ANNUAL REPORT Next Generation 2019-2020 Best Employer Chosen by employees

Hans Wijman’s daughter-in-law, Lichelle, with his granddaughter, Jolé.

Contents 04 Foreword Sustainable growth of our relationships 30 58 Sustainable growth of our operations Our highlights 10 38 Sustainable growth of the world we operate in 70 Plantify Partners Europe 78 Our next generation people #NEXTGENERATION Sustainable growth of our people 20 52 Sustainable growth of our business 76 Green Sparkle 80 Mission & Vision

Foreword 2020 #NEXTGENERATION Renske, the daughter of Rob van der Meer. 4

ANNUAL REVIEW Foreword 2020 Dear Partner, We look back on an unusually turbulent year. It was a year dominated by the coronavirus pandemic which had an enormous impact on our joint business as well as our personal lives. A year that brought lots of challenges and provided many valuable insights. In this annual report, we reflect on our flourishing collaboration with partners and colleagues and look to the future with growing confidence.. We did not manage to achieve our revenue targets in 2020, but we recall with gratitude a memorable year. Strong sales following the initial lockdown, robust cost management and the addition of new customers all ensured that we still achieved the same revenue levels as in 2019. However, the most important benchmark by which to evaluate 2020 is our mission: the sustainable growth of our people, our relationships, our business and the world we operate in. During the last 12 months, we managed to strengthen our organisation across all these vital areas. The crisis period only confirmed what wonderful colleagues we have and our relationships with both our retail customers and our suppliers have continued to grow. We are very proud to have also welcomed two new customers in 2020: PraxisTuin and Jumbo Supermarkets. Due to further progress in digitalisation and robotisation, great strides have been made with Reguardz, our e-fulfilment business, and we now successfully deliver plants to consumers in multiple countries. And as part of our internationalisation strategy, we opened our own logistics hub in the United Kingdom. The establishment of Plantify Partners Europe and the associated strategic partnership forged with the Belgian family business Floréac was a great way to end the year. The coronavirus will continue to have a major impact in 2021. Nevertheless, we face the coming year and the years ahead with confidence because, here at Royal Lemkes, our focus is long term. That is why the theme of this annual report is 'Next Generation'. It is also why our own (grand)children have been placed in the spotlight. After all, they are our greatest source of love 6

The executive management team. and inspiration and it is for them that we are trying to make our company and the supply chain, from grower to consumer, ever more sustainable. We will continue to do business honestly and transparently to ensure that we fit into a new economy as a Next Generation organisation. As we greatly value our internal and external collaborations and constantly raise the bar through long-term partnerships, our motto for 2021 is ‘Working together for future generations’. Thank you for your continued support and trust in Royal Lemkes. On behalf of the executive management team, we wish you much reading pleasure! Michiel de Haan Managing Director

MANAGEMENT TEAM Meet the team Cees van der Meij (1962) Owner of Royal Lemkes For Cees, being human means taking responsibility for everything that you have been entrusted with: colleagues, customers and the world around us. Fortunately, as we get older, our experience grows and our circle of influence expands. Cees’ views about the future, new technologies and alternative earning models are highly appreciated both within and beyond the sector. While his much-valued perspectives certainly help achieve better returns, Cees passionately believes that a better world starts with yourself. Michiel de Haan (1966) Managing Director Before entering our beautiful sector some five years ago, Michiel spent 12 years in the FMCG industry and another 12 years managing large retailers, including supermarket chain Dirk van den Broek and DIY store Praxis. Michiel is a self-proclaimed sustainability freak and is energised by authentic people who are always striving to grow and develop. His top priority is to become a wise and happy grandfather: “I look forward to the conversations with my grandchildren when they ask what we did to combat the challenges that we face today: climate change, loss of biodiversity and the plastic soup.” Michiel van Veen (1982) Director of Supply Chain & Business Innovation Some seven years ago, Michiel started as Director of Logistics & IT at Royal Lemkes and has since progressed to become Director of Supply Chain & Business Innovation. With a background in logistics, he is always on the lookout for solutions to improve the service offered to customers and make a difference by working with others. Michiel is responsible for transport, logistics resources and the supply chain as well as innovative initiatives such as our e-commerce sister company, Reguardz. Jeannette Jongeleen (1972) HR & Facilities Manager Jeannette started as HR Manager with Royal Lemkes seven years ago and is responsible for all aspects of staff policy and facilities management. Jeannette has previously held several HR positions with pension administrator MN and the Rotterdam Philharmonic Orchestra. Last year, Jeanette completed her MBA. Her motto is: “Be honest and clear and never shy away from the difficult conversations because those are often the best.” 8

