the environment, both internally and by external officials. In 2023, we made additional investments in retail-specific software solutions. We are also working continuously on optimizing the ERP system. To anchor important appli cations even deeper in our IT landscape, Catom took the first step in developing low code applications. The ongoing develop ment and use of the Business Intelligence Tooling has resulted in several reports with important management information.

The safety of people and their environment is a first priority for Catom in all of its activi- ties. Catom attaches great importance to full compliance with all requirements in the areas of safety, quality and the environ ment. Catom has its own environmental and safety policy in place for this purpose. During the reporting year, the Catom group took significant steps again in the reduction of its energy consumption and the related emissions. We continued to focus on efficiency of our transport planning and on optimization of the drop-size of the transport deliveries. Results delivered were partly due to more customers using remote volume measuring systems. The transported volume increased by 9.7% in 2023 (+2.7% in 2022) and the average deposited volume increased by 11.1% (+3.9% in 2022) (including out sourced volume). This financial year, the investment plan for new Euro6 trucks has

46

been approved, with deliveries of the trucks scheduled to take place in 2024 and 2025.

petrol station forecourt. This included, for example, energy-efficient awning lighting and pumps. The OK Retail team tracks innovations in vehicle washing, resulting in the use of modern equipment that saves energy and water. In August 2021, our ISO 14001 and VCA* certification was renewed under the new standard (2017). We therefore have new ISO 14001 and VCA* certificates: 2017 in the name of OK Oliecentrale B.V. All the requi site internal audits and inspections, as well as the external BRZO+, WABO and ISCC audits (for storage, transport and blending of biofuels) were carried out in 2023. Since April 2022, OK Oliecentrale B.V. has had KIWA certification for the installation and maintenance of above-ground tank installations for PGS classes 3 and 4 and PGS 30 products. We also have KIWA certifica tion for the inspection, maintenance and testing of non-stationary steel storage and delivery systems for the above-ground pressure-free storage of liquids. This further

Our fuel savings achieved in previous years was maintained in 2023 and, in 2024 and 2025, we expect to achieve greater savings with the new equipment. As OK Retail is growing, there is a lot of construction and sometimes reconstruction going on. The environment aspects are always included in the plans from the very start. For example, heating of shops is being converted from gas to electricity, using the air conditioning system as a heating source. All lights are being replaced by LED and we are inspecting all cooling systems and repla cing them, at the same time using better coolants. Equipment such as ovens are obviously also being replaced by new and more energy-efficient equipment. In the newly designed OK Grand Cafe, we took a critical look on selecting the right equip ment in areas such as the kitchens, with a focus on energy consumption. In addition, sustainability was a consideration for the

47

Customer-driven innovation

enhances our capabilities of responding to customer requirements with regard to the delivery system. We now also carry out our own in-house maintenance and inspection of the mobile fuel tanks owned by OK Oliecentrale B.V. Our hazard identification and risk assess ment exercise (“RI&E”) was approved by a certified external company in May 2021. In June 2022, we received the EED (European Energy Efficiency Directive) final report, which was issued by a certified company. The foremost conclusion of the report was that, across the board, our buildings are well insulated, most of the recognised measures have been taken, and anything still required will soon be rectified. In 2023, we experienced one limited environ mental incident and one incident of default out of a total of 102,990 deliveries (89,264 with our own trucks).

Innovation is an important core value at Catom. We approach the issues involved from different angles, with original and new ideas, and we break established patterns of thinking. This enables us to create added value for our clients. We tackle what we are able to change and have substantive profes sional knowledge, expertise and skills to serve our customers, including in the future. We also made significant investments in our product range, making it more sustainable. We set high standards for the quality of our products and services.

Biofuel blending

It goes without saying that Catom meets the statutory blending requirements for biofuels. The percentage in 2023 was 18.9% (17.9% in 2022). Catom endeavours to use only second-generation (‘double-counting’) biofuels for this purpose, meaning it is ahead of the statutory requirements. At various

Frank van Hemert Psychic Portrait Georgia O’Keeffe 2023, oil on canvas 141 x 115 cm

49

sites, including Den Bosch, for example, we invested significantly in physically blending biodiesel with conventional fuels. Catom has the ability to blend biofuel in resale deliveries, both on land using tankers and by water using bunker boats. We also invest in the relevant knowledge and resources. Catom PDM has been a member of the Renewable Fuels Platform since 2023. Customer demand is at the heart of Catom’s product range. We promote sales of sustain able products and they constitute a major component of our environmental objec tives. For customers wishing to implement a responsible policy in terms of the environ mental impact of fuels, Catom has introdu ced GTL (Gas To Liquid). This is an advanced diesel fuel that produces less smell and noise and thus reduces the emission of fine particles. Since GTL is free from sulphur and aromatics and has a high octane content, it leads to cleaner combustion. Catom has Renewable fuels

thus gained a unique proposition. Also HVO fuel is more in demand by our customers. HVO fuel is fossil-free, biodegradable, it reduces the emission of particulates and its sulphur emissions are virtually 0 grams/km. HVO can be obtained in various blend ratios with diesel. If 100% HVO fuel is used, the reduction of CO2 emissions may be reduced to up to 89% in the who chain. Both pro ducts are especially suitable for large cities seeking to enhance air quality in their centres. In 2023, Catom was designated a branded reseller of NesteMy, which is an HVO in its purest form. Compared to other HVOs, NesteMY has the most extensive feedstock portfolio, excellent production stability and very good cold properties.

Emissions reductions

The improved OK X-Drive diesel means that combustion engines are now cleaner, require less maintenance, have greater power and consume up to 3% less fuel. OK X-Drive is suitable for all existing diesel engines and is

50