Interim Report

for the nine-month period ended September 30, 2024

Monitchem Holdco 2 S.A., Luxembourg

(CABB GROUP)
RCS B187.114
488, route de Longwy
L-1940 Luxembourg
Table of Contents

CABB9s business activities ......................................................................................................................................... 3

Financial reporting ...................................................................................................................................................... 5

Business review ......................................................................................................................................................... 6

Consolidated statement of profit or loss for the 3rd quarter 2024 ............................................................................... 9

Consolidated statement of profit or loss for the nine-month period ended September 30, 2024 ............................. 10

Consolidated statement of financial position as of September 30, 2024.................................................................. 11

Consolidated statement of cash flows for the nine-month period ended September 30, 2024 ................................ 12

Selected consolidated interim financial statements as of September 30, 2024 – Monitchem HoldCo 2 S.A. ....... 14ff.

2
CABB’S BUSINESS ACTIVITIES

The CABB Group is a leading Crop Science contract development and manufacturing organization (CDMO),
supplying customized active ingredients. CABB also offers high-complexity and high-purity chemical
ingredients to customers in the Life Sciences and Performance Materials markets.

Our varied product portfolio is organised across two product groups: (i) Exclusives and Specialties products, and (ii)
Advanced Intermediates and Base Chemicals products.
Exclusives are active ingredients customised for individual customers operating in the Crop Science industry and are
primarily used in herbicides, fungicides and insecticides and range from pilot scale to large-volume commercial
production scale.
Specialities consist of proprietary ingredients and target market segments with high customer value add and growth
potential. These include a variety of end market applications including starting materials for innovative
pharmaceuticals, actives for cosmetics, building blocks for nutrition supplements and food & beverage ingredients as
well as applications e.g. for the automotive and aerospace industries. Our products are based on our differentiating
technology platforms and our deep understanding of customer application requirements.
In our Advanced Intermediates and Base Chemicals product group, we offer intermediate and base chemical products,
such as monochloroacetic acid ("MCA") and other chloride-based products, that serve as chemical building blocks for
other secondary chemical processes with a variety of applications in various industries and end markets. MCA is a key
building block for organic synthesis of ingredients in various segments and end-markets and is provided in different
purity grades (incl. ultra-pure and high pure) as well as trade forms (incl. flakes, solution and others). Base Products
such as caustic soda and hydrochloric acid, are by-products from the production of chlorine and MCA, which are used
in several end markets including the broader chemicals space, pulp and paper, alumina, soap, detergents and others.
CABB9s performance is driven to a large extent by the global Crop Science end-market with ~48% of group revenue
exposed to the Crop Science markets in 2023, the majority of which consists of our CDMO offering through our
Exclusives products, and to a smaller degree with contributions from our Advanced Intermediates and Base Chemicals
products. CABB is a leading Crop Science CDMO supplier in Western Europe, serving major global agrochemicals
companies and holding strategic supplier status with the largest, European-based Crop Science companies for their
agrochemicals business. CABB9s customised products are highly integrated in CABB9s key customers9 supply chains,
often on an exclusive or near-exclusive basis for selected products so that CABB is closely aligned in demand planning
and supply chain coordination to set up scalable manufacturing units and efficient production processes. The
combination of this production know-how, lengthy product registration processes, and non-refundable capital
expenditure fees, which are sometimes partially paid by the customer at the beginning or throughout the project,
typically results in lower customer churn and high contract renewal rates.
CABB9s key Crop Science customers are active in a structurally growing global market driven by population growth
and decreasing arable land. We believe that we are well-positioned to benefit from positive long-term growth trends in
the Crop Science market and are investing in capacity and yield improvements to support the growth of our business.
The growth of our Crop Science CDMO business is also driven by the trend of increased outsourcing of major agro-
chemical players. In recent years, agrochemical companies have allocated a larger share of production to external
custom manufacturers, which provide flexible multi-purpose and multi-product capacity. Outsourcing reduces
agrochemical companies9 asset intensity, limits the risks associated with large, upfront investments and allows them
to deploy capital with a stronger focus on their core capabilities, such as research and development as well as
marketing and distribution. This trend is supported by new molecules becoming increasingly complex, often based on
multi-step synthesis, which requires demanding technical capabilities of focused manufacturing specialists. Our strong
market position in the Crop Science CDMO business is supported by structural barriers to entry, preventing new
competitors from easily entering these markets. We possess strong technical experience and process design
capabilities, which are important for securing new contracts. We believe that a new market entrant seeking to replicate
our facilities would face large capital investment costs. We are also protected by high switching costs for our customers
due to our high integration into our customers9 supply chains and their participation in capital expenditures related to
the developments of new products.

3
CABB also has a strong presence in the Life Sciences market, providing customised products in segments such as
novel RNA therapeutics, vitamins and supplements, and anti-aging and personal care, leading the markets for
European MCA supply, high purity DCA, as well as CAE manufacturing. Our products in this market consist primarily
of Specialty products as well as a number of Advanced Intermediates products.
CABB is a leading producer of Dichloroacetic acid (or DCA), used for the Oligonucleotide synthesis of short DNAs and
RNAs, which are a vital component in the formulation of RNA drugs. The DCA market is highly differentiated by its
level of purity and we are able to produce the highest purity levels and fulfil the emergent demand for DCA.
CABB is one of the leading suppliers of high purity MCA, used as basis for Betaine synthesis and cellulose for example,
for shampoos and toothpaste as well as liquid soap. Key growth drivers are a higher demand for hygiene products,
changing consumer preferences from solid to liquid products as well as the increased adoption of CMC as a thickening
agent in food and beverages. CABB is one of the principal suppliers of MCA to western Europe and the Americas and
supplies the majority of the largest MCA consumers in Europe. CABB attributes its strong market position to the high
quality of its products, its long-standing customer relationships and its expertise in technically demanding chemistry
and supply chain management as well as highly integrated production processes. We believe that a new market entrant
seeking to replicate our facilities would face large capital investment costs. Global MCA trade flows are often
characterised by regional supply and demand due to the corrosive nature of MCA and relatively high transportation
costs, which encourages proximity to customers.
CABB operates six production facilities across Switzerland, Finland, the United States, Germany and China. Our
custom synthesis production facility in Pratteln (Switzerland) has several multi-purpose production lines and dedicated
single purpose production plants including scale-up capabilities for our Exclusives and Specialities portfolio. The
facility9s integrated production system enables recovery of by-products and exhaust streams to improve efficiency and
our sustainability proposition by minimizing energy needs and waste. The Kokkola (Finland) site is a custom synthesis
production facility mainly for Crop Science products in our Exclusives portfolio offering several highly automated multi-
purpose production lines. Combining large-scale production capacities and infrastructure, a high degree of
automatization and an operational track-record, our Kokkola site offers improved economics for our Exclusives
products as well as for our new growth projects. The facility in Galena, Kansas (United States) offers several custom
synthesis production lines for our Exclusives and Specialities portfolio. The production facilities in Germany as well as
the plant at our Chinese site use state of the art hydrogenation technology to produce MCA, which provides significant
production cost and product quality advantages over the alternative crystallisation technology. The Gersthofen facility
uses backward-integrated electrolysis technology for captive chlorine production, while both the Knapsack facility and
the Chinese facility source chlorine onsite via a pipeline from the adjacent chlorine plant of a supplier who purchases
the hydrochloric acid generated by the production of MCA. We benefit from cost advantages as a result of operating
large-scale, highly integrated production facilities strategically located near key customers and suppliers as well as
transportation networks.

4
Financial reporting

This report may include forward-looking statements. These forward-looking statements include, but are not limited to, all
statements other than statements of historical facts contained in this report, including, without limitation, those regarding our
future financial position and results of operations, our strategy, plans, objectives, goals and targets, future developments in
the markets in which we participate or are seeking to participate or anticipated regulatory changes in the markets in which
we operate or intend to operate. In some cases, you can identify forward-looking statements by terminology such as 88aim,99
<anticipate=, <believe=, <continue=, <could=, estimate=, <expect=, <forecast=, <guidance=, <intend=, <may=, <plan=, <potential=,
<predict=, <projected=, <should= or <will= or the negative of such terms or other comparable terminology. By their nature,
forward-looking statements involve known and unknown risks, uncertainties, and other factors because they relate to events
and depend on circumstances that may or may not occur in the future. We caution you that forward-looking statements are
not guarantees of future performance and are based on numerous assumptions and that our actual results of operations,
including our financial condition and liquidity and the development of the industry in which we operate, may differ materially
from (and be more negative than) those made in, or suggested by, the forward-looking statements contained in this report.
In addition, even if our results of operations, including our financial condition and liquidity and the development of the industry
in which we operate, are consistent with the forward-looking statements contained in this report, those results or
developments may not be indicative of results or developments in subsequent periods.

5
Business review

Key Financials

Monitchem HoldCo 2 S.A.

3rd Quarter 3rd Quarter
2024 2023
in € million in € million
(unaudited) (unaudited)
Revenue by product group
Exclusives and Specialties ............................................ 87.7 111.7
Advanced Intermediates and Base Chemicals ............... 55.0 64.1
Total revenue ............................................................... 142.7 175.8

Adjusted EBITDA(1) ………...……………………….. 28.1 34.1

Adjustments:
Strategic Projects .......................................................... (0.4) (1.2)
ERP Implementation...................................................... (0.7) 0.0
Total adjustments ........................................................ (1.1) (1.2)

Reported EBITDA ........................................................ 27.0 32.9

(1) We define Reported EBITDA as net profit (loss) for the period adding back taxes on income, financial results, amortisation and depreciation. We define
Adjusted EBITDA as the net profit (loss) for the period adding back taxes on income, financial results, amortisation and depreciation and adjustments. We
believe that both Reported EBITDA and Adjusted EBITDA are useful to investors in evaluating our operating performance and our ability to incur and service
our indebtedness. Neither Reported EBITDA nor Adjusted EBITDA is a performance indicator recognised under IFRS. The Reported EBITDA and the
Adjusted EBITDA is not necessarily comparable to the performance figures published by other companies as Reported EBITDA or Adjusted EBITDA or the
like. You should exercise caution in comparing Reported EBITDA and Adjusted EBITDA as reported by us to Reported EBITDA or Adjusted EBITDA of other
companies.