Leon Verschoor (1971) Director of Operations & Digital Leon has been helping organisations go digital for more than 20 years. With his extensive knowledge and continuous quest for improvement, Leon inspires Royal Lemkes to become better every day. “Working in a beautiful sector with such lovely products is a pleasure. But the greatest pride and joy for everyone is all the fantastic colleagues we get to work with to meet and exceed our customers’ expectations on a daily basis.” Jan Slingerland (1971) Finance Manager Jan has been with Royal Lemkes for more than 25 years. He started at our subsidiary company Edelman Green and is now responsible for our finance department. With the help of a strong team, Jan handles accounting, quality and financial control as well as internal auditing at Royal Lemkes. His motto is: “To know your future, you must know your past.” Huib Kranendonk (1982) Sales Director Since 2015, Huib has held various commercial positions at Royal Lemkes. Prior to this, he was (among other things) a consultant for several reputable retailers. Why did he make the move to Royal Lemkes? “First and foremost, because of the company’s mission and values. And as the grandson and son-in-law of growers, I had always been attracted to horticulture.” Huib feels a deep sense of responsibility when it comes to customers and his work is always guided by the principles of transparency and reciprocity. Alice van Veen (1971) Commercial Manager Alice started 22 years ago as a day trader at Koninklijk Tuinbouwbedrijf Lemkes and has since held various commercial positions at Royal Lemkes. She is currently responsible for sourcing, ASH (IKEA) and marketing and communications. Alice is studying for an MBA and is a board member at Bloemenbureau Holland. Her motto is: “Never a dull moment. The best is yet to come.”

Our highlights #NEXTGENERATION Bram and Teun, the sons of Monica Huldy. 10

MAJOR MOMENTS Our highlights January New customer: PraxisTuin We delivered the first plants to Praxis garden centres. Electric-only fleet From now on, our employees can only choose fully electric vehicles as a lease car option. February UK hub As part of our internationalisation strategy, we opened a logistics hub in the United Kingdom to better serve our British customers. March Family Day A fantastic day when we gave our family and friends a peek into our beautiful company. Best Employer*** Once again, we were voted the best employer in the Netherlands in the trade and retail category. 12

April Shouldering the load together in the hall Our (office) staff supported their logistics colleagues in the hall due to coronavirus restrictions during peak season. May Record number of online deliveries Due to the coronavirus crisis, we home-delivered a record number of plants to consumers via our online service. Introduction meeting In 2020, we organised three online introductory meetings for our new employees. Welcome to Royal Lemkes! June New customer: Jumbo Supermarkets Hello Jumbo! From now on, we are the plant category partner of this successful supermarket chain.

July E-CMR We launched E-CMR with our carriers, thereby contributing to less paper usage, improved real-time insight into loading and unloading times and better safeguarding of packaging transactions. August Argos launch Argos is the system that fully scans incoming trolleys, reads optical codes and measures plant heights. September Transport Day A successful event for our carriers aimed at building sustainable relationships and a greener future. Sustainable Thursday With this annual event, we inspire our colleagues and partners regarding sustainability issues. 14

October OutSystems In collaboration with the IT specialists from Motion10, we developed OutSystems, our own software platform. November Talent Development Programme Start of the development programme for our young, talented employees. Traineeship Three young professionals started a two-year traineeship. December Plantify Partners Europe Launch of Plantify Partners Europe (PPE), a European network of family firms in the horticultural sector. Royal Lemkes and Floréac became the first Plantify Partners. Ready for Brexit All preparations were completed to enable us to keep transporting our plants to the United Kingdom from 2021.

ANNUAL REVIEW REVENUE IN 2020 2020 35 Export countries • • • • • + 50 million + 40 million + 25 million + 10 million 0 + Top 5 countries Germany France Great Britain The Netherlands Austria 1 2 3 16 4 5

ANNUAL REVIEW 2020 €288 Million in revenue 125,000,000 Plants delivered 23,227 Different products 600 Suppliers 4,000 Stores 739,282 Kilometres of loaded trucks Top 5 outdoor plants Lavandula Hydrangea Citrus Blooming perennials Buxus 1 Top 5 indoor plants Phalaenopsis Areca Ficus Cactus/Succulent Dracaena 2 3 4 5 1 2 3 4 5

QUOTE Bram (7) & Teun (5) “ Plants give us oxygen so that we can breathe.” “Mum does something with plants where Sinterklaas always comes to visit. She does her best and is very handy. Flowers smell really nice and plants also give us oxygen so that we can breathe. When will Sinterklaas come again?” Monica Huldy Process Manager Garden Centres 18

