IMCD Annual Report 2021

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.
IMCD Annual Report 2021
Contents
Foreword by the CEO 4 Our business groups 19 Governance 77
2021 Highlights 6 Our organisation 18 Management Board 77

Executive Committee 78
2021 Financial highlights 8 Strategy & Business 36 Supervisory Board 80
Our business operating principles 36 Supervisory Board report 82
Global presence 10 Our strategy 39 Remuneration report 93
Opportunities, risks and resilience 39 Corporate governance 102
History 11 Sustainability 41 Risk factors and risk management 108
Statement of the Management Board 115
Shareholder information 12 Performance 45
Financial statements 2021 116
Financial performance 49
About IMCD 16 Non-financial performance 63
Our market 16 Outlook 2022 76
Our business model 17
Governance 77
3
< Contents page IMCD Annual Report 2021
FOREWORD BY
THE CEO Foreword by the CEO
2021
HIGHLIGHTS
2021 FINANCIAL Dear Reader, Amid the turmoil, we continued to expand, innovate,
HIGHLIGHTS improve, and invest. Sustainability is a key priority
When we look back at 2021, we see a year still for our organisation. Our Sustainable Solutions service
GLOBAL
PRESENCE overshadowed by the pandemic whilst we had hoped offering, powered by our Advanced Materials business,
to enter a less volatile phase of recovery. Our priority is helping our partners make themselves – and our
HISTORY has been and will be to ensure that working conditions planet – greener, and more sustainable. Our Food and
SHAREHOLDER
remain as safe as possible. Nutrition business group has been busy developing
INFORMATION healthier and more sustainable foods, introducing for
Business conditions in 2021 also remained challenging: example an entirely vegan burger prototype, the Clean
ABOUT IMCD
we faced serious disruptions of the global supply chain. & Green Meat Free Burger. We will continue to assist our
OUR BUSINESS Across the world, demand, production, and prices customers in formulating their products through our
GROUPS fluctuated wildly. large product offering and global lab network.
STRATEGY &
BUSINESS Yet we rose to the challenge and our teams worked We have also strengthened our efforts to ensure all
tirelessly to ensure that supply to our customers was our supply chain partners meet our environmental,
PERFORMANCE maintained. Indeed, in an exceptionally demanding social, and governance (ESG) standards. A shared
GOVERNANCE
period for business, we recorded record growth across commitment to these standards is crucial for us.
all our markets. I could not be more proud of our Sustainability is not something that IMCD can tackle
FINANCIAL collective response. alone; close cooperation with our business partners
STATEMENTS
2021
is needed to reduce our environmental impact and
Our work at IMCD is all about relationships. We reduce (scope 3) emissions. I am proud that our efforts
depend on interactions with our suppliers, customers, on sustainability management in 2021 were recently “In an exceptionally
communities and, of course, each other. These recognised with a Gold rating from EcoVadis.
partnerships have been built up over many years and demanding period
sometimes decades. For all of us at IMCD, corporate social responsibility for business,
(CSR) is a heartfelt opportunity to make an impact
A fundamental part of our business model is to support in the communities that we are part of across the we recorded
our partners also in difficult times. This past year, globe. Last year, as we celebrated our 25th anniversary, record growth last
we strengthened our long-standing partnerships and we created the IMCD Cares Fund, which is based
forged new ones as we worked together closely to on supporting projects in three pillars: education, year across all
overcome the challenges of product shortages and the environment and well-being. I encourage you to our markets.”
supply chain issues. check out our projects, including Eco Conquista, an
IMCD Cares initiative, that impacts 25,000 residents of
Diadema, a favela in São Paulo, Brazil. Piet van der Slikke
CEO IMCD
4
When it comes to new businesses, our horizons

FOREWORD BY continue to expand into new sectors and new territories.
THE CEO
This has been one of our most active years when
2021 it comes to acquiring entities. We moved deeper
HIGHLIGHTS into Latin America, purchasing Mexican speciality
2021 FINANCIAL
chemicals distributor Maquimex and Colombian
HIGHLIGHTS distributor Siliconas y Químicos. Another Latin
American acquisition, Andes Chemical Corp, expanded
GLOBAL
PRESENCE
our presence in Central America and the Caribbean.
Andes also contributed an innovation laboratory in
HISTORY Miami that provides product and formulatory support
to some of IMCD’s core markets.
SHAREHOLDER
INFORMATION
In China, we acquired Shanghai Yuanhe Chemicals, and
ABOUT IMCD signed agreements to acquire Aquatech and Syntec.
OUR BUSINESS
We bought Indonesian pharmaceutical and personal
GROUPS care distributor PT Megasetia, and signed agreements
to acquire Australian supplier RPL Trading and
STRATEGY &
BUSINESS
Austria’s POLYchem Group. All these companies offer
complementary services, enhancing IMCD’s portfolio
PERFORMANCE and reinforcing our position as a global company with
local networks. “Digitalisation is
GOVERNANCE
here to stay in
FINANCIAL Digitalisation is here to stay in chemical distribution
STATEMENTS and IMCD is on track to make full use of the benefits chemical distribution
2021
this development brings. Throughout 2021, IMCD and IMCD is on track
continued its digital transformation across systems,
applications and projects. Digital transformation is We remain vigilant about the challenges ahead and to make full use
a business transformation that involves people: diligent about our responsibilities. While we live in more of the benefits this
customers, employees, suppliers and partners. Digital uncertain times than usual, we are confident that our
tools are enablers, enhancing our connectivity with outlook looks bright. We will keep things moving. development brings.”
our partners. The pandemic has already shifted more
collaboration to digital tools, channels and platforms. Rotterdam, 24 February 2022
Our mission is to use digitalisation with our partners to Piet van der Slikke
grow our businesses together.
5
FOREWORD BY
THE CEO 2021 Highlights
2021
HIGHLIGHTS
First food ingredients distributor and formulator to Embracing digital connectivity
2021 FINANCIAL offer customers chef-led concept development
HIGHLIGHTS Committed to inspiring innovation in the industries
GLOBAL
We recently added three culinary chefs to our Food and Nutrition we operate in, we hosted several global virtual events
PRESENCE team, marking IMCD as the first distributor and formulator to as most of us were not able to travel. Customers and
establish this type of position. suppliers were invited to join an immersive 3D
HISTORY
experience, join our live expert talks and webinars,
SHAREHOLDER Building off our established technical expertise and in partnership with browse the latest products, and explore our latest
INFORMATION our application specialists, the chefs will apply their culinary knowhow to innovation solutions.
interpret food trends and evolving customer needs and translate them
ABOUT IMCD
into usable concepts and taste-focused products for IMCD customers.
OUR BUSINESS They will work directly with selected food manufacturers while also
GROUPS providing the company’s full customer base with insights through video
STRATEGY &
content, promotional packages, one-to-one meetings, and other
BUSINESS knowledge-sharing actions.
PERFORMANCE
“We’ve approached this new offering as we do every area of our business:
GOVERNANCE as a solution for our customers and an elevation of our established IMCD Trends Library
relationship,” says Marc van Gerwen, Business Group Director at IMCD
FINANCIAL Food & Nutrition. “Our customers look to us as a partner of choice At IMCD, we investigate and shed light on trends so
STATEMENTS
2021 because of our technical expertise. Adding a culinary dimension is a we can create new opportunities for our partners to
significant enhancement of that knowledge.” innovate. Supported by industry-leading technical
expertise and market knowledge, we help our
Read more > partners get to market fast with solutions that meet
the growing and evolving demands of their
customers. We are sharing our insights on what
comes next: the market landscape and the trends
that are shaping it.
Expect eye-opening statistics, thoughtful interview

sessions and intriguing case studies that bring to life
the challenges we’re solving and the innovations
we’re discovering across IMCD.
Read more >
6
FOREWORD BY
Meaningful contributions
THE CEO to the community
2021 We aim to improve the daily lives of those around
HIGHLIGHTS
us and contribute to a better future for the
2021 FINANCIAL communities in which we live and work. Our CSR
HIGHLIGHTS strategy complements and supports our corporate
strategy across three focus areas: Education &
GLOBAL More >
PRESENCE Diversity, Climate, and Health & Wellbeing.
HISTORY
These are just three examples of the CSR Forestami (Italy)
SHAREHOLDER activities we launched in 2021: IMCD Italy partnered with Forestami to donate over
INFORMATION 600 trees to the city of Milan. Forestami is leading a
project that involves the planting of 3 million trees by
ABOUT IMCD
2030 throughout the metropolitan area of Milan to
OUR BUSINESS More about our CSR > clean the air, improve living conditions, and counter
GROUPS the effects of climate change.
STRATEGY &
Accelerated growth in APAC
BUSINESS Eco Conquista (Brazil)
2021 has seen tremendous development for the APAC region with Educational Volunteers Foundation (Turkey) Eco Conquista is a social and environmental initiative
PERFORMANCE
five acquisitions. IMCD Turkey partnered with the Educational that aims to improve community-wide recycling
GOVERNANCE Volunteers Foundation of Turkey (TEGV) to provide efforts in the city of Diadema. In alignment with
The acquisitions are well aligned with our strategy to accelerate growth in easy access to online education to children from Associação Nova Conquista and the Council of
FINANCIAL this important region. We expanded our market coverage and portfolio low-income households. The project involved Diadema, IMCD Brasil committed to the betterment
STATEMENTS
2021 with Megasetia in Indonesia for the Pharmaceuticals business and Syntec distributing 351 tablets with free satellite internet of the community by investing in new equipment for
in China for the Personal Care business. We introduced more water-based access to children from primary school. With these the recycling centre. This initiative also includes the
coatings solutions and formulation expertise in China with Yuanhe tablets, the students will be able to access courses planting of 136 trees in the community and 40
Chemicals and Aquatech. Through RPL Trading in Australia and New given by the Ministry of National Education and to environmental educational actions for neighboring
Zealand, we enhanced our offerings in home care and water treatment the TEGV distance education platform. schools and the community.
markets. More importantly, we onboarded many key suppliers into various
markets.
“We can combine our global network and expertise with strong regional
and local implementation through acquisitions and organic growth. This
gives us the competitive advantage to provide a more differentiated
solution for our partners,” says Haiko Zuidhoff, Vice President for Asia
Pacific.
Read more >

More > More >
7
FOREWORD BY
THE CEO 2021 Financial highlights
EUR MILLION, UNLESS STATED OTHERWISE
2021
HIGHLIGHTS
2021 Revenue Gross profit Operating EBITA Free cash flow Result for
FINANCIAL
the year
HIGHLIGHTS
GLOBAL
24% 29% 54% 1% 73%
PRESENCE
25% on a constant 30% on a constant 55% on a constant EUR 1.5 million
HISTORY currency basis currency basis currency basis 2020: EUR 277.4 million EUR 207.2 million
3,435.3 836.3 373.6 278.9 2020: EUR 120.1 million
SHAREHOLDER 5,000 1,000 500 400
INFORMATION
ABOUT IMCD
OUR BUSINESS
GROUPS
Cash earnings
2,500 500 250 200
per share
53%
STRATEGY &
BUSINESS
PERFORMANCE
EUR 4.64
GOVERNANCE 0 0 0 0
2020: EUR 3.03
2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021
FINANCIAL
STATEMENTS by region by region by region* by region*
2021
Dividend proposal
33 % 30 % 28 % 33 % in cash per share
Americas
59%
Americas 47 % Americas 45 % Americas 43 %
49 %
1119.6 EMEA 250.5 113 EMEA 101.8 EMEA
EMEA
1601.6 180.3 131.3
411.7
21 % 21 % 27 % 23 %
Asia-Pacific Asia-Pacific Asia-Pacific Asia-Pacific
EUR 1.62
714.1 174.2 109.7 71.4 2020: EUR 1.02
*excluding Holdings *excluding Holdings
8
Key Figures
FOREWORD BY
THE CEO
EUR MILLION 2021 2020 1 CHANGE
2021
HIGHLIGHTS
Results
2021 Revenue 3,435.3 2,774.9 24%
FINANCIAL Gross profit 836.3 647.5 29%
HIGHLIGHTS
Gross profit as a % of revenue 24.3% 23.3% 1.0%
GLOBAL Operating EBITA 2 373.6 243.2 54%
PRESENCE Operating EBITA as a % of revenue 10.9% 8.8% 2.1%
Conversion margin 3 44.7% 37.6% 7.1%
HISTORY
Net result before amortisation / non-recurring items 267.7 168.3 59%
SHAREHOLDER Result for the year 207.2 120.1 73%
INFORMATION
Cash flow
ABOUT IMCD
Free cash flow 4 278.9 277.4 1%
OUR BUSINESS Cash conversion margin 5 72.6% 109.4% (36.8%)
GROUPS
Balance sheet
STRATEGY &
BUSINESS
Working capital 612.5 443.7 38%
Total equity 1,461.4 1,252.4 17%
PERFORMANCE Net debt 940.0 727.0 29%
Net debt / Operating EBITDA ratio 6 2.3 2.3 (0.0)
GOVERNANCE
FINANCIAL Employees
STATEMENTS Number of full time employees end of period 3,740 3,298 13%
2021
Shares
Numbers of shares issued at year-end (x 1,000) 56,988 56,988 0%
Weighted average number of shares (x 1,000) 56,940 53,750 6%
Earnings per share 3.64 2.23 63%
Cash earnings per share 7 4.64 3.03 53%
(Proposed) dividend per share 1.62 1.02 59%
1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statements
2 Result from operating activities before amortisation of intangibles and non-recurring items
3 Operating EBITA in percentage of gross profit
4 Operating EBITDA excluding non-cash share-based payment expenses, less lease payments, plus/less changes in working capital, less
capital expenditures
5 Free cash flow in percentage of adjusted operating EBITDA (Operating EBITDA plus non-cash share-based payment costs minus lease payments)
6 Including full year impact of acquisitions
7 Result for the year before amortisation (net of tax) divided by the weighted average number of outstanding shares
9
FOREWORD BY
THE CEO Global presence
2021
HIGHLIGHTS
2021 FINANCIAL Americas EMEA Asia-Pacific

HIGHLIGHTS
1 15 26 16 1 51 48 23 1 26 33 26
GLOBAL
Revenue Revenue Revenue
PRESENCE EUR MILLION EUR MILLION EUR MILLION
HISTORY
SHAREHOLDER
1,120 1,009 48% 52% 1,602 1,698 46% 54% 714 1,033 54% 46%
INFORMATION
ABOUT IMCD
OUR BUSINESS
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
GOVERNANCE
FINANCIAL
STATEMENTS
2021
Worldwide
Revenue
EUR MILLION
1 International HQ 92 Offices 65 Laboratories 49% Male
3,435 2 Regional HQ’s 107 Warehouse locations 3,740 Employees 51% Female
10
2005 - 2014 Two rounds of private equity 2020 This year marks IMCD’s 25th anniversary, 2021
FOREWORD BY
THE CEO History investments enable accelerated growth over this
decade. IMCD strengthens its activities across EMEA,
enabling its suppliers to achieve pan-European
celebrating 25 years of innovation and value creation. In the APAC region we accelerated our growth in the personal
care market, strengthened our portfolio in life sciences, home
care, water treatment and waterborne coatings solutions with
2021 coverage, and enters new regions with acquisitions the acquisitions of Syntec, PT Megasetia Agung Kimia,
HIGHLIGHTS
and greenfield operations in Africa, Latin-America, Aquatech, Yuanhe Chemicals and RPL Trading.
2021 FINANCIAL and APAC.
HIGHLIGHTS 1995 Under the management of Piet van der Slikke Through acquisitions in the Americas region we
GLOBAL
several speciality chemical distribution companies 2014 Having become a global leader in strengthened our industrial market presence with Maquimex
PRESENCE within Internatio-Müller are combined as a separate distribution of speciality chemicals and ingredients, in Mexico and fully integrated Millikan and Banner Química.
division which starts to grow its activities in EMEA and IMCD’s shares are successfully listed on the Euronext We expanded in Central America, Peru, and the Caribbean
HISTORY
Australia, establishing a new player in the field of stock exchange in Amsterdam. with Andes Chemical Corp. In Colombia we entered into new
SHAREHOLDER speciality chemicals distribution. markets with Siliconas y Químicos.

INFORMATION
In EMEA , we acquired POLYchem Handelsges.m.b.H which
ABOUT IMCD
Despite challenging market conditions, IMCD provides us an excellent platform to better serve customers
OUR BUSINESS successfully embarked on its growth strategy. and partners throughout Southeast Europe (SEE).
GROUPS We expanded our presence to the Middle East with
a regional head office in Dubai. In Hamburg's HafenCity, IMCD Germany created an inspiring
STRATEGY &
BUSINESS and dynamic working environment with a new office, whilst
The acquisition of Signet in India, provided a IMCD India relocated to Noida, Uttar Pradesh.
PERFORMANCE
significant platform for further growth in India and
GOVERNANCE the APAC region in the pharmaceutical sector, to We enhanced our technical capabilities with the launch of
improve IMCD’s leading position in the distribution a ultra-high temperature (UHT) pasteurisation laboratory
FINANCIAL of pharmaceuticals. We expanded the footprint of in Jakarta, Indonesia. The facility is designed to support
STATEMENTS
2021 2015 - 2019 IMCD expands further in North our Food & Nutrition business with VitaQualy complex ingredient formulations in the application of dairy,
2001 - 2004 Management and NIBC Private American (US / Canada) and successfully establishes Comercio de Ingredientes in Brazil and Millikan in beverages and soups.
Equity acquire the company from Internatio-Müller. a national US footprint, providing suppliers and Mexico, our Advanced Materials Business with
The name of the stand-alone company is changed to customers with coast-to-coast coverage and Kokko-Fiber, and our Personal Care business with IMCD hired chefs to join their technical team, making us
“IMCD”. IMCD adopts a single IT platform in Europe expertise. It furthermore strengthens its presence in Ejder Kimya in Turkey and Banner Química in Mexico. the first food ingredients distributor and formulator to offer
and a matrix organisation along geographical lines Latin America, adding Colombia to its geographical Meanwhile, the teams at Unired Químicas, Neuvendis customers chef-led concept development.
and end markets, enabling distribution on a broad reach, and in Asia, with acquisitions in India, and DCS Pharma were fully integrated.
geographical basis. It also expands its services t o Singapore, and South-Korea. During these years,
regions such as Turkey, India, and Russia. IMCD develops its laboratories into a global network of We opened three new, inspiring office locations in
technical centres that support its business partners Cleveland, St Petersburg and Bangkok. And with three
with high quality technical advice and formulation enhanced technical centres for Food &
expertise. Nutrition in North America and Thailand and for
Personal Care in Thailand, our globe-spanning teams
2019 In March 2019, IMCD moved into the Dutch of technical and sales experts provide our customers
blue chip AEXindex. with the innovation and support they need to succeed. We were awarded a 2021 Gold rating from EcoVadis, a trusted
sustainability rating provider for global supply chains.
Gold means we are in the top 5% of all companies in our
industry in terms of sustainability.
11
FOREWORD BY
THE CEO Shareholder information
2021
HIGHLIGHTS
2021 FINANCIAL IMCD was first listed on Euronext Amsterdam on 27 June 2014, at an initial offer price of In 2021, the share price increased by 86.8% (88.2%
HIGHLIGHTS total return if dividends were to be reinvested), from
EUR 21.00 per share, resulting in a market capitalisation of EUR 11.1 billion. In March 2015, EUR 104.25 at the beginning of 2021, to a closing price
GLOBAL
PRESENCE IMCD shares were included in the Euronext Amsterdam Midcap Index and in July 2015, at December 31, 2021 of EUR 194.70. As at the end of
Euronext launched share options on IMCD. Since 2019, IMCD shares are included in the 2021, IMCD’s market capitalisation was EUR 11.1 billion
HISTORY
(EUR 5.9 billion at year-end 2020).
Euronext Amsterdam AEX Index.
SHAREHOLDER
INFORMATION
Investor relations policy
ABOUT IMCD A total of 57 million (56,987,858) shares have been For Euronext Amsterdam the average daily volume was
issued; this number did not change in 2021. IMCD's 136 thousand in 2021 versus 159 thousand in 2020. The IMCD values maintaining an active dialogue with its
OUR BUSINESS
GROUPS market capitalisation as per the end of 2021 was average daily value of the shares traded on the Euronext financial stakeholders, like its current and potential
EUR 11.1 billion. As at 31 December 2021, IMCD held Amsterdam was EUR 21.3 million in 2021 compared with shareholders, brokers and the financial and other
STRATEGY & 44,300 treasury shares (31 December 2020: 90,017). In EUR 13.3 million in 2020.
BUSINESS media. IMCD considers it very important to explain
2021, IMCD transferred 45,717 shares from own shares
PERFORMANCE to settle its annual obligation under its long-term
incentive plan.
GOVERNANCE
Share price performance 2021
FINANCIAL
STATEMENTS Share price performance in 2021 IMCD AEX MSCI World Midcap
2021
In 2021, 48.5 million IMCD shares were being traded, a 210
decrease of 29% compared to the 68.1 million shares 195

traded in 2020. This number represents the total lit
180
consolidated market volume (European Composite All
Lit, Bloomberg equity exchange code “EZ”, 165
encapsulating all trading venues that operate a lit order 150
book), which includes Euronext Amsterdam (35 million 135
in 2021 vs. 41 million in 2020). The average daily lit

120
consolidated trading volume was 186 thousand shares
105
in 2021 versus 261 thousand in 2020. The total value of
traded IMCD shares was EUR 7.6 billion, compared with 90
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC
EUR 5.7 billion in 2020.
In %
12
the IMCD business model and implementation so that

FOREWORD BY Trading volumes 2021
stakeholders have the information they need to form an
THE CEO
opinion on the company. In 2021, due to continuing Trading volume shares (1,000) Trading volume value (EUR
2021 restrictions posed by the COVID-19 pandemic, the 1,000)
HIGHLIGHTS company did not organise or participate in physical
12,000 2,400,000
2021 FINANCIAL roadshows to meet with investors. Instead,
HIGHLIGHTS management participated in multiple virtual roadshows
Trading volume shares
Trading volume value

and investor conferences, in which they engaged with 9,000 1,800,000
GLOBAL
PRESENCE investors from across all regions, in particular Europe
(the UK, Benelux, France) and North America. Also, a 6,000 1,200,000
HISTORY considerable number of meetings with (potential)
investors took place by means of video conferencing.
SHAREHOLDER 3,000 600,000
INFORMATION IMCD is currently covered by 15 international analysts.
ABOUT IMCD 0 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
OUR BUSINESS Dividend policy

GROUPS
Barring exceptional circumstances, under IMCD's
STRATEGY &
BUSINESS
dividend policy the intention is to pay an annual dividend IMCD SHARE 2021 2020 1
in the range of 25% to 35% of the adjusted net Highest price 208.10 107.95
PERFORMANCE income (reported result for the year plus amortisation Lowest price 101.18 56.25
charges, net of tax) to be paid out either in cash or in Year-end price 194.70 104.25
GOVERNANCE
shares. A proposal will be submitted to the Annual Earnings per share 3.64 2.23
FINANCIAL General Meeting of Shareholders to pay a cash dividend Cash earnings per share 2 4.64 3.03
STATEMENTS of EUR 1.62 per ordinary share (2020: EUR 1.02), an
2021
Proposed dividend per share 1.62 1.02
increase of 59% compared with the previous year. This Number of shares at year-end (x 1,000) 56,988 56,988
dividend represents a pay-out ratio of 35% of adjusted Weighted average number of shares (x 1,000) 56,940 53,750
net income (2020: 34% of adjusted net income).
2 Result for the year before amortisation (net of tax) divided by the weighted average number of outstanding shares
13
Major shareholders Ticker symbols

FOREWORD BY
THE CEO
The register maintained by the Netherlands Authority Euronext Amsterdam IMCD
2021 for the Financial Markets (AFM) in connection with Euronext Amsterdam derivatives market IMD
HIGHLIGHTS the disclosure of major holdings in listed companies Reuters IMCD
2021 FINANCIAL exceeding 3% of the issued capital, contains details of Bloomberg IMCD.NA
HIGHLIGHTS the following investors as at 31 December 2021. There
are no known holdings of short positions visible in the FINANCIAL CALENDAR
GLOBAL
PRESENCE AFM register. 25 February 2022 Full year 2021 results
29 April 2022 First three months 2022 results
HISTORY Baillie Gifford & Co. 10.29% 2 May 2022 Annual General Meeting
Capital Research & Management Comp. 10.08% 2 May 2022 Dividend announcement
SHAREHOLDER
INFORMATION BlackRock Inc. 6.36% 4 May 2022 Ex-dividend date
FMR LLC 5.13% 5 May 2022 Dividend record date
ABOUT IMCD Smallcap World Fund Inc. 5.01% 9 May 2022 Dividend payment date
OUR BUSINESS
Ameriprise Financial Inc. 4.99% 4 August 2022 First half-year 2022 results
GROUPS 10 November 2022 First nine months 2022 results
STRATEGY &
BUSINESS Investor relations
ir@imcdgroup.com
PERFORMANCE
www.imcdgroup.com/en/investors/contact
GOVERNANCE
FINANCIAL
STATEMENTS
2021
14
INSIGHT
Future-focused sustainable
solutions in coatings and
construction
The impact of COVID-19 in 2021 brought new opportunities and
challenges to the coatings & construction industry. Disruptions
to the supply chain have become a persistent global issue,
and manufacturers are dealing with limited capacities coming
together with supply chain shortages and logistic constrains.
However, our strong local setups from stock to laboratories
and the innovative thinking and commitment of our people has
created new opportunities.
We are focusing on delivering future-focused, sustainable solutions that are

vital for the market, consumers and society. We talk about this in our “Building
Tomorrow” Trends Commentary. In the coming years sustainability will remain
a driving force, while health and safety will become more important as people
increasingly want to work in healthier, greener and safer environments. We
must find ways to introduce smart functionality, to innovate the way our
products are applied and perform. Efficiency is enormously important too. We
must find ways to do more with the same quantity of raw materials. That is the
best way to achieve sustainability and climate neutrality.
Sustainable solutions
We think in terms of the final product and how we can improve it. As a
distributor, we can be more flexible on the solution. When working with our
principal suppliers, we try to challenge them to go further when it comes to
sustainability. And we curate our portfolio to include solutions that can
contribute to a greener world.
“Green and sustainability trends are driven by the consumers and
society. We are stepping into the driver’s seat to help our industry
make the change to a smarter and circular tomorrow.”
Frank Schneider
Business Group Director IMCD Coatings & Construction
15
FOREWORD BY
THE CEO About IMCD
2021
HIGHLIGHTS
2021 FINANCIAL IMCD is a market leader in the sales, marketing and distribution of speciality chemicals speciality chemicals distribution industry will continue
HIGHLIGHTS to be shaped by the following trends:
and ingredients. We began in 1995 as a small group of companies with a common
GLOBAL
PRESENCE ambition and a harmonised business model. From there, we have grown to have a global 1. Selective outsourcing
footprint in over 50 countries on six continents. In 2021, our 3,740 employees generated The outsourcing of sales, marketing and distribution
HISTORY
to a more limited number of third-party distributors,
revenue of over EUR 3.4 billion. Today, we are an increasingly digitised distributor remains an important part of the channel strategy of
SHAREHOLDER
INFORMATION unlike any other: we are formulation experts and solutions providers who continuously suppliers. The greater complexity in the breadth of
add value. speciality products, lower order volumes and specific
ABOUT IMCD
customer requirements in the various end markets are
OUR BUSINESS expected to drive outsourcing to a decreasing number
GROUPS
IMCD’s technical expertise and formulation support are pharmaceutical ingredients. Diverse, complex and of speciality chemicals distributors.
STRATEGY & strengths that differentiate us from our competitors. international markets require suppliers with first-class
BUSINESS With our in-depth understanding of consumer trends, knowledge and support. For this reason, IMCD invests 2. Preferred partnership
our highly skilled and results-driven professionals heavily in technical expertise and application know-how, Suppliers in developed markets are generally looking for
PERFORMANCE more structured pan-regional management of sales and
innovate with our comprehensive product portfolios to as well as sales and marketing excellence.
GOVERNANCE provide market-focused solutions that meet the needs distribution. By entering into a sole third-party rights
of customers across our eight business groups. By But we go further than that. Both our suppliers and of distribution relationship with a preferred distribution
FINANCIAL
partnering with IMCD, our suppliers benefit from our our customers benefit from IMCD’s ability to simplify partner for multiple countries or regions, suppliers are
STATEMENTS
2021 market intelligence and accelerated growth through their business, providing access to numerous partners, able to significantly simplify and optimise their route-
direct access to markets across the world. without the complexity that this usually involves. In to-market.
our unique position, we are instigators of innovation,
contributors of insight and safeguarders of timely 3. Increased regulation
In sophisticated markets, increasing regulation will
Our market supply. The speciality chemicals distribution market is
still made up of large global or pan-regional companies require chemical distributors to obtain a certain
The products in our portfolio are used in almost every and a large number of local players, often family-owned. minimum scale in order for them to be able to fully
aspect of daily life, ranging from home, industrial and There is strong demand from major suppliers for comply with the requirements at an affordable cost.
institutionalised care, personal care, food & nutrition pan-regional distributors who can streamline business In order to be compliant, smaller distributors may
and pharmaceuticals to lubricants & energy, coatings & operations and work as a strategic partner to support need to upgrade their facilities or alter their processes.
construction, advanced materials and synthesis. long-term growth. Smaller, locally-oriented distributors that currently do
not comply with the additional requirements generally
The constant demand for product improvement As a result, further consolidation within the sector is are required to make comparatively large investments
and higher performance drives the requirement taking place with an ongoing focus on local excellence to comply, whereas larger distributors can more easily
for innovative speciality chemicals and food and and technical expertise. The rationalisation of the global make such investments due to their scale.
16
Our business model and technical expertise. A single point of contact, activities, IMCD provides distribution and other
FOREWORD BY coordinated inventory management, business process ancillary services. Wherever possible, IMCD outsources
THE CEO
In close cooperation with its key stakeholders, IMCD integration and the digitisation of transactions are its physical distribution and other ancillary activities,
2021 strives for operational excellence in all aspects of its all examples of the benefits that IMCD brings to its such as warehousing, bulk breaking, mixing, blending,
HIGHLIGHTS business operations. With the overarching principles of suppliers, which in turn accelerate their value-added packaging and labelling to professional third-party
2021 FINANCIAL product stewardship and fostering open relationships growth. At the other end of the value chain, IMCD logistics service providers.
HIGHLIGHTS with its partners, IMCD aims to create long-term value focuses on its customers: manufacturers that need
across its value chain. speciality chemicals for the production of end products. Technical expertise
GLOBAL
PRESENCE IMCD strives to make a positive impact for both its
Core activities By maintaining a large and diverse product portfolio, business partners and society as a whole. Its technical
HISTORY IMCD's core activity is the sales, marketing and IMCD offers its customers a broad range of solutions experts analyse new technologies and proactively offer
distribution of speciality chemicals and food and to meet specific requirements. IMCD aims to develop innovative solutions for the constantly developing
SHAREHOLDER
INFORMATION pharmaceutical ingredients. By building strong lasting customer relationships by providing customers and demanding markets in which IMCD operates.
relationships, IMCD seeks to simplify its suppliers' with quality assurance and highly specialised product Together with its business partners, IMCD turns market
ABOUT IMCD business operations while supporting growth through knowledge, alongside technical advice and formulation trends into sustainable products that benefit the
OUR BUSINESS
its extensive local networks, market intelligence support. In addition to its sales and marketing lives of consumers worldwide and help reduce the
GROUPS environmental impact.
STRATEGY &
BUSINESS
In 2021, we continued to optimise our ways of working
by a more intensive use of our virtual platforms, while
Technical Market knowledge
PERFORMANCE focusing on the following areas:
expertise (Local/Regional)
GOVERNANCE
A. New product analysis and development
FINANCIAL We work in close collaboration with our customers’
STATEMENTS R&D departments, carrying out competitive matching,
2021
Extensive Sales team sharing new application opportunities and assisting
customer (Local) in the formulation of the most effective and
coverage innovative products.
B. Customer seminars
Technical We developed over 500 digital marketing campaigns
Partnership expertise and and organised more than 100 webinars for our
approach sustainable customers, around the world, to introduce new
innovation additions to our portfolio, share insights on the latest
market trends or present solutions to production
processing challenges. Across our global network
of technical centres, customers can test product
Global Speed and
performance, run stability and application tests and
reach flexibility
experience the finished product with the support of our
scientific and technical teams.
17
C. Supplier workshops
FOREWORD BY Within our technical centres, suppliers are able to gain
THE CEO
an understanding as to how their products interact
2021 and function (in combination with other products
HIGHLIGHTS from within the IMCD portfolio) as part of a finished
2021 FINANCIAL formulation. This understanding and market trend
HIGHLIGHTS awareness means we are able to assist our suppliers
with the development of new product concepts.
GLOBAL
PRESENCE
D. Internal training
HISTORY Workshops and training sessions on site and through
our e-learning tools are in place, for IMCD teams across
SHAREHOLDER
INFORMATION the globe ensuring our people stay abreast of market
trends and developments and fully understand the
ABOUT IMCD functionality and characteristics of our portfolio, so that
OUR BUSINESS
we can better support our customers.
GROUPS
STRATEGY &
BUSINESS Our organisation
PERFORMANCE IMCD's business is organised into a number of strategic
market sectors with dedicated business groups in “Our experts
GOVERNANCE
each country where we operate. This matrix structure chemists and
FINANCIAL enables us to provide fully integrated and coordinated
STATEMENTS distribution services on a global scale and facilitates technical teams offer
2021
the exchange of commercial and technical expertise customers both local
across our organisation. In this way, our expert Americas and Asia-Pacific. In addition, our global
chemists and technical teams can offer customers headquarters in the Netherlands provides guidance, market insights and
both in-depth local market insight and state-of-the-art alignment and central policies with regards to application
application knowledge. sustainability, digitalisation, IT, HR, finance & control
and compliance, among other functions. knowledge.”
Each end market is managed by business group
management to ensure the same high level An overview of our business groups is provided on the
performance across the IMCD organisation. In turn, following pages.
IMCD’s country management is responsible for the
optimisation of our services to customers locally,
throughout the various market segments.
Our local activities are further strengthened by the

support of our two regional headquarters in the
18
FOREWORD BY
THE CEO Our business groups
2021
HIGHLIGHTS
IMCD has a strong position in EMEA, Asia-Pacific and Americas
2021 FINANCIAL
HIGHLIGHTS in several different life science and industrial end markets.
GLOBAL
PRESENCE
HISTORY
SHAREHOLDER
INFORMATION
ABOUT IMCD
OUR BUSINESS
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
GOVERNANCE
Home Care and I&I Pharmaceuticals Beauty & Personal Care Coatings & Construction
FINANCIAL
STATEMENTS
2021
Food & Nutrition Lubricants & Energy Synthesis Advanced Materials
19
Home Care and I&I

TOMORROW’S CLEANER LIVING
trends that impact our industry
Our market segments
IMCD Home Care and I&I* offers Sustaining a change

a comprehensive range of high- Manufacturers need to be
value speciality chemicals used for conscious of the environmental
manufacturing household, industrial and impact of their products at every
institutional cleaning products. stage of the process from
ingredient sourcing to product
packaging.
We deliver high performance, premium ingredients
which yield consistent results, sustainable solutions Efficiency is everything
and ensure better cost-in-use through performance- As manufacturers balance
driven products. Our high-quality portfolio includes Laundry care Dish washing demand for sustainable and
enzymes, surfactants, biocides, chelates, rheology economical products, it is
modifiers, solubilisers, silicones, solvents and essential that efficacy and
functional additives. reliability are not compromised.
Our portfolio is constantly evolving to meet the Home from Home

latest technical requirements and market trends. As consumers are excited to start
Customers seeking germ and grease free surfaces, travelling again, demand is
sanitised rooms and equipment, soft and spotless growing for travel-friendly
laundry, sparkling glasses and dishes, or conditioned disinfectant and sterilisation
and waxed floors or cars, know we are on hand to products.
help.
Cleaning & surface care Automotive care Cleaning for Wellbeing
Our application and regulatory expertise, dedicated Good hygiene at home, at work or
technical centres offering on-site performance in shops has become vital for a
testing, and unrivalled industry knowledge and sense of trust and safety.
relationships enable us to elevate the performance
of all our partners.
Read more >
Air care
* Home Care and Industrial & Institutional

20
IMCD HOME CARE AND I&I

CASE
Towards greener and “We always strive to develop

and deliver formulations that
cleaner laundry respond to consumer needs.

Knowing that sustainability
and efficacy are top
requirements for our liquid
Consumers are always looking for products that make their lives easier, and laundry customers, we were
laundry products are no exception. Convenient, but less sustainable, laundry proud to develop a
capsules are gaining market share from liquid laundry options and the traditional concentrate that is not only
powdered detergents, which still come out best in consumer tests. However, more ecological and more
consumers also want convenient products to be sustainable: they should have efficient, but that is also
less plastic and need fewer resources to manufacture and distribute. economical.”
We developed a new liquid laundry concentrates in • requires less packaging; Claudia Sturm
response to consumer trends and demands for • eliminates the complicated requirements of Application Laboratory Manager
‘greener’ solutions, reduced packaging and lower encapsulating a liquid in water-soluble films.
water consumption during manufacturing. We
wanted to simplify current manufacturing and Our objective was to develop a 25ml liquid
formulation processes and create new formulations concentrate from economical, to eco-balanced and
that perform equally well and ensure clean laundry. ecological formulations. We also needed to ensure
product stability for at least four weeks at
Although liquid laundry capsules are becoming temperatures ranging from 5 to 37°C, and deliver no
increasingly popular thanks to their convenience, reduction in the efficacy of the product.
they do have limitations. Consumers cannot alter the
dose to match the size of load, degree of soiling, or Leading through innovation
the water hardness in their area. We can now offer customers three families of liquid
laundry concentrate. Thanks to thorough
Cost-effective eco cleaning development and testing, our new formulations
There are many formulation and processing enhance laundry performance and are ready for
constraints for manufacturing liquid laundry immediate use. The impact on water consumption is
concentrates. The solution was not simply to double significant: they enable our customers to benefit
the amount of active ingredient. We set out to deliver from up to 95% reduction in water consumption
a concentrate that: during manufacturing.
• further enhances convenience compared to
traditional powdered detergents;
21
Pharmaceuticals
TOMORROW’S PHARMACEUTICAL INDUSTRY
Our market segments
IMCD Pharmaceuticals has a network of six Patient-friendly dosage forms

dedicated technical centres and more than Innovation in delivery systems.
250 sales and marketing experts around
the world. The business group supports Pre-emptive healthy living
its customers and partners at every stage Changing consumer attitudes
towards personal health.
of their product development cycle, from
active ingredient synthesis to formulating Sustainable solutions
with functional excipients to deliver the The importance of green
optimal final dosage. solutions.
Agrochemicals API
We innovate to create a healthier world. Our Pharma for the future
unrivalled technical expertise in formulation, Why biopharmaceutical science is
together with high quality, clinically proven active the future of pharma.
ingredients and regulatory and quality support,
enable us to provide added value every step of the
way.
IMCD Pharmaceuticals collaborates with customers

and partners, sharing knowledge and expertise to
advance ideas for a healthy future.
Biopharma Excipients & formulation
Read more >
Nutraceuticals Regulated Synthesis
22
IMCD PHARMACEUTICALS
CASE
Vegan, sugar-free gummy “We are proud to to have

developed this innovative
to support the immune formulation that not only

improves the health of
system
consumers, but that also
fulfils current trends and is
fully sustainable.”
During lockdowns, consumers globally have spent more time learning about
Bora Turan
ingredients and procedures that might support their immune response against
Director Nutraceuticals
potential threats. Functional foods are becoming more popular. But consumers
are tired of pills and potions, they are looking for alternative, easy-to-take
supplements. And if possible, these should also meet their values regarding
sustainability, clean label, green and plant-based.
A palatable supplement without sugar? based on relevant science, which is ‘market ready’
Our Nutraceuticals team rose to the challenge. The and compliant with local regulations. This will enable
goal was to develop a stable, pleasant-tasting and our customers to quickly launch new and innovative
commercially viable product with a high dose of products to meet consumer needs in their markets.
active ingredients. And make it vegan and sugar free.
We were looking to make an effective supplement For our suppliers, this concept highlights their
suitable for both adults and children, to incorporate products innovatively and opens the door to new and
botanicals and vitamins to support immune health. promising opportunities for promoting their
But it still needed to taste great. ingredients in gummy applications.
Of all the possible formulations, a vegan, sugar-free The gummy formulation provides a base for use with
gummy containing multiple botanical ingredients other active ingredients and to target other health
won the day. This is a new and innovative solution categories, besides immune health. We have used
and it meets consumer demands. this to create other concept offerings. Our Cardio
Gummy is formulated with cardiovascular disease in
Gummies are a promising concept mind, a key category that can benefit from
Our gummy solution provides inspiration for our supplementing a healthier lifestyle.
customers to use in their own development. They
can be confident that it is possible to develop high
dose gummy formulations. We now have a concept,
23
Beauty & Personal Care

TOMORROW’S BEAUTY
Our market segments
At IMCD Beauty & Personal Care, we shape In transparency we trust

tomorrow’s beauty through innovative Accessing information to ensure
ideas and concepts. Our expertise lies in a choice of healthy beauty
our profound understanding of creative products.
possibilities. We recognise the needs
It's all about experiences
and trends of the beauty & personal care
Sparking emotion and
market and help our customers empower entertainment within beauty
people’s beauty. rituals.
IMCD works with the world’s leading suppliers to Skin care Sun care Celebrating individuality
integrate an extensive portfolio of high-quality Offering beauty products that
ingredients into our trend-based prototypes. Our meet every skin and hair need.
technical and market segment experts working in
our network of global application laboratories seek Making a positive impact
the most effective solutions with demonstrated Trusting committed beauty
performance and innovative ingredients. We turn brands that care for people and
valuable opportunities into commercial growth and planet.
success for our partners.
We offer a wide range of specialities, with products

to cover all functional and active needs in the
personal care space: Color cosmetics Hair care
• Actives
• UV sunscreens
• Rheology modifiers, thickeners
• Surfactants, emulsifiers
• Emollients, elastomers, humectants, waxes
• Film formers, functional powders
• Hair styling polymers, hair conditioners
• Solvents, solubilizers
• Pigments, pearls, colorants Read more >
• Opacifiers, pearlisers
• Preservatives, antioxidants, additives Toiletries Oral care
• Fragrances, essential oils
24
IMCD BEAUTY & PERSONAL CARE

CASE
Maskne is the new acne “It was quite a challenge to

find a new and bio-based
Developing the next best formula for acne-prone skin.

We looked for the bigger
thing in skin care products

picture and took a leap of
faith, our customer followed.
They are delighted it can be
sourced from renewable
Acne is a widespread and persistent skin condition most commonly affecting natural materials. And we’re
teenagers and young adults. Mandatory mask-wearing during the pandemic has all amazed at the media
increased this problem for many, prompting use of the term “Maskne”; where a attention that contributed to
mask touches the face and causes acne. This combination of factors presented the success too – definitely
the cosmetics industry with a new skincare challenge, against the backdrop of an opportunity for the
future.”
growing demand for more natural and organic skin care products.
Rachael Polowyj
Acne care products are extremely popular in the combat imperfections while still being gentle on the Key Account Manager
personal care sector. Each year many new oil- and skin. Our team of experts worked alongside our
water-based product formats are launched. customer to test a range of raw ingredients to deliver
However, these products usually contain the same a truly innovative product. This extensive research
active ingredients due to a long history of proven process identified a single ingredient that delivered
efficacy. fantastic numbers in imperfection reduction on oily
skin.
Opportunity in clean beauty
While demand remains for highly effective products, The 100% bio-based acid ingredient had not been
consumers increasingly expect their skincare regime previously used in anti-imperfection skincare.
to contain natural and organic ingredients. Our IMCD team offered technical guidance and
Cosmetics companies around the world are looking handling instructions to incorporate this into a new
for new and effective ingredients to create product type.
showstopping new products to meet these needs.
In close collaboration between the key supplier and
We were approached by a global skin care brand to IMCD our customer was able to develop a targeted
source an innovative and natural ingredient, with blemish treatment that went on to become one of
good efficacy, for acne-prone skin and maskne. the brand’s top 5 bestselling products globally in the
year it launched. It also received industry, media and
A bio-based skincare hit social media acclaim on a global scale.
It is a delicate science to develop a product that can
25
Coatings & Construction

BUILDING TOMORROW
Our market segments
IMCD Coatings & Construction offers Green & circular

speciality raw materials to drive Sustainability works when
performance, enhance durability and add considering every stage of
colour to paints, coatings, construction, the life-cycle and ensuring all
adhesives, printing inks, textile and paper stakeholders can mutually benefit
from one another's choices.
formulations.
Healthy future
We drive the formulation evolution by contributing The market is looking for solutions
innovative ideas and customised solutions, all the that are safe but that at the same
while making use of our technical expertise and Adhesives and sealants Construction chemicals time offer active health benefits.
broad portfolio of additives, functional fillers,
pigments, resins and speciality solvents. Smart functionality
For innovators in the coatings and
Our skilled team of product, formulation and sales construction industry, it’s
experts work to anticipate future needs and use their essential to meet the growing
knowledge to seek out valuable opportunities for our demand for high-quality products
customers. With a truly global presence, local and spaces.
market insights and in-depth technical
understanding, we have the ideas and expertise to Time for efficiency
support customers in developing the forward- Efficiency has always been a key
reaching innovations of tomorrow. consideration that ties everything
Industrial coatings Decorative paints together for the entire coatings
At IMCD Coatings & Construction, we focus on and construction value chain.
delivering the following future focused and
sustainable solutions that are vital to the market,
consumers, and society with our comprehensive
and complete portfolio of:
• Resins & binders

• Additives
• Functional fillers
• Pigments Read more >
• Speciality solvents
Printing inks
26
IMCD COATINGS &C

ONSTRUCTION
CASE
Shortages drive innovation “The availability of the

product for these
technologies remains
Last year we were approached by a customer in crisis. This young company’s main service is difficult. But we managed to
laying indoor and outdoor stone carpets, which are an excellent alternative ground covering in deliver and ensure the
living and office areas as well as around pools and for courtyards and patios. Demand for this business future of our
innovative flooring option was high, but due to global supply restrictions, the critical synthetic customer.”
resin needed to bond the small, coloured stones became unavailable.
Claude Delabeye
The synthetic resin in critical demand are comparable mechanical and ageing properties that Coatings & Construction, Textile,
polyurethane resins, which are widely used for was just as strong. Paper Business Unit Manager
manufacturing flexible and rigid foams, fibres, and
coatings with a wide range of applications, including After extensive testing, it transpired that our new
the automotive industry. In the coatings & formulation was even better than the original.
construction industry polyurethane resins are Processing is easier as it is less viscous, it works well
mostly used to protect metal substrates, concrete at low temperatures and has a shorter curing time,
flooring, and wood. which means it can be applied in a broader range on
weather conditions. The new solution is also solvent
The pandemic has disrupted many businesses in free, making it easier to work with and more
2021, and the coatings & construction market is no environmentally friendly.
exception. The supply chain was suffering from high
costs and shortages in the freight industry and force Innovation fosters continuity
majeures and high demand restricted the availability The new formulation we developed for our customer
of raw materials. Polyurethane resins were among has ensured the continuity of its business. Indeed,
the raw materials affected. due to the productivity improvements and
environmental benefits achieved, it offers
To help our customer, we needed to find a substitute opportunities for the customer's business to expand
using alternative resins or raw materials not affected further.
by global shortages.
The global raw material shortage, widely seen as
Valuable partnerships and expertise constraining, created the perfect opportunity to
We contacted our principal suppliers for help, they develop new and innovative formulations for the
suggested utilising cutting edge polyaspartic resin construction industry. This supply crisis has also
technology as a possible avenue we could pursue. At strengthened our partnerships with both customers
our laboratory in Lyon we tested a range of possible and suppliers.
formulations until we found a solution with
27
Food & Nutrition

TOMORROW’S MENU
Our market segments
At IMCD Food & Nutrition, we are Generation health

committed to solving food formulation Healthy living focused on
challenges. We focus on creating healthy, nutritional improvement and
diet customisation.
convenient and consumer trend-led
sustainable solutions. Our specialists Clean label goes global
have an in-depth understanding of A need for products that
our customers’ requirements. They have the fewest possible
contribute their own insights, as well as a ingredients.
comprehensive understanding of recipes,
Bakery & snacks Beverages Growing greener
applications and processes. They can help
Sustainability has become a
create truly outstanding solutions, in turn mainstream consumer priority.
inspiring the menu of the future.
Feast for the senses
We have a global presence. This means we have Health-conscious consumers
access to all the ingredients we need to help our are redefining indulgence. It no
customers develop and be innovative in their local longer means gorging yourself
markets. on rich or processed food.
At IMCD Food & Nutrition, we offer an extensive

range of top quality functional and speciality
ingredients and flavours, sourced from the world’s Dairy & dairy alternatives Nutrition
leading manufacturers. Our comprehensive portfolio
spans four categories:
• Taste
• Texture
• Nutrition
• Function
Read more >
Savoury & meat alternatives Confectionery & chocolate
28
IMCD FOOD & NUTRITION

CASE
Dairy & Dairy alternatives help “Our approach to look

beyond current expectations
develop sugar-free version rewarded us with a new

technical solution with a
of market-leading probiotic
recognised taste and texture
for a major brand. We are
pleased our out-of-the-box
dairy beverage thinking helped our customer

make a significant step
forward. The outcome of this
project will set the trend for
The Singapore government announced a hard-line initiative to reduce sugar and synthetic
future healthy functional
sweeteners in beverages, as part of their effort to combat diabetes in the population. beverages.”
To retain market share, our customer needed a new Our experts rose to the challenge Boey Teng Ann
reduced-sugar formula for their probiotic dairy Our challenge was complicated by the reputation of Sales Manager
beverage. Without a new formula, they would not this brand and product. Consumers throughout Asia,
meet the new requirements. Consequently, they and the rest of the world, know and love the specific
would no longer be able to advertise and would lose mouthfeel and taste. Changing the product texture
market share and revenue. and taste could damage the brand’s reputation.
New sugar-free formula required New formula with pectin

To meet the new guidelines, the probiotic dairy We suggested using citrus pectin to restore viscosity
beverage had to be sugar free. In the current in the product and so take advantage of the related
product, sugar plays an important role. It thickens suspension properties. Pectin also gives a pleasant
the drink, gives it its characteristic flavour and mouthfeel and releases flavours well. It has similar
texture, and keeps the all-important proteins in the mouthfeel and suspension properties to the
homogenised suspension. standard sugar-containing product.
The customer asked our team in Singapore to help Ready for market expansion
develop a formula for a sugar-free version. Simply Now our customer has embraced the pectin solution,
eliminating sugar changed the viscose drink into a they know how to produce sugar- and sweetener-
watery substance in which the proteins formed a free, low pH dairy beverages with good mouthfeel
sediment. What could replace the sugar and retain and suspension properties. They can use this to
the mouthfeel and suspension properties? launch a new range of sugar-free ready-to-drink diary
beverages. The technology can also be applied to
other low pH beverages such as fruit juices and
29
selected teas.
Lubricants & Energy

ACCELERATING PROGRESS
Our market segments
IMCD Lubricants & Energy serves the As qualified specialists in

lubricants, fuels, oil & gas, and energy lubricants, fuels and oil and gas,
sectors. The business group offers base IMCD Lubricants & Energy has
oils and additive components and packages been busy exploring the evolving
used in automotive and industrial oils and ways in which we use energy, and
how companies can lead that
greases.
change.
We also supply speciality chemicals for use in all Emissions reduction and
segments of the oil, gas and fuel markets, from sustainability are key issues for
upstream exploration, to midstream processing Automotive lubricants Industrial oils the lubricants & energy sectors.
(storing and transportation), through to downstream Our teams stay informed on these
refineries, petrochemical plants and final processing topics, to uncover innovative
of the fuels used by consumers at the end of the solutions for a cleaner future. We
supply chain. consider the latest developments
that allow brands to future-proof
To accelerate progress towards a sustainable future, their energy strategy in smart
we strive to supply more raw materials from and, convenient ways.
renewable sources and with reduced environmental
impact. We also focus on speciality chemicals that
reduce the production of CO2 in their application,
reduce emissions, and/or decrease energy
consumption. Metalworking fluids Fuels
We develop long-standing partnerships with leading

suppliers enabling us to offer a comprehensive
portfolio:
Energy – Upstream Energy – Midstream Energy – Downstream

• Drilling fluids • Storage • Refineries & petrochemicals
• Wellbore cements • Transportation • Industrial processes
• Well stimulation • Oil & gas processing • Water treatment
• Filtration Read more >
• Heat transfer fluids
• Emerging energy markets Energy
30
IMCD LUBRICANTS & ENERGY

CASE
A greasy challenge “Our aim is to accelerate the

progress of our customers’
Developing effective water- developments and we are

proud of our positive
resistant grease
contribution to this project.
We have acted as a strong
and reliable partner for our
customer,
Lubricants and greases are crucial to everything that has moving parts. demonstrating both technical
They ensure smooth operation, reduce wear and tear, and extend the life-span and supply chain expertise
of machinery and equipment. Specialised lubricants and greases can improve that delivered a successful
efficiency and so contribute to reducing emissions. outcome.”
One of our customers was needed support in Using our material, the customer was able to achieve Cory Lewis
developing a new industrial calcium sulfonate grease an 800 kg weld result, and 60 lbs on the Timken OK Technical Account Manager
for the North American and Mexican markets. It also Load test. It also achieved a water washout of less
had plans to expand production and distribution to than 1%.
Europe, so it wanted IMCD's help to develop a new
product as well as our expertise in technical and Success through teamwork
supply chain matters. We worked closely with the customer and our
top-tier supplier to identify the optimum ingredients
High-performance grease for the customer’s new formulation. We also called
The new calcium sulfonate grease complex is on resources from other parts of our own
intended for use in continuous casting in steel mills organisation. We delivered product development
and hydraulic hammers. The traditional grease used expertise and helped the customer with the
in these applications contains lithium which is not commercial, supply chain and logistics aspects of
only becoming increasingly difficult to source, but marketing their new product.
also has corrosive properties. The challenge was to
develop a calcium sulfonate grease with maximum Our customer is very satisfied with our contribution
weld load and Timken OK Load test performance, the to their complex project. They are now able to
test used to determine the load-carrying capacity of manufacture a new calcium sulfonate grease and
greases. The grease should also have excellent water distribute this throughout North America and
washout resistance too, i.e. limited washout of Mexico. With our assistance, they also have a supply
grease by water from a bearing, when tested under chain in place and can also launch their new product
specific conditions. in the European markets.
31
Synthesis
PRODUCTS FOR TOMORROW
Our market segments
IMCD Synthesis offers best-in-class Together with our premium

products together with unique expertise suppliers we develop new
for the most demanding industrial products and solutions to meet
applications and processes. With the customer needs. In all these
high level of technical and commercial areas, we help our customers and
suppliers create value through our
support we offer our customers can even
focused expertise.
design a completely new resin or solve
daily problems with the standard or novel
products our team can provide. With
our “design your own resin” approach
customers can easily work with IMCD teams
to find the right products.
With our application- and market-specific

approaches we serve a range of industries, from Polymer / Resin Producers
chemical intermediates to process technologies,
new materials and environmental technologies.
We are specialised in the following product ranges:
• Additives
• Bio-based chemicals
• Catalysts
• Intermediates
• Monomers
• Organic building blocks
• Processing aids
• Reactive diluents
• Solvents
• Surfactants
Read more >
Performance Chemical Producers
32
IMCD SYNTHESIS
CASE
Supporting product “We are proud of our position
development and
at the customer-supplier
interface. Our unique position
means we can create
sustainable growth opportunities for all parties.

By convincing our principal
supplier to develop the new
product for just two
When it comes to product innovation, our teams face many challenges. Last customers and by
year two customers were in the market to develop new generations of existing coordinating the specs for
products: a resin and a surfactant. These materials are used in end products the consortium we more than
such as lubricants, coatings and detergents. Our customers wanted to improve demonstrated our added
the composition of their products to enhance performance. As their long-term value.”
partner, they approached us for support.
Shani Renau Ferrer
Sales, Product and Technical
Product innovation through collaboration the laboratory work with our supplier until the Manager
In many instances we can reach out to our suppliers, manufacturing pilot trial commenced. We helped our
and they will have a solution we can work with customers conduct their own testing as well, in order
already in their portfolio. However, this type of to help make their products a commercial success.
acrylate raw material we were looking for was not
available in their portfolio, so we had to get creative. An effective bio-based solution
We were able to create an opportunity for both our
We recognised the commercial potential of the new customers and suppliers to move towards more
product our customers were looking for and sustainable products. Thanks to our network we
established a consortium including other interested were able to link up customers with a similar need
parties. With our understanding of market demand, and our intervention enabled the manufacturer to
we were able to collaborate with our principal expand their own bio-based product portfolio. Our
supplier to bring a new product innovation to the next goal is to promote this new product to
market: a better performing acrylate monomer strengthen this business with our existing customers
which would consist of 85% plant-based material. and to attract new users for this innovation.
To make this happen, our technical development

team provided detailed specifications and managed
33
Advanced Materials
A SUSTAINABLE TOMORROW
Our market segments
At IMCD Advanced Materials, we help our Recyclability

customers reimagine solutions to open Recyclability starts during product
new frontiers for their industries. We are development, and design
problem solving experts. We embrace innovation is essential to increase
challenges, and do not stop until we have recyclability and transform the
end-of-life process.
found the innovative solution needed to
differentiate products in the market. Building & construction Automotive Medical & healthcare Reusability
Reusable products have a major
We specialise in functional additives, speciality impact on plastic waste footprint,
compounds, adhesive solutions and advance energy consumption and the
composites. We serve 24 market segments and reduction of emissions and waste,
offer 16 different categories of products to support while also reducing pressure on
our customers’ needs, including: recycling systems.
• Functional additives
• Speciality compounds Bio-Based Content
• Adhesive solutions Wire & cables Packaging Marine More and more new bio-based
• Advanced composites sources and methods are being
And many other additivies. discovered that can be used as an
alternative to petroleum-based
Our dedicated taskforces actively track and analyse polymers, opening doors to
both global mega-trends and local market sustainable innovation.
developments to ensure that all our partners stay
ahead of the curve. We remain committed to CO2 Reduction & Energy
answering the question "what's next" to further Consumption
innovation and re-imagine what is possible. Transportation Industrial Sports & leisure Reducing carbon dioxide must be
approached holistically, starting
with selecting the right raw
materials, prioritising sustainable
sourcing and looking for energy-
efficient extraction methods.
Consumer goods Home appliances Electronics Read more >
34
IMCD ADVANCED MATERIALS

CASE
Innovating towards “Recycling these multilayer

structures is one of the
zero plastic waste market’s main concerns.