Development of Revenue
Group revenue decreased by €33.1 million, or 18.8% year-on-year, from €175.8 million in the prior year9s third quarter to
€142.7 million in the third quarter of 2024. This decrease was mainly driven by lower sales volumes of our Exclusives product
group and negative pricing effects within the Intermediates and Base Chemicals segments.

Revenue of the product group <Exclusives and Specialties= decreased by €24.0 million, or 21.5%, year-on-year, from €111.7
million in the prior year9s quarter to €87.7 million in the third quarter of 2024. This decrease was mainly driven by a negative
volume development of our Exclusives product group given the continued destocking focus of our customers and cautious
purchasing by distributors. Our Specialties segment showed lower revenues due to reduced demand, which was partially
offset by positive pricing effects.

Revenue of the product group <Advanced Intermediates and Base Chemicals= decreased by €9.1 million, or 14.2%, year-on-
year, from €64.1 million in the prior year9s quarter to €55.0 million in the third quarter of 2024, due to lower market prices and
a softening demand within several end-markets.

Development of Earnings
Adjusted EBITDA of the Group decreased by €6.0 million, or 17.6% year-on-year, from €34.1 million in the prior year9s
quarter to €28.1 million in the third quarter of 2024. This was mainly driven by lower sales volumes of our Exclusives product
group, as well as by decreasing prices within the Intermediates and Base Chemicals segments.

6
Adjustments are defined as expenses and income not related to the operational performance of the business activities,
such as strategic development initiatives, restructuring and reorganization costs, costs related to the implementation of our
new Enterprise Resource Planning (ERP) System SAP S/4 Hana, financial impacts of natural disasters (including fire, storm
and related events), property damage insurance compensations, as well as valuation impacts resulting from purchase price
allocations. Adjustments amounted to a net expense of €1.1 million in the third quarter of 2024 (Q3-2023: net expense of
€1.2 million).

Consolidated statement of profit or loss for the 3rd Quarter 2024

Group gross profit decreased by €7.1 million, year-on-year, from €35.7 million in the prior year9s quarter to €28.6 million in
the third quarter of 2024, mainly driven by negative volume effects of out Exclusives product group as well as by negative
pricing effects of the product group <Advanced Intermediates and Base Chemicals=.

Earnings before interest and taxes (EBIT) decreased by €6.2 million, from €12.1 million in the prior year9s quarter to €5.9
million in the third quarter of 2024. 8Distribution and logistics expenses9 increased by €1.0 million year-on-year, driven by
higher transportation costs for our overseas business. 8General and administrative expenses9 decreased by €1.9 million, from
€9.4 million in the prior year9s quarter to €7.5 million in the third quarter of 2024. This decline was mainly driven by lower
personnel and advisory expenses, partially offset by higher insurance premiums. 8Other operating income9 amounted to €0.2
million in the third quarter of 2024.

Depreciation and amortisation amounted to €21.1 million in the third quarter of 2024 which reflects an increase of €0.3
million compared to the prior year9s quarter.

Financial result improved by €0.7 million, from a net loss of €15.1 million in the prior year9s quarter to a net loss of €14.4
million in the third quarter of 2024. 8Interest expenses and similar9, increased by €0.4 million year-on-year to €17.7 million in
the third quarter of the current year, predominately due to higher interests for our Notes. 8Other financial income9 increased
by €1.8 million, from a net income of €0.5 million in the third quarter of 2023 to a net income of €2.3 million in the third quarter
of 2024, predominately reflecting the impact of the measurement of the financial instruments embedded in the Notes at fair
value through profit and loss. The net foreign currency result decreased by €0.8 million year-on-year to a net income of €0.9
million in the third quarter of the current year. This mainly comprises valuation effects from the translation of EUR
denominated intercompany loans.

Taxes on income improved by €2.0 million, from a net expense of €2.1 million in the third quarter of 2023 to a net expense
of €0.1 million in the third quarter of 2024. The Group9s tax rate is impacted by financial expenses, which are subject to
restrictions under thin capitalisation rules in Germany and Finland, and for which no deferred tax assets are recognised.

Net result for the period decreased by €3.5 million year-on-year, from a net loss of €5.1 million in the third quarter of 2023
to a net loss of €8.6 million in the third quarter of 2024. Non-controlling interests reflect the 32.4% share in CABB - Jinwei
Specialty Chemicals (Jining) Co. Ltd., Zhanghuang Town (PRC), that is held by shareholders other than CABB.

7
Cash Flow
Cash flow from operating activities decreased year-on-year by €41.8 million, from €97.8 million in 2023, to €56.0 million
in the nine-month period ended September 30, 2024, driven by a weaker EBITDA development and higher NWC financing
requirements for contract assets and still too high inventory levels. Due to income tax reimbursements for the fiscal year
2023, net income tax payments decreased year-on-year by €11.8 million from €12.5 million in 2023 to €0.7 million for the
nine-month period ended September 30, 2024,

Cash flow from investing activities increased by €7.5 million from €42.7 million in the prior year9s period to €50.2 million
in the nine-month period ended September 30, 2024, driven by a growth project within the Crop Science CDMO segment.

Cash flow from financing activities improved by €35.4 million year-on-year, from a net outflow of €63.1 million in 2023 to
a net outflow of €27.7 million for the nine-month period ended September 30, 2024. The improvement was primarily due to
net-cashflows resulting from the completion of the Group9s refinancing in the previous year9s comparison period. In the current
nine-month period ended September 30, 2024, cash flow from financing activities mainly comprised bond interest payments,
lease payments and proceeds from the utilisation of our revolving credit facility (€20.0 million).

Cash closing balance amounted to €42.3 million as of September 30, 2024 (September 30, 2023: €62.1 million). The Group
has access to unutilized revolving credit facilities of €84 million.

Other
On October 28, 2024, CABB Group announced that CABB Group is getting a new Chief Financial Officer (CFO) starting mid-
December. Marcus Mayer will succeed Markus Schürholz, who is leaving the company at his own request at the end of 2024
after nearly six years to pursue a new professional challenge.

The financial information of the Group included in this Interim Report is that of Monitchem Holdco 2 S.A. (the direct holding
company of the Issuer) and its consolidated subsidiaries. Monitchem Holdco 2 S.A. is not a member of the restricted group
subject to the covenants under the Indenture (which comprises the Issuer and the Issuer9s restricted subsidiaries) and does
not guarantee the Notes.

On a pro forma basis after giving effect to the refinancing transactions and the application of the proceeds therefrom, the
only material asset of Monitchem Holdco 2 S.A. is its equity ownership in the Issuer.

8
Consolidated statement of profit or loss for the 3rd Quarter 2024

Monitchem HoldCo 2 S.A.

For the 3rd Quarter For the 3rd Quarter
2024 2023
in € million in € million
(unaudited) (unaudited)

Sales ................................................................................................................. 142.7 175.8

Cost of Sales ..................................................................................................... (114.1) (140.1)
Gross Profit ...................................................................................................... 28.6 35.7

Research and development expenses ............................................................... (0.9) (1.2)

Distribution and logistics expenses .................................................................... (14.5) (13.5)
General and administrative expenses ................................................................ (7.5) (9.4)
Other Income ..................................................................................................... 0.2 0.5
Earnings before interest and taxes (EBIT) ..................................................... 5.9 12.1

Depreciation and amortisation ........................................................................... 21.1 20.8

Reported EBITDA............................................................................................. 27.0 32.9

Interest income and similar ................................................................................ 0.1 0.1

Interest expense and similar .............................................................................. (17.7) (17.3)
Other financial (expenses)/ income .................................................................... 2.3 0.4
Foreign currency (losses)/ gains (net) ................................................................ 0.9 1.7
Financial result ................................................................................................ (14.4) (15.1)

Earnings before taxes ..................................................................................... (8.5) (3.0)

Taxes on income ............................................................................................... (0.1) (2.1)
Net result for the period .................................................................................. (8.6) (5.1)

Attributable to shareholders ............................................................................ (8.5) (4.8)

Attributable to non-controlling interests ........................................................... (0.1) (0.3)

9
Consolidated statement of profit or loss for the nine-month period ended September 30, 2024

Monitchem HoldCo 2 S.A.

For the nine-month
period ended
September 30, September 30,
2024 2023
in € million in € million
(unaudited) (unaudited)

Sales................................................................................................................. 449.4 563.1

Cost of sales ..................................................................................................... (363.5) (426.1)
Gross profit ..................................................................................................... 85.9 137.0

Research and development expenses .............................................................. (2.7) (3.4)

Distribution and logistics expenses ................................................................... (42.9) (44.6)
General and administrative expenses ............................................................... (26.0) (26.2)
Other income .................................................................................................... 2.0 1.8
Earnings before interests and taxes (EBIT)................................................... 16.3 64.6

Depreciation and amortisation........................................................................... 62.7 61.3

Reported EBITDA ............................................................................................ 79.0 125.9

Interest income and similar ............................................................................... 0.3 0.1

Interest expense and similar ............................................................................. (53.0) (69.9)
Other financial expenses ................................................................................... 0.0 (11.4)
Foreign currencies gain (net) ............................................................................ (2.5) 1.1
Financial result................................................................................................ (55.2) (80.1)

Earnings before taxes ..................................................................................... (38.9) (15.6)

Taxes on income............................................................................................... 0.8 (7.0)
Net result for the period.................................................................................. (38.1) (22.6)
Attributable to shareholders (37.7) (21.6)
Attributable to non-controlling interests (0.4) (1.0)

10
Consolidated statement of financial position as of September 30, 2024

Monitchem HoldCo 2 S.A.