QUOTE Evy (7) & Elif (4) “ Dad is very good at sending trucks away with plants.” “Our dad is really nice and good at his job! Even when we make a lot of noise at home. He works with plants and sends trucks all over the place. We also like pretty plants: pink plants, olive trees and butterfly plants.” Randy van Zelst Transport Team Leader

Sustainable growth of our people #NEXTGENERATION Yolanda Moor with her daughters, Merel and Britt. 20

SUSTAINABLE GROWTH Best Employer 2020*** It is important to us that our employees feel at home at Royal Lemkes and have the opportunity to develop their skills and qualities. Our effort was rewarded in 2020 with the accolade Best Employer*** in the Netherlands in the Retail and Trade category. 2019-2020 Best Employer Chosen by employees Winner in the Retail and Trade category. 22

HR STRATEGY Our people make the difference SUSTAINABLE GROWTH We believe that a company’s corporate culture contributes significantly to its success. Our HR strategy is an essential aspect of this. We strive to have employees who are both engaged and inspired and who develop sustainably. We therefore focus heavily on personal growth, vitality and diversity. PERSONAL GROWTH We stimulate, support and help our employees so that they can grow professionally and personally. That is why, in 2020, many colleagues again attended a workshop or training course through our Plantify Academy. Programme Leadership programmes Personal Leadership Programme (PPL7) Talent Development Programme (TDP 3) Pizza with Covey Personal Growth Programme Mid-Management Training Total Professional programmes Plant courses Language courses Green Sales training courses (IT system) Various Microsoft courses Stress management workshop Total Number of participants 13 10 15 8 19 65 37 25 146 14 5 227 In addition, several colleagues have followed tailored training courses, including MBAs, higher professional education and NEVI programmes.

SUSTAINABLE GROWTH Our people make the difference Talent Development Programme. In 2020, many colleagues were promoted or advanced to another department. Thanks to our annual staff review and a consistent HR cycle, we are able to successfully stimulate staff development. This is part of our sustainable growth objective. 24

Personal Leadership Programme 6. INFLOW/OUTFLOW/ADVANCEMENT 2019 2020 31 55 22 33 Outflow 87 90 41 49 Inflow 24 49 22 27 Advancement

DIVERSITY Whether it concerns gender, age, experience, nationality or character, diversity makes our organisation more colourful, more beautiful and more successful. We have 10+ different nationalities and a dynamic blend of young talent and colleagues with many years’ experience. TOTAL NUMBER OF EMPLOYEES In 2020, we had an average of 296 employees. In 2019, that number was 261, an increase of 13.4 per cent. The increase was primarily due to the hiring of a large group of operational employees who had been working with us on a temporary basis for quite some time. AGE DISTRIBUTION < 20 years 21 31 41 51 61 14 to 30 years to 40 years to 50 years to 60 years to 67 years 68 years Total YEARS OF SERVICE < 1 year 1 6 11 68 71 64 63 15 1 296 56 to 5 years to 10 years to 15 years 16 to 20 years 21 to 25 years 26 to 30 years 31 to 35 years 36 to 40 years 41 to 45 years 46 to 50 years 51 to 53 years 137 35 25 15 11 4 5 2 4 1 1 26

MALE/FEMALE DISTRIBUTION AVERAGE AGE 296 employees 131 44.26% 165 55.74% 47 43.8 41.3 SICKNESS ABSENTEEISM Long 2020 2019 2018 3.66% 3.02% 2.61% 2.28% 1.66% 0.82% Moderate 0.76% 0.00% 0.01% Short 0.62% 0.91% 0.96% VITALITY Fit and healthy employees are crucial to success. Vitality not only results in lower absenteeism but also enhances creativity, loyalty and teamwork. Since the health of a person dictates their vitality and sustained employability, we help our employees stay healthy in a number of ways. In 2020, we had a slightly different approach to this than in previous years. In addition to the existing support for physical and mental health, we focused on safe working from home by facilitating workstation equipment to work remotely in a responsible way. Free online fitness was made available and we also helped prevent stress caused by working from home while looking after children who were unable to attend school.

QUOTE Sustainable growth “ The sustainable growth of our people is key to the success of Royal Lemkes. Connecting with each other promotes trust." Jeannette Jongeleen HR & Facilities Manager - Royal Lemkes 28

“With trust, you create engagement, the foundation for building personal and professional development.” Jeannette with her daughter, Laura.