Finding a workable solution is
what makes our technical
approach invaluable.”
Manufacturing companies across the globe are seeking ways to reduce waste in
their processes. This not only helps reduce costs and make their processes more Marta Clavero
efficient, but also ensures proper sustainable business practices. Packaging Expert
Team Leader
Our customer works with multi-layer plastic film for We were able to supply a compatibilizer which
food packaging. They were looking for a way to reuse improved recycling properties of food grade films
scraps from their production processes and reduce containing ethylene vinyl alcohol (EVOH) or
their plastic waste. This waste comes from different polyamide (PA). The recycled material can now be
types of multi-layer plastics which are discarded at added to a transparent polyethylene (PE) or
various points in their processes. It includes polypropylene (PP) layer in a new multilayer
polyethene (PE) and polyamide (PA) which cannot structure. The resulting film is suitable for use in
simply be put into the melting pot and be reused food applications
without losing its transparency and thermoforming
properties. In food applications, consumers demand Moving beyond recyclable goals
transparent food coverings. From 2018 to 2021 our customer was able to
increase reuse of offcuts to about 80%. Their
Special additives required ambition is to achieve 100% recycling by the end of
Our customer had been experimenting with different 2021. By the end of the first quarter in 2021, our
processing methods and tested different standard solution had pushed this percentage up to 95%.
compatibilizers without success. A compatibilizer is We have been working with this customer towards
the additive compound needed to successfully 100% recyclability for several years. With this
combine different types of plastics. The big development we hope to help other manufactures
challenge here was to find a way of mixing PA and PE reduce their plastic waste too. It also opens new
while retaining transparency with a sufficient opportunities for recycling plastics and polymers
percentage of recycled multi-layer film scrap that which would otherwise be incinerated, be dumped in
can allow the plant to achieve zero residue landfill, or worse, end up in the environment and
generation. oceans.
35
FOREWORD BY
THE CEO Strategy & Business
2021
HIGHLIGHTS
2021 FINANCIAL As a leading speciality chemicals distribution partner, IMCD has an important role to play In line with this, Partnership is the third of our
HIGHLIGHTS IMCD values. Some business cultures thrive trough
in society, including by protecting health and welfare, improving economic prosperity and constructive conflict and competition; in IMCD,
GLOBAL
PRESENCE helping to create a more sustainable future. however, we value employees who develop and maintain
positive partnerships with suppliers and customers - for
HISTORY
many fruitful years.
SHAREHOLDER IMCD strives to be the global sales channel partner Firstly, Entrepreneurship is one of our core
INFORMATION of choice – a distributor who suppliers of speciality values, which we apply for instance when we hire Integrity and trust are non-negotiable and are as valid
chemicals and ingredients turn to for first-class senior managers from external sources: in our in a small country in an emerging market as in a large
ABOUT IMCD
technical expertise and solutions that help them interview process we select individuals with proven country with a mature market. Our country Managing
OUR BUSINESS innovate and align their business operations to realise entrepreneurial experiences or capabilities. Finding Directors are the guardians of this value; they know and
GROUPS their growth targets. highly educated, knowledgeable talent in the chemical apply our business principles on a daily basis. We have
industry is not an easy task, and we make it even zero tolerance for anyone who displays conduct or takes
STRATEGY &
BUSINESS Our culture harder by insisting on the candidate having previous decisions not aligned with our values.
Culture and values are important to us. They are entrepreneurial experiences; after all, we know very well
PERFORMANCE needed to guide behaviours and decisions of managers what type of individual will flourish in IMCD. IMCD maintains facilities for its employees and
GOVERNANCE
and employees in a desired direction and in a certain partners to report irregularity or incident to the Group
manner. Our business strategy has been very stable and Freedom to act is another value that allows the type Compliance Officer, either by direct contact or through
FINANCIAL clear, so individuals know in which direction we want to of person described above to make best use of their the use of the IMCD Ethics and Compliance Hotline.
STATEMENTS
2021
move the company. talents. We believe that the best decisions are those This hotline, hosted by an external independent party,
that are taken close to the local market and benefit offers a secured digital portal, accessible 24/7 across
In an entrepreneurial business like IMCD, where the our customers and we don’t want to stifle sound the globe, and the option to report anonymously
freedom to act is key, we cannot - and do not - want local judgement with too many centralised policies,
to simply set out the desired employee behaviour in processes, rules and regulations. The last but not least of our values is Financial
detailed handbooks: instead, we outline the principles discipline. We report our finances and financial
that guide decision making and conduct. Our values Thirdly, since we operate as the middle-man between transactions transparently and in a timely manner
cut across borders, languages and cultures and are the suppliers (that's to say large chemical companies and through global ERP and Business information systems.
same everywhere, at all times. ingredient producers) and our customers, we face When we acquire company, we immediately start a
commercial realities on two ends of the spectrum. change process to implement our integrated risk and
The combined IMCD values and behaviours of We know that these commercial roles are best control framework together with our global IT systems
employees define the IMCD culture. Here are a couple of performed by individuals who seek common grounds, and applications.
examples that bring our culture to life. see opportunities, find solutions and act as true
partners for our suppliers and customers.
36
IMCD's business principles, core values and ethics are

FOREWORD BY reflected in our Code of Conduct, which is available on
THE CEO
our website, in multiple languages.
2021
HIGHLIGHTS
Value creation
2021 FINANCIAL Through its operations, IMCD transforms capital inputs
HIGHLIGHTS into outputs and outcomes that create value for the
organisation, its stakeholders and society at large over
GLOBAL
PRESENCE the short, medium and long term.
HISTORY On the next page, IMCD's value creation model

shows how the group uses the resources, capabilities
SHAREHOLDER
INFORMATION and expertise at its disposal to the benefit of
its stakeholders.
ABOUT IMCD
OUR BUSINESS
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
“With extensive local
GOVERNANCE
networks, market
FINANCIAL
STATEMENTS intelligence and first
2021
class technical
expertise and
solutions, we help
our suppliers and
customers simplify,
innovate and grow
their business
operations.”
37
FOREWORD BY
Our Value creation Mission
THE CEO Input Vision Output Outcome Impact
2021
HIGHLIGHTS Financial
Added value 29%
2021 FINANCIAL € 612.5 million
Organic
HIGHLIGHTS Technical Market knowledge gross profit
Working capital
expertise (Local/Regional) growth
GLOBAL
PRESENCE
2.3
Net Debt / Financial
HISTORY
Operating ebita
9% resilience
Extensive Sales team Acquisition
SHAREHOLDER
INFORMATION customer (Local) gross profit
Infrastructure
coverage growth
ABOUT IMCD 8
business groups
OUR BUSINESS
GROUPS
3 regions
Technical 10.9% Environment
Partnership expertise and EBITA margin
STRATEGY & 92 offices
BUSINESS 107 warehouses approach sustainable
65 laboratories innovation
PERFORMANCE
20%
GOVERNANCE Intellectual EBITA CAGR
Global Speed and (5 years)
FINANCIAL 43,000 reach flexibility People
STATEMENTS products
2021
Human At IMCD, we create a world of opportunity for our partners. It is our way of being, € 3.4 billion
working and why we are able to surpass expectation in everything we do. As our Revenue
3,740 proposition, it encapsulates the diverse nature, breadth and depth of opportunities
employees created for stakeholders when engaging with us. It is our purpose, our mission and
connects us under one common goal – to see beyond what is, to what will be.
63%
51% 49% Earnings
Product
female male per share
growth
Social & relational
56,000 Risks
customers € 1.62
Trends Dividend
Governance
2,600 per share
suppliers
Organisation
38
Our strategy • highly professional team of technical experts Finding suitable acquisition targets is an ongoing
FOREWORD BY supported by state-of-the-art digital tools process related to ensuring the right cultural and
THE CEO
IMCD aims to create value for its stakeholders through • ability to deliver organic and acquisition led growth business alignment. IMCD has strict acquisition criteria
2021 the pursuit of sustainable growth of its revenues that are, first and foremost, based on identifying
HIGHLIGHTS and results, driven by organic growth alongside Organic growth a strategic fit that provides a platform for further
2021 FINANCIAL strategic acquisitions where appropriate. First and IMCD's organic growth strategy has four main drivers: growth both geographically and in complementary
HIGHLIGHTS foremost, IMCD strives to increase market share for • increasing market share by outperforming through product markets. Acquisitions are always subject to the
the suppliers it represents. In addition, IMCD uses sales excellence availability of appropriate management attention and to
GLOBAL
PRESENCE its market intelligence and technical expertise to • investing in product and formulation know-how IMCD’s requirements for maintaining a strong balance
identify opportunities to grow its business across the • expanding with existing suppliers into additional sheet while limiting financial and operational risks.
HISTORY different geographies. geographies and adding new suppliers and products
to the portfolio The primary aim in all acquisitions is to support
SHAREHOLDER
INFORMATION The long-term strategy is in line with the • GDP growth in the different geographies where sustainable added-value growth for IMCD's suppliers
ongoing consolidation of the speciality chemicals IMCD operates and customers. Barring exceptional circumstances,
ABOUT IMCD distribution market, with manufacturers increasingly an acquired company should be able to contribute
OUR BUSINESS
looking to outsource to a select number of multi- IMCD aims to achieve organic growth that exceeds to IMCD's cash earnings per share from the date
GROUPS territory partners. market growth in general. Expanding our current of acquisition. The majority of our acquisitions are
supplier relationships and identifying new suppliers financed by our own strong cashflow and flexible
STRATEGY &
BUSINESS
As part of its approach, IMCD maintains a diversified who add value and choice for our customers is a loan facilities.
and asset-light business model with an outsourced fundamental aspect of our organic growth strategy. We
PERFORMANCE supply chain infrastructure. IMCD uses a multi-channel have a coordinated and focused approach towards both Newly acquired companies are integrated using a well-
approach to serve its customers; via personal contacts expanding market share of our existing products and structured integration programme that provides a swift
GOVERNANCE
as well as by providing 24/7 access to its online our own business development, with the aim of offering transition to IMCD's internal reporting, control and
FINANCIAL customer portal. All this provides us the flexibility full product portfolios across all geographies. compliance systems and ensures optimal realisation of
STATEMENTS and resilience to respond and adapt to changing operational and business synergies.
2021
circumstances and demands from both the market Acquisition growth
and society. IMCD benefits from a highly fragmented distribution
market and continuing consolidation trend, largely Opportunities, risks and resilience
Growth strategy execution driven by suppliers looking to optimise their sales
IMCD focuses on achieving growth through long-term channels. Since its formation, IMCD has acquired Identifying, assessing and managing risks and
partnerships combined with market expertise, technical more than 60 companies, resulting in a broad opportunities is a constant and integral part of IMCD's
development and innovation. This strategy has yielded geographical footprint globally. Using its extensive strategy execution and business operations.
solid growth based on the following strengths: network and in-depth market knowledge, IMCD pursues
• leading international sales, marketing and strategic acquisition opportunities to further expand Opportunities and focus areas
distribution platform focused on speciality chemicals and enhance its business model in both developed and IMCD is focused on growing the brands of its suppliers
and ingredients emerging markets. and customers. IMCD continues to pursue growth in all
• a diversified and resilient business model regions with the aim of maintaining a leading position in
• superior margin conversion and cash conversion the distribution of speciality chemicals and ingredients
• proven and committed management team locally and around the world.
39
IMCD is actively exploring ways to optimise its services IMCD's long-term strategy to create sustainable growth
FOREWORD BY by digitalising its business processes even further. and value for its stakeholders.
THE CEO
IMCD's global and integrated customer relationship
2021 management systems and product management IMCD operates in different, often fragmented market
HIGHLIGHTS systems serve as the foundation for the further segments in multiple geographic regions, connecting
2021 FINANCIAL digitalisation of IMCD's business processes. The many customers and suppliers across a very diverse
HIGHLIGHTS evolution towards digital has been materialised by product range. In general, results are impacted
the introduction of the MyIMCD customer portal. by macroeconomic conditions and developments in
GLOBAL
PRESENCE MyIMCD is an easy to use collaboration environment, specific industries as well as by the ability to maintain
going beyond product search and self-service. On-line and expand commercial relationships and the timing,
HISTORY services and the added value offered by our sales teams scope and impact of acquisitions.
are converging and work synergistically; combining the
SHAREHOLDER
INFORMATION best of two worlds. Customers have 24/7 access to IMCD is financially resilient as a result of its wide
the portal, for example to download documents, ask geographical and market presence and its large number
ABOUT IMCD for samples, quotes or technical support, place orders of suppliers, customers and products. Fluctuations
OUR BUSINESS
and maintain an overview of all historical and actual in the price of basic raw materials generally have a
GROUPS information of the relationship. Combined with personal limited impact, given that the speciality products in
contact and bespoke actions of our sales teams, we IMCD's portfolios are highly functional and typically
STRATEGY &
BUSINESS
collaborate in the way the customer prefers and via any used in relatively low volumes. IMCD's resilience is
channel the customer desires. further enhanced by its outsourced supply chain
PERFORMANCE infrastructure and asset-light business model. IMCD's
Our customers increasingly search on-line for products, financial resilience is backed by a capital structure that
GOVERNANCE
solutions and formulations. IMCD embraces multi- is focused on flexibility, a strong balance sheet and
“IMCD is actively
FINANCIAL channel marketing activities to support the brands limited risk. exploring ways to
STATEMENTS of its suppliers in the most extensive way. By using
2021
marketing automation, IMCD aims to share the right An overview of the key risks to IMCD's strategy
optimise its services
information to the right person on the right time to execution and business operations and a description of by digitalising its
and as a result offers the right value to its business how IMCD assesses and manages these risks are given
partners. Well equipped with the knowledge and in the risk management section of this Annual Report.
business processes.”
formulation expertise of our suppliers we anticipate on
trends, challenges and innovations. Marketing is closely Management approach
connected with MyIMCD portal and IMCD's commercial As a responsible distributor and importer of chemicals,
teams to ensure adequate and quick response to the IMCD cares for the safety and health of people and the
customers’ needs. environment. IMCD ensures compliance with applicable
laws and regulations in the markets we serve, and
Risks and resilience recognises the importance of responsible distribution
The ability to pro-actively respond and adapt to within the lifecycle of chemical products.
changing circumstances and demands from both the
market and society is a prerequisite for the success of
40
To fully engage in its redefined compliance and Sustainability We are committed to offering products and solutions
FOREWORD BY sustainability plans, IMCD adopted a more centralised within our portfolio that focus on the health and
THE CEO
approach and re-organised part of its global IMCD recognises that, as it increases its global well-being of our consumers, the environment and
2021 organisation to take on this role. The resulting presence, the focus on sustainable management, - society, while managing our operational footprint in a
HIGHLIGHTS Regulatory, Quality and Sustainability organisation the place where business and sustainability meet -, responsible way.
2021 FINANCIAL reports directly to the Board of Management. Roll-out becomes increasingly more important. We believe that
HIGHLIGHTS of its strategy, policies, systems and digital tools will sustainable growth is not only measured by our social In 2018, IMCD started to work on defining its group-
continue in 2021. or environmental impact, but also by our efforts to wide sustainability approach and internal sustainability
GLOBAL
PRESENCE improve financial performance and embed this in the task force was established. The key areas which
IMCD's group companies are encouraged to take on an IMCD business model. IMCD strives to stimulate sustainable practices were
HISTORY active role in the local implementation and development identified. In 2021, these key areas were further re-
of relevant practices that contribute to the globally IMCD's contributions to the environment and society defined as part of the new materiality assessment, to
SHAREHOLDER
INFORMATION set agenda. begin with its suppliers and through its people, have more focus. The IMCD’s sustainability priorities
expanding throughout the value chain. The purpose support at least four of the United Nations Sustainable
ABOUT IMCD of IMCD’s sustainability approach is to grow the Development Goals (SDGs), in line with the Chemical
OUR BUSINESS
business while reducing its environmental footprint as Sector SDG Roadmap (published in July 2018 under the
GROUPS demonstrated through clear and measurable metrics. guidance of the World Business Council for Sustainable
STRATEGY &
BUSINESS Key areas for sustainability
PERFORMANCE
GOVERNANCE
FINANCIAL
STATEMENTS
2021
FINANCIAL ENVIRONMENT PEOPLE PRODUCT GOVERNANCE
RESILIENCE
Operating globally, in a fast-paced and IMCD takes the climate protection IMCD is proud of its people and Product stewardship is at the core Integrity is fundamental to the way
competitive market, exposure to risks seriously, as well as preparing and considers them to be its most of IMCD’s activities. Our regulatory IMCD does business. IMCD has strong
is inevitable. Being able to adapt to adapting for the associated risks and valuable asset by far. IMCD fosters and quality teams ensure compliant values and clear policies and standards
disruptions and rebound quickly during opportunities together with suppliers an international and entrepreneurial and sustainable performance, and our in place to ensure that its employees
adverse circumstances is paramount. and customers and in logistics. IMCD business culture that enables technical experts constantly analyse always act in an ethical manner. By
IMCD works hard to cultivate a continuously seeks to optimise its employees to develop in an inspiring new technologies and turn market asking our partners to do the same, we
culture of resilience, combining an daily operations and focus on reducing atmosphere. We believe that our trends into viable green, healthy aim to have a positive influence across
entrepreneurial spirit with sound greenhouse gas emissions and the diversity in gender and nationality and more sustainable applications, our value chain.
financials and reporting discipline. carbon footprint of our activities and contributes to our overall performance. formulations, and solutions. With
in the value chain. IMCD ensures the our Sustainable Solutions programme,
highest standards are applied for its IMCD champions the sustaionability
waste handling and disposal to avoid journey of its suppliers and
spills or environmental impact. de-complexifies the market and
the sustainability landscape for
its customers.
41
Development). We have incorporated clear targets

FOREWORD BY into our annual sustainability report and finalised our
THE CEO
commercial approach relating to these targets.
2021
HIGHLIGHTS IMCD embarks on a journey to build a solid
2021 FINANCIAL sustainability management system. We know that it is
HIGHLIGHTS also a priority for our business partners. The EcoVadis
platform for us is a way to engage with our supply chain
GLOBAL
PRESENCE partners, to analyse our sustainability performance
and identify areas of improvement. In 2021, the IMCD
HISTORY Group has been awarded a gold rating by EcoVadis.
EcoVadis assessed the sustainability performance of
SHAREHOLDER
INFORMATION IMCD Group in four key areas, namely Environment”,
“Labour and Human Rights”, “Ethics” and “Sustainable
ABOUT IMCD Procurement”. With this result IMCD Group belongs to
OUR BUSINESS
the top 5 % of 75,000 active companies working with
GROUPS this programme. The gold rating rating reassures our
business partners that IMCD meets the sustainability
STRATEGY &
BUSINESS
standards in all areas of its business. It also affirms that
we are making a progress in our sustainability effort for
PERFORMANCE continuous improvement.
“IMCD's
GOVERNANCE
contributions to
FINANCIAL
STATEMENTS the environment
2021
and society begin
with its suppliers
and through its
people, expanding
throughout the
value chain.”
42
Key areas for sustainability and governance. For effective management, the IMCD's sustainability priorities align with targets
FOREWORD BY In 2021, IMCD was further shaping and implementing material topics were categorised in these four pillars relating to at least four of the SDGs that the chemical
THE CEO
its group-wide sustainability approach. We published and classified as core focus areas, sustainability sector identified as goals it could contribute to. These
2021 our 2020 Sustainability Report. We refreshed our enablers and areas to monitor. More information will be are shown below.
HIGHLIGHTS materiality matrix. We launched our "IMCD Sustainable included in the IMCD Sustainability Report for 2021
2021 FINANCIAL Solutions Framework”, a market-oriented programme which is set to be published mid-2022.
HIGHLIGHTS that promotes products with a better environmental or 3. Good Health and Well-Being
health performance compared to mainstream products The Global Supply Chain Management & RAQS Director
GLOBAL
PRESENCE in the market. In this way, we can use our role as heads the IMCD sustainability task force and as such
distributor to have a bigger impact than we otherwise responsible for managing and monitoring the climate IMCD is committed to product stewardship. Its technical
HISTORY would by focusing solely on our internal operations. change risks. He will lead the policy development of the experts constantly analyse new technologies and turn market
climate change agenda and bring additional executive trends into viable green, healthy and more sustainable
SHAREHOLDER applications, formulations and solutions. By putting this
INFORMATION Our approach to sustainability responds to the global oversight to this important strategic issue. Updates are
expertise to work for the benefit of our suppliers and
challenges for our planet and society as a whole and regularly tabled for discussion at the Executive customers, IMCD contributes to increased availability of
ABOUT IMCD is embedded in the IMCD business model. It tackles Committee. products with health and safety benefits, while reducing their
OUR BUSINESS
the most material topics to our business and our environmental footprint.
GROUPS stakeholders and translates our overall sustainability The Executive Committee will maintain oversight of our
efforts into tangible goals. climate related financial activities, reporting and risk
STRATEGY & 8. Decent Work and Economic Growth
BUSINESS
management. The Management Board discussed the
In our 2020 Sustainability Report published in July strategy with regards to climate change with the
PERFORMANCE 2021, we provided a clear carbon emission reduction Supervisory Board in 2021.
target per million EUR EBITDA which we track IMCD employs over 3,700 people globally and, through its
GOVERNANCE operational activities, reaches some 2,600 suppliers and
every year. This way we can manage our progress Sustainability reporting
more than 56,000 customers. This means that IMCD plays a
FINANCIAL and demonstrate our commitments to improving In 2021, IMCD published its Sustainability Report for the key role in generating rewarding work opportunities, providing
STATEMENTS our performance. year 2020. The report shows IMCD's performance in fair working conditions and contributing significantly to
2021
figures and and provides further insight into the group's economic growth, both directly and indirectly.
An inclusive approach with a forward-looking operations, locations and environmental impact.
perspective on sustainability was taken when re- Thanks to improvements in how sustainability data is
assessing the IMCD materiality. Together with an being collected, IMCD has been able to broaden the 12. Responsible Consumption and production
external advisor IMCD held a project covering a scope of the group entities included in the report.
desk research, interviews of internal and external
stakeholders and workshops. In line with GRI SDG alignment 13. Climate Action
standards, the refreshed materiality topics reflect IMCD supports the initiative by a selection of leading
IMCD’s significant economic, environmental and social chemical companies and industry associations to
impacts, and substantively influence the assessments translate the United Nations Sustainable Development By simplifying its suppliers' supply chains on a local and a
and decisions of stakeholders. Outside-in and inside- Goals (SDGs) into a Chemical Sector SDG Roadmap global scale, IMCD enhances process efficiency, increasing
out impacts were assessed to comply with double (published in July 2018 under the guidance by the efficiency in the use of resources while reducing emissions,
energy consumption and waste. IMCD not only achieves
materiality. The IMCD sustainability task force identified World Business Council for Sustainable Development). this for its partners, but is also committed to working in a
four key pillars in which IMCD strives to stimulate responsible, ethical and sustainable manner at all times itself.
sustainable practices: environment, people, product
43
INSIGHT
Leading the sustainable

transformation
Sustainability is not a goal to be reached but a way of thinking, a
principle we are guided by to future-proof our business.
The world has witnessed exponential economic growth, and with it an exponential
rise in GHG emissions. On top of this COVID-19 has caused a major disruption to
people's lives and livelihoods. While the pandemic is a setback for sustainable
development, the SDGs along with the 2030 Agenda and the Paris Climate
Agreement provide the right compass for leaving a positive impact on the
environment and society going forward.
Carbon is more than an environmental burden, it’s a business liability. Consumers

consider sustainability information when making purchasing decisions and
millennials want to work for companies that care about climate change. In 2020,
the company established the IMCD “Sustainable Solutions” where we use our
core competence, market intelligence, technical expertise, and product knowhow
to understand and reduce our GHG emissions and contribute to a more
sustainable world.
Ten Principles of the United Nations Global Compact

IMCD supports the Ten Principles of the United Nations Global Compact, the
largest corporate sustainability initiative, on human rights, labor, environment,
and anti-corruption and we are committed to implementing those principles.
Ecovadis Gold rating

The company has received a Gold rating from EcoVadis, a leading business
sustainability rating index. This reassures our partners that we meet the
sustainability standards in all business areas, and it places us within the top 5% of “Sustainability means meeting our own needs
companies globally. It is a testament to our ongoing commitment to without compromising the ability of future
sustainability.
generations to meet their own needs.”
Stan Bijsterveld
Global Supply Chain Management & RAQS Director
44
FOREWORD BY
THE CEO Performance
2021
HIGHLIGHTS
2021 FINANCIAL Despite the continuing challenging market conditions, including persistent supply chain the relationships with our major suppliers and to use
HIGHLIGHTS our network to start-up new distributorships and offer
constraints and COVID-19 related restrictions, the outcome of 2021 was a very strong. pan-regional services. This strategy is supported by
GLOBAL
PRESENCE All regions delivered double digit EBITA growth in 2021. In addition to the strong organic having operating companies with well-trained people
EBITA growth, we realised substantial acquisition EBITA growth, which is the result of the in most countries we work in supported by technical
HISTORY
application laboratories and an integrated and modern
full year impact of acquisitons completed in 2020 and 2021. IT system (commercial, distribution and financial). We
SHAREHOLDER
INFORMATION further continue to strengthen our market groups and
We achieved successes in the further execution of our strategy, with acquisitions technical capabilities to manage our strongly increasing
ABOUT IMCD
in Turkey, the Netherlands, Austria and Southeast Europe, South Africa, Colombia, business and to exploit group synergies.
OUR BUSINESS
GROUPS
Caribbean and Central America, Mexico, Indonesia, China and Australia/New Zealand. The number of employees increased from 3,298 at
the end of 2020 to 3,740 as at the end of 2021. The
STRATEGY &
BUSINESS Through our technical, marketing and supply chain expertise, IMCD continues to deliver increase in our well diversified and highly qualified
sustainable added value and growth to both its customers and principal partners in more employee base further facilitated business growth in
PERFORMANCE all regions. We are tracking our staff turnover and
than 60 countries. retention figures carefully especially in these post-Covid
GOVERNANCE
times. As training and development opportunities are
FINANCIAL effective ways of realising employee engagement and
STATEMENTS The year 2021 can be characterised as another imbalance between strong demand and supply at the commitment, we continue to enable our employees
2021
challenging year, with strong growth in a dynamic global levels, has intensified shortages and led to price development via our digital e-learning platform as well
environment. Although the pandemic continued to volatility, affecting many countries and sectors. as through business group specific courses.
pose unprecedented challenges for our people and
the communities where we operate, the dedication, Despite the continuing challenging market To support customers’ technical needs, IMCD operates
resilience and flexibility of our teams and the solid circumstances, the financial resilience provided by 65 application laboratories, spread across the world,
fundamentals of our business model resulted in a IMCD’s multi-market and geographical coverage, sharing detailed application knowledge relating to
strong performance. Throughout the pandemic the combined with its diversified supplier and product its comprehensive speciality ingredient portfolio from
health, safety and wellbeing of our employees and our portfolio, have enabled IMCD to deliver very strong leading supplier partners. Together with IMCD's
business partners have been first priority. results in 2021. business partners, IMCD's technologists are developing
innovative application concepts. IMCD's state-of-the-
Compared to 2020, many of the economies we operate Commercial and organisational art laboratory facilities also play an important role in
in showed a strong rebound in growth in 2021. Global IMCD’s strategy centres on deepening and extending its training and sharing knowledge with the IMCD sales
shipping disruptions and input shortages kept the pan-European network and expanding its base in the force, ensuring they stay abreast of market trends and
industry from expanding production in line with the Americas, Asia Pacific and the Middle East & Africa.
rapid growth in demand for manufactured goods. The Part of this strategy is to strengthen and intensify
45
developments and fully understand the functionalities marketing, we reach prospects and customers looking
FOREWORD BY and characteristics of the products in the portfolio. for relevant products and services and we target
THE CEO
prospective leads to promote our product portfolio and
2021 As part of the strategic move to increase its regional the technical services we offer. We closely monitor
HIGHLIGHTS technical footprint, in 2021, IMCD opened an ultra- customer behaviour and interests by using marketing
2021 FINANCIAL high temperature (UHT) pasteurisation laboratory in automation tools and data analytics on our IMCD and
HIGHLIGHTS Jakarta, Indonesia. The facility is designed to support affiliate websites. This data is used to continuously
complex ingredient formulations in the application of improve our efforts and serve our prospects and
GLOBAL
PRESENCE dairy, beverages and soups. customers in the best possible way, while providing
the sales teams with actionable insights. The global
HISTORY In 2021, IMCD relocated its Gurgaon office to Noida, and local digital marketing teams collaborate in IMCD's
Uttar Pradesh, India and expanded its laboratory global marketing network, sharing best practises
SHAREHOLDER
INFORMATION capabilities. The new location now houses laboratory and learnings.
space for Coatings and Construction that will cater to
ABOUT IMCD PAN India customers, as well as Beauty & Personal In 2021, we continued the roll-out and scale up of the
OUR BUSINESS
Care laboratory which will provide support to the North MyIMCD portal, our B2B platform that provides access
GROUPS Indian market. to product information and documentation and order
information, while also offering facilities to request
STRATEGY &
In addition to these technical centres, IMCD expanded product samples, place orders, and collaborate with our
BUSINESS
its laboratory facilities as a result of the acquisitions technical sales teams on a 24/7 basis. Our centrally
“With the expertise
PERFORMANCE of Megasetia (Pharmaceuticals, Personal Care and Med managed IT landscape allows us to work with uniform available in its
Tech) and Syntec (Personal Care). product, supplier, customer and market information,
GOVERNANCE
which enables us to quickly add all kinds of digital
laboratories and
FINANCIAL Digitalisation and IT functionalities to our MyIMCD portal. technical centres,
STATEMENTS We continue to optimise our global processes for
2021
(pre)sales, supply chain, health, safety, quality and In 2021 we further optimised our IT governance and
IMCD supports its
finance & control in order to assure operational cyber security processes and controls. customers with
excellence and an ongoing high level of service
to our business partners. Operational improvements Sustainability
complex ingredient
are facilitated via sophisticated, modern IT solutions IMCD is committed to championing its partners formulations. In
supported by external specialists. IMCD considers its sustainability journeys and to creating a world of
digital platform to be a key facilitator for its omni- opportunity for a sustainable future for our principals,
2021, IMCD
channel business model and for securing a leading customers, employees, and the communities we touch. succesfully increased
position in the speciality chemicals distribution market.
In July 2021, IMCD published its third sustainability
its technical footpint
In 2021, we made good progress with our omni- report, providing information about energy in the APAC region.”
channel marketing approach and in the further consumption, water use and greenhouse gas emissions
digitalisation of our business processes. Nowadays, for 2020, with again a further extended geographical
digital marketing is a key element of our commercial scope compared to the previous year. IMCD continues
activities supported by our digital tools. Through digital to work on improving its data recording and collection
46
so that we can ultimately provide GRI-compliant On 6 January 2021, IMCD acquired 100% of the shares On 14 May 2021, IMCD acquired Siliconas y Químicos
FOREWORD BY integrated reporting on a global scale. in Ejder Kimya Ilaç Danışmanlık Sanayi ve Ticaret A.Ş. ("Siliconas"), based in Bogotá, Colombia. Siliconas
THE CEO
("Ejder Kimya"). Ejder Kimya is a Turkish chemicals is a speciality chemicals distributor and serves the
2021 The company has been awarded the EcoVadis Gold distributor of raw materials for personal care and personal care, coatings, silicones and other speciality
HIGHLIGHTS rating, a further reassurance for our partners that pharmaceutical products and food additives. It has a industrial markets and perfectly complements IMCD's
2021 FINANCIAL we meet the sustainability standards in all business strong, solid position in the personal care market in existing pharmaceuticals, food and nutrition business in
HIGHLIGHTS areas. It demonstrates the progress in integration of the Turkey. Ejder Kimya’s personal care business generated Colombia. Siliconas has 25 employees and generated a
principles of Sustainability/CSR into our business and a revenue of approximately EUR 6 million in 2020. The revenue of USD 9 million in 2020. IMCD acquired 80%
GLOBAL
PRESENCE management system. company is fully integrated into IMCD Turkey. of the shares of Siliconas; the remaining 20% will be
acquired in 2022.
HISTORY Consumers are making the switch to sustainability On 7 January 2021, IMCD acquired the pharmaceutical
and are actively seeking out green products. In business of Peak International Products B.V. ("Peak On 19 May 2021, IMCD acquired 100% of the
SHAREHOLDER
INFORMATION 2021, the company established the IMCD “Sustainable International"). Peak International is a Dutch-based shares in Andes Chemical Corp. (“Andes Chemical”).
Solutions Framework”, where the company uses its core distributor in the active pharmaceutical ingredients Headquartered in the Miami metropolitan area, Andes
ABOUT IMCD competence, market intelligence, technical expertise, business for Benelux, Vietnam, Germany and Israel. The Chemical is active in Caribbean and Central American
OUR BUSINESS
and product know-how to contribute to a more Peak pharmaceutical business generated a revenue of countries, Colombia and Peru. Andes Chemical serves
GROUPS sustainable world. This we do in close collaboration approximately EUR 6 million in 2020. the coatings, adhesives, sealants, and elastomers
with our suppliers and customers, decomplexifying (CASE), construction, cosmetics, personal care,
STRATEGY &
BUSINESS
sustainability and supporting them in their effort to On 8 January 2021, IMCD acquired 100% of the shares plastics, pharmaceuticals, and HI&I industries. Andes
reduce their environmental footprint. in Siyeza Fine Chem Propriety Limited (“Siyeza”). Chemical has 43 employees and generated a revenue of
PERFORMANCE Siyeza, based in Johannesburg, is a distributor USD 46 million in 2020.
In addition, IMCD signed the United Nations Global of pharmaceutical, veterinary, food and personal
GOVERNANCE
Compact, the world’s largest corporate sustainability care speciality chemical ingredients in South Africa. On 2 June 2021, IMCD acquired 100% of the shares
FINANCIAL initiative whereby the company drives awareness With 27 employees, Siyeza generated a revenue of in Shanghai Yuanhe Chemicals Co. (“Yuanhe”). Yuanhe
STATEMENTS and action in support of achieving the Sustainable approximately EUR 16 million in 2020 through their is a service solution provider focused on offering
2021
Development Goals by 2030. representation of world leading producers from Europe innovative speciality chemicals and ingredients for the
and Asia. The company is fully integrated into IMCD coatings, inks and textile industry. With 20 employees,
Acquisitions South Africa. Yuanhe generated revenue of EUR 13.2 million in 2020.
As a group we remain focused on aligning ourselves
with industry leaders, grow our market share In April 2021, IMCD divested its Nutri Granulations On 19 August 2021, IMCD acquired 100% of the
organically and through selected acquisitions, and manufacturing assets and associated business, which shares in Materias Químicas de México S.A. de C.V.
continue to optimise our business model. was acquired by IMCD as part of the ET-Horn and Pluralmex S.A de C.V. (together: “Maquimex”),
acquisition in 2018. Located in La Mirada, CA and, with based in México City. Maquimex is an asset-light
In the execution of its strategy to create sustainable 22 employees, Nutri Granulations manufactures food speciality chemicals distributor providing commercial
growth for its stakeholders, IMCD completed the grade and USP grade calcium carbonate granulations and technical expertise in the preservatives, HI&I,
acquisition of eight businesses in 2021. In addition for the nutraceuticals, food, and pharmaceuticals energy, water treatment and other industrial markets.
to these closed transactions, IMCD signed four share markets. Nutri Granulations realised a revenue of Maquimex has 44 employees and generated a revenue
purchase agreements which are closed, or will be closed USD 11 million in 2020. The divestment aligns with of approximately USD 29 million in 2020.
in 2022. IMCD’s strategy to focus on the sales, marketing and
distribution of speciality chemicals and ingredients.
47
On 29 September 2021, IMCD signed an agreement

FOREWORD BY to acquire 100% of the shares in Aquatech Speciality
THE CEO
(Shanghai) International Trading Co., Ltd. and Aquatech
2021 Speciality (Guangzhou) Trading Co., Ltd. (jointly
HIGHLIGHTS “Aquatech”) in China. Aquatech is active in waterborne
2021 FINANCIAL solutions in coatings, ink, and textile industries.
HIGHLIGHTS Aquatech has 10 employees and generated a revenue
of EUR 6.7 million in 2020. The transaction is expected
GLOBAL
PRESENCE to be closed early in 2022.
HISTORY On 17 November 2021, IMCD signed an agreement

to acquire 100% of the shares in PT Megasetia
SHAREHOLDER
INFORMATION Agung Kimia (''Megasetia'') in Indonesia. Megasetia
is a distributor of speciality ingredients for
ABOUT IMCD the pharmaceutical industry. Megasetia has 160
OUR BUSINESS
employees and generated a revenue of approximately
GROUPS EUR 80 million in 2021. The transaction will take place
in two tranches, with 70% acquired on 21 December
STRATEGY &
BUSINESS
2021 and the remaining 30% to be acquired in 2025 by
the latest.
PERFORMANCE
On 6 December 2021, IMCD signed an agreement “In Indonesia,
GOVERNANCE
to acquire 100% of the shares in Shanghai Syntec the acquisition of
FINANCIAL Additive Limited and Shanghai Weike Additive Limited
STATEMENTS (jointly “Syntec”). Syntec provides market, technical Megasetia was an
2021
and formulation expertise in China's personal care, excellent fit with
cosmetics, and home care industries. Syntec generated has 15 employees. The transaction was closed on
a revenue of approximately EUR 14 million in 2020 31 January 2022. IMCD's life science
and has 25 employees. The transaction was closed on strategy, providing
18 January 2022. On 22 December 2021, IMCD signed an agreement
to acquire 100% of the shares in Polychem a platform for
On 22 December 2021, IMCD signed an agreement to Handelsges.m.b.H. (“POLYchem”), a leading provider further growth.”
acquire 100% of the shares of RPL Trading Pty Ltd and of chemical raw materials and additives in Austria
RPL Trading New Zealand Ltd. (jointly “RPL Trading”), a and Southeast Europe. POLYchem offers a diverse
speciality chemicals distributor focused on services and portfolio of products for the coatings, construction,
formulation expertise for customers and partners in the and composite industries. POLYchem has 65 employees
home care and water treatment markets. RPL Trading and generated revenue of EUR 25 million in 2020. The
generated revenue of approximately EUR 16 million transaction was closed on 8 February 2022.
for the fiscal year ending on 30 June 2021 and
48
Financial performance 2020, operating EBITA based on accounting principles Revenue

FOREWORD BY applied in prior years amounts to EUR 253.5 million and Compared with 2020, revenue increased by 24% to
THE CEO
General based on the new accounting principles this is EUR 3,435.3 million in 2021. The revenue growth is the
2021 All financial information in this section is presented EUR 243.2 million. result of organic growth (+16%), the first-time inclusion
HIGHLIGHTS in millions of euros. Rounding differences may occur of acquisitions (+9%) and a negative impact of foreign
2021 FINANCIAL because the underlying figures retrieved from the The impact on the net result for the year of 2021 currency exchange differences (-1%).
HIGHLIGHTS consolidated financial statements are rounded to the is EUR +1.0 million (2020: EUR -0.8 million). The net
nearest thousand. result for the year 2021 was EUR 206.2 million (2020:
GLOBAL
PRESENCE EUR 120.9) based on prior years' accounting principles
Change in accounting policy and EUR 207.2 million (2020: EUR 120.1 million) based
HISTORY Following clarifying guidance from the International on the new accounting principles.
Financial Reporting Interpretations Committee (IFRIC)
SHAREHOLDER
INFORMATION in March 2021, IMCD adopted a change in accounting Key performance indicators
policy in relation to the treatment of configuration and In 2021, IMCD realised revenue growth of 24% (+25%
ABOUT IMCD customisation costs relating to cloud computing on a constant currency basis) and gross profit growth
OUR BUSINESS
arrangements, commonly referred to as Software as a of 29% (+30% on a constant currency basis). Operating
GROUPS Service (SaaS). Under the revised accounting policy, EBITA increased by 54% from EUR 243.2 million in
costs that previously would have been capitalised and 2020 to EUR 373.6 million in 2021 (+55% on a constant
STRATEGY &
BUSINESS
subsequently amortised, are treated as operating currency basis). The operating EBITA margin improved
expenditure insofar as the group cannot demonstrate by 2.1%-point to 10.9% (2020: 8.8%).
PERFORMANCE the ability to control the relevant software. Following
this additional guidance from the IFRIC on the control The cash conversion margin was 72.6% in 2021,
GOVERNANCE
criteria relating to cloud computing arrangements, the compared with 109.4% in 2020. The weighted cash
FINANCIAL Group also decided to change its lease accounting earnings per share increased by EUR 1.61 from EUR 3.03
STATEMENTS policy to no longer recognise cloud computing in 2020 to EUR 4.64 in 2021.
2021
arrangements as a lease, and as a consequence
derecognise its right-of-use-assets and lease liabilities
relating to cloud computing arrangements. Software
subscription fees are treated as operating expenses, Key performance indicators for 2021
compared to right-of-use amortisation costs and EUR MILLION 2021 2020 1 CHANGE FX ADJ. CHANGE
interest expenses. The changes in accounting policies
have been adopted retrospectively and prior year Revenue 3,435.3 2,774.9 24% 25%
(2020) comparative figures have been restated. Gross profit 836.3 647.5 29% 30%
Gross profit in % of revenue 24.3% 23.3% 1.0%
The impact of the change in accounting policy on the Operating EBITA 373.6 243.2 54% 55%
operating EBITA of 2021 is negative EUR 9.8 million Operating EBITA in % of revenue 10.9% 8.8% 2.1%
(2020: EUR -10.3 million). Operating EBITA for 2021 Conversion margin 44.7% 37.6% 7.1%
based on accounting principles applied in prior years Cash conversion margin 72.6% 109.4% (36.8%)
amounts to EUR 383.4 million, based on the new Cash earnings per share 4.64 3.03 53%
accounting principles this is EUR 373.6 million. For 1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statements
49
.
FOREWORD BY
THE CEO
Revenue
2021 EUR MILLION GROWTH
HIGHLIGHTS
FOREIGN
2021 FINANCIAL 2021 IN % TOTAL 2020 IN % TOTAL ORGANIC ACQUISITION EXCHANGE TOTAL
HIGHLIGHTS
EMEA 1,601.6 46.6% 1,326.9 47.8% 18% 3% (0%) 21%
GLOBAL
PRESENCE Americas 1,119.6 32.6% 945.1 34.1% 15% 6% (3%) 18%
Asia-Pacific 714.1 20.8% 502.9 18.1% 9% 31% 2% 42%
HISTORY Total 3,435.3 100.0% 2,774.9 100.0% 16% 9% (1%) 24%
SHAREHOLDER
INFORMATION
The overall organic revenue development was shaped Gross profit by local market circumstances, product mix variances,
ABOUT IMCD
by the balance of local macroeconomic circumstances, Gross profit, defined as revenue less cost of materials product availability, foreign currency fluctuations and
OUR BUSINESS further strengthening of the product portfolio by adding and inbound logistics, increased by 29% from the impact of newly acquired businesses.
GROUPS new suppliers, expanding relationships with existing EUR 647.5 million in 2020 to EUR 836.3 million in 2021.
suppliers and increasing customer penetration by The increase in gross profit was the result of organic
STRATEGY &
BUSINESS adding new products and selling more products to growth (+21%), the impact of the first-time inclusion of
existing and new customers. acquisitions (+9%) and the negative impact of foreign
PERFORMANCE currency exchange rate developments (-1%).
Revenue was positively impacted by acquisitions
GOVERNANCE
completed in 2021 (Ejder Kimya, Peak International, Gross profit as a % of revenue increased by 1.0%-point
FINANCIAL Siyeza, Siliconas, Andes, Yuanhe and Maquimex) and from 23.3% in 2020 to 24.3% in 2021. All regions
STATEMENTS
acquisitions completed in 2020 (Zifroni, Develing, contributed to the improved gross profit margin in
2021
VitaQualy, Kokko-Fiber, Signet, Millikan and Banner 2021. Gross profit margins showed the usual level
Química). The total positive impact of the acquisitions of differences in margins per region, margins per
on the revenue in 2021 was 9%. product and margins per product market combination.
Differences between and within the regions are caused
Gross profit
EUR MILLION GROWTH
FOREIGN
2021 IN % REVENUE 2020 IN % REVENUE ORGANIC ACQUISITION EXCHANGE TOTAL
EMEA 411.7 25.7% 337.4 25.4% 20% 2% (0%) 22%

Americas 250.5 22.4% 204.2 21.6% 21% 5% (3%) 23%
Asia-Pacific 174.2 24.4% 105.9 21.1% 20% 43% 2% 65%
Total 836.3 24.3% 647.5 23.3% 21% 9% (1%) 29%
50
Operating EBITA Bridge operating EBITA

FOREWORD BY Operating EBITA is defined as the result from operating
THE CEO EUR MILLION 2021 2020 1 CHANGE
activities before amortisation of intangible assets and
2021 excluding non-recurring income and expenses. It is one Result from operating activities 305.5 190.4 115.1
HIGHLIGHTS of the key performance indicators IMCD uses for
monitoring the performance of its operating activities. Amortisation of intangible assets 65.5 47.5 18.0
2021 FINANCIAL
HIGHLIGHTS Non-recurring items 2.7 5.3 (2.6)
The bridge between result from operating activities and Operating EBITA 373.6 243.2 130.4
GLOBAL
PRESENCE operating EBITA is as shown in the table "Bridge 1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statements
operating EBITA".
HISTORY
Operating EBITA increased by EUR 130.4 million (+54%) The operating EBITA as a % of revenue increased by Operating EBITA by operating segment
SHAREHOLDER
INFORMATION from EUR 243.2 million in 2020 to EUR 373.6 million in 2.1%-point from 8.8% in 2020 to 10.9% in 2021. All IMCD distinguishes the following operating segments:
2021. On a constant currency basis, the increase was regions showed improved operating EBITA margins. In • EMEA: all operating companies in Europe, Turkey,
ABOUT IMCD 55%. EMEA the EBITA margin increased by 1.4%-point, from Israel, Egypt, United Arab Emirates, Saudi Arabia
OUR BUSINESS 9.9% in 2020 to 11.3% in 2021. The Americas segment and Africa
GROUPS The growth in operating EBITA of 54% was the result of showed an improvement in EBITA margin of 1.0%-point • Americas: all operating companies in the United
organic growth (35%), the impact of the first-time from 9.1% in 2020 to 10.1% in 2021. In Asia-Pacific the States of America, Canada, Brazil, Puerto Rico, Chile,
STRATEGY &
BUSINESS
inclusion of acquisitions completed in 2020 and 2021 EBITA margin increased by 4.9%-point, from 10.5% in Argentina, Uruguay, Colombia, Mexico, Peru, Costa
(20%) and the negative impact of foreign currency 2020 to 15.4% in 2021. Rica and the Dominican Republic
PERFORMANCE exchange differences (-1%). • Asia-Pacific: all operating companies in Australia,
GOVERNANCE
The conversion margin, defined as operating EBITA as New Zealand, India, Bangladesh, China, Malaysia,
a % of gross profit, increased by 7.1%-point from 37.6% Indonesia, Philippines, Thailand, Singapore, Vietnam,
FINANCIAL in 2020 to 44.7% in 2021. The conversion margin was Japan and South Korea
STATEMENTS
2021
positively impacted by, amongst other things, efficiency • Holding companies: all non-operating companies,
improvement initiatives and the first-time inclusion of including the head office in Rotterdam and the
acquired companies with higher gross margins than regional offices in Singapore and New Jersey, US
IMCD's average.
The developments in the operating segments are
described in the following sections.
Operating EBITA
EUR MILLION 2021 IN % REVENUE 2020 1 IN % REVENUE
EMEA 180.3 11.3% 131.2 9.9%

Americas 113.0 10.1% 86.0 9.1%
Asia-Pacific 109.7 15.4% 52.9 10.5%
Holding companies (29.3) - (26.9) -
Total 373.6 10.9% 243.2 8.8%
51
EMEA pharmaceutical products and food additives. It has a

FOREWORD BY In 2021, the revenue in the EMEA region increased strong and solid position in the personal care market in
THE CEO
by 21% compared with 2020. On a constant currency Turkey. Ejder Kimya’s personal care business generated
2021 basis, the increase was 21% and consists of organic a revenue of approximately EUR 6 million in 2020. The
HIGHLIGHTS revenue growth (+18%) and the impact of the first-time company is fully integrated into IMCD Turkey.
2021 FINANCIAL inclusion of acquisitions completed in 2020 and 2021
HIGHLIGHTS (+3%). The acquisition impact of 3% relates to the On 7 January 2021, IMCD acquired the pharmaceutical
acquisition of Zifroni, and Kokko-Fiber in 2020 and business of Peak International. Peak International is a
GLOBAL
PRESENCE Ejder Kimya, Peak International and Siyeza in 2021. Dutch-based distributor in the active pharmaceutical
ingredients business for Benelux, Vietnam, Germany
HISTORY Gross profit increased by 22%, from EUR 337.4 million and Israel. The Peak pharmaceutical business
in 2020 to EUR 411.7 million in 2021. The gross profit generated a revenue of approximately EUR 6 million
SHAREHOLDER
INFORMATION increase of 22% is the balance of organic gross profit in 2020.
development (+20%) and the first-time inclusion of
ABOUT IMCD acquisitions (+2%). Despite the challenging market On 8 January 2021, IMCD acquired 100% of the
OUR BUSINESS
conditions, including the impact of the COVID-19 shares in Siyeza. Siyeza, based in Johannesburg, is
GROUPS pandemic and supply chain issues, in many EMEA a distributor of pharmaceutical, veterinary, food and
countries, IMCD successfully added new suppliers personal care speciality chemical ingredients in South “In 2021, Siyeza was
STRATEGY &
and further expanded its relationships with existing Africa. With 27 employees, Siyeza generated a revenue
BUSINESS
suppliers in new territories and with additional business of approximately EUR 16 million in 2020 through their
fully integrated into
PERFORMANCE lines. Organic gross profit development further included representation of world leading producers from Europe IMCD South Africa.
the usual variations in the product and customer mix. and Asia. The company is fully integrated into IMCD
GOVERNANCE
South Africa.
Successful
FINANCIAL In 2021, IMCD successfully completed three acquisition integration of
STATEMENTS transactions in the EMEA region. In addition to these three completed transactions, on
2021
22 December 2021, IMCD signed an agreement to
acquisitions requires
On 6 January 2021, IMCD acquired 100% of the shares acquire 100% of the shares in POLYchem, a leading a focussed
in Ejder Kimya. Ejder Kimya is a Turkish chemicals provider of chemical raw materials and additives in
distributor of raw materials for personal care and
integration plan and
ongoing
EMEA
management
FX ADJ.
EUR MILLION 2021 2020 CHANGE CHANGE attention.”
Revenue 1,601.6 1,326.9 21% 21%
Gross profit 411.7 337.4 22% 22%
Operating EBITA 180.3 131.2 37% 39%
Operating EBITA as a % of revenue 11.3% 9.9% 1.4%
Conversion margin 43.8% 38.9% 4.9%
52
Austria and Southeast Europe.The transaction was As at the end of 2021, the number of full-time markets and perfectly complements IMCD's existing
FOREWORD BY closed on 8 February 2022. employees in EMEA was 1,624 compared with 1,485 pharmaceuticals, food and nutrition business in
THE CEO
as at the end of 2020. The increase in the number Colombia. Siliconas has 25 employees and generated
2021 IMCD continued to optimise its supply chain network of full-time employees is due to additional staff being a revenue of USD 9 million in 2020. IMCD acquired 80%
HIGHLIGHTS in 2021, in order to enhance customer service levels hired to fill vacancies and to strengthen the technical of the shares in Siliconas; the remaining 20% will be
2021 FINANCIAL and to reduce operating costs in the supply chain. expertise, and to the impact of acquisitions completed acquired in 2022.
HIGHLIGHTS System-to-system connectivity and process integration in 2021 (+31 full-time employees).
of the supply chain partners is crucial for achieving On 19 May 2021, IMCD acquired 100% of the
GLOBAL
PRESENCE the optimisation. Americas shares in Andes Chemical. Headquartered in the
In the Americas segment, revenue was Miami metropolitan area, Andes Chemical is active
HISTORY IMCD operates 23 Technical Centres in EMEA. These EUR 1,119.6 million in 2021 compared with in Caribbean and Central American countries,
Technical Centres are instrumental in exploring local EUR 945.1 million in 2020. In 2021, organic revenue Colombia and Peru. Andes Chemical serves the
SHAREHOLDER
INFORMATION markets and developing product applications for growth was 15% and growth as a result of coatings, adhesives, sealants, and elastomers (CASE),
IMCD's business partners. In addition, in the various acquisitions completed in 2020 (VitaQualy, Millikan construction, cosmetics, personal care, plastics,
ABOUT IMCD application laboratories market and product expertise is and Banner Química) and 2021 (Siliconas, Andes pharmaceuticals, and HI&I industries. Andes Chemical
OUR BUSINESS
exchanged between IMCD, suppliers and customers on Chemical, Maquimex) and the divestment of the Nutri has 43 employees and generated revenue of USD
GROUPS a local, regional and global level. Granulations business in the US, in total was 6%. 46 million in 2020.
The unfavourable developments of foreign currency
STRATEGY &
BUSINESS
Operating EBITA increased by 37% from EUR 131.2 in exchange rates in the Americas region, resulted in On 19 August 2021, IMCD acquired 100% of the
2020 to EUR 180.3 million in 2021. Operating EBITA as a negative currency exchange impact of 3% on the shares in Maquimex, based in México City. Maquimex
PERFORMANCE a % of revenue increased by 1.4%-point, from 9.9% in revenues in 2021. is an asset-light speciality chemicals distributor
2020 to 11.3% in 2021. providing commercial and technical expertise in the
GOVERNANCE
In 2021, IMCD successfully completed three preservatives, HI&I, energy, water treatment and other
FINANCIAL The conversion margin increased by 4.9%-points, from acquisitions in the Americas region. industrial markets. Maquimex has 44 employees and
STATEMENTS 38.9% in 2020 to 43.8% in 2021. The improvement generated a revenue of approximately USD 29 million
2021
of the conversion margin is the result of higher gross On 14 May 2021, IMCD acquired Siliconas, based in 2020.
margins, offsetting higher own costs. IMCD continues in Bogotá, Colombia. Siliconas is a speciality
to focus on revenue and gross profit growth, combined chemicals distributor and serves the personal care, In addition to these three acquisitions, in April 2021,
with strict cost control. coatings, silicones and other speciality industrial IMCD divested its Nutri Granulations manufacturing
assets and associated business, which was acquired
Americas by IMCD as part of the ET-Horn acquisition in 2018.
FX ADJ.
Located in La Mirada, CA, and with 22 employees, Nutri
EUR MILLION 2021 2020 CHANGE CHANGE Granulations manufactures food grade and USP grade
calcium carbonate granulations for the nutraceuticals,
Revenue 1,119.6 945.1 18% 22% food, and pharmaceuticals markets. Nutri Granulations
Gross profit 250.5 204.2 23% 26% realised a revenue of USD 11 million in 2020. The
Gross profit as a % of revenue 22.4% 21.6% 0.8% divestment aligns with IMCD’s strategy to focus on
Operating EBITA 113.0 86.0 31% 36% the sales, marketing and distribution of speciality
Operating EBITA as a % of revenue 10.1% 9.1% 1.0% chemicals and ingredients.
53
In 2021, the Americas segment reported a gross The number of full-time employees in the Americas
FOREWORD BY profit increase of EUR 46.3 million (+23%) to increased from 860 as at the end of 2020 to 1,005 as
THE CEO
EUR 250.5 million, compared with EUR 204.2 million at the end of 2021. This increase includes 90 additional
2021 in 2020. The increase in gross profit was the result full-time employees as a result of acquisitions in 2021
HIGHLIGHTS of organic growth (+21%), the impact of the first-time (Siliconas: 25, Andes Chemical: 43, Maquimex: 44,
2021 FINANCIAL inclusion of acquired companies (5%) and negative Nutri Granulations: -22).
HIGHLIGHTS foreign currency exchange results (-3%).
Asia-Pacific
GLOBAL
PRESENCE Gross profit margin increased by 0.8%-points, from The Asia-Pacific region delivered strong growth
21.6% in 2020 to 22.4% in 2021. The gross profit numbers in 2021. The operations in India, Australia
HISTORY margin improvements are the result of margin and New Zealand, China and Indonesia, these being the
improvement initiatives and changes in the product mix. most significant contributors in the region, all delivered
SHAREHOLDER
INFORMATION double digit growth revenue numbers and realised
In 2021, operating EBITA increased by EUR 27.0 million healthy margins.
ABOUT IMCD to EUR 113.0 million, compared to EUR 86.0 million
OUR BUSINESS
in 2020 (+ 31%). On a constant currency basis the In 2021, IMCD continued with the execution of
GROUPS operating EBITA increased by 36%. Apart from a its selective acquisition strategy, which led to five
modest impact of acquisitions completed in 2020 and acquisitions in the Asia-Pacific region, of which two
STRATEGY &
BUSINESS
2021, the main drivers of the operating EBITA increase transactions were closed in 2021.
are the organic business developments.
PERFORMANCE On 2 June 2021, IMCD acquired 100% of the shares
Operating EBITA margin increased by 1.0%-point from in Yuanhe. Yuanhe is a service solution provider
GOVERNANCE
9.1% in 2020 to 10.1% in 2021. The conversion margin focused on offering innovative speciality chemicals and
FINANCIAL increased by 3.0%-points from 42.1% in 2020 to 45.1% ingredients for the coatings, inks and textile industry.
STATEMENTS in 2021. The improvement of the conversion margin Yuanhe has 20 employees and generated a revenue of
2021
is the result of higher gross margins offsetting higher EUR 13.2 million in 2020.
own costs.
On 17 November 2021, IMCD signed an agreement to
acquire 100% of the shares in Megasetia in Indonesia.
Megasetia is a distributor of speciality ingredients
for the pharmaceutical industry. Megasetia has 160
Asia-Pacific employees and generated a revenue of approximately
FX ADJ. EUR 80 million in 2021. The transaction will take place
EUR MILLION 2021 2020 CHANGE CHANGE in two tranches, with 70% acquired on 21 December
2021 and the remaining 30% will be acquired in 2025 by
Revenue 714.1 502.9 42% 39%
the latest.
Gross profit 174.2 105.9 64% 61%
On 29 September 2021, IMCD signed an agreement
Operating EBITA 109.7 52.9 107% 101%
to acquire 100% of the shares in Aquatech in China.
Operating EBITA as a % of revenue 15.4% 10.5% 4.9%
Aquatech is active in waterborne solutions in coatings,
54
ink, and textile industries. Aquatech has 10 employees acquired businesses with gross margins higher than Holding Companies
FOREWORD BY and generated a revenue of EUR 6.7 million in 2020. IMCD's average. Operating EBITA of Holding Companies represents
THE CEO
The closing of the transaction is expected to take place costs relating to the central head office in Rotterdam
2021 early 2022. Compared with 2020, operating EBITA increased by and the regional head offices in Singapore and New
HIGHLIGHTS EUR 56.8 million (+107%) to EUR 109.7 million in 2021. Jersey, US.
2021 FINANCIAL On 6 December 2021, IMCD signed an agreement On a constant currency basis, the growth of operating
HIGHLIGHTS to acquire 100% of the shares in Syntec. Syntec EBITA was 101%. Operating costs increased by EUR 2.4 million (+9%)
provides market, technical and formulation expertise from EUR 26.9 million in 2020 to EUR 29.3 million in
GLOBAL
PRESENCE in China's personal care, cosmetics, and home Operating EBITA as a % of revenue increased by 4.9%- 2021. On a constant currency basis, the increase is
care industries. Syntec generated a revenue of points from 10.5% in 2020 to 15.4% in 2021. The 10%. The cost increase reflects the growth of IMCD
HISTORY approximately EUR 14 million in 2020 and has conversion margin further improved by 13.1%-points and the corresponding need to strengthen the support
25 employees. The transaction was closed on to 63.0% in 2021. The improvement of the conversion functions in both Rotterdam and the regional head
SHAREHOLDER
INFORMATION 18 January 2022. margin is the result of higher gross margins offsetting offices. Operating costs of the Holding Companies in
higher own costs. In addition, the acquisition of Signet percentage of consolidated revenue decreased by 0.1%-
ABOUT IMCD On 22 December 2021, IMCD signed an agreement in 2020 had a positive impact on the development of point to 0.9% in 2021.
OUR BUSINESS
to acquire 100% of the shares of RPL Trading, a the conversion margin in the Asia-Pacific segment in
GROUPS speciality chemicals distributor focused on services 2021, compared with 2020. As at the end of 2021, the number of full-time
and formulation expertise for customers and partners employees of the Holding Companies was 94 compared
STRATEGY &
BUSINESS
in the home care and water treatment markets. The number of full time employees in the Asia-Pacific with 89 at year-end 2020.
RPL Trading generated a revenue of approximately region increased by +18%, from 864 at the end of 2020
PERFORMANCE EUR 16 million for the fiscal year ending 30 June 2021 to 1,017 at the end of 2021. Disregarding the impact
and has 15 employees. The transaction was closed on of the acquisitions completed in 2021 (157 FTE), the
GOVERNANCE
31 January 2022. number of full-time employees decreased by 4. The
FINANCIAL decrease in the number of full-time employees in the
STATEMENTS In Asia-Pacific, revenue increased by 42% from Asia-Pacific reason is partly due to the outsourcing of
2021
EUR 502.9 million in 2020 to EUR 714.1 million in 2021. warehouse facilities in Indonesia.
Revenue growth in 2021, consists of organic growth of
9%, 31% growth as a result of acquisitions completed
in 2020 (Develing and Signet) and 2021 (Yuanhe), and
positive currency exchange rate developments of 2%.
In 2021, gross profit increased by 64%, of which

20% relates to organic growth and 43% is the result
of the first time inclusion of businesses acquired in Holding Companies
2020 and 2021. The gross profit margin increased by FX ADJ.
3.3%-points from 21.1% in 2020 to 24.4% in 2021. EUR MILLION 2021 2020 1 CHANGE CHANGE
The gross profit margin increase is the result of gross
margin improvement initiatives, changes in the product Operating EBITA (29.3) (26.9) (9%) (10%)
mix and the impact of the first time inclusion of Operating EBITA in % of total revenue (0.9%) (1.0%) 0.1%
55
Result for the year

FOREWORD BY
THE CEO EUR MILLION 2021 2020 1
2021 Operating EBITA 373.6 243.2

HIGHLIGHTS
Amortisation right-of-use intangible assets (0.0) (0.0)
2021 FINANCIAL Amortisation of other intangible assets (65.4) (47.5)
HIGHLIGHTS Non-recurring income and expenses (2.7) (5.3)
Result from operating activities 305.5 190.4
GLOBAL
PRESENCE Recurring net finance costs (21.7) (25.8)
Share of profit of equity-accounted investees, net of tax 0.0 (0.0)
HISTORY Result before income tax 283.8 164.6
Recurring income tax expenses (77.4) (44.4)
SHAREHOLDER
INFORMATION Non-recurring income tax expenses 0.8 -
Result for the year 207.2 120.1
ABOUT IMCD
OUR BUSINESS
GROUPS Result for the year Non-recurring income and expenses Net finance costs were EUR 21.7 million in 2021
STRATEGY &
The bridge between Operating EBITA, one of IMCD's In 2021, non-recurring income and expenses amounted compared with EUR 25.8 million in 2020. The main
BUSINESS key performance indicators used for monitoring the to EUR 2.7 million compared to EUR 5.3 million in 2020. drivers of the decrease in net finance costs of
performance of the operating activities, the result from The non-recurring expenses in 2021 relate to the costs EUR 4.1 million were lower negative foreign currency
PERFORMANCE
operating activities (based on IFRS) and result for the of realised and non-realised acquisitions, net result on exchange results (EUR 3.7 million), lower interest
GOVERNANCE year (based on IFRS) is as shown in table "Result for the sale of the Nutri Granulation business in the US, and expenses on financial liabilities (EUR 2.4 million) and
the year". costs of one-off adjustments to the organisation. higher adjustments to the fair value of contingent
FINANCIAL considerations (EUR 3.2 million) and higher interest
STATEMENTS
2021 Amortisation of intangible assets Net finance costs income (EUR -1.2 million).
Amortisation of intangible assets refers to non-cash The net finance costs consist of the following items:
expenses, relating to the amortisation of right-of-use
intangible assets, supplier relationships, distribution
Net finance costs
rights and other intangibles.
EUR MILLION 2021 2020 1
The amortisation of other intangible assets increased

Interest income on loans and receivables 1.8 0.6
from EUR 47.5 million in 2020 to EUR 65.4 million in
Interest expenses on financial liabilities (15.0) (17.4)
2021 as a result of the acquisitions completed in 2020
Changes in deferred considerations (1.2) 2.0
and 2021.
Amortisation of finance costs (0.6) (0.6)
Interest costs re employee benefits (0.4) (0.4)
Interest expenses on lease liabilities (2.5) (2.4)
Foreign currency exchange results (3.8) (7.5)
Net finance costs (21.7) (25.8)
56
Income tax expenses

FOREWORD BY
2021 Regular income tax expenses (85.0) (47.6)

