Campine : Annual financial report 2023

A year in review.

ANNUAL REPORT 2023

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Waste is our resource.

Recycling is our philosophy.

That's, in short, the mindset we've embraced since 1912.

It propels us to become smarter, more connected, and kinder to our planet.

Today, we take pride in our ability to turn post-consumer waste into high-quality materials. We recover, renew and repeat, with a focus on fully recycling batteries and producing flame retardants that play a crucial role in a safer society. We're all in for a zero-waste industry.

Why? To make circularity a reality for all - our clients, our dedicated team,

valued partners, and our society.

While staying true to our regional heritage, we've earned international respect as a trusted partner offering raw material solutions across various industries. We've expanded well beyond Belgium, establishing multiple sites in Europe and distributing to partners across the globe.

Together, we're taking the path towards a circular economy, where innovation and sustainability converge.

Ready to join hands?

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Content

6	21
Message of the chairman	Our values
and the CEO
9	22
2023 Financials	Campine recycled Polymers
10	26
ESG-commitment	Annual review 2023
16	48
2023 Headlines	Consolidated financial
	statements
17	91
Research & Development	Statutory auditor report
in recycling
18

Employer branding

I N T R O D U C T I O N	0 4

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Recover.

Renew.

Repeat.

It is our second nature to care for people and planet. We continually create new material solutions from waste through safe, responsible processes.

About Campine

As the second largest battery recycling company in Europe, we prevent 10 million lead-acid batteries to end up in landfills every year. We recover the lead and other metals, as well as the plastics from the casings.

Furthermore, we are TOP 5 worldwide to produce antimony trioxide. This is the most important flame retardant for plastics and textiles, used in household appliances, building materials and other products. This fire retardant saves thousands of lives every year in the event of fire incidents. We are the only company in the world that also recycles this chemical product directly from waste streams.

This unique set-up makes Campine one of the few companies that effectively recycles metals, chemicals and plastics.

MES SAGE OF THE CHAIRMAN AND THE CEO

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Message of the chairman and the CEO

2023 was once again a record year for Campine in various aspects. The success of 2022 was not only matched but even surpassed.

Despite the significant increase in energy prices, volatility in certain metal prices, economic slowdown in international trade, modest growth in the Eurozone, and geopolitical crises worldwide, Campine not only managed to hold its ground but also increased its strength as the second largest battery recycling company and the largest producer of antimony trioxide in Europe. The Group's revenue increased by 2% compared to 2022. EBITDA showed a 1% increase mainly due to the good performance of Circular Metals, which was the growth engine in 2023. The contribution of

the acquisition of the 2 factories in France and their integration into the Group was crucial for Campine's growth figures and results in 2023, partially thanks to the relatively high metal prices throughout the year.

Campine stands for sustainable metal waste processing with respect for people and planet, and plays a noticeable role in the transition from a linear to a circular economy. Safety is a top priority for the entire Group. In 2023, there were significant improvements: in Escaudoeuvres (France) we surpassed 1 000 days without

accidents; in Beerse both the frequency and severity of accidents decreased significantly, and an ambitious safety plan was launched in Villefranche (France).

Other important indicators related to health and the environment (CO2 impact, emissions, waste processing, waste recovery rate ...) showed a significant improvement in Beerse compared to 2022, while a concrete action plan was launched in the French facilities.

"2023 was once again a record year for Campine in various aspects."

In general, key performance ESG (Environment, Social, and Governance) parameters were summarised in a clear dashboard. The current material recovery rate for the Group is approaching 67% today. Thus Campine is actively working towards a "zero waste society".

MES SAGE OF THE CHAIRMAN AND THE CEO

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The market responded positively to the good results, with a stock price that evolved from

• 55 at the beginning of January 2023 to
• 72 at the end of December 2023, an absolute record. This year, we also anticipate the distribution of a dividend calculated based on 1/3 of the net profit.

acquisitions. As a result, there were instances where a drastic NO GO decision was made. Nevertheless, Campine managed to strengthen its position as a key player in its core markets, despite increasing competition and global political uncertainty.

In addition to the efforts related to ESG, the main focus of the year was on extensive R&D efforts, increasing the performance of production facilities through modernisations, and further professionalising various processes, including maintenance. The search for new customers was intensified, particularly for battery fractions from our factories in France. Furthermore, various growth opportunities and strengthening of our competitive position were carefully examined, taking into account the risks associated with large investments and

"Campine plays a noticeable role in the transition from a linear to a circular economy."

