Annual
Re
rt
2021
Together towards
a sustainable future.
1Annual Report 2021 | Introduction
1. INTRO
Dear stakeholders,
We are at the end of March 2022 when I write this foreword
to Ekopak’s Annual Report 2021. It seems a bit strange
to look back at 2021 at a time that 2022 has already
progressed so far. Moreover, my focus always tends to be
more on today and to making plans for the future. Yet it is
useful - and even necessary - to look back every now and
then. Reflecting on the past enables me to look towards
the future with greater insight. The editing of this annual
report offers a unique opportunity to this end.
In 2021, we have taken a number of important decisions.
We have chosen to embark on certain roads that will
determine the future of Ekopak. Whereas we were in 2021
intensively focused on implementing those decisions to
the best of our ability, I see today primarily the broader
strategic context. I want to share that perspective with you.
2021: strong
performance and
strategic decisions
In 2021, we have
taken a number of
important decisions
that will determine
the future of Ekopak.
Pieter Loose — CEO
2Annual Report 2021 | Introduction
The IPO in March 2021, for example, was much more about
than just raising funds. This step also indicates that Ekopak
resolutely embraces a growth strategy. The IPO also
implies that Ekopak chooses to report transparently and
on a regular basis about the progress in implementing its
growth strategy.
In April 2021 Ekopak signed the principles of the UN
Global Compact, which has an enormous scope. Ekopak
hereby commits itself to fully integrate sustainability into
its strategy and its activities. Ekopak’s growth strategy
is a sustainable growth strategy. In order to determine
the sustainability of our activities, we adopt a validated
methodology. In the future we will report on our progress
in that area on an annual basis.
The foundation of Ekopak France does not only enable
Ekopak to better respond to opportunities on the French
market. It is also the very first step in our strategy to achieve
sustainable growth through geographical expansion.
The introduction of the Water-as-a-Service business
model was already mentioned at the IPO. Our conviction
that we can really make a difference with the WaaS model
has grown tremendously, as we have clearly indicated
this in our half-year report of September 2021. The triple
digit growth of the WaaS-revenue in 2021 highlights the
potential for this business.
In short, in 2021 we embarked on a number of paths that
are of great strategic importance. I am amazed at what
we have been able to achieve in 2021. What a journey
we have already made! And the best is yet to come!
2022 has got off to a strong start: as the driving force in
the Waterkracht joint venture, we are going to put our
shoulders to the wheel in this project to recycle 20 billion
litres of Antwerp waste water into process water for the
Port of Antwerp every year from 2025 onwards. The drive
that sports journalists refer to when writing about the
Quick Step-Alpha Vinyl cycling team – of which we are a
co-sponsor – is certainly also vibrant within Ekopak. We
too are passionate to push our limits, to achieve success
and to further strengthen our team.
I am very grateful to everyone who has contributed to
these achievements and to everyone who has honoured
us by putting their trust in us. We will continue to count on
you, just as you can count on us.
Pieter Loose
What a journey we
have made in 2021.
And the best is yet to
come! 2022 has
certainly got off to
a strong start.
Pieter Loose — CEO
3Annual Report 2021 | Interview
2. INTERVIEW
If you can have a big impact,
you should go for it
Even though finding a timeslot for this in the diaries of both Pieter Bourgeois (Chairman) and
Pieter Loose (CEO) was not easy, they were glad to take the time for this interview. Once the
conversation about Ekopak gets going, they are hard to keep up with because it’s obviously an
important part of their lives. For Ekopak, no effort is too much for them. For Ekopak they dream
up a bright future.
What prompted you to go public,
with the IPO?
Pieter Loose. Actually, everything started a year earlier,
when I met Marc Coucke. He was immediately enthusiastic
about what we do at Ekopak. He is very conscious
about the water problems in the world and he saw that
Ekopak could make a significant contribution to the
solution. To cut a long story short, Marc took an important
participation with his investment company Alychlo. That’s
how the ball got rolling.
Pieter Bourgeois. As an
investment manager at Alychlo,
I became closely involved with
Ekopak. I saw immediately that
Ekopak is operating in an area
that will become increasingly
relevant in the future, but that
is today perhaps still a bit
overlooked when talking about
the environment and climate.
There are still enormous growth
opportunities for Ekopak, and
by growing, Ekopak can also
make a substantial contribution
to solving the water problem.
Pieter Loose. At that time, I had
already been on quite a growth
trajectory with Ekopak. But I
realized that I could use some
help in order to grow further. I
thought that with the help
of Alychlo I would be able to get a long way but Pieter
Bourgeois opened up a whole new dimension to me.
Pieter Bourgeois. If Pieter really wants to make a difference
to the world with Ekopak, Alychlo’s contribution alone is
not enough - perhaps to achieve the kind of growth he
had in mind at the outset, but not to achieve the growth
needed to make a real difference to the global challenge
of water supply. That is a totally different dimension. This is
how we came up with the plan to go public and thus gain
structural access to the public capital markets. The IPO
was a real success. It was not an end in itself, but rather a
means to realize our dreams. With the IPO, Ekopak joined
the league of large corporations. Different standards
apply there: performance management, reporting,
corporate governance, etc. As a young company we still
have some way to go, but that doesn’t deter us.
The IPO apparently
gave Ekopak wings,
because a lot has
happened since
then. What do you
consider Ekopak’s
most important
achievements in 2021?
Pieter Loose. Every day brings
something special at Ekopak;
that is what makes it so
attractive here. But if I have
to make a business-driven
selection, I come to five major
events, of which the IPO was
already mentioned. Actually,
it’s more about decisions and
strategies rather than events.
We have resolutely opted for
a growth strategy, and in the
current phase this growth will be
primarily achieved in the market
where we are already operational. In addition, we have
decided to achieve our growth also through geographical
expansion. The establishment of Ekopak France is a very
first step in this direction. Importantly, we have also decided
that we will integrate the concept of sustainability in our
organization; our growth must therefore also be sustainable.
But, our growth should also be profitable. That is why we have
initiated the strategic switch to the WaaS business
model.
“The key points for Ekopak:
- Have access to the resources to
realize our business plan
- Grow in the markets in which we
are already active
- Grow through geographical expansion
- Sustainable entrepreneurship
- Focus on the WaaS business model
- Develop new concepts (e.g. Waterkracht)”
4Annual Report 2021 | Interview
Pieter Bourgeois. These are indeed the five key strategies
for Ekopak: (1) securing access to the capital markets in
order to have the necessary resources at our disposal for
the implementation of our business plan, (2) growing our
business in the markets in which we are already active, (3)
growing through geographical expansion, (4) focusing on
sustainability, (5) fully playing the card of the WaaS busi
-
ness model. Actually, I would like to add a sixth strategy:
develop new concepts, for which the Waterkracht joint
venture in the port of Antwerp is a good example.
From your answer I
understand that for
Ekopak sustainability
is more than just
another project?
Pieter Loose. That’s right. At
Ekopak, we have always been
very conscious of our impact
on the world. Sustainability is
the balancing act between
the social and environmental
needs of our stakeholders on
the one hand and the growth
of our business on the other. This
approach is the cornerstone of
our sustainability strategy, but
also of our entire long-term
business strategy.
Pieter Bourgeois. Sustainability
is simply also a matter of
common business sense. As a
company that offers solutions
to water supply issues – and thus enables its customers to
operate in a more sustainable way – it is self-understood
that Ekopak wants to be a sustainable company itself. That
is why we signed the principles of the UN Global Compact
in April 2021. Together with the specialized agency Encon,
we have already had several workshops to integrate
sustainability into our strategy and our activities. Joining UN
Global Compact also implies our commitment to adopting
a validated methodology to set our sustainability goals, to
measure our progress in meeting them and to report on
the progress on an annual basis. This annual report further
explains this methodology and you can already track our
progress in that regard. Our first sustainability report will be
published in the second quarter of 2022. Starting next year,
you may expect an integrated annual report from Ekopak,
in which sustainability is entirely embedded.
Obviously there are a lot of things to do
at Ekopak. How are you tackling all that?
Pieter Bourgeois. Our CEO’s energy and drive are
impressive, and he also manages to take his entire team
along with him. However, this will not be enough to meet
the challenges and opportunities that lie ahead. It is the
task of the Board of Directors to support and coach the
management. We have carefully analyzed this challenge.
Ekopak’s growth strategy must not only be sustainable,
but also manageable. You can do two things to achieve
manageable growth. Either you remove a number of things
from the priority list, or you strengthen the organization.
Considering the wave on which Ekopak is currently surfing,
the first option would be a missed opportunity. So we have
deliberately chosen to also provide the necessary resources
to build Ekopak’s organization, systems, processes and
procedures for the future.
Pieter Loose. I really appreciate
the role that our Board of
Directors has played in this
respect. Together, we have
opted to start building systems
and processes that already
anticipate Ekopak’s expected
future growth. This option goes
with a certain price tag, but
in the long term it is the only
solution. We do not want to
muddle along in the margins,
but we resolutely choose to
build a solid structure. Just as
we endorse the principles of
the UN Global Compact for
our sustainability strategy like
many blue chip companies
do - we are also building an
organization that can emulate
these large companies. The
Corporate department will be
further expanded. We have
already taken this into account in the plans for our new
headquarters, which we are going to build on an industrial
estate alongside the E17 freeway near Deinze. This building,
which we plan to bring to use in the spring of 2021, will be a
textbook example of sustainability.
So, Ekopak will be working at several
construction sites this year?
Pieter Bourgeois. Indeed, we also hope to be able to
start the construction of the water treatment plant for the
Waterkracht joint venture in the port of Antwerp very soon.
Ekopak’s expertise mainly concerns decentralized circular
water supply. But with Waterkracht this circular water
supply will become more centralized, since we will supply
the purified water from a central installation in the port to
several customers in the port area. As of 2025, Waterkracht
aims to purify 20 billion liters of water a year for circular use.
If you can have that kind of impact in your area of expertise,
then you should go for it.
Pieter Loose. Our stakeholders can count on us.
Ekopak’s growth strategy
must be sustainable, but also
manageable. That is why
we are already building an
organizational structure that is
anticipated for future growth.