HIGHLIGHTS
Adjustments for prior years (0.8) (1.5)
2021 FINANCIAL (De-)recognition of previously (un)recognised tax losses (0.2) 0.3
HIGHLIGHTS Tax credits related to amortisation of intangible assets 8.5 4.6
Changes in tax rates 0.1 (0.2)
GLOBAL
PRESENCE Non-recurring tax expenses 0.8 -
Income tax expenses (76.6) (44.4)
HISTORY 1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statements
SHAREHOLDER
INFORMATION
ABOUT IMCD
Income tax Net result before amortisation and non-
In 2021, corporate income tax expenses increased by recurring items
OUR BUSINESS EUR 32.2 million, from EUR 44.4 million in 2020 to Net result before amortisation of intangible assets,
GROUPS EUR 76.6 million in 2021. net of tax and before non-recurring items increased
STRATEGY &
by EUR 99.4 million, from EUR 168.3 million in 2020
BUSINESS Regular corporate income tax expenses increased from to EUR 267.7 million in 2021. The main drivers of
EUR 47.6 million in 2020 to EUR 85.0 million in 2021. this increase were the higher operating EBITA of
PERFORMANCE
Regular tax as a percentage of result before income tax EUR 130.4 million (+54%) and lower net finance costs
GOVERNANCE and amortisation of intangibles (EUR 349.3 million in of EUR -4.1 million (-16%), partly offset by increased
2021 and EUR 212.1 million in 2020) was 24.3% recurring tax expenses EUR 37.4 million (+79%).
FINANCIAL compared with 22.4% in 2020.
STATEMENTS
2021
The increase in income tax expenses in 2021 is mainly
due to the higher profitability of the group. The
restructuring and integration of acquired businesses
and the sale of the Nutri Granulation business in the US,
Net result before amortisation and non-recurring items
led to a non-recurring income tax expense of
EUR 0.8 million in 2021. EUR MILLION 2021 2020 1
Result for the year 207.2 120.1

Further details of the tax calculation can be found in
Note 15 of the consolidated financial statements.
Amortisation of intangible assets 65.5 47.5
Tax credits related to amortisation (8.5) (4.6)
Non-recurring result from operating activities 2.7 5.3
No recurring tax expenses 0.8 -
Net result before amortisation and non-recurring items 267.7 168.3
57
Cash earnings per share

FOREWORD BY
2021 Result for the year 207.2 120.1

HIGHLIGHTS
Amortisation of intangible assets 65.5 47.5
2021 FINANCIAL Tax credits related to amortisation of intangible assets (8.5) (4.6)
HIGHLIGHTS Result for the year before amortisation (net of tax) 264.2 163.0
Weighted average number of shares (x million) 56.9 53.7
GLOBAL
PRESENCE Cash earnings per share (weighted) 4.64 3.03
HISTORY
SHAREHOLDER Earnings per share and cash earnings The dividend proposal of IMCD is based on a
INFORMATION per share combination of maintaining room for further acquisition
Earnings per share increased by EUR 1.41 (+63%) from growth combined with assuring reasonable leverage
ABOUT IMCD
EUR 2.23 in 2020 to EUR 3.64 in 2021. Cash earnings levels, facilitating IMCD's long-term growth strategy. For
OUR BUSINESS per share, calculated as earnings per share before the financial year 2021 a dividend of EUR 1.62 per share
GROUPS amortisation of intangible assets, net of tax, divided will be proposed to the Annual General Meeting.
STRATEGY &
by the weighted average number of outstanding shares, Compared with EUR 1.02 per share for the financial year
BUSINESS increased by EUR 1.61 (+53%) from EUR 3.03 in 2020 to 2020, this means an increase of EUR 0.60 per share
EUR 4.64 in 2021. (+59%).
PERFORMANCE
GOVERNANCE Dividend Approval of the dividend proposal by the Annual General

The Company has a dividend policy with the intention Meeting will lead to a dividend distribution of
FINANCIAL Development dividend per share
to pay an annual dividend in the range of 25% to 35% EUR 92.3 million in cash (2020: EUR 58.1 million), which
STATEMENTS
2021 of the adjusted net income to be paid out in cash or in is 35% of the net result for 2021 adjusted for non-cash
shares. Adjusted net income is defined as the reported amortisation charges, net of tax (2020: 34%). Dividend per share
Dividend as a % of adjusted net
result for the year plus non-cash amortisation charges
income
(net of tax). The outcome may be adjusted for material The development of the dividend per share and the
non-recurring items. dividend as a percentage of the adjusted net income for 1.90 52%
the last five years is shown in the following graph. The 1.71
48%
1.52
In 2021, IMCD realised adjusted net income of historical dividends as a percentage of adjusted net 44%
Dividend per share

1.33
EUR 264.2 million (EUR 4.64 per share), compared with income have not been restated for the change in
Pay-out ratio
1.14 40%
EUR 163.0 million (EUR 3.03 per share) in 2020. accounting policy following the IFRIC agenda decision
0.95 36%
on cloud computing arrangements. 0.76
32%
0.57
28%
0.38
0.19 24%
0.00 20%
2017 2018 2019 2020 2021
58
Cash flow
FOREWORD BY
THE CEO
EUR MILLION 2021 2020 1
2021
HIGHLIGHTS
Operating EBITA 373.6 243.2
2021 FINANCIAL Depreciation 27.4 25.6
HIGHLIGHTS Operating EBITDA 401.0 268.8
Lease payments (22.2) (19.7)
GLOBAL
PRESENCE Share based payments 5.3 4.6
Adjusted Operating EBITDA 384.1 253.7
HISTORY
SHAREHOLDER Inventories (110.4) 5.9

INFORMATION
Trade and other receivables (86.8) 1.5
ABOUT IMCD Trade and other payables 97.0 23.0
Change operational working capital (100.3) 30.4
OUR BUSINESS
GROUPS
Capital expenditure (5.0) (6.6)
STRATEGY & Free cash flow 278.9 277.4
BUSINESS
Cash conversion margin 72.6% 109.4%
PERFORMANCE
GOVERNANCE
FINANCIAL
STATEMENTS Free cash flow is defined as operating EBITDA excluding The decrease in the cash conversion margin in 2021 The relatively high investment in net working capital in
2021 non-cash share-based payment expenses, less lease is the result of a combination of higher adjusted 2021 is the result of the strong business development
payments, plus or less changes in working capital, operating EBITDA (EUR 130.4 million), lower capital in 2021 and partly due to the relatively low level of
less capital expenditures. Free cash flow increased expenditures (EUR 1.6 million) and higher working operational net working capital as at the end of 2020.
by EUR 1.5 million from EUR 277.4 million in 2020 to capital investments (EUR 130.7 million) compared with IMCD continues to maintain stringent net working
EUR 278.9 million in 2021. The cash conversion margin 2020. The investment in operational working capital capital management.
is defined as free cash flow as a percentage of adjusted in 2021, which excludes additional working capital as
operating EBITDA; adjusted operating EBITDA is the a result of acquisitions completed in 2021, amounts IMCD's asset-light business model resulted in relatively
operating EBITDA adjusted for non-cash share-based to EUR 100.3 million, compared with a divestment of low capital expenditure considering the size of the
payments and lease premiums. The cash conversion EUR 30.4 million in 2020. The consolidated change in overall operations and amounted to EUR 5.0 million
margin decreased by 36.8%-points from 109.4% in operational working capital is the accumulated total in 2021, compared with EUR 6.6 million in 2020.
2020 to 72.6% in 2021. of the monthly operational working capital changes in Capital expenditure was mainly related to investments
local currencies translated into EUR, using the monthly in the ICT infrastructure, office furniture and technical,
average exchange rates. warehouse and office equipment.
59
Balance sheet
FOREWORD BY
THE CEO
31 DECEMBER 31 DECEMBER
2021 EUR MILLION 2021 2020 1
HIGHLIGHTS
Property, plant and equipment 97.9 95.0

2021 FINANCIAL
HIGHLIGHTS Intangible assets 1,808.1 1,546.9
Financial assets 40.9 45.5
GLOBAL
Non-current assets 1,946.9 1,687.4
PRESENCE
HISTORY Net working capital 612.5 443.7
SHAREHOLDER Provisions and deferred tax liabilities (158.0) (151.7)

INFORMATION
Total capital employed 2,401.4 1,979.4

ABOUT IMCD
OUR BUSINESS Equity 1,461.4 1,252.4

GROUPS
Net debt 940.0 727.0
STRATEGY &
BUSINESS
Total financing 2,401.4 1,979.4
PERFORMANCE 1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 of the Financial statements
GOVERNANCE
FINANCIAL Non-current assets

STATEMENTS
The total non-current assets, consisting of property, Working capital development
2021
plan and equipment, intangible assets and financial EUR MILLION 2021 2020 1
assets increased by EUR 259.5 million in 2021. The
main drivers of this increase are the new supplier Inventories 526 371
relationships and other intangible assets (EUR 60.3 Inventories in days of revenue 2 54 46
milion) and additional goodwill and other intangible Trade and other receivables 619 469
assets acquired as a result of acquisitions completed Trade and other receivables in days of revenue 2 63 58
in 2021 (EUR 207.4 million). Trade payables (403) (292)
Trade payables in days of revenue 2 41 36
Working capital Other payables (130) (105)
Net working capital is defined as inventories, trade Other payables in days of revenue 2 13 13
and other receivables less trade payables and
Total working capital 612 444
other payables. Net working capital increased by
Total working capital in days of revenue 2 63 55
EUR 168.8 million (38%) from EUR 443.7 million
as at the end of 2020 to EUR 612.5 million as
2 Revenue normalised for full year impact acquisitions
60
of 31 December 2021. The increase in net working The EUR 300 million senior unsecured fixed rates The interest cover, calculated based on the definitions
FOREWORD BY capital of EUR 168.8 million is the result of the high level note, issued by IMCD N.V. on 26 March 2018, had used in the Schuldscheindarlehen document, is 29.1
THE CEO
of business activities in 2021, and impacts of external a closing price of EUR 104.40 at 31 December 2021 times EBITDA (31 December 2020: 16.9), which is well
2021 factors, including COVID-19 and supply chain issues, (31 December 2020: EUR 104.17). The bond is listed above the required minimum of 4.0 times EBITDA.
HIGHLIGHTS leading to higher working capital levels on the Luxembourg Euro MTF market and matures on
2021 FINANCIAL (EUR 104 million) as well as the impact of exchange rate 26 March 2025. Equity
HIGHLIGHTS differences on year-end balance sheet positions Total equity increased by EUR 208.9 million from
(EUR 15.1 million) and the impact of acquisitions As at the end of 2021, net debt was EUR 940.0 million EUR 1,252.4 million as at 31 December 2020 to
GLOBAL
PRESENCE completed in 2021 (EUR 49.8 million). compared with EUR 727.0 million as at 31 December EUR 1,461.4 million as at 31 December 2021. The
2020. The increase in net debt is predominantly increase in total equity is the balance of the addition
HISTORY In particular the relatively strong sales towards the the balance of positive and healthy cash flows of the net profit for the year of EUR 207.2 million,
end of 2021 contributed to the higher trade and other from operating activities, more than offset by cash other comprehensive income of EUR 56.6 million,
SHAREHOLDER
INFORMATION receivable days of 63 compared to the end of 2020 outflows as a result of acquisition-related payments dividend payments in cash of EUR 58.1 million,
(58 days). In addition, the healthy order book for of EUR 180.0 million and a dividend payment of transactions related to the group's share-based
ABOUT IMCD the beginning of 2022 had an upward effect on the EUR 58.1 million in 2021. Furthermore, net debt payment programme of EUR 1.7 million and movements
OUR BUSINESS
inventory days (+8) and on the trade payables days includes EUR 308.9 million deferred and contingent in the non-controlling interest of EUR 1.6 million. The
GROUPS (+5) compared to 31 December 2020. considerations related to acquisitions (31 December increase in equity resulted in a solid ratio at year-end
2020: EUR 193.6 million). with total equity covering 44.7% of the balance sheet
STRATEGY &
BUSINESS
Monitoring working capital positions is a permanent total (31 December 2020: 46.4%).
focus of management and IMCD has various As at the end of December 2021, the leverage ratio (net
PERFORMANCE processes, procedures and tools in place to optimise debt/operating EBITDA ratio including full-year impact In 2021, IMCD did not acquire any additional own
working capital. of acquisitions) was 2.3 times EBITDA (31 December shares. During 2020, IMCD transferred 45,717 treasury
GOVERNANCE
2020: 2.3). The actual leverage as at 31 December shares to settle its obligations under the long-term
FINANCIAL Financing 2021, calculated on the basis of the definitions used (share based payment) incentive plan.
STATEMENTS IMCD aims to maintain a capital structure that offers in the IMCD loan documentats, was 1.5 times EBITDA
2021
flexibility and enables IMCD to cover its potential (31 December 2020: 1.7).
financial requirements and to execute its organic growth
and acquisition strategy. The corporate treasury team Two leverage covenants apply to the Group:
at the head office in Rotterdam manages liquidity and • For the 'Schuldscheindarlehen' of EUR 40 million, a
interest risks. maximum leverage of 3.5 times EBITDA applies (with
a spike period maximum of 4.0), tested annually.
During 2021, IMCD finalised the purchase price • For the revolving credit facilities of EUR 500 million, a
allocation process related to the 70% stake in Signet maximum leverage of 3.75 times EBITDA is applicable
and the related deferred consideration. The calculations (with a spike period maximum of 4.25), tested semi-
resulted in an additional deferred consideration, part of annually.
IMCD's net debt position, of EUR 40.8 million.
As at 31 December 2021, the actual leverage of
In November 2021, IMCD repaid EUR 60 million 1.5 times EBITDA is well below the applicable
and USD 25 million for its long-term promissory maximum leverages.
note (Schuldscheindarlehen).
61
INSIGHT
Diversity in practice
It is a fact that IMCD operates in the world of specialty
chemicals and ingredients, industry sectors which employ far
more men than women. If you doubt this all you have to do is
take a look at any chemical factory and count the women, the
visual impression you get speaks for itself. That’s why it is so
remarkable that IMCD has such a balanced workforce evenly
distributed between men (49%) and women (51%). Though we
stand out in the industry in this regard, there are still goals for us
to pursue.
In 2020 we analysed the gender distribution across regions, countries, levels,

and functions and one of our conclusions was that the gender distribution in
our country management teams was fine in functions such as Marketing, Legal,
HR and HSEQ but below our expectations in commercial roles with P&L
responsibility. That’s why we decided to implement a diversity plan with special
focus on developing a deeper pipeline of female talent and we started a pilot
career development programme for women in IMCD who aspire to fast track
their careers by deepening certain personal skills, their business acumen and
corporate visibility.
Career development
Part of the programme involved a senior management panel where participants
could discuss career development topics with senior business leaders. One of
the panelists was Irene Cantos, Business Group Director for Beauty & Personal
Care. She said, “I encourage women to set ambitious career goals for
themselves, dream big, focus on the goals to achieve and make a plan that you
will get there”. The 2021 IMCD Women in Leadership programme has
19 participants across the globe and will contribute to strengthening IMCD’s
position as an attractive employer for men and women alike.
“In IMCD women can dream big and set ambitious career goals.” In 2021 we also started to track the new appointments per gender in our senior
regional & country management teams. A group of 339 individuals dispersed
over teams in APAC, EMEA and the Americas. In this senior group we made
Irene Cantos 70 new appointments in 2021 of which 36 (50%) were women.
Business Group Director IMCD Beauty & Personal Care
62
Non-financial performance
FOREWORD BY
THE CEO Financial Resilience
From page 41 and onwards in this Annual Report, IMCD
2021 has set out its group-wide sustainability approach,
HIGHLIGHTS which is built on five focus areas where IMCD is 2021 has been another year of unprecedented global
2021 FINANCIAL striving to improve its sustainability practices through volatility, in terms of economic conditions. Apart from
HIGHLIGHTS its business activities. the impact of the Covid restrictions, IMCD had to
deal with challenges throughout the supply chain.
GLOBAL
PRESENCE Nevertheless, the strict financial discipline, a core
IAL RESILIE value within IMCD, illustrated by its closely monitoring
NC
HISTORY of key financial KPI's, and where needed, acting
NC
FIN
E
swiftly to implement tailored measures, IMCD achieved
SHAREHOLDER
INFORMATION strong operating results and growth was delivered in
VIRONMENT PEOPLE terms of revenue, gross profit, operating EBITA and
EN
ABOUT IMCD cash generation. More detailed information on IMCD's
OUR BUSINESS
financial performance is available in the Financial
GROUPS Performance section (page 49 of this Annual Report).
“IMCD's major
STRATEGY &
IMCD believes that the combination of its net
BUSINESS
debt/operating EBITDA ratio, interest cover, equity
assets, that really
D
PRO UCT VERNANCE
GO
PERFORMANCE attributable to shareholders and increased free cash stand out are our
flow, reflects its sound financial position and makes
GOVERNANCE
the group resilient to potential adverse conditions.
entrepreneurial spirit
FINANCIAL IMCD’s overall financing structure provides sufficient and cultural diversity.
STATEMENTS flexibility with appropriate leverage levels to support
2021
future business development.
They give employees
In the following, we report on the key actions taken in
the confidence &
these five areas in 2021, in accordance with the EU Non- autonomy to make
Financial Reporting Directive (NFRD). Further details People
as well as figures relating to our environmental, social
important decisions
and goverance impact will be included in IMCD's 2021
IMCD is proud of its people and culture and considers
and solve problems.”
Sustainability Report to be published mid-2022.
them to be its most valuable asset by far. Here's why.
We have no factories, no products of our own, meaning Nico Kaufmann
the value of the company lies in our brand and, more Country Managing Director Brazil
importantly, in the commercial partnerships we have
established with suppliers and customers all over the
globe, in the quality of the people who manage those
relationships, and in the people who lead and support
63
them in various functions. In a very technical world of Recruitment and retention

FOREWORD BY speciality chemicals and ingredients, IMCD operates as As in previous years, we have continued growing the
THE CEO
a professional services business where highly qualified company. Not only in revenue, margin and EBITA but
2021 key people working together in a flat organisational also in number of employees. The FTE count went up
HIGHLIGHTS structure are making a real difference. IMCD not only from 3,298 at the beginning of 2021 to 3,740 FTE's at
2021 FINANCIAL needs to attract and hire very capable individuals, but the end of December.
HIGHLIGHTS also train and develop them to get the very best out
of everybody and to retain the expertise. Our culture is We had a record of 1,053 new FTE’s joining IMCD, either
GLOBAL
PRESENCE the glue that keeps the talent together, it cuts across through acquisitions, organic business growth or to
geographies and helps to integrate newly acquired replace leavers. The latter group comprised 588 FTE of
HISTORY businesses quickly. which 62 through divestitures of our Nutri Granulations
business in the US and the outsourcing of warehouse
SHAREHOLDER
INFORMATION Our talent base activities in Indonesia, therefore 526 regular leavers.
IMCD sees itself as a professional services company On top of this we had 15 employees who retired, the
ABOUT IMCD active in the sales and distribution of speciality vast majority (9) in our APAC region. For company-wide
OUR BUSINESS
chemicals and ingredients and the quality of our attrition numbers we have used the regular 526 leavers.
GROUPS offerings to customers and suppliers is to a large extent
driven by the knowledge, capabilities, and specialities of The joiners' percentage was 30% and we had an “My generation
STRATEGY &
our employees. People who join us typically bring their attrition rate of 15% overall, as in worldwide and
BUSINESS
speciality- a wealth of knowledge of speciality chemicals all functions, calculated over the average number of
believes strongly in
PERFORMANCE and ingredients. FTE's in year 2021. This 15% compares to last years' leaving the world
reported attrition rate was 13% and in 2019 14%. The
GOVERNANCE
We are a commercially driven business where 2,367 highest attrition rate was in our US region where it
a better place by
FINANCIAL (63%) of our FTE’s work in inside and/or outside sales was 18.5% with lower rates in EMEA (13.8%) and APAC being sustainable,
STATEMENTS functions supporting our customers and suppliers. (13.2%). Compared to last year, attrition rates went up
2021
Education levels are understandably high to very high in all regions.
inclusive, and
which is substantiated by the fact that 70% of our thoughtful. IMCD
people either have a bachelors or a masters degree. The 2021 attrition rate has been influenced to a certain
978 individuals have such Masters degree and 1,642 extent by a delayed Covid-19 effect where employees
plays an important
a Bachelors. Furthermore, 36% of our people hold a reassessed priorities in life after a long period of partly role in this.”
technical or technological degree. working from home and a pull from very competitive
labour markets in the Americas.
Carla Sousa
Principal Manager IMCD Canada
64
Diversity Our Executive Committee consists of 6 members who

FOREWORD BY In IMCD our commitment to all employees is that are all male. Therefore, our IMCD Diversity strategy
THE CEO
we provide equal opportunities to all, irrespective aims on the one hand to maintain the positive near
2021 of gender, race, disability, ethnicity, nationality, age, equal gender balance for the company as a whole
HIGHLIGHTS religion, and LBGTQ. This principle is applicable to and on the other hand to accelerate the development
2021 FINANCIAL recruitment, job assignments, promotions, rewards and of women in commercial and/or digital positions
HIGHLIGHTS benefits. Discrimination on any of the above grounds especially in the sub top of the company - the
is not tolerated and we have a widely communicated management teams of all the countries and regions
GLOBAL
PRESENCE anonymous internal alert/ethical hotline procedure in we operate in. Last year we started tracking female
place to escalate and investigate grievances. As a global appointments in these senior teams and in a total pool
HISTORY company, we are not allowed to track & monitor all of 339 positions we had 70 openings for which we
employee categories such as disability or LBGTQ, since found and appointed 35 women (50%). These local
SHAREHOLDER
INFORMATION local laws not always permit it. We therefore focus on country management teams are key talent feeders. We
two topics we are allowed to monitor: (1) gender and are pleased with the 50/50 balance of appointments
ABOUT IMCD (2) nationality. in these key roles however there are still opportunities
OUR BUSINESS
to improve.
GROUPS To start with the latter; our Supervisory Board has
5 members who bring four nationalities, and our After conducting an internal Diversity analysis, which “IMCD offers a
STRATEGY &
Executive Committee consists of 6 senior leaders with was discussed at Board level, we concluded that women
BUSINESS
also 4 distinct nationalities. Overall, our employee base were well represented in our country management
progressive work
PERFORMANCE consists of more than 50 different nationalities. teams in roles such as Marketing, HR, Legal and culture in which
Finance but less so in commercial and digital leadership
GOVERNANCE
As in previous years, the gender distribution of our roles. That is why we started a pilot with the US-
employees have the
FINANCIAL workforce is very balanced with 51,4% women (1,921 based IMPACT Group, an IMCD Women in Leadership freedom to take
STATEMENTS total) and 48,6% men (1,819). This is a very different programme to accelerate the training and development
2021
gender distribution, with far more women, than the of women in the Americas, Europe, and Asia and to
decisions at work,
Chemical and Ingredient industry average and is a better prepare them for future leadership roles. We allowing flexibility
testament to IMCD’s attractiveness to women. We also monitor the number of appointments of women in
are a professional services company, have most of commercial and digital leadership roles, as a subgroup
to introduce new
our contemporary offices in large cities, have an of the above mentioned senior teams in regions and initiatives, which go
entrepreneurial and values-driven business culture countries. A total of 39 roles from the 70 open positions
which makes IMCD an attractive employer for a highly in 2021 were classified as commercial with profit and
a long way in
educated mainly urban population. loss (P&L) responsibility and we appointed in this group shaping the growth of
15 (38%) women versus 24 (62%) men.
The Supervisory Board composition is 40% female and
the company.”
60% male, so the F:M ratio is 40%. As a result, we more The age profile of IMCD also underlines the fact that
than comply with the Dutch Corporate Governance we are an equal opportunities company for all ages. We Sudeep Sharma
code in this respect which calls for at least 33% women had 7 employees under the age of 20, mainly working HR Head IMCD India
in Supervisory Boards. students, interns, and other young starters. At the other
part of the spectrum, we also employed 173 colleagues
65
older than 60 years (4.6% of the total workforce at We have zero tolerance for forced labour and/or child We engaged in more social dialogue with employees;
FOREWORD BY year-end 2021). The age group of 20- to 30-year-old labour. They have no place in IMCD. Also, we respect in 2021 we conducted employee opinion surveys in
THE CEO
grew to 595 (15.9%) and the vast majority of 2,272 the right of our employees to organise themselves and a number of countries including Austria, Germany,
2021 (60,7%) fell in the group 30 to 50 years. From 50 to 60 to join trade unions and representative bodies such Sweden, Brazil, UK, and we recently issued a worldwide
HIGHLIGHTS years the number of employees was 694 (18.5%). The as works councils and Health Safety & Environment Sales Excellence survey to poll our inside and outside
2021 FINANCIAL overall IMCD age profile has become more youthful over Committees. All employees have the right of collective sales staff on topics such as sales process, training &
HIGHLIGHTS the last few years, especially due to developments in bargaining. We measure yearly how many workers recruitment. We also decided to conduct a standardized
two groups. Firstly, the under-30 group has grown from are subject to a collective labour agreement (CLA) Global Employee Opinion survey to enhance the direct
GLOBAL
PRESENCE 14 % in 2019 to nearly 16% in 2021 and secondly the and at year-end 2021 we had 1,236 employees in social dialogue with our employees which will be
50+ age group has shrunk from 25% in 2019 to 23% at this category. We also measure formal employee launched later in the year.
HISTORY year end 2021. representation on an annual basis. We have 1,575
employees (42% of workforce) worldwide who are Type of employment & employment security
SHAREHOLDER
INFORMATION Training and development represented in formal joint management and employee The overwhelming majority of IMCD’s employment
Our 65 laboratories have organised hundreds of Health & Safety Committees and 943 employees (25% contracts are permanent: 3,678 or 98% of our year-end
ABOUT IMCD technical trainings, product seminars and formulation of workforce) covered by formally elected employee workforce. That means that a mere 62 (2%) of our
OUR BUSINESS
meetings in order to deploy the technical and representatives such as works councils, most of them in employees are on a temporary contract. We believe
GROUPS formulation expertise for the benefit of our customers our EMEA region. that offering regular, indefinite contracts or job offers
or to train our own staff. Such Business Group specific provides employees with more security, decent living
STRATEGY &
BUSINESS
training is one of the core elements of our business. We are ENTREPRENEURIAL. and is what employees value the most. It is also a
We think like owners by
creating value, taking
differentiator in competitive labour markets. A similar
PERFORMANCE We also intensified non-technical online training such as initiative, generating new pattern we see with full time versus part time staff.
We have appropriate and novel business
Antitrust, Fraud, Cybersecurity, Compliance, Salesforce, FREEDOM TO ACT, opportunities, and being We employed 3,604 or 96% full timers and 136 or 4%
GOVERNANCE selfmotivated to drive the
and Digital Transformation; 2,803 employees registered with a ‘can do’ attitude.
business forward.
part time employees. The latter group has requested
FINANCIAL and completed more than 65,000 courses and flexibility in their work patterns to fit their work-life
STATEMENTS spend 7,672 hours in our Global Cornerstone learning balance or family needs.
2021
management system. The average user spent nearly 3
hours on completing tests and training sessions. Responsible restructuring
In 2021 we did neither conduct any large-scale
Labour rights & social dialogue We work redundancy nor implement reductions in workforce/
We expect the highest transparently as
Our starting point is how we approach human rights level of INTEGRITY TRUE PARTNERS restructuring/job cuts of more than 5% of our
of OUR PRINCIPALS
in business. Our management approach is to act in AND TRUST
AND CUSTOMERS.
employee base, on the contrary our employee base
from ourselves
line with OECD guidelines for Multinational Enterprises and each other. grew from 3,298 to 3,740 FTE's in 2021 to facilitate the
and the three UN Guiding Principles on Business business growth.
and Human Rights; Protect, Respect, Remedy. Our
IMCD values are also clear guidelines for behaviour of We are
employees, and we hold them accountable. guided by
STRICT
FINANCIAL
DISCIPLINE.
66
Living wages
FOREWORD BY IMCD commitments itself to ensure that all workers are
THE CEO
paid a “living wage” (i.e., the minimum remuneration
2021 to support basic needs) in accordance with applicable
HIGHLIGHTS local laws. A living wage is also strongly supported
2021 FINANCIAL by the above mentioned 98% of employees having
HIGHLIGHTS a permanent contract. The average salary & wages
we paid in 2021 was 65,560 Euro per employee, up
GLOBAL
PRESENCE 3.5% year over year. See Note 10 to the financial
statements. Furthermore, in the absence of applicable
HISTORY laws or collectively bargained labour agreements,
working hours do not exceed 60 hours per week,
SHAREHOLDER
INFORMATION including overtime, and a minimum of one day of rest
per week is provided in all our countries.
ABOUT IMCD
OUR BUSINESS
Board discussions
GROUPS People, social & labour matters are discussed with the
IMCD Management Board on a regular basis on multiple
STRATEGY &
BUSINESS
occasions in the year, both on an individual level and
business wide topics.
PERFORMANCE
GOVERNANCE
FINANCIAL
STATEMENTS
2021
67
FOREWORD BY
Our people
THE CEO
FTE Turnover1
2021
HIGHLIGHTS Total Growth In Out
2021 FINANCIAL 3,740 +442 FTE 298 Acquisition

1,053 526
HIGHLIGHTS 144 Organic
28% 15%
+13%
GLOBAL
PRESENCE
8% Acquisition
5% Organic
HISTORY
SHAREHOLDER
INFORMATION
Numbers of FTE per region EMEA
ABOUT IMCD Employees
OUR BUSINESS
GROUPS 45% 1,698
STRATEGY &
BUSINESS
PERFORMANCE
GOVERNANCE
FINANCIAL
STATEMENTS
2021
AMERICAS ASIA
Employees Employees
27% 1,009 28% 1,033
1 FTE’s leaving due to one-off divestitures and work hoursadjustments excluded

68
FOREWORD BY
Our people
THE CEO
Gender diversity Gender diversity Women in senior Women appointed in Women in Women
2021 country/region
Women Men senior region/country P&L roles appointed
HIGHLIGHTS
teams management roles in P&L roles
2021 FINANCIAL
HIGHLIGHTS 1,921 1,819 39% 50% 27% 38%
GLOBAL 51% 49%
PRESENCE 131 35 53 15
Women Women Women Women
HISTORY
208 35 147 24
SHAREHOLDER Men Men Men Men
INFORMATION
ABOUT IMCD
Different Type of function Social dialogue Headcount by age
OUR BUSINESS nationalities Commercial/ <30
GROUPS
STRATEGY &
Total Technical Employees
subject to
Employees
represented
Employees
represented by 602 | 16%
BUSINESS collective labour by health & workcouncils
agreement safety cie
PERFORMANCE
34% 42% 25%
GOVERNANCE
30-50
FINANCIAL >50 63% 1,236
Employees
1,575
Employees
943
Employees 2,272 | 61%
STATEMENTS
2021
Educational level Training >50

Master or higher Bachelor or equivalent Other Training hours delivered
803 | 23%
7,672
978 1,642 1,120 Number of people trained
26% 44% 30% 2,803
69
Quality management and accreditation

FOREWORD BY IMCD aims to be a valued partner to all its suppliers
THE CEO Product
and customers. The company provides ongoing training
2021 to improve competencies. This we do via learning
HIGHLIGHTS seminars and our e-learning program Cornerstone. In
IMCD takes full responsibility for its operations and
2021 FINANCIAL the impact it has on society and the environment. We 2021 the company also launched a Global Women in
HIGHLIGHTS focus on Product Sustainability, Chemical Management, Leadership program designed to spur individual growth
Product Compliance and Sustainability-related areas, and ensure the company keeps delivering the highest
GLOBAL
PRESENCE such as reducing our carbon footprint. As a distributor possible quality service.
of a broad range of speciality chemicals and
HISTORY ingredients, we strive to offer a well-balanced product By updating and further rolling out ISO 9001 and
portfolio to our customers, with which they are ensured ISO 14001 the company puts emphasis on top
SHAREHOLDER
INFORMATION safe and responsible products. In its laboratories management engagement and improved alignment
and/or technical centres IMCD does not carry out between management systems and the strategic
ABOUT IMCD research or tests involving animals. direction of the organisation. These are an integral part
OUR BUSINESS
of our business processes and fulfil the expectations of
GROUPS IMCD’s scientists and technical teams analyse our suppliers and customers.
market trends and new technologies, share their
STRATEGY &
BUSINESS
technical expertise and product formulation, process, IMCD's operating companies implement quality “Via Sustainable
and application knowledge to support sustainable management systems on the bases of these ISO
PERFORMANCE innovation by both its suppliers and customers. standards on a local level. In addition, operating
Solutions IMCD
GOVERNANCE
Via Sustainable Solutions IMCD drives an increased companies also implement other quality management drives an increased
availability of greener and healthier products that systems if relevant to the specific products they
FINANCIAL benefit the environment and society. distribute, such as ISO 22000 / HACCP / BRC (food
availability of greener
STATEMENTS
2021
safety management), OHSAS 18001 (occupational and healthier
IMCD has a global regulatory, quality and sustainability health and safety), GMP+ (good manufacturing
organisation in place that deals with all the guidelines practices for food, pharmaceutical and cosmetic
products that benefit
that the law requires the company to follow. This products), GDP (good distribution practices for the environment
involves rules set forth by the occupational health pharmaceutical products) and ECO (for organic
and safety to ensure a safe work environment for our products). In 2019 IMCD formulated the strategy to
and society.”
employees, equal employment opportunities to ensure achieve group-wide accreditation for ISO 9001 and
discrimination free hiring practices and focus on our 14001 via a matrix-certification. During 2021 IMCD’s
entire supply chain to ensure product safety. operating companies were further aligned towards
the achievement of the group-wide certification which
is ongoing.
70
FOREWORD BY
THE CEO Environment
2021
HIGHLIGHTS
Chemical distribution is a highly complex and multi-
2021 FINANCIAL faceted business comprising procurement, storage,
HIGHLIGHTS value-added services, transportation and designing
tailored logistics solutions. Being a responsible partner
GLOBAL
PRESENCE for all its stakeholders, health, safety, the environment,
and quality are of key importance to IMCD and
HISTORY essential for safe and reliable business operations.
IMCD endeavours to comply with chemical- and market-
SHAREHOLDER
INFORMATION specific regulatory requirements (for example, relating
to pharmaceutical, food and personal care products) as
ABOUT IMCD well as with our standards and those of our business
OUR BUSINESS
partners. Besides this, we ensure compliance with
GROUPS health, safety, and environmental legal requirements
for our operations and sales organisation. In 2021 we
STRATEGY &
BUSINESS
have expanded and implemented an expert team on
import and export control to ensure that all import
PERFORMANCE and export transactions are in conformance with the
laws and regulations of the countries involved. This
GOVERNANCE
includes marketing, brokering of sensitive items that
FINANCIAL are considered “dual-use” because they can be used for
STATEMENTS both civil and military purposes.
2021
Our supply chain strategy and organisation ensure Greenhouse gas emissions In 2021, IMCD continued to improve the operational and
that each step in the supply chain can be executed IMCD supports the reduction of product life-cycle organisational measures introduced in 2019 relating to
in the most efficient and cost-effective way. Via greenhouse gas emissions and continuously explores the reporting on greenhouse gas emissions, among
our scalable third-party logistics infrastructure, we new ways to further reduce the carbon footprint other things. These efforts have enabled IMCD to
stay up to date with industry best practices, the together with its suppliers, customers, and supply include more of its group companies in the scope of
latest developments in technology, and logistics. The chain partners. IMCD uses the Green Tender method reporting for its 2021 Sustainability Report. Ongoing
model accommodates advanced reporting, inventory developed by Connekt to carefully select logistic efforts will be extended to drive towards global coverage
management, and provides visibility into monitoring the partners with a focus on sustainable activities and of our supply chain and operations.
entire process. capabilities. In addition to this we introduced the ESG
standards for IMCD Business Partners. Over 75% of
our partners have signed for their commitment to
this initiative.
71
Energy, water and waste management The company has started to calculate the carbon safe chemicals management, safeguard people and
FOREWORD BY IMCD is committed to meeting relevant legal footprint of its shipments. This information can be the environment by continuously improving our
THE CEO
requirements, as well as requirements agreed with reflected on transport company, supplier, customer or environmental, health and safety performance, facility
2021 customers and suppliers, relating to the environment territory level with the goal to seek for optimization and security, and the safety of our products by providing
HIGHLIGHTS and waste treatment and disposal. A waste disposal reduction of the company’s scope 3 emissions. hazard and risk information that can be accessed and
2021 FINANCIAL policy is in place globally, to promote the recycling of applied in our operations and products.
HIGHLIGHTS waste materials. This is aimed at ensuring that all waste External sustainability initiatives
generated by the operations are properly identified and Throughout 2021 IMCD was a committed participant The commitment to these guidelines and policies is
GLOBAL
PRESENCE sent for licensed disposal, in accordance with relevant in various external initiatives, networks, and platforms assessed by independent third-party experts applying
legal requirements. The policy applies to supply chain with a focus on sustainable logistics. Examples the relevant regional assessment systems. Independent
HISTORY related materials and company office related waste. hereof include EcoVadis' "Together for Sustainability" experts also review and document the relevant
(TfS) initiative. We aim to develop and implement operating company’s environmental performance and
SHAREHOLDER
INFORMATION In its offices and at other locations, IMCD supports a global audit programme to assess and improve safe handling of chemicals.
the use of green energy and encourages the recycling sustainability practices within the supply chains of the
ABOUT IMCD of used material (including office materials) and chemical industry. Third-party screening
OUR BUSINESS
minimising paper consumption. IMCD’s laboratories The selection of a suitable third-party logistics
GROUPS have modern liquid and gaseous (fume) waste Several group companies were able to maintain or service (3PL) provider is an important factor that
management in place. Local offices furthermore improve on their EcoVadis scores. IMCD Germany's determines the logistics performance. IMCD applies
STRATEGY &
BUSINESS
develop and maintain incentive programmes to excellent performance result again in a platinum a multi-criteria decision making (MCDM) process
promote more efficient ways of travelling. recognition and puts it among the top-1% performers to ensure the 3PL provider of choice complies
PERFORMANCE evaluated by EcoVadis. IMCD group improved from a with IMCD’s health, safety, environment and quality
Minimising waste by aligning and optimising silver to gold recognition and so did IMCD Benelux. standards. In 2021 IMCD also introduced the ESG
GOVERNANCE
infrastructure and logistic processes is also part EcoVadis will be rolled out to some other significant standards for IMCD business partners. The company
FINANCIAL of IMCD's integration process for new acquisitions. IMCD companies such as India, South Africa and Brazil. uses Environmental, Social and Governance factors
STATEMENTS IMCD actively looks to create synergies across these to evaluate on how far advanced our LSP’s are
2021
important topics. IMCD remains a proud member of the Roundtable of with sustainability. This in addition to the request
Sustainable Palm Oil (RSPO), a non-profit organisation of quality management certifications (ISO 9001, ISO
IMCD aims to offer to its stakeholders transparency that unites stakeholders from seven sectors of the 14001, Responsible Care, among others). Sustainability
on the environmental impact of its operations. The palm oil industry, aiming to develop and implement has been embedded in our selection criteria and
quality, health and sustainability team continuously global standards for sustainable palm oil. In 2021, the the development will be closely monitored together
works to improve and harmonise existing systems for number of IMCD entities that joined in IMCD's group with our standard operating procedures. Via our non-
the monitoring of energy and water use of IMCD's membership remained 32. conformance reporting process we conducts quarterly
offices worldwide. business reviews to ensure continuous improvement.
Responsible Care and Responsible Distribution
Supply chain optimisation Most of IMCD’s operating companies take part
IMCD's centralised supply chain team and local supply through local associations in the ‘Responsible Care’
chain experts are committed to ensuring the most or 'Responsible Distribution' programmes of the
efficient routing, the optimal volume mileage ratio, and International Council of Chemical Associations (ICCA).
the implementation of sustainable transport modes, IMCD works with customers, carriers, suppliers, and
wherever possible. contractors to foster a culture that proactively supports
72
FOREWORD BY
THE CEO Governance
2021
HIGHLIGHTS
Integrity is fundamental to the way that IMCD does
2021 FINANCIAL business. IMCD has strong values and clear policies
HIGHLIGHTS and standards in place to ensure its employees always
act in an ethical and responsible way. We expect our
GLOBAL
PRESENCE business partners to do the same and support them
in adhering to and implementing similar standards in
HISTORY their organisation.
SHAREHOLDER
INFORMATION IMCD’s key commitment and core principle is to provide
an environment that promotes trust, confidence and
ABOUT IMCD respect of its employees, suppliers, customers, local
OUR BUSINESS
and international stakeholders, media, governmental
GROUPS authorities and industry and society organisations. On
the basis of this ethos, IMCD has created a culture
STRATEGY &
BUSINESS
where integrity and transparency are essential to the
way IMCD does business and where unethical behaviour
PERFORMANCE will not be tolerated.
GOVERNANCE
The IMCD Code of Conduct, available on the company’s
FINANCIAL website, describes IMCD’s business principles, core
STATEMENTS values and ethics, to which all IMCD companies
2021
worldwide are equally and fully committed. The Code
of Conduct and IMCD Business Principles underwent platform, a library of more than 1,500 compliance- scheduled for 2022, to reach full coverage across all
a full review and update in 2020 and 2021 and have related courses in approximately 60 local languages, operations and employees.
since been made available in several languages. Specific available to all employees worldwide (supporting local
internal policies are in place on the subjects of anti- compliance efforts and ensuring a better understanding Internal alert procedure & 24-hour
corruption and anti-bribery, offering our employees of the material). reporting lines
clear examples of behaviour that should be avoided. IMCD has implemented an Internal Alert Procedure,
In 2021 IMCD continued the roll-out of its standardised available on its website, that enables IMCD employees
A continuous compliance training program is in place IMCD group compliance training curriculum that covers worldwide to report, without the fear of reprisal,
to create and maintain awareness of ethical business four essential pillars; anti-bribery and corruption any irregularities or deviations in IMCD operations
practices and to ensure compliance with applicable training, fraud prevention, competition law and regarding, amongst other things, IMCD's business
trade restrictions, anti-fraud, anti-bribery and antitrust international trade compliance. The roll out was principles as described in the Code of Conduct.
laws, market abuse rules and other compliance completed for the Middle-East, North-America, Latin- The Internal Alert Procedure is available in several
regulations, and more. Through a global e-learning America and the APAC region. Roll-out in EMEA is local languages.
73
To support the use of its Internal Alert Procedure, by implementation of the ESG Standards for IMCD Tax strategy and tax transparency
FOREWORD BY and in line with European legislation on whistleblower Business Partners, of which the latest version is Taxation is a subject of growing interest in the global
THE CEO
protection ( Directive EU 2019/1937) IMCD maintains available on IMCD's website. The ESG Standards society of which IMCD is part. IMCD pursues a
2021 an (externally hosted) Ethics and Compliance Hotline. for IMCD Business Partners applies to all business principled and transparent tax strategy that is aligned
HIGHLIGHTS The hotline offers a web portal in 15 languages, as partners in IMCd's supply chain and sets minimum with organisational values and aims to support the
2021 FINANCIAL well as local staffed hotlines that are available 24/7 requirements on environmental social and governance overall business strategy and objectives. IMCD sees tax
HIGHLIGHTS to report any concerns in a confidential and, if desired, topics, including the ethical business conduct that is as part of its corporate social responsibility.
anonymous manner. Poster material is distributed to all expected form IMCD's partners.
GLOBAL
PRESENCE IMCD locations to create awareness of this reporting IMCD’s tax strategy is based on the key values
channel and additional Code of Conduct awareness and In the year under review, IMCD did not learn of any and principles as described in its Code of Conduct
HISTORY business ethics training was offered upon introduction. violation in respect of its stringent anti-corruption and which provides a framework for a business culture
In the roll-out of the group compliance training program anti-bribery policies within the corporate group. that stimulates integrity, honesty, transparency,
SHAREHOLDER
INFORMATION during 2021, the Internal Alert Procedure and the sustainability, compliance, expertise and cultural
existence of the IMCD Ethics and Compliance Hotline Trade sanction and export-control diversity. These values promote a climate of trust
ABOUT IMCD as reporting channel was emphasised again. IMCD's global trade sanction policy and guideline on and respectful relationships with IMCD's business
OUR BUSINESS
restrictive measures and export control were updated in partners, investors and tax authorities. The principles of
GROUPS As from September 2021, the hotline is included in 2020 and 2021 and refresher training of key employees IMCD’s Code of Conduct are further embodiedin IMCD’s
the ESG Standards for IMCD Business Partners and on the revisions took place. The procedures described management instructions.
STRATEGY &
BUSINESS
therefore open to reports by third party stakeholders. In are used in combination with automated software to
2021, the first full year that the hotline was operational, screen business partners against various sanctions- IMCD’s tax principles require compliance with
PERFORMANCE three reports were made through the hotline IMCD. related lists. Training material on trade sanctions applicable tax rules and regulations in the jurisdictions
The reports received are examined ad appropriate and export control, developed by external experts, is in which IMCD operates. This means that IMCD
GOVERNANCE
action is taken if a compliance infringement has taken available in several languages in the course offering on strives to comply with the letter and spirit of the
FINANCIAL place. The incoming reports in 2021 concerned cases IMCD's e-learning platform and included in the global applicable tax laws. Where tax laws do not give
STATEMENTS of suspected violation of the IMCD Code of Conduct compliance training program clear guidance, prudence and transparency are the
2021
and/or Business Principles. guiding principles while adhering to IMCD’s Code
Business human rights of Conduct. Transfer pricing-related issues are dealt
IMCD also has a 24-hour emergency service line in IMCD recognises its responsibility under the United with on an arm's-length basis in accordance with
place, facilitated by independent external experts, to Nations Universal Declaration of Human Rights to IMCD's transfer pricing policy, which is consistent with
report any product spills or related incidents. respect human rights affected by its activities, as well the internationally accepted standards of the OECD
as its responsibility to ensure that IMCD's business guidelines for multinational companies.
Anti-corruption and anti-bribery operations and employees do not contribute, either
IMCD does not tolerate any form of corruption directly or indirectly, to human rights violations. IMCD The company’s genuine commercial activities are
or bribery, including facilitation payments, and is expects its business partners to do the same and leading when setting up international structures. Profits
committed to its prevention. Its employees are strictly supports them in adhering to and implementing similar are declared and taxes are paid where the economic
prohibited from making, offering or authorising bribes standards in their organisation. This core principle activity occurs. Acquisitions are a significant part
or facilitation payments. All IMCD employees must is embedded in IMCD's Code of Conduct, available of IMCD’s business strategy to achieve growth. The
strictly adhere to all anti-bribery and anti-corruption on its website. In the year under review, IMCD did different acquisition structures and tax consequences
laws in force nationally and internationally. In 2021, not learn of any violation of human rights within the of such transactions are considered and evaluated
IMCD strengthened its third party due diligence process corporate group. before carrying out an acquisition to minimise the
74
potential tax risks and tax cost. IMCD does not make As part of the OECD country-by-country regulations,
FOREWORD BY use of tax havens or non-cooperative jurisdictions for IMCD annually files a country-by-country report with
THE CEO
the avoidance of tax. the Dutch tax authorities in which it provides on a per-
2021 country basis information on matters like its taxes paid,
HIGHLIGHTS In accordance with its tax strategy, IMCD takes a accrued corporate income tax, profit before income tax,
2021 FINANCIAL conservative approach to tax risk, as it does to accumulated earnings and FTE’s.
HIGHLIGHTS other risks in the business. Tax risks can arise from
unclear laws and regulations as well as differences in IMCD has a tax policy in place in which IMCD’s view
GLOBAL
PRESENCE interpretation. There is always some level of risk on on taxation and the strategy are described and in
taxation because of the complexity of taxes (including which guidance is given for all tax-related activities
HISTORY frequent changes in laws), variety and volume of that are carried out by IMCD's corporate tax team
different taxes that affect the company's business and and local finance teams of the group companies. The
SHAREHOLDER
INFORMATION differences in the interpretation of regulations or at tax policy provides a framework for distinguishing
arm’s-length concepts meaning tax authorities may the corporate tax teams' and local finance teams'
ABOUT IMCD take a different view. Tax risks IMCD is exposed to responsibilities in order to efficiently manage and
OUR BUSINESS
include, among others, acquisition and integration risk, control tax risks. For example, tax compliance and
GROUPS non-compliance risk, legislative risk, operational risk, reporting is managed locally with support and guidance
financial risk and reputation risk. To manage its tax from the corporate tax department and external tax
STRATEGY &
BUSINESS
risks, the corporate tax department cooperates with all counsel and is periodically monitored through IMCD's
internal and external stakeholders to ensure it complies corporate controlling department. The tax policy has
PERFORMANCE with these regulations with the general objective of been discussed with internal stakeholders and is signed
mitigating these risks while at the same time aiming off by the IMCD's Management Board. The tax policy
GOVERNANCE
to be tax-efficient and, by this means, cost-effective. has also been shared with IMCD’s external stakeholders
FINANCIAL such as tax advisors and the Dutch tax authorities.
STATEMENTS IMCD has a tax control framework in place describing
2021
the tax risks and controls in detail ensuring that the In response to new legislation and tax authorities with
tax risks are known and controlled. Potential tax-related enhanced capabilities, IMCD’s tax function is designing
risks are assessed by IMCD's Management Board and digital tools. In line with the tax strategy, this will
discussed with the Audit Committee of the Supervisory improve efficiency, quality and the compliance process.
Board to ensure a sustainable and viable tax strategy
that is compliant with IMCD’s business principles and EU Taxonomy
enhances long-term profitability. In accordance with the EU Taxonomy which is applicable
as from financial year 2021, we will perform a screening
IMCD seeks to maintain an open, honest and of eligible activities. The outcomes of this screening will
constructive dialogue with tax authorities based on be further disclosed in our 2021 sustainability report, to
transparency, respect and trust. Where appropriate be published mid-2022.
IMCD may enter into agreements with the tax
authorities to ensure upfront clarity and eliminate
uncertainty about tax implications of certain positions.
75
Outlook 2022
FOREWORD BY
THE CEO
IMCD operates in various, often fragmented market
2021 segments in multiple geographic regions, connecting
HIGHLIGHTS numerous customers and suppliers across a very
2021 FINANCIAL diverse product range. In general, results are impacted
HIGHLIGHTS by macroeconomic conditions and developments in
specific industries.
GLOBAL
PRESENCE
Results can be influenced from period to period
HISTORY by factors like the ability to maintain and expand
commercial relationships, the ability to introduce
SHAREHOLDER
INFORMATION new products and start new customer and supplier
relationships and the timing, scope and impact of
ABOUT IMCD acquisitions. IMCD’s consistent strategy and resilient
OUR BUSINESS
business model has led to successful expansion over
GROUPS the years and IMCD remains focused on achieving
earnings growth by optimising its services and further
STRATEGY &
BUSINESS
strengthening its market positions.
PERFORMANCE Despite the impact of the COVID-19 restrictions on the

economic situation, IMCD delivered strong results in
GOVERNANCE
2021. Unfortunately, the uncertainty about the duration
FINANCIAL of the COVID-19 crisis and its impact on the global
STATEMENTS economy continued for longer than expected and the
2021 IMCD sees interesting opportunities to further increase
recovery is accompanied by new challenges, such as
its global footprint and expand its product portfolio both
volatile product availability and demand, and serious
organically and by acquisitions.
supply chain disruptions. Nevertheless, IMCD is a
strong, resilient and well diversified business with a
robust liquidity position and capital structure. Over
the past two years, IMCD's people have shown great
flexibility and creativity in countering the challenges
that arose and have clearly demonstrated their ability
to achieve excellent results. Other than in the ordinary
course of the business, IMCD does not foresee
significant investments or changes to the organisation
in 2022.
76
FOREWORD BY
THE CEO Governance
2021
HIGHLIGHTS
2021 FINANCIAL Management Board

HIGHLIGHTS
IMCD N.V. is managed by a Management Board, that

GLOBAL
PRESENCE consists of two members holding joint responsibility.
The Management Board manages IMCD's day-to-day
HISTORY
operations and is responsible for designing and
SHAREHOLDER achieving the company’s objectives and strategy. The
INFORMATION Management Board acts in accordance with the articles
of association and the Management Board Rules, as
ABOUT IMCD
published on the company's website here.
OUR BUSINESS
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
Members of the Management Board
GOVERNANCE
FINANCIAL P.C.J. (Piet) van der Slikke • 1988 – 1993 General Counsel Internatio-Müller. Mr. Van der Slikke has a law background
STATEMENTS
2021 (Right) 1956, Dutch • 1993 – 1995 Group Director Internatio-Müller. and started his career as an attorney in
• 1995 Founding IMCD. law firms in The Hague, Amsterdam and
Chief Executive Officer New York.
since 1995
H.J.J. (Hans) Kooijmans • 1991 – 1996 Several positions at financial Mr. Kooijmans holds a CPA degree from
(Left) 1961, Dutch management of the Technical Division of NIVRA Nijenrode, the Netherlands, with
Internatio-Müller. registration until June 2016. He has had
Chief Financial Officer • 1996 Chief Financial Officer IMCD. an extensive career at KPMG in the
since 1996 Netherlands.
77
Executive Committee
FOREWORD BY
THE CEO
The Management Board is supported by an Executive
2021 Committee, consisting of four members. The Executive
HIGHLIGHTS Committee members are responsible for various issues
2021 FINANCIAL including, regional operations and certain general
HIGHLIGHTS group-level management activities.
GLOBAL
PRESENCE
HISTORY
SHAREHOLDER
INFORMATION
ABOUT IMCD
Marcus Jordan Olivier Champault
OUR BUSINESS (1974, male, British nationailty) (1967, male, French nationailty)
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
President Americas Business Group Director Advanced Materials;
GOVERNANCE since 2016 President IMCD France
since 2018
FINANCIAL Executive Committee member
STATEMENTS
2021 since 2014 Executive Committee member
since 2018
He started his career as a formulation and application Before joining IMCD, he held senior positions in several
chemist in 1995 at Carrington Performance Fabrics. large speciality chemicals companies. Mr Champault
Mr Jordan holds a Chemistry degree from the University graduated from EDHEC and holds an MBA from INSEAD.
of East Anglia, UK.
78
FOREWORD BY
THE CEO
2021
HIGHLIGHTS
2021 FINANCIAL
HIGHLIGHTS
GLOBAL
PRESENCE
HISTORY
SHAREHOLDER
INFORMATION
ABOUT IMCD
Frank Schneider John Robinson
OUR BUSINESS (1959, male, German nationailty) (1966, male, British nationailty)
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
Business Group Director Coatings Business Group Director Pharmaceuticals
GOVERNANCE and Construction since 2000
since 2006
FINANCIAL Executive Committee member
STATEMENTS
2021 Executive Committee member since 2011
since 2011
Before joining IMCD, Mr Schneider held senior positions He started his career with GSK, where he held a post-
in leading global industrial adhesives providers. doctoral research position. Mr Robinson holds a PhD
Mr Schneider studied law at the University of Freiburg, in Biochemistry.
Germany and Business Administration at the University
of Ludwigshafen.
79
Supervisory Board
FOREWORD BY
THE CEO
The Supervisory Board monitors and supervises the
2021 activities of the Management Board and IMCD's general
HIGHLIGHTS course of business. It also supports the
2021 FINANCIAL Management Board with advice. The Supervisory Board,
HIGHLIGHTS in the two-tier corporate structure under Dutch law,
is a separate body that is independent of the
GLOBAL
PRESENCE Management Board.
HISTORY The Supervisory Board Rules are published on the

company's website here. For details on the activities of
SHAREHOLDER
INFORMATION the Supervisory Board in 2021 see the Supervisory Board
report and the Remuneration report, included in this
ABOUT IMCD Annual Report as [paragraph 3 and paragraph 4 ] of this J. (Janus) Smalbraak A.J.Th. (Arjan) Kaaks
OUR BUSINESS
Governance chapter. (1967, male, Dutch nationality) (1966, male, Dutch nationality)
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
Chair | Member of the Remuneration Committee; Vice-chair and chair of the Audit Committee;
GOVERNANCE appointed as of 12 May 2016, current term expiring appointed as of 10 February 2015, current term expires
in 2024 in 2022
FINANCIAL
STATEMENTS
2021
Most important positions Most important positions
• CEO of Pon Holdings. In his capacity as CEO of Pon • CFO Dümmen Orange.
Holdings, Mr Smalbraak holds several supervisory
board positions within the Pon group. • Former CFO and member of the executive boards of
AGRO Merchants Group, CEVA Logistics, Maxeda DIY
• Member of the board of RAI Vereniging. Group and Royal Grolsch.
• Member of the advisory boards of Gilde Buy Out Fund • Former non-executive board member of Philadelphia
and CVC Capital. Zorg and Red Star Holding.
80
FOREWORD BY
THE CEO
2021
HIGHLIGHTS
2021 FINANCIAL
HIGHLIGHTS
GLOBAL
PRESENCE
HISTORY
SHAREHOLDER
INFORMATION
ABOUT IMCD
V. (Valerie) Diele-Braun S.R. (Stephan) Nanninga A.E. (Amy) Hebert
OUR BUSINESS (1971, female, German and Swiss nationailty) (1957, male, Dutch nationality) (1972, female, American nationailty)
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
Member | Member of the Member | Chair of the Remuneration Committee; Member | Member of the Audit Committee;
GOVERNANCE Remuneration Committee; appointed as of 9 May 2018, current term expires appointed as of 30 June 2020, current term expires
appointed as of 30 June 2020, current term expires in 2022 in 2024
FINANCIAL in 2024
STATEMENTS
2021
Most important positions Most important positions Most important positions
• CEO of CABB Group GmbH. • Executive Director of Dutch Star Companies Two B.V. • CEO of Arcadia eFuels
• Formerly held international management positions at • Member of the supervisory board of CM.com NV. • Former Chief Commercial Officer of Haldor
Achroma Management LLC, DSM Nutritional Products Topsoe A.S.
AG, Quest International and Givaudan Italy. • Non-executive director of Bunzl Plc.
• Former member of the board of Cefic (the European
• Former CEO of SHV Holdings NV. Chemical Industry Council).
• Formerly held international management positions at

Celanese Corporation and Albemarle Cooperation.
81
FOREWORD BY
THE CEO
Supervisory Board report
Another focus area is sustainability. Expectations in
2021 the public domain are changing rapidly and new
HIGHLIGHTS This report provides information on the activities of the Supervisory Board during 2021. legislation is being introduced at a similarly high
2021 FINANCIAL The Supervisory Board supervises the policies pursued by the Management Board and pace. The Supervisory Board observes that IMCD is
HIGHLIGHTS working hard to meet today's society's demands and
its performance, and the general course of affairs within the company. The Supervisory
to increase transparency on its ESG performance. In
GLOBAL Board also advises the Managing Board and supervises the dynamics and relationship 2021, the company obtained a Gold level recognition
PRESENCE
between the Management Board and the other members of the Executive Committee. from EcoVadis, demonstrating that the company made
HISTORY
good progress.
SHAREHOLDER
INFORMATION Introduction by the Chair Despite all the available technical means of In 2021, IMCD continued to grow organically, with
communication, the Supervisory Board was delighted all regions contributing, and through further strategic
ABOUT IMCD
Although perhaps not as turbulent as 2020, the that 2021 allowed for more personal contact, with each acquisitions. The Supervisory Board discussed and
OUR BUSINESS challenges that IMCD faced in 2021 were many; other, the Management Board members, but also local approved a total of eight acquisitions across all regions,
GROUPS lingering effects from the COVID-19 pandemic, management and IMCD employees. A good example is of which three transactions are expected to take place
volatility in demand, product shortages, supply chain the Supervisory Board work visit to Germany, which in the current year.
STRATEGY &
BUSINESS disruptions and price increases. Nevertheless, for had been postponed in 2020. The interactions with
the second consecutive year, IMCD showed its the enthusiastic team in the Cologne office and the For each target approved, there was a clear strategic
PERFORMANCE ability to work around challenges with creativity and innovations presented by, amongst other, the food rationale; even the smaller acquisitions presented
GOVERNANCE
flexibility delivering excellent financial results and and pharmaceutical business groups, again evidenced opportunities for strengthening our local presence and
impressive growth. IMCD's cohesive culture and entrepreneurial spirit. It geographic footprint, or enabled IMCD to fill gaps in its
FINANCIAL was also great fun. product offering. Especially with the further expansion
STATEMENTS
2021
IMCD's digital transformation that accelerated in achieved in APAC and the Americas (covering Central
2020 was further embraced. Virtual communication Many more topics come to mind in a review of the America, Caribbean and Latin-America), IMCD has built
means , including new tools such as IMCD's year 2021. IMCD worked diligently to increase diversity an excellent position to benefit from accelerated growth
Virtual Visitor events, have been a successful in throughout the company. With more women in the total in these markets.
keeping the relationship with customers and suppliers workforce than men, IMCD already distinguishes itself
strong and tailored to their needs. In 2021, IMCD from the chemical industry as a whole. This leaves room With hard work, IMCD has manoeuvred successfully
launched digital solution centres for multiple business to focus on increasing diversity at the top. A programme through yet another challenging year. No doubt, new
groups (Advanced Materials, Pharmaceuticals) to offer was initiated to support and develop female talent challenges will arise in the coming years, but the
customers even more ease to make use of IMCD's for future promotion to senior positions. In addition, Supervisory Board is confident that IMCD is well-
technical and formulatory expertise. All of these efforts the Management Board achieved its personal goals of equipped to turn such challenges into successes.
have led to an increase in the number of partnerships appointing over 40% women in vacancies for senior
with suppliers and customers served across all markets management role during 2021; an ambitious target Janus Smalbraak
and regions. considering that the pace of change in the chemical
industry in this context is slow.
82
Composition, diversity and Composition Supervisory Board

