03 Financial Statements

Association HZPC, with chamber of commerce number 01086659, was founded on 29 November 1999 by means of a legal merger between Coöperatie De ZPC Pootgoed Belangen B.A. and Stichting Administratiekantoor Hettema, which were both converted to form part of the Association HZPC.

The Association HZPC has the legal ownership of 100% of the shares in HZPC Holding B.V. in Joure.

The objective of the Association HZPC is:

• the issuing and management of share certificates in the Company;
• promoting certain material interests of its members/certificate holders;
• promoting certain material interests of its growers;
• promoting certain material interests of its breeders.

The financial year of the Association HZPC runs from 1 July up to and including 30 June.

The financial statements have been prepared in accordance with Title 9, Book 2 of the Dutch Civil Code.

The applied accounting policies to the valuation of assets and liabilities and result determination are based on the historical cost convention unless stated otherwise.

The continuity of the Association HZPC is minimally affected by economic conditions. The costs of the Association HZPC are mainly caused by facilitating the trade in depositary receipts of shares of HZPC Holding B.V. The costs are fully reimbursed by HZPC Holding B.V. In addition, the Association HZPC has almost no costs. 

The dividends received from HZPC Holding B.V. are passed on to the depositary receipt holders, less dividend tax.

Unless stated otherwise, assets and liabilities are shown at nominal value. 

An asset is recognised in the balance sheet when it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the cost of the asset can be measured reliably. A liability is recognised in the balance sheet when it is expected to result in an outflow from the entity of resources embodying economic benefits and the amount of the obligation can be determined with sufficient reliability.

Income is recognised in the profit and loss account when an increase in future economic potential related to an increase in an asset or a decrease of a liability has arisen, the size of which can be reliably determined. Expenses are recognised when a decrease in the economic potential related to a decrease in an asset or an increase of a liability has arisen, the size of which can be measured with sufficient reliability. If a transaction results in a transfer of future economic benefits and or when all risks relating to assets or liabilities transfer to a third party, the asset or liability is no longer included in the balance sheet. In addition, assets and liabilities are not included in the balance sheet from the date upon which economic benefits are not probable and/or cannot be determined with sufficient reliability.

The financial statements are presented in euros, the functional currency of the Association HZPC. All financial information in euros has been rounded to the nearest thousand unless otherwise indicated. 

The figures for 2020/2021 have been adjusted to allow comparability with 2021/2022. It concerns the adjustment of the item Shares HZPC Holding B.V. for the benefit of certificate holders under financial fixed assets and the item issued certificates of shares under long-term liabilities. Both items have been adjusted from EUR 15,675,000 to P.M. as certificates of shares of HZPC Holding B.V. are held by the certificate holders and not by the Association HZPC.

Revenues and expenses are allocated to the period to which they relate. Revenues are accounted for if all important risks with regard to the commodities are transferred to the purchaser. The operational expenses are borne by HZPC Holding B.V.

The preparation of the financial statements requires the Board to form opinions and to make estimates and assumptions that influence the application of principles and the reported values of assets and liabilities and of income and expenditures. Actual results may differ from these estimates.

The estimates and the underlying assumptions are constantly assessed. Revisions of estimates are included in the period in which the estimate is revised and in future periods for which the revision has consequences. The financial statements don't contain significant estimates. 

Financial instruments include primary financial instruments such as receivables and payables, as well as derivative financial instruments. Reference for the guiding principles of primary financial instruments is made to the individual treatment per line item on the financial statements.

Equity interests and certificates where no significant influence is exercised are stated at the lower of cost or net realisable value.

The loans are initially recorded at fair value, including discount or premium and directly attributable transaction costs. After initial inclusion, loans are shown at amortised cost using the effective interest method, less impairment losses.

The other financial fixed assets are valued at fair value on initial processing, plus transaction costs (if material). After initial processing, the assets are measured at amortised cost using the effective interest method, less any impairment losses. Income from receivables and other securities allocated to financial fixed assets are accounted for in the year to which they relate.

Dividends are accounted for in the period to which they relate. Interest income is accounted for in the profit and loss account on an accrual basis, using the effective interest method. Any profit or loss is accounted for under financial income or expenses.

Receivables are measured at fair value on initial processing, plus transaction costs (if material). After initial processing, the assets are measured at amortised cost using the effective interest method, less a provision for non-collectable debts. These provisions are determined by individual assessment of the receivables.

Cash and cash equivalents are valued on the basis of nominal value. If cash and cash equivalents are not freely available, this is taken into account during the valuation.

Financial instruments that are designated as equity instruments by virtue of the economic reality are presented under shareholders’ equity.

Distributions to holders of these instruments are deducted from equity after deducting of any related income tax benefit.

Financial instruments that are designated as a financial liability by virtue of the economic reality are presented under liabilities. Interest, dividends, income and expenditure with respect to these financial instruments are recorded in the profit and loss as financial income or expense.

Long and short-term debts and other financial obligations are initially recorded at fair value, including discount or premium and directly attributable transaction costs.

After initial inclusion, the long and short-term debts and other financial obligations are valued at an amortised cost on the basis of the effective interest method.

The Association HZPC includes the revenues under net sales when all significant rights to economic benefits as well as all significant risks with regard to the transactions are transferred to the purchaser, when delivery has taken place, the price has been or can be determined and there is reasonable certainty that the sales price can be collected. Generally these criteria are satisfied at the moment the product or service is delivered and acceptance, if required, is obtained.

Expenses are allocated to the period to which they relate. The operational expenses are borne by HZPC Holding B.V.

The Association HZPC is not independently liable to taxation.

Transactions with related parties will be explained if they are not entered into under normal market conditions. The nature and scope of the transaction and other information will be provided for these transactions in order to provide further insights.

Events that provide further information on the actual situation at the balance sheet date and that appear before the financial statements are being prepared, are recognised in the financial statements. Events that provide no information on the actual situation at the balance sheet date are not recognised in the financial statements. When those events are relevant for the economic decisions of users of the financial statements, the nature and the estimated financial effects of the events are disclosed in the financial statements.

Association HZPC receives dividend from HZPC Holding B.V. and, after deduction of dividend tax, pays these dividend to the certificate holders in full.

The current account HZPC Holding B.V. has a maturity of less than 1 year and is not interest-bearing.

Cash is at the free disposal of the Association HZPC.

No significant financial events have occurred following the balance sheet date.

Joure, 12 October 2022  

The Board of Association HZPC

E.P. de Vries, Chair
M. Verhage, vice-Chair
S.G Andringa, secretary
R.P Smith
M. Wijtten