6.2 Company financial statements

Balance sheet of Nedap N.V. at 31 December (€ x 1,000)¹

• 1Before result appropriation

Statement of profit or loss of Nedap N.V. (€ x 1,000)

Accounting policies

Pursuant to Article 362(8), Book 2 of the Dutch Civil Code, use is made of the option to use Title 9 of Book 2 of the Dutch Civil Code for the company financial statements and apply the accounting policies of the consolidated financial statements. This ensures reconciliation of consolidated and separate shareholders’ equity.

The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS Accounting Standards) as adopted by the European Union. Please see the notes on the accounting policies for the consolidated financial statements for a description of the accounting policies relating to these standards.

Financial fixed assets include the Nedap group’s subsidiaries and participations where significant influence can be exercised over the commercial and financial policy. Subsidiaries are presented as per the net asset value method, using the accounting policies of the consolidated financial statements.

1. Intangible fixed assets (€ x 1,000)

Intangible fixed assets in progress and prepayments include a €3,406 (2023: €1,971) investment relating to intangible fixed assets developed in-house.

To a great extent, the capitalized development costs are for Healthcare and Retail information management systems.

2. Tangible fixed assets (€ x 1,000)

• *Molds, dies, measuring and testing equipment, furniture and fittings, computer systems and vehicles.

2. Tangible fixed assets (€ x 1,000)

• *Molds, dies, measuring and testing equipment, furniture and fittings, computer systems and vehicles.

Tangible fixed assets are insured at new-for-old value.

A right of mortgage on immovable property amounting to €18.9 million (€18.9 million in 2023) has been granted as security for bank debts. Lease liabilities entered into at the end of the financial year were €0.8 million (€0.5 million in 2023). Impairment is explained under ‘Impairment of assets’.

3. Financial fixed assets (€ x 1,000)

On 31 May 2023, Nedap Beveiligingstechniek B.V. (NBT), was sold to Solid Systems Group B.V. This transaction was executed without the realisation of a financial gain on the sale of the shares that Nedap held in NBT. The result after taxation up to 31 May 2023 amounted to €81.

Dividend payments concern payments from Nedap FZE (€554).

In 2024, a loan of €2,000 was provided to Nedap Asia Ltd. No repayments were made during the year. Invoiced but unpaid interest for the financial year amounted to €90. The loan has a term of 20 years starting on 1 January 2024 and the interest rate agreed is 2.00% above the 12 month EURIBOR rate for a period of 12 months. Nedap Asia is allowed to make repayments and withdrawals without penalty to the maximum of the loan.

4. Inventories (€ x 1,000)

Inventories recognized as an expense during the year ended 31 December 2024 amounted to €52.1 million. These were included in cost of materials and outsourced work. An amount of €2.8 million (€2.7 million in 2023) of inventories has been written down to a lower realizable value. Costs of write-down of inventory, which are recognized in cost of materials and outsourced work, amounted to €1.2 million in 2024 (€1.4 million in 2023).

5. Trade and other receivables (€ x 1,000)

Deferred tax assets and liabilities

6. Cash and cash equivalents (€ x 1,000)

Cash and cash equivalents are available on demand.

7. Shareholders’ equity (€ x 1,000)

Please see the consolidated statement of changes in shareholders’ equity for the ‘statement of changes in shareholders’ equity’.

8. Provisions (€ x 1,000)

The anniversary benefits provision has a predominantly long-term nature. Please refer to the consolidated financial statements for the assumptions.

An amount of €0.9 million (€1.0 million in 2023) of the guarantee provision is of a short-term nature.

9. Non-current liabilities (€ x 1,000)

Borrowings

The financing agreement with the bank for the Standby roll-over loan will expire on 1 April 2026. Security has been provided in the form of a right of mortgage (€18.9 million, not including 40% for interest and costs) and a pledge of all fixtures and fittings, inventories and trade receivables. The agreement does not contain any covenants. The interest rate is Euribor plus 1.2%.