As of As of
September 30, September 30,
2024 2023
in € million in € million
(unaudited) (unaudited)
Assets
Non-current assets
Goodwill .................................................................................................. 202.7 200.8
Other intangible assets ........................................................................... 74.4 84.7
Property, plant and equipment ................................................................ 549.9 577.9
Derivative financial assets....................................................................... 10.7 6.8
Financial assets ...................................................................................... 4.7 2.6
Total non-current assets ......................................................................... 842.4 872.8

Current assets
Inventories .............................................................................................. 80.8 95.0
Accounts receivable, trade ...................................................................... 34.1 44.2
Contract assets ....................................................................................... 32.9 26.3
Other financial assets ............................................................................. 5.1 10.4
Other non-financial assets ...................................................................... 11.7 12.0
Income tax receivables ........................................................................... 4.6 6.5
Cash and cash equivalents ..................................................................... 42.3 62.1
Total current assets ................................................................................. 211.5 256.5

Total assets .............................................................................................. 1,053.9 1,129.3

Equity and Liabilities

Equity........................................................................................................ 170.8 234.0

Long-term liabilities
Provisions for pensions and similar obligations ....................................... 22.0 17.5
Other provisions ...................................................................................... 2.8 3.1
Notes ...................................................................................................... 659.7 657.7
Other financial liabilities .......................................................................... 15.8 17.7
Deferred tax liabilities .............................................................................. 51.3 56.5
Total long-term liabilities ......................................................................... 751.6 752.5

Short-term liabilities
thereof
Other provisions ...................................................................................... 11.2 13.4
Notes ...................................................................................................... 11.8 16.6
Trade accounts payable .......................................................................... 61.9 80.8
Contract liabilities .................................................................................... 13.1 9.7
Income tax liabilities ................................................................................ 0.7 8.1
Other financial liabilities .......................................................................... 26.3 7.4
Other non-financial liabilities ................................................................... 6.5 6.8
Total short-term liabilities ....................................................................... 131.5 142.8

Total equity and liabilities ....................................................................... 1,053.9 1,129.3

11
Consolidated statement of cash flows for the nine-month period ended September 30, 2024

Monitchem HoldCo 2 S.A.

For the nine-month For the nine-month
period ended period ended
September 30, September 30,
2024 2023
in € million in € million
(unaudited) (unaudited)

Adjusted EBITDA ............................................................................................ 82.0 127.8

Adjustments ................................................................................................... (3.0) (1.9)

Income taxes paid .......................................................................................... (0.7) (12.5)

Change in net working capital and provisions ................................................. (22.3) (15.6)

Cash Flow from Operating Activities. ............................................................ 56.0 97.8

Capital Expenditures ...................................................................................... (50.2) (42.7)

Cash Flow from Investing Activities .............................................................. (50.2) (42.7)

Cash Proceeds from Issuing Debentures ....................................................... 0.0 663.8

Payments due to redemption of Indentures .................................................... 0.0 (651.3)
Net interest and financing charges paid ......................................................... (40.8) (37.3)
Transaction costs related to Debentures ....................................................... 0.0 (12.6)
Payments due to interest cap transactions .................................................... 0.0 (0.7)
Principal elements of lease payments ............................................................ (5.3) (5.0)
Proceeds from/ Repayment of short-term borrowings ..................................... 20.0 (20.0)
Increase in other non-current financial assets ................................................ (1.6) 0.0
Cash Flow from Financing Activities ............................................................. (27.7) (63.1)

Change in cash and cash equivalents ........................................................... (21.9) (8.0)

Cash Opening Balance ................................................................................... 64.6 69.9

F/X Effect on Cash Held .................................................................................... (0.4) 0.2
Cash Closing Balance .................................................................................... 42.3 62.1

12
Contact
CABB Group GmbH
Otto-Volger-Strasse 3c
65843 Sulzbach
Deutschland

Tel.: +49 6196 9674-153

Fax: +49 6196 9674-199
E-Mail: [email protected]

Further information
Published on November 26, 2024
You can find this and other publications
on our website at www.cabb-chemicals.com

13
 Selected consolidated
interim financial statements
for the nine-month period ended September 30, 2024

Monitchem Holdco 2 S.A., Luxembourg

RCS B187.114
488, route de Longwy
L-1940 Luxembourg
Table of contents

Consolidated interim statement of profit or loss and other comprehensive income for the nine-month
period ended September 30, 2024 .......................................................................................................... 2
Consolidated interim statement of financial position ............................................................................... 3
Consolidated interim statement of changes in equity ............................................................................. 4
Consolidated interim statement of cash flows ......................................................................................... 5
Basis of preparation and presentation to the selected consolidated interim financial statements for the
nine-month period ended September 30, 2024 ....................................................................................... 6
(1) Corporate information .................................................................................................................. 6
(2) Principles of presentation of the selected consolidated interim financial statements ................. 6
(3) Use of estimates and assumptions in the preparation of the selected consolidated interim
financial statements ..................................................................................................................... 8
(4) Accounting policies and valuation methods ................................................................................ 8
(5) Scope of consolidation .............................................................................................................. 20
(6) Other disclosures....................................................................................................................... 20
(7) Events after the balance sheet date .......................................................................................... 22

1
Monitchem Holdco 2 S.A., Luxembourg

Consolidated interim statement of profit or loss and other comprehensive

income for the nine-month period ended September 30, 2024

For the nine months

ended September 30,
kEUR 2024 2023
Revenue 449,395 563,097
Cost of sales -363,493 -426,061
Gross profit 85,902 137,036
Research and development expenses -2,672 -3,415
Distribution and logistics expenses -42,891 -44,576
General and administrative expenses -26,031 -26,247
Other income 1,996 1,782
Earnings before interest and taxes (EBIT) 16,304 64,580
Interest income and similar 296 86
Interest expense and similar -53,030 -69,903
Other financial expenses -18 -11,449
Foreign currency gains/ losses (net) -2,440 1,126
Financial result -55,192 -80,140
Earnings before taxes -38,888 -15,560
Taxes on income 838 -7,042
Net result for the period -38,050 -22,602

Other comprehensive income

Items that will not be reclassified to profit or loss:
Actuarial gains(+)/ losses(-) from defined-benefit plans 1,769 67
Income tax relating to items that will not be reclassified
subsequently -190 -117
1,579 -50

Items that may be reclassified to profit or loss:

Difference from currency translation of financial
statements of foreign operations -7,441 7,086
Other comprehensive income, net of income tax -5,862 7,036
Total comprehensive income for the period -43,912 -15,566

Of the net result for the period, the following amounts are
attributable to:
Shareholders of Monitchem Holdco 2 S.A. -37,664 -21,563
Non-controlling interests -386 -1,039

Of the total comprehensive income, the following amounts are

attributable to:
Shareholders of Monitchem Holdco 2 S.A. -43,546 -14,359
Non-controlling interests -366 -1,207

2
Monitchem Holdco 2 S.A., Luxembourg

Consolidated interim statement of financial position

as of September 30, 2024

September 30, December 31, September 30,

kEUR 2024 2023 2023

Assets
Goodwill 202,660 204,519 200,839
Other intangible assets 74,394 84,252 84,653
Property, plant and equipment 549,958 563,781 577,908
Derivative financial assets 10,679 10,680 6,788
Financial assets 4,661 2,843 2,635
Non-current assets 842,352 866,075 872,823

Inventories 80,781 93,008 95,032

Accounts receivable, trade 34,116 46,641 44,218
Contract assets 32,865 13,228 26,344
Other financial assets 5,120 10,568 10,365
Other non-financial receivables 11,747 10,168 12,006
Income tax receivables 4,651 8,149 6,477
Cash and cash equivalents 42,286 64,555 62,094
Current assets 211,566 246,317 256,536

Total assets 1,053,918 1,112,392 1,129,359

Equity
Subscribed capital and share premium 292,804 292,804 292,804
Retained earnings -195,663 -159,578 -129,333
Other reserves 69,904 77,365 66,140
Shareholders9 equity attributable to the shareholders 167,045 210,591 229,611
of Monitchem Holdco 2 S.A.
Non-controlling interests 3,804 4,170 4,378
Total equity 170,849 214,761 233,989

Liabilities
Provisions for pensions and similar obligations 22,034 23,986 17,546
Other provisions 2,764 2,912 3,143
Notes 659,661 657,849 657,703
Other financial liabilities 15,787 17,755 17,655
Deferred tax liabilities 51,346 55,251 56,529
Non-current liabilities 751,592 757,753 752,576

Other provisions 11,163 14,480 13,380

Notes 11,791 2,716 16,629
Accounts payable, trade 61,897 94,297 80,776
Contract liabilities 13,115 9,845 9,652
Income tax liabilities 727 2,566 8,132
Other financial liabilities 26,329 8,302 7,454
Other non-financial liabilities 6,455 7,672 6,771
Current liabilities 131,477 139,878 142,794

Total equity and liabilities 1,053,918 1,112,392 1,129,359

3
Monitchem Holdco 2 S.A., Luxembourg

Consolidated interim statement of changes in equity

for the nine-month period ended September 30, 2024

Shareholders' equity attributable to the shareholders of Monitchem Holdco 2 S.A.