Sustainable growth of our relationships #NEXTGENERATION Shay and Lynn, the daughters of Kimberley Houwaart. 30

EUROPEAN RETAILERS Our customers Our customers are renowned European retailers from various segments with whom we maintain an exclusive or preferred partnership. New partnerships In addition to B&Q, since 2019 we have been supplying our plants to two more retailers under the Kingfisher banner: Castorama and Brico Depot. We entered into a partnership with PraxisTuin (Netherlands) in 2020, providing the total product range, and in June we also became the plant category partner of the Dutch supermarket chain Jumbo. In 2020, we delivered to approximately 4,000 stores: 1,000 Garden centres (Jardiland, OBI, PraxisTuin, Truffaut) 1,200 DIY stores (B&Q, Brico Depot, Castorama, Praxis, Brico) 1,500 Supermarkets (ALDI, Système U, Jumbo) 300 Home furnishing stores (IKEA) 32

Maxeda: Kingfisher: Partner for 29 years Partner for 2 years Partner for 2 years Partner for 19 years Partner for 1 year Partner for 10 years Partner for 13 years Partner for 32 years Partner for 8 years Partner for 1 year Partner for 27 years Partner for 8 years Partner for 13 years

OUR GROWERS Strategic sourcing Together, we create a distinctive product range at the lowest possible supply chain costs. Five years ago, the sourcing strategy for Royal Lemkes was decided. Every year, we work on its implementation and further development with a strict policy and adjust the strategy to the fastchanging retail and grower landscape when necessary. Progress • In 2020, we collaborated with 600 suppliers (900 in 2017) and the best breeders worldwide. • Our strategic objective is to have 80 per cent of our purchasing value with the top 100 growers to meet large-scale retail conditions. In 2020, that figure was 71 per cent. We are well on the way to achieving our goal but the greatest potential still lies ahead. • We work with key growers using a supplier management model, thereby investing in long-term relationships. Our data-driven approach enables us to create a sustainable supply chain and a distinctive range at the lowest possible costs for optimal shelf profitability. • We also strive to build close relationships with growers outside of the top 100. As garden centres are interested in a range that is both deep and broad, we provide a large variety of options for this comprehensive and important target group. At the end of 2018, we shaped our sustainable sourcing policy. In 2020, we established its four main themes: 1. Insight into and reduction of the footprints of 50 key growers 2. Reduction of the use of plastic in the supply chain 3. Reduction in CO₂ emissions 4. Working conditions in the supply chain The chapter ‘Our sustainable dream’ (page 40), outlines the steps we took this year. 34

QUOTE Our sourcing ambitions? “ Maximising the impact on shelf profitability — we achieve this by re-evaluating our suppliers and our scale and by intensifying cooperation.” Alice van Veen Commercial Manager - Royal Lemkes Alice with her son, Gijs.

Finance Automation of purchasing agreements We started using Lucom in 2019. This software tool enables us to digitally handle purchasing agreements with growers. It increases insight, efficiency and cost savings for growers as well as for Royal Lemkes. In 2020, Lucom was fully implemented and we logged all agreements digitally. The software was also expanded with a feature to digitally record quality audits at the grower's premises. Photo: At our annual Suppliers’ Day, we invited our top 100 suppliers and discussed the latest opportunities and developments in the retail sector. Kingfisher - Tim Clapp. 36

Sustainable growth of the world we operate in #NEXTGENERATION Liz, Dave and Luuk, the grandchildren of Cees van der Meij. 38

THE DREAM FOR 2030 Our sustainable dream It has been an exceptional year and our mission of sustainable growth now seems more urgent than ever. After all, sustainable operations make for a resilient business, which is essential for a future-proof economy. We have therefore further strengthened our sustainability ambitions for the next 10 years. Our dream for 2030 • To sell twice as many plants as in 2020: from 125 million to 250 million. • ‘Positive plants’: the plants we supply make a positive contribution to the environment. • All employees throughout the entire supply chain are proud to be part of this. In the past year, along with our colleagues, suppliers, customers, NGOs, the government, competitors and other sector partners, we have taken steps towards achieving this dream. Unfortunately, the pandemic slightly delayed the implementation of sustainability in the supply chain. The highlights of 2020 • Royal Lemkes was once again energy neutral. • The Royal Lemkes fleet became 35 per cent electric and has an electriconly policy. • 91 per cent of our products were certified according to the FSI Basket of Standards. • 50 growers calculated their individual footprints. • A baseline measurement was performed on plastic trays and three pilots will start soon to drastically reduce the use of plastic. • A hybrid edition of Sustainable Thursday took place. 40

Christian Lepelaar with his son, Miles.