FOREWORD BY
THE CEO
independence NAME + POSITION YEAR OF INITIAL TERM NUMBER INDEPENDENT
(END OF YEAR) NATIONALITY GENDER BIRTH APPOINTMENT EXPIRES IN OF TERMS (DCGC)
2021 The Supervisory Board currently consists of five Janus Smalbraak Dutch male 1967 2016 2024 second yes
HIGHLIGHTS members, as described on page 80. The tables below - Chair of the SB
provide an overview of the composition, attributes and - Member of the RC
2021 FINANCIAL
HIGHLIGHTS skills of the Supervisory Board members. Arjan Kaaks Dutch male 1966 2015 2022 second yes
- Member of the SB, Vice-chair
GLOBAL - Chair of the AC
PRESENCE Changes in 2021 Stephan Nanninga Dutch male 1957 2018 2022 first yes
In a press release published on 26 February 2021, the - Member of the SB
HISTORY Supervisory Board announced its decision to appoint - Chair of the RC
Janus Smalbraak as the new Chair of the Supervisory Valerie Diele-Braun German Swiss female 1971 2020 2024 first yes
SHAREHOLDER
INFORMATION Board effective from that date. This appointment - Member of the SB
anticipated the retirement of Michel Plantevin, whose - Member of the RC
ABOUT IMCD final term on the board expired at the end of the 2021 Amy Hebert American female 1972 2020 2024 first yes
- Member of the SB
OUR BUSINESS
AGM. After his retirement, the board continued in a
- Member of the AC
GROUPS composition of five members.
STRATEGY &
BUSINESS
Changes foreseen in 2022
At the end of the upcoming AGM in 2022, the final term
PERFORMANCE of Arjan Kaaks will expire. In a press release issued on
25 February 2022, the Supervisory Board announced
GOVERNANCE
the nomination of Mr Willem Eelman as member of the
FINANCIAL Supervisory Board and successor of Arjan Kaaks in his
STATEMENTS role as Chair of the Audit Committee.
2021
In its annual evaluation that took place in November
2021, the board concluded that there is no short-term
need for a sixth board member and, hence, no further
change to the composition of the Supervisory Board in
2022 is foreseen at present.
83
Skills & attributes of IMCD Supervisory Board members

FOREWORD BY
THE CEO JANUS SMALBRAAK ARJAN KAAKS STEPHAN NANNINGA VALERIE DIELE-BRAUN AMY HEBERT
Skills
2021 Managing large organisations x x x x x
HIGHLIGHTS
International business experience x x x x x
2021 FINANCIAL Industry knowledge: chemicals (speciality, or other)and/or ingredients x x x
HIGHLIGHTS Market knowledge: distribution x x x x x
M&A experience x x x x x
GLOBAL
PRESENCE Finance, audit & risk x x
Governance, regulatory compliance & legal x x x x x
HISTORY
People, culture and HR expertise x x x x x
SHAREHOLDER Sustainability & CSR x x x
INFORMATION Investor relations x x x x
ABOUT IMCD
Other attributes
OUR BUSINESS Currently active in an executive position at another company x x x x
GROUPS Mainly non-executive role x
STRATEGY &
BUSINESS Diversity on the Supervisory Board The board believes the experience and skills of Independence / No conflicts of interest
The Supervisory Board strives to have a diverse Mr Eelman complement the knowledge present in Throughout 2021, all Supervisory Board members
PERFORMANCE composition of members to ensure that the knowledge, the current composition of the Supervisory Board qualified as independent within the meaning of
skills and experience present are complementary, and adds financial expertise as well as experience best practice provision 2.1.8 of the Dutch Corporate
GOVERNANCE
enabling each member to make a valuable contribution in (the management and governance of) Dutch Governance Code. IMCD has not granted any loans,
FINANCIAL in carrying out the various responsibilities of the board listed companies. advances, guarantees, shares or options to its
STATEMENTS or committee. Supervisory Board members. Their remuneration is
2021
An unfortunate side-effect of previous appointments is not dependent on the results of IMCD. No Supervisory
In addition, the Supervisory Board strives for diversity that several members are now scheduled for retirement Board members held any shares or options on shares
in scheduled resignations of its members. When from the board in the same year. The Supervisory Board in IMCD, and no Supervisory Board members entered
considering vacancies, achieving and/or maintaining is aware of this and will strive to spread the retirements into transactions in 2021 where there was a current or
an appropriate balance in gender, age and geographic dates in the rota again when vacancies arise and/or potential conflict of interest.
background are important aspects that will be taken additional appointments are made in future years.
into account. In carrying out their duties all Supervisory Board
members are fully aware of, and abide by, the conflict
In 2021, there was no vacancy on the Supervisory of interest provisions of the Supervisory Board Rules
Board. In the search for a new board member to fill the and their personal statutory and fiduciary duties to act
scheduled vacancy in 2022, for which Willem Eelman independently and in the interest of the company and
is nominated, the Supervisory Board took the diversity its stakeholders.
policy into account.
84
Supervision in 2021
FOREWORD BY
THE CEO
In performing their duties, the members of the
2021 Supervisory Board are guided by the interests of IMCD
HIGHLIGHTS and all its stakeholders. The activities the Supervisory
2021 FINANCIAL Board engaged in as well as the material matters on
HIGHLIGHTS which its supervision was focused in the course of 2021
are described below.
GLOBAL
PRESENCE
Meetings and attendance
HISTORY Due to the continuing effects of the pandemic,
the meeting schedule of the Supervisory Board still
SHAREHOLDER
INFORMATION deviated from previous years. A return to the regular
schedule of five face-to-face meetings in a year was
ABOUT IMCD not yet possible due to the various lock down and
OUR BUSINESS
travelling restrictions that still applied in 2021. The
GROUPS Supervisory Board was able to meet face-to-face in
its full composition on two occasions, in June and
STRATEGY &
BUSINESS
November. All other regular meetings were held with
some of the members attending in person in Rotterdam
PERFORMANCE and other members attending via video-conferencing.
“During its work visit
GOVERNANCE
In order to keep virtual meetings effective, it was to IMCD Germany,
FINANCIAL decided on some occasions to split the agenda
STATEMENTS and organise two separate sessions (to limit screen the Supervisory
2021
time). Consequently, eight Supervisory Board meetings Board received
took place in total. All the meetings were held with
both Management Board members present. Three lab demostrations
Supervisory Board meetings included a closed session showing of IMCD's
without the Management Board members’ attending.
technical capabilities
Between meetings, the members of the Supervisory in pharmaceuticals,
Board had regular contact with each other, by telephone
and e-mail. To prepare for meetings and to discuss making interaction
the current state of affairs, the Chair had regular dynamic and
contact with the CEO. The full Executive Committee was
present during the (virtual) Supervisory Board meeting great fun.”
in December 2021.
85
The following table shows the attendance record of the lunch in which the board members could experience Topics of discussion and advice
FOREWORD BY individual Supervisory Board members. Attendance is the food trends and technologies IMCD is working
THE CEO
expressed as the number of meetings attended out of on, the interaction was dynamic and great fun . The Regular items on the Supervisory Board agenda were
2021 the number the member was eligible to attend. Supervisory Board was impressed with the enthusiasm the development of results, the financial position,
HIGHLIGHTS and positive spirit it encountered. acquisition projects and evaluations, and reports on
2021 FINANCIAL
Attendance record for SB and committee meetings any matters relating to material risks, claims and
HIGHLIGHTS With Frank Schneider, member of the Executive compliance issues.
Committee and global Business Group Director for
GLOBAL MEMBER SB AC RC
PRESENCE Coatings & Constructions, the Supervisory Board To provide more insight, some matters of material
Janus Smalbraak (Chair) 8/8 - 3/3
discussed the global strategy for the business group, significance relating to the supervision in 2021 by the
Arjan Kaaks (Vice-Chair) 8/8 4/4 -
HISTORY including risks, opportunities and focus area's - Supervisory Board are discussed in more detail below.
Stephan Nanninga 8/8 - 3/3
such as sustainability - for the near and long-term
SHAREHOLDER Valerie Diele-Braun 8/8 - 3/3
INFORMATION future. IMCD's Business Group Director for Industrial Strategy
Amy Hebert 8/8 4/4 -
Solutions (previously Synthesis) provided an insightful On various occasions, the Management Board and the
ABOUT IMCD Michel Plantevin 4/8 1 - -
presentation and update for this business group going Supervisory Board discussed the company strategy for
1 Mr Plantevin attended all SB meetings held in 2021 until his
OUR BUSINESS
forward as of 2022. long-term value creation (and its implementation). In
scheduled date of retirement from the Supervisory Board.
GROUPS 2021, most time was spent on the regional aspects
With two dinners, one with the Supervisory Board and and developments, the discussion of which was closely
STRATEGY &
BUSINESS
Management Board members, and the next day with connected to potential acquisitions or other business
Supervisory Board work visit all participants in the program, there was also ample opportunities as presented by the Management Board.
PERFORMANCE Following site visits to Belgium (2017), Canada (2018) opportunity to interact in a more informal way. The Management Board made good progress in the
and France (2019), the Supervisory Board intended to execution of IMCD's growth strategy in all regions.
GOVERNANCE visit IMCD's facilities in Germany in 2020, but this visit In its annual evaluation, which was conducted in
was postponed to 2021 due to the pandemic. Despite a separate closed session during the site visit, the As the organisation in EMEA is mature in set-up, time
FINANCIAL
STATEMENTS uncertainty on measures and lock-down restrictions Supervisory Board reiterated that such occasional was more often spent discussing the organisation and
2021 throughout the year, the Supervisory Board was personal interaction is very helpful for the board management for emerging regions, such as APAC,
delighted to be able to visit IMCD's office in Cologne to execute its supervision and experience the IMCD where IMCD accelerated growth with five acquisitions
in the course of November for a 3-day work visit. culture in real life. It was concluded that a work visit (in Indonesia, China and Australia / New Zealand).
remains a great tool for the board to gain more in- Through this expansion, IMCD was able to onboard key
During the work visit, the Supervisory Board received depth knowledge of the strategy and actions of (local) suppliers in various parts of the region.
presentations from the management teams of several business groups, and insight in IMCD's local teams
European countries, including Germany, Austria (also and operations. In addition, the Supervisory Board discussed the set
covering IMCD's operations in Southeast Europe) up of the activities and management in the Americas
and Switzerland. on several occasions. In recent years, IMCD has
achieved a solid footprint In Latin-America, and with
In addition, the board members were updated on the the acquisition of Andes in 2021, IMCD improved its
trends, opportunities and innovative developments in position Central America and the Caribbean.
the German market for the business groups Food and
Pharmaceuticals. With a lab demo showing of IMCD's The annual report by the Management Board on the
technical capabilities in pharmaceuticals and a tasting (general) strategy and associated risks was discussed
86
with the full Executive Committee present, providing Operational performance and
FOREWORD BY
THE CEO
the Supervisory Board with thorough insight into the budget planning
ambitions for the company and the state of execution. During all meetings, those present discussed in detail
2021 the company's latest operational performance and
HIGHLIGHTS
Acquisitions the development of its results, for the company as
2021 FINANCIAL In 2021, the Supervisory Board gave due consideration a whole and per region, as well as per country if
HIGHLIGHTS to a number of potential acquisitions and approved a there were grounds to do so. During such updates,
total of eight acquisitions, three of which are expected the Management Board informs the Supervisory Board
GLOBAL
PRESENCE to be completed in the course of 2022. about material developments in the markets, or any
changes in economic circumstances relevant to IMCD.
HISTORY The acquisitions discussed include Siyeza Fine Chem
Proporiety Limited in South Africa, Siliconas y Quimicos Furthermore, important organisational changes per
SHAREHOLDER
INFORMATION in Colombia, Andes Chemical Corp., based in the Miami region and important developments concerning IMCD’s
metropolitan area and active in Caribbean and Central relationship with its major suppliers and/or customers
ABOUT IMCD American countries, Colombia and Peru, Shanghai are reported and the opportunities or risks to be
OUR BUSINESS
Yuanhe Chemicals Co. in China and the aqcuisition expected from such developments are discussed.
GROUPS of Maquimex (two legal entities) in Mexico. All these
transactions were completed in the course of the year. During the Supervisory Board’s meeting in December
STRATEGY &
BUSINESS
2021, the budget for 2022 was presented and approved.
In addition, the Supervisory Board approved of the The budget is the outcome of an extensive internal
PERFORMANCE acquisition of Aquatech (two legal entities) and Syntech process of local and regional budget discussions.
(two legal entities) in China, and PT Megasetia Agung
GOVERNANCE
Kimia in Indonesia. The transaction of Megasetia was The budget presentation was discussed with the full
FINANCIAL closed in December 2021, Syntec was closed in January Executive Committee present, providing an opportunity
STATEMENTS 2022 and Aquatech is expected to close in the first for the Supervisory Board members to discuss market
2021 The Supervisory Board also discussed the challenges
quarter of 2022. conditions, competitors, opportunities and risks as IMCD encountered or anticipated as a consequence
well as other developments within specific regions and of local government measures, the impact on financial
Many of these acquisitions were smaller companies IMCD’s business groups in more depth. results, the volatility of economic conditions and (lack
that will be integrated in IMCD's existing local of) insight into the short and long-term consequences,
operations. However, each one represented a strategic COVID-19 pandemic and its impact that returned to the fore towards the end of the year
benefit, such as access to new territories, building During all meetings in 2021, the impact of the COVID-19 due to the quick spread of the Omicron virus variant.
economies of scale, strengthening IMCD's presence in pandemic on IMCD remained a topic of discussion.
certain business segments and/or eliminating product The focus during these updates shifted from the
portfolio gaps. immediate concerns for the health and well-being of
IMCD's employees that was uppermost in the early
stages of the pandemic to the operational challenges
that intensified during the year, including supply
chain constraints, uncertainty in product availability or
allocation, logistic and transport disruptions as well as
increase of costs and product prices.
87
Digitalisation increase in reporting scope, as this enhances development going foreward, a similar metric target
FOREWORD BY In February 2021, IMCD's Group Director for Digital transparency and offers stakeholders greater insight. for female appointments will again be part of the
THE CEO
Transformation presented a update on IMCD's That IMCD is on the right track in managing and Management Board's non-financial KPIs in 2022.
2021 global digital transformation strategy. The spike in reporting on ESG topics was also recognised by
HIGHLIGHTS use of digital communication means during the company winning an EcoVadis Gold award at the end Management succession was discussed on multiple
2021 FINANCIAL COVID-19 pandemic has helped drive adaptation under of the year. occasions throughout the year, with the Management
HIGHLIGHTS IMCD management and employees and has created Boards members' scheduled reappointment dates
momentum for the roll-out of further digital tools. The increased reporting scope however also led to approaching. In preparation of their contract renewal,
GLOBAL
PRESENCE a substantial increase in reported emissions. Hence, IMCD's CEO Piet van der Slikke announced to plan
The roll-out of the B2B platform MyIMCD is a key progress towards the set goal of achieving a 15% for retirement in 2024, leading to a nomination for
HISTORY milestone in IMCD's digital journey. Throughout 2021, reduction in GHG emissions per million Euros operating re-appointment for two more years. IMCD's CFO
the digital team has worked on further improving the EBITDA by 2024, compared to the baseline year 2019, Hans Kooijmans has indicated his willingness to
SHAREHOLDER
INFORMATION functionality and adding features that enhance the halted. To encourage the company to redouble its accept nomination for another four-year term. Both
customer experience. Examples are the enrichment efforts to reduce emissions, the SB has increased reappointments will be put to the vote during the
ABOUT IMCD with a dashboard and the option of chat or live chat the weight of the sustainability related bonus KPIs 2022 AGM.
OUR BUSINESS
elements for service and support. for the Management Board members for 2022. More
GROUPS information is provided in the Remuneration Report IT infrastructure and controls
Internally, the digital strategy focusses on a strong included hereafter. An annually recurring topic of great importance is the
STRATEGY &
BUSINESS
IT backbone, integration and communication of operation and management of IMCD’s IT infrastructure.
applications and further use of AI automation. Talent development & Diversity IMCD’s operations are supported by sophisticated and
PERFORMANCE As IMCD keeps growing, talent development, diversity modern IT solutions, which play an important role in the
Sustainability and inclusion within the company remain important further digitalisation of the business model.
GOVERNANCE
Sustainability is embedded in IMCD's core activities topics for the Supervisory Board. The execution of the
FINANCIAL and ambitions and the company is dedicated to HR strategy was discussed in detail in the presence The global roll-out of an integrated customer
STATEMENTS use its knowledge and expertise to not only help of the Global HR Director. Special attention was given relations management system and an integrated
2021
its suppliers and customers meet society's demands to IMCD's culture and values, and the way that IMCD product information management system have been
today, but to give them an advantage to operate ensures that this culture is also shared with and significant steps towards being able to support further
successfully tomorrow. embraced by new employees joining after acquisitions. digitalisation efforts. The roll-out and implementation
of projects in this area continued in 2021. During
A clear driver is IMCD's Sustainable Solutions program In 2021, IMCD also started a special program for the the annual review which took place in June 2021,
that again gained a lot of traction throughout the year. development of female talent and leadership. As part of the Supervisory Board established that good progress
However, it has also become clear that it is no easy the Management Board's non-financial KPIs for 2021, has been made on all strategic objectives of IMCD’s
feat to set-up robust metrics to track performance for a the Supervisory Board included a target to appoint at IT strategy.
variety of business groups and thousands of products. least 40% females in vacancies or new positions for
This will be a focus area for the company to work on in senior management throughout the year. Cyber security
the coming year. Cyber security was another topic meriting attention
The Supervisory Board received regular updates from the Supervisory Board. In 2020 it was decided
In July, IMCD published its Sustainability report, again on leadership changes and new (senior) hires in that the Audit Committee will monitor the roll-out
with limited assurance by the external auditor. The the organisation and was happy to see that IMCD of IMCD's information security strategy. Because of
Supervisory Board is positive about the achieved overachieved on the set target. To support this positive the vital importance of the topic and the increasing
88
number of cyber-attacks worldwide, the Supervisory

FOREWORD BY Board however requested for time to be set aside in one
THE CEO
of the physical meetings to discuss this topic with the
2021 full board.
HIGHLIGHTS
2021 FINANCIAL A cyber security review took place in June when IMCD's
HIGHLIGHTS Information Security Officer presented in detail the
actions taken in 2020/2021 and focus areas for further
GLOBAL
PRESENCE reinforcements and improvements. Going forward, the
roll-out of IMCD's IT and information security strategy
HISTORY will again be monitored by the Audit Committee.
SHAREHOLDER
INFORMATION Ongoing training and
performance assessment
ABOUT IMCD In the absence of the Management Board members,
OUR BUSINESS
the Supervisory Board appraised their individual
GROUPS performance and discussed the related remuneration.
In addition, in closed sessions, the Supervisory Board
STRATEGY &
BUSINESS
discussed its own composition and diversity, the
Supervisory Board profile and its remuneration. An
PERFORMANCE overview of the other positions of the Supervisory
Board members was discussed as well.
GOVERNANCE
FINANCIAL In a closed session during the work visit in Germany, the

STATEMENTS Supervisory Board members discussed the outcome of
2021
its self-assessment concerning the functioning of the
Supervisory Board, its members and its committees, the members and committees have been able to tool for the Supervisory Board to connect with the
including topics such as the interaction between the operate satisfactorily. organisation and discussed making use of external
Supervisory Board and the Management Board and experts to gain a more in-depth understanding of the
information provision to the Supervisory Board. The The diversity in personal backgrounds in the board's relevant topics impacting IMCD. The conclusions drawn
overall feedback from the 2021 evaluation was positive. current composition (nationality, expertise and market by the Supervisory Board were subsequently shared
knowledge, and work experiences) as well as gender is with the Management Board.
The Supervisory Board members appreciated the open appreciated and is deemed to have strengthened the
atmosphere and ability to discuss matters freely, both board as a whole. As part of the continuous Supervisory Board training
amongst each other as well as with the Management programme, the Supervisory Board was informed of
Board members. Although the introduction of the The Supervisory Board also evaluated practical matters, developments in relevant legislation and was given
newest members, Amy Hebert and Valerie Diele-Braun, such as the timing of meetings and calls, and noted presentations on developments in the business groups
took place mostly virtually, the board established that that documents and minutes could be shared in a and/or staff departments (e.g. Compliance, HR and
this did not make a material difference and that more timely manner. In addition, the Supervisory Board diversity, IT, information security and digitalisation).
concluded that an annual work visit is a valuable
89
The Supervisory Board members furthermore have Audit Committee feedback of the Audit Committee members on the prior
FOREWORD BY access to market reports covering IMCD and/or its The Audit Committee held four meetings in 2021. At sustainability reports were also addressed.
THE CEO
competitors, which they can use to educate themselves all meetings, IMCD's CFO, the Director of Corporate
2021 and develop more in-depth knowledge of relevant Control, the internal auditor and representatives of In June, the Audit Committee discussed IMCD's internal
HIGHLIGHTS market conditions, opportunities and the challenges the external auditor, Deloitte Accountants B.V., were control and risk management system and progress
2021 FINANCIAL that IMCD faces. present. No changes occurred in the committee made on the risk assessment renewal with the Director
HIGHLIGHTS composition during 2021. Arjan Kaaks chaired the Audit of Corporate Control. In addition the Internal auditor
Committee throughout the year. discussed the Internal Audit reporting topics and
GLOBAL
PRESENCE Supervisory Board committees the updated charter. After this meeting, the Audit
Minutes of the meetings were submitted to the Committee reported its findings to the Supervisory
HISTORY The Supervisory Board has installed two committees: Supervisory Board and the Chair of the Audit Board and the board concluded that all required and
an Audit Committee (AC) and a Remuneration Committee provided regular updates of the discussions desirable internal control elements were still effectively
SHAREHOLDER
INFORMATION Committee (RC). The division in tasks and that took place. assumed within the agenda, programme and tasks of
responsibilities and the working method of the the internal auditor and the corporate (control) team.
ABOUT IMCD Supervisory Board and its committees are described The Audit Committee discussed IMCD’s accounting
OUR BUSINESS
in more detail in the Corporate Governance chapter. policies and valuation methods as used in the In November, the Audit Committee convened in
GROUPS preparation of its quarterly, semi-annual and annual Germany, with the accountant, internal Auditor,
New - Nomination and financial reports for the full Supervisory Board. Director Corporate Control, and Director Group Tax
STRATEGY &
BUSINESS
Appointment Committee In addition, post-acquisition reviews for recent & Treasury present. The internal audit plan for 2022
As the topic of management succession was more acquisitions, IMCD's IT infrastructure and strategy and was presented and subsequently approved by the full
PERFORMANCE regularly discussed during the year, and taking into internal control, governance and related risks, IMCD's Supervisory Board in its December meeting. The Audit
account the anticipated retirement of IMCD's CEO in risk assessment and fraud risk analysis and IMCD's tax Committee discussed the internal audit findings up to
GOVERNANCE
2024, the Supervisory Board decided to establish a and treasury strategy were given particular attention and including September 2021 and received a thorough
FINANCIAL separate Nomination- and Appointment Committee, in in 2021. update on IMCD's tax strategy and tax and treasury
STATEMENTS line with the recommendations in the Dutch Corporate development impacting the company.
2021
Governance Code, with effect as of 2022. In February, the Audit Committee discussed the
financial statements and 2020 audit in depth with External auditor
At its inception, the Nomination and Appointment the external auditor, along with the topic of fraud The Supervisory Board is responsible for engaging and
committee will consist of the same members who risk analysis. In 2021 IMCD implemented updates supervising the performance of the external auditor.
currently make up the Remuneration Committee. The to its risk assessment and updated its risk and Deloitte Accountants B.V. (Deloitte) was reappointed
reason for this is the fact that, up until now, these control framework. as IMCD’s external auditor for the financial years 2021
members often prepared the Supervisory Board's at the 2021 AGM, at which occasion the lead partner
decisions in respect of nominations and appointment In April, the internal auditor presented his first findings rotated. The Audit Committee and the Management
matters. Continuing in the same composition allows for (for the period up to and including March 2021) and Board reported to the Supervisory Board on Deloitte’s
efficient meetings of both committees at the same time. the committee discussed the post-acquisitions review, envisaged audit plan for 2021, the relationship with
the 2020 external audit evaluation and the external and functioning of Deloitte as external auditor, as well
The Supervisory Board's chair, Janus Smalbraak, audit plan for 2021. The improvements in IMCD's as on other audit and non-audit services provided to
will also chair the Nomination and data collection process for sustainability data and IMCD by Deloitte. The Audit Committee evaluated the
Appointment Committee. relationship with the auditor in its November meeting
90
and proposed to the Supervisory Board to extend the implementation of the Revised Shareholders' Rights The financial statements 2021 were endorsed by all
FOREWORD BY assignment for the financial years 2022 and 2023. Directive.The revisions were approved by the General Management Board and Supervisory Board members
THE CEO
Meeting on 30 June 2020. No changes took place and are included, together with Deloitte’s auditor’s
2021 Deloitte attended the meetings of the Supervisory during 2021. report, under Other information on page 216 of this
HIGHLIGHTS Board in February and December 2021, in which annual report. The Management Board will present the
2021 FINANCIAL discussions were held on the financial statements The 2021 remuneration report contains further details 2021 financial statements and its report at the AGM.
HIGHLIGHTS and the key audit points, and observations and on how the remuneration policies were implemented in
recommendations as presented in the accountants' 2021. Detailed information on the compensation of the The Supervisory Board recommends that the AGM
GLOBAL
PRESENCE management letter. Management Board and Supervisory Board in 2021 is adopt the 2021 financial statements, including a
set forth in note 53 to the financial statements. proposed dividend of EUR 1.62 in cash per share.
HISTORY Deloitte confirmed its independence from IMCD in
accordance with the professional standards applicable Due to the implementation of the Revised Shareholders' In addition, the Supervisory Board recommends
SHAREHOLDER
INFORMATION to statutory auditors of public-interest entities. Rights Directive in 2020, the format of the that the members of the Management Board
remuneration report was amended to ensure and Supervisory Board be discharged from liability
ABOUT IMCD Remuneration Committee compliance with the new legislation. The 2020 in respect of their respective management and
OUR BUSINESS
The Remuneration Committee convened three times remuneration report did not deviate from the format supervisory activities performed in 2021.
GROUPS in 2021 (in February, September and December), with chosen a year before. It was the second remuneration
IMCD's Global HR Director attending two of these report that was submitted to the General Meeting for an The Supervisory Board would like to thank all
STRATEGY &
BUSINESS
meetings. The members also held regular consultations advisory vote and was again well received with 94.09% IMCD employees, under the strong leadership of the
to discuss, amongst other matters, the proposals for (2020: 94.46%) of votes cast in favour of approval. Management Board and Executive Committee, for their
PERFORMANCE the remuneration of the individual members of the continued hard work and commitment shown in the
Management Board. Stephan Nanninga (Chair), Janus year 2021, which proved to be another excellent year
GOVERNANCE
Smalbraak and Valerie Diele-Braun were member of the Financial statements 2021 of growth.
FINANCIAL Remuneration Committee throughout the year. and profit appropriation
STATEMENTS Rotterdam, 24 February 2022
2021
The minutes of the Remuneration Committee meetings The Supervisory Board reviewed and discussed the
were shared with the full Supervisory Board and the annual report and the financial statements for 2021 Supervisory Board
Chair of the Remuneration Committee provided regular with all parties involved in the preparations . Based Janus Smalbraak
updates of the discussions that took place. on these discussions the Supervisory Board concludes Arjan Kaaks
that the annual report provides a solid basis for the Stephan Nanninga
The Remuneration Committee presented its findings Supervisory Board’s accountability for its supervision Valerie Diele-Braun
and proposals to the Supervisory Board and prepared in 2021. Amy Hebert
the Supervisory Board’s remuneration report for 2021,
which is - other than in previous years - now included in The financial statements for the financial year 2021
this Annual Report. have been prepared by the Management Board and
were audited by Deloitte Accountants B.V. The financial
MB and SB remuneration statements and the outcome of the audit performed by
The remuneration policy for the Management Board the external auditor were discussed by the Supervisory
was amended in 2020 to align it with the new Board in the presence of the external auditor in
legal requirements applicable as a result of the February 2022.
91
INSIGHT
Digital transformation focused

on customer centricity
IMCD progressed its digital transformation across the foundational
systems, applications and projects. Our global business benefits
from the centrally and globally governed digital and IT set-up
which is scalable, adaptable to new technologies and above all
implemented in accordance with today’s security standards.
The pandemic shifted internal and external collaboration increasingly towards

digital tools, channels and platforms. Accordingly, IMCD continued to develop its
capabilities in digital marketing, the MyIMCD customer portal and the
connectivity between systems. In the first half of the year IMCD launched its new
data architecture and visualisation application which provide a full view of the
business, connected with data from all relevant source applications.
Datamanagement is key for success

Dashboards have been optimised and embedded for all roles from sales to
marketing and from finance to supply chain & regulatory affairs. Moreover, solid
data management is the starting point of any future application of machine
learning. With structured workflows in commercial, supply chain and lab
operations, we improved on many features, amongst others in pricing
management, document management and handling of technical requests.
Digital marketing reinforced its global network of marketing automation

specialists and, aligned processes with IMCD commercial core applications,
realising an end-to-end approach from lead generation to opportunity
management and sales completion. Another highlight was the launch of local
websites in the US and Canada. “Digital Marketing is all about using data and
technology to deliver great experiences to our
Customer portal MyIMCD
The MyIMCD customer portal, a protected environment where customers and customers, providing them with personalised content
IMCD can collaborate on all aspects of the business, was further enriched with when and where it matters most to them.”
new features and the roll-out has been extended to countries across continents.
Denis Engin
Group Director Digital Marketing
92
FOREWORD BY
THE CEO
Remuneration report
Over all, the Supervisory Board is happy to conclude
2021 that the Management Board was again able to
HIGHLIGHTS The Remuneration Committee of the Supervisory Board is responsible for assessing and successfully deliver on all aspects of its promise
2021 FINANCIAL preparing the remuneration policy and remuneration proposals concerning the members of short- and long-term value creation in the year
HIGHLIGHTS under review.
of the Management Board and the Supervisory Board. The Supervisory Board assesses
GLOBAL the proposals and, in the event of proposed policy changes, submits the remuneration
PRESENCE
policy to the General Meeting for adoption. Remuneration Policies
HISTORY
This remuneration report provides an overview of the remuneration policy for IMCD's
The Remuneration Policy for the Management Board
SHAREHOLDER
INFORMATION
Management Board and the implementation thereof in 2021. was amended in 2020 to align it with the new
requirements of the Dutch Civil Code following the
ABOUT IMCD
implementation of the Revised Shareholders’ Rights
OUR BUSINESS
Key highlights – 2021 performance and customer base. By the end of 2021, IMCD Directive. The revised policy was approved by the
GROUPS partnered with 2,600 suppliers, - an increase of 400 General Meeting of Shareholders on 30 June 2020 (with
Business in 2021 was not without challenges. The in comparison to 2020 -, and served approximately 94.85% of the votes cast in favour). At the same time,
STRATEGY & COVID pandemic still heavily influenced market 56,000 customers.
BUSINESS a separate Remuneration Policy for the Supervisory
conditions and where recovery was expected in the Board was adopted (with 99.49% of votes cast in
PERFORMANCE first half of the year, the Omicron variant of the virus In addition to the financial results, the Supervisory favour). No further changes took place in 2021.
was reason for renewed concern, travel restrictions and Boards is pleased that focus on sustainability and
GOVERNANCE
lock-downs. Volatility in product availability and demand diversity , two topics included in the Management Board Objective and principles
FINANCIAL remained high and unpredictable throughout the year. members' personal KPIs, also paid of this year. At the The objective of IMCD’s Remuneration Policy for the
STATEMENTS IMCD faced supply chain disruptions that demanded end of 2021, IMCD won a Gold level award in its annual Management Board is to attract, motivate and retain
2021
creativity and flexibility to counter. In the second half EcoVadis sustainability assessment for the entire group, highly qualified executives by providing them with a
of the year, inflation rose in many markets, clouding in recognition of the high standards and management balanced and competitive remuneration package that
visibility even more. systems used throughout the organisation on ESG is focused on sustainable results and is aligned with
matters, as well as the transparency that IMCD IMCD’s long-term strategy.
In light of these challenging conditions, IMCD, under demonstrates in its reporting.
the guidance of the Management Board delivered yet For the remuneration of the Supervisory Board the
another year with impressive performance and strong Furthermore, the Management Board started an IMCD guiding principle is that the amount and level should
operations results. Revenue increased by 24% to over Women in Leadership programme to accelerate the reflect the time spent by, and the responsibilities of
EUR 3.4 billion, with gross profit growth of 29%. Cash development of female talent within IMCD, thus the Supervisory Board members. Given the nature
earnings per share increased by 53% to EUR 4.64. improving gender diversity in the internal pool for senior of responsibilities of the Supervisory Board, the
Operating EBITA increased by 54% with an operating management appointments in the long(er) term. The remuneration is not dependent on the results of IMCD;
EBITA margin of 10.9% (up from 9.1% last year). Management Board also met the target to appoint more it consists of a fixed compensation only.
than 40% women in senior management vacancies in
These favourable results were realised by the 2021, which improved the male/female ratio in senior
continuous strengthening of supplier relationships positions in the short term.
93
Summarised overview of IMCD's remuneration policy and application in 2021

FOREWORD BY
THE CEO POLICY SUMMARY APPLICATION IN 2021 1
Base salary • A fixed annual cash compensation, paid in 12 equal • Base salary paid as follows:
2021 monthly instalments ◦ Piet van der Slikke: EUR 668,732
HIGHLIGHTS • Aim for the median level of the labour market peer group ◦ Hans Kooijmans: EUR 520,940
• Reviewed annually, against external market developments and • The 2021 base salaries include an adjustment for inflation only, on the basis of the Dutch Consumer
2021 FINANCIAL internal relativity to other employees Price Index (CPI) determined by Statistics Netherlands (Centraal Bureau voor de Statistiek)
HIGHLIGHTS
GLOBAL Short-term incentive • A variable pay-out in cash based on annual performance conditions • Applicable criteria and their weight:
PRESENCE set by the SB ◦ non-financial targets: 30%
• ‘At target’ level: 50% of base salary ◦ organic growth (operating EBITA): 60%
HISTORY • Maximum opportunity: 75% of base salary ◦ M&A growth (acquired EBITA): 10%
• No pay-out in case performance is below pre-determined • Actual pay-out was 93% of the max. opportunity, resulting in a cash pay-out equalling:
SHAREHOLDER minimum thresholds ◦ Piet van der Slikke: 70% of base salary
INFORMATION ◦ Hans Kooijmans: 70% of base salary
• The SB did not use its discretionary powers to deviate from the results calculated on the bases of
ABOUT IMCD
the performance criteria
OUR BUSINESS
GROUPS Long-term incentive • Annual grant of conditional shares that vest after three years • In 2021, the SB decided on unconditional share vesting for the 2018 LTI Plan. The 3-year
• ‘At target’ level: 100% of base salary performance period under this plan included financial years 2018, 2019 and 2020
STRATEGY & • Maximum opportunity: 150% of base salary • Both targets (Cash EPS and relative TSR) were met at or above the maximum pay-out threshold.
BUSINESS • Performance targets and their weight: Hence, shares vested as follows:
◦ cash earnings per share (EPS): 50% ◦ Piet van der Slikke: 16,518 shares
PERFORMANCE ◦ relative total shareholder return (TSR): 50% ◦ Hans Kooijmans: 12,533 shares
representing a realised LTI bonus of 150% of base salary applicable at the time of the
GOVERNANCE conditional grant.
• The SB did not use its discretionary powers to deviate from the results calculated on the bases of
FINANCIAL
the performance criteria
STATEMENTS
2021
Pension • Participation in the general IMCD pension scheme that also applies • For the year 2021, the pensionable salary was capped at EUR 112,189 (in accordance with
to other IMCD employees in the Netherlands. Dutch law).
• No additional contributions are paid above the (statutory) capped • Pension contributions were paid as follows:
pensionable salary. ◦ Piet van der Slikke: EUR 36,391
◦ Hans Kooijmans: EUR 36,680
1 Details of the actual costs pertaining to the remuneration of the members of the Management Board and the Supervisory Board in the financial year 2021 are also included in Note 53 of the financial statements to the Annual
Report 2021.
Although the Company’s strategy is primarily defined the Management Board is linked to and supports The objective of IMCD’s Remuneration Policy for the
by the Management Board, the remuneration policy the company’s strategic priorities. It enables the Supervisory Board is to attract, motivate and retain
is designed in such a way that the Supervisory Supervisory Board to encourage actions focused on highly qualified executives by providing them with a
Board can ensure, by defining the performance long-term value creation and a sustainable contribution balanced and competitive remuneration package that
criteria and (operational and financial) targets under to all stakeholders. is focused on sustainable results and is aligned with
the remuneration policy, that the remuneration of IMCD’s long-term strategy. The policy is guided by the
94
principle that the remuneration of Supervisory Board REMUNERATION PEER GROUP COMPANIES 2021 INDEX to pre-set targets. This applies equally to both CEO and
FOREWORD BY members should consist of fixed compensation only. CFO. The short-term incentive structure is as follows
THE CEO Konklijke Vopak AMX
Signify AMX and applies equally to both CEO and CFO:
2021 Market positioning / peer review Aalberts Industries AMX
HIGHLIGHTS The remuneration of the members of the Management OCI AMX STI VARIABLE PAY STRUCTURE (% OF BASE SALARY)
2021 FINANCIAL Board is set around the median of remuneration levels Koninklijke Boskalis AMX Under performance (below set threshold) 0%
HIGHLIGHTS payable within a peer group of comparable Dutch Corbion AMX At target performance 50%
stock listed companies, relevant to IMCD from a labour SBM Offshore AMX Maximum opportunity (capped) 75%
GLOBAL
PRESENCE market perspective. Arcadis AMX
PostNL AMX Every year, the Supervisory Board selects financial and
HISTORY The Supervisory Board takes into account the internal Koninklijke BAM Groep AMX non-financial targets for the Management Board short-
relativity to the positions below the Management term incentive plan and determines their weight.
SHAREHOLDER
INFORMATION Board as well. All components of the remuneration
packages are reviewed annually. On the evaluative Application of Remuneration Policy STI performance criteria 2021
ABOUT IMCD of the Remuneration Committee, the review of the in 2021 The following table shows the selected criteria, their
OUR BUSINESS
remuneration packages may include an external weight and the performance ranges (minimum, at
GROUPS evaluative against a benchmark composed of a peer Base salary target and maximum pay-out levels) that applied to the
group of companies. Such a study was executed by EY The base salary for the members of the Management 2021 short-term bonus.
STRATEGY &
BUSINESS
at the end of 2017 and repeated in 2021. Board is determined by the Supervisory Board. The
base salaries for the members of the Management CRITERIA PERFORMANCE THRESHOLDS WEIGHT
PERFORMANCE The peer group taken into account for the remuneration Board remained unchanged in 2021, except for an Performance and pay-out is
benchmark exists of AEX and AMX companies in Non-financial
GOVERNANCE adjustment for inflation on the basis of the Dutch assessed by the Supervisory 30%
the Netherlands with a similar revenue size and criteria
Consumer Price Index (CPI) determined by Statistics Board as per individual criteria
FINANCIAL similar market capitalisation. Substantially smaller or Netherlands (Centraal Bureau voor de Statistiek). • 10% ≤ budget - no award
STATEMENTS Organic growth
larger companies, financial institutions and real estate (operating EBITA)
• at target level - 2/3rds 60%
2021 • 5% ≥ budget - full award
companies are excluded from the peer group, as
EUR 2021 2020
well as companies with poor disclosure in respect of • no added EBITA - no award
Piet van der Slikke 668,732 660,345 M&A growth
• target level - 2/3rds 10%
remuneration details. (acquired EBITA)
Hans Kooijmans 520,940 514,407 • 50% ≥ target - full award
In the 2021 review, the peer group consisted out of 16

Short term incentive (STI) For commercial and strategic reasons, the actual
companies, as listed in the following table.
The objective of the Management Board short-term EBITA target numbers are not disclosed for future
incentive plan, is to ensure that the members performance periods.
REMUNERATION PEER GROUP COMPANIES 2021 INDEX of the Management Board prioritise defined short-
Koninklijke DSM AEX term operational objectives, leading to longer term Non-financial STI-criteria
AkzoNobel AEX value creation. For 2021, four non-financial criteria were set relating
Just Eat Takeaway.com AEX to (i) satisfactory integration and performance of (the
Koninklijke KPN AEX STI structure and value acquisitions of) Signet in India, (ii) sustainability, (iii)
ASM International AEX The short-term incentive consists of a (potential) cash diversity and (iv) cyber security. Each target was given
Grandvision AMX bonus payment, depending on achievements in relation an equal weight in the overall bonus component. Below
95
explanation provides more insight in the metrics and In respect of the non-financial data collection process, target was met and indeed exceeded. In a group of 339
FOREWORD BY performance review by the Supervisory Board for the IMCD aligned the reporting process for non-financial senior management positions identified globally, 70
THE CEO
four topics selected for 2021. data with the process and procedures in place for appointments were made during 2021, of which 35 were
2021 financial data reporting. This allows the local companies filled by women (50%). the Supervisory Board awarded
HIGHLIGHTS
(i) Integration and performance of Signet to report both data sets using the same consolidation the maximum award of 0.68 months for this KPI. To
2021 FINANCIAL In 2020, IMCD announced the acquisitions of tool, enabling more frequent data collection (multiple encourage further progress of female leadership, the
HIGHLIGHTS Signet. As this acquisition was of material size and times per year, instead of collection at year end only), Supervisory Board has decided to maintain this metric
strategic importance, the Supervisory Board decided to and increased local awareness of the importance of target as KPI for 2022.
GLOBAL
PRESENCE include sufficient management attention and adequate non-financial information.
integration as a personal KPI for each of the CEO and (iv) Cyber security
HISTORY CFO for 2021. In its 2020 Sustainability report, published in June The Supervisory Board defined satisfactory progress in
2021, IMCD reported an increase of carbon intensity. respect of enhancing cybersecurity at IMCD, as set out
SHAREHOLDER
INFORMATION The Management Board's performance was assessed This was largely due to the fact that the Company in the annual plan and reported to the Audit Committee,
by means of a review of the progress made in has been able to broaden the scope of reporting, as the fourth non-financial KPI for 2021. IMCD's Group
ABOUT IMCD comparison to the integration plan for the acquisition. by including more countries - including IMCD's North Security Officer provided an update on the progress
OUR BUSINESS
During the year, the Management Board provided American operations, where carbon intensity is higher made in June 2021 to the full Supervisory Board and
GROUPS updates on the status of the integration and operational than the group average. further updates and developments were discussed with
performance. Despite continuing travel restrictions, the Audit Committee.
STRATEGY &
BUSINESS
schedules and milestones for integration were met. Although it is positive that the company was able
Management focussed on maintaining and even to broaden its reporting scope, and so increased Based on the information provided, the Supervisory
PERFORMANCE strengthening relationships with key suppliers, which transparency on its performance, progress towards the Board concluded that the actions in the annual plan
was successful and led to strong operational results. set reduction goals was not achieved. Consequently, the have been executed and management attention for
GOVERNANCE
The Supervisory Board is of the opinion that the efforts Supervisory Board decided to deduct one third of the the topic remained high throughout the year. Hence,
FINANCIAL and results justify the maximum award of 0.68 months bonus value for this KPI, and awarded two thrids of the the board decided to award the 'at target' level of the
STATEMENTS for this KPI. at 'at-target' level, leading to 0.3 months of base salary. bonus amount, equalling 0.45 months of base salary,
2021
for this KPI.
(ii) Sustainability metrics For 2022, the Supervisory Board again included
In respect of sustainability, three performance progress on emission reduction as a non-financial KPI In total, the Supervisory Board granted 2.1 months of
indicators were described to measure performance: for the Management Board members and added metric base salary as bonus award for the non-financial KPIs
satisfactory progress towards the set goal of 15% KPIs in respect of IMCD's supply chain management under review.
emission intensity reduction in 2024 (against baseline (roll-out of ESG Standard for IMCD Business Partners
year 2019), further improving the non-financial data measured by % of signatories and audits under IMCD's Financial STI criteria
collection process and, thirdly, increasing the group's supply chain partners) and sustainable procurement (% Both the organic growth and M&A growth criteria
EcoVadis ESG rating to achieve Gold level recognition. of product sourced from ESG rated suppliers). were met above the maximum opportunity level.
Based on this performance, the Supervisory Board
The Supervisory Board was delighted that the EcoVadis (iii) Diversity target granted the maximum, capped, amount for these two
Gold rating was obtained in the Company's 2021 annual In respect of diversity, a metric target was set components, equal to 5.4 and 0.9 months of base
assessment. This represents an acknowledgement to realise at least 40% female appointments in salary, respectively).
of IMCD's efforts to implement robust management vacancies for senior management roles in 2021. The
systems and transparent reporting on ESG matters. Supervisory Board was deligthed to learn that this
96
Hence, the total STI bonus for 2021 granted to each of dividing the value of the maximum opportunity (150% reviewed and updated annually, if necessary. For the
FOREWORD BY the Management Board members, amounted to 93% of of base salary) by the average IMCD share price in the 2021 LTI plan, the following companies are included in
THE CEO
the maximum opportunity (equal to 8.4 months of base month ofDecember of the preceding year. the TSR peer group.
2021 salary). This resulted in a gross cash bonus payment of
HIGHLIGHTS EUR 468.112 to the CEO and EUR 364.658 to the CFO. On an annual basis, the Supervisory Board selects the COMPANY STOCK EXCHANGE
2021 FINANCIAL targets for the Management Board long-term incentive Aalberts Industries NV Euronext Amsterdam
HIGHLIGHTS Long-term incentive (LTI) plan and determines their weight. The long-term Brenntag AG Frankfurt Stock Exchange
The members of the Management Board receive a incentive plan for the Management Board members B&S Group S.A. Amsterdam Stock Exchange
GLOBAL
PRESENCE share based remuneration, for which the conditions does not include an award in the form of (share) Bunzl Plc London Stock Exchange
are defined in the long-term incentive plan for options. Further details on the conditional shares DKSH Holding AG SIX Swiss Exchange
HISTORY the Management Board. The purpose of the LTI awarded are presented below in the section “Actual Electrocomponents Plc London Stock Exchange
plan is to drive long-term performance, support remuneration paid in 2021". Essentra Plc London Stock Exchange
SHAREHOLDER
INFORMATION retention and to further strengthen the alignment with Ferguson Plc London Stock Exchange
shareholders’ interests. LTI performance criteria for 2021 Travis Perkins Plc London Stock Exchange
ABOUT IMCD The following table shows the selected criteria and their Rexel SA Euronext Paris
OUR BUSINESS
LTI structure and value weight, together with the performance ranges and pay- Univar Inc Nasdaq
GROUPS The LTI plan is structured in a way that contributes out levels that were set for the 2021 LTI plan.
to the simplicity and transparency of IMCD’s Pensions and other benefits
STRATEGY &
BUSINESS
overall remuneration policy. Under the LTI plan the CRITERIA PERFORMANCE THRESHOLDS WEIGHT In 2021, the Management Board members participated
Management Board members are eligible to annual < 10% below target - 0% in the "IMCD pension scheme", a collective defined
PERFORMANCE awards of conditional performance shares, that vest 1 ≥ 5-10% below target - 50% benefit plan based on average pay, insured by AEGON
Cash EPS growth 50%
after a three-year performance period. Vesting depends ≤ > 5% range of target - 100% Levensverzekering N.V. In accordance with Dutch
GOVERNANCE ≥ 5% above target - 150%
on achievements in relation to pre-set targets and pension legislation, the pensionable salary was capped.
is subject to continuous employment. An additional • Fourth quartile - 0%
FINANCIAL
Relative TSR in • Third quartile - 50%
The applicable cap for 2021 was EUR 112,189.
STATEMENTS holding period of two years is applicable to vested 50%
2021 peer group 2 • Second quartile - 100%
shares so that shared are held for a minimum period • First quartile - 150% As in previous years, the pension premiums for the
of 5 years from the grant date. 1 participation of the Management Board members due
EPS: Earnings per share
2 TSR: Total Shareholder Return in 2021 were paid by the Company. Pension rights are
The long-term incentive structure applies equally to accrued for in the financial statements in accordance
both the CEO and the CFO as follows: with IFRS / IAS 19.
The performance parameters for the 2021 LTI Plan
are measured over a three year performance period
LTI VARIABLE PAY STRUCTURE (% OF BASE SALARY) (financial years 2021-2023). For commercial and Pursuant to their service agreements, the Management
Under performance (below set threshold) 0% strategic reasons, the actual EPS target number is Board members receive customary fringe benefits
At target performance 100% not disclosed. including a fixed expense allowance, fixed contribution
Maximum opportunity (capped) 150% to healthcare insurance and a company car.
TSR peer group
The conditional shares are awarded at the beginning of The peer group used for the calculation of the outcome
the first year of the performance period (usually in the of the TSR component under the 2021 LTI plan,consists
first quarter). The number of shares is calculated by of 11 companies, plus IMCD. The TSR peer group is
97
Actual remuneration paid in 2021

FOREWORD BY
THE CEO
2021 REMUNERATION COSTS MB MEMBERS FIXED RENUMERATION VARIABLE REMUNERATION

HIGHLIGHTS
(EUR 1,000) YEAR SALARY PENSION OTHER STI BONUS SHARE TOTAL PROPORTION OF FIXED AND
2021 FINANCIAL BASED PAYMENT VARIABLE REMUNERATION 1
HIGHLIGHTS
Piet van der Slikke, CEO 2021 669 36 48 468 835 2,056 37% / 63%
GLOBAL
PRESENCE 2020 660 36 50 454 986 2,186 34% / 66%
Hans Kooijmans, CFO 2021 521 37 49 365 650 1,622 37% / 63%
HISTORY 2020 514 33 51 354 756 1,708 35% / 65%
Total 2021 1,190 73 97 833 1,485 3,678 37% / 63%
SHAREHOLDER
INFORMATION 2020 1,174 69 101 808 1,742 3,894 35% / 65%
1 The relative proportion of fixed / variable remuneration is calculated

ABOUT IMCD
by dividing the sum of the fixed / variable components by the amount 5 YEAR COMPARISON OF MB AND EMPLOYEE REMUNERATION AND COMPANY PERFORMANCE
OUR BUSINESS
of total remuneration, multiplied by 100. 2021 vs 2020 vs 2019 vs 2018 vs 2017 vs
GROUPS
CAGR
2020 2019 2018 2017 2016
STRATEGY & MB remuneration
BUSINESS
Total remuneration in 2021 Piet van der Slikke CEO 6% 45% 1 (7%) 19% 31% 2 17%
PERFORMANCE The table above summarises the costs for the Hans Kooijmans, CFO 7% 46% 1 (5%) 21% 32% 2 19%
remuneration of the Management Board members IMCD Performance indicators
GOVERNANCE charged to IMCD and its group companies in the Gross profit 29% 8% 12% 25% 12% 17%
financial year 2021. Cash EPS (weighted) 44% 13% 13% 23% 2% 18%
FINANCIAL
STATEMENTS Net Result (before amortisation / non-recurring items) 50% 14% 12% 27% 7% 21%
2021 5-year comparison with Number of customers 12% 2% 14% 16% 9% 10%
company performance Average number of employees 13% 9% 18% 18% 14% 14%
The tabel to the right presents the annual change Employee remuneration 3
of Management Board remuneration, company Average wages and salaries IMCD employees 4% 0.4% 4 (3%) 4 10% 4 1% 2%
performance and the average remuneration of IMCD’s 1 Reported increase in 2020 compared to 2019 is a combination of inflation adjustment base salary (+1% of total), higher STI (+10% of total) and
employees in a comparative manner. revised LTIP conditions (+34% of total).
2 At the end of the performance period 2015-2017, shares vested for the first time under the Management Board’s LTI programme. Hence, the value of
The remuneration of a Management Board member the vested shares is included for the first time in the year 2017, which explains the substantial increase in comparison to the year 2016.
used for this comparison includes the fixed 3 The average total compensation for IMCD employees was calculated with the numbers as reported in note 10 (Personnel expenses) in the Annual
remuneration elements paid in each of the years 2016 Report 2021 (wages and salaries / total average number of employees, excluding the members of the Management Board).
up to and including 2021, as reported on IFRS basis in 4 Acquisitions and recruitment activities in different regions, including emerging markets, have a significant effect on the annual fluctuation of
the annual report. The STI pay-out is included in the the average total compensation for IMCD employees. In 2018, large acquisitions in the US and EMEA contributed to an increase of the average
year that also comprises the performance period (year employee compensation, whilst in 2019 and 2020, an increase of the number of employees in the APAC region and Latin America in the global mix
1). The value of vested LTI shares is included in the year (through acquisitions in, amongst other, South-Korea, India, Colombia and Singapore) had a downward effect on the average total compensation of
in which the performance period ended (year 3). IMCD employees.
98
Movements in share positions (five year overview)

FOREWORD BY
THE CEO MAIN CONDITIONS OF LTI PLANS INFORMATION REGARDING THE REPORTED FINANCIAL YEAR
plan year 3 year Date of (scheduled) End of holding Gross # of Gross # of shares Shares subject to
2021 performance conditional award Vesting date 2 period 3 conditional shares vested 5 a holding period
HIGHLIGHTS period 1 awarded 4
Piet van der Slikke, CEO 2021 2021-2023 25 Feb 2021 Q1 2024 Q1 2026 9,698 - 9,698
2021 FINANCIAL
HIGHLIGHTS 2020 2020-2022 26 Feb 2020 Q1 2023 Q1 2025 12,694 - 12,694
2019 2019-2021 28 Feb 2019 24 Feb 2022 28 Feb 2024 16,971 16,971 9,017
GLOBAL
2018 2018-2020 9 May 2018 25 Feb 2021 9 May 2023 16,518 16,518 8,776
PRESENCE
2017 2017-2019 29 Mar 2017 26 Feb 2020 29 Mar 2022 9,768 9,768 4,933
HISTORY Total 43,257 45,118
SHAREHOLDER Hans Kooijmans, CFO 2021 2021-2023 25 Feb 2021 Q1 2024 Q1 2026 7,554 - 7,554
INFORMATION
2020 2020-2022 26 Feb 2020 Q1 2023 Q1 2025 9,889 - 9,889
ABOUT IMCD 2019 2019-2021 28 Feb 2019 24 Feb 2022 28 Feb 2024 13,220 13,220 7,024
2018 2018-2020 9 May 2018 25 Feb 2021 9 May 2023 12,533 12,533 6,659
OUR BUSINESS
GROUPS
2017 2017-2019 29 Mar 2017 26 Feb 2020 29 Mar 2022 7,182 7,182 3,627
Total 32,935 34,753
STRATEGY & 1 The LTI performance period spans the period from 1 January in the first performance year up to and including 31 December of the third year thereafter.
BUSINESS
2 The vesting date under any LTI plan is equal to the date of the Supervisory Board’s decision that establishes the number of performance shares that make up the unconditional award. This decision is usually taken during the first or
PERFORMANCE second Supervisory Board meeting in the year that follows the expiration of the performance period.
3 Management Board members are allowed to sell shares that vested after such shares have been retained for a five-year period from the date of the conditional award.
GOVERNANCE 4 The number of shares provided in this column represents the maximum opportunity.
5 The number of shares provided in this column represents the gross number of shares vested under the respective LTI plan for the listed year, before deduction of personal income taxes.
FINANCIAL
STATEMENTS
2021
Movements in share positions performance period 2021-2023 and determine the met at the maximum level (with IMCD ranking in the
The table above depicts the movements in the number of conditional shares that will vest. first quartile).
Management Board’s share position due to the
share-based remuneration to the Management Board Vesting 2018 long-term incentive Hence, 16,518 shares vested for the CEO and 12,533
members in the past five years. At the beginning of 2021, conditional performance shares vested for the CFO, having a corresponding value
shares vested under the 2018 LTI plan. The three year of 150% of their applicable annual base salary at the
2021 long-term incentive award performance period for this plan ended with the close time of granting in 2018.
Under the 2021 LTI Plan the members of the of the calendar year 2020. The ‘at-target’ opportunity
Managemetn Board were granted 9,698 and 7,554 equalled 100% of the Management Board members’ Other remuneration information
conditional performance shares respectively, as set annual base salary. The maximum opportunity was
out in the table above. This number represents the capped at 150%. Compliance with the remuneration policy
maximum opportunity for each member. In 2021, the application of the remuneration policy for
The Cash EPS target was met above the level of the Management Board was consistent with the policies
At the beginning of 2024, the Supervisory Board will the maximum pay-out threshold. The TSR target was included therein. No deviation or derogation took place.
review the outcome of performance in the three year The Supervisory Board did not use discretion to deviate
99
from the mathematical outcomes based on the pre-set revised calculation method is applied in the table below Directive. The 2020 remuneration report was received
FOREWORD BY metrics and targets for the 2021 compensation. for both 2020 and 2021. well, with 94.09% of votes cast in favour of approval
THE CEO
(2020: 94.46%).
2021 Long-term value creation YEAR TOTAL MB AVERAGE TOTAL PAY
HIGHLIGHTS Both the structure for the Management Board’s Based on this high approval rate, no changes have been
MEMBER COMPENSATION RATIO
remuneration as well as the targets set by the REMUNERATION (EUR) 2 made to the format of this report for 2021, other than
2021 FINANCIAL
(EUR 1,000) 1
HIGHLIGHTS Supervisory Board for the 2021 remuneration that the information has now been integrated in the
contributed to a focus on long-term value creation. A CEO 2021 2,056 82,680 24.9 Annual Report. An effort was made to provide more
GLOBAL 2020 2,186 80,214 27.3
PRESENCE substantial part of the 2021 remuneration was made up insight in and include clear metrics for the non-financial
of variable components, based on performance (63% CFO 2021 1,622 82,680 19.6 bonus criteria.
HISTORY for both the CEO and CFO, as shown in the table 2020 1,708 80,214 21.3
"Remuneration costs of individual MB members’" on 1 Total MB member remuneration set out in this table is different from
SHAREHOLDER
INFORMATION page 98). 2020. For transparency and clarity, and in line with the guidance Remuneration of the
provided by the Monitoring Committee for the Dutch Corporate Supervisory Board
ABOUT IMCD 60% of the 2021 STI bonus was made dependent on Governance Code, the total remuneration, including all fixed and
OUR BUSINESS
organic growth, ensuring a long-term mindset focussed variable elements as reported in note 53 of the financial statements Compliance with the remuneration policy
GROUPS on sustainable growth. The non-financial KPI’s set for to the Annual Report 2021 is used for the calculation. In 2021, the application of the remuneration policy for
the 2021 STI bonus were also geared to ensure progress 2 Based on the guidance provided by the Monitoring Committee the Supervisory Board was consistent with the policies
STRATEGY &
BUSINESS
on topics that benefit the Company’s organisation in for the Dutch Corporate Governance Code, the average employee included therein. No deviation or derogation took place.
the long-term, with, in 2021, a focus on the integration remuneration is calculated with the numbers as reported in note
PERFORMANCE and performance of Signet in India, metric targets 10 (Personnel Expenses), as follows: total employee expenses/total The remuneration of the members of the Supervisory
for sustainability and diversity, and strengthening of average FTE. Board is determined by the General Meeting. It is not
GOVERNANCE
IMCD's ICT systems and environment to counter made dependent on the Company’s results and none of
FINANCIAL cybersecurity threats. Although the calculation method for the pay ratio the members of the Supervisory Board receive shares,
STATEMENTS changed, the representative reference group (all options for shares or similar rights to acquire shares as
2021
Finally, the 2021 LTI programme uses a 3 year period employees) remained the same. IMCD monitors the part of their remuneration.
and financial targets that contribute to a focus on long development of the internal pay ratio over multiple
term value growth for IMCD’s shareholders. years and, to the extent possible, compares the The General Meeting of Shareholders approved a
outcome with the published pay ratio's of industry revision of the annual fixed fees for the Supervisory
Internal pay ratio peers, as well as other companies included in the AEX Board remuneration in 2020. This was the first revision
As per the guidance issued by the monitoring and AMX indices. Compared to these companies, the since IMCD’s listing in 2014. No further revisions took
committee for the Dutch Corporate Governance Code, internal pay ratio of IMCD is at the lower end of the place in 2021. The fees as listed in the following table
the pay-ratio used by IMCD reflects the annual spectrum. Whilst the Supervisory board has not set a and applied throughout the year.
remuneration of all IMCD employees worldwide relative specific range for the pay ratio, it feels that the current
to the total remuneration for the CEO and CFO, pay ratio is reasonable.
including all elements (fixed and variable) as included
in the financial statements on an IFRS basis. This Information on shareholder advisory vote
is a deviation from the calculation method used in At the 2021 AGM, the 2020 remuneration report was
previous years. For a meaningful comparison, the subject to an advisory vote for the second time since
the implementation of the Revised Shareholders’ Rights
100
Supervisory Board fees Views of Management Board members Notice period