Subscribed Share Contribution Translation Retained Total Non- Total equity
capital premium Reserve Reserve earnings controlling
kEUR interests

As of December 31, 2022 1,000 291,804 -11,376 70,262 -107,720 243,970 5,585 249,555

Net result for the period 0 0 0 0 -21,563 -21,563 -1,039 -22,602

Other comprehensive income for the period
Difference from currency translation of
financial statements of foreign operations 0 0 0 7,254 0 7,254 -168 7,086
Actuarial gains / (losses) of defined benefit plans
(net of tax) 0 0 0 0 -50 -50 0 -50
0 0 0 7,254 -50 7,204 -168 7,036
Total comprehensive income for the period 0 0 0 7,254 -21,613 -14,359 -1,207 -15,566

As of September 30, 2023 1,000 291,804 -11,376 77,516 -129,333 229,611 4,378 233,989

As of December 31, 2023 1,000 291,804 -11,376 88,741 -159,578 210,591 4,170 214,761

Net result for the period 0 0 0 0 -37,664 -37,664 -386 -38,050

Other comprehensive income for the period
Difference from currency translation of
financial statements of foreign operations 0 0 0 -7,461 0 -7,461 20 -7,441
Actuarial gains / (losses) of defined benefit plans
(net of tax) 0 0 0 0 1,579 1,579 0 1,579
0 0 0 -7,461 1,579 -5,882 20 -5,862

Total comprehensive income for the period 0 0 0 -7,461 -36,085 -43,546 -366 -43,912

As of September 30, 2024 1,000 291,804 -11,376 81,280 -195,663 167,045 3,804 170,849

4
Monitchem Holdco 2 S.A., Luxembourg

Consolidated interim statement of cash flows

for the nine-month period ended September 30, 2024

For the nine months

ended September 30,
kEUR 2024 2023

Net result for the period -38,050 -22,602

Financial result 55,192 80,140
Taxes on income -838 7,042
Earnings before interest and taxes (EBIT) 16,304 64,580
+ Depreciation and amortisation 62,712 61,331
-/+ Decrease / Increase in provisions -3,924 1,752
+ Losses from the disposal of assets 151 67
+/- Income taxes refund / paid (net) -709 -12,466
+ Decrease in inventories, trade accounts receivables, contract 4,673 24,431
assets, other financial assets and other non-financial assets
- Decrease in trade accounts payable, contract liabilities and -23,370 -41,987
other non-financial liabilities
+ Interest received 118 86
Cash flow from operating activities 55,955 97,794

- Investments in intangible assets -3,439 -579

- Investments in property, plant and equipment -46,749 -42,170
+ Proceeds from sale of property, plant and equipment 18 67
Cash flow from investing activities -50,170 -42,682

+ Cash Proceeds from Issuing Debentures 0 663,750

- Payments due to redemption of Indentures 0 -651,259
- Increase in other non-current financial assets -1,640 0
- Net Interest and financing fees paid -40,776 -37,254
- Transaction costs related to loans and borrowings 0 -12,598
- Payments due to interest cap transactions 0 -727
- Principal elements of lease payments -5,242 -5,018
+/- Proceeds / Repayment from short term borrowings 20,000 -20,000
Cash flow from financing activities -27,658 -63,106
Change in cash and cash equivalents -21,873 -7,994
Cash and cash equivalents at the beginning of the year 64,555 69,904
-/+ Change due to movements in exchange rates -396 184
Cash and cash equivalents at period end 42,286 62,094

5
Monitchem Holdco 2 S.A., Luxembourg

Basis of preparation and presentation to the selected consolidated interim

financial statements for the nine-month period ended September 30, 2024

(1) Corporate information

Monitchem Holdco 2 S.A. with registered office at 488, route de Longwy in L-1940 Luxembourg
(hereafter <the Company=, <the CABB Group=) was established on May 9, 2014 as a public limited
liability company and was registered on May 22, 2014 in the commercial register of Luxembourg under
number B 187114. The Company9s sole shareholder is Monitchem Holdco 1 S.à r.l., Luxembourg, an
entity which is beneficially owned principally by funds advised by Permira Funds.
CABB Group is a global Crop Science CDMO (contract development and manufacturing organization)
and Life Science company, supplying tailor-made customised active ingredients to leading
manufacturers of herbicides, fungicides and insecticides. We also offer high-complexity and high-purity
specialised chemical ingredients to multiple customers in the Life Science markets.
Our varied product portfolio is organised across two product groups: (i) Exclusives and Specialties
products, and (ii) Advanced Intermediates and Base Chemicals products.
Exclusives are active ingredients customised for individual customers operating in the Crop Science
industry and are primarily used in herbicides, fungicides and insecticides and range from pilot scale to
large-volume commercial production scale.
Specialities consist of proprietary ingredients and target market segments with high customer value add
and growth potential. These include a variety of end market applications including starting materials for
innovative pharmaceuticals, actives for cosmetics, building blocks for nutrition supplements and food &
beverage ingredients as well as applications e.g. for the automotive and aerospace industries. Our
products are based on our differentiating technology platforms and our deep understanding of customer
application requirements.
In our Advanced Intermediates and Base Chemicals product group, we offer intermediate and base
chemical products, such as monochloroacetic acid ("MCA") and other chloride-based products, that
serve as chemical building blocks for other secondary chemical processes with a variety of applications
in various industries and end markets. MCA is a key building block for organic synthesis of ingredients
in various segments and end-markets and is provided in different purity grades (incl. ultra-pure and high
pure) as well as trade forms (incl. flakes, solution and others) Base Products such as caustic soda and
hydrochloric acid, are by-products from the production of chlorine and MCA, which are used in several
end markets including the broader chemicals space, pulp and paper, alumina, soap, detergents and
others.

(2) Principles of presentation of the selected consolidated interim financial statements

The selected consolidated interim financial statements of Monitchem Holdco 2 S.A. for the nine-month
period ended September 30, 2024 consist of the consolidated statement of profit or loss and other
comprehensive income, the consolidated statement of financial position, the consolidated statement of
changes in equity and the consolidated statement of cash flows accompanied by selected explanations
to the selected consolidated interim financial statements and have been prepared in accordance with
IAS 34 Interim Financial Reporting, except for the notes required by IAS 34 beside IAS 34.16A(a) & (h),
and except in regards to the presentation of the consolidated statement of profit or loss and other
comprehensive income for the current interim period according to IAS 34.20(b).
The selected consolidated interim financial statements of the CABB Group are drawn up in euros.
Except where otherwise indicated, amounts are stated in thousands of euros (kEUR) and rounded to
the nearest thousand. Adding individual figures may therefore not always result in the exact total given.

6
Except for the new accounting regulations below and the policy to recognise and measure income taxes
in the interim period, the accounting policies adopted in the preparation of the selected consolidated
interim financial statements are consistent with those followed in the preparation of the annual
consolidated financial statements of Monitchem Holdco 2 S.A. for the year ended December 31, 2023.
The selected consolidated interim financial statements were prepared and authorised for issue by the
Board of Directors on November 25, 2024.

New standards and interpretations adopted by the Group

With effect from January 1, 2024, we applied certain new and amended standards and interpretations
published by the International Accounting Standards Board (IASB). The amendments had no material
impact on the Group9s financial position or results of operations:
" Amendments to IAS 1 Presentation of Financial Statements 3 Classification of Liabilities as Current
or Non-current. The amendments pertain to a limited modification of the relevant criteria used to
classify liabilities as current or noncurrent. They specify that the classification of liabilities as current
depends on the company9s rights as of the balance sheet date to postpone settlement of the liability
by a minimum of 12 months after the end of the reporting period. If such rights exist, the liability is
classified as noncurrent. Otherwise, it is classified as current. Classification is irrespective of
management9s expectations and of possible events after the balance sheet date. It also specifies
that settlement of a liability is defined as the repayment of liability using cash, other economic
resources or a company9s own equity instruments. The IASB issued a further amendment on July
15, 2020, whereby the date of initial application of the amendment on classification of liabilities will
be postponed by one year to January 1, 2024.
" Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments. The
amendments issued on May 25, 2023, relate to disclosure requirements in connection with supplier
financing arrangements - also known as supply chain financing, financing of trade payables or
reverse factoring arrangements. The amendments are to be applied in the fiscal year beginning on
or after January 1, 2024.
" Amendments to IFRS 16 Leases. The amendments impact how a seller-lessee accounts for
variable lease payments that arise in a sale-and-leaseback transaction. The amendments introduce
a new accounting model for variable payments and will require seller-lessees to reassess and
potentially restate sale-and-leaseback transactions entered into since 2019. The amendments are
to be applied in the fiscal year beginning on or after January 1, 2024.

The following IFRSs and their interpretations are not yet in force in 2024 but already issued by the
International Accounting Standards Board (IASB). They were reviewed and are explained below, CABB
currently assumes that they will have no material effect on the Consolidated Financial Statements and
does not plan to early adopt these amendments.
" Amendments to IFRS 10 IAS 28 Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture. The IASB has postponed the mandatory effective date of its 2014
Amendments indefinitely.
" Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates 3 Lack of
Exchangeability. The amendments issued on August 15, 2023, clarify how an entity should assess
whether a currency is exchangeable and how it should determine a spot exchange rate when
exchangeability is lacking. They also require the disclosure of information that enables users of
financial statements to understand the impact of a currency not being exchangeable. The
amendments are to be applied in the fiscal year beginning on or after January 1, 2025.
" Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures. The
amendments issued on May 30, 2024, include guidance on the classification of financial assets,
including those with contingent features. Furthermore, relating to disclosure requirements,

7
 companies will now be required to provide additional disclosures on financial assets and financial
liabilities that have certain contingent features. The amendments are to be applied in the fiscal year
beginning on or after January 1, 2026.
" IFRS 18 Presentation and Disclosure in Financial Statements. The new standard issued on April 9,
2024, will replace IAS 1 Presentation of Financial Statements and affect all companies using IFRS
Accounting Standards. While many requirements have been carried forward from IAS 1 unchanged,
IFRS 18 introduces new requirements on presentation within the statement of profit or loss,
including specified totals and subtotals. It also requires disclosure of management-defined
performance measures and includes new requirements for aggregation and disaggregation of
financial information based on the identified 8roles9 of the primary financial statements and the notes.
In addition, there are consequential amendments to other accounting standards. IFRS 18 is
effective for annual reporting periods beginning on or after 1 January 2027.
" IFRS 19 Subsidiaries without Public Accountability: Disclosures. The new standard issued on May
9, 2024, specifies reduced disclosure requirements that an eligible entity is permitted to apply
instead of the disclosure requirements in other IFRS Accounting Standards. IFRS 19 is effective for
annual reporting periods beginning on or after 1 January 2027.
" Annual Improvements to IFRS Accounting Standards - Volume 11. The amendments issued on July
18, 2024, refer to IFRS 1 First-time Adoption of International Financial Reporting Standards, IFRS
7 Financial Instruments: Disclosures, IFRS 9 Financial Instruments, IFRS 10 Consolidated Financial
Statements and IAS 7 Statement of Cash Flows. The amendments include clarifications,
simplifications, corrections and changes aimed at improving the consistency of the IFRS Accounting
Standards. The amendments are to be applied in the fiscal year beginning on or after January 1,
2026.
We are currently evaluating the impact of the application of those standards according to the required
application date in the financial years 2025 to 2026 on the consolidated financial statements.