Sustainable Thursday This year, we organised a special edition of Sustainable Thursday with 25 executives from our sector and a livestream online audience. Politician and writer Jan Terlouw provided a bird's eye view of the history of humankind and showed us how we can create a more sustainable and fairer future. Director of MVO Nederland Maria van der Heijden and Wiebe Draijer, chairman of the board at Rabobank, also provided insight and inspiration. The speakers encouraged everyone to think about how a future-proof sector can be achieved by working together. And not forgetting the younger generation, a special chair was set up where we could imagine our (future) grandchildren sitting. Inspired by Nelson Mandela and John Lennon, our CEO, Michiel de Haan, concluded with a vision for the sector in 2030: Imagine. Together we can. Ex-politician and writer Jan Terlouw. Maria van der Heijden, director of MVO Nederland. 42

BECAUSE JUST IMAGINE, IMAGINE THIS That by 2030 we emit almost no CO2 at all from greenhouse production. We know it can be done because it is already happening Imagine that chemicals are rarely required anymore. We know it can be done because it is already happening. Imagine that transport largely runs on electricity and hydrogen. We know it can be done because it is already happening. Imagine that we use almost no plastic and that the plastic still in use is circular. Imagine that every employee in our global sector is even prouder than they are today. IMAGINE. JUST IMAGINE. As John Lennon wrote in his beautiful song, Imagine. You may say I am a dreamer, but I am not the only one. I hope you will join me. Wiebe Draijer, chairman of the board at Rabobank.

Sustainable Development Goals The United Nations Sustainable Development Goals (SDGs) help us give substance to our mission of sustainable growth. The UN has drawn up 17 SDGs to tackle the world's most pressing problems, such as hunger, inequality, biodiversity loss and climate change. At Royal Lemkes, we focus on the SDGs that will allow us to make the biggest impact. SUSTAINABILITY THEME 1 Climate Our contribution to SDG 13 In 2020, our own operations were once again energy neutral. The CO₂ emissions from gas and electricity, the fleet, business travel and (from 2021 onwards) our packaging materials, which we have not yet been able to reduce, are compensated through the FairClimateFund. This fund finances and implements climate projects. Making the supply chain sustainable is only possible if parties in the chain cooperate and take responsibility together. Mapping out the climate impact of our products provides insight into reduction opportunities. Along with IKEA, we therefore encouraged 50 growers to have their individual production footprints calculated as part of the ‘Greener Plants’ project. In 2021, we will expand our collaboration and work with these 50 growers to further reduce our impact to help us achieve our goal of ‘positive plants’ by 2030. We will also encourage a new group of growers to calculate their footprint. • Since 1 January 2020, new lease vehicles are electric-only and the fleet is now 35 per cent electric: 24 electric cars and 64 conventional cars. • 10 employees have a lease bike. 44

CO₂ EMISSIONS DEVELOPMENT 1400000 1200000 1000000 800000 600000 400000 200000 0 2012 2013 2014 2015 2016 2017 2018 2019 gas and electricity business fleet business travel 2020 350000 300000 250000 200000 150000 100000 50000 0 CO₂ emissions Revenue in € million


SUSTAINABILITY THEME 2 Natural resources Our contribution to SDGs 12 and 14 A circular economy is a closed cycle in which natural resources, components and products lose as little value as possible and their reuse is optimised. The Dutch government is striving for a circular economy by 2050 and the use of primary raw materials must be halved by 2030. In line with our dream of ‘positive plants’, Royal Lemkes strives to be circular by 2030. To achieve this, we use the 3R approach: Reuse, Reduce, Recycle. In the past year, this approach has involved the following activities. • Reduce: reducing plastic consumption (thanks to a reduction in film), reusing attachments and more conscious use of top sleeves. • Reduce: saving three pallets of paper by switching to E-CMR (digital consignment note). In total, the use of 309,000 sheets of paper was avoided. • Recycle: donating used IT equipment to Stichting Leergeld, giving it a second life. • Reuse: rolling out the ambition of a circular cultivation pot by 2030 along with competitor Van Dijk Flora. • Reduce: implementing baseline measurement on plastic trays. From 2021 to 2030, we will focus on reducing plastic by at least 10 per cent per year, based on the baseline measurement. Three pilots will start at the beginning of 2021 to achieve these reductions.