FOREWORD BY The chair of the Remuneration Committee discusses The service agreements with the members of the
THE CEO ANNUAL FEE
FUNCTION
(EUR) the Management Board members’ own views on their Management Board can be terminated by both parties,
2021 Supervisory Board - chair 70,000 remuneration package annually and/or in case of any subject to a notice period of 6 months.
HIGHLIGHTS proposed changes to the remuneration packages.
Supervisory Board - member 55,000
2021 FINANCIAL Audit Committee - chair 15,000 No loans
HIGHLIGHTS Audit Committee - member 10,000 Term of appointment IMCD nor any of its group companies has provided any
Remuneration Committee - chair 12,500 Management Board members are appointed for a term loans, advances or guarantees for the benefit of the
GLOBAL
PRESENCE Remuneration Committee - member 7,500 of four years. The (total) term of employment of members of the Management Board and the members
Management Board members is not limited in any way. of the Supervisory Board.
HISTORY The costs for the remuneration of the Supervisory The current term of both Management Board members
Board members charged to IMCD in the financial year expires in 2022. The Supervisory Board nominated both
SHAREHOLDER
INFORMATION 2021 are provided in the table below. members of the Management Board for reappointment, Looking ahead 2022
which nomination will beput to a vote during the
ABOUT IMCD 2022 AGM. In line with the best practice principles of the Dutch
Remuneration costs for SB members
OUR BUSINESS EUR 1,000 2021 2020 2019 Corporate Governance Code, the Supervisory Board
GROUPS Janus Smalbraak 75 54 45 Revision and claw back of variable pay has decided to set up a separate Nomination and
Arjan Kaaks 70 60 50 The Supervisory Board may adjust the amount or value Appointment committee, effective as of 2022. The
STRATEGY &
BUSINESS Stephan Nanninga 68 58 48 of an STI or LTI awarded to a Management Board General Meeting of Shareholders will be asked to
Valerie Diele-Braun 63 30 - member to a suitable level, if payment or satisfaction of approve a revision of the (fixed) fee table to include
PERFORMANCE
Amy Hebert 65 31 - that award would be unacceptable under the standards the fee amounts for the Chair and members of this
Michel Plantevin 28 1 68 65 of reasonableness and fairness. additional committee. More information will be provided
GOVERNANCE
Julia van Nauta Lemke - 24 47 in the explanatory notes to the agenda for the 2022
FINANCIAL Total SB remuneration 368 325 255 There is also a claw-back provision in place which AGM. No other policy amendments are foreseen.
STATEMENTS may be applied to payments made to members of the
1 This fee amount covers the period up to the retirement date,
2021
Management Board (in cash, in kind or in the form In September 2021, Azelis Group N.V. was listed on
22 June 2021.
of securities) under an STI or LTI award. In 2021, no the Euronext stock exchange is Brussels. In its annual
adjustment or claw-back occurred. review of the TSR peer group, the Remuneration
Committee considered includng Azelis Group N.V. in the
Other policy information Severance compensation TSR peer group as of 2022, instead of Travis Perkin Plc.
In accordance with Dutch law and the Code, the service
Scenario analysis
agreements with the Management Board members Based on the outcome of the compensation benchmark
Scenarios concerning the possible outcomes of
contain provisions related to severance arrangements exercise that was conducted by EY in 2021, the
the variable components and the impact on the
with a maximum payment of the gross fixed annual Remuneration Committee has proposed to the
remuneration of the Management Board members are
salary, subject to a fairness review. Supervisory Supervisory Board to increase the Management Board
analysed annually and taken into consideration by
Board members are (re-)appointed in accordance with members' base salaries with 5%, effective as of the
the Remuneration Committee and Supervisory Board.
applicable legal and regulatory requirements. Their month of reappointment.
The scenarios reviewed include minimum (0%), at
engagement does not include any severance payment,
target (100%) and maximum (150%) variable pay-
claw-back or change in control provisions.
out achievement.
101
FOREWORD BY
THE CEO
Corporate governance
nomination by an absolute majority of votes cast that
2021 represent at least one-third of the issued share capital.
HIGHLIGHTS IMCD N.V. is a public company with limited liability (naamloze vennootschap)
2021 FINANCIAL under Dutch law with a two-tier board structure. IMCD is managed by a Management The Management Board represents the company and
HIGHLIGHTS acts in accordance with the Articles of Association
Board under the supervision of a Supervisory Board. The Management Board and the
and the Management Board Rules (available on
GLOBAL Supervisory Board are accountable to the general meeting of IMCD’s shareholders the company’s website), which provide a detailed
PRESENCE
(General Meeting). The Management Board has chosen to work with an Executive description of the Management Board’s responsibilities
HISTORY
Committee. The role, duties and composition of the Executive Committee are described and functioning. Certain important resolutions of
the Management Board identified in the Articles of
SHAREHOLDER
INFORMATION
in this section. Association require the approval of the Supervisory
Board and/or the General Meeting.
ABOUT IMCD
OUR BUSINESS
Governance structure IMCD’s governance structure is subject to Dutch The Management Board has been designated, most
GROUPS law and regulated by IMCD's Articles of Association recently at the 2021 AGM, as the corporate body
The Dutch corporate governance code (the "Code") (available on the Company’s website). The provisions of authorised to issue shares and/or grant rights to
STRATEGY & provides principles and guidance for the governance the Dutch Civil Code (DCC) that are commonly referred
BUSINESS acquire shares up to 10% of the total number of issued
of Dutch listed companies, and is aimed at ensuring to as the ‘large company regime’ (structuurregime) shares, and to restrict or exclude pre-emptive rights
PERFORMANCE effective cooperation and good governance. IMCD do not apply to IMCD. pertaining to such issue of shares, subject to the prior
fully endorses the objective of the Code to foster approval of the Supervisory Board. By virtue of its
GOVERNANCE
good governance by encouraging fair and transparent authorisation by the General Meeting, the Management
FINANCIAL dealings on the part of management, Supervisory Management Board Board is also authorised to purchase shares in the
STATEMENTS Board members and shareholders. In addition, IMCD company, up to a maximum of 10% of the issued shares
2021
is committed to a governance structure that best and The Management Board manages the day-to-day and subject to the prior approval of the Supervisory
most effectively supports its business, that meets the operations of IMCD and is responsible for designing Board. These instructions and authorisations are given
needs of its stakeholders and that complies with all and achieving the company’s objectives and strategy. for a period of 18 months and renewal is requested
relevant rules and regulations. The Management Board, whose two members hold annually at the AGM. No authorisation from the General
joint responsibility, is supported by the Executive Meeting is required for the acquisition of fully paid up
IMCD’s corporate governance structure is designed in Committee, which is responsible for, among other shares for the purpose of transferring these shares
accordance with the Code and was approved by the things, regional operations and certain general group- to employees of the company or of an IMCD group
General Meeting on 26 June 2014. After the revision level management activities. company under any employee share plan.
of the Code in December 2016, and the revised Code
applying to IMCD for the first full year in 2017. The The Management Board members are appointed (and Conflicts of interest
key aspects of IMCD's corporate governance structure may be reappointed) for a term of up to four years All legal transactions where a conflict of interest
and compliance with the revised Code were again by the General Meeting in accordance with a binding exists or could arise with regards to members of the
presented to and discussed at the 2018 Annual General nomination by the Supervisory Board. The General Management Board must be handled on arm’s-length
Meeting (AGM). Meeting can overrule the binding character of the terms and must be approved by the Supervisory Board.
102
Each Management Board member or Supervisory

FOREWORD BY Board member is required to immediately disclose any
THE CEO
potential direct or indirect personal conflict of interest
2021 to the Chair of the Supervisory Board, providing all
HIGHLIGHTS relevant information.
2021 FINANCIAL
HIGHLIGHTS If the Chair of the Supervisory Board determines that
there is a conflict of interest, the member of the
GLOBAL
PRESENCE Management Board or the Supervisory Board with
the conflict of interest may not take part in any
HISTORY discussion or decision-making that involves a subject
or transaction relating to the conflict of interest.In
SHAREHOLDER
INFORMATION 2021, no transactions were reported or identified
involving actual or potential conflicts of interests
ABOUT IMCD involving a member of the Management Board or
OUR BUSINESS
Supervisory Board, nor were there any transactions
GROUPS with shareholders owning more than 10% of the shares.
STRATEGY &
BUSINESS
Remuneration of the Management Board
With its remuneration policy for the Management
PERFORMANCE Board, IMCD aims to attract, motivate and retain
highly qualified executives by providing them with a
GOVERNANCE
balanced and competitive remuneration package that
FINANCIAL is focused on sustainable results and is aligned with
STATEMENTS IMCD’s long-term strategy. In line with the policy,
2021
the remuneration packages of the Management Board
members consist of fixed and variable components, The revised remuneration policy for the Management Executive Committee
including a long-term incentive plan (for the annual Board was adopted by the General Meeting on 30 June
award of conditional performance shares) approved by 2020, with 94.85% of votes cast in favour. No The structure in which the Management Board is
the General Meeting. The remuneration of the individual further changes took place in 2021. The remuneration supported by an Executive Committee was formalised
members of the Management Board (including the policy for the Management Board is available on the in 2011. At the time, this structure was chosen as a
awarding of shares) is determined by the Supervisory company's website. means of ensuring an efficient flow of - commercial and
Board, with due observance of the remuneration policy strategic - business information to the Management
for the Management Board. In compliance with the Code, the service agreements Board, while allowing the Management Board to remain
with Management Board members contain provisions small. In addition, the Executive Committee serves as
In 2020, the remuneration policy for the Management on severance arrangements, claw-back and public a sounding board to the Management Board, making
Board was reviewed to bring the policy in line with offering consequences. Annually, the Supervisory Board recommendations and providing guidance and support
new legal requirements arising from the incorporation reports on the implementation of the remuneration on strategy implementation. The non-Management
of the Revised Shareholders' Rights Directive (EU policy for the Management Board in its remuneration Board members of the Executive Committee are
directive 2017/828 of 17 May 2017) into Dutch law. report, which is published on the company’s website. appointed by the Management Board.
103
The responsibilities of the Executive Committee include Supervisory Board Supervisory Board committees
group performance, realisation of operational and In 2021, the Supervisory Board was supported by
financial objectives, people strategy and identification The Supervisory Board monitors and supervises the two committees:
and management of risks connected to the business activities of the Management Board and the general
activities. The non-Management Board members course of business within IMCD. It also supports the • an Audit Committee, responsible for supervising the
of the Executive Committee may take on certain Management Board with advice. In performing their quality and integrity of the IMCD’s financial reporting
management activities at group level in addition to duties, the Supervisory Board members are guided by and internal risk management and control systems,
their specific Managing Director or Business Group the interests of the company and its business, taking including legal and ethical compliance, and advising
Director roles and support the Management Board in into account the relevant interests of all stakeholders. the Supervisory Board and Management Board in
the implementation of the company's group policies The members of the Supervisory Board are jointly relation to these matters; and
throughout the organisation. responsible for the functioning of the Supervisory • a Remuneration Committee, responsible for advising
Board and assess its performance internally on a the Supervisory Board on the remuneration of the
During 2021, IMCD’s Executive Committee was regular basis. Management Board.
composed of six members: the two members of the
Management Board and four managing or business The Supervisory Board must consist of at least five Both committees are composed of at least two
group directors. members. The composition of the Supervisory Board Supervisory Board members.
is such that the combined experience, expertise and
The Management Board remains accountable for the independence of its members enables the Supervisory The Supervisory Board acts in accordance with the
actions and decisions of the Executive Committee and Board to best carry out the variety of the Supervisory Articles of Association and the Supervisory Board
has ultimate responsibility for the company’s external Board’s responsibilities. rules, which include the Supervisory Board profile,
reporting and reporting to the company’s shareholders. a resignation rota and the rules governing the
The Supervisory Board members are appointed by Supervisory Board committees. The Supervisory Board
The Supervisory Board engages with the members of the General Meeting in accordance with a binding rules are available on the company's website.
the Executive Committee during its Supervisory Board nomination by the Supervisory Board. The General
meetings and/or work visits, as well as in informal Meeting may overrule the binding character of the Remuneration of the Supervisory Board
contact outside of such meetings. In December 2021, nomination by an absolute majority of the votes The General Meeting determines the remuneration of
all members of the Executive Committee were present cast, representing at least one-third of the issued the members of the Supervisory Board. To comply with
during the (virtual) Supervisory Board meeting, where, share capital. Members of the Supervisory Board the Revised Shareholders' Rights Directive, a written
amongst other things, budget, strategy and risk are appointed for a term of four years and may be remuneration policy for the Supervisory Board was
management were discussed. reappointed for a second term of four years. Thereafter, adopted by the General Meeting in 30 June 2020, with
two additional extensions are possible of two years 99.94% of votes cast in favour.
each, bringing the total period of appointment to a
maximum of 12 years. With the remuneration policy for the Supervisory Board,
the company aims to attract, motivate and retain highly
skilled individuals with the right balance of qualities,
capabilities, profile and experience, as may be needed
from time to time to oversee the company’s strategy,
strategy implementation and performance, as well as
to act as advisors to the members of the Management
104
Board in support of their focus on long-term growth and experience, as well as the (expected) team dynamics received the request no later than on the 60th day prior
FOREWORD BY sustainable success of the company and its business. have priority in the selection and nomination process. to the date of the General Meeting.
THE CEO
2021 The guiding principle remained that remuneration of The diversity policy is implemented organically. For Each shareholder may attend General Meetings,
HIGHLIGHTS the Supervisory Board may not be made dependent on the Supervisory Board and Executive Committee, the address the General Meeting and exercise voting rights
2021 FINANCIAL the company’s results. No member of the Supervisory diversity policy will be taken into account in the pro rata to its shareholding, either in person or by
HIGHLIGHTS Board shall receive shares, options for shares or similar selection and nomination process for each future proxy. Shareholders may exercise these rights if they
rights to acquire shares as part of their remuneration. vacancy. As to the composition of the Management are the holders of shares on the record date, which is
GLOBAL
PRESENCE Board, the diversity policy will be taken into account the 28th day before the date of the General Meeting,
The remuneration policy for the Supervisory Board is if and when the current members of the Management andprovided they or their proxy have notified the
HISTORY available on the company's website. Board are to be succeeded. company of their intention to attend the General
Meeting. In 2020, in a response to the COVID-19
SHAREHOLDER
INFORMATION In 2021, no vacancies occurred in the Supervisory pandemic, emergency legislation came into force in the
Diversity on the Supervisory Board, Management Board or Executive Committee. Netherlands, making it possible for companies to hold
ABOUT IMCD
Board, Management Board and General Meetings without the physical attendance of
OUR BUSINESS Executive Committee participants. This emergency legislation was extended
GROUPS General Meeting of Shareholders several times, also during 2021, and is still in force at
IMCD recognises the importance of diversity on its the date of this Annual Report.
STRATEGY &
BUSINESS
Supervisory Board, Management Board and Executive Shareholders of IMCD may exercise their rights
Committee, and believes that the company's business through annual and extraordinary general meetings Subject to certain exceptions set forth by law or
PERFORMANCE activities benefit from a wide range of skills and a of shareholders (the General Meeting). The Annual in the Articles of Association, resolutions of the
variety of backgrounds and nationalities. A diverse General Meeting (AGM) is held each year before General Meeting are passed by an absolute majority of
GOVERNANCE
composition contributes to a well-balanced decision- July. Due to the continuing impact of the COVID-19 votes cast.
FINANCIAL making process and the proper functioning of the board pandemic, the 2021 AGM was postponed to 22 June to
STATEMENTS or committee. The Supervisory Board's diversity policy allow it take place in the form of a physical meeting. The powers of the General Meeting are specified in the
2021
is available on the company's website. Articles of Association and include adoption of IMCD’s
Extraordinary General Meetings (EGM) are held as often financial statements, appointment and dismissal of
The diversity policy is aimed at having a diverse as the Management Board and/or the Supervisory Supervisory Board and Management Board members
composition of members on the Supervisory Board, Board deem desirable. In addition, one or more and the allocation of profit, insofar as it is at the
the Management Board and the Executive Committee shareholders, who solely or jointly represent at least disposal of the General Meeting. Resolutions to amend
in order to ensure that the knowledge, skills and one-tenth of the issued capital, may request that the Articles of Association or to dissolve the company
experience present are complementary, enabling each a General Meeting be convened. Notice of General may only be taken by the General Meeting upon a
member to make a valuable contribution in carrying Meetings is given no later than 42 days before the day proposal of the Management Board with the approval
out the various responsibilities of the board or of the meeting through the publication of a convocation of the Supervisory Board.
committee. When considering vacancies, achieving notice on the website of IMCD.
and/or maintaining an appropriate balance in gender, Shares
age and geographic background or nationality are Shareholders representing, either solely or jointly with The authorised capital of the company comprises a
important aspects that will be taken into account other shareholders, at least 3% of the issued share single class of registered shares. All shares are traded
as well. However, complementary expertise and capital in IMCD may request the company to put an via the giro-based securities transfer system and are
item on the agenda provided that the company has registered under the name and address of Euroclear. All
105
issued shares are fully paid up and each share confers

FOREWORD BY the right to cast a single vote in the General Meeting.
THE CEO
2021 Shares held by IMCD are non-voting shares and do not

HIGHLIGHTS count when calculating the amount to be distributed
2021 FINANCIAL on shares or the attendance at a General Meeting.
HIGHLIGHTS IMCD purchases shares to hedge its obligations arising
from conditionally awarded performance shares under
GLOBAL
PRESENCE IMCD’s long-term incentive plan.
HISTORY Anti-takeover mechanisms

IMCD respects the one-share/one-vote principle and
SHAREHOLDER
INFORMATION did not have any anti-takeover or control mechanisms
in place in 2021.
ABOUT IMCD
OUR BUSINESS
GROUPS Rules regarding
inside information
STRATEGY &
BUSINESS
IMCD has implemented measures to comply with the
PERFORMANCE provisions of the Financial Markets Supervision Act
and the EU Market Abuse Regulation intended to
GOVERNANCE
prevent market abuse, such as insider trading, tipping
FINANCIAL and market manipulation. In addition, the company
STATEMENTS maintains rules regarding the reporting and regulation
2021
of transactions in IMCD shares or other IMCD financial
instruments. The IMCD insider trading rules are kept meets periodically throughout the year and reports to Management Board into account. The General Meeting
up to date to reflect legislative developments and the Audit Committee. re-appointed Deloitte Accountants B.V. As external
apply to members of the Management Board, the auditor of the company for the financial year 2021.
Executive Committee, the Supervisory Board and other
designated persons within IMCD. The IMCD insider External auditor In principle, the external auditor attends in principle,
trading rules are available on the Company’s website. all meetings of the Audit Committee. The findings of
Under Dutch law, the external auditor of the company is the external auditor, the audit approach and the risk
IMCD has established a Disclosure Committee to appointed by the General Meeting. In accordance with analysis are also discussed at these meetings. The
manage the disclosure of inside information and the Dutch Corporate Governance Code and Regulation external auditor attends the meeting of the Supervisory
to ensure compliance with regulatory requirements (EU) 537/2014, the Supervisory Board selects and Board in which the report of the external auditor on
regarding all disclosures and filings to be made to the nominates an external auditor for appointment, upon the audit of the financial accounts is discussed, and in
Dutch Authority for the Financial Markets, Euronext advice from the Audit Committee. The Supervisory which the annual accounts are approved.
Amsterdam N.V. and any other relevant stock exchange Board and the Audit Committee assess the functioning
or supervisory authority. The Disclosure Committee of the external auditor, taking the observations of the
106
Auditor independence terms for new Supervisory Board appointments

FOREWORD BY The Audit Committee evaluates at least annually the and reappointments.
THE CEO
external auditor's independence. The lead auditor of the
2021 IMCD account is changed at least every five years. Such Diversity target
HIGHLIGHTS a change took place with effect from the financial year The Supervisory Board does not strictly follow the
2021 FINANCIAL 2021. Furthermore, Dutch law requires a mandatory recommendation of best practice provision 2.1.5 of
HIGHLIGHTS rotation of the external audit firm after it has performed the Code to formulate an explicit target on diversity
the statutory audits of the company for a period of 10 in terms of gender or age. The overriding principle is
GLOBAL
PRESENCE consecutive years. that the Supervisory Board has a diverse composition
of members who can make valuable contributions in
HISTORY Prohibition on non-audit services terms of experience and knowledge of the speciality
The Audit Committee reviews the proposed audit scope, chemicals distribution industry in the regions in which
SHAREHOLDER
INFORMATION approach and fees as well as services that the external the Company is active, or else possess other relevant
auditor provides to the company. Dutch law requires business knowledge. The Supervisory Board is pleased
ABOUT IMCD the separation of audit and non-audit services, meaning with the diversification, in terms of gender and age,
OUR BUSINESS
that the company's external auditor is not allowed to achieved through the appointments of recent years,
GROUPS provide prohibited non-audit services. and will continue to pursue ensuring a diversified
composition with future appointments.
STRATEGY &
BUSINESS
Accountability Dutch Corporate Nomination and Appointment Committee
PERFORMANCE Governance Code In deviation of best practice provision 2.3.2 of the
Code and as agreed by the General Meeting the
GOVERNANCE
In 2021 IMCD complied with the principles and best Company did not have a Selection and Appointment
FINANCIAL practices of the Code with the exception of the Committee in the past few years. With the growth of the
STATEMENTS following deviations. organisation and succession planning featuring more
2021
prominently on the Supervisory Board's agenda in 2021,
Retirement rota the decision was made to set up a separate committee
As a consequence of the initial four-year term to support the Supervisory Board on nomination and
appointment of all Supervisory Board members at appointment matters.
IMCD's listing in 2014, the Supervisory Board’s original
retirement rota provided for the same reappointment The Corporate Governance Declaration is available at
and retirement dates for all Supervisory Board www.imcdgroup.com/investor-relations.
members. With resignations and further appointments,
over the years the number of retirements /
reappointments occurring at the same time has been
reduced; however, due to appointments that took place
in 2020, three Supervisory Board members will be up
for retirement or reappointment in 2024. Over time,
the company aims to once more reduce the number
of simultaneous resignations by means of adjusted
107
FOREWORD BY
THE CEO
Risk factors and risk management
2021 Risk appetite
HIGHLIGHTS In achieving its objectives, IMCD faces risks and uncertainties, including those faced
2021 FINANCIAL due to macroeconomic conditions, regional and local market developments and internal IMCD's risk appetite varies per risk category and per
HIGHLIGHTS type of risk. The risk appetite per risk category is
factors. IMCD strives to identify and control those risks and uncertainties as early as
as follows:
GLOBAL possible. Risk management is an essential element of IMCD's corporate governance and
PRESENCE
is embedded in the company's business processes.
HISTORY STRATEGIC Moderate
SHAREHOLDER
INFORMATION Although the company recognises the risks and IMCD distinguishes the following risk categories in its
OPERATIONAL Low
uncertainties associated with its business activities, risks management framework:
ABOUT IMCD
IMCD believes that the broad diversity of its business in
OUR BUSINESS terms of product portfolio, geographies, suppliers, end- ST
RATEGI C
Low
COMPLIANCE
GROUPS market sectors and customers can lessen the impact
of local and regional economic changes. However, if
STRATEGY &
BUSINESS adverse circumstances are pronounced and/or long FINANCIAL Low
lasting, they can have a significant impact on the
PERFORMANCE company's business and the results of its operations.
MPL I ANCE ERAT I ONAL
IMCD is affected by demand fluctuations and other CO OP • Strategic: in pursuing its strategy, IMCD is prepared
GOVERNANCE
developments in the broader economy and weak to take moderate risk, including the exploration
FINANCIAL economic conditions may have a material adverse of new business opportunities and possibilities for
STATEMENTS acquisitions and expansion
2021
effect on the group.
• Operational: with respect to operational risks, IMCD
The IMCD risk management policy is aimed at striking FIN
ANCI AL seeks to minimise the risks of unforeseen operational
the best balance between maximisation of business failures within its businesses
opportunities within the framework of the company's • Compliance: with respect to compliance risks, IMCD
strategy, and managing the risks involved. maintains a risk-averse strategy. IMCD strives to
comply with all applicable laws and regulations,
with a particular focus on health, safety and
environmental laws
• Financial: with respect to financial risks, IMCD
maintains a cautious financing structure and stringent
cash management policy
108
FOREWORD BY
THE CEO
Risk management framework Risk management tasks Risk management elements
and responsibilities
2021 Although IMCD benefits from its geographical, market, The elements of IMCD’s risk management system are
HIGHLIGHTS client and product portfolio spread, IMCD’s well- IMCD’s risk management and control systems are the following:
2021 FINANCIAL structured risk management process is designed designed to identify and analyse the risks faced by the
HIGHLIGHTS to manage the residual risks in a transparent and group at various levels, to determine and implement 1. Control environment, including:
controlled manner. IMCD’s comprehensive internal appropriate risk controls, and to monitor risks and the • organisational culture based on ethical conduct and
GLOBAL
PRESENCE control and risk management systems, including way the risks are controlled. The identification and compliance, clear responsibilities and short and open
supporting tools, are continuously monitored by the management of climate change risks follow the same lines of communication
HISTORY Supervisory Board, Management Board, Corporate risk-management process. • IMCD group policies including business principles,
Control, Internal Audit and by regional and local management instructions and manuals
SHAREHOLDER
INFORMATION management, improved when required and modified in Key activities within IMCD's risk management and • continuous compliance training of employees
line with changes in internal and external conditions. control systems are: • risk management embedded in the business
ABOUT IMCD • identification of key business risks, based on processes at all levels of the organisation
OUR BUSINESS
In 2021 Corporate Control, in cooperation with likelihood of occurrence and their potential impact
GROUPS Internal Audit, has completely reworked the IMCD • setting and maintaining key controls for managing 2. Risk assessment and control
risk and control framework by means of a bottom-up and preventing the key risks procedures, including:
STRATEGY &
BUSINESS
approach. Meetings were held with all department • identification of risks via risk self-assessments,
leaders to identify all potential risks applicable to The Management Board, under supervision of the coordinated by Corporate Control and Corporate
PERFORMANCE each department. This included the identification of Supervisory Board, has overall responsibility for Health Safety and Quality (HSEQ)
climate change related risks and the impact of (future) the IMCD risk management and control systems. • implementation and optimisation of effective and
GOVERNANCE
regulations with regards to climate change. This risk Management of regional holding and operating efficient control procedures at various levels of
FINANCIAL overview was shared with a group of key internal companies is responsible for operational performance the organisation
STATEMENTS stakeholders to rate these risks on the potential and compliance and for managing the associated
2021
likelihood of the risk to occur and the potential impact local risks. 3. Information, communication and
on various levels. Furthermore, the risks were allocated monitoring, including:
to the respective categories (strategic, operational, • harmonised reporting on operations, financial results,
compliance and financial). The key risks resulting financial positions and key risks
from this assessment were added to the framework • periodical monitoring and reviews of financial results
and appropriate control measures were allocated or and risk management by corporate management
redefined for risk mitigation purposes. • periodical reviews on HSEQ management by
corporate HSEQ
The resulting revised IMCD risk and control framework • regular review meetings between corporate and
was put in place at the end of 2021. local management
• internal audits performed by IMCD's internal auditors
The Management Board is responsible for establishing

and maintaining adequate internal risk management
and control systems. Such systems are developed to
109
manage risks, but cannot provide absolute certainty Significant risks also includes scenario analysis on the impact of our
FOREWORD BY
THE CEO
that human errors, losses, fraud and infringements of and uncertainties strategy and the financial position.
laws and regulations will be prevented. Management
2021 has assessed whether IMCD's risk management In the following section, the main risks and the way The methodology and detailed set of KPI’s and metrics
HIGHLIGHTS and control systems provide reasonable assurance IMCD manages these risks are described. None of the will be included in the IMCD Sustainability report for
2021 FINANCIAL that the financial reporting does not contain any significant risks and uncertainties materially affected 2021 which is set to be published mid-2022.
HIGHLIGHTS material misstatements. IMCD's position. The main risks and their importance
are disclosed in the following table. We decided not to
GLOBAL
PRESENCE Based on the approach outlined above, the include the (COVID-19) pandemic risk separately as we
Management Board is of the opinion that, to the best perceive this as an important factor affecting the risks
HISTORY of its knowledge, the internal risk management and that have already been identified in the past.
control systems are adequately designed and operated
SHAREHOLDER
INFORMATION effectively in the year under review and hence provide Taskforce on Climate-related Financial
reasonable assurance that the financial statements are Disclosures (TFCD)
ABOUT IMCD free of material misstatements. The identification of climate change related risks and
OUR BUSINESS
opportunities are integrated in the risk management
GROUPS procedures and incorporated in the update of the IMCD
risk and control framework in 2021.
STRATEGY &
BUSINESS
In the coming year the identified climate change
PERFORMANCE related risks and opportunities will be further analyzed,
including the impact on financial performance and
GOVERNANCE
financial planning in short, medium and long term. This
FINANCIAL
STATEMENTS
2021 RISK LIKELIHOOD IMPACT
Decline in customer demand Moderate Moderate

STRATEGIC Supplier dependency Moderate Moderate
Acquisition and integration risk Moderate Moderate
Dependency on key personnel Moderate High

OPERATIONAL Cybercrime and continuity of ICT Moderate High
Health / safety / environmental incidents Low High
Non-compliance with laws and regulations Low High

COMPLIANCE
Anti-corruption and bribery Low High
Volatility of foreign currencies High Low

Credit risk Moderate Low
FINANCIAL Liquidity risk Low Moderate
Interest rate risk Moderate Low
110
FOREWORD BY
THE CEO Strategic
2021
HIGHLIGHTS
2021 FINANCIAL RISK RISK DESCRIPTION RISK MEASURES

HIGHLIGHTS
Decline in IMCD’s business depends on its customers’ demand for chemicals used in the The broad diversity of IMCD's business in terms of product portfolio, geographies,
customer demand manufacture of a wide array of products, which in turn is driven by demand from suppliers, end market sectors and customers can lessen the impact of local and
GLOBAL
PRESENCE consumers and other end users for the products made by IMCD's customers. To regional economic changes. However, if these changes are pronounced and/or
a large extent, demand levels depend on macroeconomic conditions on a global long lasting, they can have a significant impact on the company's business and
HISTORY level.This has been highlighted in particular in the past years due to the COVID-19 the results of its operations.
pandemic. An improvement or deterioration in levels of economic activity and
SHAREHOLDER consumer demand tends to be reflected in the overall level of production and Despite the market conditions being affected by the COVID-19 impact, IMCD has
INFORMATION consumption of chemicals. been able to maintain a strong performance due to its resilient and diversified
business model.
ABOUT IMCD
Supplier dependency IMCD depends on its suppliers to develop and supply the product portfolio that Maintaining close relationships with supply partners is essential for IMCD in
OUR BUSINESS it markets, sells and distributes. Shortages in supply of certain products or non- achieving its growth strategy. By acting in an open and transparent way towards
GROUPS competitiveness of product lines could negatively affect operating results. The its suppliers and with a focus on growing suppliers' product brands, IMCD seeks
termination of a major supplier relationship could have a material adverse effect to maintain long-term relationships.
STRATEGY &
on the company’s product portfolio, sales volumes, revenues and profit margins.
BUSINESS
Acquisition and Execution of IMCD’s strategy will require the continued pursuit of acquisitions IMCD tries to limit these risks by means of diligent identification of targets
PERFORMANCE
integration risk and investments and will depend on the company's ability to identify suitable and, by applying strict selection criteria, including determining the cultural
acquisition candidates and investment opportunities. and organisational fit with the company. This is followed by a structured
GOVERNANCE
implementation of the acquisition, including determining the structure of the
Acquisitions and investments involve risks, including assumptions about revenues transaction, thorough due diligence and the contract and integration process.
FINANCIAL
STATEMENTS and costs being inaccurate, unknown liabilities and customer or key employee Acquisition activities are driven centrally by an experienced management team
2021 losses at the acquired businesses, potentially leading to impairment losses on supported by external consultants.
intangible assets recognised. Moreover, a successful acquisition depends on swift
integration of the acquiree within the company, both on an organisational and
cultural level.
111
FOREWORD BY
THE CEO Operational
2021
HIGHLIGHTS

HIGHLIGHTS
Dependency on IMCD relies significantly on the skills and experience of its managerial IMCD limits these risks by providing an inspiring and entrepreneurial working environment,
key personnel staff and technical and sales personnel. A loss of these individuals or offering international career opportunities, performance-based incentive schemes and long-term
GLOBAL
PRESENCE the failure to recruit suitable managers and other key personnel, both succession planning. In addition, in order to secure the valuable relationships with key suppliers
when expanding the group's operations and when replacing people who and key customers, these relationships are maintained by commercial teams rather than by
HISTORY leave IMCD, could have a material adverse effect on the performance of individual commercial staff members.
the group.
SHAREHOLDER
INFORMATION Cybercrime and IMCD's information technology infrastructure including its information IMCD enhances its ICT security and further develops its business processes as part of its ICT
ICT continuity and communication technology systems are key for managing and governance improvement programme. IMCD continuously invests in its IT infrastructure by timely
ABOUT IMCD operating business. Severe damages and interruptions of those systems, implementation of new techniques, software and systems to protect its systems and data and to
caused by natural disasters, software viruses, malware, cyber-attacks limit any down time of its systems.
OUR BUSINESS or other threats, disrupt its business and could result in downtime or IMCD focuses on improving its cybersecurity by raising awareness amongst employees and
GROUPS breaches of sensitive information such as personal data or company enhancing the security protocols for its systems. A wide range of new and existing security
records. This continues to be a risk for IMCD, which requires a stable measures such as access and authorisation controls and back-up and recovery systems help
STRATEGY & and agile ICT environment, especially when working remotely as in recent IMCD to protect quality and integrity of information in a continuously changing ICT landscape.
BUSINESS
periods during this pandemic crisis. These measures are monitored by the central ICT team on an ongoing basis.
PERFORMANCE Health / safety / Marketing, sales and distribution of speciality chemicals, food and The majority of IMCD's subsidiaries have implemented certified quality systems and make use of
environmental pharmaceutical ingredients entails exposures to health, safety and monitoring systems for recording and analysing any non-conformities in order to further optimise
GOVERNANCE incidents environmental risks which could potentially lead to reputational and their business processes. IMCD applies a Corporate HSEQ policy.
financial damage. Examples of such exposures are: IMCD has outsourced the majority of its logistic operations to reputable third-party logistic service
FINANCIAL
providers, who are carefully selected and continually monitored by the supply chain team to
STATEMENTS
2021 • employees and logistic service providers who are not properly trained/ ensure quality standards and that performance is optimised.
informed on handling of products Employees, customers and logistics service providers are issued with adequate safety instructions
• products used for illegal purposes and operating procedures for handling chemical products. Critical product data is managed by a
• lack of quality management team of experienced specialists.
• missing permits and notifications Yearly training programmes are established and carried out to ensure both employees and
• product disposal not being properly controlled, leading to pollution and logistic service providers are aware of recent and future developments and changes in laws
environmental damage and regulations.
Climate change It is widely recognised that climate change poses significant risks to Potential climate factors are considered in the selection process of logistics service providers with
natural, social and economic systems across the globe. The range of respect to accessibility and back-up procedures in the event of environmental incidents.
hazards is broad, from slow onset weather pattern changes to sudden
extreme events. The consequent potential impacts affect ecosystems
and natural environments, and therefore might directly or indirectly
cause serious technical, financial, geopolitical and other changes in
society. Some of these risks might impact IMCD’s activities, for example
disruptions to transportation infrastructures due to extreme weather
events, or shortages of some feedstock due to agricultural losses.
112
FOREWORD BY
THE CEO Compliance
2021
HIGHLIGHTS

HIGHLIGHTS
Non-compliance with laws Being present in various countries across the globe, IMCD is IMCD has set up an internal competition compliance framework and trains its employees by
and regulations exposed to local and international legal and compliance risk. As means of a compliance programme to observe national and international antitrust laws. By doing
GLOBAL
PRESENCE a matter of principle, IMCD complies with all applicable national so, IMCD makes its employees aware of potential conflicts with competition law and actively helps
and international laws and regulations (including local tax laws them to avoid any potential adverse consequences of competition law infringements.
HISTORY and regulations).
IMCD neither engages in nor supports the use of forced labour, bonded or involuntary labour or
SHAREHOLDER child labour. IMCD therefore complies with the standards of the International Labour Organisation
INFORMATION and the minimum age requirements in all countries in which IMCD conducts business.
ABOUT IMCD
Taxes are paid where the economic activity occurs. In cases when there is insufficient local
OUR BUSINESS knowledge with respect to tax cases, the Company makes use of external advisors to ensure
GROUPS compliance with local tax requirements.
STRATEGY &
Anti-corruption Non-compliance with anti-corruption and bribery laws could Specific internal policies on anti-corruption and anti-bribery are in place, offering our employees
BUSINESS and bribery lead to fines and potential prosecution of employees, and could clear examples of conduct that should be avoided. A continuous compliance training programme
substantially harm the company’s reputation. is in place to create and maintain awareness of ethical business practices and to ensure
PERFORMANCE compliance with applicable trade restrictions, antitrust and anti-bribery laws, market abuse
rules and other compliance regulations and more. IMCD uses an online learning (e-learning)
GOVERNANCE platform and a standardised group compliance training curriculum as part of the IMCD
compliance programme.
FINANCIAL
STATEMENTS
2021
113
FOREWORD BY
THE CEO Financial
2021
HIGHLIGHTS

HIGHLIGHTS
Volatility of IMCD is exposed to currency risk on sales, purchases and IMCD uses forward exchange contracts to hedge currency risks; most of these contracts have
foreign currencies borrowings that are denominated in a currency other than the maturities of less than one year. Interest on borrowings is denominated in the currency of
GLOBAL
PRESENCE respective functional currencies of the company. the borrowing. Generally, borrowings are denominated in currencies that match the cash flows
generated by the underlying operations, providing an economic hedge without derivatives being
HISTORY entered into. In respect of other monetary assets and liabilities denominated in foreign currencies,
the company's policy is to ensure that its net exposure is kept to an acceptable level by buying or
SHAREHOLDER selling foreign currencies at spot rates when necessary to address short-term imbalances.
INFORMATION
Credit risk IMCD’s exposure to credit risk is influenced mainly by the IMCD has established a credit policy under which each new customer is analysed individually
ABOUT IMCD individual characteristics of each customer. However, IMCD also for creditworthiness before the company’s standard payment and delivery terms and conditions
considers the demographics of the customer base, including the are offered. IMCD’s review includes the use of external ratings, when available, and in some
OUR BUSINESS default risk of the industry and country in which customers cases bank references. Purchase limits are established for each customer, which represents the
GROUPS operate, as these factors may impact the credit risk. This maximum open amount. These limits are reviewed periodically, at least once a year. Customers
has been of increased importance due to the COVID-19 who fail to meet the company’s benchmark creditworthiness may transact with IMCD only on a
STRATEGY & pandemic. There is no significant geographical concentration or prepayment basis.
BUSINESS
concentration at individual customer level of credit risk.
PERFORMANCE Liquidity risk Liquidity risk is the risk that IMCD will encounter difficulty in IMCD's approach to managing liquidity is to ensure, as far as possible, that it will always have
meeting the obligations associated with its financial liabilities that sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions,
GOVERNANCE are settled by delivering cash or another financial asset. without incurring unacceptable losses or risking damage to IMCD’s reputation. Typically IMCD
ensures that it has sufficient cash on demand to meet expected operational expenses for the next
FINANCIAL
twelve months, including the servicing of financial obligations.
STATEMENTS
2021
Interest rate risk IMCD is exposed to interest rate risk with respect to its IMCD adopts a policy of ensuring that at least a large element of its exposure to changes in
financial assets and liabilities, either from fixed rate or variable interest rates on long-term loans is on a fixed-rate basis, taking into account assets with exposure
rate instruments. to changes in interest rates. When required, interest rate swap contracts are used for hedging
variable into fixed interest rates.
114
FOREWORD BY
THE CEO
Statement of the In accordance with best practice provision 1.4.3. of the
Code, the Management Board of IMCD N.V. furthermore
states that:
2021
HIGHLIGHTS
Management Board
1. this report provides sufficient insight into any
2021 FINANCIAL shortcomings in the effectiveness of the internal risk
HIGHLIGHTS
The Management Board of IMCD N.V. hereby declares, management and control systems;
in accordance with article 5:25c of the Dutch Financial 2. those systems provide reasonable assurance
GLOBAL
PRESENCE Supervision Act, that to the best of its knowledge: that the financial report does not contain any
material misstatements;
HISTORY
1. the financial statements, which have been prepared 3. in the current situation, it is appropriate for the
in accordance with IFRS-EU and Part 9 of Book financial report to be prepared on a going concern
SHAREHOLDER
INFORMATION 2 of the Dutch Civil Code, and included in the basis; and
annual report, provide a true and fair view of the 4. this report states those material risks and
ABOUT IMCD uncertainties that are relevant to the expectation
assets, liabilities and financial position of IMCD as at
OUR BUSINESS 31 December 2021 as well as of the profit or loss of of the company’s continuity for the period of twelve
GROUPS
IMCD N.V. and its consolidated enterprises; months after the preparation of the report.
STRATEGY & 2. this report provides a true and fair view of the
BUSINESS position as at 31 December 2021 and of the business Rotterdam, 24 February 2022
performance during the 2021 financial year of
PERFORMANCE
IMCD N.V. and the companies associated with it, Management Board
the results of which are included in the financial Piet van der Slikke
GOVERNANCE
statements; and Hans Kooijmans
FINANCIAL 3. the key material risks to which IMCD N.V. is exposed
STATEMENTS
2021 are described in the annual report.
115
FOREWORD BY
THE CEO Financial statements
2021
HIGHLIGHTS
2021 FINANCIAL
2021
HIGHLIGHTS
GLOBAL
PRESENCE
HISTORY
SHAREHOLDER
INFORMATION
ABOUT IMCD
OUR BUSINESS
GROUPS
STRATEGY &
BUSINESS
PERFORMANCE
GOVERNANCE
FINANCIAL
STATEMENTS
2021
116
IMCD Annual Report 2021
Contents
Consolidated statement of financial position as of 30 Employee benefits 187 Other information not forming part of the
31 Provisions 192
31 December 2021 118 32 Trade and other payables 193 financial statements 227
33 Financial Instruments 194 Ten-year summary 228
Consolidated statement of profit or loss and other 34 Off-balance sheet commitments 198
comprehensive income 119 35 Related parties 198
36 Subsequent events 199
Consolidated statement of changes in equity 120
Company balance sheet as of 31 December 2021 201
Consolidated statement of cash flows 122
Company income statement 202
Notes to the Consolidated financial statements 123
Notes to the Company financial statements 203
1 Reporting entity 123
2 Basis of preparation 123 37 General 203
3 Significant accounting policies 132 38 Principles for the measurement of assets and
4 Determination of fair values 144 liabilities and the determination of the result 203
5 Financial risk management 145 39 Operating income 203
6 Operating segments 153 40 Personnel expenses 203
7 Acquisition of subsidiaries 155 41 Income tax expenses 203
8 Revenue 159 42 Participating interest in group companies 204
9 Other income 161 43 Deferred tax assets 205
10 Personnel expenses 161 44 Trade and other receivables 205
11 Non-recurring income and expenses 162 45 Accounts receivable from subsidiary (current) 205
12 Share based payment arrangements 163 46 Shareholders' equity 206
13 Other operating expenses 164 47 Non-current liabilities 208
14 Net finance costs 165 48 Current liabilities 209
15 Income tax expense 166 49 Financial instruments 210
16 Earnings per share 168 50 Off-balance sheet commitments 210
17 Property, plant and equipment 169 51 Fees of the auditor 210
18 Intangible assets 171 52 Related parties 211
19 Leases 175 53 Compensation of the Management Board and the
20 Non-current assets by geographical market 176 Supervisory Board 211
21 Equity-accounted investees 177 54 Provision regarding the appropriation of profit 212
22 Other financial assets 177 55 Subsequent events 212
23 Deferred tax assets and liabilities 178
24 Inventories 180 List of group companies as per 31 December 2021 213
25 Trade and other receivables 181
26 Cash and cash equivalents 182 Other information 216
27 Capital and reserves 183
28 Non-controlling interest 184
29 Loans and borrowings 184
117
CONSOLIDATED
FINANCIAL
STATEMENTS
Consolidated statement of financial position
COMPANY
as of 31 December 2021
FINANCIAL
STATEMENTS
OTHER 31 DECEMBER 31 DECEMBER 31 DECEMBER 31 DECEMBER

INFORMATION EUR 1,000 NOTE 2021 2020 1 EUR 1,000 NOTE 2021 2020 1
Assets Equity 27
Property, plant and equipment 17 97,932 94,950 Share capital 9,118 9,118
Share premium 1,051,438 1,051,438
Goodwill 1,257,011 1,022,593 Reserves (63,895) (123,203)
Other intangible assets 551,088 524,345 Retained earnings 255,888 194,927
Intangible assets 18 1,808,099 1,546,938 Unappropriated result 207,276 120,128
Equity-accounted investees 21 71 39 Total shareholders' equity 1,459,825 1,252,408
Other financial assets 22 5,422 5,290 Non-controlling interests 28 1,529 -
Deferred tax assets 23 35,393 40,198 Total equity 1,461,354 1,252,408
Non-current assets 1,946,917 1,687,415
Liabilities
Inventories 24 526,300 371,239 Loans and borrowings 29 666,853 581,209
Trade and other receivables 25 619,462 469,130 Employee benefits 30 29,258 29,535
Cash and cash equivalents 26 177,879 169,008 Provisions 31 6,494 4,449
Current assets 1,323,641 1,009,377 Deferred tax liabilities 23 122,251 117,674
Total non-current liabilities 824,856 732,867
Total assets 3,270,558 2,696,792
The notes are an integral part of these consolidated financial statements Loans and borrowings 29 - 80,373
Short-term financial liabilities 29 451,050 234,440
Trade payables 32 403,010 291,844
Other payables 32 130,288 104,860
Total current liabilities 984,348 711,517
Total liabilities 1,809,204 1,444,384
Total equity and liabilities 3,270,558 2,696,792
1 The period ended 31 December

2020 has been restated as a
result of a change in accounting
policy detailed in Note 2 of the
Financial statements
118
CONSOLIDATED
FINANCIAL
STATEMENTS
Consolidated statement of profit or loss
COMPANY
and other comprehensive income
FINANCIAL FOR THE YEAR ENDED 31 DECEMBER 2021
STATEMENTS
EUR 1,000 NOTE 2021 2020 1 EUR 1,000 NOTE 2021 2020
OTHER
INFORMATION
Revenue 8 3,435,250 2,774,918 Result for the year 207,236 120,128
Other income 9 24,254 12,443
Operating income 3,459,504 2,787,361 Defined benefit plan actuarial gains/(losses) 30 684 (2,356)
Cost of materials and inbound logistics 24 (2,598,934) (2,127,434) Related tax 15 (272) 537
Cost of warehousing, outbound logistics and Items that will never be reclassified to
other services (101,880) (81,928) profit or loss 412 (1,818)
Wages and salaries 10, 12 (228,739) (196,459)

Foreign currency translation differences
Social security and other charges 10 (59,731) (52,286)
related to foreign operations 56,529 (82,553)
Depreciation of property, plant and equipment 17, 19 (27,403) (25,637)
Effective portion of changes in fair value of
Amortisation of intangible assets 18, 19 (65,460) (47,520)
cash flow hedges 106 (110)
Other operating expenses 13 (71,892) (65,717)
Related tax 15 (485) 4,393
Operating expenses (3,154,039) (2,596,981)
Items that are or may be reclassified to
Result from operating activities 305,465 190,380 profit or loss 14 56,150 (78,270)
Finance income 14 1,803 2,636 Other comprehensive income for the

Finance costs 14 (23,473) (28,397) period, net of income tax 56,562 (80,088)
Net finance costs (21,670) (25,761)
Share of profit of equity-accounted investees, Total comprehensive income for the period 263,798 40,040
net of tax 21 32 (45)
Result before income tax 283,827 164,574
Attributable to:
Income tax expense 15 (76,591) (44,446)
Shareholders of the Company 263,838 40,040
Result for the year 207,236 120,128
Non-controlling interests 28 (40) -
Result for the year attributable to the Total comprehensive income for the period 263,798 40,040
1 shareholders of the Company 207,276 120,128

The period ended 31 December
Result for the year attributable to non- Weighted average number of shares 16 56,939,895 53,749,804
2020 has been restated as a result
controlling interest 28 (40) -
of a change in accounting policy
Result for the year 207,236 120,128 Basic earnings per share 16 3.64 2.23
detailed in Note 2
Diluted earnings per share 16 3.63 2.23
2 Revenue minus cost of materials
Gross profit 2 836,316 647,484 The notes are an integral part of these consolidated statements.
and inbound logistics (non-
Gross profit as a % of revenue 24.3% 23.3%
IFRS measure)
Operating EBITA 3 6 373,629 243,151
3 Result from operating activities
Operating EBITA as a % of revenue 10.9% 8.8%
before amortisation of intangibles
The notes are an integral part of these consolidated statements.
and non-recurring items (non-
IFRS measure)
119
CONSOLIDATED
FINANCIAL
STATEMENTS
Consolidated statement of changes in equity
FOR THE YEAR ENDED 31 DECEMBER 2021
COMPANY
FINANCIAL RESERVE UNAPPRO- TOTAL NON-
STATEMENTS SHARE SHARE TRANSLATION HEDGING OWN OTHER RETAINED PRIATED SHAREHOLDERS' CONTROLLING TOTAL
EUR 1,000 NOTE CAPITAL PREMIUM RESERVE RESERVE SHARES RESERVES EARNINGS RESULT EQUITY INTERESTS EQUITY
OTHER
INFORMATION Balance as at
1 January 2021 27 9,118 1,051,438 (114,329) (206) (3,893) (4,774) 194,927 120,128 1,252,408 - 1,252,408
Appropriation of prior
year’s result - - - - - - 62,000 (62,000) - - -
9,118 1,051,438 (114,329) (206) (3,893) (4,774) 256,927 58,128 1,252,408 - 1,252,408
Result for the year - - - - - - - 207,276 207,276 (40) 207,236

Total other
comprehensive income - - 56,044 106 - 412 - - 56,562 - 56,562
Total comprehensive
income for the year - - 56,044 106 - 412 - 207,276 263,838 (40) 263,798
Cash dividend 27 - - - - - - - (58,128) (58,128) - (58,128)

Issue of shares minus
related costs 27 - - - - - - - - - - -
Share based payments 27 - - - - - 1,025 (4,130) - (3,105) - (3,105)
Transfer of own shares 27 - - - - 1,721 - 3,091 - 4,812 - 4,812
Non-controlling interest 28 - - - - - - - - - 1,569 1,569
Total contributions by and
distributions to owners of
the Company - - - - 1,721 1,025 (1,039) (58,128) (56,421) 1,569 (54,852)
Balance as at
31 December 2021 9,118 1,051,438 (58,285) (100) (2,172) (3,337) 255,888 207,276 1,459,825 1,529 1,461,354
120
CONSOLIDATED RESERVE UNAPPRO- TOTAL NON-

FINANCIAL SHARE SHARE TRANSLATION HEDGING OWN OTHER RETAINED PRIATED SHAREHOLDERS' CONTROLLING TOTAL
STATEMENTS
EUR 1,000 NOTE CAPITAL PREMIUM RESERVE RESERVE SHARES RESERVES EARNINGS RESULT EQUITY INTERESTS EQUITY
COMPANY
FINANCIAL Balance as at
STATEMENTS 1 January 2020 27 8,415 657,514 (36,169) (96) (4,686) (5,774) 139,315 108,006 866,525 - 866,525
Change in accounting policy - - - - - - (4,647) - (4,647) - (4,647)
OTHER Restated balance as at
INFORMATION 1 January 2020 8,415 657,514 (36,169) (96) (4,686) (5,774) 134,668 108,006 861,878 - 861,878
Appropriation of prior
year’s result - - - - - - 60,673 (60,673) - - -
8,415 657,514 (36,169) (96) (4,686) (5,774) 195,341 47,333 861,878 - 861,878
Result for the year 1 - - - - - - - 120,128 120,128 - 120,128

Total other
comprehensive income - - (78,160) (110) - (1,818) - - (80,088) - (80,088)
Total comprehensive
income for the year - - (78,160) (110) - (1,818) - 120,128 40,040 - 40,040
Cash dividend 27 - - - - - - - (47,333) (47,333) - (47,333)

Issue of shares minus
related costs 27 703 393,924 - - - - - - 394,627 - 394,627
Share based payments 27 - - - - - 2,818 (1,529) - 1,289 - 1,289
Transfer of own shares 27 - - - - 793 - 1,115 - 1,908 - 1,908
Total contributions by and
distributions to owners of
the Company 703 393,924 - - 793 2,818 (414) (47,333) 350,491 - 350,491
Balance as at
31 December 2020 9,118 1,051,438 (114,329) (206) (3,893) (4,774) 194,927 120,128 1,252,408 - 1,252,408
1 The result for the year has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statemens
121
CONSOLIDATED
FINANCIAL
STATEMENTS
Consolidated statement of cash flows
COMPANY
FINANCIAL EUR 1,000 NOTE 2021 2020 1 EUR 1,000 NOTE 2021 2020 1
STATEMENTS Cash flows from operating activities
Result for the year 207,236 120,128 Net cash from operating activities 196,263 232,014
OTHER Adjustments for:
INFORMATION Cash flows from investing activities
• Depreciation of property, plant
and equipment 17 27,403 25,637 Payments for acquisition of subsidiaries, net of
cash acquired and divestures 7, 33 (180,047) (374,558)
• Amortisation of intangible assets 18 65,460 47,520
Acquisition of intangible assets 18 (12,604) (8,813)
• Net finance costs excluding currency
exchange results 14 17,893 18,249 Acquisition of property, plant and equipment 17 (6,113) (9,234)
• Currency exchange results 14 4,089 7,512 Proceeds from disposals of (in)tangible assets 17 , 18 1,196 2,630
• Non-recurring operating income 9 (6,224) - Acquisition of other financial assets 1,436 (45)
• Cost of share based payments 12 5,295 4,635 Net cash used in investing activities (196,132) (390,020)
• Share of profit of equity-accounted

investees, net of tax 21 (32) 45 Cash flows from financing activities
• Income tax expense 15 76,591 44,446 Proceeds from issue of share capital net of
related costs 27 - 392,877
397,712 268,172
Dividends paid 27 (58,128) (47,333)
Change in:
Share based payments 27 (3,590) (1,430)
• Inventories 24 (110,432) 5,885
Payment of transaction costs related to loans
• Trade and other receivables 25 (86,809) 1,486
and borrowings 27 - (595)
• Trade and other payables 32 96,980 23,287
Movements in bank loans and other short-term
• Provisions and employee benefits 30, 31 (1,728) (1,910)
financial liabilities 27 704 10,333
Cash generated from operating activities 295,724 296,921
Proceeds from issue of current and non-
Interest paid (15,796) (18,934) current loans and borrowings 27 335,509 260,564
Income tax paid (83,664) (45,974) Repayment of loans and borrowings (249,582) (351,759)
Net cash from operating activities 196,263 232,014 Repayment of lease liabilities (20,183) (16,219)
The notes are an integral part of these consolidated statements. Net cash from financing activities 4,729 246,439
Net increase in cash and cash equivalents 4,860 88,433

Cash and cash equivalents as at 1 January 26 169,008 104,357
Effect of exchange rate fluctuations 4,011 (23,782)
Cash and cash equivalents as at
31 December 26 177,879 169,008
1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in
Note 2 to the Financial statements
1 The period ended 31 December
2020 has been restated as a
result of a change in accounting
policy detailed in Note 2 to the
122
CONSOLIDATED
FINANCIAL
STATEMENTS
Notes to the Consolidated financial statements
COMPANY
FINANCIAL 1 Reporting entity
STATEMENTS
IMCD N.V.(the ‘Company’) is a public limited company domiciled in the Netherlands and registered in The NetherlandsChamber of Commerce
OTHER Commercial register under number 21740070. The address of the Company’s registered office is Wilhelminaplein 32, Rotterdam. The consolidated
INFORMATION
financial statements of the Company as at and for the year ended 31 December 2021 comprise the Company and its subsidiaries (together referred to
as the ‘Group’ and individually as ‘Group entities’). The Company is acting as the parent company of the IMCD Group, a group of leading companies in
sales, marketing and distribution of speciality chemicals and pharmaceutical and food ingredients. The Group has offices and warehouses in Europe,
Asia-Pacific, Africa, and in North and Latin America.
2 Basis of preparation
2.a Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the
European Union and with Part 9 of Book 2 of the Netherlands Civil Code.
The consolidated financial statements were authorised for publication by all members of the Management Board and the Supervisory Board on
24 February 2022.
2.b Basis of measurement

The consolidated financial statements are prepared on a going concern basis and on the historical cost principle, except for the following
material items in the statement of financial position:
• derivative financial instruments are measured at fair value
• non-derivative financial instruments at fair value through profit or loss are measured at fair value
• contingent considerations assumed in a business combination are measured at fair value
• the defined benefit asset/liability is recognised as the net total of the plan assets, less the present value of the defined benefit obligation and is
adjusted for any effect of the asset ceiling
2.c Functional and presentation currency

These consolidated financial statements are presented in EUR, which is the Company's functional currency. All financial information presented in this
report in EUR has been rounded to the nearest thousand, unless stated otherwise.
2.d Use of estimates and judgements

The preparation of financial statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of assets,
liabilities, income and expenses. Actual results may differ from these estimates.
123
CONSOLIDATED Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the
FINANCIAL estimates are revised and in any future periods affected.
STATEMENTS
COMPANY Judgements
FINANCIAL Information about judgements made in applying accounting policies that have the most significant effect on the amounts recognised in the consolidated
STATEMENTS
financial statements are included in the following notes:
• Notes 7 , 28 and 35: whether the Group has (de facto) control over an investee and whether a non-controlling interest is recognised.
OTHER
INFORMATION
• Note 19 – lease term: whether the Group is reasonably certain to exercise extension options
Assumptions and estimation uncertainties

Information about assumptions and estimation uncertainties that bear a significant risk of resulting in a material
adjustment in the financial year are included in the following notes:
• Note 7 – acquisition of subsidiaries: fair value measured on a provisional basis
• Note 18 – impairment test for intangible assets: key assumptions underlying recoverable amounts
• Note 23 – recognition of deferred tax assets: availability of future taxable profit against which carry forward tax losses can be used
• Note 30 – measurement of defined benefit obligations: key actuarial assumptions
• Note 31 and 34: Recognition and measurement of provisions and contingencies: key assumptions about the likelihood and magnitude of an outflow
of resources
• Note 33 –measurement of deferred consideration as part of the financial instruments: key assumptions about the future cash flows and
expected returns
Measurement of fair values

A number of the Group’s accounting policies and disclosures require measurement of fair values for both financial and non-financial assets and liabilities.
The Group has a structured control framework in place with respect to the measurement of fair values. This includes a
dedicated team that has responsibility for overseeing all significant fair value measurements, including Level 3 fair values, which reports
directly to the CFO.
Management regularly reviews significant unobservable inputs and valuation adjustments. If third-party information, such as broker quotes
or pricing services, is used to measure fair values, then management assesses the evidence obtained from the third parties to support the
conclusion that such valuations meet IFRS requirements, including the level in the fair value hierarchy in which such valuations should be classified.
When measuring the fair value of an asset or a liability, the Group uses market observable data as far as possible.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:
• level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
• level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived
from prices)
• level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs)
124
CONSOLIDATED If the inputs used to measure the fair value of an asset or a liability might be categorised in different levels of the
FINANCIAL fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value
STATEMENTS
hierarchy as the lowest level input that is significant to the entire measurement.
COMPANY
FINANCIAL The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.
STATEMENTS
Further information about the assumptions made in measuring fair values is included in the following notes:
OTHER
INFORMATION
• Note 7: acquisition of subsidiaries
• Note 12: share-based payment arrangements
• Note 30: employee benefits
• Note 33: financial instruments
125
CONSOLIDATED 2.e Changes in accounting policies

FINANCIAL The Group has consistently applied the accounting policies set out in Note 3 to all periods presented in these consolidated financial statements.
STATEMENTS
COMPANY Except for the change in accounting referred to hereafter, other standards and amendments to standards, including any consequential amendments to
FINANCIAL other standards, with a date of initial application of 1 January 2021 did not have a material impact on the financial statements of the Group.
STATEMENTS
Standards and amendments to IFRS effective on or after 1 January 2021

OTHER
INFORMATION
IMCD has applied the following standards and amendments to standards, with a date of initial application of 1 January 2021:
• Amendments to IFRS 9, IAS 39 and IFRS 16: Interest Rate Benchmark Reform phase 2
• Amendment to IFRS 16 Leases: COVID-19-Related Rent Concessions (applicable for annual periods beginning on or after 1 June 2020)
• IFRIC agenda decision Configuration or Customisation Costs in a Cloud Computing Arrangement (IAS 38 Intangible assets)
Application of the first two amendments did not have a significant impact.
Following clarifying guidance from the International Financial Reporting Interpretations Committee (IFRIC) in March 2021, IMCD adopted a change in
accounting policy in relation to the treatment of configuration and customisation costs related to cloud computing arrangements, commonly referred
to as Software as a Service (SaaS). Under the revised accounting policy, costs that previously would have been capitalised, are treated as operating
expenditure in sofar as the Group cannot demonstrate the ability to control the relevant software.
Following this additional guidance provided by the IFRIC on the control criteria related to cloud computing arrangements, the Group also decided
to change its lease accounting policy and as a consequence derecognised its right-of-use-assets and lease liabilities related to cloud computing
arrangements. Software subscription fees are treated as operating expenses.
The changes in accounting policies have been adopted retrospectively and comparative figures for the year 2020 have been restated.
The following tables below show the impact of the change in accounting policy on previously reported financial results and only relates to the
segment Holdings.
126
CONSOLIDATED Impact on consolidated statement of financial position as of 31 December 2020

FINANCIAL
EUR 1,000 2020 ADJUSTMENTS RESTATED 2020
STATEMENTS
COMPANY Assets
FINANCIAL Property, plant and equipment 94,950 - 94,950
STATEMENTS
Goodwill 1,022,593 - 1,022,593

OTHER Other intangible assets 544,243 (19,898) 524,345
INFORMATION
Intangible assets 1,566,836 (19,898) 1,546,938
Equity-accounted investees 39 - 39
Other financial assets 5,290 - 5,290
Deferred tax assets 38,356 1,842 40,198
Non-current assets 1,705,471 (18,056) 1,687,415
Inventories 371,239 - 371,239
Trade and other receivables 464,432 4,698 469,130
Cash and cash equivalents 169,008 - 169,008
Current assets 1,004,679 4,698 1,009,377
Total assets 2,710,150 (13,358) 2,696,792
Equity
Share capital 9,118 - 9,118
Share premium 1,051,438 - 1,051,438
Reserves (123,203) - (123,203)
Retained earnings 199,574 (4,647) 194,927
Unappropriated result 120,924 (796) 120,128
Total Equity 1,257,851 (5,443) 1,252,408
Liabilities
Loans and borrowings 587,169 (5,960) 581,209
Employee benefits 29,535 - 29,535
Provisions 4,449 - 4,449
Deferred tax liabilities 117,674 - 117,674
Total non-current liabilities 738,827 (5,960) 732,867
Loans and borrowings 80,373 - 80,373
Short-term financial liabilities 240,810 (6,370) 234,440
Trade payables 291,844 - 291,844
Other payables 100,445 4,415 104,860
Total current liabilities 713,472 (1,955) 711,517
Total liabilities 1,452,299 (7,915) 1,444,384
Total equity and liabilities 2,710,150 (13,358) 2,696,792
127
CONSOLIDATED Impact on consolidated statement of profit or loss and other comprehensive income for the
FINANCIAL year ended 31 Decemer 2020
STATEMENTS
COMPANY
FINANCIAL Revenue 2,774,918 - 2,774,918
STATEMENTS
Other income 12,443 - 12,443
Operating income 2,787,361 - 2,787,361
OTHER
INFORMATION
Cost of materials and inbound logistics (2,127,434) - (2,127,434)
Cost of warehousing, outbound logistics and
other services (81,928) - (81,928)
Wages and salaries (196,459) - (196,459)
Social security and other charges (52,286) - (52,286)
Depreciation of property, plant
and equipment (25,637) - (25,637)
Amortisation of intangible assets (56,474) 8,954 (47,520)
Other operating expenses (55,351) (10,366) (65,717)
Operating expenses (2,595,569) (1,412) (2,596,981)
Result from operating activities 191,792 (1,412) 190,380
Finance income 2,636 - 2,636