(3) Use of estimates and assumptions in the preparation of the selected consolidated
interim financial statements
The extent of the assets, liabilities and provisions, contingencies and other financial obligations shown
in the selected consolidated interim financial statements depends to a certain extent on estimates or
assumptions. These are based on the circumstances and assessments prevailing on the balance sheet
date, and accordingly also influence the amount of the income and expenses shown for the respective
financial periods. Such assumptions relate to the definition of the useful lives of depreciable fixed assets
or intangible assets, the measurement of provisions and other assets or obligations. Due consideration
is given to factors of uncertainty for the purpose of establishing the values; however, actual results may
differ from the original estimates.
In preparing these selected consolidated interim financial statements, the significant judgements made
by management in applying the Group9s accounting policies and the key sources of estimating
uncertainty were the same as those that applied to the consolidated financial statements for the year
ended December 31, 2023.

(4) Accounting policies and valuation methods

The selected consolidated interim financial statements of Monitchem Holdco 2 S.A. have been prepared
on the historical cost basis except for derivative financial instruments measured at fair value and except
for provisions for pensions and similar obligations that are measured at present value of the defined
benefit obligation less fair value of plan assets.

a) Scope of consolidation

8
The scope of consolidation is based on the application of IFRS 10. According to IFRS 10, a group
consists of a parent entity and the subsidiaries controlled by the parent. <Control= of an investee
assumes the simultaneous fulfilment of the following three criteria: (1) the parent company holds
decision-making power over the relevant activities of the investee, (2) the parent company has rights to
variable returns from the investee, (3) the parent company can use its decision-making power to affect
the variable returns.

b) Reporting date
The financial information of the consolidated companies has been prepared as of September 30, 2024.

c) Uniform valuation
The assets and liabilities of the integrated companies included in the selected consolidated interim
financial statements are recognized and valued uniformly, in accordance with the principles described
in this document.

d) Business combination
A business combination is recognised at the time control over the subsidiary is obtained by the group
(acquisition date) using the acquisition method. The first step is to measure all identifiable assets
acquired and (contingent) liabilities assumed with their fair values at the acquisition date. The group
recognises any non-controlling interest in the acquiree at the non-controlling interest9s proportionate
share of the recognised amounts of acquiree9s identifiable net assets. The consideration transferred is
netted with the proportionate revalued shareholders9 equity which has been acquired. Any differences
which result from this process are capitalised as goodwill and are written down only in the event of an
impairment. If the proportionate amount of the acquisition of net assets measured at fair value exceeds
the consideration transferred of the business combination, the identification and valuation of the
identified assets, liabilities and contingent liabilities of the acquired company as well as the
measurement of the consideration transferred of the business combination are reassessed. Any
difference remaining after the reassessment is recognised directly in the statement of profit or loss. The
acquisition-related costs incurred for carrying out a business combination are recognised in the
consolidated statement of profit or loss as incurred.

e) Eliminations
Internal balances and transactions within the Group as well as gains and losses from internal
transactions within the Group are eliminated as part of the process of preparing the selected
consolidated interim financial statements.

f) Foreign currency translation

The selected consolidated interim financial statements are prepared in thousand Euros. Items included
in the interim financial statements of each of the Group9s entities are measured using the currency of
the primary economic environment in which the entity operates (8the functional currency9).
In the interim financial statements of the individual Group companies, transactions in foreign currency
are translated into the respective functional currency using the spot rate prevailing on the dates of the
transaction. Monetary items which are not denominated in the functional currencies of the subsidiaries
are translated on the reporting date using the rate applicable at the end of the reporting period. The
resulting currency gains and losses are recognised directly in the financial result.
The assets and liabilities of subsidiaries whose functional currency is not the Euro are translated using
the reporting period-end reference date rate into the reporting currency (Euro), which is also the
functional currency of Monitchem Holdco 2 S.A. Expenses and income are translated using the rates
on the dates of the transactions approximated by the average rates. All cumulative differences resulting
from the currency translation of the shareholders9 equity of foreign subsidiaries attributable to changes
in the exchange rates are shown directly in other comprehensive income.

9
Goodwill and fair value adjustments arising from the acquisition of a foreign entity are treated as assets
and liabilities of the foreign entity and translated at the closing rate. Related exchange differences are
recognised in other comprehensive income.

For the main currencies in the Group, the following exchange rates have been used based on 1 Euro:

Average Exchange rate on the Average Exchange rate on the

exchange rate reporting date exchange rate reporting date
9M 2024 September 30, 2024 9M 2023 September 30, 2023
Swiss Francs 0.9584 0.9449 0.9775 0.9670
US Dollar 1.0870 1.1190 1.0835 1.0611
Chinese Yuan Renminbi 7.8369 7.8240 7.6315 7.6315

g) Revenue recognition
Revenue from contracts with customers is recognised in the amount of the consideration the Group
expects to receive in exchange for the goods or services when the customer obtains control of the goods
or services. Control is considered to be transferred when the customer can direct the use of the goods
or services and can obtain all substantial remaining benefits from them.
CABB primarily generates income from the sale of goods. Within the product group <Exclusives and
Specialities=, revenue from specific customer contracts is recognised over time. In these cases CABB9s
performance obligation consists in the creation of an asset without an alternative use to CABB and
CABB has an enforceable right to payment for the performance obligation completed to date. These
contractually enforcable rights are recognised and disclosed within 8Accounts receivable, trade9 if
already shipped, or otherwise within 8Contract assets9. The valuation of the related revenues is
performed by using the output method. The produced chemicals are valued by the agreed sales price
and any other parts allocated based on the overall amount of chemicals to be produced under the
respective contracts.
Certain customer contracts within the product group 8Exclusives and Specialties9 provide for non-
refundable capital expenditure fees, paid by the customer at the beginning or during the project. These
advance payments are recognised in the consolidated statement of profit or loss in proportion to the
performance used by the customer during the contract period (output method). The outstanding
performance obligation is disclosed in the balance sheet at each reporting date. It is possible that the
performance obligation at a given point in time is in a contract asset or a contract liability position.
If a customer contract does not meet these criteria, the customer obtains control of the goods at a
specific point in time, and the corresponding sales revenue is hence recognised at a specific point in
time. Determination of the point in time at which the customer obtains control of the goods occurs in the
context of an overall assessment of the circumstances which considers the existence of a present claim
to payment, the legal title to the goods, actual physical possession of the goods, the transfer of risks
and rewards as well as customer acceptance. The transfer of risks and rewards takes into account the
underlying terms of delivery (especially Incoterms) and is of particular practical significance. According
to these principles, sales revenue from the sale of goods is generally recognized upon delivery.
Payment terms depend on the customer9s creditworthiness and range from cash in advance to longer
payment terms.

10
h) Cost of sales
Cost of sales comprises the costs of materials, personnel expenses, proportionate depreciation and
amortisation, repairs and maintenance, energy, analysis and ecology, production overheads, plant
overheads as well as costs of packaging the products.

i) Distribution and logistics expenses

Distribution and logistics expenses comprise the costs of personnel expenses, proportionate
depreciation on property, plant and equipment and intangible assets as well as transport costs.

j) Research and development

Research costs are recognised immediately as expense when they are incurred. They comprise wages
and salaries, cost of materials, proportionate depreciation on property, plant and equipment and
overheads. Development costs are only capitalised if, on the basis of various criteria, it is probable that
the capitalised amount will be covered by future income.

k) Financial result
This item contains interest income and expenses as well as foreign currency gains and losses. Interest
income and expense is recognised using the effective interest rate method.

l) Borrowing costs
The process of the acquisition, construction or production of intangible assets or property, plant and
equipment does not cover a period of more than one year. Accordingly, no borrowing costs have been
capitalised as part of the costs of purchase or production costs.

m) Goodwill
Goodwill arises in business combinations and represents the excess of the consideration transferred,
the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any
previous equity interest in the acquiree over the fair value of the identifiable net assets acquired.
Goodwill is only written down in the event of an impairment. The value of goodwill is subject to an annual
impairment test and is also reviewed if there is any indication of an impairment. The goodwill impairment
test is performed based on cash-generating units (CGUs) by comparing the recoverable amount with
the carrying amount.
The following three cash generating units have been identified: (i) European contract development and
manufacturing organisation (European-CDMO), comprising CABB AG, Pratteln (Switzerland) and
CABB Oy, Kokkola (Finland); (ii) US contract development and manufacturing organisation (US-
CDMO), comprising Jayhawk Fine Chemicals Corporation, Galena, Kansas (USA); (iii) Non-contract
development and manufacturing organisation (Non-CDMO), comprising CABB GmbH, Gersthofen
(Germany), CABB Jinwei Specialty Chemicals (Jining) Co. Ltd. (PRC) and CABB Trading (Shanghai)
Co. Ltd., Shanghai (PRC). These three CGUs reflect the lowest level within the entity at which goodwill
is monitored for internal management purposes.
The carrying value of the CGUs containing goodwill is compared to the recoverable amount, which is
the higher of the value in use and the fair value less costs of disposal. Any impairment is recognised
immediately as an expense and is not subsequently reversed.

n) Intangible assets
Acquired intangible assets, excluding goodwill as well as intangible assets with an indefinite useful life,
are measured at cost of purchase less accumulated straight-line depreciation and eventually less
accumulated impairment losses. The respective useful life is the length of the underlying agreement
and the probable utilisation of the potential use of the intangible asset.