Pieter Bourgeois — Chairman
5Annual Report 2021 | Highlights
Key Figures 2021
3.1. HIGHLIGHTS 2021
Full-time
vs. Part-time
89% - 11%
Female
vs. Male
17% - 83%
Management
33% - 67%
Board of
Directors
43% - 57%
99% - 1%
Fixed-term vs.
indefinite duration
Composition
Consolidated
turnover
11.3
9. 5
10.2
6.6
202120202018 2019
Numbers in
Million €
Revenue 2021
Geographic segmentation
12%88%
BeLux Other countries
58.6 million
Equity
31 Dec 2021
6Annual Report 2021 | Highlights
In 000 €
1st Half
2021
1st Half
2020
1H2021/
1H2020
2nd Half
2021
2nd Half
2020
2H2021/
2H2020
Full Year
2021
Full Year
2020
FY2021/
FY2020
FY2021 FY2020
Revenue
WaaS segment 281 224 25% 924 241 283% 1,205 465 159%
non-WaaS segment 4,207 5,124 -18% 5,839 3,890 50% 10,046 9,0 1 4 11%
Total segments 4,488 5,348 -16% 6,763 4,131 64% 11,251 9,479 19%
EBITDA
WaaS segment 199 157 27% 640 156 310% 839 313 168% 69.6% 67.3%
non-WaaS segment 502 218 130% 404 119 239% 906 337 169% 9.0% 3.7%
Total segments 701 375 87% 1.044 275 280% 1,745 650 168% 15.5% 6.9%
As a %
of revenue
2020 2021
1000
1400
1200
800
600
400
200
0
Evolution of Waas
Revenue 2020-2021
10000
9000
8000
7000
6000
5000
4000
3000
2000
1000
0
2020 2021
Evolution of non-Waas
Revenue 2020-2021
20
30
25
15
10
5
0
2020 2021
Undiscounted total
minimum contracted revenue
EURO
17.8
million
EURO
28.6
million
EUR
11,251
(000)
EUR
1,745
(000)
Revenue
FY2021
EBITDA FY2021
(WaaS and non-WaaS Segments)
1,20510,046 839906
Non-
Non-
Evolution
headcount
Total
32.3 46.3
7. 59
0.5
54.4
39 63
14
2
79
BE
FR
FTE Headcount
2020 2021 2020 2021
3.1. HIGHLIGHTS 2021
7Annual Report 2021 | Highlights
Operational
highlights 2021
In 2021, Ekopak initiated its strategic transition to the Water-as-a-Service (WaaS) business
model. This strategy was inspired by Ekopak’s intention to optimize the product mix in favor of
those activities that offers the highest growth opportunities while generating the best margins
and providing a high degree of predictability.
This strategic transition got off to a flying start in 2021. The
WaaS business now represents 11% of Revenue but contributes
48% to the EBITDA for both business segments in 2021.
Ekopak’s overall revenue witnessed a double digit growth
(+19%) in 2021 compared to 2020. While the transition to the
WaaS business model immediately picked up speed, the
non-Waas business continued to grow as well.
The EBITDA of the combined WaaS/non-Waas business
represents 15.5% margin on EUR 11.3 million revenue – more
than double of the 6.9% margin of 2020.
One-off expenses of EUR 0.6 million and corporate costs lead
to an Operating Result of EUR -0.6 million and a Net Result of
EUR -0.7 million.
WaaS business shifted into higher gear
While Ekopak’s WaaS business revenue already witnessed
a remarkable growth in the first six months of 2021, it more
than trippled in the second half of 2021: from EUR 0.3
million in 1H2021 to EUR 0.9 million in 2H2021. This results
in a revenue of EUR 1.2 million for the full year – i.e. a 159%
growth compared to 2020.
The signed WaaS contracts as at 31 December 2021
represent an undiscounted Total Contracted Value of
EUR 28.6 million (billable over the period 2020-2034).
This compares to an amount of EUR 17.8 million as at 31
December 2020 (billable over the period 2020-2031). The
61% increase demonstrates the success of the strategic
transition to the WaaS business model.
The evolution of the EBITDA from the WaaS business kept
pace with the revenue growth acceleration from 1H2021 to
2H2021, resulting in EUR 0.8 million for the full year 2021 and
representing a solid 70% margin on revenue, i.e. above the
67% margin applied in our business plan.
The 2021 performance of this business segment
underscores Ekopak’s key strategy to strengthen the
WaaS pipeline as the basis for growth in recurring annual
revenue, earnings and cash flows.
Solid non-WaaS business performance
The 18% decrease of the revenue from Ekopak’s non-WaaS
business in the first half of 2021 has been more than offset by
the impressive 50% revenue growth in the second half – thus
resulting in a 11% growth for the full year 2021. This implies that
Ekopak’s strategic transition from non-WaaS to WaaS can
involve business growth in both segments at the same time.
The EBITDA of EUR 0.9 million for the non-WaaS business
over the full year 2021 represents a margin of 9% of the
corresponding revenue: a solid performance!
The future perspective for Ekopak’s non-WaaS business is
illustrated amongst others by the contract with Vynova, for
which the revenue is expected to be entirely recognized
in the financial statements by the fourth quarter of 2022,
i.e. upon completion of the water treatment installation at
the site in Tessenderlo, Belgium. Vynova is an international
chemical company active in the production of PVC and
chlor-alkali products, which are used, among others, in
the construction, medical, food and pharmaceutical
industries.
3.2. OPERATIONAL HIGHLIGHTS 2021
8
Balance sheet situation illustrates
careful management of resources
The proceeds of the successful IPO lead to a significant
strengthening of Equity on the balance sheet at 31 December
2021. Equity represents EUR 58.6 million on a balance sheet
total of EUR 67.4 million. The appropriation of Equity is
carefully considered, as indicated by the fact that between
30 June 2021 and 31 December 2021 Equity has only slightly
evolved from EUR 59.1 million to EUR 58.6 million.
Total liabilities at 31 December 2021 amount to EUR 8.8 million
versus EUR 6.9 million at 31 December 2020. This increase is
mainly related to Trade, tax and other payables, reflecting
the growth of Ekopak’s business.
The growing business is also reflected in the evolution of
the Assets. The EUR 4.3 million increase of the amount for
Property, plant and equipment (between 30 June and 31
December 2021) mainly refers to water treatment installations
for the WaaS operations (EUR 3.7 million). The increase of
the business size of Ekopak also involves an increase of the
amounts for Inventories and Trade receivables.
Cash and cash equivalents and other current assets evolved
from EUR 50.0 million at 30 June 2021 to EUR 42.1 million at
31 December 2021. In addition to the costs associated with
the IPO, the acquisition of iServ also led to a reduction in
the cash position. Moreover, several installations for WaaS-
projects have been paid in cash in 2021, although a
sale-and-lease-back approach for large WaaS project still
remains under review for the future. Again, this illustrates that
Ekopak’s cash resources are well managed.
Annual Report 2021 | Highlights
Preparing for future growth
In April 2021, Ekopak has acquired iSERV with the aim to
strengthen its platform in anticipation of future growth.
iSERV is now integrated in the organization as the Water
Treatment service provider for both Ekopak’s non-WaaS
customers and its WaaS operations.
Along with the strategic transition from the non-WaaS
to WaaS business model, Ekopak embarked on its
geographic expansion with the creation of its first foreign
subsidiary – a pilot project for more comprehensive
mid-term plan.
In August 2021, Ekopak created its first ever foreign
subsidiary, Ekopak France, and opened branches in
Rouen and Lyon. From this base, Ekopak can maximally
benefit from business opportunities in the major French
water treatment market, the first market abroad that will
now be intensively explored by the company. Revenue
beyond Ekopak’s traditional home markets Belgium
and Luxembourg, grew 87% and represents 12% of total
Revenue in 2021.
Fully aware of the challenge to adequately manage the
numerous business opportunities that present themselves,
Ekopak has spent EUR 0.8 million (recognized in the
Corporate reporting segment) for setting-up adequate
systems and procedures, anticipating the continued
future growth of the group as well as reflecting Ekopak’s
commitment to live up to its sustainability strategy by
initiating the implementation of the standards of the
Global Reporting Initiative.
3.2. OPERATIONAL HIGHLIGHTS 2021
9Annual Report 2021 | Highlights
Business
Outlook 2022
The proceeds from the IPO are managed with consideration
and enable Ekopak to further fund its growth strategy. In
2022 Ekopak will definitely continue to put these resources to
work in order to create shareholder value.
Since revenue from WaaS contracts is only recognised as
of the moment that the installation becomes operational,
a substantial part of WaaS contracts signed in 2021 is not
yet included in the FY2021 figures. On an annualised basis (i.e.
assuming that contracts are operational for 12 months), the
signed WaaS contracts as at 31 December 2021 represent
a secured* annual turnover of over EUR 2.8 million in 2022.
This excludes the potential uplift revenue that comes on top
of the minimum contracted annual revenue of the existing
contracts as well as the revenue from new WaaS contracts
that will be concluded in 2022.
The accelerated market acceptance of the innovative WaaS
concept leads to a solid triple digit growth forecast for this
segment in 2022.
Based on the encouraging performance of the non-Waas
segment in the second half of 2021, Ekopak aims for a double
digit revenue growth for this segment in 2022.
Ekopak is also very ambitious for its 2022 business in France.
The French subsidiary that was created in August 2021 is
gaining traction and has already convinced a number of
high-end customers of Ekopak’s solutions, which is very
encouraging for the future.
It goes without saying that possible shifts from new customers
between WaaS and non-WaaS could impact the forecasted
figures for the rebalanced revenue mix WaaS/non-WaaS for
2022 and thus also for the group’s total revenue and profitability.
While Ekopak has not identified an immediate impact on its
business from the current turbulent political and economic
environment, these factors too, further complicate a more
precisely calculated growth forecast than indicated above.
Ekopak has made a strong start in 2022 and feels
confident that this momentum will continue. In January,
we announced that we have signed a Memorandum of
Understanding with PMV and water-link to set up a joint
venture, that will convert the treated waste water from
Antwerp households into cooling water for companies in
the Port of Antwerp by 2025. The joint venture, in which
Ekopak will have a 51% stake, is named Waterkracht
(‘water power’) and is a leading example of public-private
partnership. If all goes according to plan, 20 billion litres
of water will be recycled each year as of 2025. Just a
few weeks later, we revealed our plans to construct
a new building, comprising an office building and a
factory workshop, on a plot of approximately 2.1 hectares
on an industrial zone in Deinze, Belgium. The current
Ekopak head offices in Tielt, the office in Ghent and the
warehouse in Roeselare will be integrated into this new
site, which is conceived as a sustainable building and will
meet environmental specifications that go beyond those
legally required. Ekopak anticipates to move into the new
premises in the spring of 2024.
The company has the necessary resources at its disposal, has
mapped out the right strategy, has tapped into the major
French market and, above all, can rely on the WaaS business
model that has conclusively demonstrated its value in 2021.
Ekopak is not directly exposed by the war in Ukraine. The
group has neither in Ukraine nor in Russia any installations
and is not exploring these geographic markets for its business.
Ekopak does not procure any equipment, key components
and ingredients from these countries. It cannot be excluded
that Ekopak may be affected indirectly from this situation,
more specifically when major customers would be affected,
which could over time result in delayed orders. We cannot
estimate the impact the macro economical situation might
have in the future.
* In general, there are contractually agreed minimum monthly fees over the term of the contract, but, generally, the agreement also stipulates the conditions upon which
a contract can be terminated
3.3. OUTLOOK 2022
Annual Report 2021 | Mission – Vision – Strategy 10
The story behind
Ekopak’s
mission
and growth
A lot has happened for Ekopak in these past few years.
It’s a good time to appreciate how far we have come,
before we tackle the work that is still in front of us.
4. ABOUT EKOPAK
11Annual Report 2021 | About Ekopak
4.1. WHAT DO WE DO?
Turning water users
into water producers
The simplest description of what Ekopak does, is provide industry with sustainable water
management. This provides companies with a changemaking solution to different issues they
face. But how exactly? And what makes a decentralized source a better solution than any
water saving project companies might already be implementing? Let’s get into it.
Companies carry a responsibility toward their stakeholders
that includes minimizing their negative impact on the
environment. Considering the ever more frequent periods
of extreme drought and the enormous consequences
that has on our society, a responsible attitude towards
water usage is essential – especially if a company uses
very large quantities of water and is largely dependent on
the availability of this natural resource.