Finance costs (28,694) 297 (28,397)
Net finance costs (26,058) 297 (25,761)
Share of profit of equity-accounted investees,

net of tax (45) - (45)
Result before income tax 165,689 (1,115) 164,574
Income tax expense (44,765) 319 (44,446)
Result for the year 120,924 (796) 120,128
Attributable to:
Shareholders of the Company 120,924 (796) 120,128
Non-controlling interests - - -
Result for the year 120,924 (796) 120,128
Gross profit 1 647,484 - 647,484

Gross profit as a % of revenue 23.3% 23.3%
Operating EBITA 2 253,517 (10,366) 243,151
Operating EBITA as a % of revenue 9.1% 8.8%
1 Revenue minus cost of materials and inbound logistics
2 Result from operating activities before amortisation of intangibles and non-recurring items
128
CONSOLIDATED Impact on consolidated statement of cash flows for the year ended 31 December 2020
FINANCIAL
STATEMENTS
Cash flows from operating activities
COMPANY Result for the year 120,924 (796) 120,128
FINANCIAL
Adjustments for:
STATEMENTS
• Depreciation of property, plant
and equipment 25,637 - 25,637
OTHER
INFORMATION
• Amortisation of intangible assets 56,474 (8,954) 47,520
• Net finance costs excluding currency
exchange results 18,546 (297) 18,249
• Currency exchange results 7,512 - 7,512
• Cost of share based payments 4,635 - 4,635
• Share of profit of equity-accounted
investees, net of tax 45 - 45
• Income tax expense 44,765 (319) 44,446
278,538 (10,366) 268,172
Change in:
• Inventories 5,885 - 5,885
• Trade and other receivables 6,184 (4,698) 1,486
• Trade and other payables 18,575 4,712 23,287
• Provisions and employee benefits (1,910) - (1,910)
Cash generated from operating activities 307,273 (10,352) 296,921
Interest paid (18,934) - (18,934)
Income tax paid (45,974) - (45,974)
Net cash from operating activities 242,366 (10,352) 232,014
129
CONSOLIDATED Impact on consolidated statement of cash flows for the year ended 31 December
FINANCIAL 2020 (continued)
STATEMENTS
COMPANY Cash flows from operating activities 242,366 (10,352) 232,014
FINANCIAL
STATEMENTS
Cash flows from investing activities
Payments for acquisition of subsidiaries, net of
OTHER cash acquired and divestures (374,558) - (374,558)
INFORMATION
Acquisition of intangible assets (13,091) 4,278 (8,813)
Acquisition of property, plant and equipment (9,234) - (9,234)
Proceeds from disposals of (in)tangible assets 2,630 - 2,630
Acquisition of other financial assets (45) - (45)
Net cash used in investing activities (394,298) 4,278 (390,020)
Cash flows from financing activities

Proceeds from issue of share capital net of
related costs 392,877 - 392,877
Dividends paid (47,333) - (47,333)
Purchase and transfer of own shares (0) - (0)
Share based payments (1,430) - (1,430)
Payment of transaction costs related to loans
and borrowings (595) - (595)
Movements in bank loans and other short-
term financial liabilities 10,333 - 10,333
Proceeds from issue of current and non-
current loans and borrowings 260,564 - 260,564
Repayment of loans and borrowings (351,759) - (351,759)
Redemption of lease liabilities (22,293) 6,074 (16,219)
Net cash from financing activities 240,365 6,074 246,439
Net increase in cash and cash equivalents 88,433 - 88,433

Cash and cash equivalents as at 1 January 104,357 - 104,357
Effect of exchange rate fluctuations (23,782) - (23,782)
Cash and cash equivalents as at
31 December 169,008 - 169,008
130
CONSOLIDATED New standards and interpretations not yet adopted

FINANCIAL The following standards, amendments to standards and interpretations are effective for annual periods beginning after 1 January 2022 and have not
STATEMENTS
been applied in preparing these consolidated financial statements:
COMPANY • IFRS 17 Insurance Contracts
FINANCIAL • Amendments to IFRS 3 Business Combinations: Reference to the Conceptual Framework
STATEMENTS
• Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
• Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current
OTHER
INFORMATION
• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction
• Amendments to IAS 16 Property, Plant and Equipment—Proceeds before Intended Use
• Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Onerous Contracts—Cost of Fulfilling a Contract
The Group does not plan to adopt these standards early and does not expect the new standards to have a significant impact.
131
CONSOLIDATED 2.f COVID-19

FINANCIAL Important events
STATEMENTS
IMCD’s results for the year have been moderately impacted by the COVID-19 pandemic. IMCD was able to remain open for business, whilst adapting
COMPANY working practices to safeguard the health of our employees and business partners. Supply chains disruption was only limited and remote working
FINANCIAL allowed operations to continue.
STATEMENTS
Principal risks and uncertainties

OTHER
INFORMATION
The impact of the COVID-19 pandemic on accounting has been assessed and it was determined that this did not have a significant impact on any of the
balance sheet items.
3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial statements. They have
been applied consistently by Group entities, except as explained in Note 2.e, which addresses changes in accounting policies.
3.a Basis of consolidation

Business combinations
The Group accounts for business combinations using the acquisition method when control is transferred to the Group. The consideration transferred in
the acquisition is generally measured at fair value, as are the identifiable net assets acquired. An exception on this are deferred tax assets or liabilities
and assets or liabilities related to employee benefit arrangements which are recognised and measured in accordance with IAS 12 Income Taxes and IAS
19 Employee Benefits respectively. Any goodwill that arises is tested annually for impairment. Any gain on a bargain purchase is recognised in profit or
loss immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
Any contingent consideration payable is measured at fair value at the acquisition date. If the contingent consideration is classified as equity, then it
is not remeasured and settlement is accounted for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are
recognised in profit or loss as finance income or costs.
Written put options to acquire a non-controlling interest are accounted for by the anticipated-acquisition method. The fair value of the consideration
payable is included in financial liabilities; future changes in the carrying value of the put option are recognised in profit or loss.
The Group measures goodwill at the acquisition date as:

• the fair value of the consideration transferred
• plus the recognised amount of any non-controlling interest in the acquiree
• plus, if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the acquiree
• less the net recognised amount (at fair value) of the identifiable assets acquired and liabilities assumed
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports
provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or
additional assets or liabilities are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition date
that, if known, would have affected the amounts recognised as at that date.
132
CONSOLIDATED Subsidiaries
FINANCIAL Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its
STATEMENTS
involvement with the entity and has the ability to affect those returns through its power over the entity. The financial statements of subsidiaries are
COMPANY included in the consolidated financial statements from the date that control commences until the date that control ceases.
FINANCIAL
STATEMENTS
Interests in equity-accounted investees
The Group’s interests in equity-accounted investees comprise interests in associates. Associates are those entities in which the Group has significant
OTHER
INFORMATION
influence, but no control over the financial and operating policies.
Interests in associates are accounted for using the equity method. They are recognised initially at cost, which includes transaction costs. Subsequent to
initial recognition, the consolidated financial statements include the Group’s share of the profit or loss and OCI of equity-accounted investees, until the
date on which significant influence ceases.
Transactions eliminated on consolidation

Intra-group balances and transactions, and any unrealised income and expenses arising from intra-group transactions, are eliminated when preparing
the consolidated financial statements. Unrealised gains arising from transactions with equity-accounted investees are eliminated against the
investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to
the extent that there is no evidence of impairment.
3.b Foreign currency

Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currencies of Group entities at exchange rates at the date of the
transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the functional currency at the
exchange rate at that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in the functional currency at
the beginning of the period, adjusted for effective interest and payments during the period, and the amortised cost in foreign currency translated at the
exchange rate at the end of the year.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the functional currency at the
exchange rate at the date that the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign currency are
translated using the exchange rate at the date of the transaction.
Foreign currency differences arising on translation are recognised in profit or loss, except for differences arising on the translation of financial liabilities
designated as qualifying cash flow hedges, which are recognised in other comprehensive income.
Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into Euro at exchange
rates at the reporting date. The income and expenses of foreign operations are translated into Euro at an average rate for the month in which the
transactions occurred. However, if exchange rates fluctuate significantly, the use of the average rate for a period is inappropriate and exchanges rates at
the date of transactions are used.
133
CONSOLIDATED Foreign currency differences on the translation of foreign operations to the functional currency of the group are recognised in other comprehensive
FINANCIAL income, and accumulated in the translation reserve, except to the extent that the translation difference is allocated to non-controlling interests.
STATEMENTS
COMPANY When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future, foreign
FINANCIAL exchange gains and losses arising from such a monetary item are considered to form part of a net investment in a foreign operation and are recognised
STATEMENTS
in other comprehensive income and are presented in the translation reserve in equity.
OTHER
INFORMATION
3.c Financial instruments
Non-derivative financial assets
Financial assets are classified on the basis of the business model within which they are held and their contractual cash flow characteristics.
The Group initially recognises trade and other receivables that qualify as financial assets and deposits on the date that they are originated. All other
financial assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which the Group becomes a
party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the
contractual cash flows on the financial asset in a transaction in which substantially all the risks and rewards of ownership of the financial asset are
transferred. Any interest in transferred financial assets that is created or retained by the Group is recognised as a separate asset or liability.
Financial assets and liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group has a legal
right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.
The Group has the following non-derivative financial assets:

• trade and other receivables
• cash and cash equivalents
• other financial assets
Trade and other receivables

Trade and other receivables are financial assets held to collect the contractual cash flows. Trade receivables are recognised initially at transaction price
minus expected credit losses. Other receivables are recognised initially at fair value plus any directly attributable transaction costs minus expected
credit losses. Subsequent to initial recognition trade and other receivables are measured at amortised cost using the effective interest method, less any
impairment losses.
Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with original maturities of three months or less.
Non-derivative financial liabilities

The Group initially recognises debt securities issued and subordinated liabilities on the date that they originate. All other financial liabilities are
recognised initially on the trade date, which is the date that the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial liability when its contractual obligations are discharged, cancelled or expired.
134
CONSOLIDATED The Group classifies non-derivative financial liabilities into the other financial liabilities category. Such financial liabilities are recognised initially at fair
FINANCIAL value plus any directly attributable transaction costs. Subsequent to initial recognition, these financial liabilities are measured at amortised cost using
STATEMENTS
the effective interest method.
COMPANY
FINANCIAL Other financial liabilities comprise loans and borrowings, other short-term financial liabilities, and trade and other payables that qualify as
STATEMENTS
financial liabilities.
OTHER
INFORMATION
Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are included as a component of cash and
cash equivalents.
Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares are recognised as a deduction from
equity, net of any tax effects.
When shares recognised as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, net of any tax
effects, is recognised as a deduction from equity. Repurchased shares are classified as treasury shares and are presented in the reserve own shares.
When treasury shares are sold or reissued subsequently, the amount received is recognised as an increase in equity, and the resulting surplus or deficit
on the transaction is presented within share premium.
Derivative financial instruments, including hedge accounting

The Group holds derivative financial instruments to hedge its foreign currency and interest rate risk exposures.
On initial designation of the hedge, the Group formally documents the relationship between the hedging instrument(s) and hedged item(s), including
the risk management objectives and strategy in undertaking the hedge transaction, together with the methods that will be used to assess the
effectiveness of the hedging relationship. The Group makes an assessment, both at the inception of the hedge relationship as well as on an ongoing
basis, whether the hedging instruments are expected to be effective in offsetting the changes in the fair value or cash flows of the respective hedged
items attributable to the hedged risk, and whether the following conditions are met:
• there is an economic relationship between the hedged item and the hedging instrument;
• the effect of credit risk does not dominate the value changes that result from that economic relationship; and
• the hedge ratio is the same as that resulting from actual quantities of hedged items and hedging instruments used for risk management.
For a cash flow hedge of a forecast transaction, the transaction should be highly probable to occur and should present an exposure to variations in cash
flows that could ultimately affect reported profit or loss.
Derivatives are recognised initially at fair value at trading date; attributable transaction costs are recognised in profit or loss as incurred. Subsequent to
initial recognition, derivatives are measured at fair value, and changes therein are accounted for as described below.
135
CONSOLIDATED Cash flow hedges

FINANCIAL When a derivative is designated as the hedging instrument in a hedge of the variability in cash flows attributable to a particular risk associated with a
STATEMENTS
recognised asset or liability or a highly probable forecast transaction that could affect profit or loss, the effective portion of changes in the fair value of
COMPANY the derivative is recognised in other comprehensive income and presented in the hedging reserve in equity.
FINANCIAL
STATEMENTS
Any ineffective portion of changes in the fair value of the derivative is recognised immediately in profit or loss.
OTHER
INFORMATION
When the hedged item is a non-financial asset, the amount accumulated in equity is included in the carrying amount of the asset when the asset is
recognised. In other cases the amount accumulated in equity is reclassified to profit or loss in the same period that the hedged item affects profit or
loss. If the hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for
that designated hedging relationship remains the same, the hedge ratio will be adjusted so that it meets the qualifying criteria again. If the hedging
instrument ceases to meet the qualifying criteria for hedge accounting, expires or is sold, terminated or exercised, or the designation is revoked, then
hedge accounting is discontinued prospectively. If the forecasted transaction is no longer expected to occur, the balance in equity is reclassified to profit
or loss.
Other non-trading derivatives

When a derivative financial instrument is not designated in a hedging relationship that qualifies for hedge accounting, all changes in its fair value are
recognised immediately in profit or loss.
3.d Property, plant and equipment

Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. Cost may also include transfers from equity of any gain or loss
on qualifying cash flow hedges of foreign currency purchases of property, plant and equipment. Purchased software that is an integral part of the
functionality of the related equipment is capitalised as part of that equipment.
If major components of an item of property, plant and equipment have different useful lives, these components are accounted for separately.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying
amount of property, plant and equipment and are recognised in profit or loss.
Subsequent expenditure
Subsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure will flow to the Group.
The costs of the day-to-day servicing of property, plant and equipment are recognised in profit or loss as incurred.
Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are assessed and if a component has a
useful life that is different from the remainder of that asset, that component is depreciated separately.
136
CONSOLIDATED Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and
FINANCIAL equipment. Right of use assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the Group will
STATEMENTS
obtain ownership by the end of the lease term. Land is not depreciated.
COMPANY
FINANCIAL The estimated useful lives for the current and comparative years are as follows:
STATEMENTS
Buildings : 20 - 40 years
OTHER
Reconstructions and improvements : 5 - 12 years
INFORMATION
Hardware and software : 3 - 5 years
Other non-current tangible assets : 3 - 5 years
Depreciation methods, useful lives and residual values are reviewed at each financial year end and adjusted if appropriate.
3.e Intangible assets

Goodwill
Goodwill arising on the acquisition of subsidiaries is included in intangible assets. Goodwill is measured at cost less accumulated impairment losses. On
disposal of a business, business segment or cash generating unit, the attributable amount of goodwill is assessed and included in the determination of
the profit and loss on disposal.
Other intangible assets

Supplier relations
At acquisition date, the supplier relations are recognised at fair value based on the excess earnings method. For all material supplier bases the initial
valuation has been performed by an external valuator. Subsequent measurement is based on costs less amortisation. The estimation of the useful life
of each supplier base is usually based on a cut-off calculation that excludes future years from the remaining useful life that account for less than 5% of
the total present value of the excess earnings, unless this leads to a calculated useful life not being a proper representation of the actual useful life of the
supplier relations.
Intellectual property rights, distribution rights, brand names and other intangible assets
In addition to supplier relations, intangible assets include intellectual property rights, distribution rights, brand names, order books acquired and non-
compete rights. Other intangible assets acquired as part of business combinations are measured on initial recognition at their fair value on the date
of acquisition. Intangible assets acquired separately are measured at cost, where intangible assets with indefinite useful lives are carried at cost less
accumulated impairment losses.. Subsequently, intangible assets which have finite useful lives are measured at cost less accumulated amortisation and
accumulated impairment losses.
Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific
asset to which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit or loss as incurred.
Amortisation
Amortisation is based on the cost of an asset less its residual value. Amortisation is recognised in profit or loss on a straight-line basis over the
estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.
137
CONSOLIDATED The estimated useful lives for the current and comparative years are as follows:
FINANCIAL
STATEMENTS
IMCD brand name : indefinite
COMPANY Intellectual property rights : 7 years
FINANCIAL Supplier relations acquired through : 5 - 20 years
STATEMENTS business combinations
Other distribution, non-compete rights and : (initial) contract term
OTHER order books
INFORMATION
Amortisation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.
3.f Leases
The Group assesses at inception of the contract whether a contract is or contains a lease. The Group recognises a right-of-use asset and a
corresponding lease liability with respect to all lease arrangements in which it is the lessee except for short-term leases (defined as leases with a lease
term of 12 months or less) and low-value leases. For these leases the Group recognises the lease payments as operating expenses on a straight-line
basis over the term of the lease.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the
rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise:

• Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable
• Variable lease payments that depend on an index or rate, initially measured using the index or rate at the commencement date
• The amount expected to be payable by the lessee under residual value guarantees
• The exercise price of purchase options, if the lessee is reasonably certain to exercise the options and
• Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate the lease
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest
method) and by reducing the carrying amount to reflect the lease payments made.
The Group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset) whenever:
• The lease term has changed or there is a significant event or change in circumstances resulting in a change in the assessment of exercising a purchase
option, in which case the lease liability is remeasured by discounting the revised lease payments using a revised discount rate.
• The lease payments change due to changes in an index or rate or a change in expected payment under a guaranteed residual value, in which cases the
lease liability is remeasured by discounting the revised lease payments using an unchanged discount rate (unless the lease payments change is due to
a change in a floating interest rate, in which case a revised discount rate is used).
• A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case the lease liability is remeasured
based on the lease term of the modified lease by discounting the revised lease payments using a revised discount rate at the effective date of
the modification.
The Group did not make any such adjustments during the periods presented.
138
CONSOLIDATED The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement
FINANCIAL date, less any lease incentives received, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or
STATEMENTS
to restore the underlying asset or the site on which it is located. They are subsequently measured at cost less accumulated depreciation or amortisation
COMPANY and impairment losses.
FINANCIAL
STATEMENTS
Right-of-use assets are amortised or depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers
ownership of the underlying asset or the cost of the right-of-use asset reflects that the Group expects to exercise a purchase option, the related
OTHER
INFORMATION
right-of-use asset is depreciated or amortised over the useful life of the underlying asset. The depreciation or amortisation starts at the commencement
date of the lease.
The Group applies IAS 36 to determine whether a right-of-use asset is impaired and accounts for any identified impairment loss as described in
note 3.h.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the right-of-use asset. The related
payments are recognised as an expense in the period in which the event or condition that triggers those payments occurs and are included in the line
“Other operating expenses” in profit or loss.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components, and instead account for any lease and associated non-lease
components as a single arrangement. The Group has not used this practical expedient. For a contract that contains a lease component and one or more
additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative
stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’ and 'intangible assets'
and lease liabilities in ‘loans and borrowings’ in the statement of financial position.
3.g Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the weighted average method and includes
expenditure incurred in acquiring the inventories, conversion costs and other costs incurred in bringing them to their existing location and condition.
Cost also may include transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of inventories.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
3.h Impairment
Financial assets
An allowance for expected credit losses (ECL) is recognised for all financial assets not carried at fair value through profit or loss.
An ECL is determined as the difference between the contractual cash flows and the estimated expected cash flows to be collected, considering the
potential risk of default.
139
CONSOLIDATED An ECL is provided for a credit loss that results from a loss event possible within the next 12 months (a 12-month ECL). For credit exposures with a
FINANCIAL significant increase in credit risk a lifetime ECL is recognised and assessed at each reporting date to determine whether there is objective evidence that
STATEMENTS
it is impaired.
COMPANY
FINANCIAL Objective evidence that financial assets require an ECL can include the default of or delinquency by a debtor, restructuring of an amount due to the
STATEMENTS
Group on terms that the Group would not consider otherwise, indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment
status of borrowers or issuers or observable data indicating that there is a measurable decrease in expected cash flows from a group of financial assets.
OTHER
INFORMATION
A simplified approach is used to determine the ECL for trade receivables, contract assets and lease receivables. A loss allowance is determined based on
lifetime ECL on each reporting date.
The Group considers evidence of impairment for receivables at both a specific asset and collective level. All individually significant receivables are
assessed for specific impairment. All individually significant receivables found not to be specifically impaired are then collectively assessed for any
impairment that has been incurred but not yet identified. Receivables that are not individually significant are collectively assessed for impairment by
grouping together loans and receivables with similar risk characteristics.
A provision matrix is used to determine the expected credit loss based on the Group’s historical trends of incurred losses, allocated to each aging
category, adjusted for specific debtor provisions, insurance coverage and general economic developments. Management judges whether current
economic and credit conditions are such that the actual losses are likely to be greater or less than suggested by historical trends. An impairment loss
in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the
estimated future cash flows discounted at the asset’s original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance
account against loans and receivables or held-to-maturity investment securities. Interest on the impaired asset continues to be recognised.
When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss.
Equity accounted investees

An impairment loss in respect of an equity accounted investee is measured by comparing the recoverable amount of the investment with its carrying
amount. An impairment loss is recognised in profit or loss and is reversed if there has been a favourable change in the estimates used to determine the
recoverable amount.
Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date
to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. For
goodwill and other intangible assets that have indefinite useful lives or that are not yet available for use, the recoverable amount is estimated at the
reporting date.
An impairment loss is recognised if the carrying amount of an asset or its related cash generating unit (CGU) exceeds its estimated recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs of disposal.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets that cannot be tested
140
CONSOLIDATED individually are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the
FINANCIAL cash inflows of other assets or CGUs. Subject to an operating segment ceiling test, for the purposes of goodwill impairment testing, CGUs to which
STATEMENTS
goodwill has been allocated are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is
COMPANY monitored for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to benefit from
FINANCIAL the synergies of the combination.
STATEMENTS
The Group’s corporate assets do not generate separate cash inflows and are utilised by more than one CGU. Corporate assets are allocated to CGUs on
OTHER
INFORMATION
a reasonable and consistent basis and tested for impairment as part of the testing of the CGU to which the corporate asset is allocated.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce the carrying amount of
any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other assets in the CGU (group of CGUs) on a pro
rata basis.
An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying
amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had
been recognised.
3.i Employee benefits

Defined contribution plans
A defined contribution plan is a post-employment benefit plan under which an entity pays fixed contributions to a separate entity and will have no legal
or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an employee
benefit expense in profit or loss in the periods during which services are rendered by employees. Prepaid contributions are recognised as an asset to the
extent that a cash refund or a reduction in future payments is available.
Defined benefit plans

A defined benefit plan is a post-employment benefit plan other than a defined contribution plan. The Group’s net obligation in respect of defined benefit
pension plans is calculated separately for each plan by estimating the amount of future benefit that employees have earned in return for their service in
the current and prior periods; that benefit is discounted to determine its present value.
The obligation arising from these defined benefit plans are determined on the basis of projected unit credit method. The calculation of the defined
benefit obligations is performed annually by qualified actuaries.
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the
effect of the asset ceiling (if any, excluding interest), are recognised immediately in OCI. The Group determines the net interest expense (income) on
the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of
the annual period to the then-net defined benefit liability (asset), taking into account any changes in the net defined benefit liability (asset) during the
period as a result of contributions and benefit payments. Net interest expense and other expenses related to defined benefit plans are recognised in
profit or loss.
141
CONSOLIDATED When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on
FINANCIAL curtailment is recognised immediately in profit or loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the
STATEMENTS
settlement occurs.
COMPANY
FINANCIAL Other long-term employee benefits
STATEMENTS
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their
service in the current and prior periods. That benefit is discounted to determine its present value.
OTHER
INFORMATION
The calculation of the other long-term employee benefits is performed using the projected unit credit method. Any actuarial gains and losses are
recognised in profit or loss in the period in which they arise.
Termination benefits
Termination benefits are expensed at the earlier of when the Group can no longer withdraw the offer of those benefits and when the Group recognises
costs for restructuring. If benefits are not expected to be settled wholly within 12 months of the end of the reporting period, then these benefits
are discounted.
Share based payment transactions

The grant date fair value of equity-settled share based payment awards granted to employees is recognised as personnel expenses, with a
corresponding increase in equity, over the vesting period of the awards. The grant date fair value is generally equal to the share price at the grant date,
adjusted for:
1. expected dividends
2. marketability discounts for restriction periods (using the Finnerty model)
3. market conditions (using Monte Carlo simulations)
The amount recognised as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions
are expected to be met, such that the amount ultimately recognised is based on the number of awards that meet the related service and non-market
performance conditions at the vesting date.
Short-term employee benefits

Short-term employee benefit obligations are expensed as the related service is provided. A liability is recognised for the amount expected to be paid
under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee, and the obligation can be estimated reliably.
3.j Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is
probable that an outflow of resources will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows
at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount
is recognised as finance cost.
A provision for restructuring is recognised when the Group has approved a detailed and formal restructuring plan, and the restructuring either has
commenced or has been announced publicly. Future operating costs are not provided for.
142
CONSOLIDATED 3.k Revenue

FINANCIAL Sale of goods
STATEMENTS
Revenue from the sale of goods in the course of ordinary activities is recognised when the performance obligation is satisfied and transfer of control is
COMPANY established. The amount recognised is the amount of the transaction price allocated to the performance obligation.
FINANCIAL
STATEMENTS
If the consideration promised in a contract includes a variable amount, such as discounts and/or rebates, the Group estimates the amount of
consideration to which the Group will be entitled in exchange for the sale of goods.
OTHER
INFORMATION
The timing of the transfer of control varies depending on the individual terms of the sales agreement.
Commissions
When the Group arranges to provide goods from the supplier to the customer and does not obtain control over the goods, the Group acts in the capacity
of an agent rather than as the principal. The revenue arising from such a transaction is recognised as the net amount of commission made by the Group.
3.l Finance income and expenses

Finance income comprises interest income on funds invested and gains on hedging instruments that are recognised in profit or loss. Interest income is
recognised using the effective interest method.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and contingent consideration, impairment losses
recognised on financial assets (other than trade receivables) and losses on hedging instruments that are recognised in profit or loss.
Finance income and expenses includes results of changes of the fair value of contingent considerations classified as financial liabilities.
Borrowing costs that are not directly attributable to the acquisition of a qualifying asset are recognised in profit or loss using the effective
interest method.
Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether foreign currency
movements are in a net gain or net loss position.
3.m Income tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to
a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at
the reporting date and any adjustment to tax payable in respect of previous years. Current tax payable also includes any tax liability arising from the
declaration of dividends.
Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for taxation purposes.
143
CONSOLIDATED Deferred tax is not recognised for:

FINANCIAL • temporary differences on the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither
STATEMENTS
accounting nor taxable profit or loss
COMPANY • temporary differences related to investments in subsidiaries to the extent that it is probable that they will not reverse in the foreseeable future
FINANCIAL • taxable temporary differences arising on the initial recognition of goodwill
STATEMENTS
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or
OTHER
INFORMATION
substantively enacted at the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income
taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on
a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is probable that future
taxable profits will be available against which they can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent
that it is no longer probable that the related tax benefit will be realised.
3.n Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including
revenues and expenses that relate to transactions with any of the Group’s other components. The segmentation used by the Group is based on
geography, organisation and management structure and commercial interdependencies.
Segment results that are reported to the CEO include items directly attributable to a segment as well as those that can be allocated on a reasonable
basis. Unallocated items comprise mainly corporate assets (primarily the Company’s headquarters), head office expenses, and income tax assets and
liabilities and are presented in a separate reporting unit ‘Holding companies’.
The reporting segments used are defined as follows:

• EMEA: all operating companies in Europe, Turkey, Israel, United Arab Emirates, Saudi Arabia and Africa
• Americas: all operating companies in the United States, Canada, Brazil, Puerto Rico, Chile, Argentina, Uruguay, Colombia, Mexico, Peru, Costa Rica,
Dominican Republic
• Asia-Pacific: all operating companies in Australia, New Zealand, India, Bangladesh, China, Malaysia, Indonesia, Philippines, Thailand, Singapore,
Vietnam, Japan and South Korea
• Holding companies: all non-operating companies, including the head office in Rotterdam and the regional offices in Singapore and in New Jersey, US.
4 Determination of fair values

A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-financial assets and
liabilities. Fair values have been determined for measurement and/or disclosure purposes based the methods described below. When applicable,
further information about the assumptions made in determining fair values is disclosed in the notes specific to that asset or liability and in Note 33
Financial Instruments.
144
CONSOLIDATED Property, plant and equipment

FINANCIAL The fair value of property, plant and equipment recognised as a result of a business combination is the estimated amount for which a property could
STATEMENTS
be exchanged on the date of acquisition between a willing buyer and a willing seller in an at arm’s-length transaction after proper marketing wherein
COMPANY the parties had each acted knowledgeably. The fair value of items of plant, equipment, fixtures and fittings is based on the market approach and
FINANCIAL cost approaches using quoted market prices for similar items when available and replacement cost when appropriate. Depreciated replacement cost
STATEMENTS
estimates reflect adjustments for physical deterioration as well as functional and economic obsolescence.
OTHER
INFORMATION
Intangible assets
The fair value of other intangible assets acquired in a business combination is based on the discounted cash flows expected to be derived from the use
and eventual sale of the assets.
Inventories
The fair value of inventories acquired in a business combination is determined based on the estimated selling price in the ordinary course of business
less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to complete and sell the inventories.
Forward exchange contracts and interest rate swaps

The fair value of forward exchange contracts is based on their quoted price, if available. If a quoted price is not available, then fair value is estimated by
discounting the difference between the contractual forward price and the current forward price for the residual maturity of the contract using a risk-free
interest rate (based on government bonds).
The fair value of interest rate swaps is based on quotes acquired from financial institutions. Fair values reflect the credit risk of the instrument and
include adjustments to take account of the credit risk of the Group entity and counterparty when appropriate.
Other non-derivative financial liabilities

Fair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash flows, discounted
at the market rate of interest at the reporting date. For finance leases the market rate of interest is determined by reference to similar lease agreements.
Contingent considerations
The fair value of contingent considerations is calculated using the income approach based on the expected payment amounts and their associated
probabilities (i.e. probability-weighted). Contingent considerations with a term longer than one year are discounted to present value.
Defined benefit plans

The fair value of the plan assets is based on the actuarial assumptions determined by certified actuaries.
5 Financial risk management

5.a Risk management framework
Risk management tasks and responsibilities
The IMCD risk management policy is aimed at optimising the balance between maximisation of business opportunities within the framework of the
Group's strategy, while managing the risks involved.
145
CONSOLIDATED Although the Group benefits from geographical, market, client and product portfolio spread, the Group’s well structured risk management process
FINANCIAL should manage its residual risks in a transparent and controlled manner.
STATEMENTS
COMPANY The Group's risk management and control systems are established to identify and analyse the risks faced by the Group at various levels, to set
FINANCIAL appropriate risk controls, and to monitor risks and the way the risks are controlled.
STATEMENTS
Key activities within the Group´s risk management and control systems are:
OTHER
INFORMATION
• identification of key business risks, based on likelihood of occurrence and their potential impact
• setting controls for managing these key risks
Risk management elements

The elements of IMCD’s risk management system are the following:
Control environment, including:

• organisational culture based on ethical conduct and compliance, clear responsibilities and short and open communication lines
• IMCD’s policies including business principles, management instructions and manuals
• continuous compliance training of employees
• risk management embedded in the business processes on all organisational levels
• internal financial reviews and risk assessments performed by the Group, in accordance with Internal Audit
Risk assessment and control procedures, including:

• identification of risks via risk self-assessments coordinated by Corporate Control and Corporate HSEQ
• implementing and optimisation of effective and efficient control procedures on various levels in the organisation
Information, communication and monitoring, including:

• harmonised reporting on operations, financial results and positions and risks
• periodical reviews of financial results and risk management by the Management Board and Corporate Control
• periodical reviews on HSEQ management by Corporate HSEQ
• regular review meetings between Group and local management
The Management Board, under supervision of the Supervisory Board, has overall responsibility for the IMCD risk management and control systems.
Management of regional and operating companies is responsible for local operational performance and for managing the associated local risks.
5.b Overview financial risks

The Group has exposure to the following financial risks:
• credit risk
• liquidity risk
• market risk
• operational risk
146
CONSOLIDATED This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes for
FINANCIAL measuring and managing risk, and the Group’s management of capital. Further quantitative disclosures are included throughout these consolidated
STATEMENTS
financial statements.
COMPANY
FINANCIAL 5.c Credit risk
STATEMENTS
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and
arises principally from the Group’s receivables from customers.
OTHER
INFORMATION
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the
demographics of the Group’s customer base, including the default risk of the industry and country in which customers operate, as these factors may
have an influence on credit risk. This has been of increased importance due to the COVID-19 pandemic. There is no geographical concentration of credit
risk nor significant credit risk on individual customer level.
The Group has established a credit policy in which each new customer is analysed individually for creditworthiness before the Group’s payment and
delivery terms and conditions are offered. The Group’s review includes the use of external ratings, when available, and in some cases bank references.
Purchase limits are established for each customer, which represent the maximum open amount. These limits are reviewed periodically.
Customers that fail to meet the Group’s benchmark creditworthiness may transact with the Group only on a prepayment basis.
At the reporting date, there were no significant concentrations of credit risk. The maximum exposure to credit risk is represented by the carrying
amount of each financial asset.
The Group establishes an allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. The
main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component
established for groups of similar assets in respect of losses that are expected but not yet identified. The collective loss allowance is determined based
on historical data of payment statistics for similar financial assets, adjusted for forward-looking information.
To mitigate the counterparty risk with financial institutions the Group's policy is to make use of financial institutions which are investment grade. The
Group’s main financial institutions are systemically important and are under close supervision by their respective financial regulatory bodies.
5.d Liquidity risks

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by
delivering cash or another financial asset. The Group’s approach to manage liquidity is to ensure, as far as possible, that it will always have sufficient
cash to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the
Group’s reputation.
The Group typically ensures that it generally has sufficient cash on demand to meet expected operational expenses for the next twelve months,
including the servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be predicted.
In addition, the Group maintains the following lines of credit:
147
CONSOLIDATED • EUR 500 million revolving facility. Interest would be payable at the rate of EURIBOR plus the currently applicable 100 base points for amounts drawn in
FINANCIAL EURO and LIBOR plus currently applicable 100 base points for amounts drawn in USD. As of 31 December 2021, the Group had an undrawn revolving
STATEMENTS
facility of EUR 85 million.
COMPANY • Several credit facilities available to the subsidiaries, mainly in Spain, Australia, India, Indonesia, United States and South Africa.
FINANCIAL
STATEMENTS
The following are the contractual maturities of financial liabilities, including estimated interest payments. The contractual cash flows are undiscounted.
OTHER
INFORMATION 31 DECEMBER 2021
CARRYING CONTRACTUAL 12 MONTHS OR

EUR 1,000 AMOUNT CASH FLOWS LESS 1 - 2 YEARS 2 - 5 YEARS >5 YEARS
Non-derivative non-current financial liabilities

Schuldscheindarlehen EUR 39,942 41,210 605 40,605 - -
Bond loan EUR 297,586 330,000 7,500 7,500 315,000 -
Contingent consideration INR 213,772 218,214 - - 218,214 -
IDR 59,386 59,386 - - 59,386 -
CNY 2,085 2,085 - 2,085 - -
1
Lease liabilities 52,712 57,625 - 15,767 25,967 15,891
Other liabilities EUR 1,369 1,369 - 1,369 - -
Total 666,853 709,889 8,105 67,326 618,567 15,891
Non-derivative current financial liabilities
Contingent consideration COP 4,942 4,942 4,942 - - -
MXN 1,607 1,607 1,607 - - -
KRW 15,916 16,084 16,084 - - -
IDR 10,160 10,160 10,160 - - -
EUR 989 989 989 - - -
1
Lease liabilities 18,017 20,187 20,187 - - -
1
Other short-term financial liabilities 399,420 399,420 399,420 - - -
1
Trade payables 403,010 403,010 403,010 - - -
1
Other payables 130,093 130,093 130,093 - - -
Total 984,153 986,491 986,491 - - -
1 Various currencies
148
CONSOLIDATED 31 DECEMBER 2020 1

FINANCIAL
STATEMENTS CARRYING CONTRACTUAL 12 MONTHS OR
EUR 1,000 AMOUNT CASH FLOWS LESS 1 - 2 YEARS 2 - 5 YEARS >5 YEARS
COMPANY
FINANCIAL Non-derivative non-current financial liabilities
STATEMENTS
Schuldscheindarlehen EUR 39,835 42,543 1,332 605 40,606 -
Bond loan EUR 296,857 337,500 7,500 7,500 322,500
OTHER
INFORMATION Contingent consideration IDR 2,600 2,685 - - - 2,685
KRW 15,604 15,916 - 15,916 - -
INR 172,129 176,011 - - 176,011 -
EUR 969 1,000 - 1,000 - -
Lease liabilities 51,677 57,834 - 15,811 25,328 16,695
Other liabilities EUR 1,538 1,538 - 676 862 -
Total 581,209 635,027 8,832 41,508 565,307 19,380
Non-derivative current financial liabilities
Schuldscheindarlehen EUR 60,000 60,644 60,644 - - -
Schuldscheindarlehen USD 20,373 21,870 21,870 - - -
Contingent consideration INR 1,589 1,589 1,589 - - -
CHF 653 741 741 - - -
2
Lease liabilities 17,310 19,181 19,181 - - -
2
Other short-term financial liabilities 214,887 214,887 214,887 - - -
2
Trade payables 291,844 291,844 291,844 - - -
2
Other payables 102,443 102,443 102,443 - - -
Total 709,100 713,199 713,199 - - -
1 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statements
Estimated interest payments are based on the EURIBOR and LIBOR rates and margins prevailing at 31 December 2021 and 2020. Further details of the
non-derivative financial liabilities can be found in Note 29.
5.e Market risks

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s income or the value of its
holdings of financial instruments. Group management focuses on managing and controlling market risk exposures within acceptable parameters, while
optimising the operating result.
The Group buys derivatives, and also incurs financial liabilities, in order to manage market risks. All such transactions are carried out within the
guidelines set by Group Management. The Group generally seeks to use hedging instruments to manage volatility in profit or loss.
149
CONSOLIDATED Currency risk

FINANCIAL The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional
STATEMENTS
currencies of Group entities, primarily the Euro (EURO), United States of America Dollar (USD) and the Pound Sterling (GBP).
COMPANY
FINANCIAL The Group uses forward exchange contracts to hedge its currency risk, mainly by using contracts having a maturity of less than one year from the
STATEMENTS
reporting date.
OTHER
INFORMATION
Interest on borrowings is denominated in the currency of the borrowing. Generally, borrowings are denominated in currencies that match the cash flows
generated by the underlying operations of the Group, primarily EUR and USD. This provides an economic hedge without derivatives being entered into.
Hedge accounting is not applied in these circumstances.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group’s policy is to ensure that its net exposure is kept to an
acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
Exposure to currency risk

The Group’s net exposure to foreign currency risk based on notional and hedged amounts of monetary assets and liabilities was as follows:
31 DECEMBER 2021
EUR 1,000 USD CAD BRL AUD INR CHF KRW ZAR GBP IDR OTHER TOTAL
Non-current assets 126 360 371 - 997 5 318 6 - 33 810 3,027
Current assets 207,766 9,252 33,363 29,735 100,188 (2,813) 22,780 17,758 25,484 31,382 114,167 589,062
-
Non-current liabilities (12,510) (7,097) (965) (5,825) (215,295) (400) (77) (12) (465) (60,385) (9,332) (312,363)
Current liabilities (322,526) (16,197) (12,301) (16,125) (6,813) (2,831) (2,710) (5,588) (19,817) (15,870) (73,938) (494,716)
Net statement of currency
risk exposure (127,143) (13,682) 20,468 7,786 (120,923) (6,039) 20,310 12,164 5,202 (44,840) 31,707 (214,990)
31 DECEMBER 2020
EUR 1,000 USD CAD BRL AUD INR CHF KRW ZAR GBP IDR OTHER TOTAL
Non-current assets 86 314 368 - 443 5 319 6 - 2,707 - 4,248
Current assets 155,507 8,151 24,606 26,405 98,974 (2,390) 16,111 14,169 19,221 8,861 154369,768
-
Non-current liabilities (12,675) (7,793) (1,306) (5,186) (173,686) (692) (54) (23) (641) (2,947) (15,559) (220,562)
Current liabilities (239,018) (14,796) (9,107) (12,411) (11,216) (3,218) (3,538) (6,415) (15,229) (1,447) (1,205) (317,600)
Net statement of currency
risk exposure (96,099) (14,125) 14,560 8,808 (85,486) (6,295) 12,839 7,737 3,351 7,173 (16,610) (164,146)
The risk exposure above includes the mitigating effects of hedged net liability positions in USD to the amount of EUR 1.4 million (2020: EUR 13.8 million).
The following significant exchange rates applied during the year:
150
CONSOLIDATED 2021 2020 2021 2020

FINANCIAL
STATEMENTS REPORTING DATE
AVERAGE RATE
SPOT RATE
COMPANY USD 0.843998 0.824827 0.882924 0.814930
FINANCIAL
CAD 0.673515 0.642084 0.694782 0.639673
STATEMENTS
BRL 0.157066 0.156798 0.158232 0.156820
AUD 0.633271 0.622313 0.640410 0.629089
OTHER
INFORMATION INR 0.011427 0.011212 0.011872 0.011153
CHF 0.924676 0.924174 0.967961 0.925755
KRW 0.000739 0.000751 0.000743 0.000749
ZAR 0.056890 0.054881 0.055363 0.055488
GBP 1.161915 1.112669 1.190080 1.112310
IDR 0.000059 0.000059 0.000062 0.000058
Sensitivity analysis
A 10% strengthening of the EUR, as indicated below, against the USD, CAD, BRL, AUD, INR, CHF, KRW, ZAR, GBP and IDR at 31 December 2021 and
2020 would have increased/(decreased) equity and profit or loss by the amounts shown below. This analysis is based on foreign currency exchange rate
variances that the Group considered to be reasonably possible at the reporting date. The analysis assumes that all other variables, in particular interest
rates, remain constant and ignores any impact of forecasted sales and purchases.
EUR 1,000 2021 2021 2020 2020

Profit or Profit or
Equity loss Equity loss
USD (45,917) 15,838 (35,501) 8,758
CAD (7,131) (14) (6,201) (11)
BRL (7,544) - (6,701) -
AUD (7,529) - (6,793) -
INR (41,382) - (38,716) -
CHF (4,920) - (4,833) -
KRW (3,870) - (3,754) -
ZAR (4,535) (26) (2,985) (27)
GBP (4,278) (345) (3,271) (32)
IDR (10,768) - (2,478) -
A 10% weakening of the EUR against the above currencies at 31 December 2021 would have had the equal but opposite effect on the amounts shown
above, on the basis that all other variables remain constant.
Interest rate risk

The Group pursues a policy of ensuring that a substantial part of its exposure to changes in interest rates on long-term financing is on a fixed rate basis,
taking into account assets with exposure to changes in interest rates. If required the Group makes uses of interest rate swap contracts.
151
CONSOLIDATED Interest rate profile

FINANCIAL At the reporting date the interest rate profile of the Group’s interest-bearing financial instruments was:
STATEMENTS
COMPANY EUR 1,000 2021 2020 1

FINANCIAL
Carrying amount
STATEMENTS
Fixed rate instruments

OTHER
INFORMATION
Financial liabilities (312,564) (311,823)
Total (312,564) (311,823)
Variable rate instruments

Financial assets 177,879 169,008
Financial liabilities (530,096) (392,896)
Total (352,217) (223,888)
1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the
Fair value sensitivity analysis for fixed rate instruments

The Group does not account for any fixed rate financial asset and liability at fair value through profit and loss.
Fair value sensitivity analysis for variable rate instruments

Note 29 details the variable interest rates applicable for the non-current loans.
5.f Operational risks

Operational risk is the risk of direct or indirect loss arising from a wide variety of causes associated with the Group’s processes, personnel, technology
and infrastructure and from external factors other than credit, market and liquidity risks such as those arising from legal and regulatory requirements
and generally accepted standards of corporate behaviour. Operational risks arise from all of the Group’s operations.
The Group’s objective is to manage operational risk so as to balance the avoidance of financial losses and damage to the Group’s reputation with overall
cost effectiveness and to avoid control procedures that restrict initiative and creativity.
5.g Capital management

The primary objective when managing capital is to safeguard the Group’s ability to continue as a going concern by means of optimising the debt and
equity balance. The Company does not have an explicit return on capital policy. There have been no changes in the capital management policies during
the year. The Group is not subject to any externally imposed capital requirements. Capital is considered by the Company to be equity as shown in the
statement of financial position.
152
CONSOLIDATED The Group’s net liabilities and adjusted equity at the reporting date are as follows:
FINANCIAL
STATEMENTS
EUR 1,000 2021 2020 1
COMPANY
FINANCIAL Total liabilities 1,809,204 1,444,384
STATEMENTS
Less: Cash and cash equivalents (177,879) (169,008)
Net liabilities 1,631,325 1,275,376
OTHER
INFORMATION
Total equity 1,461,354 1,252,408
Less: Amounts accumulated in equity relating to cash
100 206
flow hedges
Adjusted equity 1,461,454 1,252,614
6 Operating segments
In presenting information on the basis of operating segments, segment revenue is based on the geographical location of the Group´s operations.
Segment assets are based on the geographical location of the assets with the exception of assets related to holding companies, which are presented in a
separate reporting unit.
Transactions between companies within an operating segment have been eliminated; transactions between operating segments are based on
arm’s-length principle.
A key performance indicator for controlling the results of the operating segments is Operating EBITA.
Operating EBITA is defined as the sum of the result from operating activities, amortisation of intangible assets, and non-recurring items. Non-recurring
items include:
• cost of corporate restructurings and reorganisations
• cost related to realised and non-realised acquisitions
While the amounts included in Operating EBITA are derived from the Group’s financial information, it is not a financial measure determined in
accordance with adopted IFRS and should not be considered as an alternative to operating income or result from operating activities as a sole
indicator of the Group’s performance or as an alternative to cash flows as a measure of the Group’s liquidity. The Group uses Operating EBITA as a key
performance indicator in its business operations in order to, among other things, develop budgets, measure its performance against those budgets and
evaluate the performance of its operations.
153
CONSOLIDATED The bridge from result from operating activities to operating EBITA is as follows:
FINANCIAL
STATEMENTS
EUR 1,000 2021 2020 1
COMPANY
FINANCIAL Result from operating activities 305,465 190,380
STATEMENTS
Amortisation of intangible assets 65,460 47,520

OTHER Non-recurring items 2,704 5,251
INFORMATION
Operating EBITA 373,629 243,151
The non-recurring income and expenses included in the result from operating activities of 2021 and 2020 mainly relate to income from divestments,
costs of acquisitions of businesses and costs related to one-off adjustments to the organisation.
Operating expenses of non-operating companies are reported in the segment Holding companies. Inter-segmented amounts receivable and amounts
payable are not considered in the value of the total assets and total liabilities of each segment. The results of the operating segments are as follows:
EMEA
EUR 1,000 2021 2020
Revenue 1,601,597 1,326,926

Gross profit 411,670 337,375
Result from operating activities 154,378 106,739
Total Assets 1,024,665 909,541

Total Liabilities 340,380 286,636
AMERICAS
EUR 1,000 2021 2020
Revenue 1,119,584 945,114

Gross profit 250,482 204,222
Total Assets 639,807 488,450

154
CONSOLIDATED ASIA-PACIFIC
FINANCIAL
STATEMENTS
EUR 1,000 2021 2020
COMPANY
FINANCIAL Revenue 714,079 502,877
STATEMENTS
Gross profit 174,164 105,887
OTHER
INFORMATION
Total Assets 1,251,011 955,655

HOLDING COMPANIES
EUR 1,000 2021 2020 1
Operating EBITA (29,310) (26,928)

Result from operating activities (32,308) (27,027)
Total Assets 355,075 343,148

Reported revenue per segment relates to revenue with third parties, hence no inter-segment revenues are included. IMCD and its operating segments
have a diverse customer base of about 56,000 customers in many countries and of various sizes. IMCD and its segments do not rely on a single
customer or a single group of customers for its operations. With a supplier base of approximately 2,600 suppliers and product portfolio of about 43,000
products, the same applies with regard to the reliance on a single supplier or a single group of suppliers and a single product or range of products.
7 Acquisition of subsidiaries
The Group completed eight acquisitions during the financial year 2021. In addition IMCD signed four share purchase agreements for acquisitions to be
completed in 2022 (numbers are local GAAP):
On 6 January 2021, IMCD acquired 100% of the shares in Ejder Kimya Ilaç DanışmanlıkSanayi ve Ticaret A.Ş. ("Ejder Kimya"). Ejder Kimya is a Turkish
chemicals distributor of raw materials for personal care and pharmaceutical products and food additives. It has a strong and solid position in the
personal care market in Turkey. Ejder Kimya’s personal care business generated a revenue of approximately EUR 6 million in 2020. The company is fully
integrated into IMCD Turkey.
155
CONSOLIDATED On 7 January 2021, IMCD acquired the pharmaceutical business of Peak International Products B.V. ("Peak International"). Peak International is
FINANCIAL a Dutch-based distributor in the active pharmaceutical ingredients business for Benelux, Vietnam, Germany and Israel. The Peak pharmaceutical
STATEMENTS
business generated a revenue of approximately EUR 6 million in 2020.
COMPANY
FINANCIAL On 8 January 2021, IMCD acquired 100% of the shares in Siyeza Fine Chem Propriety Limited (“Siyeza”). Siyeza, based in Johannesburg, is a distributor
STATEMENTS
of pharmaceutical, veterinary, food and personal care speciality chemical ingredients in South Africa. With 27 employees, Siyeza generated a revenue
of approximately EUR 16 million in 2020 through their representation of world leading producers from Europe and Asia. The company is fully integrated
OTHER
INFORMATION
into IMCD South Africa.
In April 2021, IMCD divested its Nutri Granulations manufacturing assets and associated business, which was acquired by IMCD as part of the ET-Horn
acquisition in 2018. Located in La Mirada, CA, with 22 employees, Nutri Granulations manufactures foodgrade and USP grade calcium carbonate
granulations for the nutraceuticals, food, and pharmaceuticals markets. Nutri Granulations realised a revenue of USD 11 million in 2020. The divestment
aligns with IMCD’s strategy to focus on the sales, marketing and distribution of speciality chemicals and ingredients. Refer to Note 9 for the income
related to the divestment of Nutri Granulations.
On 14 May 2021, IMCD acquired Siliconas y Químicos ("Siliconas"), based in Bogotá,Colombia. Siliconas is a speciality chemicals distributor and serves
the personal care,coatings, silicones and other speciality industrial markets and perfectly complements IMCD's existing pharmaceuticals, food and
nutrition business in Colombia. Siliconas has 25 employees and generated a revenue of USD 9 million in 2020. IMCD acquired 80% of the shares of
Siliconas; the remaining 20% will be acquired in 2022.
On 19 May 2021, IMCD acquired 100% of the shares in Andes Chemical Corp. (“Andes Chemical”). Headquartered in the Miami metropolitan area,
Andes Chemical is active in Caribbean and Central American countries, Colombia and Peru. Andes Chemical serves the coatings, adhesives, sealants,
and elastomers (CASE), construction, cosmetics, personal care, plastics, pharmaceuticals, and HI&I industries. Andes Chemical has 43 employees and
generated a revenue of USD 46 million in 2020.
On 2 June 2021, IMCD acquired 100% of the shares in Shanghai Yuanhe Chemicals Co. (“Yuanhe”). Yuanhe is a service solution provider focused on
offering innovative speciality chemicals and ingredients for the coatings, inks and textile industry. Yuanhe serves the pharmaceutical, food and nutrition,
plastics and personal care industries. Yuanhe has 20 employees and generated a revenue of EUR 13.2 million in 2020.
On 19 August 2021, IMCD acquired 100% of the shares in Materias Químicas de México S.A. de C.V. and Pluralmex S.A de C.V. (together: “Maquimex”),
based in México City. Maquimex is an asset-light speciality chemicals distributor providing commercial and technical expertise in the preservatives,
HI&I, energy, water treatment and other industrial markets. Maquimex has 44 employees and generated a revenue of approximately USD 29 million
in 2020.
On 29 September 2021, IMCD signed an agreement to acquire 100% of the shares in Aquatech Speciality (Shanghai) International Trading Co., Ltd. and
Aquatech Speciality(Guangzhou) Trading Co., Ltd. (jointly “Aquatech”) in China. Aquatech is active in waterborne solutions in coatings, ink, and textile
industries. Aquatech has 10 employees and generated a revenue of EUR 6.7 million in 2020. The closing of the transaction is expected to take place
early 2022.
On 21 December 2021, IMCD acquired 100% of the shares of PT Megasetia Agung Kimia (“Megasetia”) in Indonesia. Megasetia is a distributor of
speciality ingredients for the pharmaceutical industry and has an excellent fit with IMCD’s life science strategy and provides a significant platform for
156
CONSOLIDATED further growth in the life science segments in Indonesia. The transaction will take place in two tranches, with IMCD acquiring 70% of Megasetia’s share
FINANCIAL capital in 2021 and the remaining 30% in 2025 at the latest. Megasetia has 160 employees and generated a revenue of EUR 60 million in 2020.
STATEMENTS
COMPANY On 22 December 2021, IMCD signed an agreement to acquire 100% of the shares in Polychem Handelsges.m.b.H. (“POLYchem”), a leading provider of
FINANCIAL chemical raw materials and additives in Austria and Southeast Europe. POLYchem offers a diverse portfolio of products for the coatings, construction,
STATEMENTS
as well as the composite industries. POLYchem has 65 employees and generated a revenue of EUR 25 million in 2020. The transaction was closed on
8 February 2022.
OTHER
INFORMATION
The aforementioned transactions, excluding Ejder, Peak and Siyeza, added EUR 61.3 million of revenue and EUR 1.8 million of net profit to the Group’s
results in 2021. Ejder, Peak and Siyeza were excluded as we were unable to identify their contribution due to being merged quickly after closing,
If all acquisitions had occurred on 1 January 2021, management estimates that the consolidated revenue would have been EUR 3,561.1 million and
the consolidated result for the year would have been EUR 215.7 million. In determining these amounts, management has assumed that the fair
value adjustments, determined provisionally, that arose on the date of acquisition would have been the same if the acquisition had occurred on
1 January 2021.
The total consideration related to the aforementioned transactions, transferred in cash in 2021, amounts to EUR 170.1 million. As of 31 December 2021,
the deferred and contingent considerations payable related to the acquisitions completed in 2021 amount to EUR 80.6 million of which EUR 69.2 million
relates to Megasetia. The final consideration amount for Megasetia depends upon meeting certain earnings targets.
The consideration for Megasetia depends on the timing of acquiring the remaining part of the shares, the performance of the company (last twelve
months of EBITDA) and the net cash / debt position at execution date and is therefore subject to uncertainty. This consideration has been discounted to
its present value based on the cost of debt. The sensitivity analysis with respect to the contingent considerations has been disclosed in Note 33.
In addition to the transactions closed in 2021, on 6 December 2021, IMCD signed an agreement to acquire 100% of the shares in Shanghai Syntec
Additive Limited and Shanghai Weike Additive Limited (jointly “Syntec”). Syntec provides market, technical and formulation expertise in China's
personal care, cosmetics, and home care industries. Syntec generated a revenue of approximately EUR 14 million in 2020 and has 25 employees. The
transaction was closed on 18 January 2022.
Furthermore, on 22 December 2021, IMCD signed an agreement to acquire 100% of the shares of RPL Trading Pty Ltd and RPL Trading New Zealand Ltd.
(jointly “RPL Trading”), a speciality chemicals distributor focused on services and formulation expertise for customers and partners in the home care
and water treatment markets. RPL Trading generated a revenue of approximately EUR 16 million for the fiscal year ended on 30 June 2021 and has 15
employees. The transaction was closed on 31 January 2022.
157
CONSOLIDATED Identifiable assets recognised and liabilities assumed

FINANCIAL The recognised amounts of assets acquired and liabilities assumed on the basis of provisional purchase price allocation at the acquisition dates, are as
STATEMENTS
follows:
COMPANY
FINANCIAL
STATEMENTS
OTHER
EUR 1,000 NOTE ANDES CHEMICAL MEGASETIA ACQUISITIONS TOTAL
OTHER
INFORMATION
Property, plant and equipment 17 936 3,099 503 4,539
Intangible assets 18 5,196 27,461 27,614 60,270
Deferred tax assets 23 154 389 869 1,412
Other financial assets 1 9 4 14
Inventories 4,987 14,416 11,108 30,511
Trade and other receivables 16,180 19,273 13,079 48,533
Cash and cash equivalents 2,755 862 7,175 10,792
Loans and borrowings (2,450) (798) (436) (3,683)
Other short-term financial liabilities (232) (3,460) (230) (3,922)
Employee benefits and other provisions 30, 31 (77) (587) (1,798) (2,462)
Deferred tax liabilities 23 (164) (6,042) (6,955) (13,161)
Trade and other payables (12,520) (5,566) (11,205) (29,291)
Total net identifiable assets 14,767 49,054 39,729 103,551
The intangible assets recognised primarily relate to supplier relationships and order books acquired.
The supplier relations have been determined by applying the multi-period excess earnings method. This method considers the present value of net cash
flows expected to be generated by the supplier relationships, by excluding any cash flows related to contributory assets. The cash flows which have
been used as input were based on the projections made by the sellers, adjusted for future supplier losses due to exclusivity conflicts, projected market
developments based on external sources and our own expectations based on our extensive market knowledge. Furthermore, attrition rates are
determined based on the annual decrease in revenues related to suppliers (when applicable) in the most recent financial years, adjusted for annual
inflation. These attrition rates have been applied in the projections. For Megasetia and Andes Chemical the attrition rate applied for the valuation of the
supplier relationships is 10%.
The gross contractual value of the trade and other receivables acquired amounts to EUR 50.9 million of which EUR 16.6 million relates to Andes and
EUR 19.8 million to Megasetia.
The purchase price allocations of the acquisitions closed in 2021 are performed on a provisional basis. This particularly applies to Megasetia, due to the
timing of the closure of the transaction towards the year end. Based on the information currently available we do not anticipate significant adjustments
to the purchase price allocation.
158
CONSOLIDATED Goodwill
FINANCIAL Goodwill recognised as a result of the acquisitions in the financial year is as follows.
STATEMENTS
COMPANY ANDES CHEMICAL

FINANCIAL CENTRO MEGASETIA OTHER ACQUISITIONS TOTAL
STATEMENTS EUR 1,000 NOTE AMERICA, S.R.L
OTHER Total considerations 34,254 140,169 86,825 261,248

INFORMATION
Less: Fair value of identifiable net assets 14,767 49,054 39,729 103,551
Goodwill 18 19,487 91,115 47,096 157,697
Goodwill recognised as a result of the acquisitions in the financial year relates to Andes Chemical, Megasetia, Ejder, Peak International, Siyeza,
Siliconas, Yuanhe and Maquimex. The goodwill is mainly attributable to the skills and technical talent of the workforce, the commercial
relationships, the international network and the synergies expected to be achieved from integrating the acquired companies into the Group's existing
distribution business.
Of the total recognised goodwill, 58% relates to Megasetia, 12% to Andes Chemical, 8% to Ejder Kimya, 8% to Maquimex and 14% to the other
acquired businesses.
Amortisation expenses related to the goodwill paid to the sellers of Peak and Andes Chemical are deductible for corporate income tax purposes.
Total tax-deductible goodwill amounts to EUR 25.4 million. Amortisation of goodwill related to Megasetia, Siyeza, Ejder Kimya, Siliconas, Yuanhe and
Maquimex is not eligible for deduction from taxable income.
The goodwill contains an adjustment of the provisional purchase price allocation for Signet (increase of EUR 41 million), which was acquired in 2020.This
adjustment relates to changes in the assumptions at acquisition date of the projected cash and debt positions at the execution date.
Acquisition-related costs
In 2021, the Group incurred acquisition-related costs of EUR 4.4 million (2020: EUR 2.7 million) predominantly related to external legal fees and due
diligence costs for completed and non-completed acquisitions. The acquisition-related costs are included in other operating expenses.
8 Revenue
The Group generates revenue primarily from the sale and distribution of specialty chemicals and ingredients. Other sources of revenue include revenue
from commission where the Group acts as agent in the sale and distribution of specialty chemicals and ingredients.
EUR 1,000 2021 2020
Sales of goods 3,423,611 2,764,809

Commissions 11,638 10,109
Total Revenue 3,435,250 2,774,918
159
CONSOLIDATED In the following tables, revenue from contracts with customers is disaggregated by primary geographical market and their market segments, being Life
FINANCIAL Science and Industrial.
STATEMENTS
COMPANY Geographical Market

FINANCIAL The breakdown of revenue by geographical market is as follows:
STATEMENTS
EUR 1,000 2021 2020

