IMCD N.V. Welcome
to a world of opportunity
Annual Report 2021
www.imcdgroup.com
European single electronic reporting format (ESEF) and PDF version
This copy of the Annual Report is the PDF/printed version of the 2021 Annual Report of IMCD N.V. This version has been prepared for ease of use and does not contain ESEF information as specified in the Regulatory Technical Standards on ESEF (Delegated Regulation (EU) 2019/815).
The official ESEF reporting package is available via IMCD's website at www.imcdgroup.com.
Contents
IMCD Annual Report 2021
Foreword by the CEO | 4 |
2021 Highlights | 6 |
2021 Financial highlights | 8 |
Global presence | 10 |
History | 11 |
Shareholder information | 12 |
About IMCD | 16 |
Our market | 16 |
Our business model | 17 |
Our business groups | 19 |
Our organisation | 18 |
Strategy & Business | 36 |
Our business operating principles | 36 |
Our strategy | 39 |
Opportunities, risks and resilience | 39 |
Sustainability | 41 |
Performance | 45 |
Financial performance | 49 |
Non-financial performance | 63 |
Outlook 2022 | 76 |
Governance | 77 |
Governance | 77 |
Management Board | 77 |
Executive Committee | 78 |
Supervisory Board | 80 |
Supervisory Board report | 82 |
Remuneration report | 93 |
Corporate governance | 102 |
Risk factors and risk management | 108 |
Statement of the Management Board | 115 |
Financial statements 2021 | 116 |
3
- Contents page
FOREWORD BY
THE CEO
2021 HIGHLIGHTS
Foreword by the CEO
IMCD Annual Report 2021
2021 FINANCIAL HIGHLIGHTS
GLOBAL
PRESENCE
HISTORY
SHAREHOLDER INFORMATION
ABOUT IMCD
OUR BUSINESS GROUPS
STRATEGY & BUSINESS
PERFORMANCE
GOVERNANCE
FINANCIAL STATEMENTS 2021
Dear Reader,
When we look back at 2021, we see a year still overshadowed by the pandemic whilst we had hoped to enter a less volatile phase of recovery. Our priority has been and will be to ensure that working conditions remain as safe as possible.
Business conditions in 2021 also remained challenging: we faced serious disruptions of the global supply chain. Across the world, demand, production, and prices fluctuated wildly.
Yet we rose to the challenge and our teams worked tirelessly to ensure that supply to our customers was maintained. Indeed, in an exceptionally demanding period for business, we recorded record growth across all our markets. I could not be more proud of our collective response.
Our work at IMCD is all about relationships. We depend on interactions with our suppliers, customers, communities and, of course, each other. These partnerships have been built up over many years and sometimes decades.
A fundamental part of our business model is to support our partners also in difficult times. This past year,
we strengthened our long-standing partnerships and forged new ones as we worked together closely to overcome the challenges of product shortages and supply chain issues.
Amid the turmoil, we continued to expand, innovate, improve, and invest. Sustainability is a key priority for our organisation. Our Sustainable Solutions service offering, powered by our Advanced Materials business, is helping our partners make themselves - and our planet - greener, and more sustainable. Our Food and Nutrition business group has been busy developing healthier and more sustainable foods, introducing for example an entirely vegan burger prototype, the Clean
- Green Meat Free Burger. We will continue to assist our customers in formulating their products through our large product offering and global lab network.
We have also strengthened our efforts to ensure all our supply chain partners meet our environmental, social, and governance (ESG) standards. A shared commitment to these standards is crucial for us.
Sustainability is not something that IMCD can tackle alone; close cooperation with our business partners is needed to reduce our environmental impact and reduce (scope 3) emissions. I am proud that our efforts on sustainability management in 2021 were recently recognised with a Gold rating from EcoVadis.
For all of us at IMCD, corporate social responsibility (CSR) is a heartfelt opportunity to make an impact in the communities that we are part of across the globe. Last year, as we celebrated our 25th anniversary, we created the IMCD Cares Fund, which is based
on supporting projects in three pillars: education, the environment and well-being. I encourage you to check out our projects, including Eco Conquista, an IMCD Cares initiative, that impacts 25,000 residents of Diadema, a favela in São Paulo, Brazil.
"In an exceptionally demanding period for business,
we recorded
record growth last
year across all our markets."
Piet van der Slikke
CEO IMCD
4
- Contents page
FOREWORD BY
THE CEO
2021 HIGHLIGHTS
2021 FINANCIAL HIGHLIGHTS
GLOBAL
PRESENCE
HISTORY
SHAREHOLDER
INFORMATION
ABOUT IMCD
OUR BUSINESS
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
GOVERNANCE
FINANCIAL STATEMENTS 2021
When it comes to new businesses, our horizons continue to expand into new sectors and new territories. This has been one of our most active years when
it comes to acquiring entities. We moved deeper into Latin America, purchasing Mexican speciality chemicals distributor Maquimex and Colombian distributor Siliconas y Químicos. Another Latin American acquisition, Andes Chemical Corp, expanded our presence in Central America and the Caribbean. Andes also contributed an innovation laboratory in Miami that provides product and formulatory support to some of IMCD's core markets.
In China, we acquired Shanghai Yuanhe Chemicals, and signed agreements to acquire Aquatech and Syntec. We bought Indonesian pharmaceutical and personal care distributor PT Megasetia, and signed agreements to acquire Australian supplier RPL Trading and Austria's POLYchem Group. All these companies offer complementary services, enhancing IMCD's portfolio and reinforcing our position as a global company with local networks.
Digitalisation is here to stay in chemical distribution and IMCD is on track to make full use of the benefits this development brings. Throughout 2021, IMCD continued its digital transformation across systems, applications and projects. Digital transformation is a business transformation that involves people: customers, employees, suppliers and partners. Digital tools are enablers, enhancing our connectivity with our partners. The pandemic has already shifted more collaboration to digital tools, channels and platforms. Our mission is to use digitalisation with our partners to grow our businesses together.
We remain vigilant about the challenges ahead and diligent about our responsibilities. While we live in more uncertain times than usual, we are confident that our outlook looks bright. We will keep things moving.
Rotterdam, 24 February 2022
Piet van der Slikke
IMCD Annual Report 2021
"Digitalisation is
here to stay in
chemical distribution and IMCD is on track to make full use
of the benefits this
development brings."
5
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IMCD NV published this content on 24 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 08:31:02 UTC.