Many businesses are already aware they need a more
conscious approach to their usage of water but have
until now focused almost exclusively on projects to try and
save water. And that is just not enough to truly deal with
the layered issues they face concerning their water usage.
Companies might need water for a variety of reasons
other than standard sanitary use, which is obviously
already larger scale than that of a family’s household, for
example. Additionally, factories or other industrial facilities
might use a lot more water in their processes or as an
ingredient in their product – and that is where their usage
is the most important.
Because not only is this where they use the largest
quantity of water, this is also where the water has the
biggest impact on the business itself. A company could
quite easily survive a short interruption in their sanitary
water supply because their core activities don’t entirely
depend on it. But if a company’s water supply for its
processes is cut off, it can create a serious safety risk for
its employees and the consumers of its final product.
12Annual Report 2021 | About Ekopak
A decentralized water source offers a more comprehensive
solution than simply ‘saving water’, explains Ekopak CEO
Pieter Loose: “It enables businesses to disconnect from
the regular water network and start a circular use by
revaluing and recycling the water.” In other words, instead
of ‘wasting less water’, let’s not waste any water for
industrial purposes at all by using a decentralized water
source for an endlessly renewable supply. That not only
allows companies to minimize their water footprint, but it
also makes them much less vulnerable to water scarcity
and the negative effects a water shortage and potential
interruptions of their processes.
A decentralized water source
enables businesses to disconnect
from the regular water network
and start a circular use.
Pieter Loose — CEO
Smarter and more sustainable
“It is smarter, safer and more ecological to stop using and
wasting drink water, and to switch to alternative sources
such as wastewater, rainwater and surface water”,
says Loose. “But of course, in making that switch, water
treatment plays a crucial role.”
Aside from their need for water
continuity, businesses are also
dependent on the quality of the
water. It’s important to note here
that ‘quality’ does not mean one
general set of requirements that
water has to meet: the charac-
teristics that render water usable
for one factory, might not make it
usable for another facility.
“Our ambition is to convince
all companies to disconnect from traditional water
sources,” proclaims Loose. He’s not just speaking out of
enthusiastic ambition for Ekopak’s growth, or not even
for
the preservation of our precious natural resources – it also
genuinely makes the most sense for other business leaders.
By switching to a decentralized source, companies
simultaneously guarantee the continuity of their own
process water, and that of drinking water for the rest of
society. It is not only the right thing to do, but also simply
a matter of limiting business risks.
When natural water reserves
are exhausted, companies
will certainly feel the negative
economic impact of this. If
companies become self- reliant,
that offers them the advantage
of certainty.
That is why Pieter Loose can
barely contain his excitement
when he announces Ekopak’s
ambitious dreams for the future:
“We are convinced that by 2030 50% of companies in
Belgium will no longer be connected to a traditional water
source. By 2050 this will be the case throughout Europe.”
When natural water reserves
are exhausted, companies
will certainly feel the negative
economic impact of this.
If companies become
self-reliant, that offers them
the advantage of certainty.
Pieter Loose — CEO
13Annual Report 2021 | About Ekopak
Our business units
For managing its performance Ekopak has adopted two
business units, corresponding with an equal number of
reporting segments: WaaS and non-WaaS – with WaaS
being the acronym for Water-as-a-Service.
In the non-WaaS business model, Ekopak focuses on
designing and building water purification installations
with the option to also cover the related servicing once
the installation becomes operational. In this business
model, the main part of the revenue recognition consists
of the sales of the water purification installations to
the customer, complemented by consultancy services,
after-sales services and consumables supplies. The
non-WaaS business is characterised by high operating
income levels (inherent to the sale of these invest-
ment goods), combined with single to low-double digit
EBTIDA-margins, depending on the mix between sales of
consultancy services, investment goods, consumables,…
The WaaS business model combines Ekopak’s design,
build, finance, operation and maintenance services in a
one-stop-shop, end-to-end solution with pay-by-the-
drop pricing. Each WaaS agreement generates revenues
in the form of a contractually agreed minimum monthly
fee over the term of the contract, as from the first m
3
of
water supplied. Ekopak aims for an initial contract term
of 10 years, with fixed €/m
3
prices. Inherent to the WaaS
business model is the fact that operating income is
spread over the total lifetime (target: 10 years) of each
agreement. Whereas a comparable non-WaaS contract
largely results in a one-off revenue, a typical 10 year
WaaS-contract secures 120 monthly revenues. As such,
the WaaS business generates a lower revenue level at
the time that the water purification installation becomes
operational, but this is secured for the entire duration of
the contract. Moreover, the WaaS business generates
EBITDA-margins of at least 67%.
14
Our
Partners
Reporting
Trademarks
Products &
Services
Memberships,
Associations & Certificat
40%
33%
Services
16% Consumables
11% WaaS
Water process
installations
• UN Global Compact | Participant since 19/04/2021
• VCA | Since june 2015 | Label renewed in 2021 (until 2024)
• VCA Petrochemicals |
Ambition to obtain the label by June 2022
• ISO 9001 |
Ambition to obtain the label in 2022
• Listed since 31 ⁄ 03 ⁄ 2021 | Obligation to publish financial
results at least twice a year
(HY & YE)
• UN Global Compact | Participant since 19 ⁄ 04 ⁄ 2021
Sustainability
SCC examination Corporate communication
Consultant ISO & VCA
Focus industries
Food Industry
Chemical Industry
Pharmaceutical Industry
WE SUPPORT WE SUPPORT
Activity
Belgium, France, The Netherlands, Luxemburg, UK, Ghana,
Cuba, Indonesia & Pakistan
Belgium –
Tielt, Gent, Genk
HQ
Annual Report 2021 | About Ekopak
15Annual Report 2021 | About Ekopak
Timeline of our growth
March 2021
Ekopak announces its intention to raise gross
proceeds of €50 million through the issue of new
shares pursuant to a private placement to qualified
investors followed by a listing of its shares on the
regulated market of Euronext Brussels.
April 2021
Ekopak joined the UN Global Compact on April 19 of
2021, as it provides an excellent framework to offer
support and structure to our process of
integrating sustainability into our business
strategy and operations.
March 2021
WaaS NV enters into a new WaaS contract with
Takeda, for its production site in Lessines, Belgium.
The contract covers the annual reuse of 600,000 m
3
of waste water.
March 2021
Ekopak sets private placement price at €14.00
per share, implying a total market capitalization
of approximately €201 million. The total size of the
private placement, including a partial exercise of the
Increase Option and including the placement of the
Additional Shares (473,214 existing Shares), amounts
to approximately €57 million. The listing and trading
of the shares on Euronext Brussels starts.
April 2021
Following the exercise of the “Over-allotment
Warrant” and the resulting capital increase,
Ekopak’s share capital amounts to
€6.7 million
.
April 2021
Ekopak announces the integration of iSERV,
a specialized service provider for water treatment
and sector partner.
4.2. TIMELINE OF OUR GROWTH
16
June 2021
Vynova, an international chemical company active
in the production of PVC and chlor-alkali products,
signs a contract with Ekopak for the construction
and installation of a demineralisation plant that
will supply the Vynova site in Tessenderlo (Belgium)
with over one million cubic metres of pure and
sustainable process water per year.
September 2021
Ekopak publishes its interim results for the first
six months of 2021, indicating that the strategic
transition to Water-as-a-Service (WaaS) business
model gets off to a flying start with a 25.4% increase
in WaaS business revenue.
September 2021
Ekopak announces to be the official co-title shirt sponsor
of the international cycling team Quick Step – Alpha
Vinyl, with top riders including Julian Alaphilippe, Remco
Evenepoel, Kasper Asgreen and Fabio Jakobsen. Few
days after this announcement, the French rider Julian
Alaphilippe wins the world championship. In his rainbow
shirt, Alaphilippe will play an excellent ambassador’s role
for Ekopak’s growing business in France and beyond.
August 2021
Ekopak sets up Ekopak France with the opening
of two branches in France: the first in Rouen
(focussing on projects in northern France, including
the industrial areas of Lille, Paris, Metz, Rennes and
Nantes), the second in Lyon (focussing on central
and southern France).
September 2021
Several new WaaS-projects are announced on
Ekopak’s website, including a full redesign of the water
treatment facility of the Brussels university hospital, UZ
Brussel, as well as a water treatment system for the
Lahore facility of the Sapphire textile group in Pakistan,
as part of a larger project of Vyncke, a company
headquartered in the same region as Ekopak.
November 2021
Ekopak initiates its plan to optimize the legal
structure for the group, with a proposed merger
by acquisition between Ekopak NV, the
acquiring company, and on the other hand,
Water-as-a-Service NV and iSERV BV as the
companies to be acquired.
Annual Report 2021 | About Ekopak
…
Ekopak foresees to publish its sustainability report in the 2nd quarter of 2022.
17
4.3. AN ONGOING JOURNEY
An ongoing journey
Major changes also mean new challenges and new needs for Ekopak.
To manage its explosive growth and create a stable environment for future success,
Ekopak will need to change its fundament.
To protect the company’s purpose and the wellbeing of
its employees; Ekopak needs a framework that doesn’t
separate business from sustainability strategy but
integrates both to form a guiding light for the entire
company, and for its growth. “There is only one way to
make sure your growth will create the positive impact
that you want to, and that is when sustainability is baked
into the business strategy”, explains Pieter Loose. “The
process started with holding up
a mirror to ourselves and really
seeing who we are. Otherwise,
we couldn’t possibly define
what sustainability means for
our company, exactly, and how
we could integrate it in every
aspect of our business and
organization.”
This strategy provides Ekopak
with a framework for its operations and with both social
and environmental KPIs for the short and the long term.
“We are all very aware that this is really only the beginning
of our journey”, says Loose. “It is a process of continuous
development. In the next few years, we must implement
the plan that is on the table, while we must constantly
evaluate to find out how and where we can do better.
This thing we have started – this journey towards an
ever- growing positive impact on
our world – it will have no
ending. We will keep raising the bar.”
Step by step
While Ekopak has succeeded in establishing a strong
corporate culture with a clear mission, values and
principles, this now needs to be formalized and integrated.
In recent years the company needed to focus all its efforts
and attention on its rapid growth.
In 2022, Ekopak will make it top
priority to create the structure
the company needs to build on.
Formal policies will be drawn
up to protect the company’s
culture and everyone’s rights
within its organization: stan-
dards, a code of conduct and
a written policy for safety, ethics
and health are all a part of this.
This also applies to the existing baseline measurements:
they, too, need to be complemented and formalized.
Ekopak is well aware of this and therefore further
formulation and implementation of these baselines will
also be a strong focus for the company in the coming
years, so that it can get a firm grasp on its current state
and measure its improvements.
We invite you to check back in with us a couple of months
from now, or perhaps in next year’s report – so we can
show you the next steps we have taken.
There is only one way to make
sure your growth will create the
positive impact that you want to,
and that is when sustainability is
baked into the business strategy.
Pieter Loose — CEO
Annual Report 2021 | About Ekopak
18Integrated Report 2022 | About Ekopak
5. CONTEXT AND TRENDS
Where we are today:
no drop to waste
To know where we need to go in the future, we must fully
understand where we are today. Ekopak’s story is inextricably
linked to the world’s rising water demand and shortages.