10. Current liabilities (€ x 1,000)

Bank overdrafts

The maximum overdraft under the facility is €25 million (€25 million in 2023).

Every year, over the period from April to September inclusive, an additional facility of €5 million will be available.

An amount of €0.1 million (€0.1 million in 2023) of other liabilities and accruals and deferred income relates to payables with a term of over one year.

Other information

Off-balance sheet rights and commitments

For corporate income tax purposes, Nedap N.V. formed a fiscal entity with Nedap Beveiligingstechniek B.V. up to 31 May 2023 at which time this subsidiary was sold.

All companies are jointly and severally liable for payment of income tax due. The tax positions are settled between the companies through the current account.

A number of subsidiaries depend on Nedap N.V. continuing to make financing available. Nedap N.V. has, therefore, issued Letters of Support for Nedap Asia Ltd. and Nedap Great Britain Ltd., confirming that repayment of the financing will not be claimed within 12 months from the date of signing the financial statements for the year ended 31 December 2024. Furthermore these letters state, amongst others, Nedap N.V.'s intention to provide sufficient funds to ensure that these subsidiaries are able to meet normal trading liabilities as they fall due and confirms that current transfer pricing agreements will not be terminated within the aforementioned period of 12 months.

11. Revenue (€ x 1,000)

Software subscriptions (licenses) and services consist mainly of subscriptions and maintenance contracts for Healthcare, Retail, Security and Staffing Solutions.

No customer represents sales in excess of 10% of total revenue.

12. Personnel costs (€ x 1,000)

The directors' remuneration details are disclosed in note 15 of the consolidated financial statements.

13. Amortization (€ x 1,000)

14. Depreciation (€ x 1,000)

15. Impairment of assets (€ x 1,000)

Impairment of assets relates to the scaling down of Staffing Solutions.

16. Other operating costs (€ x 1,000)

The costs of foreign exchange differences recognized in profit or loss amount to €-132 (2023: €260).

Other operating costs includes general, housing, indirect manufacturing and selling costs.

17. Taxation (€ x 1,000)

The change in the domestic tax rate is caused by a tax rate of 19% on the first €200 of taxable profit (19.0% on the first €200 of taxable profit in 2023). The net tax rate for the branch outside the Netherlands is higher than the nominal rate in the Netherlands, which leads to an increase in the effective tax rate of 0.1%.

Non-deductible expenditures are largely costs relating to share-based remuneration. Besides a small amount for the Energy/ Environmental Investment Tax Credit (Energie/Milieu Investerings Aftrek) (€-12 (€-1 in 2023)), tax incentive schemes consist of benefits ensuing from application of the Innovation Box tax regime (€-1,344 (€-2,020 in 2023)).

Deferred tax assets and liabilities are measured at the weighted average tax rate, factoring in any arrangements under the Innovation Box tax regime.

Other information

Research and development costs

Government grants relate mainly to tax rebates under the Dutch Research and Development (Promotion) Act (Wbso) on account of research and development activities.

Research and development costs mostly relate to maintaining and further developing current products and services. The remaining costs are for research and development in relation to new products or services.

Such development costs are only capitalized if the applicable IAS 38 criteria are met.

Stichting Medewerkerparticipatie Nedap

Shares purchased over the period from 2021 to 2024 are still locked up. Of the 241,687 shares held, 103,848 are still in the locked-up period.

The 103,848 locked-up depositary receipts entitle holders to 16,376 bonus depositary receipts (15,196 in 2023).
In 2024, 3,190 bonus depositary receipts were awarded (4,844 in 2023), 232 contingent bonus depositary receipts expired (215 in 2023) and 4,602 contingent bonus depositary receipts were awarded (4,658 in 2023), resulting in 16,376 potentially awardable bonus depositary receipts at year-end 2024 (15,196 in 2023). Stichting Medewerkerparticipatie Nedap holds 3.6% of the total issued share capital.

Profit appropriation

Independent external audit fees

This item relates to the total fee for services provided by PricewaterhouseCoopers Accountants N.V.