Miko N : Yearly financial report 2023

MIKO ANNUAL REPORT

REPORT

TABLE OF CONTENTS

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MESSAGE FROM THE

CEO

On Feb. 20, 2022, Russian tanks drove toward Kiev, intent on a Blitz Krieg to colonize Ukraine into a Russian province. More than 2 years later, the brutal battle continues unabated.

Global uncertainty

All this also brought global polarization. And meanwhile, a destructive struggle rages in Palestine.

Political turbulence in surplus. This is immediately also a worrying cocktail for economic insecurity.

Miko makes progress

Within this turbulent context, the group experienced sales growth of 8.4% to 289.8 million euros. Volumes showed double-digit growth. EBITDA rose 15% and exceeded the 30 million euro mark for the first time. We are indeed continuing to invest. EBIT was 6.6 million euros and advanced 107%. After a loss-making 2022, we r e b o u n d e d in 2023 with a net profit of 2.2 million euros. The dividend we propose is 1.87 euros gross, which is the same level as in 2019.

Since 2021, a strategic transformation

In the past, the Miko group focused its sights on 2 core activities: coffee service and plastic processing for the packaging industry. Because there was a huge consolidation trend in the plastics processing sector, it was decided to sell this division to the 6 times larger German company Paccor. Meanwhile, as part of the same consolidation and the n e e d for critical mass, the latter was absorbed by the Danish billion-dollar company Faerch.

The Miko group is now focusing entirely on coffee. Our strategic arrows are moving

towards: Benelux:

In 2021, Dutch mastodon MAAS, which specializes in vending, was added to the group. In 2022, Miko bought the Belgian out-of-home business of Beyers coffee.

And in November 2023, Miko w e l c o m e d Capriole Coffee Service to the group. This is a coffee service operator based in The Hague, Netherlands, with also a subsidiary in Kampenhout, Belgium. With some 60 employees, the company achieves a turnover of over 12 million euros. The focus is on the office market. Under the motto "Care for People, Care for Planet and Care f o r Product," Capriole carries everything to do with sustainability very h i g h l y . This picture fits perfectly with Miko's strategy.

Takeovers in home countries:

At the same time, we continue to look at acquisitions in our 12 home countries. This led early this year to the acquisition of the German company PROCON, which with 10 employees achieves sales of 1.5 million euros.

In addition to out-of-home, now retail:

In 2021, SAS coffee was incorporated into the group. Historically, Miko was only active in the out-of-home market, in offices, companies, restaurants and institutions. Due t o increased home business, we decided to b e c o m e active in the home market, supermarkets and retail, the segment on which SAS focuses, in addition to the out-of-home market. Also, Miko intends to build a new building with state-of-the- art technology, ideal for merging the aging factories of Miko and SAS. The acquisition of SAS coffee, which is a 15-minute drive from Miko, was therefore a very logical next step at that time.

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Retail sector "under attack"

This logic was greatly overshadowed by the fact that less than 4 months later Putin invaded Ukraine. This also put the entire retail sector under barrage. The inflationary explosion of costs was very difficult to pass on within the difficult private label segment in which SAS specializes. This led to wafer-thin margins. The wage index that was 10% in Belgium was also painful. Try explaining that to a foreign buyer of a supermarket. Abroad, average wage inflation was only 4%.

"Sharp shooting" in the out-of-home segment

Excellent results were posted across almost all lines of this division. In Scandinavia, results were slightly below expectations due to the significant fall in the Norwegian and Swedish krona. But operationally there was a good performance. In the United K i n g d o m , the Brexit remained a disruptive factor in growth.

About CSRD

"Corporate Social Responsibility Directive" ... within the broader framework of the "Green Deal," in which Europe aims to be climate neutral by 2050, these regulations require listed companies to report on their sustainability according to strict rules. It is a long and arduous process to achieve this reporting. In any case, we are fully e n g a g e d in it.

More importantly, we have wanted to be at the forefront of sustainability for many years. Meanwhile, 40% of our coffee sales in the out-of-home segment consist of Puro coffee. This coffee carries the fair trade certificate, proof that small coffee farmers receive a price higher than the market price so that they can survive financially.

And a part of the sales of Puro is used for the purchase of rainforest, a l r e a d y m o r e t h a n 600 million m2. We are very proud that 4 new species have already been discovered in our rain forests, 3 flowers and 1 frog. All are registered with a reference to Puro. The Teaguia Puroana is an orchid, the Pristimantis Puruscafeum is a frog.

We are also particularly proud to be stepping into a flagship research project with Germany-based PROBAT, the world market leader in coffee roasting development. The goal is to roast coffee electrically with our new wind turbine. It will be the first o f i t s kind worldwide. In the long term, the roaster will be compatible with hydrogen technology.

Stock price in free fall?

From an average high of 120 euros following the sale of the plastics processing division, our share price recently dropped to a bottom of 47 euros. Meanwhile, the price is hovering around 60 euros.

This is disappointing for our shareholders.

In his recent article "Office coffee at the reunion of the class of 1998" in De Tijd of April 6, Kurt Van Steeland calculated that as of 1998, BEL20 shares deposited an annual return of 4%, and Miko's was 3.8%. So things could be better. Does the current share price reflect the value of our company? In our opinion, of course not.

Our employees, the beating heart

Dear employees, thanks to you we have held up quite well in today's turbulent times. Your enthusiasm, energy, dedication and resilience are crucial pillars of our success. For this we are sincerely grateful.

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ANNUAL REPORT

Miko NV

Steenweg op Mol

177

2300 Turnhout

CBE no. 0404.175.739 RPR Turnhout

(the "Company")

Dear shareholders

The Board of Directors of Miko NV is pleased to report to you on the activities and results of the Company for the fiscal year 2023. The consolidated financial statements, statutory financial statements and this annual report were approved at the meeting of the Board o f D i r e c t o r s held on April 15, 2024 and will be presented to the General Meeting of the Company held on May 28, 2024.

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HERITAGE

More than 200 years of tradition summed up in a number of milestones.

This is our heritage ... our heritage.

MIKO's rich history demonstrates

How innovation can underpin long-term growth.

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