While a sustainable approach to water usage has become ever
more relevant, this has continuously fortified Ekopak’s focus and
determination to offer real, viable solutions to a situation that
endangers everyone on this planet.
19Annual Report 2021 | Context and trends
Water demand: the world’s excessive thirst
Since the 1980’s the global use of freshwater rises at a rate
of roughly 1% every year. The United Nations World Water
Development Report 2021 attributes much of this growth to a
combination of population growth, economic development
and shifting consumption patterns. Agriculture currently
accounts for 69% of global water withdrawals, says the
report, which are mainly used for irrigation but also include
water used for livestock and aquaculture. Industry (including
energy and power generation) accounts for 19%.
Water stress in Belgium
Ekopak’s home market Belgium is not an exception to this
global trend. Research by the World Resource Institute shows
that Belgium is among the countries with the most water
scarcity in the world. Every year Belgians use as much as
40 to 80% of all available drinking water in the country. It
places Belgium as 23rd out of 164 countries surveyed. Just
over half of the net water use is accounted for by the energy
sector and industry. The latter thus has an impact on water
use that is much more important than that of households
or agriculture: industry needs the water for its production
process or as an ingredient for its products.
Water availability:
an (in)exhaustible resource
While the demand for water keeps increasing, water
availability is decreasing. In absolute terms, the total
renewable freshwater resource in Europe is around 3,500 km
3
per year. The Mediterranean islands of Malta and Cyprus
and the densely populated European countries have the
least available water per capita.
Belgium also feels the effects of the climate change: forecasts
indicate that our region will continue to have a very high
probability of long dry periods in the summer months, after
having recently faced four consecutive summers with periods
of extreme drought. Aside from endangering the drinking
water supply, the droughts have another dangerous effect
on society. While it does rain less often, the rainfall – when it
eventually happens – has become more concen
trated and
intense. This has elevated the risk of devastating floods
after heavy rainfall, as the preceding periods of drought have
reduced the capacity of the soil to absorb and drain water.
The effect: water stress and blue out
A structural water shortage is looming in the future. Water
stress – a shortage of drinking water versus the demand –
affects many parts of the world. The United Nations World
Water Development Report 2021 reports that over two
billion people live in countries experiencing water stress,
which may lead to many devastating consequences.
Many companies today are still entirely dependent on drinking
water for their processes or production because it is the only
source of water available to them. Yet as this water source
threatens to fluctuate or fall away completely, companies’
product and process continuity comes under threat.
The answer: a paradigm shift in
water management
The analysis of the current global water demand and
availability makes it clear that an adaptation to climate
change is urgent and needs a global approach. It is precisely
here that Ekopak identifies its potential to be a catalyst for
change, by raising awareness among companies that more
sustainable water use within the industry is possible thanks
to decentralized and renewable water sources. In this way,
Ekopak takes up its responsibility in the realization of the
United Nations Sustainable Development Goals. These SDGs
are the goals the world is setting for 2030, as a framework to
evolve towards sustainable development. “Ensure availability
and sustainable management of water and sanitation for all”
is the official wording of SDG 6, aiming for clean water and
sanitation for all people.
Within SDG 6 you can find six ‘outcome-oriented targets’:
safe and affordable drinking water, end open defecation
and provide access to sanitation and hygiene, improve
water quality, wastewater treatment and safe reuse,
increase water use-efficiency and ensure freshwater
supplies, implement IWRM (integrated water resources
management), protect and restore water-related
ecosystems. Next to SDG 6 water is also an important ele-
ment in SDG 9 (industry, innovation, and infrastructure) and
SDG 13 (climate action). Water plays indeed an important
role within the industry and is closely linked to the climate.
* wri.org/aqueduct
** wri.org/aqueduct
*** Willems, P., et al. (2020), ‘Uitwerking van een reactief afwegingskader voor prioritair watergebruik tijdens waterschaarste’
40 to
80%
1 ⁄ 2
Water
Annually, Belgians
use 40 to 80% of
all the available
drinking water in
the country*
Belgium ranks 23rd
out of 164 countries
in terms of water
stress**
Just over half of
the net water use
is accounted for by
the energy sector
and industry***
23rd
of 163
5.1. INTRO
20
Our value chain:
turn the tide
The idea of the value chain is based on the process view
of organizations, the idea of seeing a manufacturing (or
service) organization as a system, made up of subsystems
each with inputs, transformation processes and outputs.
Ekopak’s value chain is built around the increased urgency
regarding the establishment of circular processes and
should be seen within the broader paradigm shift towards
a stakeholder economy.
In contrast to a shareholder economy, companies within
a stakeholder economy consider all stakeholders who are
affected by the company. For example,
strategic decisions touch upon the needs
of employees and shareholders but as
well the needs of suppliers and custo
-
mers and on less obvious stakeholders
such as society or NGO’s. In other words:
the actors in the value chain are only one
part of the Ekopak stakeholders.
A credible strategic management
therefore assumes an economic as
well as a social and an environmental
aspect. It always seeks to balance what
is important to stakeholders with what is important to the
company. These three aspects do not function in isolation, a
credible sustainability promise requires a systemic approach
in which mutual influences are recognized.
Ekopak doesn’t see itself and its purpose as a standalone.
The impact the company can have in the market is crucial.
The operational model is built on the ambition to use its
impact to move the market forward in a positive way and
to raise awareness about water shortage. “We have come
a long way”, says CTO Joost Van der Spurt. “A decade
ago, we met chemical plants for whom our proposition was
‘just about water’. Today, Ekopak experts are welcomed to
provide solutions around water. That changed perception
demonstrates very tangibly that we can really make an
impact on the stakeholders in our value chain.”
Ekopak operates in a new, innovative, and fast-growing
market. The global water and wastewater expenditures by
utilities and industrial water users is predicted to grow 3.5%
CAGR by 2023. Only 2% of urban wastewater is re-used in
the EU, but at the same time the water
supply market is increasingly gaining
relevance across global stakeholders.
Ekopak‘s key technology segments are
growing at an even faster pace. By 2024
the reverse osmosis market aims for a
growth of 8.7% CAGR, the ultra-filtration
market is targeting a growth of 15.3% and
the nano filtration market will progress
with 18.2%.
Driven by increasing water scarcity,
increasing water demand, progressively stringent
regulations and more relevant ESG goals, many industrial
water consumers are seeking ways to reduce their overall
water use footprint and to use water in a more sustainable
way. To accomplish its mission, Ekopak made the strategic
choice to focus on industries with a high water usage and
the need for water with particular qualities. As a result,
assignments in the food industry, the pharmaceutical
industry and the chemical industry have become very
important for our business.
“There is a need for innovations
that allow companies to reuse
wastewater and to use alternative
sources in a circular economic
model. I think innovation, both
technological and in terms of
business models, will leverage
this circular evolution. We
are already noticing that the
increasing demand and the drive
to innovate are accelerators for
Ekopak’s growth.”
Pieter Loose — CEO
770
+3.5%
CAGR
915
2018A 2023E
15.3 %
CAGR
(2)
12.4
2022E
2024E
2.6
2019A
1.2
8.7 %
CAGR
(1)
12.4
2022E
2024E
12.4
2019A
8.2
18.2 %
CAGR
(3)
12.4
2022E
2024E
1.2
2019A
0.5
5.2. VALUE CHAIN
Our
market
The legacy global industrial
water market is vast & growing.
Ekopak’s key technology segments
are growing at a fast pace.
Note(s): (*) Tubular/ spiral nano membrane market Source(s): (1) Allied Market Research – Reverse Osmosis
Membrane Market Outlook - 2025, 2018; (2) Reports and Data – Ultrafiltration Market Size, Share And
Analysis By Type And By Applications, 2020; (3) bcc research – Nanotechnology, 2019
Source(s): (1) Global Water Intelligence (GWI) –
Global Water Market in 2018; (2) United Nations –
The UN World Water Development Report, 2020
Annual Report 2021 | Context and trends
6. SUSTAINABLE GROWTH
Ekopak’s
Sustainable Growth
Though sustainability has always played an important role in
Ekopak’s history, in 2021 the company started its transition from
undertaking various initiatives and projects to approaching
sustainability in an intentional, consistent, and integrated way.
In this chapter of our report, we would like to outline the
process of developing our sustainable strategy and
introduce its four pillars.
By establishing our sustainable
strategy, we clearly identify
where we can create the
biggest impact – allowing us to
streamline our efforts where it
makes most sense.
Els De Keukelaere — CFO
To be continued…
In Q2 of 2022 we will publish our first sustainability report,
which will illustrate the process in full and will also detail
our concrete ambitions and goals as validated by our
Board of Directors.
22Annual Report 2021 | Sustainable growth
STEP 1: it starts with us
For our company to grow sustainably, we don’t separate
our business strategy from our sustainability efforts,
but rather develop them both so they reinforce each
other. That is why our sustainable strategy starts with
determining the business strategy: what do we do as a
company? What do we stand for?
Once we have a very clear understanding of who we are,
we can recognize the actual impact that we have as
a company. Our strategy must then guide us where we
are able to create the biggest impact, so that it not only
assures this impact is as positive as possible, but that it
also strengthens our business.
STEP 2: all about the stakeholders
Once it is clear what we do as a company, we can identify
where our biggest impact lies, and what our priorities
and risks are. But for that, we need our stakeholders. If
‘sustainability’ is the balance between ecological, social,
and economic aspects, we need to determine which
ecological and social aspects are important for our
stakeholders, and thus for our company.
Because our stakeholders are impacted by our business,
they experience certain needs. These materialities
represent potentially interesting opportunities for Ekopak
(if we can meet these needs) but they can also express
significant risks (if we fail to meet them). Talking to our
stakeholders broadens our horizon, so that we don’t
experience the world through our own tunnel vision but
are made aware of the risks and opportunities that lie
outside of our own perspective.
The process
“Sustainability is achieving that balance between
ecological, social, and economic aspects. When this
balance is achieved, whatever we do for the good of the
world, will also be for the good of the company – and
that is how we will be able to grow sustainably.”
Pieter Loose — CEO
6.1. THE PROCESS
Discover more
In our sustainability report, we’ll explain how we
identified our stakeholders, plan to communicate
with them in the future and how we learned
about their materialities regarding Ekopak.
• Main Suppliers
• Construction Materials
• Chemistry
• Containers
• Pumps
• Membranes
• Transporters
• Green funds
• Shareholders
• Board of Directors
• Individual
• shareholders
• Banks
• Pilovan & Alychlo
• Employees
• Subcontractors
Suppliers of semi-finished
products
Transport purchasing
Car dealership
External employees
• Interim
• Trainees & Students
External services
Cleaning service
Management team
Collaborators
Insurance company
Transportation (sales)
Family of employees
• Big clients
• Food industry
• Chemical industry
• Pharmaceutical
industry
• Clients in
countries prone
to corruption
•
Ecological
frameworks Europe
• Blue Deal
• Green Deal
• Certificates
• BREEAM
• VCA
• ISO
• UN GC
•
Government/
municipality/province
•
Nature associations
•
Schools/universities
Employees of the client
Children & family of the client
End customer of the
product/consumer
European Union
NGOs
Competitors
Environmentalists
Neighbors
Quick-step Alpha Vinyl
UN Water.org
BMC
Financial associations
1
Suppliers
3
Employees
4
Clients
5
Communities
2
Owners &
Investors
Ekopak’s stakeholders
23
STEP 3: priorities
Sustainable development is only possible if we have a positive
impact on the world around us, as well as on the economic
reality of our company. Drawing up our strategy is a constant
balancing act, then – in which we need to prioritize those
issues that have the most impact on both sides.