SUSTAINABILITY THEME 3 Biodiversity Our contribution to SDGs 12, 13 and 15 The percentage of sustainably traded product* rose from 87 to 91 per cent. As a result, the FSI (Floriculture Sustainability Initiative) target of 90 per cent sustainably traded product by the end of 2020 has been achieved thanks to our growers. FSI has expressed a new ambition for 2025: in addition to responsible production and trade, the initiative also aims to promote transparency and a responsible horticulture supply chain. Through a data-driven approach, this will be our focus in the coming years. * Sustainably traded product: GAP certified (Good Agricultural Practice) and also GSCP certified (Global Social Compliance Programme) in high-risk countries. 48

SUSTAINABILITY THEME 4 Working conditions in the supply chain Our contribution to SDGs 1 and 8 Within the framework of the International Responsible Business Conduct (IRBC) Agreement that we signed in July 2019, Royal Lemkes actively participated in several working groups. The groups are developing plans of action for the following themes: the living wage, impact of crop protection agents, climate change and due diligence (throughout the entire operation). The IRBC Agreement will run for three years in close cooperation with FSI to ensure continuity and assurance in structuring the actions. SUSTAINABILITY THEME 5 Society Our contribution to SDGs 3, 6 and 9 We donate our used IT equipment to Stichting Leergeld. This foundation helps prevent the social isolation of children living in poverty. In 2020, we provided two pallet boxes of useful equipment. We also donate plants to care homes and collaborate with DSW, a social enterprise. Through the Royal Lemkes Foundation, we financially supported various projects, such as the Plastic Soup Foundation, Stichting Waterpas and Stichting Daad en Woord.

QUOTE Renske (12) “ My dad knows all the Latin names of plants by heart!” “My father is always there for everyone. I am proud of him for getting up so early every day and for always being sociable, even when he comes home late. He knows all the Latin names of plants by heart.” Rob van der Meer Product Management Team Leader 50

QUOTE Ailana (3) “I love hugs and sunflowers!” Daniëlla van der Eijk Sr. Process Manager ASH/IKEA “Mum does something at work and lots of other things too. I don't think she is very good at it. I want to become a policeman. I love Mummy and hugs and sunflowers.”

Sustainable growth of our business #NEXTGENERATION Thiamo, the son of Jurgen Isri. 52

GROWING SUSTAINABLY TOGETHER Financial results Although revenue and profit are not our main motives, we do believe in the importance of economies of scale. Growth helps us to professionalise our business and expand our impact. We believe in a ‘minimal viable profit’ and for our company that means 1.5 to 2 per cent. This is important for continued investment in areas like internalisation, IT and robotics. In 2020, our revenue remained stable at €288 million. Based on positive developments with almost all our customers and the expansion of our customer base with Jumbo Supermarkets and PraxisTuin, we expected revenue to grow to €315 million. Unfortunately, the coronavirus pandemic threw a spanner in the works. Despite the setback, we managed our costs well and the result is still in line with expectations. Our forecast for 2021 was again very positive with an ambitious turnover of more than €335 million. Due to the coronavirus lockdown in the first quarter of 2021, this now seems unlikely. As we will continue to fully invest to serve our customers in the best possible way, both now and in the future, the pandemic will have a negative effect on our result. Solvency has fallen slightly to the level of our own internal standard of 25%. Equity has remained the same with a growing balance sheet total. 54

REVENUE DEVELOPMENT 320 310 300 290 280 270 260 250 240 230 220 210 200 288 288 265 249 249 222 2015 2016 Net-revenue in € million 2017 2018 2019 2020 RESULT DEVELOPMENT 1.50% 1.40% 1.30% 1.20% 1.10% 1.00% 0.90% 0.80% 0.70% 2015 Pre-tax profit (%) 2016 2017 2018 2019 2020 *Result includes Reguardz results 1.34 1.28 1.18 1.15 1.09 1.28*

QUOTE Luuk (8) “ I really like the glass terrarium at my grandmother’s house.” QUOTE Sem (10) “ The Medinilla magnifica is the prettiest plant I have found on the internet.” Jacqueline van Idsinga Management Assistant 56

“Soooo, I really don't know what my granny does at work. But I do know that she is very good at mountain climbing and kissing granddad. I like the glass terrarium at her house. I love my granny very much.” "Grandma is very good at making things. And she loves roller coasters and reading stories. I have no idea what she does at work. I found the Medinilla magnifica to be the most beautiful plant on the internet."