OTHER
INFORMATION
Netherlands 69,789 57,274
Rest of EMEA 1,531,798 1,269,652
EMEA 1,601,587 1,326,926
North America 892,885 819,696
Latin America 226,699 125,418
Asia-Pacific 714,079 502,877
Total Geographical Market 3,435,250 2,774,918
Market segments
IMCD's business model is based on long lasting relationships with suppliers of speciality chemicals and ingredients. In order to provide more insight in
the segmentation per market, IMCD has decided to break down the sales in the market segments Life Sciences and Industrials.
Life Sciences consists of the following lines of business: Pharmaceuticals, Personal Care and Food & Nutrition. In general, the lines of business within
Life Science historically have been less sensitive to economic fluctuations. Furthermore, the Life Science segment consists of lower order volumes and
higher margins than the Industrials market segment.
The Industrials segment contains the lines of business of Coatings & Constructions, Lubricants & Energy, Synthesis, Advanced Materials and Home
Care & I&I. This segment has a more cyclical nature as the performance is dependent on the developments of, amongst others, the housing and real
estate, automotive and oil & gas markets.
The breakdown of sales of goods per market segment is as follows:
EUR 1,000 2021 2020
Life Science 1,616,104 1,327,782

Industrial 1,807,507 1,437,027
Total Market Segments 3,423,611 2,764,809
160
CONSOLIDATED Performance obligations

FINANCIAL Revenue is measured based on the consideration specified in a contract with a customer. The Group recognises revenue when it transfers control over
STATEMENTS
a good or service to a customer. The nature and timing of the fulfilment of performance obligations is disclosed in contracts with customers upon the
COMPANY sale and distribution of speciality chemicals and ingredients. The Group recognizes revenue when control is transferred which is at the moment that
FINANCIAL ownership is transferred to the customer, primarily based on agreed incoterms.
STATEMENTS
OTHER
INFORMATION 9 Other income
EUR 1,000 2021 2020
Other income 24,254 12,443

Total Other income 24,254 12,443
Other income primarily relates to logistic and other services charged separately to customers. In 2021, other income included non-recurring income of
(EUR 6.2 million) related to the divestment of the Nutri Granulations business in the US, as disclosed in Note 7.
10 Personnel expenses
EUR 1,000 NOTE 2021 2020
Wages and salaries 12 228,739 196,459

Social security contributions 32,086 28,914
Contributions to defined contribution plans 9,683 7,877
Expenses related to defined benefit plans 30 199 1,269
Expenses related to termination and other long-term employee benefit plans 30 1,827 1,519
Other personnel expenses 15,936 12,707
Total Personnel expenses 288,470 248,745
The personnel expenses 2021 include non-recurring severance costs of EUR 4.8 million (2020: EUR 0.8 million).
161
CONSOLIDATED The average number of employees in the financial year by region and by function, measured in full-time equivalents, is as follows:
FINANCIAL
STATEMENTS
FTE 2021 2020
COMPANY
FINANCIAL The Netherlands (excluding Dutch Holding companies) 65 64
STATEMENTS
Rest of EMEA 1,500 1,385
EMEA 1,565 1,449
OTHER
INFORMATION
Americas 928 805
Asia-Pacific 903 767
Holding companies 93 80
Total average FTE 3,489 3,101
Management and administration 519 443

Sales 2,235 2,028
ICT/HSEQ/Warehouse/Other 735 630
Total average FTE 3,489 3,101
11 Non-recurring income and expenses

The non-recurring income and expenses are recognised in profit or loss and are summarised as follows:
EUR 1,000 NOTE 2021 2020
Other operating income 9 6,807 69

Personnel expenses and other operating expenses 10, 13 (9,512) (5,321)
Impact on result before income tax (2,705) (5,252)
Non-recurring income tax expenses 23, 41 (779) -

Impact on result for the year (3,484) (5,252)
The non-recurring income for 2021 includes income related to the divestment of the Nutri Granulations business in the US of EUR 6.2 million. The
non-recurring personnel expenses and other operating expenses for 2021 include severance costs of EUR 4.8 million (2020: EUR 0.8 million) and other
operating expenses of EUR 4.7 million (2020: EUR 4.5 million) related to professional services fees incurred during acquisition projects and subsequent
integration processes.
162
CONSOLIDATED 12 Share based payment arrangements

FINANCIAL
STATEMENTS
Description of the share based payment arrangement
COMPANY As of 1 January 2015, the Group established a long-term incentive plan (LTIP) for the Management Board, the Executive Committee and certain senior
FINANCIAL managers. Under this equity settled LTIP, performance shares are awarded based on certain performance conditions. Aims of the LTIP are long-term
STATEMENTS
value creation, motivation and sharing of success and the retention of key employees.
OTHER
INFORMATION
The applicable performance conditions for the Management Board are:
• relative Total Shareholder Return performance (market-related condition) compared with a selected group of peer companies and
• cash earnings per share (internal performance condition)
The performance period starts every year on 1 January and lasts three financial years. After vesting, the unconditional shares are subject to a holding
period of two years and become unrestricted five years after grant date.
The performance conditions for the Executive Committee and for senior managers are solely internal performance conditions and include:
• growth in cash earnings per share (only for the Executive Committee)
• operating EBITA
• discretionary assessment by the Management Board
The performance period starts every year on 1 January and lasts one year. The shares become unconditional after a service period of three years.
Reconciliation of outstanding performance shares

The number of performance shares granted is as follows:
2021 2020
NUMBER BASED ON NUMBER BASED ON

OF SHARES SHARE PRICE OF SHARES SHARE PRICE
Shares granted to the Management Board 11,501 103.43 15,054 78.03

Shares granted to Executive Committee and certain senior managers 30,055 103.43 40,319 78.03
The total number of performance shares granted in 2021 is based on a target performance (100 per cent) with an upward and downward potential for
the Management Board and the Executive Committee. The expected total number of performance shares is 172,209 with vesting dates in 2022, 2023
and 2024.
163
CONSOLIDATED The weighted average share price and the number of performance shares are as follows:
FINANCIAL
STATEMENTS
2021 2020
COMPANY WEIGHTED AVERAGE WEIGHTED AVERAGE
FINANCIAL
SHARE PRICE NUMBER OF SHARES SHARE PRICE NUMBER OF SHARES
STATEMENTS
Outstanding as at 1 January 62.12 193,506 56.50 155,260

OTHER
INFORMATION Forfeited during the year - - 62.16 (1,157)
Exercised during the year 50.35 (79,971) 41.47 (43,578)
Granted during the year 145.84 41,556 72.59 55,373
Performance adjustment - 17,118 - 27,608
Outstanding as at 31 December 85.78 172,209 62.12 193,506
The weighted average share price of granted shares is equal to the share price at the grant date adjusted for the expected retention and expected
dividends, based on the Company's dividend policy, during the vesting period. In addition, the weighted average share price of shares granted to the
Management Board is adjusted for market-related performance conditions and for the impact of the restriction period.
Expenses recognised in profit or loss

EUR 1,000 2021 2020
Shares granted 5,295 4,635
13 Other operating expenses

The other operating expenses are as follows:
EUR 1,000 2021 2020 1
Accommodation and other rental costs 7,658 6,879

Other office expenses 26,724 23,489
Car expenses 4,851 4,506
Business travel and representation expenses 5,711 5,842
Professional service fees 15,053 13,581
Credit sales expenses 1,325 1,049
Insurance costs 3,995 3,773
Other operating expenses 6,575 6,598
Total Other operating expenses 71,892 65,717
1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2
164
CONSOLIDATED The other operating expenses include an amount of EUR 4.7 million (2020: EUR 4.5 million) related to non-recurring items. The non-recurring items
FINANCIAL in 2021 and 2020 include professional services fees incurred during acquisition projects and subsequent integration processes and costs related to
STATEMENTS
one-off adjustments to the organisation.
COMPANY
FINANCIAL
STATEMENTS
14 Net finance costs
OTHER
INFORMATION
The following finance income and finance costs are recognised in profit or loss:
EUR 1,000 2021 2020 1
Interest income on loans and receivables 1,803 639

Change in fair value of contingent considerations - 1,997
Finance income 1,803 2,636
Interest expenses on financial liabilities measured at amortised cost (15,658) (18,023)

Non-recurring interest expenses - -
Interest expenses on provisions for pensions and similar obligations (403) (433)
Interest expenses on lease liabilities (2,475) (2,429)
Change in fair value of contingent considerations (1,151) -
Currency exchange results (3,786) (7,512)
Finance costs (23,473) (28,397)
Net finance costs recognised in profit or loss (21,670) (25,761)

Finance income and expenses recognised in other comprehensive income are as follows:
EUR 1,000 2021 2020
Foreign currency translation differences of foreign operations 56,529 (82,553)

Effective portion of changes in fair value of cash flow hedges 106 (110)
Tax on foreign currency translation differences and changes in fair value of cash flow hedges recognised in other
comprehensive income (485) 4,393
Finance income recognised in other comprehensive income, net of tax 56,150 (78,270)
165
CONSOLIDATED 15 Income tax expense

FINANCIAL
STATEMENTS
Income tax expenses recognised in profit or loss
COMPANY EUR 1,000 2021 2020 1
FINANCIAL
Current tax expense
STATEMENTS
Current year 79,879 48,302
Adjustment for prior years 753 1,151
OTHER
INFORMATION 80,632 49,453
Deferred tax expense
Reduction in tax rate (132) 162
Origination and reversal of temporary differences (2,892) (4,536)
Recognition of previously unrecognised tax losses (214) (74)
Recognition of current year tax losses (843) (1,021)
Derecognition of previously recognised tax losses 39 462
(4,041) (5,007)
Total income tax expense 76,591 44,446

The reported tax expenses include an amount of negative EUR 7.5 million (2020: EUR 5.4 million) related to temporary differences regarding amortisation
of intangible assets.
Income tax recognised in other comprehensive income and expenses

2021 2020
BEFORE TAX NET OF TAX BEFORE TAX NET OF TAX

TAX TAX
EUR 1,000 BENEFIT/(EXPENSE) BENEFIT/(EXPENSE)
Foreign currency translation
differences for foreign operations 56,529 (485) 56,044 (82,553) 4,393 (78,160)
Cash flow hedges 106 - 106 (110) - (110)
Defined benefit plan actuarial
684 (272)
gains/(losses) 412 (2,355) 537 (1,818)
57,319 (757) 56,562 (85,018) 4,930 (80,088)
166
CONSOLIDATED The reconciliation between the Company's domestic income tax rate and related tax charge and the effective income tax rate and related effective
FINANCIAL income tax charge is as follows:
STATEMENTS
COMPANY Reconciliation effective tax rate

FINANCIAL EUR 1,000 2021 2020 1
STATEMENTS
% %
Profit for the year 207,236 120,128
OTHER
INFORMATION Total income tax expense 27% 76,591 27.0 44,446
Profit before income tax 283,827 164,574
Income tax using the Company’s domestic tax rate 25% 70,956 25% 41,144
Effect of tax rates in foreign jurisdictions 1% 3,612 1% 1,026
Effect of change in tax rate 0% (132) 0% 162
Tax effect of:
Non-deductible expenses 1% 2,115 2% 3,059
Tax incentives and tax exempted income 0% (715) 0% (718)
Utilisation of tax losses 0% (288) 0% (122)
Recognition of previously unrecognised tax losses 0% (214) 0% (75)
Derecognition of previously recognised tax losses 0% 40 0% 463
Current year losses for which no deferred tax asset was recognised 0% 59 0% 57
(De)recognition of previously (un)recognised temporary differences 0% 406 (2)% (2,533)
Under provided in prior years 0% 752 1% 1,983
27% 76,591 27% 44,446

The following countries within the IMCD Group were subject to changes in the applicable corporate income tax rates in the financial year compared with
the previous financial year: Indonesia 22% (2020: 25%) and Turkey 25% (2020: 22%).
167
CONSOLIDATED 16 Earnings per share

FINANCIAL
STATEMENTS
Basic earnings per share
COMPANY The basic earnings per share of EUR 3.64 (2020: EUR 2.23) is determined by dividing the result for the year due to the owners of the Company of
FINANCIAL EUR 207.2 million (2020: EUR 120.1 million) by the weighted average number of shares in circulation amounting to 56.9 million (2020: 53.8 million). As of
STATEMENTS
31 December 2021, the number of ordinary shares outstanding was 57.0 million (31 December 2020: 57.0 million).
OTHER
INFORMATION
Profit attributable to ordinary shareholders
EUR 1,000 2021 2020 1
Profit/(loss) for the year, attributable to the owners of the Company (basic) (A) 207,276 120,128
Weighted average number of ordinary shares

IN THOUSAND SHARES NOTE 2021 2020 1
Issued ordinary shares as at 1 January 27 56,987 52,592
Increase from change in nominal value 27 - -
Conversion from shareholders' loans 27 - -
Effect of shares issued 27 - 1,250
Effect of purchase or transfer of own shares 27 (47) (92)
Weighted average number of ordinary shares as at 31 December (B) 56,940 53,750
Earnings per share (A/B) 3.64 2.23

Diluted earnings per share

The calculation of the diluted earnings per share of EUR 3.63 (2020: EUR 2.23) has been based on the profit attributable to ordinary shareholders and
the weighted average number of ordinary shares outstanding after adjustment for the effect of all dilutive potential ordinary shares.
The total number of shares granted based on the Group's share based payment scheme are included in the calculation of the diluted weighted average
number of shares.
Weighted average number of ordinary shares (diluted)

IN THOUSAND SHARES NOTE 2021 2020 1
Weighted average number of ordinary shares (basic) as at 31 December 27 56,940 53,750
Effect of share based payments 121 138
Weighted average number of ordinary shares (diluted) at 31 December (C) 57,061 53,888
Diluted earnings per share (A/C) 3.63 2.23

168
CONSOLIDATED 17 Property, plant and equipment

FINANCIAL
STATEMENTS
Property, plant and equipment comprises of owned and leased assets:
COMPANY
FINANCIAL EUR 1,000 NOTE 2021 2020
STATEMENTS
Property, plant and equipment owned 28,623 26,743

OTHER
INFORMATION
Right-of-use assets 19 69,309 68,207
97,932 94,950
The movements for the financial year of the property, plant and equipment are as follows:
MACHINERY
LAND AND AND HARDWARE & OTHER
EUR 1,000 NOTE BUILDINGS EQUIPMENT SOFTWARE ASSETS TOTAL
Cost
Balance as at 1 January 2021 20,650 12,823 13,467 11,374 58,314
Acquisitions through business combinations 7 2,212 1,200 812 1,079 5,303
Additions for the year 904 1,815 1,816 1,626 6,161
Disposals (2,296) (1,277) (3,652) (1,983) (9,208)
Effect of movements in exchange rates 874 532 361 90 1,857
Balance as at 31 December 2021 22,344 15,093 12,804 12,186 62,427
Depreciation and impairment losses

Acquisitions through business combinations 7 547 1,055 680 803 3,085
Depreciation for the year 1,797 1,718 1,653 1,029 6,197
Disposals (1,949) (1,100) (3,611) (1,353) (8,013)
Effect of movements in exchange rates 303 296 284 81 964
Carrying amounts
As at 1 January 2021 14,715 5,747 3,454 2,827 26,743
As at 31 December 2021 15,711 6,048 3,785 3,079 28,623
169
CONSOLIDATED
FINANCIAL
STATEMENTS
COMPANY MACHINERY
FINANCIAL LAND AND AND HARDWARE & OTHER
STATEMENTS EUR 1,000 NOTE BUILDINGS EQUIPMENT SOFTWARE ASSETS TOTAL
OTHER Cost
INFORMATION
Acquisitions through business combinations - 323 117 619 1,059
Additions for the year 3,912 3,835 2,006 (519) 9,234
Disposals (858) (1,198) (2,301) (4,287) (8,644)
Effect of movements in exchange rates (2,337) (1,360) (3,046) (648) (7,391)
Depreciation and impairment losses

Acquisitions through business combinations - 211 69 382 662
Depreciation for the year 1,546 2,728 1,561 1,005 6,840
Disposals (465) (1,005) (1,647) (2,897) (6,014)
Effect of movements in exchange rates (690) (900) (2,886) (525) (5,001)
Carrying amounts
As at 1 January 2020 14,389 5,181 3,775 5,627 28,972
As at 31 December 2020 14,715 5,747 3,454 2,827 26,743
170
CONSOLIDATED 18 Intangible assets

FINANCIAL
STATEMENTS
The intangible assets are comprised of owned and leased assets:
COMPANY
FINANCIAL EUR 1,000 NOTE 2021 2020 1
STATEMENTS
Intangible assets owned 1,808,099 1,546,915

OTHER
INFORMATION
Right-of-use assets 19 - 23
1,808,099 1,546,938
The movements for the financial year for the intangible assets owned are as follows:
INTELLECTUAL SUPPLIER
EUR 1,000 NOTE GOODWILL PROPERTY RIGHTS DISTRIBUTION RIGHTS BRAND NAMES RELATIONS OTHER INTANGIBLES TOTAL
Cost
Balance as at 1 January 2021 1,027,915 104 26,737 25,000 714,012 30,889 1,824,657
Acquisitions through business combinations 7 - - - - 57,989 2,285 60,274
Additions for the year 194,750 - 9,366 - - 3,251 207,367
Disposals - - (115) - (2) (1,489) (1,606)
Effect of movements in exchange rates 39,769 - 823 - 23,859 601 65,052
Balance as at 31 December 2021 1,262,434 104 36,811 25,000 795,858 35,537 2,155,744
Amortisation and impairment losses

Balance as at 1 January 2021 5,322 67 14,886 - 238,550 18,917 277,742
Acquisitions through business combinations 7 - - - - - 4 4
Amortisation for the year - - 4,439 - 53,608 7,390 65,437
Impairment loss - - - - - - -
Disposals - - (115) - (143) (1,473) (1,731)
Effect of movements in exchange rates 101 - 365 - 5,243 484 6,193
Balance as at 31 December 2021 5,423 67 19,575 - 297,258 25,322 347,645
Carrying amounts
As at 1 January 2021 1,022,593 37 11,851 25,000 475,462 11,972 1,546,915
As at 31 December 2021 1,257,011 37 17,236 25,000 498,600 10,215 1,808,099
171
CONSOLIDATED
FINANCIAL
STATEMENTS
COMPANY INTELLECTUAL SUPPLIER

FINANCIAL EUR 1,000 NOTE GOODWILL PROPERTY RIGHTS DISTRIBUTION RIGHTS BRAND NAMES RELATIONS OTHER INTANGIBLES TOTAL
STATEMENTS
Cost
OTHER Balance as at 1 January 2020 763,432 104 25,173 25,000 535,933 38,742 1,388,384
INFORMATION
Adjustment for change in accounting policy 2.e - - - - - (7,963) (7,963)
Restated balance as at 1 January 2020 763,432 104 25,173 25,000 535,933 30,779 1,380,421
Acquisitions through business combinations - - - - 208,531 2,974 211,505
Additions for the year 311,404 - 4,150 - 1,509 4,145 321,208
Disposals (9,278) - (1,729) - (1,877) (6,247) (19,131)
Effect of movements in exchange rates (37,643) - (857) - (30,084) (762) (69,346)
Balance as at 31 December 2020 1,027,915 104 26,737 25,000 714,012 30,889 1,824,657
Amortisation and impairment losses

Balance as at 1 January 2020 14,431 67 13,513 - 211,915 20,972 260,898
Adjustment for change in accounting policy - - - - - (1,871) (1,871)
Restated balance as at 1 January 2020 14,431 67 13,513 - 211,915 19,101 259,027
Acquisitions through business combinations - - - - - 91 91
Amortisation for the year - - 3,479 - 37,010 6,984 47,473
Impairment loss - - - - - - -
Disposals (8,810) - (1,794) - (670) (6,348) (17,622)
Effect of movements in exchange rates (299) - (312) - (9,705) (911) (11,227)
Balance as at 31 December 2020 5,322 67 14,886 - 238,550 18,917 277,742
Carrying amounts
As at 1 January 2020 749,001 37 11,660 25,000 324,018 17,770 1,127,486
As at 31 December 2020 1,022,593 37 11,851 25,000 475,462 11,972 1,546,915
172
CONSOLIDATED Goodwill impairment testing

FINANCIAL For the purpose of goodwill impairment testing, goodwill is allocated to the following cash generating units.
STATEMENTS
COMPANY EUR 1,000 2021 2020

FINANCIAL
STATEMENTS
EMEA 361,272 346,505
Americas 318,207 260,221
OTHER
INFORMATION
Asia-Pacific 577,532 415,867
1,257,011 1,022,593
A cash generating unit (CGU) represents the lowest level within the Group at which goodwill is monitored for internal management purposes.
Key assumptions used in discounted cash flow projections

The recoverable amount per CGU is based on its value in use and is determined by discounting the future cash flows to be generated from the continued
use of the CGUs. The cash flow forecasts were derived from the budget for 2022 and the plan years 2023 and 2024 which were established at the legal
entity level and approved by Management Board and Supervisory Board. The forecasted cash flows have been extrapolated to the years 2025 and 2026.
For the period after 2026 a growth rate equal to the weighted average of the forecasted annual real GDP growth rate for the period 2026-2051 is taken
into account.
The pre-tax weighted average cost of capital (WACC) is estimated per CGU and varies mainly due to differences in risk free rates. The risk-free rates per
CGU are equal to the weighted average of the rate of return on local sovereign bonds or strips. The main assumptions used to determine the WACC were
provided by an external certified valuation expert.
The key assumptions for 2021 and 2020 for each CGU are as follows:
2021 2020
TERMINAL TERMINAL
PRE-TAX WACC PRE-TAX WACC
GROWTH RATE GROWTH RATE
EMEA 10.0% 2.2% 10.3% 2.1%

Americas 11.5% 2.5% 11.2% 2.2%
Asia-Pacific 15.0% 3.5% 14.1% 3.7%
Total Group 10.4% 2.6% 10.0% 2.6%
Sensitivity to changes in assumptions

No impairment of goodwill was necessary following impairment tests on all cash generating units within the Group. The discounted future cash flows
from all cash generating units exceed the value of the goodwill and other relevant net assets.
It is inherent in the method of computation used that a change in the assumptions may lead to a different conclusion. Therefore, a sensitivity analysis is
performed based on a change in a key assumption while keeping all other assumptions unchanged.
173
CONSOLIDATED The following changes in assumptions are assessed:

FINANCIAL • Decrease of the average growth rate 2023-2026 to the terminal growth rate
STATEMENTS
• Decrease of the terminal growth rate by 1.0%
COMPANY • Increase of the WACC by 1.0%
FINANCIAL
STATEMENTS
The conclusion based on the sensitivity analysis performed is that any reasonable change in the key assumptions would not lead to an impairment.
For Asia-Pacific the break-even point is reached earlier than the other segments, but taking into account the considerable growth of the region and the
OTHER
INFORMATION
expansion by means of the recent acquisitions of Signet and Megasetia this scenario is highly unlikely.
Amortisation and impairment testing of supplier relationships

The supplier relationships consist of supplier bases within the following regions and remaining useful lives (RUL):
EUR 1,000 RUL 2021 2020
EMEA 4-13 116,641 124,574

Americas 5-16 115,497 105,622
Asia-Pacific 4-16 266,462 245,266
498,600 475,462
The remaining useful lives of supplier bases are assessed at each reporting date and adjusted if appropriate. Furthermore, triggering events for a
possible impairment are evaluated annually by means of assessing the potential impact of available internal and external information sources.
Impairment testing for cash-generating units containing intangible assets with indefinite useful lives other
than goodwill
Brand names relate to the IMCD brand. As no assumption can be made about the durability of its economic use, the brand name has an indefinite useful
life. The IMCD brand name is considered as a corporate asset and hence allocated to the individual CGUs for goodwill impairment testing purposes. The
carrying amount of the brand name has been allocated to the CGUs as follows: EMEA: EUR 11.7 million (2020: EUR 11.3 million), Americas: EUR 8.1 million
(2020: EUR 8.1 million) and Asia-Pacific: EUR 5.2 million (2020: EUR 5.5 million).
174
CONSOLIDATED 19 Leases
FINANCIAL
STATEMENTS
Right-of-use assets
COMPANY Right-of-use assets carrying amounts comprise:
FINANCIAL
STATEMENTS
PROPERTY, PLANT AND EQUIPMENT INTANGIBLE ASSETS
OTHER LAND AND

INFORMATION EUR 1,000 NOTE BUILDINGS CARS OTHER ASSETS TOTAL SOFTWARE TOTAL
Balance as at 1 January 2021 59,864 7,174 1,169 68,207 23 23
Acquisitions through business combinations 1,930 383 8 2,321 - -
Depreciation and amortisation for the year (16,123) (4,445) (638) (21,206) (23) (23)
Additions for the year 13,225 4,271 264 17,760 - -
Disposals (354) 456 (147) (45) - -
Effect of movements in exchange rates 2,270 (30) 32 2,272 - -
Balance as at 31 December 2021 60,812 7,809 688 69,309 - -
PROPERTY, PLANT AND EQUIPMENT INTANGIBLE ASSETS
LAND AND
EUR 1,000 NOTE BUILDINGS CARS OTHER ASSETS TOTAL SOFTWARE TOTAL
Balance as at 1 January 2020 52,241 7,806 1,312 61,359 13,763 13,763
Adjustment for change in accounting policy - - - - (13,694) (13,694)
Restated balance as at 1 January 2020 52,241 7,806 1,312 61,359 69 69
Acquisitions through business combinations 928 105 - 1,033 - -
Depreciation and amortisation for the year (13,759) (4,113) (925) (18,797) (47) (47)
Additions for the year 24,380 3,310 890 28,580 - -
Disposals (1,302) 494 (221) (1,029) - -
Effect of movements in exchange rates (2,624) (428) 113 (2,939) 1 1
Balance as at 31 December 2020 59,864 7,174 1,169 68,207 23 23
The Group leases several assets including offices and warehouses, cars and software.
Lease liabilities
The balance sheet shows the following lease liabilities:
EUR 1,000 NOTE 2021 2020 1
Current 29 18,017 17,310

Non-current 29 52,712 51,677
Total lease liabilities 70,729 68,987
175
CONSOLIDATED The undiscounted lease liabilities are as follows:

FINANCIAL
STATEMENTS
EUR 1,000 2021 2020 1
COMPANY Less than one year 20,187 19,181
FINANCIAL
One to five years 41,734 41,139
STATEMENTS
More than 5 years 15,891 16,695
Total undiscounted lease liabilities at 31 December 77,811 77,015
OTHER
INFORMATION 1 The period ended 31 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statements
The weighted average discount rate as of 31 December 2021 is 3.53% (2020: 3.43%).
If it is reasonably certain that enforceable extension options will be used, these have been included in the lease. The Group has not included enforceable
extension options with a cash flow of EUR 1.4 million (2020: EUR 12.9 million).
Amounts recognised in profit and loss
EUR 1,000 2021 2020 1

Depreciation 21,206 18,986
Amortisation 22 47
Interest on lease liabilities 2,475 2,429
Variable lease payments not included in the measurement of lease liabilities 193 344
Income from sub-leasing right-of-use assets 115 9
Expense related to short-term leases 549 812
Expense related to leases of low-value assets, excluding short-term leases of low-value assets 256 395
Amounts recognised in the statement of cash flows
EUR 1,000 2021 2020 1

Total cash flows for leases (including short-term and low-value leases) 20,183 16,219
20 Non-current assets by geographical market

The non-current assets other than goodwill, financial instruments, deferred tax assets and post employment benefit assets, comprise property,
plant and equipment, other intangible assets and equity-accounted investees. The aforementioned non-current assets by geographical location are
as follows:
176
CONSOLIDATED PROPERTY, PLANT OTHER EQUITY-ACCOUNTED

FINANCIAL EUR 1,000 AND EQUIPMENT INTANGIBLE ASSETS INVESTEES
STATEMENTS
Netherlands 3,669 125,012 -
COMPANY Rest of EMEA 33,105 36,828 71
FINANCIAL EMEA 36,774 161,840 71
STATEMENTS
Americas 38,175 120,552 -
Asia-Pacific 22,982 268,696 -
OTHER
INFORMATION
Total 97,932 551,088 71
21 Equity-accounted investees
The equity accounted investees relate to the 49% share in SARL IMCD Group Algerie and the 50% share in Velox China.
The following table analyses the carrying amount and share of profit and OCI of the equity interest.
EUR 1,000 2021 2020
Balance as at 1 January 39 65
Result for the year 32 (45)
Reversal of / (addition) to provision - 19
Balance as at 31 December 71 39
The net assets of SARL IMCD Group Algerie consist of current assets amounting to EUR 619 thousand (2020: EUR 301 thousand) and current liabilities
of EUR 533 thousand (2020: EUR 300 thousand). The net result for the financial year amounted to EUR 89 thousand. The net loss for the year 2020
amounted to EUR 51 thousand. As of 31 December 2021 net equity value of SARL IMCD Group Algerie was EUR 87 thousand (2020: EUR 1 thousand).
The net assets of Velox China consist of current assets amounting to EUR 66 thousand (2020: EUR 97 thousand) and current liabilities of EUR 11
thousand (2020: EUR 45 thousand). The net loss for the year 2021 amounted to EUR 23 thousand (2020: net loss of EUR 2 thousand). Net equity value
was EUR 55 thousand (2020: EUR 78 thousand).
22 Other financial assets

The other financial assets relate to receivables with a remaining term exceeding one year and includes rent and other deposits.
177
CONSOLIDATED 23 Deferred tax assets and liabilities

FINANCIAL
STATEMENTS
Unrecognised deferred tax assets
COMPANY The Group has unrecognised deferred tax assets of EUR 10.9million (2020: 10.5 million), consisting of unrecognised deferred tax asset of entities in
FINANCIAL EMEA EUR 0.1 million (2020: EUR 0.1 million) and entities in Asia-Pacific EUR 10.8 million (2020: EUR 10.4 million). The amount in Asia-Pacific mainly
STATEMENTS
relates to unrecognised capital losses in Australia with an infinite carry forward period.
OTHER
INFORMATION
Unrecognised deferred tax liabilities
As of 31 December 2021, the group has unrecognised deferred tax liabilities to the amount of EUR 32.8 million (2020: EUR 18.6 million) for potential
withholding tax liabilities related to investments in subsidiaries. The liabilities are not recognised because the Company controls the dividend policy of
the subsidiaries and does not foresee reversal of the temporary differences in the foreseeable future.
Recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:
EUR 1,000 2021 2020 2021 2020 2021 2020 1

Assets Liabilities Net
Property, plant and equipment 288 308 416 593 (128) (285)
Intangible assets 5,342 8,179 122,067 118,252 (116,725) (110,073)
Right-of-use assets 458 - 11,893 11,513 (11,435) (11,513)
Financial fixed assets 1,500 1,771 147 59 1,353 1,712
Trade debtors and other receivables 2,225 1,751 116 35 2,109 1,716
Inventories 3,161 2,403 526 457 2,635 1,946
Share based payment reserve 675 589 18 - 657 589
Loans and borrowings 197 82 - - 197 82
Lease Liabilities 12,773 12,670 80 41 12,693 12,629
Employee benefits and
other provisions 5,806 6,193 1,303 1,321 4,503 4,872
Trade and other payables 3,791 2,741 134 (122) 3,657 2,863
Other items 3,013 3,036 (11) 26 3,024 3,010
Tax loss carry-forwards 10,226 14,977 (375) 1 10,601 14,976
Tax assets/(liabilities) 49,455 54,700 136,314 132,176 (86,859) (77,476)
Set off of tax (14,062) (14,502) (14,063) (14,502) - -
Net tax assets/(liabilities) 35,393 40,198 122,251 117,674 (86,859) (77,476)
The unused tax losses and unused tax credits include EUR 5.9 million of tax credits (2020: EUR 5.1 million) related to foreign withholding taxes.
178
CONSOLIDATED Movement in temporary differences during the year

FINANCIAL
BALANCE AS RECOGNISED RECOGNISED RECOGNISED ACQUIRED IN OTHER BALANCE AS
STATEMENTS
AT 1 JANUARY IN DIRECTLY IN IN OTHER BUSINESS AT
2021 PROFIT OR EQUITY COMPREHENSIVE COMBINATIONS 31 DECEMBER
COMPANY
FINANCIAL EUR 1,000 LOSS INCOME (NOTE 7) 2021
STATEMENTS
Property, plant and equipment (285) 139 - - - 18 (128)
OTHER Intangible assets (110,073) 7,507 - - (12,668) (1,491) (116,725)
INFORMATION Right-of-use-assets (11,513) 708 - - (58) (572) (11,435)
Financial fixed assets 1,712 (339) - - - (20) 1,353
Trade debtors and other receivables 1,716 (39) - - 385 47 2,109
Inventories 1,946 364 - - 282 43 2,635
Share based payment reserve 589 14 - - - 54 657
Loans and borrowings 82 16 - 84 - 15 197
Lease liability 12,629 (583) - - 6 641 12,693
Employee benefits and other provisions 4,872 (353) - (518) 193 309 4,503
Trade and other payables 2,863 804 - - 87 (97) 3,657
Other items 3,011 (58) - - 23 48 3,024
Tax losses carried forward 14,976 (4,138) - - - (237) 10,601
Net tax assets/(liabilities) (77,476) 4,041 - (434) (11,750) (1,237) (86,859)
The group utilised deferred tax assets related to unused tax losses and unused tax credits to an amount of EUR 0.3 million in the financial year (2020:
EUR 1.0 million).
179
CONSOLIDATED Movement in temporary differences during the year (continued)

FINANCIAL
BALANCE AS RECOGNISED RECOGNISED RECOGNISED ACQUIRED IN OTHER BALANCE AS
STATEMENTS
AT 1 JANUARY IN DIRECTLY IN IN OTHER BUSINESS AT
2020 PROFIT OR EQUITY COMPREHENSIVE COMBINATIONS 31 DECEMBER
COMPANY
FINANCIAL EUR 1,000 LOSS INCOME 2020 1
STATEMENTS
Property, plant and equipment (291) (161) - - (2) 169 (285)
OTHER Intangible assets (69,710) 5,363 79 - (50,757) 4,952 (110,073)
INFORMATION Right-of-use assets (9,160) (2,582) - - (22) 251 (11,513)
Other financial assets 92 (191) 1,791 - - 20 1,712
Trade and other receivables 1,693 (412) - - 577 (142) 1,716
Inventories 1,861 (231) - - 520 (204) 1,946
Share-based payment reserve 670 (53) - - - (28) 589
Loans and borrowings 193 10 (1) (64) - (56) 82
Lease liabilities 9,840 3,055 - - 16 (282) 12,629
Employee benefits and other provisions 3,908 (375) - 364 1,228 (253) 4,872
Trade and other payables 3,783 (684) - - 6 (242) 2,863
Other items 26 43 - 2,978 3 (39) 3,011
Unused tax losses and unused tax credits 15,860 1,225 - - - (2,109) 14,976
Net tax assets/(liabilities) (41,236) 5,007 1,869 3,278 (48,431) 2,037 (77,476)
24 Inventories
The value of the inventory is as follows:
EUR 1,000 2021 2020
Trade goods 526,300 371,239

Total Trade goods 526,300 371,239
Cost of materials and inbound logistics included in profit or loss of 2021 amounted to EUR 2,598.9 million (2020: EUR 2,127.4 million). This cost includes
write-downs of inventories to net realisable value of EUR 6.1 million (2020 EUR 4.4 million). The reversal of write-downs amounted to EUR 1.7 million
(2020: EUR 0.7 million). The write-down of inventories is mainly due to inventories past their expiration dates or inventories which are not marketable.
180
CONSOLIDATED 25 Trade and other receivables

FINANCIAL
STATEMENTS
All trade and other receivables are current.
COMPANY
FINANCIAL EUR 1,000 2021 2020 1
STATEMENTS
Trade receivables 588,598 443,362

OTHER
INFORMATION
Other receivables 30,864 25,767
Total Trade and other receivables 619,462 469,130
The composition of the other receivables is as follows:
EUR 1,000 2021 2020 1
Derivatives used for hedging 61 1

Taxes and social securities 8,482 8,591
Receivables from employees 182 127
Prepaid expenses 17,256 11,744
Other receivables 4,883 5,305
Total other receivables 30,864 25,767
The Group’s exposure to currency risks related to trade and other receivables is disclosed in note 5.
The ageing of trade and other receivables at the reporting date was as follows:
EUR 1,000 2021 2020 1

Gross Impairment Gross Impairment
Current 0 - 30 days past due 600,723 1,115 451,810 1,532

Past due 30 - 60 days 13,695 1,062 11,523 395
Past due 60 - 90 days 4,903 593 4,245 319
More than 90 days 15,803 12,892 14,970 11,172
Total 635,124 15,662 482,548 13,418
Impairment losses
The movement in the allowance for impairment losses in respect of trade and other receivables during the year was as follows:
181
CONSOLIDATED EUR 1,000 2021 2020

FINANCIAL
STATEMENTS
Balance at 1 January 13,418 12,778
COMPANY Acquisitions through business combinations 2,318 1,681
FINANCIAL Impairment loss recognised 1,908 2,273
STATEMENTS
Impairment loss reversed (1,657) (990)
Trade receivables written-off (424) (1,558)
OTHER
INFORMATION
Currency exchange result 99 (766)
Total 15,662 13,418
As at 31 December 2021, the total impairment includes an amount of EUR 2,030 thousand (2020: EUR 1,973 thousand) related to customers declared
insolvent. The remainder of the impairment loss as at 31 December 2021 relates to several customers who are expected to be unable to pay their
outstanding balances, mainly due to economic circumstances, and the general provision for expected credit losses for trade and other receivables. The
Group believes that the unimpaired amounts that are past due by more than 30 days are still collectable, based on historic payment behaviour and
analyses of the underlying customers’ creditworthiness.
The maximum exposure to credit risk for trade and other receivables at the reporting date by geographic region was as follows:
EUR 1,000 2021 2020 1

Carrying amount
EMEA 273,090 216,026
Americas 175,074 114,432
Asia-Pacific 171,298 138,673
Total Carrying amount 619,462 469,130
26 Cash and cash equivalents

The cash and cash equivalents are as follows:
EUR 1,000 2021 2020
Cash and cash equivalents 177,879 169,008

Cash and cash equivalents in the statement of cash flows 177,879 169,008
The cash and cash equivalent balances are available for use by the Group.
182
CONSOLIDATED 27 Capital and reserves

FINANCIAL
STATEMENTS
Share capital and share premium
COMPANY As of 31 December 2021, the authorised share capital comprised 150,000,000 ordinary shares of which 56,987,858 shares have been issued. The
FINANCIAL shares have a nominal value of EUR 0.16 each and all shares rank equally with regard to the Company’s residual assets.
STATEMENTS
The shareholders are entitled to receive dividends and are entitled to one vote per share at meetings of the Company. Following the resolution of the
OTHER
INFORMATION
Annual General Meeting in 2021, the Company distributed a dividend in cash of EUR 58.1 million (2020: EUR 47.3 million).
The share premium as of 31 December 2021 amounted to EUR 1,051.4 million (31 December 2020: EUR 1,051.4 million).
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations, as well
as from the translation of liabilities that hedge the Company’s net investment in foreign subsidiaries.
Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged
transactions that have not yet occurred.
Reserve own shares

The reserve own shares comprises the cost of the Company's shares held by the Group to fund its long-term incentive plan. At 31 December 2021, the
Group held 44,300 of the Company's shares (as at 31 December 2020: 90,017 shares). During 2021 the Group transferred 45,717 shares to fulfil its
annual obligation from the long-term incentive plan.
Other reserve
Other reserves relate to the accumulated actuarial gains and losses recognised in the other comprehensive income.
183
CONSOLIDATED Other comprehensive income

FINANCIAL
EUR 1,000 ATTRIBUTABLE TO OWNERS OF THE COMPANY
STATEMENTS
Total other
COMPANY Translation Hedging Other comprehensive
FINANCIAL reserve reserve reserves income
STATEMENTS 2021
Foreign currency translation differences for foreign operations, net of tax 56,044 - - 56,044
OTHER Effective portion of changes in fair value of cash flow hedges, net of tax - 106 - 106
INFORMATION
Defined benefit plan actuarial gains and losses net of tax - - 412 412
Total other comprehensive income 56,044 106 412 56,562
2020
Foreign currency translation differences for foreign operations, net of tax (78,160) - - (78,160)
Effective portion of changes in fair value of cash flow hedges, net of tax - (110) - (110)
Defined benefit plan actuarial gains and losses net of tax - - (1,818) (1,818)
Total other comprehensive income (78,160) (110) (1,818) (80,089)
28 Non-controlling interest
The non-controlling interest relates to the 75% share in IMCD Arabia Trading LLC. Profit sharing is determined on a 90%-10% basis.
As at 31 December 2021, the non-controlling interest amounts to EUR 1,529 thousand. The net loss for the financial year attributed to the non-
controlling interest amounts to EUR 40 thousand.
29 Loans and borrowings

This note provides information about the contractual terms of the Group’s interest bearing loans and borrowings, which are measured at amortised
cost. For more information about the Group’s exposure to interest rate, foreign currency and liquidity risk, see Note 5.
Non-current liabilities
EUR 1,000 NOTE 2021 2020 1
Bank loans 337,528 336,692
Deferred and contingent considerations 7, 33 275,243 191,302

Lease liabilities 52,712 51,677
Other liabilities 1,369 1,538
Total non-current liabilities 666,853 581,209
184
CONSOLIDATED Terms and debt repayment schedule

FINANCIAL The terms and conditions of outstanding non-current loans are as follows:
STATEMENTS
COMPANY NOMINAL YEAR OF CARRYING

FINANCIAL EUR 1,000 CURR NOTE INTEREST RATE MATURITY FACE VALUE 2021 CARRYING AMOUNT 2021 FACE VALUE 2020 1 AMOUNT 2020 1
STATEMENTS
Schuldscheindarlehen (fix rate) EUR 1.58% 2023 15,000 14,978 15,000 14,966
OTHER Schuldscheindarlehen (floating rate) EUR 1.45% 2023 25,000 24,964 25,000 24,869
INFORMATION
Bond loan (fix rate) EUR 2.50% 2025 300,000 297,586 300,000 296,857
Profit sharing arrangements EUR 1.53% 2022 1,369 1,369 1,538 1,538
Lease liabilities 2 0.22% - 23.90% 2022-2062 57,625 52,712 57,834 51,677
Other interest-bearing liabilities - - - -
Total interest-bearing liabilities 398,994 391,610 399,372 389,907
Deferred and contingent considerations 7, 33 279,685 275,243 195,612 191,302
Total non-current liabilities 678,679 666,853 594,984 581,209
The total non-current lease liabilities of EUR 57.6 million consist of lease liabilities denominated in various currencies, of which EUR 17.9 million in EUR,
EUR 13.8 million in USD, EUR 8.2 million in CAD, EUR 6.6 million in AUD and EUR 2.9 million in SEK.
In March 2020, IMCD completed an amendment to its multi-currency revolving credit facility, increasing the borrowing capacity from EUR 400 million to
EUR 500 million. IMCD further agreed with its existing banking syndicate, to extend the maturity date of this revolving credit facility from 27 March 2024
to 27 March 2025 along with a reduction in the interest margins.
In November 2021, IMCD made the repayment of EUR 60 million and USD 25 million for its short term debt (Schuldscheindarlehen).
The senior unsecured fixed rates note, issued by IMCD N.V. on 26 March 2018, had a closing price of EUR 104,40 at 31 December 2021 (31 December
2020: EUR 104.17 ). The bond is listed on the Luxembourg Euro MTF market and matures on 26 March 2025.
The Group is obliged to meet requirements from the covenants in connection with the interest bearing loan facilities. These requirements relate to ratios
for interest cover and maximum leverage.
Two leverage covenants apply to the Group:

• For the Schuldscheindarlehen of EUR 40 million a maximum leverage of 3.5 times EBITDA applies (with a spike period maximum of 4.0),
tested annually.
• For the revolving credit facilities of EUR 500 million, a maximum leverage of 3.75 times EBITDA applies (with a spike period maximum of 4.25),
tested semi-annually.
185
CONSOLIDATED 2021 2020 1

FINANCIAL
STATEMENTS OUTCOME COVENANT OUTCOME COVENANT
COMPANY Reported leverage 2.3 2.7

FINANCIAL
Leverage including pro-forma results 2.3 2.3
STATEMENTS
Leverage loan documentation 1.5 max. 3.5 1.7 max. 3.5
Interest cover 29.1 min. 4.0 16.9 min. 4.0
OTHER
INFORMATION 1 December 2020 has been restated as a result of a change in accounting policy detailed in Note 2 to the Financial statements
The actual reported leverage ratio as at 31 December 2021 was 2.3 times EBITDA (31 December 2020: 2.7 times EBITDA). Including the full year impact
of acquisitions completed in 2020, the leverage at the end of the financial year is 2.3 times EBITDA (31 December 2020: 2.3 times EBITDA). The
leverage ratio calculated on the basis of the definitions used in the loan documentation was 1.5 times EBITDA (31 December 2020: 1.7 times EBITDA)
which is well below the defined maximum of 3.5 times EBITDA.
The actual interest cover covenant for the financial year, based on the definitions used in the Schuldschein Darlehen documentation, was 29.0 times
EBITDA (2020: 16.9 times EBITDA) and was well above the required minimum of 4.0.
For details of the contractual maturities of financial liabilities, reference is made to note 5.
Current liabilities
EUR 1,000 NOTE 2021 2020 1
Loans and borrowings - 80,373
Deferred and contingent considerations 7, 33 33,614 2,242

Lease liabilities 18,017 17,310
Other short term financial liabilities 399,420 214,888
Total Short-term financial liabilities 451,050 234,440
Other short-term financial liabilities include a revolving credit facility, bank overdrafts and other short-term credit facilities, including discounted bills
and discounted notes.
186
CONSOLIDATED 30 Employee benefits

FINANCIAL
STATEMENTS
The liabilities associated with employee benefits consist of net defined benefit liabilities (pension schemes), termination benefits and other long-term
COMPANY employee benefits.
FINANCIAL
STATEMENTS
EUR 1,000 2021 2020
OTHER
INFORMATION Net defined benefit liability 13,475 14,727
Termination benefits and other long-term employee benefits 15,783 14,808
Total employee benefit liabilities 29,258 29,535
The Group supports defined benefit plans in the Netherlands, the United Kingdom, Canada, Germany, Switzerland, Austria, the United States and
the Philippines.
187
CONSOLIDATED Movement in net defined benefit liability/(asset)

FINANCIAL
EUR 1,000 2021 2020 2021 2020 2021 2020
STATEMENTS
Defined benefit Fair value of Net defined benefit
COMPANY obligation plan assets liability/(asset)
FINANCIAL
STATEMENTS Balance as at 1 January 81,109 69,457 66,382 57,606 14,727 11,851
OTHER Included in profit or loss

INFORMATION
Current service cost 1,271 1,307 - - 1,271 1,307
Past service cost (975) (50) - - (975) (50)
Settlements (96) - - - (96) -
Interest cost/(income) 1,142 1,338 816 913 326 425
1,341 2,596 816 913 525 1,683
Included in OCI
Remeasurement; loss/(gain):
Actuarial loss/(gain) arising from
changes in:
- Demographic assumptions (450) 66 - - (450) 66
- Financial assumptions (2,205) 5,036 - - (2,205) 5,036
- Experience 48 (145) - - 48 (145)
Return on plan assets excluding
interest income - - 212 2,401 (212) (2,401)
Asset ceiling - - (2,726) 445 2,726 (445)
Effect of movements in
exchange rates 3,714 (2,314) 2,686 (1,643) 1,028 (671)
1,107 2,643 172 1,203 935 1,439
Other
Business combinations - 7,615 - 5,585 - 2,029
Contributions paid by the employer - - 2,434 1,931 (2,434) (1,931)
Contributions paid by the
plan members 1,815 846 1,815 846 - -
Benefits paid (3,101) (2,047) (2,822) (1,703) (280) (344)
(1,286) 6,413 1,427 6,660 (2,713) (246)
Balance as at 31 December 82,270 81,109 68,796 66,382 13,474 14,727
Plan assets
EUR 1,000 2021 2020
Equity securities 24,181 12,137

Government bonds 1,361 1,152
Qualifying insurance policies 35,885 34,779
188

FINANCIAL
STATEMENTS
Other plan assets 10,095 18,313
Asset Ceiling (2,726) -
COMPANY Total plan assets 68,796 66,381
FINANCIAL
STATEMENTS
The Government Bonds in the UK were moved in 2020 into Liability Driven Investments (LDI’s) and the LDI’s are considered as other defined benefit
plan assets.
OTHER
INFORMATION
Due to the asset ceiling applicable to the UK pension plan, in 2021 the actual fair value of the plan assets (EUR 71.5 million) exceeded the recognised
plan assets (EUR 68.8 million) by EUR 2.7 million.
Expense recognised in profit or loss

EUR 1,000 2021 2020
Current service costs 1,270 1,307

Past service costs (975) (50)
Settlements (96) -
Expense recognised in the line item 'Social security and other charges' 199 1,257
Interest cost 326 425
Expense recognised in the line item 'Finance costs' 326 425
Total expense recognised in profit or loss 525 1,682
Actuarial assumptions
Principal actuarial assumptions at the reporting date, expressed as weighted average:
2021 2020
Discount rate as at 31 December 1.66% 1.34%

Future salary increases 1.74% 1.56%
Future pension increases 1.46% 1.32%
Price inflation 2.23% 2.06%
Assumptions regarding future mortality are based on published statistics and mortality tables. The following tables have been used:
• The Netherlands: AGPrognose2020Hoog 7 based on income class high-medium
• The United Kingdom: before retirement – as per post retirement, after retirement -males: 90% S2PXA_L / -females: 90% S2PA_L, CMI 2019
model [1.25%]
• Canada: CPM 2014 Public & Private with 2D projections using Scale B
• Germany: Richttafel 2018G Klaus Heubeck
• Switzerland: BVG 2020 Generational
• Austria: AVÖ 2018-P ‘Angestellte’ –Rechnungsgrundlagen für die Pensionsversicherung-Pagler & Pagler
189
CONSOLIDATED The Group expects EUR 3,099 thousand in contributions to be paid into its defined benefit plans in 2022. The Canadian pension plans are partially
FINANCIAL unfunded. The duration of the funded obligation based on expected cash flows is 13 years, the unfunded plans have an expected duration of 14 years.
STATEMENTS
COMPANY Sensitivity analysis

FINANCIAL The defined benefit plans in Austria, Germany, Switzerland, the Philippines and the United States relate to a limited number of (retired) employees. For
STATEMENTS
that reason, sensitivity analyses for these plans are not provided. The three significant defined benefit plans are the schemes in the Netherlands, the
United Kingdom and Canada.
OTHER
INFORMATION
The plan in the Netherlands was an average salary defined benefit plan until 31 December 2016. The plan is financed through an insurance policy. No
direct asset allocation is held in relation to the insurance contract. Hence, no asset-liability matching strategies are applicable. There are no specific
material entity risks to which the plan is exposed and the plan assets are not invested in a single class of investments. From 2016 onwards no additional
retirement benefits accrue in the defined benefit plan. The retirement benefits related to employee services in 2017 and onwards accrued in a new
pension plan, effective from 1 January 2017. As a result of the parameters in the new pension contract, it classifies as a defined contribution plan.
The plan in the United Kingdom has 29 members and is a final salary defined benefit plan. The plan is financed through a pension fund. The plan assets
are not invested in a single class of investments.
The plan in Canada consists of three separate plans: a pension and supplementary retirement pension plan for certain (former) executive members (9
members) and a non-pension post-retirement benefit plan providing extended health, dental, life insurance and accidental death and dismemberment
benefits. The supplementary plan and non-pension plan are unfunded.
The pension plans of IMCD Switzerland were revised and harmonised due to the merger between IMCD Switzerland AG and DCS Pharma AG. The
revised plan was put in to effect as at 1 January 2022. The plan is financed through a pension fund and the plan assets are not invested in a single class
of investments.
The obligations arising from the defined benefit plans mentioned above are determined using the projected unit credit method. The projected unit
credit method determines the expected benefits to be paid after retirement, taking dynamic measurement parameters into account and spreading
them over the entire years of service of the employees participating in the plan. For this purpose, an actuarial valuation is obtained every year. The
actuarial assumptions for the discount rate, salary growth rate, pension trend and life expectancy, which are used to calculate the defined benefit
obligation are established on the basis of the respective economic circumstances.
The plan assets measured at fair value are deducted from the present value of the defined benefit obligation (gross pension obligation). Plan assets are
assets where the claim to said assets has, in principle, been assigned to the beneficiaries. This results in a net liability or a net asset to be recognised.
Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have
affected the defined benefit obligations of the three significant defined benefit plans by the amounts shown below.
190

FINANCIAL
Increase Decrease Increase Decrease
STATEMENTS
Defined benefit plan The Netherlands
COMPANY Discount rate (1% point movement) (4,175) 5,519 (4,497) 5,982
FINANCIAL
STATEMENTS
Defined benefit plan The United Kingdom
Discount rate (1% point movement) (4,284) 5,593 (4,449) 5,784
OTHER
INFORMATION
Future salary growth (1% point movement) 119 (119) 111 (111)
Future pension growth (1% point movement) 4,998 (4,046) 5,117 (4,116)
Future inflation (1% point movement) 4,046 (3,808) 4,227 (4,227)
Future mortality (1 year) 1,071 (1,071) 1,112 (1,112)
Defined benefit plan Canada

Discount rate (1% point movement) (1,308) 1,277 (1,116) 1,393
Future salary growth (1% point movement) 32 (30) 29 (26)
Future inflation (1% point movement) 404 (199) 468 (316)
Future mortality (1 year) (326) 270 (280) 319
Defined benefit plan Switzerland

Discount rate (0.5% point movement) (238) 274
Future salary growth (0.5% point movement) 18 (18)
Future mortality (1 year) 48 (48)
Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the
sensitivity of the assumptions shown.
191
CONSOLIDATED Termination benefits and other long-term employee benefits

FINANCIAL The movements in the termination benefits and other long-term employee benefits are as follows:
STATEMENTS
COMPANY EUR 1,000 NOTE 2021 2020

FINANCIAL
STATEMENTS
Liabilities as at 1 January 14,808 12,202
Assumed in business combinations 7 421 3,130
OTHER
INFORMATION
Additions (excluding interest cost) 2,430 1,609
Interest cost 77 7
Withdrawals (1,013) (1,942)
Releases (603) (90)
Actuarial results (591) 245
Effect of movement in exchange rates 253 (353)
Liabilities as at 31 December 15,783 14,808
The termination and other long-term employee benefits comprises statutory imposed obligations for long or after-service benefits. The main
obligations relate to the IFC retirement indemnity benefits in France and the legally required leaving-service indemnity TFR in Italy.
31 Provisions
The movements in provisions are as follows:
EUR 1,000 NOTE 2021 2020
Balance as at 1 January 4,449 4,358

Assumed in business combinations 7 2,040 3,367
Provisions made during the year 1,247 1,465
Provisions used during the year (1,017) (4,050)
Provisions released during the year (180) (298)
Effect of movement in exchange rates (45) (394)
Balance as at 31 December 6,494 4,449
The provision used in 2021 mainly relates to organisational changes.
192
CONSOLIDATED 32 Trade and other payables

FINANCIAL
STATEMENTS
The trade and other payables are as follows:
COMPANY
FINANCIAL EUR 1,000 2021 2020
STATEMENTS
Trade payables 403,010 291,844

OTHER
INFORMATION
Total Trade payables 403,010 291,844
EUR 1,000 2021 2020 1
Derivatives used for hedging 195 2,417

Taxes and social securities 27,729 20,183
Pension premiums 1,486 1,297
Current tax liability 14,239 12,406
Other creditors 3,664 9,028
Accrued interest expenses 6,000 6,305
Liabilities to personnel 45,320 32,130
Other accrued expenses 31,655 21,094
Total Other payables 130,288 104,860
At 31 December 2021, with the exception of some derivatives used for hedging, all trade and other payables have a term of less than one year.
The Group’s exposure to currency risk related to trade and other payables is disclosed in Note 5.
193
CONSOLIDATED 33 Financial Instruments

FINANCIAL
STATEMENTS
Accounting classifications and fair values
COMPANY The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.
FINANCIAL It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable
STATEMENTS
approximation of fair value.
OTHER
INFORMATION 31 DECEMBER 2021 CARRYING AMOUNT FAIR VALUE
FINANCIAL ASSETS AMORTISED FINANCIAL OTHER TOTAL LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
AT FAIR VALUE COST LIABILITIES AT FAIR FINANCIAL
THROUGH PROFIT VALUE THROUGH LIABILITIES
EUR 1,000 NOTE OR LOSS PROFIT OR LOSS
Forward exchange contracts
25 61 - - - 61 - 61 - 61
used for hedging
32 - - 195 - 195 - 195 - 195
used for hedging
Contingent consideration 29 - - 308,856 - 308,856 - - 308,856 308,856
31 DECEMBER 2020 CARRYING AMOUNT FAIR VALUE
FINANCIAL ASSETS AMORTISED FINANCIAL OTHER TOTAL LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
AT FAIR VALUE COST LIABILITIES AT FAIR FINANCIAL
THROUGH PROFIT VALUE THROUGH LIABILITIES
EUR 1,000 NOTE OR LOSS PROFIT OR LOSS
25 1 - - - 1 - 1 - 1
used for hedging
32 - - 2,417 - 2,417 - 2,417 - 2,417
used for hedging
Contingent consideration 29 - - 193,544 - 193,544 - - 193,544 193,544
194
CONSOLIDATED Measurement of fair values

FINANCIAL Valuation techniques and significant unobservable inputs
STATEMENTS
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable
COMPANY inputs used.
FINANCIAL
STATEMENTS
Financial instruments measured at fair value
OTHER
Significant Inter-relationship between
INFORMATION
unobservable significant unobservable inputs and
Type Valuation technique inputs fair value measurement
Contingent consideration Discounted cash flows: The valuation model considers the present • Forecast EBITDA The estimated fair value would
value of expected payment, discounted using a risk-adjusted discount margin increase/(decrease) if:
rate. The expected payment is determined by considering the possible • Risk-adjusted
scenarios of forecast EBITDA, the amount to be paid under each discount rate • the EBITDA margins were higher/
scenario and the probability of each scenario. (lower); or
• the risk-adjusted discount rates were
lower/(higher).
Forward exchange contracts and Market comparison technique: The fair values are based on broker Not applicable Not applicable
interest rate swaps quotes. Similar contracts are traded in an active market and the quotes
reflect the actual transactions in similar instruments.
Financial instruments not measured at fair value

There were no financial instruments that are measured at amortised cost but for which fair value was disclosed classified as Level 3 either in the current
year or in the prior year.
Level 3 fair values

Reconciliation of Level 3 fair values
The following table shows a reconciliation from the opening balances to the closing balances for Level 3 fair values.
195
CONSOLIDATED CONTINGENT
FINANCIAL EUR 1,000 NOTE CONSIDERATION
STATEMENTS
COMPANY
Balance as at 1 January 2021 193,544
FINANCIAL Assumed in a business combination 7 121,382
STATEMENTS Paid contingent consideration (20,735)
Loss / (Gain) included in profit or loss 1,151
OTHER Loss / (Gain) included in equity -
INFORMATION
Effect of movement in exchange rates 13,514
Balance as at 31 December 2021 308,856
Balance as at 1 January 2020 38,225

Assumed in a business combination 180,389
Paid contingent consideration (16,214)
Loss / (Gain) included in profit or loss (1,213)
Loss / (Gain) included in equity (2,880)
Effect of movement in exchange rates (4,764)
31 December 2020 193,544
The amount assumed in business combinations contains an adjustment of the provisional purchase price allocation for Signet (increase of
EUR 41 million), which was acquired in 2020. This adjustment relates to changes in the assumptions of the projected cash and debt positions at
the execution date. The main contingent considerations relate to the acquisitions of Signet and Megasetia. Other contingent considerations assumed in
business combinations relate to the acquisitions of Yuanhe, Andes, Siliconas and Maquimex.
The net loss included in profit and loss of EUR 1,151 thousand (2020: gain of EUR 1,213 thousand) is the result of remeasuring contingent considerations.
Sensitivity analysis
The fair value of contingent considerations is subject to two principal assumptions. The effects of reasonable changes to these assumptions, keeping
other assumptions constant, are set out below.
31 DECEMBER 2021 PROFIT OR LOSS
EUR 1,000 INCREASE DECREASE
EBITDA margin (10% movement) (23,509) 22,068

Risk-adjusted discount rate (discount rate 1% point movement) 5,899 (4,092)
196
CONSOLIDATED 31 DECEMBER 2020 PROFIT OR LOSS

FINANCIAL
STATEMENTS EUR 1,000 INCREASE DECREASE
COMPANY EBITDA margin (10% movement) (17,069) 16,007

FINANCIAL
Risk-adjusted discount rate (discount rate 1% point movement) 5,276 (5,486)
STATEMENTS
OTHER
Offsetting financial assets and liabilities
INFORMATION Gross amounts of financial assets and liabilities are offset on the basis of offsetting arrangements or are subject to enforceable master netting
arrangements or similar agreements that do not meet the requirements for offsetting in the balance sheet.
31 DECEMBER 2021
ENFORCEABLE
MASTER NETTING
GROSS AMOUNT OF GROSS CARRYING ARRANGEMENTS OR
FINANCIAL ASSETS AMOUNTS IN THE SIMILAR 31 DECEMBER 2021
EUR 1,000 AND LIABILITIES OFFSETTING BALANCE SHEET ARRANGEMENTS NET AMOUNT
Trade and other receivables 641,189 (21,727) 619,462 - 619,462

Cash and cash equivalents 179,417 (1,538) 177,879 - 177,879
Other financial assets 5,310 112 5,422 - 5,422
Trade payables 406,613 (3,603) 403,010 - 403,010
Other payables 148,335 (18,047) 130,288 - 130,288
Other short term financial liabilities 452,665 (1,615) 451,050 - 451,050
31 DECEMBER 2020 1 RESTATED COLUMN
ENFORCEABLE
MASTER NETTING
GROSS AMOUNT OF GROSS CARRYING ARRANGEMENTS OR
FINANCIAL ASSETS AMOUNTS IN THE SIMILAR 31 DECEMBER 2020
EUR 1,000 AND LIABILITIES OFFSETTING BALANCE SHEET ARRANGEMENTS NET AMOUNT
Trade and other receivables 481,580 (12,451) 469,130 - 464,432