As soon as we are aware of our stakeholders’ needs, we
need to determine which materialities to prioritize and
integrate into our strategy. We determine these priorities
by plotting all materialities on a matrix that considers both
the relative impact Ekopak has on a materiality (and thus
on the stakeholder) and the impact a materiality has on
Ekopak’s business. In that way we can find the right
balance between people, planet and profit that allows us
to further develop sustainably.
Renewable Water Use
Responsible Asset Management
Safe Water Use
Eko-wolfpack
STEP 4: determining
our sustainability pillars
A list of materialities would not be a very effective way
to communicate what sustainability means to Ekopak.
By integrating them into a clear and concise story, it
helps our company communicate – internally as well as
externally – where our focus and priorities lie.
Renewable water use
The world is headed to a major shortage of usable water.
To avert an ecological and humanitarian disaster we need
to use the right water sources for the right applications.
Only then will our water usage become renewable and
therefore sustainable. To make this possible Ekopak supports
companies in their transition from the traditional water grid
to a decentralized supply.
Safe water use
Companies use water either as process water or as an
ingredient in the product. In both cases the water has an
important impact on safety. Ekopak guarantees this safety by
treating the water to the desired quality and by maximizing
continuity.
Eko-wolfpack
Ekopak makes an important contribution towards more
sustainable water usage thanks to its decentralized supply
but can only do this thanks to a highly skilful and ambitious
team. However, the same drive and passion that drives
innovation, can also cause employees to burn out. It is thus
essential that Ekopak invests in both the mental health and
knowledge of its Eko-wolfpack.
Responsible asset management
The impact of Ekopak’s own operations is small compared to
the difference we make for our clients’ impact. Still, we also
want the improvement of our own footprint to stay at par with
the evolution of society. Our focus is on our buildings and our
mobility, as we aim to reduce our negative impact on CO2
emissions, air pollution, water, energy and waste.
No business can become 100% perfect, but
that shouldn’t stop us from steadily and
purposefully improving ourselves step by
step. We do so by prioritizing the things with
which we can make the biggest difference.
Dwight Vandendaele — Ekopak Belgium
Annual Report 2021 | Sustainable growth
Discover more
In our sustainability report we’ll show our mate-
riality matrix and explain the process that went
behind the prioritization of the materialities.
24Annual Report 2021 | Sustainable growth
STEP 5: acting where it matters
Our pillars offer the foundation for a specific project plan
according to our priorities. Such a project plan makes sure
that every action Ekopak takes, will support its sustainable
strategy. Below, we will summarize the framework our
pillars create for Ekopak.
In our sustainability report, we’ll share with you a detailed
and complete project plan that clarifies what our
objectives are, where we stand today and how we want
to improve, as validated by our Board of Directors.
While we developed our sustainable
strategy in 2021, the real work begins in
2022: we will have to deepen and strengthen
the approach we have taken. Our focus
will be both on the concrete projects, and
on a more structured engagement with
stakeholders.
Els De Keukelaere — CFO
Safe
Water Use
Quality and continuity
to guarantee safety
Renewable
Water Use
The right water
source for the right
application
Responsible
Asset
Management
Minimize the negative
impact of our build-
ings and mobility
Eko-wolfpack
Passion and knowl-
edge as the motor
to make water
renewable
Ekopak’s sustainability pillars and the SDG’s
25Annual Report 2021 | Renewable water use
Using the right water sources
for the right applications
6.2. RENEWABLE WATER USE
Switching to a
decentralized water supply
The first part of this pillar is Ekopak’s commitment to
help companies switch to a decentralized water supply.
This starts with an analysis of all possible residual flows
– from wastewater and rainwater to surface water – to
provide the decentralized supply with sufficient water for
process continuity. Based on this analysis we determine
which treatment the incoming water needs to achieve the
desired quality. In close collaboration with the academic
world, Ekopak applies innovative solutions within this
process to maximize the use of the decentralized supply:
optimizing its usability for the customer in terms of both
quality and continuity.
Impact
• Smaller water footprint
• Water continuity and quality guaranteed
• Independent of fluctuating costs of
traditional water grid
• Resilience in the face of water scarcity
Takeda Lessines makes the switch
The decentralized water supply at Takeda Lessines converts the site’s
wastewater back to drinking water through ultrafiltration and reverse
osmosis (3x50 m
3
/hr). Before, Takeda had a consumption of 700.000m
3
of
city water per year. This number fell by 90% after switching to a decentralized
water supply: only when the residual flows can’t guarantee continuity, does
Ekopak add the absolute minimum of drinking water.
Raising awareness about decentralized
water supply
To maximize the impact of renewable water use, it’s not
enough to focus on the actual implementation of the
decentralized water supply, as many companies remain
insufficiently aware of its existence and opportunities.
Awareness needs to be raised about the Ekopak products
and services, to motivate stakeholders in our value chain –
suppliers on the one hand and customers on the other – to
make more sustainable choices.
Impact
• By informing companies of the advantages and
opportunities that a decentralized water supply can offer
them, it will intrinsically motivate them to want to disconnect
from the drinking water grid and lower their water footprint.
• Simultaneously, raising awareness can make Ekopak
top-of-mind for potential customers, which supports our
company’s sustainable development.
26Annual Report 2021 | Renewable water use
Water.org
Water.org is a global non-profit organization that works to promote water and sanitation
in the world. The organization helps people gain access to safe water and sanitation
through affordable financing, such as small loans. This is a life-changing step that gives
women hope, enables children to grow up healthy and allows a bright future to families.
Ekopak minimizes the impact
of a decentralized water supply
Convincing as many companies as possible to switch to a
decentralized water supply is not a ‘standalone’ sustainability
ambition. Within the strategy we strive to combine a smaller
water footprint with minimizing the impact of the installations in
terms of chemicals, CO2, energy, and waste. As a result, Ekopak
can offer a more economically viable decentralized supply that
withstands the ever-increasing pressure of fixed costs.
Created impact
It just wouldn’t do to see companies take a step forward in
terms of water, only to take a step backwards in terms of
other ecological parameters.
Ekopak creates access to
drinkable water where needed
At Ekopak we think it’s important to create impact beyond
the value chain. We already help our customers save many
millions of litres of water, but together with Water.org we
take it one step further. Through our ‘Save water, give
water’-program, we help people gain access to drinking
water in regions facing severe shortages.
Created impact
The ‘Save water, give water’-program is a lever for Ekopak to
further raise awareness among its own customers about the
impact of climate change.
27Annual Report 2021 | Safe water use
Safe water use
6.3. SAFE WATER USE
Guaranteeing the right water
quality of the decentralized supply
Ekopak takes responsibility to maximize the deployment
of their decentralized water resources by using the best
possible techniques of water treatment to bring the quality
of the water to the right level for each client’s processes
and products. Our engineers visit clients regularly to carry
out analyses and to guide them towards optimum water
quality. Ekopak’s key technologies are reverse osmosis,
ultra-filtration, and nano filtration, but we also offer
corrosion control, disinfection, or legionella prevention.
Impact
• Process safety in production is crucial for
the safety of the production workers.
• Product safety has an important impact on
the general population.
1 million m
3
purified process
water annually for Vynova
Vynova is an international chemical group
active in the production of PVC and
chlor-alkali products. In its operations, they
demand a constant quality and reliability
of process water. Vynova does not use a
decentralized water supply, but as in any of
its client projects Ekopak strives to maximize
water deployment by ensuring quality and
continuity. For Vynova, a demineralization
installation using membrane technology
will supply the site in Tessenderlo with more
than one million cubic meters of pure and
sustainable process water per year (at 3x80
m
3
/hour) starting from the third quarter of
2022. The project confirms and underlines the
importance of sustainable process water for
the entire chemical sector.
has already
joined the
program
Save Water,
Give Water
we’ve given
people access to
drinking water in
areas of water
stress
Takeda 2.4K
28Annual Report 2021 | Eko-wolfpack
Caring about the mental health
of our people
It’s the people – our Eko-wolfpack – that carry the
organization and ensure Ekopak can develop sustainably.
However, people who are pushed too far will lose the
motivation and the ability to continue to contribute their
very best to our shared goal. At Ekopak we are vigilant
and we aim to keep the team spirit high. We have a
responsibility to take care of our people – and their mental
health, today and in the future.
Impact
Passionate people who feel good can change the world.
Building and spreading knowledge
about decentralized water supply
Ekopak operates in a relatively new industry. The
knowledge about decentralized water supply is not yet
widely available. This puts a double responsibility on
Ekopak’s shoulders: we need to adequately train our own
employees, but we also need to prepare a new generation
for a future in renewable water.
Impact
By spreading the knowledge about decentralized water
supply as widely as possible, the potential change that it
can create will grow exponentially.
20 billion litres of recycled
water each year
In early 2022, Ekopak announced a joint venture
with PMV and water-link to convert the treated
wastewater from Antwerp households into cooling
water for companies in the Port of Antwerp by 2025.
The collaboration is named Waterkracht (‘the power
of water’) and is a significant milestone in the Port of
Antwerp’s sustainability transition. In this public-private
partnership Ekopak owns a 51% share in the established
joint venture.
Waterkracht is in talks with the Port of Antwerp about
building the water purification installation for this project
on a plot in the NextGen district – the former Opel site
in the Port of Antwerp. Ekopak will build and operate
the factory. With membrane technology, it will treat
wastewater to prepare it for industrial applications.
The project will recover and filter the wastewater from
the entire City of Antwerp and will recycle 20 billion
litres of water each year – the equivalent of the water
consumption of 400,000 families. If all goes according to
plan, this plant will be fully operational in 2025.
Guaranteeing the water continuity of
the decentralized supply
Businesses also need to be sure of water continuity for
their safety: just think of the risks involved when process
water or cooling water is no longer delivered. These risks
are keeping companies from becoming fully self-sufficient.
So, Ekopak guarantees the continuity of our decentralized
water supply by bringing together sufficient wastewater
streams internally, and by investigating the possibilities
of linking the decentralized water supplies of different
companies. By connecting companies in an alternative
water network, peak moments in one company can be
compensated by off-peak moments in the other.
Impact
As groundwater extraction for drinking water has an
impact on the groundwater level and can cause a lot of
ecological damage, the fewer companies that use the
drinking water network for their activities, the less negative
impact industry will have on the groundwater level.
Eko-wolfpack
6.4. EKO-WOLFPACK
29
The impact of Ekopak’s own operations is small compared to the difference we make for our
clients’ impact. Still, we also want the improvement of our own footprint to stay at par with
the evolution of society. Our focus is on our buildings and our mobility, as we aim to reduce our
negative impact on CO2 emissions, air pollution, water, energy, and waste.
A new sustainable
home for Ekopak
To accommodate our growth, Ekopak
quite literally needs more space. At this
moment Ekopak is drafting the plans and
conducting the feasibility study for the
BREAAM and WELL certification of its new
building.