Sustainable growth of our operations #NEXTGENERATION David Verweij with his son, Roy. 58

OPERATIONS & SUPPLY CHAIN A future-proof supply chain It was an eventful year. A year of starting and stopping. The teams showed enormous flexibility and demonstrated that they are future-ready. This is also evident from the 'on time, in full, no error' performance that we measure daily in our dashboards and discuss during Lean meetings. The operations, transport and customer service departments performed above standard. In addition, we reinvested in better teams, processes and innovations. These innovations should lead to further growth in our services during the coming years, thereby contributing to our strategy for customer intimacy and operational excellence. Examples of innovations in our operational processes include pilots with robots and vision technology (Argos). 60

Last year, we opened a branch in the United Kingdom, especially for our valued retail partner B&Q. This is where southern European plants in particular are prepared for shipment. The preparation for Brexit was time consuming but resulted in a flawless introduction at the beginning of 2021. Our project team set an example for other organisations and received a lot of appreciation from the government and in the media. To achieve operational excellence, it is always important to plan and look ahead. Thanks to the supply chain team, multiple departments work together on clear forecasts and feasible schedules for operations and transport. With the new Danish CC TAG5 container label, the logistics resources department is making the transition from administration to control. This enables us to deploy our cargo carriers proactively, transparently and as effectively as possible for our supply chain partners.

ADDITIONAL SERVICES Trade marketing More than ever, our retail partners are open to connecting with us in the area of trade marketing. This requires new (digital) competences and skills from us as well and in Samenvatting 2018 2020, we took the first step in this direction by reorganising the marketing and communications team. We also invested in extra capacity to optimally support our customers and thus increase shelf profitability. Our experts translated trends and consumer wishes into beautiful shelf presentations, concepts and brands. Examples include the development of the ‘Home Office Heroes’ and ‘Climate Change’ concepts and the shopper campaign ‘Urban Jungle’ for Jumbo Supermarkets. Optimism 62

ADDITIONAL SERVICES Data & Digital ERP replacement: Green Sales becomes GS Next In 2020, we started replacing our renowned Green Sales ERP package. We have opted for a low-code solution based on the OutSystems platform. Motion10, our knowledge partner, is helping us to develop this modern business application. The implementation is a very important strategic project and has an expected lead time of three to four years. In 2020, we put the basic architecture in place and delivered the first module, LM Next, which we use to manage our logistics resources. Online stores In 2020, our online customer stores were further developed. Almost every customer now uses an online store that contains all available products, including specifications. These stores are mainly aimed at simplifying the ordering and delivery process as much as possible. Replenishment can also be easily integrated into the online store. Apps We introduced several apps in 2020. The first business functions have already been delivered as apps, including dock planning for shipping and an app based on artificial intelligence for quality control. 64

Fictitious data. Business intelligence: data and forecasting Diver, our business intelligence platform, provides valuable reports to our buyers and account managers as well as our suppliers and customers. For several partners, this system forms the basis of their inventory management. Diver was further developed in 2020, including a new forecast module.

QUOTE Shay (5) “ Mum can act silly sometimes, but she is the sweetest.” QUOTE Lynn (5) “ Mama does something with plants and chats on the computer.” “Mama does something with plants and computers and chats a lot on the computer. She is very good at working and giving hugs and kisses. Later, I want to be a princess and I think plants with rainbow colours are beautiful.” 66

“My mum works a lot. It was great fun being at her office and driving the fake car. Mum sometimes acts silly, but she is the sweetest mummy. Yellow plants are my favourite.” Kimberley Houwaart Sr. Business Intelligence Consultant

CONTINUOUS IMPROVEMENT Quality assurance Certificates In 2019, we added GLOBALG.A.P. Chain of Custody to our existing certifications. Last year, we managed to extend all our certifications including: Florimark Good Trade Practice (GTP), TraceCERT, ISO 9001:2015 and the Skal organic certificate. Quality systems We document all processes in Comm'ant, our quality assurance system. This increases our insight into the business and identifies points for improvement. Lean management To save time and costs, a team of Green and Black Belts supports process optimisation. Compliance To guarantee the safety and fairness of our products, we have our processes and products tested, audited and certified. Audits We once again passed several audits with flying colours. Eszter en Goos,the children of Kinga van der Weijde. 68

E-FULFILMENT Reguardz In 2020, we closely aligned the e-fulfilment activities of our sister company, Reguardz, with the Royal Lemkes operation again to achieve maximum synergy. Partly due to the coronavirus measures, we saw enormous growth in direct supply to consumers. Last year, we also invested in process and IT optimisation and now home-deliver plant packages in four countries.