Cash and cash equivalents 169,008 - 169,008 - 169,008
Other financial assets 5,290 - 5,290 - 5,290
Trade payables 292,641 (797) 291,844 - 291,844
Other payables 116,503 (11,643) 104,860 - 100,445
Other short term financial liabilities 234,450 (10) 234,440 - 240,810
197
CONSOLIDATED 34 Off-balance sheet commitments

FINANCIAL
STATEMENTS
Operating leases
COMPANY Commitments for minimum lease payments in relation to operating leases are payable as follows:
FINANCIAL
STATEMENTS
EUR 1,000 2021 2020
OTHER
INFORMATION Within one year 1,848 6,327
Later than one year but not later than five years 7,214 531
Later than five years 2,888 -
Total Operational leases 11,951 6,858
Guarantees
As at 31 December 2021, the Group has granted guarantees of EUR 79.6 million (31 December 2020: EUR 38.5 million) in total. Those guarantees
mainly consist of bank guarantees related to acquisitions, amounting to EUR 13.1 million. Furthermore, the guarantees consist of bank guarantees to
customs and tax authorities of EUR 0.9 million (31 December 2020: EUR 0.9 million), office rental guarantees of EUR 1.1 million (31 December 2020:
EUR 0.9 million), guarantees for goods of EUR 62.3 million (31 December 2020: EUR 9.3 million), letters of credit EUR 1.2 million (EUR 1.7 million) and
other guarantees of 1.0 million (31 December 2020: nil).
Claims
The Group is a party to a limited number of legal proceedings incidental to its business. As is the case with other companies in similar industries, the
Company faces exposures from actual or potential claims and legal proceedings. Although the ultimate result of legal proceedings cannot be predicted
with certainty, it is the opinion of the Company’s management that the outcome of any claim which is pending or threatened, either individually or on a
combined basis and considering the insurance cover available, will not have a material effect on the financial position of the Company, its cash flows and
result of operations.
35 Related parties
Identity of related parties
The Group has related party relationships with its shareholders, subsidiaries, Management Board and Supervisory Board and post-employment benefit
plans. For an overview of the group companies, reference is made to the List of group companies as per 31 December 2021 on page 213.
Transactions with subsidiaries

The financial transactions between the Company and its subsidiaries comprise financing related transactions and operational transactions in
the normal course of business. Transactions within the Group are not included in these disclosures as these are eliminated in the consolidated
Transactions with key management personnel

The members of the Management Board and the Supervisory board are considered key management personnel as defined in IAS 24 ‘Related party
disclosures’. For details on their remuneration, reference is made to Note 53.
198
CONSOLIDATED Transactions with associates

FINANCIAL The Group owns 49% of the shares in SARL IMCD Group Algerie. At 31 December 2021 the Group has outstanding receivables from SARL IMCD Group
STATEMENTS
Algerie of EUR 478 thousand (2020: EUR 309 thousand) and outstanding payables to Velox China of EUR 20 thousand (2020: EUR 20 thousand).
COMPANY
FINANCIAL Transactions with post-employment benefit plans
STATEMENTS
The Group’s main post-employment benefit plans are the defined benefit plans in the United Kingdom, Canada and the Netherlands.
OTHER
INFORMATION
In the financial year, the contributions to the defined benefit plans were EUR 2,434 thousand (2020: EUR 1,931 thousand). The outstanding payable to
the defined benefit plans as at the year-end 2021 is EUR 3 thousand (2020: EUR 6 thousand).
36 Subsequent events
In addition to the acquistions completed in 2021, IMCD signed agreements to acquire 100% of the shares in Shanghai Syntec Additive Limited and
Shanghai Weike Additive Limited (jointly “Syntec”), RPL Trading Pty Ltd and RPL Trading New Zealand Ltd. (jointly “RPL Trading”) and Polychem
Handelsges.m.b.H. (“POLYchem”).
On 6 December 2021, IMCD signed an agreement to acquire 100% of the shares in Syntec. Syntec provides market, technicaland formulation expertise
in China's personal care,cosmetics, and home care industries. Syntec generateda revenue of approximately EUR 14 million in 2020 has 25 employees.
The transaction was closed on 18 January 2022
On 22 December 2021, IMCD signed an agreement to acquire 100% of the shares of RPL Trading, a speciality chemicals distributor focused on
services and formulation expertise for customers and partners in the home care and water treatment markets. RPL Trading generated a revenue of
approximately EUR 16 million for the fiscal year ended on 30 June 2021 and has 15 employees. The transaction was closed on 31 January 2022.
On 22 December 2021, IMCD signed an agreement to acquire 100% of the shares in POLYchem, a leading provider of chemical raw materials and
additives in Austria and Southeast Europe. POLYchem offers a diverse portfolio of products for the coatings, construction, as well as the composite
industries. POLYchem has 65 employees and generated a revenue of EUR 25 million in 2020. The transaction was closed on 8 February 2022.
199
CONSOLIDATED In addition to the three agreements signed in 2021 and closed early 2022, IMCD signed three additional acquisition agreements.
FINANCIAL
STATEMENTS
On 10 February 2022, IMCD signed an agreement to acquire 100% of the shares in speciality chemicals and ingredients distributor Polyorganic®
COMPANY Tecnologia Ltda (“Polyorganic”). Headquartered in São Paulo, Brazil, Polyorganic is active in the household, industrial and institutional (HI&I), water
FINANCIAL treatment industry and other industrial markets segment in Brazil. In 2021, Polyorganic generated a revenue of approximately EUR 12 million.
STATEMENTS
On 16 February, IMCD signed an agreement to acquire 100% of the business and the subsidiaries of Quelaris Internacional S.A. (“Quelaris”). Quelaris
OTHER
INFORMATION
is a LATAM regional raw material distributor with offices in Colombia, Costa Rica and Peru and has a strong presence in the polyurethane, coatings,
adhesives, rubber and other industrial markets throughout the region. With 46 employees, Quelaris generated revenue of approximately USD 52 million
in 2021. The closing of the transaction is expected to take place in March 2022.
There were no material events after 31 December 2021 that would have changed the judgement and analysis by management of the financial position as
of 31 December 2021 or the result for the year of the Group.
200
CONSOLIDATED
FINANCIAL
STATEMENTS
Company balance sheet
COMPANY
as of 31 December 2021
FINANCIAL BEFORE PROFIT APPROPRIATION
STATEMENTS
EUR 1,000 NOTE 31 DECEMBER 2021 31 DECEMBER 2020 1

OTHER
INFORMATION
Fixed assets
Participating interest in group company 42 1,797,333 1,663,068
Deferred tax assets 43 13,102 15,513
Total fixed assets 1,810,435 1,678,581
Current assets
Trade and other receivables 44 (10) 175
Accounts receivable from subsidiary 45 1,834 1,710
Cash and cash equivalents 255 154
Total current assets 2,079 2,039
Total assets 1,812,514 1,680,621
Shareholders' equity 46
Issued share capital 9,118 9,118

Share premium 1,051,438 1,051,438
Translation reserve (58,285) (114,329)
Hedging reserve (100) (206)
Other reserves (5,509) (8,667)
Retained earnings 255,888 194,927
Unappropriated result 207,276 120,128
Total shareholders' equity 1,459,825 1,252,408
Non-current liabilities 47 338,529 337,917
Loans and borrowings 48 - 80,373

Accounts payable to subsidiaries 48 6,781 2,022
Other current liabilities 48 7,380 7,901
Current liabilities 14,160 90,296
Total equity and liabilities 1,812,514 1,680,621

201
CONSOLIDATED
FINANCIAL
STATEMENTS
Company income statement
COMPANY
FINANCIAL
STATEMENTS
EUR 1,000 NOTE 2021 2020 1

OTHER
INFORMATION
Operating income 39 3,573 3,514
Wages and salaries 40 (4,016) (4,049)

Social security and other charges 40 (129) (96)
Other operating expenses (1,108) (1,015)
Operating expenses (5,253) (5,160)
Net finance costs (10,194) (12,081)

Share in results from participating interests, after taxation 42 221,117 134,837
Result before income tax 209,243 121,110
Income tax expense 41 (1,967) (982)
Result for the year 207,276 120,128
202
CONSOLIDATED
FINANCIAL
STATEMENTS
Notes to the Company financial statements
COMPANY
FINANCIAL 37 General
STATEMENTS
The company financial statements are part of the 2021 financial statements of IMCD N.V. (the ‘Company’).
OTHER
INFORMATION
38 Principles for the measurement of assets and liabilities and the determination of the result
For setting the principles for the recognition and measurement of assets and liabilities and determination of the result for its company financial
statements, the Company makes use of the option provided in Section 2:362 (8) of the Netherlands Civil Code. This means that the principles for
the recognition and measurement of assets and liabilities and determination of the result (hereinafter referred to as principles for recognition and
measurement) of the company financial statements of the Company are the same as those applied for the consolidated EU-IFRS financial statements.
These consolidated EU-IFRS financial statements are prepared according to the standards laid down by the International Accounting Standards Board
and endorsed by the European Union (hereinafter referred to as EU-IFRS). Reference is made to the notes to the consolidated financial statements.
Participating interests are valued on the basis of the equity method.
The share in results from participating interests, after taxation consists of the share of the Company in the results of these participating interests.
Results on transactions, where the transfer of assets and liabilities is between the Company and its participating interests and mutually between
participating interests themselves, are not incorporated insofar as they can be deemed to be unrealised.
39 Operating income
Other operating income predominantly relates to management service fees charged to IMCD Group B.V.
40 Personnel expenses
The personnel expenses 2021 comprise the wages and salaries including bonuses, cost related to the employee benefit plan and social security
expenses. Further details are provided in Note 53.
41 Income tax expenses

The reconciliation between the Company's domestic income tax rate and related tax charge and the effective income tax rate and related effective
income tax charge is as follows:
203
CONSOLIDATED Reconciliation effective tax rate

FINANCIAL
EUR 1,000 2021 2020
STATEMENTS
% %
COMPANY Profit for the year 207,276 120,128
FINANCIAL
Total income tax expense 0.9 1,987 0.8 982
STATEMENTS
Profit before income tax 209,263 121,110
OTHER
INFORMATION
Income tax using the Company’s domestic tax rate 25.0 52,316 25.0 30,278
Adjustments in respect of tax exempt income (22.8) (47,758) (23.6) (28,621)
Effect of change in tax rate (0.1) (131) 0.3 330
Tax effect of:
Non-deductible expenses 0.3 553 0.2 278
Tax incentives and tax exempted income - - - -
Recognition of previously unrecognised tax losses - - - -
(De)recognition of previously (un)recognised temporary differences - - 0.0 29
Tax charge other members fiscal unity (1.4) (3,028) (1.4) (1,663)
Under provided in prior years 0.0 35 0.3 351
0.9 1,987 0.8 982
Except for withholding taxes, corporate income tax expenses of the Dutch subsidiaries are allocated to the Company as head of the fiscal unity.
42 Participating interest in group companies

The movements of the participating interest in group companies can be shown as follows:
EUR 1,000 2021 2020
Balance as at 1 January 1,663,068 1,338,271

Changes:
Investments in participating interests - 335,000
Impact of change in accounting policy - (6,170)
Share in results from participating interest after taxation 221,117 134,837
Dividends declared (147,550) (59,133)
Movement hedging reserve 106 (110)
Exchange rate differences 56,963 (81,308)
Movement other reserves 3,628 1,681
Balance as at 31 December 1,797,333 1,663,068
Accumulated impairments at 31 December - -
204
CONSOLIDATED The Company, statutorily seated in Rotterdam, owns the Group through a 100% share in the issued capital of IMCD Finance B.V., statutorily seated
FINANCIAL in Rotterdam.
STATEMENTS
COMPANY
FINANCIAL 43 Deferred tax assets
STATEMENTS
In 2021 the Company did not recognise previously unrecognised deferred tax assets related to tax losses carried forward (2020: nil). The Company
OTHER
INFORMATION
utilised deferred tax assets of EUR 3.1 million in the financial year (2020: EUR 1.3 million), EUR 0.8 million new tax credits (2020: EUR 0.6 million),
EUR 0,1 million change in tax rates (2020: EUR 0.6 million) and EUR nil prior year adjustments (2020: nil).
The deferred tax asset relates to unused tax losses, unused tax credits and share issuance expenses.
EUR 1,000 NOTE 2021 2020
Balance as at 1 January 15,513 12,291

Impact of change in accounting policy - 1,523
Movements during the year 41 (2,411) 1,699
44 Trade and other receivables

The trade and other receivables primarily relate to prepaid insurance premiums.
45 Accounts receivable from subsidiary (current)

The accounts receivable from subsidiary relates to a receivable from IMCD Group B.V. regarding management service fees.
205
CONSOLIDATED 46 Shareholders' equity

FINANCIAL
STATEMENTS
Reconciliation of movement in capital and reserve
COMPANY ISSUED SHARE TRANSLATION HEDGING OTHER UNAPPRO- TOTAL
FINANCIAL SHARE PREMIUM RESERVE RESERVE RESERVE RESERVES RETAINED PRIATED SHAREHOLDERS'
STATEMENTS EUR 1,000 CAPITAL OWN SHARES EARNINGS RESULT EQUITY
OTHER Balance as at 1 January 2021 9,118 1,051,438 (114,329) (206) (3,893) (4,774) 194,927 120,128 1,252,408
INFORMATION
Appropriation of prior year's result - - - - - - 62,000 (62,000) -
9,118 1,051,438 (114,329) (206) (3,893) (4,774) 256,927 58,128 1,252,408
Total recognised income and expense - - - - - - - 207,276 207,276
Share based payments - - - - - 1,025 (4,130) - (3,105)
Issue of shares minus related costs - - - - - - - - -
Transfer of own shares - - - - 1,721 - 3,091 - 4,812
Cash dividend - - - - - - - (58,128) (58,128)
Movement in other reserves - - 56,044 106 - 412 - - 56,562
Balance as at 31 December 2021 9,118 1,051,438 (58,285) (100) (2,172) (3,337) 255,888 207,276 1,459,825
Balance as at 1 January 2020 8,415 657,514 (36,169) (96) (4,686) (5,774) 139,315 108,006 866,525
Change in accounting policy 1 - - - - - - (4,647) - (4,647)
8,415 657,514 (36,169) (96) (4,686) (5,774) 134,668 108,006 861,878
Appropriation of prior year's result - - - - - - 60,673 (60,673) -
8,415 657,514 (36,169) (96) (4,686) (5,774) 195,341 47,333 861,878
Total recognised income and expense - - - - - - - 120,128 120,128
Share based payments - - - - - 2,818 (1,529) - 1,289
Issue of shares minus related costs 703 393,924 - - - - - - 394,627
Transfer of own shares - - - - 793 - 1,115 - 1,908
Cash dividend - - - - - - - (47,333) (47,333)
Movement in other reserves - - (78,160) (110) - (1,818) - - (80,089)
Balance as at 31 December 2020 9,118 1,051,438 (114,329) (206) (3,893) (4,774) 194,927 120,128 1,252,408
1 Reference is made to note 2 to the Financial statements
Share capital and share premium

EUR 1,000 2021 2020
Ordinary shares
In issue at 1 January 1,060,556 665,929

Issue of shares minus related cost - 394,627
In issue at 31 December - fully paid 1,060,556 1,060,556
206
CONSOLIDATED Ordinary shares

FINANCIAL At 31 December 2020, the authorised share capital comprised 150,000,000 ordinary shares of which 56,987,858 shares have been issued. All shares
STATEMENTS
have a par value of EUR 0.16 each and are fully paid.
COMPANY
FINANCIAL The holders of ordinary shares are entitled to receive dividends and are entitled to one vote per share at meetings of the Company. All shares rank
STATEMENTS
equally with regard to the Company’s residual assets.
OTHER
INFORMATION
Translation reserve
The translation reserve (legal reserve) comprises all exchange rate differences arising from the translation of the financial statements of foreign
operations as well as from the translation of liabilities that hedge the Company’s net investment in foreign subsidiaries.
Hedging reserve
The hedging reserve (legal reserve) comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments
related to hedged transactions that have not yet occurred.
Reserve own shares

The reserve own shares comprises the cost of the Company's shares held by the Group. At 31 December 2021, the Group held 44,300 of the Company's
shares (31 December 2020: 90,017 shares).
Other reserves
Other reserves relate to the accumulated actuarial gains and losses recognised in other comprehensive income and the share based payment reserve.
Unappropriated result
At the Annual General Meeting the following appropriation of the result for 2021 will be proposed: an amount of EUR 92,320 thousand to be paid out as
dividend (EUR 1.62 per share) and EUR 114,916 thousand to be added to the retained earnings.
207
CONSOLIDATED 47 Non-current liabilities

FINANCIAL
STATEMENTS
The movement in the non-current liabilities during 2021 is as follows:
COMPANY
FINANCIAL
STATEMENTS
EUR 1,000 2021 2020
OTHER
INFORMATION Balance as at 1 January 337,917 477,562
Additions (224) 105
Redemptions (55,546)
Classified as current liability (80,373)
Transaction and other finance costs paid (595)
Amortisation of transaction and other finance costs 836 959
Effect of movements in exchange rates (4,195)
The non-current liabilities consist of the carrying value of the debt capital market issuance ("Schuldscheindarlehen") with notional values of
EUR 40 million and the carrying value of the Bond loan issued in 2018, net of capitalised finance costs.
CONTRACTUAL
12 MONTHS OR LESS
EUR 1,000 CURR CARRYING AMOUNT CASH FLOWS 1 - 2 YEARS 2 - 5 YEARS >5 YEARS
Schuldscheindarlehen EUR 39,942 41,209 605 40,605 -

Bond loan EUR 297,586 330,000 7,500 7,500 315,000 -
Loans from subsidiaries EUR 1,001 - 662 339 -
Total 338,529 371,209 8,767 48,444 315,000 -
In November 2021, IMCD repayment EUR 60 million and USD 25 million for its short term debt (Schuldscheindarlehen).
The senior unsecured fixed rates note, issued by IMCD N.V. on 26 March 2018, had a closing price of EUR 104.40 at 31 December 2021 (31 December
2020: EUR 104.17). The bond is listed on the Luxembourg Euro MTF market and matures on 26 March 2025.
Further details of the Schuldscheindarlehen and the bond loan are provided in Note 29 of the consolidated financial statements.
208
CONSOLIDATED 48 Current liabilities

FINANCIAL
STATEMENTS
The Company's current liabilities as of 31 December 2021 amounts to EUR 14.2 million (31 December 2020: EUR 9.9 million) and consists of a short-term
COMPANY liability to IMCD Finance B.V. and other current liabilities.
FINANCIAL
STATEMENTS
EUR 1,000 2021 2020
OTHER
INFORMATION Accounts payable to subsidiaries 6,781 2,022
Other current liabilities

Creditors 293 385
Liabilities to personnel 833 688
Accrued interest expenses 5,878 6,083
Other accrued expenses 376 745
7,380 7,901
Current liabilities 14,160 9,923
209
CONSOLIDATED 49 Financial instruments

FINANCIAL
STATEMENTS
The Company has exposure to the following risks:
COMPANY • credit risk
FINANCIAL • liquidity risk
STATEMENTS
• market risk
• operational risk
OTHER
INFORMATION
In note 5 to the consolidated financial statements information is included about the Group’s exposure to each of the above risks, the Group’s objectives,
policies and processes for measuring and managing risk, and the Group’s management of capital.
These risks, objectives, policies and processes for measuring and managing risk, and the management of capital apply also to the company financial
statements of IMCD N.V.
50 Off-balance sheet commitments

The Company is head of a tax entity for corporate income tax. The Company together with other Dutch group companies form part of this fiscal unity.
As a consequence, the Company is jointly and severally liable for the corporate income taxes due by these tax entities.
51 Fees of the auditor

With reference to Section 2:382a(1) and (2) of The Netherlands Civil Code, the following fees for the financial year have been charged by Deloitte
Accountants B.V. and other Deloitte member firms and affiliates to the Company, its subsidiaries and other consolidated entities.
EUR 1,000 2021 2020

Deloitte Total Deloitte Deloitte Total Deloitte
Accountants B.V. Other Deloitte Accountants B.V. Other Deloitte
member firms and member firms and
affiliates affiliates
Statutory audits of annual reports 761 1,190 1,952 864 1,098 1,962
Other assurance services 56 - 56 59 - 59
Tax advisory services - - - - - -
Other non-audit services - - - - - -
817 1,190 2,007 923 1,098 2,021
210
CONSOLIDATED 52 Related parties

FINANCIAL
STATEMENTS
Transactions with key management personnel
COMPANY The members of the Management Board and the Supervisory board are considered key management personnel as defined in IAS 24 ‘Related party
FINANCIAL disclosures’. For details on their remuneration, reference is made to Note 53.
STATEMENTS
Other related party transactions

OTHER
INFORMATION
The Company, as service provider, maintains a management service agreement with IMCD Group B.V. for services rendered by the Management Board
to the group. The total management service fees charged in 2021 amounted to EUR 3,573 thousand (2020: EUR 3,514 thousand). All related party
transactions were priced on an at arm’s-length basis.
53 Compensation of the Management Board and the Supervisory Board

The Management Board and Supervisory board members’ compensation, including pension obligations as intended in Section 2:383(1) of The
Netherlands Civil Code, which were charged in the financial year to the Company and group companies is as follows:
Compensation Management Board

SHARE BASED
EUR 1,000 YEAR SALARY BONUS PAYMENT PENSION OTHER TOTAL
P.C.J. van der Slikke 2021 669 468 835 36 48 2,056
2020 660 454 986 36 50 2,186
H.J.J. Kooijmans 2021 521 365 650 37 49 1,622
2020 514 354 756 33 51 1,708
Total 2021 1,190 833 1,485 73 97 3,678
2020 1,174 808 1,742 69 101 3,894
As of 31 December 2021, the total number of shares conditionally granted to P.C.J. van der Slikke and H.J.J. Kooijmans is 31,898 (31 December 2020:
36,293) respectively 24,848 (31 December 2020: 27,947). The reported bonus and share based payment amounts include adjustments related to
prior years. The other remunerations include health insurance premiums, business expense allowances, social security premiums and company car
expenses. Further details of the Management Board compensation are provided in the Remuneration Report (see page 93).
211
CONSOLIDATED Compensation Supervisory Board

FINANCIAL
EUR 1,000 2021 2020
STATEMENTS
J. Smalbraak 75 54
COMPANY A.J.Th. Kaaks 70 60
FINANCIAL
V. Diele-Braun 63 30
STATEMENTS
S.R. Nanninga 68 58
A.E. Hebert 65 31
OTHER
INFORMATION M.G.P. Plantevin 28 68
J. Van Nauta Lemke-Pears - 24
Total 369 325
In addition to the aforementioned compensation, the Management Board and Supervisory Board members receive reimbursements for out-of-pocket
expenses. Since these benefits serve to cover actual costs incurred and are not considered to form part of the remuneration as such, they have not been
included in the above totals.
54 Provision regarding the appropriation of profit

At the Annual General Meeting the following appropriation of the result for 2021 will be proposed: an amount of EUR 92,320 thousand to be paid out as
dividend (EUR 1.62 per share) and EUR 114,916 thousand to be added to the retained earnings.
55 Subsequent events
There were no material events after 31 December 2021 that would have changed the judgement and analysis by management of the financial condition
at 31 December 2021 or the result for the year of the Company.
Rotterdam, 24 February 2022
The Management Board: The Supervisory Board:

P.C.J. van der Slikke J. Smalbraak
H.J.J. Kooijmans A.J.Th. Kaaks
V. Diele-Braun
S.R. Nanninga
A.E. Hebert
212
CONSOLIDATED
FINANCIAL
STATEMENTS
List of group companies
COMPANY
as per 31 December 2021
FINANCIAL
STATEMENTS
OTHER The list of group companies is as follows (100% owned unless mentioned otherwise):
INFORMATION IMCD Finance B.V. Rotterdam The Netherlands
IMCD Group B.V. Rotterdam The Netherlands
IMCD Participations II B.V. Rotterdam The Netherlands
Internatio Special Products B.V. Rotterdam The Netherlands
IMCD Benelux B.V. Rotterdam The Netherlands
Jan Dekker B.V. 1 Rotterdam The Netherlands
IMCD Benelux N.V. Mechelen Belgium
IMCD France Investments S.A.S. Paris France
IMCD Holding France S.A.S. Paris France
IMCD France S.A.S. Paris France
IMCD Espanã Especialidadis Quimicas S.A. Madrid Spain
IMCD Portugal Produtos Quimicos Lda Lisbon Portugal
IMCD Maroc S.a.r.l. Casablanca Morocco
IMCD Manufacturing Tunisia S.a.r.l. 2 Tunis Tunisia
IMCD Tunisia S.a.r.l. Tunis Tunisia
S.a.r.l. IMCD Group Algerie (49% of the shares) Algiers Algeria
IMCD Deutschland GmbH Cologne Germany
Otto Aldag Handel GmbH Cologne Germany
DCS Pharma GmbH 3 Lüneburg Germany
IMCD UK Acquisitions Ltd. Sutton United Kingdom
IMCD Holding UK Ltd. Sutton United Kingdom
IMCD UK Investments Ltd. Sutton United Kingdom
IMCD UK Ltd. Sutton United Kingdom
IMCD Ireland Ltd. Dublin Ireland
IMCD Italia S.p.A. Milan Italy
Gopharma S.r.l. 3 Milan Italy
IMCD Norway AS Ski Norway
IMCD Nordic AB Malmö Sweden
IMCD Sweden AB Malmö Sweden
IMCD Finland Oy Helsingfors Finland
Oy Kokko-Fiber AB 4 Kokkola Finland
IMCD Danmark AS Helsingør Denmark
213
CONSOLIDATED IMCD Baltics UAB Vilnius Lithuania

FINANCIAL IMCD South East Europe GmbH Vienna Austria
STATEMENTS
IMCD Czech Republic s.r.o. Prague Czech Republic
COMPANY IMCD Romania srl Bucarest Romania
FINANCIAL IMCD Switzerland AG Zürich Switzerland
STATEMENTS
Tentum Holding AG 5 Basel Switzerland
DCS Pharma AG 5 Basel Switzerland
OTHER
Chemsource SA 5 Lugano Switzerland
INFORMATION
IMCD Polska Sp.z.o.o. Warsaw Poland
IMCD Rus LLC Saint-Petersburg Russia
IMCD Ukraine LLC Kiev Ukraine
IMCD Ticaret, Pazarlama ve Danişmanlik Limited Şirketi Istanbul Turkey
Ejder Kimya İlaç Danışmanlık Sanayi ve Ticaret A.Ş. 6 Istanbul Turkey
Zifroni Chemicals Suppliers Ltd Rishon LeZion Israel
Internatio Special Products Egypt LLC Cairo Egypt
IMCD Egypt LLC Cairo Egypt
IMCD Middle East FZCO Dubai United Arab Emirates
IMCD Middle East Trading LLC Dubai United Arab Emirates
IMCD Arabia Trading LLC (75% of the shares) 7 Riyadh Saudi Arabia
IMCD South Africa Pty. Ltd. Isando South Africa
Chemimpo South Africa Pty. Ltd. Randburg South Africa
Siyeza Fine Chem Propriety Limited 8 Johannesburg South Africa
IMCD Kenya Ltd. Nairobi Kenya
IMCD Uganda SMC Ltd. Kampala Uganda
IMCD Holdings US, Inc. Jersey City United States of America
IMCD US LLC Cleveland United States of America
MJS Sales Inc. Cleveland United States of America
IMCD US Food Inc. Washington United States of America
IMCD Puerto Rico Inc. Cayey Puerto Rico
IMCD Canada Limited Brampton Canada
IMCD Mexico S.A. de C.V. Miguel Hidalgo Mexico
International Chemical Product Services Mexico S. de RL de CV Miguel Hidalgo Mexico
Millikan S.A. de C.V. 9 Mexico City Mexico
Banner Quimica S.A. de C.V. 9 Mexico City Mexico
Materias Químicas de México S.A. de C.V. 10 Mexico City Mexico
Pluralmex S.A de C.V. 10 Mexico City Mexico
Andes Chemical LLC 11 Miami United States of America
Andes Chemical Dominicana SRL 11 Santo Domingo Dominican Republic
Andes Chemical Peru SRL 11 Lima Peru
Andes Chemical Centro America SRL 11 Sant José Costa Rica
214
CONSOLIDATED Gateway warehouse & consolidators, LLC 11 Miami United States of America
FINANCIAL IMCD Brasil Comércio e Indústria de Produtos Quimicos Ltda. São Paulo Brazil
STATEMENTS
IMCD Brasil Farmacêuticos Importação, Exportação e Representações Ltda São Paulo Brazil
COMPANY Vitaqualy Comercio de Ingredientes LTDA São Paulo Brazil
FINANCIAL IMCD Chile SpA Santiago de Chile Chile
STATEMENTS
IMCD Argentina SRL Buenos Aires Argentina
IMCD Uruguay SA Montevideo Uruguay
OTHER
IMCD Colombia SAS 12 Bogota Colombia
INFORMATION
Siliconas y Químicos 11 Bogota Colombia
IMCD Australasia Investments Pty. Ltd Melbourne Australia
IMCD Australia Pty Ltd. Melbourne Australia
IMCD New Zealand Ltd. Auckland New Zealand
IMCD Asia Pacific Sdn Bhd Shah Alam Malaysia
IMCD Malaysia Sdn Bhd Shah Alam Malaysia
IMCD Asia Pte. Ltd. Singapore Singapore
IMCD Singapore Pte. Ltd. Singapore Singapore
IMCD (Thailand) Co., Ltd. Bangkok Thailand
IMCD (China) Co. Ltd. 13 Shanghai China
IMCD International Trading (Shanghai) Co. Ltd. Shanghai China
IMCD Plastics (Shanghai) Co. Ltd. Shanghai China
Velox China Ltd (50% of the shares) Shanghai China
1 Merged with IMCD Benelux B.V. Velox China HK Co. Ltd (50% of the shares) Hong Kong Hong Kong
2 Liquidated October 2021 Shanghai Yuanhe Chemicals Co. Ltd. 14 Shanghai China
3 In liquidation Yuanhe HK Limited 14 Hong Kong Hong Kong
4 Merged with IMCD Finland Oy DCS Pharma China Co. 3 Shanghai China
5 Merged with IMCD Switzerland AG Whawon Pharm Co. Ltd. (78% of the shares) Seoul South Korea
6 Since January 2021, merged IMCD Japan Godokaisha Tokyo Japan
with IMCD Ticaret, Pazarlama ve IMCD Vietnam Company Ltd Ho Chi Minh City Vietnam
Danişmanlik Limited Şirketi IMCD Philippines Corporation Manila Philippines
7 Since January 2021 PT IMCD Indonesia (90.01% of shares) Jakarta Indonesia
8 Since January 2021, merged with PT Sapta Permata (90.01% of shares) Surabaya Indonesia
IMCD South Africa Pty. Ltd. PT Megasetia Agung Kimia (70%) Jakarta Indonesia
9 Merged with IMCD Mexico S.A. IMCD India Pte. Ltd. Mumbai India
de C.V. Monachem Additives Pvt Ltd 15 Vadodara India
10 Since August 2021 Addpol Chemspecialities Pvt Ltd 15 Vadodara India
11 Since May 2021 Signet Excipients Private Ltd (70% of the shares) Mumbai India
12 Formerly known as Unired IMCD Bangladesh Private Ltd Dhaka Bangladesh
Quimicas SAS
13 Formerly known as IMCD
(Shanghai) Trading Co. Ltd.
14 Since June 2021
15 Merged with IMCD India Pte. Ltd.
215
CONSOLIDATED
FINANCIAL
STATEMENTS
Other information
COMPANY
FINANCIAL
STATEMENTS Provisions in the Articles of Association governing the appropriation of profit
OTHER Article 22 of the Company’s articles of association stipulates the following with regard to the appropriation of the profit: The Management Board, with
INFORMATION the approval of the Supervisory Board, decides how much of the freely distributable profit will be reserved. The remaining profit shall be at the free
disposal of the Annual General Meeting.
Independent auditor's report

To the Shareholders and the Supervisory Board of IMCD N.V.,
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 INCLUDED IN THE
ANNUAL REPORT
Our Opinion
We have audited the accompanying financial statements for the year ended 31 December 2021 of IMCD N.V., (‘The Company’ or ‘IMCD’)
based in Rotterdam, the Netherlands. The financial statements include the consolidated financial statements and the accompanying Company
In our opinion:
• The accompanying consolidated financial statements give a true and fair view of the financial position of IMCD N.V. as at 31 December 2021, and of
its result and its cash flows for the year ended 31 December 2021 in accordance with International Financial Reporting Standards as adopted by the
European Union (EU-IFRS) and with Part 9 of Book 2 of the Dutch Civil Code.
• The accompanying Company financial statements give a true and fair view of the financial position of IMCD N.V. as at 31 December 2021, and of its
result for for the year ended 31 December 2021 in accordance with Part 9 of Book 2 of the Dutch Civil Code.
The consolidated financial statements comprise:

1. The consolidated statement of financial position as at 31 December 2021.
2. The following statements for the year ended 31 December 2021: the consolidated statement of profit and loss and comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows.
3. The notes comprising a summary of the significant accounting policies and other explanatory information.
The Company financial statements comprise:
216
CONSOLIDATED 1. The Company balance sheet as at 31 December 2021 (before profit appropriation).
FINANCIAL 2. The Company profit and loss account for the year ended 31 December 2021.
STATEMENTS
3. The notes comprising a summary of the accounting policies and other explanatory information.
COMPANY
FINANCIAL Basis for our opinion
STATEMENTS
We conducted our audit in accordance with Dutch law, including the Dutch Standards on Auditing. Our responsibilities under those standards are
further described in the "Our responsibilities for the audit of the financial statements" section of our report.
OTHER
INFORMATION
We are independent of IMCD N.V. in accordance with the EU Regulation on specific requirements regarding statutory audit of public-interest entities,
the Wet toezicht accountantsorganisaties (Wta, Audit firms supervision act), the Verordening inzake de onafhankelijkheid van accountants bij
assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence
regulations in the Netherlands. Furthermore, we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code
of Ethics).
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Information in support of our opinion

We designed our audit procedures in the context of our audit of the financial statements as a whole and in forming our opinion thereon. The following
information in support of our opinion was addressed in this context, and we do not provide a separate opinion or conclusion on these matters.
Materiality
Based on our professional judgement we determined the materiality for the financial statements as a whole at EUR 20 million (2020: EUR 12.4 million).
Based on our experience with the Company, we determined materiality at 7.3% of result before income tax (in prior year: 7.5%) excluding non-recurring
income and expenses related to a divestments. We have also taken into account misstatements and/or possible misstatements that in our opinion are
material for the users of the financial statements for qualitative reasons.
Component audits are performed using materiality levels determined by the judgement of the group audit team, considering materiality for the
consolidated financial statements as a whole and the reporting structure of the group. Component materialities did not exceed EUR 8.8 million.
We agreed with the Supervisory Board that misstatements in excess of EUR 1 million, which are identified during the audit, would be reported to them, as
well as smaller misstatements that in our view must be reported on qualitative grounds.
Scope of the group audit

IMCD N.V. is at the head of a group of entities. The financial information of this group is included in the consolidated financial statements of IMCD N.V.
Because we are ultimately responsible for the opinion, we are directing, supervising and performing the group audit. In this respect we have determined
the nature and extent of the audit procedures to be carried out for components. The extent of the procedures has been determined based on the size of
components and a number of qualitative considerations. Such considerations include the financial performance of the foreign entities and the maturity
of markets these entities are operating in.On this basis, we selected components for which a full audit (10), specified audit of balances/transactions (11)
or analytical review (remainder) was carried out on the component financial information.
217
CONSOLIDATED This resulted in the coverage as presented hereafter:

FINANCIAL
STATEMENTS
Scoping on revenue Scoping on assets
COMPANY
FINANCIAL
STATEMENTS
23 % 15 %
OTHER Analytical Analytical
INFORMATION review review
6%
5% Audit of
Audit of specified
specified account
account balances
balances 72 %
Full audit 79 %
scope Full audit
scope
218
CONSOLIDATED We have performed audit procedures ourselves at IMCD N.V., corporate entities and operations in the Netherlands. Among others we have assessed
FINANCIAL group-wide internal controls that have been implemented by the Management Board to monitor and manage the financial and operating performance
STATEMENTS
of the various operating units. Furthermore, the group audit team performed audit procedures on the consolidation, the IT environment, impairment
COMPANY (trigger) testing for goodwill and supplier relations, purchase price allocation of acquisitions and audit procedures on sales, costs of goods sold, loans
FINANCIAL and borrowings and testing of manual journal entries.
STATEMENTS
We have used the work of component audit teams for all significant component entities. The group audit team provided detailed written instructions
OTHER
INFORMATION
to all component auditors to communicate requirements and significant audit areas and to create awareness for (fraud) risks related to management
override of controls. Furthermore, we developed a plan for overseeing each component audit team based on its relative significance to the group
and other risk characteristics. Our oversight included continuous update meetings, performing file reviews, performing on-site visits, attending
management closing meetings and reviewing component audit team deliverables. For out-scoped components, we performed analytical procedures. In
view of COVID-19, travel restrictions for certain countries have required us to exert our involvement in work performed by those component teams in a
remote way. Therefore, on-site visits and file reviews were replaced by digital review procedures and remote meetings.
By performing the procedures mentioned above at group entities, together with additional procedures at group level, we have been able to obtain
sufficient and appropriate audit evidence about the group's financial information to provide an opinion about the consolidated financial statements.
Audit approach fraud risks

In accordance with Dutch Standards on Auditing, we are responsible for obtaining reasonable assurance that the financial statements taken as a whole
are free from material misstatements, whether due to fraud or error.
Inherent to our responsibilities for the audit of the financial statements, there is an unavoidable risk that material misstatements go undetected, even
though the audit is planned and performed in accordance with Dutch law. The risk of undetected material misstatements due to fraud is even higher, as
fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Also, we are not responsible for the
prevention and detection of fraud and non-compliance with all laws and regulations. Our audit procedures differ from a forensic or legal investigation,
which often have a more in-depth character.
We identified and assessed the risks of material misstatements of the financial statements due to fraud. During our audit we obtained an understanding
of the entity and its environment and the components of the system of internal control, including the risk assessment process and management’s
process for responding to the risks of fraud and monitoring the system of internal control and how the Supervisory Board exercises oversight, as well
as the outcomes. In obtaining our understanding we performed inquiries with management, those charged with governance and with others within the
Company, including but not limited to the Corporate General Counsel, Director Corporate Control, Director Internal Audit and Component directors.
As part of our process of identifying fraud risks, we evaluated fraud risk factors with respect to financial reporting fraud, misappropriation of assets
and bribery and corruption in close co-operation with our forensic specialists. We evaluated whether these factors indicate that a risk of material
misstatement due fraud is present.
Following these procedures, and the presumed risks under the prevailing audit standards, we considered fraud risks related to management override
of controls and related to manual entries to revenue. Our audit procedures to respond to these fraud risks include, amongst others, an evaluation of
relevant internal controls and supplementary substantive audit procedures, including detailed testing of journal entries and post-closing adjustments
based on supporting documentation. Data analytics, including selection of journal entries based on risk-based characteristics, form part of our audit
approach to address the identified fraud risks.
219
CONSOLIDATED Additionally, we performed further procedures including, among others, the following:
FINANCIAL • We incorporated elements of unpredictability in our audit. We also considered the outcome of our other audit procedures and evaluated whether any
STATEMENTS
findings were indicative of fraud or non-compliance.
COMPANY • We evaluated whether the selection and application of accounting policies by the group, particularly those related to subjective measurements, may
FINANCIAL be indicative of fraudulent financial reporting.
STATEMENTS
• We evaluated whether the judgments and decisions made by management in making the accounting estimates included in the financial statements
indicate a possible bias that may represent a risk of material misstatement due to fraud. Management insights, estimates and assumptions
OTHER
INFORMATION
that might have a major impact on the financial statements are disclosed in Note 2 of the financial statements. We performed a retrospective
review of management judgments and assumptions related to significant accounting estimates reflected in prior year financial statements. Certain
management estimates and judgements are considered most significant to our audit. Reference is made to the section “Our key audit matters” for
further details on those estimates and judgments.
Audit approach compliance with laws and regulations

We assessed the laws and regulations relevant to the Company through discussion with, amongst others, management, Corporate General Counsel and
those charged with governance, reading minutes of board meetings and reports of internal audit. We involved our forensic specialists in this evaluation.
As a result of our risk assessment procedures, and while realizing that the effects from non-compliance could considerably vary, we considered the
following laws and regulations: adherence to (corporate) tax law and financial reporting regulations, the requirements under the International Financial
Reporting Standards as adopted by the European Union (EU-IFRS) and Part 9 of Book 2 of the Dutch Civil Code with a direct effect on the financial
statements as an integrated part of our audit procedures, to the extent material for the related financial statements. We obtained sufficient appropriate
audit evidence regarding provisions of those laws and regulations generally recognized to have a direct effect on the financial statements.
Apart from these, the Company is subject to other laws and regulations where the consequences of non-compliance could have a material effect on
amounts and/or disclosures in the financial statements, for instance, through imposing fines or litigation. In addition, we considered major laws and
regulations applicable to listed companies.
Our procedures are more limited with respect to these laws and regulations that do not have a direct effect on the determination of the amounts and
disclosures in the financial statements. Compliance with these laws and regulations may be fundamental to the operating aspects of the business,
to IMCD's ability to continue its business, or to avoid material penalties and therefore non-compliance with such laws and regulations may have a
material effect on the financial statements. Our responsibility is limited to undertaking specified audit procedures to help identify non-compliance with
those laws and regulations that may have a material effect on the financial statements. Our procedures are limited to (i) inquiry of management, those
charged with governance and others within the Company as to whether the Company is in compliance with such laws and regulations and (ii) inspecting
correspondence, if any, with the relevant licensing or regulatory authorities to help identify non-compliance with those laws and regulations that may
have a material effect on the financial statements.
We remained alert to indications of (suspected) non-compliance throughout the audit. Finally, we obtained written representations that all known
instances of (suspected) fraud or non-compliance with laws and regulations have been disclosed to us.
Audit approach going concern

Our responsibilities, as well as the responsibilities of the Management Board and the Supervisory Board, related to going concern under the prevailing
standards are outlined in the “Description of responsibilities regarding the financial statements” section below. In fulfilling our responsibilities, we
220
CONSOLIDATED performed procedures including evaluating management’s assessment of the Company’s ability to continue as a going concern and considering the
FINANCIAL impact of financial, operational, and other conditions. Based on these procedures, we did not identify any reportable findings related to the entity’s
STATEMENTS
ability to continue as a going concern.
COMPANY
FINANCIAL Our key audit matters
STATEMENTS
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements. We have
communicated the key audit matters to the Supervisory Board. The key audit matters are not a comprehensive reflection of all matters discussed.
OTHER
INFORMATION
In determining our key audit matters, we have reconsidered those included in the previous year and concluded that the key audit matter related to ‘IT
landscape and financial reporting’ is no longer applicable due to the completion of IT migrations in a substantial number of IMCD’s operating companies
and other improvements made to the IT environment. In addition, the previous year key audit matter on business acquisitions was specific to the ‘Signet
purchase price allocation’ whereas in the current year the general key audit matter on ‘Business acquisitions’ is included.
KEY AUDIT MATTER DESCRIPTION HOW THE KEY AUDIT MATTER WAS ADDRESSED IN THE AUDIT AND OUR OBSERVATION
Impairment of goodwill and supplier relations – Refer to Note As part of our audit we evaluated historical accuracy of budgeting and the sensitivities
18 to the financial statements in management estimates for key assumptions, including projections of future cash flows,
discount rates and long term growth rates. We focused our substantive audit efforts on those
IMCD grows its business organically and through acquisitions. As a estimates that could potentially cause the existing headroom to change into an impairment
result of these acquisitions, the balance sheet as at December 31, and/or trigger an impairment.
2021 carries goodwill of EUR 1.257 million and supplier relations of
EUR 499 million. In 2021, goodwill and supplier relations increased We obtained an understanding of management’s process over the impairment test and the
due to multiple acquisitions, with the acquisition of Andes impairment trigger test.
Chemical (and acquired related subsidiaries), Materias Químicas
de México, S.A. de C.V & Pluralmex, S.A. de C.V. and PT Megasetia We verified whether projections were based on internal budgets and financial plans approved by
Agung Kimia (see key audit matter ‘Business Combinations’) being the Supervisory Board. Furthermore, we challenged and compared revenue projections to, for
the most substantial ones for the year. example, external economic outlook data and expected inflation rates in which we focused on
those estimates that could cause a change in the outcome of impairment testing.
For purposes of impairment testing, IMCD allocates goodwill
to three cash-generating units (CGU’s). Suppliers relations are With the involvement of Deloitte valuation experts we evaluated the appropriateness of the
grouped to the smallest CGUs. For goodwill, IMCD tests its impairment models used by IMCD, the discount rates and long term growth rates applied and
CGU’s annually and upon the existence of a triggering event, by compared the methodology and outcomes to relevant industry and capital market information.
comparing the recoverable amounts of the individual CGU’s, being Additionally, we assessed the various scenarios applied in impairment testing as disclosed in
the higher of value-in-use and fair value less cost of disposal, to Note 18 to the consolidated financial statements in view of the current market conditions, trends
the carrying amounts in accordance with IAS 36. The recoverable in financial performance and the uncertainty around recovery of the industries in which IMCD
amounts for supplier relations are assessed upon the existence of a operates in view of the COVID-19 pandemic.
triggering event. Additionally, IMCD discloses the key assumptions
used in determining the recoverable amounts and the sensitivity of Key observations
the impairment test for changes in those assumptions in Note 18 of
the financial statements.
IMCD did not identify impairments. Within the context of our audit on the financial statements
as a whole and based on the materiality applied, we conclude that the assumptions used
We identified impairment of goodwill and supplier relations as a in the impairment calculations are reasonable and within an acceptable range. Furthermore,
key audit matter because of the amounts involved, the complexity the sensitivity of the impairment test to changes in the most critical assumptions used are
of the assessment process and the significance of management appropriately disclosed in Note 18 to the consolidated financial statements.
estimates for key assumptions used, including projections of future
cash flows, discount rates and (terminal) growth rates. In addition,
221
CONSOLIDATED the COVID-19 pandemic is adding some level of uncertainty to the

FINANCIAL projection of future operating cash flows, eventhough the portfolio
STATEMENTS has proven to be rather robust and not overly sensitive to the
results of the pandemic thus far.
COMPANY
FINANCIAL
STATEMENTS
OTHER
INFORMATION
222
CONSOLIDATED KEY AUDIT MATTER DESCRIPTION HOW THE KEY AUDIT MATTER WAS ADDRESSED IN THE AUDIT AND OUR OBSERVATION
FINANCIAL Business Combinations – Refer to note 7 to the The Management Board of IMCD engaged valuation experts to assist them in the purchase price
STATEMENTS financial statements allocation for the acquisition of Andes Chemical (and acquired related subsidiaries), Materias
Químicas de México, S.A. de C.V & Pluralmex, S.A. de C.V. and PT Megasetia Agung Kimia.
COMPANY
FINANCIAL IMCD completed multiple business acquisitions throughout the
STATEMENTS year. Most substantial were the acquisitions of Andes Chemical As part of our audit, we obtained an understanding of management’s process and controls over
(and acquired related subsidiaries), Materias Químicas de México, the assessment of key assumptions used in the purchase price allocation and data and outputs
S.A. de C.V & Pluralmex, S.A. de C.V. and PT Megasetia Agung Kimia used by the valuation expert.
OTHER
on respectively May 18, 2021, August 19, 2021 and December 22,
INFORMATION
2021. IFRS 3 requires management to apply judgement and use Furthermore, we performed more substantive audit procedures on the purchase price allocation
assumptions in determining the fair value of identified assets and in line with IFRS 3. We inspected the Share Purchase Agreement and other relevant legal
liabilities and to determine the resulting goodwill to be recognized. documents, evaluated management’s identification of assets and liabilities acquired, tested the
reliability of data used and challenged management’s key assumptions in determining the fair
Following the acquisition of businesses in 2021 goodwill and other value of the supplier relations.
intangibles increased by EUR 158 million and EUR 60 million
respectively. We identified the allocation of the purchase price We engaged Deloitte valuation experts to assist us in assessing the appropriateness of
and the valuation of these assets to be an audit area of focus the models used, benchmarking certain assumptions (including cash flow projections) and
considering the amounts involved, prevailing uncertainties in global evaluating the appropriateness of discount rates applied. In addition, we validated the
economies and the extent of management judgement involved to appropriateness and completeness of disclosures related to IMCD’s acquisitions, as included
estimate the fair values of assets and assumptions such as the in Note 7 to the consolidated financial statements.
discount rate and (terminal) growth rate.
Key observations
Based on our materiality and procedures performed and in the context of the audit of the
consolidated financial statements as a whole, we observed that IFRS 3 requirements regarding
recognition and valuation of assets and liabilities were met in the purchase price allocation of
Andes Chemical (and acquired related subsidiaries), Materias Químicas de México, S.A. de C.V &
Pluralmex, S.A. de C.V. and PT Megasetia Agung Kimia and are appropriately disclosed in Note 7
to the consolidated financial statements.
REPORT ON THE OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT

In addition to the financial statements and our auditor's report thereon, the annual report contain other information that consists of:
• Report of the Management Board.
• Other Information as required by Part 9 of Book 2 of the Dutch Civil Code.
• Other information included in the Annual Report.
Based on the following procedures performed, we conclude that the other information:
• Is consistent with the financial statements and does not contain material misstatements.
• Contains the information as required by Part 9 of Book 2 of the Dutch Civil Code.
We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise,
we have considered whether the other information contains material misstatements.
223
CONSOLIDATED By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the Dutch Civil Code and the Dutch Standard 720. The scope of
FINANCIAL the procedures performed is substantially less than the scope of those performed in our audit of the financial statements.
STATEMENTS
COMPANY Management is responsible for the preparation of the other information, including the report of the Management Board in accordance with Part 9 of
FINANCIAL Book 2 of the Dutch Civil Code, and the other information as required by Part 9 of Book 2 of the Dutch Civil Code.
STATEMENTS
REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS

OTHER
INFORMATION
Engagement
We were engaged by the Supervisory Board as auditor of IMCD N.V. on June 22, 2021, for the audit for the year 2021. Since 2016, we have operated as
statutory auditor.
European Single Electronic Format ("ESEF")

In the Commission Delegated Regulation (EU) 2019/815 of 17 December 2018 supplementing Directive 2004/109/EC of the European Parliament
and of the Council with regard to regulatory technical standards on the specification of a single electronic reporting format is regulated that the
Annual Report of the Company has to be prepared in a single electronic reporting format (“ESEF”). The requirements to be met are set out in the
aforementioned delegated regulation (these requirements are hereinafter referred to as: the RTS on ESEF).
In our opinion, the Annual Report made up in XHTML format, including the partly tagged Consolidated Financial Statements as included in the reporting
package by the Company, has been prepared in all material respects in accordance with the RTS on ESEF.
Management is responsible for preparing the Annual Report including the financial statements in accordance with the RTS on ESEF, whereby
management combines the various components in a reporting package. Ourresponsibility is to obtain reasonable assurance for our conclusion whether
the Annual Report in this reporting package, is in accordance with the requirements. We have taken into consideration what is stated in Alert 43. Our
procedures included:
• Obtaining an understanding of the entity’s financial reporting process, including the preparation of the reporting package;
• Obtaining the reporting package and performing validations to determine whether the reporting package containing the Inline XBRL instance
document and the XBRL extension taxonomy files have been prepared in accordance with the technical specifications; and
Examining the information related to the Consolidated Financial Statements in the reporting package to determine whether all required tagging has
been applied and whether they are in accordance with the RTS on ESEF.
No prohibited non-audit services

We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audit
of public-interest entities.
DESCRIPTION OF RESPONSIBILITIES FOR THE FINANCIAL STATEMENTS

Responsibilities of Management and the Supervisory Board for the financial statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with EU-IFRS and Part 9 of Book 2 of the
Dutch Civil Code. Furthermore, management is responsible for such internal control as management determines is necessary to enable the preparation
of the financial statements that are free from material misstatement, whether due to fraud or error.
224
CONSOLIDATED As part of the preparation of the financial statements, management is responsible for assessing the Company's ability to continue as a going concern.
FINANCIAL Based on the financial reporting frameworks mentioned, management should prepare the financial statements using the going concern basis of
STATEMENTS
accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
COMPANY
FINANCIAL Management should disclose events and circumstances that may cast significant doubt on the Company's ability to continue as a going concern in the
STATEMENTS
OTHER
INFORMATION
The Supervisory Board is responsible for overseeing the Company's financial reporting process.
Our responsibilities for the audit of the financial statements

Our objective is to plan and perform the audit assignment in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion.
Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during
our audit.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements. The materiality affects the nature, timing and extent of our
audit procedures and the evaluation of the effect of identified misstatements on our opinion.
We have exercised professional judgement and have maintained professional skepticism throughout the audit, in accordance with Dutch Standards on
Auditing, ethical requirements and independence requirements. Our audit included e.g.:
• Identifying and assessing the risks of material misstatement of the financial statements, whether due to fraud or error, designing and performing
audit procedures responsive to those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
• Obtaining an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
• Evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made
by management.
• Concluding on the appropriateness of management's use of the going concern basis of accounting, and based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
• Evaluating the overall presentation, structure and content of the financial statements, including the disclosures.
• Evaluating whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with the Supervisory Board regarding, among other matters, the planned scope and timing of the audit and significant audit findings,
including any significant findings in internal control that we identified during our audit. In this respect we also submit an additional report to the
Audit Committee in accordance with Article 11 of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. The
information included in this additional report is consistent with our audit opinion in this auditor's report.
225
CONSOLIDATED We provide the Supervisory Board with a statement that we have complied with relevant ethical requirements regarding independence, and to
FINANCIAL communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable,
STATEMENTS
related safeguard.
COMPANY
FINANCIAL From the matters communicated with the Supervisory Board, we determine the key audit matters: those matters that were of most significance in
STATEMENTS
the audit of the financial statements. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the
matter or when, in extremely rare circumstances, not communicating the matter is in the public interest.
OTHER
INFORMATION
Amsterdam, February 24, 2022
Deloitte Accountants B.V.
C. Brinkhorst
226
CONSOLIDATED
FINANCIAL
STATEMENTS
Other information not forming part
COMPANY
of the financial statements
FINANCIAL
STATEMENTS
OTHER
INFORMATION
227
CONSOLIDATED Ten-year summary

FINANCIAL
STATEMENTS
EUR MILLION 2021 2020 1 2019 2018 2017 2016 2015 2014 2013 2012
COMPANY .
FINANCIAL RESULTS
STATEMENTS
Revenue 3,435.3 2,774.9 2,689.6 2,379.1 1,907.4 1,714.5 1,529.8 1,358.3 1,233.4 1,116.6
Year on year revenue growth 24% 3% 13% 25% 11% 12% 13% 10% 10% 9%
OTHER
INFORMATION Gross profit 836.3 647.5 599.3 536.1 428.7 381.6 332.8 287.6 261.3 237.9
Gross profit as a % of revenue 24.3% 23.3% 22.3% 22.5% 22.5% 22.3% 21.8% 21.2% 21.2% 21.3%
1 The period ended 31 December Result from operating activities 305.5 190.4 176.1 162.6 125.2 107.5 91.2 82.4 73.4 69.7
2020 has been restated as a Operating EBITDA 2 401.0 268.8 246.8 207.5 166.0 152.1 131.8 112.7 99.0 92.0
result of a change in accounting Operating EBITA 3 373.6 243.2 224.8 202.1 161.7 147.8 128.3 110.0 96.6 90.2
policy detailed in Note 2 to the Year on year Operating EBITA growth 54% 8% 11% 25% 9% 15% 17% 14% 7% 6%
Financial statements Operating EBITA as a % of revenue 10.9% 8.8% 8.4% 8.5% 8.5% 8.6% 8.4% 8.1% 7.8% 8.1%
2 Result from operating activities Conversion margin 4 44.7% 37.6% 37.5% 37.7% 37.7% 38.7% 38.5% 38.2% 37.0% 37.9%
before depreciation of tangible Net result before amortisation / non-recurring items 267.7 168.3 156.2 139.7 110.1 102.6 87.2 54.3 13.1 (0.7)
assets and amortisation of
intangible assets and non- CASH FLOW
recurring items Free cash flow 5 278.9 277.4 222.2 166.5 161.3 140.4 119.3 94.6 80.5 86.5
3 Result from operating activities Cash conversion margin 6 72.6% 109.4% 97.4% 79.3% 97.2% 92.3% 90.5% 83.9% 81.3% 94.0%
before amortisation of intangibles

BALANCE SHEET
and non-recurring items
4 Working capital 612.5 443.7 435.9 399.8 314.3 248.4 227.8 179.7 150.7 121.0
Operating EBITA as percentage of
Total equity 1,461.4 1,252.4 866.5 786.3 729.2 722.1 653.8 530.8 (67.1) (49.7)
gross profit
5 Net debt 940.0 727.0 735.2 610.7 490.0 397.6 437.5 266.6 823.5 724.6
Operating EBITDA excluding
Net debt/operating EBITDA ratio 7 2.3 2.3 2.8 2.8 2.8 2.6 2.9 2.4 8.3 7.9
non-cash share-based payment
expenses, less lease payments,
EMPLOYEES
plus/less changes in working
Number of full time employees end of period 3,740 3,298 2,991 2,799 2,265 1,863 1,746 1,512 1,452 1,108
capital, less capital expenditures
6 Free cash flow as percentage
SHARES
of adjusted operating EBITDA
Number of shares issued at year-end (x 1,000) 56,988 56,988 52,592 52,592 52,592 52,592 52,592 50,000
(operating EBITDA plus non-cash
Weighted average number of shares (x 1,000) 56,940 53,750 52,475 52,443 52,425 52,477 51,612 25,118
share-based payment costs minus
Earnings per share 3.64 2.24 2.06 1.91 1.47 1.39 1.20 0.8
lease payments); before 2018
Cash earnings per share 8 4.64 3.03 2.85 2.53 2.06 2.01 1.79 1.4
calculated as free cash flow as
(Proposed) dividend per share 1.62 1.02 0.90 0.80 0.62 0.55 0.44 0.2
percentage of operating EBITDA
7 Including full year impact
of acquisitions
8 Result for the year before
amortisation (net of tax) divided
by the weighted average number
of outstanding shares
228
Colophon
Contact
Head office IMCD N.V.
Wilhelminaplein 32
3072 DE Rotterdam
The Netherlands
Phone: +31 10 - 290 86 84
Fax: +31 10 - 290 86 80
Concept and graphic design

CF Report, Amsterdam, The Netherlands
Creation and publication software

Tangelo Software B.V., Zeist,
The Netherlands
Photography
iStock
Shutterstock
Sabine Grothues
Siddharth Shah
Priyesh Vishwakarma
Meghesh Muralidharan
Jake Mathew
Dik Nicolai
Nini Cortadellas
Lenny Photography
Pimlada Thanachoknitiwat
229

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Welcome

Foreword by the CEO 4 Our business groups 19 Governance 77

2021 Highlights 6 Our organisation 18 Management Board 77

When it comes to new businesses, our horizons

Expect eye-opening statistics, thoughtful interview

Read more >

Read more >

*excluding Holdings *excluding Holdings

2021 FINANCIAL Americas EMEA Asia-Pacific

SHAREHOLDER speciality chemicals distribution. markets with Siliconas y Químicos.

In 2021, 48.5 million IMCD shares were being traded, a 210

decrease of 29% compared to the 68.1 million shares 195

encapsulating all trading venues that operate a lit order 150

book), which includes Euronext Amsterdam (35 million 135

in 2021 vs. 41 million in 2020). The average daily lit

the IMCD business model and implementation so that

Trading volume shares

Trading volume value

OUR BUSINESS Dividend policy

Major shareholders Ticker symbols

We are focusing on delivering future-focused, sustainable solutions that are

Our local activities are further strengthened by the

Food & Nutrition Lubricants & Energy Synthesis Advanced ­Materials

Home Care and I&I

Our market segments

IMCD Home Care and I&I* offers Sustaining a change

Our portfolio is constantly evolving to meet the Home from Home

Read more >

* Home Care and Industrial & Institutional

IMCD HOME CARE AND I&I

Towards greener and “We always strive to develop

cleaner laundry respond to consumer needs.

Our market segments

IMCD Pharmaceuticals has a network of six Patient-friendly dosage forms

IMCD Pharmaceuticals collaborates with customers

Biopharma Excipients & formulation

Read more >

Nutraceuticals Regulated Synthesis

Vegan, sugar-free gummy “We are proud to to have

to support the immune formulation that not only

Beauty & Personal Care

Our market segments

At IMCD Beauty & Personal Care, we shape In transparency we trust

We offer a wide range of specialities, with products

IMCD BEAUTY & PERSONAL CARE

Maskne is the new acne “It was quite a challenge to

Developing the next best formula for acne-prone skin.

thing in skin care products

Coatings & Construction

Our market segments

IMCD Coatings & Construction offers Green & circular

• Resins & binders

IMCD COATINGS &­C

Shortages drive innovation “The availability of the

Food & Nutrition

Our market segments

At IMCD Food & Nutrition, we are Generation health

At IMCD Food & Nutrition, we offer an extensive

Read more >

Savoury & meat alternatives Confectionery & chocolate

excluding Holdings excluding Holdings

Food & Nutrition Lubricants & Energy Synthesis Advanced Materials

IMCD COATINGS &C

IMCD ADVANCED MATERIALS

1 FTE’s leaving due to one-off divestitures and work hoursadjustments excluded