Impact
The new headquarters offer us an
excellent opportunity to not only
improve our impact on our immediate
surroundings, but also develop a
sustainable environment where our
Eko-wolfpack can thrive in their shared
mission.
Responsible asset management
6.5. RESPONSIBLE ASSET MANAGEMENT
• BREEAM (Building Research Establishment Environmental Assessment
Method) is the certification method for a sustainably built environment:
the method provides guidelines not only in terms of energy or water,
but across the board by also considering the used materials, waste,
facility management, and impact on health and wellbeing.
• The WELL Building Standard is an international standard for buildings
that positively impact its users’ health and wellbeing. It describes
specific criteria on the topic of 10 concepts: air, water, food, light, move
-
ment, thermal comfort, acoustics, materials, wellbeing, and community.
Green mobility
The way our Eko-wolfpack travels to
work contributes to our world’s CO2 and
air pollution. That is why this pillar calls
for the electrification of our car fleet
and raised awareness about alternative
means of transportation among our
employees.
Impact
If more employees use alternatives to
the car, the impact on our world will be
smaller and we will contribute to reducing
the harmful effects of climate change.
Annual Report 2021 | Responsible asset management
30Annual Report 2021 | Water-as-a-Service
THE BENEFITS OF
Disconnect from the
drinking water grid.
No upfront investment,
pay for the water you use.
No operational risk:
Ekopak manages the source.
Continuous optimization
of the source by Ekopak
6.6. WATER-AS-A-SERVICE: CONTINUOUS IMPROVEMENT IN SUSTAINABLE WATER USE
Water-as-a-Service: continuous
improvement in sustainable water use
Our WaaS business model positively impacts all Ekopak’s sustainability pillars: it is the most
effective way in which Ekopak can help save cubic meters of drinking water, ensure the safety
of their clients’ water supply, and invest in the team that drives Ekopak’s innovation. We install
the decentralized water supply for our client but retain ownership and management over it. Our
client can disconnect from the central grid without the worry of having to maintain the source.
“We can do whatever it takes to keep the source
running as efficiently as possible with the least amount
of chemicals. We can also properly assess whether we
choose membranes or another technology, and with
WaaS we can always implement new techniques or
technologies as they are developed”
Joost Van der Spurt — CTO
Water as a Service
at Takeda Lessines
By disconnecting from the water grid,
Takeda Lessines reduces its water footprint
and increases water availability without
compromising its process continuity. At this
facility 600,000 m
3
of water – 90% of the site’s
entire freshwater consumption – is recycled
and reused in manufacturing, meeting all the
strict quality requirements in the process.
With WaaS, Ekopak takes care of everything:
there is always a continuous water supply, and
the client does not need to employ its own staff
to implement or monitor the systems. Ekopak’s
R&D engineers and highly qualified technicians
manage the development, construction
and 24/7 monitoring. Of course, Ekopak is
happy to work with the client’s managers
who are responsible for water treatment. Our
integrated approach guarantees a sustainable
and cost-effective customized solution at an
affordable leasing rate.
The business model is advantageous for
Ekopak’s clients on different levels:
1. Clients only pay for the water they consume, without
the upfront investment in the water supply.
2. Clients don’t need to invest in the skills and knowledge
necessary for the management of the supply.
3. Retaining ownership of the decentralized supply also
offers Ekopak more opportunities to keep adjusting,
optimizing, and customizing it, and as a result keep
improving the sustainable water use of their clients.
Corporate
Governance
Re
rt
2021
Together towards
a sustainable future.
32Annual Report 2021 | Corporate governance report
Shareholder structure
As a result of the offering of 4,044,642 new shares in a
private placement, on 31 March 2021 and 8 April 2021,
the total number of outstanding shares is 14,824,642. All
outstanding shares are traded on the regulated market
of Euronext Brussels. Each share entitles the holder to
one vote. Consequently, the total number of securities
conferring voting rights is also 14,824,642.
Along the securities conferring voting rights, there are
35,000 rights to subscribe for securities conferring voting
rights yet to be issued (cf. Warrant Plan).
Shareholders who cross, either up- or downwards, the
threshold of three (3) percent of the company’s share
capital on a fully diluted basis (i.e. with the sum of the
securities conferring voting rights and the rights to
subscribe for securities conferring voting rights, as the
denominator) must disclose their holdings. A subsequent
disclosure is required for each crossing, either up- or
downwards, of the threshold of five (5) percent and each
multiple of five (5) percent of the company’s share capital.
Disclosures should be transmitted to both Ekopak and the
FSMA.
Shareholder
Percentages
Number of
Ekopak shares
Shareholder
Alychlo NV
(BE)*
Pilovan
(BE)**
Free Float
6,252,358
5,280,714
3,291,570
% of total number of
outstanding shares /
securities conferring
voting rights
42.18%
35.62%
22.20%
*Alychlo NV, Lembergsesteenweg 19, B-9820 Merelbeke ** Pilovan BV, Hogerlucht 28, B-9600 Ronse
Annual
shareholders meeting
The annual shareholders meeting (ASM) is held on the
second Tuesday of May. Shareholders can attend the
meeting in person, or vote by proxy.
In 2021, the annual shareholder meeting took place on 17
March 2021, i.e. prior to the listing of Ekopak’s shares on
Euronext Brussels.
In addition to the annual shareholders meeting, the Board
of Directors also convened an extraordinary shareholders
meeting (ESM) on 17 March 2021, to decide on the private
placement and the listing of Ekopak’s shares on Euronext
Brussels, to amend the company’s articles of association
accordingly and to nominate the members of the Board
of Directors and its committees.
This year’s Annual Shareholder Meeting will be held on
10 May 2022. All details concerning this meeting are
published on Ekopak’s investor relations
website:
https://
ekopaksustainablewater.com/investor-relations/
Based on the disclosures of major holdings that Ekopak has received
since its IPO on 31 March 2021 and 8 April 2021, the shareholder
structure is as follows:
1. SHAREHOLDER STRUCTURE
2. ANNUAL SHAREHOLDERS MEETING
There are no restrictions on the shares or voting rights. There are no special items to note with respect to the Royal Decree of 14
november 2017. There are no transactions outside normal market conditions with major shareholders and no conflicts of interest.
33Annual Report 2021 | Corporate governance report
Composition
Independent directors
Directors associated with Alychlo
Directors associated with Pilovan
Directors from the executive committee
Executive DirectorsNon-Executive Directors
Ekopak’s
Board of Directors
Includes 7 members:
The Board of Directors of Ekopak includes 7 members:
• 3 executive and 4 non-executive directors
• 2 independent directors, 2 directors associated with the
reference shareholder Alychlo, and 3 directors from the
executive committee, of whom 2 associated with the
reference shareholder Pilovan
The Board of Directors is chaired by Pieter Bourgeois.
The members of Ekopak’s Board of Directors are the
management corporations with the following permanent
representatives (mentioned in alphabetical order of their
family names).
• Pieter Bourgeois, Investment manager of Alychlo NV
since 2015, Ekopak’s reference share-
holder. Master in electro-mechanical
industrial engineering (Group T); MBA
(Solvay Brussels School of Economics).
Over 20 years of experience in various
management roles at Alycholo, DHL,
YouBuild and Worldline/Banksys.
Belgian nationality.
• Els De Keukelaere, chief financial officer of Ekopak NV
since 2020 . Master in applied
economics (UGent, Ghent university),
MBA in financial management
(Vlerick Business School), Registered
Accountant since 2004. Previous career
roles include: auditor at KPMG Ghent
and chief financial officer of Concordia
Insurances (Ghent). Belgian nationality.
• Tim De Maet, chief operations officer of Ekopak NV
since 2020 following 9 years as
operation manager with the company
. Master industrial engineering chemistry
with a specialisation in environmental
biotechnology (HoGent, Ghent). Over
15 years of experience in the water
solutions industry, including Entaco NV
and Micron NV. Belgian nationality
• Ben Jansen, chief strategy officer at Alychlo NV since
2021. Master commercial engineering
(KULeuven). Over 20 years of
experience in various (marketing and
sales) management roles at Unilever
and as CCO at DPG Media (and its
predecessors Medialaan and De
Persgroep). Belgian nationality.
• Kristina Loguinova,
Kristina Loguinova, compliance
counsel at Value Square NV and
parttime professor at the VUB (Vrije
Universiteit Brussel/ Free University
of Brussels). Master of laws and PhD
in financial law (VUB ). Prior to joining
Value Square she provided consulting
services on innovation and sustainable
finance (ESG) to a broad range of
financial companies. Dutch nationality.
• Pieter Loose, chief executive officer of Ekopak NV since
2013 following 3 years as sales engineer
at the company. Master industrial civil
engineering (HoGent, Ghent university/
KULeuven). Prior to Ekopak, Pieter held
various management roles at Hertel.
He is also vice-chairman of Watercircle,
an interest group for water technology
companies in Belgium. Belgian
nationality.
• Regine Slagmulder, partner and full professor in
accounting & control at Vlerick
Business School (Belgium). Master in
electro-technical engineering and in
management sciences (UGent), PhD in
management (Vlerick Business School,
Ghent). Previously, she was a professor
at INSEAD (France & Singapore) and
Tilburg University (The Netherlands),
and also worked for McKinsey & Company’s strategy
practice. Belgian nationality.
A more detailed resume of each member of the Board of
Directors can be found at: https://
ekopaksustainablewater.com/investor-relations/
corporate-governance/management-board-of-directors/
3. BOARD OF DIRECTORS
34
Board Member
Permanent
Representative
Executive
status (1)
Independency
status (2)
Committees (3)
Current mandate
term, until (4)
Board mandates in other
publicly listed companies
Crescemus BV Pieter Bourgeois N S A ASM 2025 Snowworld
(Euronext Amsterdam)
EDK Management BV Els De Keukelaere E E ASM 2025
Tim De Maet (Tim De Maet) E E, S ASM 2025
BJVS BV Ben Jansen N S R* ASM 2025
Kristina Loguinova (Kristina Loguinova) N I A, R ASM 2025
Pilovan BV Pieter Loose E E, S ASM 2025
Regine Slagmulder
BV
Regine Slagmulder N I A*, R ASM 2025 Quest for Growth
(Euronext Brussels),
MDX Health (Euronext
Brussels/NASDAQ)
(1) Executive director (E) or non-executive director (N)
(2) Independent director (I), representing a reference
shareholder (S) or as member of the executive
committee (E)
(3) Member of the Audit committee (A) and/or the
Remuneration and nomination committee (R) –
presidency is indicated with an asterisk (*)
(4) ASM: Annual Shareholders Meeting
Assignments
• Pursue sustainable value creation by setting the
strategy, putting in place effective, responsible and
ethical leadership and monitoring the performance;
• Appoint and dismiss the Chief Executive Officer and
other members of the Executive Management;
• Meet at least four times a year.
Activity report
In principle, the Board of Directors convenes on a quarterly
basis. The meeting frequency may be increased when
deemed appropriate or necessary for the business.
In 2021, the Board of Directors held (5) meetings, of which
(4) with physical participation and (1) online meetings. The
meeting participation rate was 100% for each member of
the Board of Directors (or its permanent representative).