11
Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount may not be recoverable. Impairments are recognised if the recoverable amount
is lower than the carrying amount. The recoverable amount is the higher of fair value less costs of
disposal and the value in use. For the purposes of assessing impairment, assets are grouped at the
lowest levels for which there are largely independent cash inflows (cash-generating units). If the reasons
for an impairment are no longer applicable, corresponding write-ups are recognised. Depending on the
type of the intangible asset, depreciation is shown under Costs of sales, Distribution and logistics
expenses, Research and development expenses or General and administrative expenses.
A European Community law concerning chemicals and the reliable handling of chemicals came into
force on June 1, 2007. This law governs the registration, evaluation, authorisation and restriction of
chemicals (REACH). REACH requires the registration of certain substances. The companies of the
CABB Group incur costs within the framework of this registration procedure. These costs are capitalised
as intangible assets in accordance with IAS 38 Intangible Assets, and are depreciated over their
estimated useful life of twelve years using the straight-line method.
Intangible assets are amortised using the straight-line method. The average periods of amortisation are
as follows:
Amortisation on intangible in years
assets

Capitalised REACH costs 12

Customer relations 5 - 20
Technology 5
Software 3

o) Government grants
Government grants related to the acquisition or construction of property, plant and equipment reduce
the acquisition or construction cost of the respective assets and are recognised in profit or loss as the
asset is depreciated or amortised. Other government grants or government assistance are recognised
immediately as other operating income or treated as deferred income and released over the underlying
period.

p) Property, plant and equipment

Property, plant and equipment is measured at historical cost of purchase or cost of production less
accumulated depreciation recognised over the standard useful life and eventually less accumulated
impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of
the items. The costs of production of an asset comprise the directly attributable costs as well as
reasonable amounts of material and production overheads. The revaluation method is not used.
Each item of property, plant and equipment with a significant purchase value in relation to the overall
value of the asset is depreciated separately. If a significant item of property, plant and equipment has a
useful life and a depreciation method which are identical to those applicable for another part of the same
asset, these parts are combined for the purpose of determining the depreciation cost.
Property, plant and equipment is depreciated using the straight-line method. Land is not depreciated.
The assets9 residual values and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period.

The average periods of depreciation are as follows:

Depreciation on property, plant and equipment in years

Buildings and improvements 12 - 40

Technical equipment, plant and machinery 5 - 15
IT and other equipment 3 - 15
Vehicles 5 - 10

12
Property, plant and equipment is reviewed for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable. Impairments are recognised
if the recoverable amount is lower than the carrying amount. The recoverable amount is the higher of
fair value less costs of disposal and the value in use. For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there are largely independent cash inflows (cash-generating
units). The assessment is made on the basis of the present value of the cash flows expected in the
future less the expected costs for removing an installation. Impairments are recognised in the amount
of the difference between the previous carrying amount and the discounted future cash flows. If the
reason for an impairment is no longer applicable, corresponding write-ups are recognised. Gains and
losses on disposals are determined by comparing the proceeds with the carrying amount and are
recognised within Earnings before interest and taxes (EBIT) in the consolidated statement of profit or
loss.

q) Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is,
or contains, a lease if the contract conveys the right to control the use of an identified asset for a period
of time in exchange for consideration. The Group recognises a right-of-use asset and a lease liability at
the lease commencement date. The right-of-use asset is initially measured at cost, which comprises
the initial amount of the lease liability adjusted for any lease payments made at of before the
commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and
remove the underlying asset or to restore the underlying asset or the site on which it is located, less any
lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line-
method from the commencement date to the earlier of the end of the useful life of the right-of-use asset
or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the
same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically
reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot
be readily determined, the Group9s incremental borrowing rate. Generally, the Group uses its
incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following: (a) fixed
payments, including in-substance fixed payments; (b) variable lease payments that depend on an index
or a rate, initially measured using the index or rate as at the commencement date; (c) amounts expected
to be payable under a residual value guarantee; and (d) the exercise price under a purchase option that
the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group
is reasonably certain to exercise an extension option, and penalties for early termination of a lease
unless the Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured
when there is a change in future lease payments arising from a change in an index or rate, if there is a
change in the Group9s estimate of the amount expected to be payable under a residual value guarantee,
or if the Group changes its assessment of whether it will exercise a purchase, extension or termination
option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the
right-of-use asset has been reduced to zero. From 1 January 2021, where the basis for determining
future lease payments changes as required by interest rate benchmark reform, the Group remeasures
the lease liability by discounting the revised lease payments using the revised discount rate that reflects
the change to an alternative benchmark interest rate.
Leases in which CABB is a lessee mainly relate to transportation and technical equipment as well as
land and buildings. The corresponding right-of-use assets are included within 8Property, plant and
equipment9 or 8Other intangible assets9 and the lease liabilities within 8Other (non-current/ current)
financial liabilities9 in the consolidated statement of financial position.

13
The Group has elected to not recognise right-of-use assets and lease liabilities for short-term leases
that have a lease term of 12 months or less. The Group has elected to not recognise right-of-use assets
and lease liabilities for low-value assets, and recognises the lease payments associated with these
leases as an expense on straight-line basis over the lease term.
Lease contracts in which CABB acts as a lessor are exclusively operating leases, as these contracts do
foresee the transfer of substantially all risks and rewards of utilising the underlying assets to the lessee.
The leased assets continue to be capitalised, and the lease payments received are recognised in
income on a straight-line basis over the lease term.

r) Financial instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity. Financial assets and financial liabilities are recognised in
the consolidated statement of financial position, when CABB becomes a party of a financial instrument.
Financial assets are derecognised when the rights to receive cash flows have expired or have been
transferred and the Group has transferred substantially all risks and rewards of ownership.
Financial assets comprise receivables, acquired equity and debt instruments, cash and cash
equivalents, and derivatives with positive fair values. Financial assets are recognised in the
consolidated statement of financial position when CABB becomes a party to a financial instrument.
Regular purchases and sales of financial assets are recognised on the trade-date 3 the date on which
the Group commits to purchase or sell the asset. The amount at which a financial asset is initially
recognised comprises its fair value and in most cases the transaction costs.
The classification and measurement of financial assets is based on the one hand on the cash flow
condition (the <solely payments of principle and interest= criterion), that is, the contractual cash flow
characteristics of an individual financial asset. On the other hand, it also depends on the business model
used for managing financial asset portfolios. Based on these two criteria, the following measurement
categories are applicable:
Financial assets recognised at fair value through profit or loss include all financial assets whose cash
flows are not solely payments of principal and interest in accordance with the cash flow condition
established in IFRS 9. At CABB, derivatives are allocated to this measurement category, for example.
CABB does not generally exercise the fair value option in IFRS 9, which permits the allocation of
financial instruments not to be measured at fair value through profit or loss on the basis of the cash flow
condition or the business model criterion to the above category under certain circumstances.
Financial assets measured at amortised cost include all assets with contractual terms that give rise to
cash flows on specific dates, provided that these cash flows are solely payments of principal and interest
on the principal amount outstanding in accordance with the cash flow conditions in IFRS 9, to the extent
that the asset is held with the intention to collect the expected contractual cash flows over its term. At
CABB, this measurement category includes trade accounts receivables that are not eligible for factoring,
as well as miscellaneous assets and certain securities.
A financial asset or financial liability is initially measured at fair value plus or minus, for an item not a
FVTPL, transactions costs that are directly attributable to is acquisition or issue. A trade receivable
without a significant financing component is initially measured at the transaction price.
Financial assets at amortised cost are subsequently measured amortised costs using the effective
interest method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on
derecognition is recognised in profit or loss.
Initial measurement of these assets is generally at fair value, which usually corresponds to the
transaction price at the time of acquisition. Subsequent measurement effects are recognized in income
using the effective interest method.
Impairments are recognised for expected credit losses in both initial and subsequent measurement,
even before the occurrence of any default event for financial assets measured at amortised costs and

14
contract assets. If the counterparty is considered as having defaulted, an individual valuation allowance
is generally recognised for the financial assets measured at amortised cost. In addition, a write-off is
written off when the Group has no reasonable expectations of recovering the financial asset in its
entirety of a proportion hereof. The extend of expected credit losses is determined based on the credit
risk of a financial asset, as well as any changes to this credit risk: If the credit risk of a financial asset
has increased significantly since initial recognition. If, however, the credit risk has not increased
significantly in this period, impairments are generally only recognised for the 12-month expected credit
losses. By contrast, under the simplified approach for determining expected credit losses permitted by
IFRS 9, impairments for receivables such as trade accounts receivable always cover the lifetime
expected credit losses of the receivable concerned.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than
30 days past due. At CABB, the credit risk of a financial asset is assessed using both internal information
and external rating information on the respective counterparts. A significant increase in the
counterparty9s credit risk is assumed if its rating is lowered by a certain number of notches. The
significance of the increase in the credit risk is not reviewed for trade accounts receivable. Furthermore,
it is generally assumed that the credit risk for a counterparty with a high credit rating will not have
increased significantly. Regional and, in certain circumstances, industry-specific factors and
expectations are taken into account when assessing the need for a valuation allowance as part of the
calculation of expected credit losses and individual valuation allowances. In addition, CABB uses
internal and external ratings and the assessments of credit insurers, when available. Individual valuation
allowances are also based on experience relating to customer solvency and customer-specific risks.
Factors such as credit insurance, which covers a portion of receivables measured at amortised costs,
are likewise considered when calculating valuation allowances. Bank guarantees and letters of credit
are used to an immaterial extent. The valuation allowances for receivables whose insurance includes a
deductible are not recognised in excess of the amount of the deductible. A decrease in valuation
allowances due, for example, to a reduction in the credit risk of a counterparty or an objective event
occurring after the valuation allowance is recorded in profit or loss.
At each reporting date, the Group assesses whether financial assets measured at amortised cost are
credit impaired. This is the case if one or more events that have an impact on the estimated future cash
flows of the financial asset have occurred. Evidence that a financial asset is credit-impaired includes
the following observable data: significant financial difficulty of the debtor, a breach of contract such a
default or being more than 90 days past due; if it is probable that the debtor will enter bankruptcy or
other financial reorganisation or the disappearance of an active market for a security because of
financial difficulties. Loss allowances are deducted from the gross carrying amount of the assets. The
gross carrying amount of a financial asset is written off when the Group has no reasonable expectations
of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Group
has a policy of writing off the gross carrying amount when the financial asset is 180 days past due based
on historical experience of recoveries of similar assets. The Group expects no significant recovery from
the amount written off. However, financial assets that are written off could still be subject to enforcement
activities in order to comply with the Group9s procedures for recovery of amounts due.
Financial assets are classified based on the group`s business model for managing the financial assets
and on their contractual cash flow characteristics. The carrying amounts of the trade receivables are
assumed to equal their fair value due to the short maturities of these instruments. Due to the short
maturity of these receivables, the transaction price represents their fair value. Trade receivables sold
under the securitisation programme, as well as the related liabilities are recognized to the extent of the
credit risk retained (continuing involvement).
Financial assets measured at fair value through other comprehensive income include all assets with
contractual terms that give rise to cash flows on specific dates, which are solely payments of principal
and interest on the principal amount outstanding in accordance with the cash flow condition in IFRS 9,
to the extent that the asset is not just held with the intention of collecting the expected contractual cash
flows of its term, but also generating cash flows from the sale of a portfolio. At CABB the eligible trade
receivables for factoring fulfil these criteria.