• For the coming decade a growth potential of more than 10%, even 20%,
  per year is expected for recycled polypropylene!"

Analysts still expect a growth in demand for lead of approximately 2% per year for the next 5 years for lead-acid batteries (produced in the EU), despite the rapid rise of electric vehicles equipped with Li-ion batteries, which Campine currently does not intend to recycle. For antimony trioxide and flame retardants in general, a growth of approximately 5% per year is projected. There is also a significant market potential anticipated for recycled

Patrick De Groote, chairman of the board of directors

Wim De Vos, CEO

MES SAGE OF THE CHAIRMAN AND THE CEO

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polypropylene. Currently, only 10% of the total current polypropylene demand in Europe is recycled for use in plastic products, electrical appliances, automotive parts, and packaging. This shows a growth potential of more than

10%, even 20%, per year for the coming decade. Campine will pay special attention to increasing the recycling capacity of antimony trioxide and the lead smelting capacity in the near future, focusing on R&D and expansion efforts.

Patrick De Groote	Willem De Vos
chairman of the board of directors	CEO

Campine has been paying attention to succession planning in the board of directors for several years, particularly for directors reaching the end of their mandate due to age reasons. This year, this is the case for me as I have expressed my wish to step down from my position as a director of Campine by the end of 2024 after approximately 15 years of service. I would like to take this opportunity to sincerely express my gratitude for the trust and support I have received throughout these years filled with interesting and passionate

challenges. I would like to extend my special thanks to the reference shareholder, the Group, and the F.-W. Hempel family, the shareholders in the market, my fellow board members, the CEO and the management team, as well as all employees, social partners and various stakeholders such

as banks, suppliers, subcontractors and customers. I leave the scene with peace of mind, knowing that there is a team present that has repeatedly proven its competence in the past years.

Patrick De Groote

chairman of the board of directors

2023 FINANCIAL S	0 9

2023 Financials

TURNOVER	NET RESULT
€ 322m	€ 13.7m

EBITDA	SOLVABILITY RATIO
€ 26.8m	55%

TURNOVER PER BU

(NON-CONSOLIDATED)

6%

26%

34%

10%

4%

21%

■ Antimony trioxide	■ recycled Batteries
■ FR Masterbatches	■ Lead
■ recycled Polymers	■ Metals Recovery

E S G - C O M M I T M E N T	1 0

Sustainability

2023

ECOVADIS RATING

Corporate Social Responsibility (CSR) and sustainable production with respect for people and planet are part of our DNA. The best proof is our Ecovadis sustainability measurement score. In 2023, the strong performances of recent years continued with another SILVER Medal award. This ranks Campine among the 20% best companies in the world in terms of sustainability and CSR. We are therefore proud of this internationally recognized acknowledgement of our achievements with regard to the environment, labour and human rights, ethics and sustainable procurement.

Outlook 2024

SUSTAINABILITY

Climate change is one of society's greatest challenges, impacting all regions of the world. Recovery of reusable raw materials is a daily reality at Campine. Thanks to more efficient use, reuse and recycling of materials, the circular economy contributes to a global decrease in greenhouse gas emissions. We are therefore determined to expand our contribution to a circular and sustainable society to stand stronger in this climate crisis.

In 2024, we will involve the entire supply chain even more in our objectives. To align suppliers with our key principles, they must demonstrate compliance with minimum health and safety, human rights, ethical and environmental standards. By assessing them on

these criteria, we aim to promote our initiatives and contribution to a sustainable value chain.

Reducing our carbon footprint in the value chain requires us to review the activities of our suppliers. Intense collaboration and transparent communication are necessary to set up a complete and detailed picture of the life cycle and footprint of our products.

TRAIN OUR EMPLOYEES

Campine strives for a sustainable employability of its employees. We consider it important that they can make a long-term contribution in a healthy and motivated way. Offering lifelong education and creating opportunities is very important.

Our KPI to give each employee a training of in average at least 4 working days training of at least

4 working days in average was amply exceeded with an average of 6.7 training days. We want to continue this strong result in 2024.

In addition to the individual development of our employees, attention was paid to training focused on safety, job-related knowledge and communication & social skills in 2023. The 2024 training plan includes, on top of the technical and safety training, an additional focus on resilience, sustainability and awareness regarding the new alcohol and substance abuse policy.