At these meetings, the Board of Directors discussed and
evaluated operational and financial performance of the
company, as well as strategic issues and opportunities,
including (potential) mergers and acquisitions and
expansion projects. Specifically for 2021, considerable
attention has been paid to setting-up a corporate
governance structure, including the approval of a Dealing
Code, as well as to prepare the Initial Public Offering
and the related listing on Euronext Brussels, including the
approval, on 21 March 2021, of the related prospectus.
Other topics included the integration of IT systems in the
group and the sustainability theme.
The conflict of interest regulation had not to be applied
in 2021
Annual Report 2021 | Corporate governance report
35
Committees of the
Board of Directors
Within the Board of Directors, two specialised committees have been set up,
with effect as from the Listing Date, for assisting the Board of Directors and making
recommendations in specific fields.
Audit committee
• Set up in accordance with Article 7:99 of the Belgian
Code of Companies and Associations, and with
provisions 4.10-16 of the Belgian 2020 Corporate
Governance Code
• Members: Regine Slagmulder (chair), Pieter Bourgeois
and Kristina Loguinova
In principle, the Audit Committee convenes on a quarterly
basis. The meeting frequency may be increased when
deemed appropriate or necessary for the business.
In 2021, the Audit Committee convened 2 times – i.e.
below the frequency recommended in the Corporate
Governance Charter, which can be explained by the fact
that the Audit Committee has only been set up in March
2021. All members participated in every meeting, except
Crescemus BV who attended 1 of the 2 Audit Committee
meetings in 2021. In 2021, the Audit Committee has
focussed on the development of Ekopak’s audit strategy
and the company’s audit process, involving the input of
the Statutory Auditor. In addition, the Audit Committee
also conducted a thorough risk assessment, in close
cooperation with the Executive Management Committee
(cf. Risk Management section in this document). Annual
and interim results of the company have also been
discussed at the Audit Committee 2021 meetings. The
conflict of interest regulation had not to be applied in 2021.
Remuneration & nomination committee
• Set up in accordance with Article 7:100 of the Belgian
Code of Companies and Associations and with
provisions 4.17-23 of the Belgian 2020 Corporate
Governance Code.
• Members: Ben Jansen (chair) Regine Slagmulder and-
Kristina Loguinova
• In principle, Remuneration & nomination committee
convenes on a bi-annual basis. The meeting frequency
may be increased when deemed appropriate or
necessary for the business. In 2021, the Remuneration
& nomination Committee convened 3 times and all
members participated in every meeting .
• In 2021, the Remuneration and Nomination Committee
• developed the framework for a coherent remuneration
policy for Ekopak. The committee also discussed an
option/warrant plan for Ekopak’s management and
evaluated the Belgian collective labour agreement 90
for the personnel, excluding management.
• The conflict of interest regulation had not to be applied
in 2021
Annual Report 2021 | Corporate governance report
4. COMMITTEES OF THE BOARD OF DIRECTORS
36
Executive
Management
Committee
The Chief Executive Officer is charged by the Board of Directors
with the day-to-day management of the company and leads
the Executive Management Committee within the framework
established by the Board of Directors and under its
ultimate supervision.
5. EXECUTIVE MANAGEMENT COMMITTEE
Annual Report 2021 | Corporate governance report
37Annual Report 2021 | Corporate governance report
5. EXECUTIVE MANAGEMENT COMMITTEE
• Pieter Loose (through his
management company Pilovan),
Chief Executive Officer (CEO) since
2013 following 3 years as sales
engineer at the company. Master
industrial civil engineering (HoGent,
Ghent university/KULeuven). Prior
to Ekopak, Pieter held various
management roles at Hertel. He is
also vice-chairman of Watercircle,
an interest group for water
technology companies in Belgium.
Belgian nationality
• Els De Keukelaere* (through her
management company EDK
Management BV ), Chief Financial
Officer (CFO) since 2020. Master
in applied economics (UGent,
Ghent university), MBA in financial
management (Vlerick Business
School), Registered Accountant
since 2004. Previous career roles
include: auditor at KPMG Ghent
and chief financial officer of
Concordia Insurances (Ghent).
Belgian nationality.
• Tim De Maet, Chief Operating
Officer (COO) since 2020 following
9 years as operation manager with
the company. Master industrial
engineering chemistry with a
specialisation in environmental
biotechnology (HoGent, Ghent).
Over 15 years of experience in the
water solutions industry, including
Entaco NV and Micron NV. Belgian
nationality
* In the prospectus for Ekopak’s IPO, it was mentioned that the contract with
EDK Management ran until end of February 2022. This contract has been
converted to a contract of indefinite duration, with standard termination
clauses.
** Appointed to the Executive Committee of Ekopak effective January 1, 2022
A more detailed resume of each member of Executive Management Committee
can be found at:
https://ekopaksustainablewater.com/investor-relations/
corporate-governance/management-board-of-directors/
• Niels D’Haese**, Chief Commercial
Officer (CCO) since the beginning
of 2022. Master in Environmental
Engineering from the University
of Ghent. Prior to joining Ekopak
mid-2021, Niels was General
Manager of the water division at
DEME Environmental Contractors.
He has 14 years of experience
and held various positions at
Epas (Veolia), Suez (Benelux,
International)
• Joost Van Der Spurt, Chief
Technology Officer (CTO) since 2014.
Master in Chemical Engineering from
the University of Leuven. Eight years
of experience in the water industry,
focusing on process management,
research and development, as well
as automation.
• Anne-Mie Veermeer, Chief
Disinfection Officer (CDO) since
2006. Master of Engineering with
a specialisation in Chemistry and
Biochemistry (KULeuven, Campus
Ghent). Before joining the Issuer,
Anne-Mie worked for four years
as a quality manager in R&D at
a company specialised in the
preparation of ready-to-eat
acuum-packed dishes and meal
components.
Composition
38
Risk Management
Ekopak’s business is subject to a number of risks. If one or more of these risks arise, Ekopak may
be unable to execute its strategy and implement its business plan.
Risk Management process
Ekopak’s Executive Management Team is responsible for
the identification, the assessment and the prioritisation
of key risk factors as well as for the development and
implementation of programs for risk prevention, risk
mitigation and risk coverage.
Therefore, the company has installed a process to
manage the key risk factors that it may be confronted
with. For each risk category, the Executive Management
Teams assesses the likelihood of occurrence as well as the
magnitude of impact should they actually occur. Based
on this in-depth assessment, the risk categories are
plotted on a grid that indicates how these risk categories
should be prioritised.
Taking the risk prioritisation into account, the Executive
Management Team identifies how the related risk can be
prevented, how the impact can be mitigated when a risk
actually occurs, and whether the impact can be covered
by an insurance policy.
Throughout the year, the Executive Management Team
reports on a quarterly basis to Ekopak’s Audit Committee,
who supervises the company’s entire risk management
process.
At least once a year, but in practice on a continuous basis,
the Audit Committee conducts an in-depth review of all
potential risk factors in concertation with the Executive
Management Team. At such occasion, new risk factors
may be formally identified and included in the program.
Subsequently, the Audit Committee presents the mutually
agreed plan to the Board of Directors for formal approval.
Upon the Board’s decision in this respect, the Executive
Committee is commissioned to implement the correspon-
ding action plan and to report on its status on a regular
basis to the Audit Committee.
Annual Report 2021 | Corporate governance report
6. RISK MANAGEMENT
39
2021 Risk Management review
For 2021, the identified risk factors were the following :
• Risk of Unavailability of Raw Materials. Ekopak’s
containerised water purification systems require specific
raw materials to operate. While these raw materials
are typically broadly available, some of them have
become scarce in the past few months. Any interruption
in the supply chain may have a negative impact on
Ekopak’s operations. Ekopak mitigates this risk factor by
implementing a diversified procurement approach and
a balanced inventory policy.
• Risk of Price Increases of Raw Materials. Along with the
risk of supply chain interruptions and stock breaks, the
scarcity of specific raw materials leads to price hikes,
which negatively affect Ekopak’s business when they
would occur. Ekopak mitigates this risk factor by including
this potential factor in each contract negotiation, both
with clients and suppliers, and by closely monitoring how
the agreement is applied in reality.
• IT & Cyber Security Risk. Ekopak’s operations highly
depend on the proper functioning of its IT systems,
whether they are running on on-site hardware or ‘in the
cloud’. Any disruption of these IT systems, whether for
technical reasons or because of hacking, would have a
major negative impact on Ekopak’s operations. Ekopak
mitigates this risk factor by creating vigilance and
awareness among its staff together with the necessary
IT security measures taken. Ekopak has also subscribed
a cybersecurity policy.
• Credit risk. If one or more key customers would fail to meet
its payment obligations towards Ekopak, this would have
a major impact on Ekopak’s financial situation. Invoices
related to the investment goods of non-WaaS project
refer to significant amounts. While the invoice amounts
for WaaS-projects are relative lower, they, too, would
have a material adverse impact on Ekopak’s mid- and
long-term financial situation. Ekopak has developed a
sound process for credit collection.
• Protection of Know-How. Ekopak’s know-how and
technology are not protected by patents or design
registrations. Failure to adequately protect know-how
could allow clients and, by extension, competitors to
copy or reverse-engineer (the functioning of) Ekopak’s
water purification solutions. Ekopak carefully selects
the most appropriate technology for each specific
installation, but is not contractually bound by any
specific technology and can adopt new technologies
as they come available. The application of technology
is extremely “installation-specific”, thus limiting the risk
for duplication.
• Human Capital Risk. Ekopak might fail to retain existing
key management, R&D and/or engineering staff, and/
or might fail to attract and train new highly-qualified
personnel, which could have a material adverse effect on
Ekopak’s business. If key staff would leave the company
for a competitor, this would result in a ‘brain drain’
that would also have a material adverse effect on the
company’s operations. Ekopak is an attractive employer,
mainly based on its reputation as a recently listed
growth-driven company and on its ESG-commitment.
• Litigation Risk. Ekopak’s operations are subject to
stringent environmental, health and safety laws
and regulations, which could expose the Company
to environmental liability and significant increase
compliance costs and litigation. Underperformance
of Ekopak’s systems installed at the client’s site, for
whatever reasons – whether or not under the control
of Ekopak, may also lead to litigation, thus negatively
affecting the company’s situation. Ekopak’s strategic
transition towards the WaaS business model mitigates
this risk, which is -albeit limited in number- mainly related
to non-WaaS installations.
• Operational Risk. If material failure would occur at
Ekopak’s installations at the client’s site, this may
involve significant repair costs as well as compensation
payments and litigation costs, which could have a
material negative effect on the company’s financial
situation. Ekopak mitigates this risk by a permanent
monitoring system, combined with sufficient stock levels
for crucial SKU’s.
Preventive programmes and mitigation plans have been developed for each of these risk categories,
and have been approved by the Board of Directors.
Annual Report 2021 | Corporate governance report
40
Corporate Governance Statement 2021
In order to meet the requirements for the Corporate Governance Statement, as specified by
the Belgian law of 3 September 2017 on the disclosure of non-financial and diversity-related
information, the above information is complemented by the following.
Corporate Governance Charter –
Articles of Association – Dealing Code
Ekopak has adopted a Corporate Governance Charter
that is in line with the Belgian 2020 Corporate Governance
Code, and which is published on the company’s website,
along with the Articles of Association (as amended by the
Extraordinary General Shareholders’ Meeting of 2021) and
the Dealing Code.