15
Assets measured at fair value through other comprehensive income are initially measured at fair value,
which usually corresponds to the nominal value of the securities, allocated to its category at the time of
acquisition. Subsequent measurement is likewise at fair value. Changes in the time value are
recognised in other comprehensive income and the delta reclassified to the statement of income when
the asset is disposed of.
Impairments on financial assets measured at fair value through other comprehensive income are
calculated in the same way as impairments on financial assets measured at amortised cost and
recognised in the consolidated statement of profit or loss.
The following measurement categories are used for financial liabilities:
Financial liabilities that are measured at amortised cost generally include all financial liabilities, provided
these do not represent derivatives. They are generally measured at fair value at the time of initial
recognition, which usually corresponds to the value of the consideration received. Subsequent
measurement is recognised in profit or loss at amortised cost using the effective interest method. At
CABB, for example, bonds and liabilities to banks reported under financial liabilities are measured at
amortised cost.
Financial liabilities recognised at fair value through profit or loss contain derivative financial liabilities.
These are likewise measured at the value of initial recognition. The latter also represents the
measurement basis for these liabilities in subsequent measurement. The option to subsequently
measure financial liabilities at fair value is not exercised.
Financial liabilities are derecognised when the contractual obligation is discharged, cancelled or has
expired.
Derivative financial instruments can be embedded within other contracts, creating a hybrid financial
instrument. If IFRS requires separation, the embedded derivative is accounted for separately from its
host contract and measured at fair value. 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 form prices)
" Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs)
CABB uses the following valuation techniques for determining the fair values of financial assets and
financial liabilities:
Discounted cash flows (i.e. Derivatives (interest rate swaps)): financial instruments that are not traded
in an active market (for example: derivatives/ interest rate swaps) are valuated considering the present
value of expected future cash flows based on observable yield curves.
This valuation technique maximises the use of observable market data where it is available and relies
as little as possible on entity specific estimates. If all significant inputs required to determine the fair
value of a financial instrument are observable, the instrument is included in level 2.
If the inputs used to measure the fair value of an asset or a liability might be categorised in different
levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the
same level of the fair value hierarchy as the lowest level input that is significant to the entire
measurement.
The Group recognises transfers between levels of the fair value hierarchy at the end of the reporting
period during which the change has occurred. There were no transfers between the different levels of
fair value hierarchies in the financial reporting period ended December 31, 2023, and in the financial
nine-month period ended September 30, 2024.

16
Financial assets and financial liabilities are offset, and the net amount presented in the statement of
financial position when, and only when the Group currently has a legally enforceable right to set-off the
amounts and it intends either to settle them on a net basis or to realise the asset and settle the liability
simultaneously. As of December 31, 2023, and September 30, 2024, such contracts did not exist.

s) Taxes
The current taxes on income are calculated using the current or substantively enacted tax rate in relation
to the taxable income of the individual group companies. Management establishes provisions in
situations in which applicable tax regulation is subject to interpretation as appropriate on the basis of
amounts expected to be paid to the tax authorities.
The deferred taxes on income are accrued on the basis of the current or substantively enacted local tax
rate expected to apply when the related deferred income tax asset is realised or the deferred income
tax liability is settled. Deferred tax is calculated in accordance with the liability method in relation to all
temporary differences between the uniform measurement in the Group of assets and liabilities and the
tax measurement of assets and liabilities, except if differences arise from the initial recognition of
goodwill. Deferred income tax assets are recognised on deductible temporary differences arising from
investments in subsidiaries only to the extent that it is probable the temporary difference will reverse in
the foreseeable future and there is sufficient taxable profit available against which the temporary
difference can be utilised.
A combined tax rate of 24.94% is used in Luxembourg. Country-specific tax rates are used for the other
companies.
Deferred tax assets resulting from losses carried forward and temporary differences are only recognised
if it is probable that these can be offset against future taxable profits.
Current and deferred taxes are recognised as tax expenses, unless they relate to items which have
been recognised directly as other comprehensive income.
Deferred tax assets and deferred tax liabilities are offset only if they have the same maturity, if there is
a legally enforceable right to offset current tax assets against current tax liabilities and if they are due
in relation to the same tax authority by the same taxable entity or different taxable entities where there
is an intention to settle the balances on a net basis.

t) Inventories
Inventories are carried at cost of purchase or cost of production. Cost is determined using moving
average value. If net realisable values are lower, inventories are recognised at these lower values. The
net realisable value is equivalent to the sales proceeds attainable in the normal course of business, less
the directly attributable costs up to the point at which the inventories are sold. Costs of production
comprise the directly attributable costs as well as reasonable amounts of material and production
overheads assuming a normal level of utilisation of the relevant production facilities to the extent that
they are incurred in connection with the manufacturing process. Costs of the Company9s pension
scheme, for social facilities of the operation and voluntary social benefits of the Company as well as
costs of administration are also taken into consideration to the extent that they are attributable to
manufacturing. Financing costs are not included in costs of production.
Raw materials and supplies, including technical material and packagings, are measured at the lower of
cost of purchase and net realisable value. A write-down is recognised to reduce the value of such raw
materials and supplies to a figure which is lower than the cost of purchase only if the net realisable
value of the finished products which include the raw materials and supplies is probably lower than the
cost of production of the finished products.

u) Provisions for pensions and similar obligations

The liability recognised in the balance sheet in respect of defined benefit pension plans is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets.

17
Provisions for pensions are based on actuarial computations made according to the projected unit credit
method, which applies, among others, the following valuation parameters: future developments in
compensation, pensions and inflation, the expected performance of plan assets, employee turnover and
the life expectancy of beneficiaries. The resulting obligations are discounted by reference to market
yields at the balance sheet date on high quality corporate fixed rate bonds with an AA rating that are
denominated in the currency in which the benefits will be paid, and that have terms to maturity
approximating to the terms of the related pension obligation.
Actuarial gains and losses resulting from periodic recalculation are recognised in other comprehensive
income. They result from the variance between the actual development in pension obligations and
pension assets and the assumptions made at the beginning of the year as well as the updating of
actuarial assumptions. The calculation of pension provisions is based on actuarial reports.
The current service costs which are associated with the work carried out in the reporting period are
shown as personnel expenses in the costs of those functions in which the employees are operating,
except when included in the cost of an asset. Past service costs are recognised immediately in the
consolidated statement of profit or loss.
The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets both at the beginning of the year. This cost is included in
financial expenses in the consolidated statement of profit or loss.
For defined contribution plans, the group pays contributions to publicly or privately administered pension
insurance plans on a mandatory, contractual or voluntary basis. The group has no further payment
obligations once the contributions have been paid. The contributions are recognised as employee
benefit expense when they are due.

v) Other provisions
Other provisions are recognised if a present legal or constructive obligation exists as a result of a past
event, an outflow of economic resources is probable and the corresponding amount can be reliably
estimated. Provisions are recognised to the extent of the best estimate of the expenditure required to
settle the present obligation.
Provisions are recognised for environmental protection measures and risks if, as a result of a past event,
there is a current legal or constructive obligation to carry out measures.
The probable settlement amount of non-current provisions is discounted, if the discounting effect is of
a material nature. In this case, the probable settlement amount is recognised with its present value. The
change of the discounted amount resulting from the passage of time and the effect deriving from any
change in the discount rate are recognised in the selected consolidated interim statement of profit or
loss and other comprehensive income and classified as financial income or expense.
Provisions for service anniversary payments are mainly calculated in accordance with actuarial
principles. For semi-retirement agreements which have been concluded, the wage and salary payments
to be made during the passive phase of the semi-retirement arrangement are accumulated in
instalments, approved supplemental payments are accrued in instalments until the end of the exemption
phase at the latest.
Termination benefits are payable when employment is terminated by the Group before the normal
retirement date, or whenever an employee accepts voluntary redundancy in exchange for these
benefits. The Group recognised termination benefits at the earlier of the following dates: (a) when the
Group can no longer withdraw the offer of those benefits; and (b) when the entity recognises costs for
a restructuring that is within the scope of IAS 37 and involves the payment of termination benefits.

w) Financial risk management

CABB Group is exposed to numerous financial risks within its business activities. These risks comprise
market, credit, interest rate and exchange rate risks.