Plantify Partners Europe #NEXTGENERATION Lisa, the daughter of Maggy Boer. 70

FAMILY FIRMS Plantify Partners Europe A network of family firms Royal Lemkes is a subsidiary of Plantify Partners Europe (PPE), a European network of family firms in the horticultural sector. Plantify Partners work together to sustainably grow their companies, their employees, their customers and their business partners. PPE was founded in 2020 with Royal Lemkes and the Belgian company Floréac as the first Plantify Partners. Local production regions Europe is rich in local production regions for the trade and distribution of pot plants. Floréac and Royal Lemkes, two healthy family businesses with long traditions and strong identities, connect these production areas via an efficient supply chain with sales markets throughout Europe. Both companies serve as logistical hubs within their respective production regions. Thanks to their strategic locations and well-organised logistics, they can deliver their products reliably throughout Europe. With PPE, the partners aim to create a logistics and trade network of European players that will bring sustainable economies of scale and synergies to all stakeholders. Debbie van Kampen with her son, Hugo. 72

QUOTE “ We believe in the strength of local family firms. Together, we can forge a European network that will allow us to serve leading European retailers even better by providing them with the finest plants grown throughout Europe.” Cees & Lise van der Meij Owner - Royal Lemkes & PPE “Through Plantify Partners Europe, we aim to build a network of European plant trading companies that preserve their own unique identities and collaborate where possible.” Cees and Lise with grandchildren.

QUOTE “ Plantify Partners look beyond returns. Of course, we want to be successful and grow but not at the expense of all else."    “We therefore opt for sustainable entrepreneurship with specialised family firms that occupy strong positions in their local markets. We adopt a cross-generational approach with respect for people and the planet. This is what makes family firms exceptional and valuable and this is what we want to preserve.” Werner Krott CEO and owner - Floréac 74

A NETWORK OF FAMILY FIRMS Based on three values Network of family firms Plantify Partners Europe is founded on three solid values: doing business together, growing together and creating a better world together. With PPE, a European network of family-owned horticulture companies is born. QUOTE “ I'm happy that Royal Lemkes has, in Floréac, a wonderful sister company." “Through collaboration, we further optimise our supply chain and the range of services we offer our customers. We can learn from one another and innovate together." Michiel de Haan CEO - Royal Lemkes PPE invites other family businesses to join the network. For more information, please visit www.plantifypartnerseurope.eu

Carlo Steentjes with his son, Ties. 76

STEWARDSHIP Green Sparkle Plantify Partners Europe is part of Green Sparkle, the family stewardship fund of our owner Cees van der Meij. Green Sparkle is an incubator for sustainable entrepreneurs and creative minds who want to do things differently and who strive to make a positive difference based on three important core values: Growing Green, Growing Talent and Growing Change. All companies under the Green Sparkle flag support the United Nations Sustainable Development Goals. www.greensparkle.nl


Mission & Vision 80

Royal Lemkes has a green heart. We believe in plants. Plants can create a better life, stronger businesses and contribute to a healthier, green world. In everything we do, we strive for sustainable growth. Of our people, of our relationships, of our common business and of the world we live in. Let’s plantify® the future. Together. Plantify® = Creating a better life, stronger businesses and a healthier, green world with plants.

WHAT WE BELIEVE IN Is what we stand for Royal Lemkes has a green heart Our green heart has three pillars: our roots as growers, our knowledge of plants and the sustainable ethos of our shareholder, management and employees. Our vision: We believe in plants Plants are a beautiful and healthy addition to our lives and strengthen our customers’ businesses. Plants also play an important role in making the world greener, which is sorely needed given the trend towards increasing urbanisation and the environmental issues we currently face. Our mission: We strive for sustainable growth Our aim is not to maximise profit but to maximise impact. Naturally, we need a minimum viable profit, but that results from and is a condition for a healthy company. We strive for the sustainable growth of our employees and business associates in everything we do. If we succeed in that, the company will grow organically. We also aim for a green supply chain and a liveable planet, not |only for ourselves but for all future generations. We do not just believe in plants. We also believe in: • Business as a force for good. Because companies like Royal Lemkes play an important role in making the world liveable and keeping it that way. • People. It is people who make the difference. That is why we continuously invest in our employees and our relationships. • Togetherness. With our stakeholders, retail partners and suppliers as well as our internal departments and colleagues. Together we can achieve more. • The uniqueness of the plant category. The importance of a good price-quality ratio is enormous. This calls for strategic partnerships and supply chain optimisation. • Scale. Size matters, in terms of sourcing, supply chain and professionalism. • Data. Possessing the right information is indispensable when making the right choices for our customers. • Doing better every day. This is why we work with Lean Management and continuously evaluate our processes. 82

Our dream for 2030 To sell twice as many plants as in 2020: from 125 million to 250 million. “Positive plants”: the plants we supply make a positive contribution to the environment. Employees throughout the entire supply chain are proud to be a part of this.

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