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x) Estimates and assumptions
The process of preparing selected consolidated interim financial statements in accordance with the
IFRS requires assessments, assumptions and estimates with regard to the application of accounting
policies, and also requires management to make assumptions regarding future developments. These
assessments, assumptions and estimates are based on experience and other factors which are
considered to be reasonable under the given circumstances. Actual outcomes and results within the
next financial periods may differ materially from current expectations. Hence, a change in the underlying
estimates and assumptions could require a material adjustment to the carrying amount of the affected
asset or liability.
Therefore, estimates and assumptions are continuosly reviewed. Changes in accounting-relevant
estimates are recognised in the reporting period in which the assessment is revised, and also in future
reporting periods if these future reporting periods are affected by the revised estimates.
In particular, the following items in the consolidated statement of financial position have been affected
by the use of estimates:

Goodwill
Goodwill resulting from the capital consolidation is recognised in the selected consolidated interim
financial statements for the nine-month period ended September 30, 2024. Goodwill has to be tested
for impairment at least once every year. For the purpose of the impairment test, long-term cash flow
forecasts have to be made for the cash-generating units in the context of the development of the Group
and also in the context of the development of the overall economy. Estimates of cost of capital are used
to determine the pre-tax discount rate for discounting the cash flows. As these estimates are
continuously reviewed, potentially possible changes might require an adjustment to the carrying amount
of the goodwill.

Property, plant and equipment and intangible assets

In the course of the purchase price allocation following the business combination with CABB Group,
items of property, plant and equipment and intangible assets were measured at fair value. For this
valuation an external expert was engaged. Management determined the appropriateness of the
valuation techniques and inputs for fair value measurement used by the expert.
The Group reviews the estimated useful lives of property, plant and equipment and intangible assets at
the end of each reporting period. These assets are tested once a year for indications of impairments. If
there are any such indications, estimates of the expected future cash flows from the utilisation and
potential disposal of these assets are made for assessing the impairment. The actual cash flows may
differ appreciably from the discounted future cash flows which are based on these estimates. Factors
such as a change in the planned utilisation of buildings, machinery and equipment, technical aging or
utilisation levels of installations which are lower than original forecasts may reduce the useful service
life or may result in an impairment.

Pension provisions
The valuation of provisions for pensions and similar obligations is influenced by assumptions regarding
the future development of wages and salaries or pensions as well as discount rates.
In Germany, retirement benefits are provided via the pension fund of the employees of the Hoechst
Group VVaG. The Swiss employees of the Group are insured with the pension fund (Pensionskasse 3
PK) of CABB AG, Pratteln, Switzerland. The retirement benefits of the Finnish employees are processed
via the pension insurance company Ilmarinen Mutual Pension Insurance Company, Ilmarinen, Finland.
The calculations of the liabilities recognised regarding these facilities are based on statistical and
actuarial calculations of the actuaries. In particular, the present value of the defined-benefit obligation
depends on assumptions such as the discount rate and the pension growth rate used for calculating the
present value of the future pension obligations. Future salary increases and increases in the other
benefits to employees also influence the calculation of the present value of the future pension

19
obligations. In addition, the independent actuaries engaged by the Group also use statistical data such
as probability of departure and life expectancy of the insured parties for their assumptions. The discount
rate for the actuarial calcuations of the German and Finnish defined-benefit obligations was determined
by applying the Mercer Pension Yield Curve Approach (MYC). The data and methodology used to create
the MYC is reviewed periodically by Mercer to ensure consistency and improved estimates.

Environmental provisions
The provision recognised for environmental protection measures represents the best estimate of the
expected outflow of funds. The provision relates to expected costs of rehabilitating toxic waste sites in
Switzerland as well as waste disposal at the production location in Kokkola. The future development of
environmental costs depends on many factors including the rehabilitation method to be used, the extent
of the rehabilitation measures as well as the shares attributable to the Group and to external parties.
Due to uncertainties related to the prediction of environmental rehabilitation costs, it is possible that
additional costs may occur which exceed the recognised provision. Based on the latest available
information, management considers that the provision as of December 31, 2023, and September 30,
2024 are adequate.

(5) Scope of consolidation

Compared to the Group9s last annual financial statements the scope of consolidation did not change
and comprises Monitchem Holdco 2 S.A., with registered office in Luxembourg, as well as all domestic
and international subsidiaries. Monitchem Holdco 2 S.A. directly or indirectly owns a majority of voting
rights in these companies. There are no joint ventures or associated companies.
In addition to Monitchem Holdco 2 S.A. as the parent company, the selected consolidated interim
financial statements as of September 30, 2024 include three Luxembourg and thirteen non-Luxembourg
companies in which Monitchem Holdco 2 S.A. exercises control and is therefore exposed to, or has
rights to, variable returns from its involvement with the entities and has the ability to affect those returns
through its power over the aforementioned entities.

(6) Other disclosures

Securitisation programme 3 Involvement with unconsolidated structured entities

Since June 2020, the Group sells without recourse a portion of its trade receivables to a structured
entity under an asset-backed securitisation programme. The financing volume is committed to a
maximum amount of kEUR 50,000 (December 31, 2023: kEUR 50,000). The structured entity is not
controlled by CABB and therefore not consolidated by the Group.
The special purpose entity obtains its funding primarily from capital markets through the issuance of
commercial papers and has mandated the Group to service the receivables in return for an at arm9s-
length fee. The structured entity has the contractual right to terminate this service agreement and may
appoint as substitute servicer any other person. The Group transfers the contractual rights to receive
the cash flows of the trade receivables on a revolving basis at their nominal value less a retained reserve
in exchange for cash. The net amount is presented as part of other financial assets and represents the
Group9s right to receive this amount once the trade receivables sold have been settled by the customers.
To the extent to which the credit risk is retained by the Group (continuing involvement), sold trade
receivables and corresponding other financial liabilities are recognised.
The carrying amount of trade receivables transferred under the securitisation programme amounted to
kEUR 38,585 as of September 30, 2024 (December 31, 2023: kEUR 52,245), of which kEUR 37,708
have been derecognised (December 31, 2023: kEUR 51,097); and kEUR 5,120 (December 31, 2023:
kEUR 8,232), representing the retained reserve, is presented as part of other current financial
receivables. The carrying amount of trade receivables (classified as trade receivables) and the other

20
financial liability resulting from the continuing involvement amounted to kEUR 876 as of September 30,
2024 (December 31, 2023: kEUR 1,148).

Successful completion of the refinancing process

On April 28, 2023, the Group successfully completed the refinancing process. New senior secured notes
in a total aggregate nominal amount of kEUR 670,000 were issued by Monitchem HoldCo 3 S.A., and
the Group entered into a new senior secured revolving credit facility in an amount of kEUR 110,000
(maturity: October 28, 2027). The proceeds from the issuance of the Notes, together with cash on the
balance sheet, were used to redeem the existing notes in full (including paying the accrued interest and
the applicable redemption premium) and to pay related fees and expenses.

The following table summarises the nominal and effective interest rate, the book and market value of
the Notes as of September 30, 2024 by category:
Principal Market value
amounts as of as of
Nominal Effective Sept 30, 2024 Sept 30, 2024
Security Description interest rate interest rate Maturity date in kEUR in kEUR
Floating Rate Senior Secured Notes 3M EURIBOR 9.660% p.a. May 1, 2028 250,000 250,955
plus 525 bps
Fixed Rate Senior Secured Notes 8.750% p.a. 9.303% p.a. May 1, 2028 420,000 421,604
Total 670,000 672,559
Accrued financing costs -15,911
Amortised value of the embedded derivatives 5,572
Notes (non-current) 659,661
Accumulated interest payable on notes (current) 11,791
Total Notes 671,452

On the Fixed Rate Senior Secured Notes, interest is payable semianually in arrears on June 15 and
December 15 in each year, commencing on December 15, 2023. On the Floating Rate Senior Secured
Notes, the interest is payable quarterly in arrears on March 15, June 15, September 15 and December
15 of each year, commencing on September 15, 2023.
The Group may redeem all or, from time to time, part of the Fixed Rate Senior Secured Notes due 2028
and the Floating Rate Senior Secured Notes due 2028 at any time. Such early redemption options are
reported as embedded derivatives. Upon certain events defined as constituting a change of control the
bond issuers are required to make an offer to purchase the outstanding notes at a purchase price equal
to 101% of their principal amount plus accrued and unpaid interest.
The notes agreement defines certain covenants which, among other things, restrict the ability of the
bond issuers and their subsidiaries to incur or guarantee additional indebtedness, pay dividends,
redeem capital stock or make certain investments, transfer or sell certain assets, merge or consolidate
with other entities or enter into certain transactions with affiliates. Certain covenants will be suspended
if the relevant notes obtain and maintain an investment-grade rating.
The notes are recognised at their aggregate principal amounts plus accrued and unpaid interest.
Transaction costs, which are amortised over the term of the notes, are deducted in an amount of
kEUR 15,911 as of September 30, 2024 (December 31, 2023: kEUR 18,672).
The market value of the Notes and the market value of embedded derivatives in the indenture are
categorised as level 2 within the fair value hierarchy.

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Docusign Envelope ID: 98EFB6DB-AAFC-4F41-9D89-244EF5D413F2

(7) Events after the balance sheet date

CFO Change at CABB Group: Marcus Mayer to become new Chief Financial Officer
On October 28, 2024, CABB Group announced that CABB Group is getting a new Chief Financial Officer
(CFO) starting mid-December. Marcus Mayer will succeed Markus Schürholz, who is leaving the
company at his own request at the end of 2024 after nearly six years to pursue a new professional
challenge.
There were no further major events after the balance sheet date up to November 25, 2024 (the date
when the selected consolidated interim financial statements were authorised for issue by the Board of
Directors).

Luxembourg, November 25, 2024

Monitchem Holdco 2 S.A.

Management

Cédric Pedoni Thomas Lafrance

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