• Corporate Governance Charter
https://ekopaksustainablewater.com/app/uploads/
2021/03/Ekopak-Corporate-governance-charter.pdf
• Articles of Association
https://ekopaksustainablewater.com/app/uploads/
2021/04/Ekopak-Gecoo%CC%88rdineerde-statuten-
08.04.2021.pdf
• Dealing Code
https://ekopaksustainablewater.com/app/uploads/
2021/04/Ekopak-Dealing-Code.pdf
Compliance statement to the Belgian
2020 Corporate Governance Code
Ekopak applies the ten corporate governance principles
contained in the Belgian 2020 Corporate Governance
Code and intends to comply with the corporate
governance provisions set forth in the Belgian 2020
Corporate Governance Code, as authorised by the
“comply or explain” principle. The provisions for which
Ekopak is non-compliant are listed hereunder, along with
an explanation for this non-compliance:
• Provision 2.19: the powers of the members of the Executive
Management other than the CEO are determined by
the CEO rather than by the Board of Directors. This
deviation is explained by the fact that the members of
the Executive Management Committee perform their
functions under the leadership of the CEO, to whom the
day-to-day management and additional well-defined
powers were delegated by the Board of Directors.
• Provision 3.4: the Board of Directors only include 2
independent directors. This deviation is explained by the
small size of the current Board of Directors. At the IPO
of March 2021, Ekopak announced its intention to have
a third independent director appointed within a period
of 18 months (i.e. before the end of September 2022).
• Provision 4.14: no independent internal audit function
has been established. This deviation is explained by the
current size of the Company. The Audit Committee will
yearly assess the need for the creation of an independent
internal audit function and, where appropriate, will call
upon external persons to conduct specific internal audit
assignments and will inform the Board of Directors of
their outcome.
• Provision 7.6: the non-executive members of the Board of
Directors do not receive part of their remuneration in the
form of Ekopak shares. This deviation is explained by the
fact that the interests of the non-executive members
of the Board of Directors are currently considered to be
sufficiently oriented to the creation of long-term value
for the Company. However, Ekopak intends to review
this provision in the future in order to align its corporate
governance with the provisions of the Belgian 2020
Corporate Governance Code.
• Provision 7.8: the members of the Executive
Management Committee do not receive any variable
remuneration related to the overall corporate and
individual performance. Ekopak justifies the absence
of a variable remuneration of the members of the
Executive Management Committee in the light of the
fact that their interests are already sufficiently aligned
with the sustainable value-creation objectives of the
Company, also taking into account the shares and
ESOP warrants held by certain of the members of the
Executive Management Committee. The remuneration
policy, that will be submitted for approval at the General
Shareholders’ meeting on 10 May 2022, contains the
possibility of a variable remuneration for the members of
the Executive Management Committee.
• Provision 7.9: no minimum threshold of Ekopak shares to
be held by the members of the Executive Management
Committee has yet been set. This deviation is explained
by the fact that the interests of the members of the
Executive Management Committee are currently
considered to be sufficiently oriented to the creation of
long-term value for the Company, also considering the
fact that some of them hold ESOP warrants, the value
of which is based on the value of the Ekopak shares.
Therefore, setting a minimum threshold of Ekopak shares
to be held by them is not deemed necessary. However,
Ekopak intends to review this in the future in order to
align its corporate governance with the provisions of
Belgian 2020 Corporate Governance Code.
Annual Report 2021 | Corporate governance report
7. CORPORATE GOVERNANCE STATEMENT 2021
41
Remuneration
statement
Remuneration policy
In 2021, the Remuneration and Nomination Committee
developed the framework for a coherent remuneration
policy for Ekopak.
The remuneration policy will be submitted for approval to
the Annual Shareholder Meeting of May 2022.
Remuneration report 2021
This report covers the 2021 remuneration of the board
members, of the Chief Executive Officer (CEO) and of the
other members of the Executive Committee. Please note
that the remuneration of Niels D’Haese is not included in
Part C, as his membership of the Executive Committee
was effective only as of 1 January 2022.
A. 2021 Remuneration of the board members
For 2021, no distinction is made between executive and
non-executive directors with regard to their remuneration
as members of the board of directors. The 2021 base
remuneration was set at €15,000 per director and €25,000
for the chairman of the board. Considering the fact that
the board of directors became operational following
the IPO of 31 March 2021, it was agreed to adjust the
2021 remuneration on a proportional base, i.e. for three
quarters only. For 2021, no additional remuneration was
provided for a mandate in any of the board committees.
In 2021, Tim De Maet was not granted any remuneration
for his mandate in the board of directors. Upon his
nomination as board member, however he was granted
10,000 warrants. No other members of the board hold
warrants.
The actual board remuneration for 2021 is reflected in the
table below.
Crescemus BV (Chairman) €18,750
EDK Management BV €11,250
BJVS BV €11,250
Kristina Loguinova €11,250
Pilovan BV €11,250
Regine Slagmulder BV €11,250
Total board remuneration 2021 €75,000
B. 2021 Remuneration of the Chief Executive Officer (CEO)
In addition to the remuneration of Pilovan BV for his board
mandate, Pilovan BV was also granted the following
remuneration in 2021 in his capacity as CEO.
Base remuneration €168,330 67%
Bonus €84,165 33%
Total CEO remuneration
2021
€252,495 100%
Annual Report 2021 | Corporate governance report
8. REMUNERATION STATEMENT
42
C. 2021 Remuneration of the Executive Committee,
excluding the CEO
The 2021 remuneration of the Executive Committee is
detailed hereunder, but excludes the remuneration of the
CEO as this has been detailed in the table above. The
remuneration for members of the Executive Committee
who also hold a mandate in the board comes on top
of their board remuneration. The amounts included in
the table hereunder refer to the remuneration of EDK
Management BV, Tim De Maet, Joost Van Der Spurt
and Annie-Mie Veermeer. The remuneration of Niels
D’Haese is not included because his membership of the
Executive Committee became effective 1 January 2022.
At his appointment, Niels D’Haese was granted 5,000
warrants.Asalreadymentioned,TimDeMaetwasgran-
ted 10,000 warrants. Joost Van Der Spurt was granted
10,000 warrants. Anne-Mie Veermeer was granted 10,000
warrants. Beside them, no other member of the Executive
Committee holds any warrants. For more information
regardinga.o.priceanddateofexercise,werefertheIFRS
FinancialStatements.
Base remuneration €328,326.76 64.9%
Bonus €60,000.00 11.9%
other compensation compo-
nents(companycarandfuel
card, laptop, phone, luncheon
voucher etc.); €105,044.84 20.8%
Hospitalization insurance €1,538.09 0.3%
Group insurance €11,213.76 2.2%
Total 2021 remuneration €506,123.45 100%
In 2021, Ekopak has continued to reward the members of
the Executive Committee in accordance with its existing
practice.
As Ekopak is quoted since 31 March 2021, the remuneration
policy will be submitted to the General Shareholders’
meetingon10May2022.Thebonusespaidareinlinewith
the amounts listed in the prospectus.
Diversity policy
Considering Ekopak’s current business size and the fact
thatitssharesareonlylistedsince31March2021,Ekopak
isexemptedtoadoptandpublishaDiversitypolicyatthis
stage.Ekopakvaluesworkforcediversityandstrivestoact
withrespectofdiversityatalltimes.Aformalpolicywillbe
developed in the future.
Anti-fraud measures
Considering Ekopak’s current business size and the fact
thatitssharesareonlylistedsince31March2021,Ekopak
is exempted to adopt and publish formal anti-fraud
measures. At present, Ekopak conducts audits at regular
intervals, with the purpose to deter fraud and to detect
itinatimelymanner.Aformalsetofanti-fraudmeasures
will be developed in the future, in addition to the Dealing
Code,whichisalreadyinplace(cf.aboveinthissection).
Annual Report 2021 | Corporate governance report
43Annual Report 2021 | Declaration
Declaration regarding the information
given in the Annual Report 2021
The undersigned declare that:
• The annual accounts, which are in line with the standards
applicable for annual accounts, give a true and fair view
of the capital, the financial situation and the results of
the issuer and the consolidated companies.
• The annual report gives a true and fair view of the
development and the results of the company and of the
position of the issuer and the consolidated companies, as
well as a description of the main risks and uncertainties
they are faced with
Pieter Loose — CEO
Els De Keukelaere — CFO
44
Share Price Evolution 2021
Ekopak Bel20
Apr May Jun Jul Aug Sep Oct Nov Dec
10%
0%
20%
Apr May Jun Jul Aug Sep Oct Nov Dec
19
18
17
16
15
14
Price
Price
Information about
the Ekopak share
Annual Report 2021 | Information
Shareholder structure
Total number of outstanding
shares: 14,824,642 (100%)
Total number of shares held
by reference shareholders and
related parties: 11,533,072 (77.80%)
Free float: 3,291,570 (22.20%)
Share transactions
Since 31 March 2021, the Ekopak
shares are listed oncker EKOP).
Total number of trades in 2021: 20,128
Total number of shares
traded in 2021:
2,142,601
Average number of shares per
transaction in 2021: 106
Daily average number of shares
traded: 10,932
Highest daily number of shares
traded (date):
235,768
(7 April 2021)
Lowest daily number of shares
traded (date):
482
(21 October 2021)
Share velocity 2021: 0.14
Free Float Share velocity 2021: 0.65
Total volume (in EUR)
traded in 2021:
€37,957,061
Market Capitalisation 31
December 2021:
€266,250,570.32
Share price
Highest closing price
(date):
€19.00
(6 April 2021)
Lowest closing price
(date):
€ 15.00
(31 March 2021)
Average closing price: €17.357
Closing price 31 December 2021: €17.96
Highest intraday price
(date):
€22.80
(7 April 2021)
Lowest intraday price (date): €14.70
(31 March 2021)
Final Placement Price at
initial listing
€14.00
(31 March 2021)
Since 31 March 2021, the Ekopak shares are listed on
Euronext Brussels (ticker EKOP).
45Annual Report 2021 | Contents
Core report → 1 - 30
1. — Intro → 1
2021: strong performance and
strategic decisions
2. — Interview → 3
If you can have a big impact,
you should go for it
3. — Highlights 2021 → 5
3.1. Key Figures 2021 → 5
3.2. Operational Highlights → 7
3.3. Outlook 2022 → 9
4. — About Ekopak → 10
4.1. What do we do? → 11
4.2. Timeline of our Growth → 15
4.3 An ongoing journey → 17
5. — Context and Trends → 18
5.1. intro → 19
6.1. Value chain → 20
6. — Ekopak’s sustainable growth → 21
6.1. The process → 22
6.2. Renewable water use → 25
6.3. Safe water use → 27
6.4. Eko-wolfpack → 28
6.5. Responsible asset management → 29
6.6. Water-as-a-Service → 30
Contents
TABLE OF CONTENTS
Corporate Governance
Report → 31 - 43
1. — Shareholder Structure → 32
2. — Annual Shareholder Meeting → 32
3. — Board of Directors → 33
3.1. Composition → 33
3.2. Assignments → 34
3.3. Activity Report → 34
4. — Committees of the Board of Directors → 35
4.1. Audit Committee → 35
4.2. Remuneration & Nomination
Committee → 35
5. — Executive Management Committee → 36
6. — Risk Management → 38
6.1. Risk Management process → 38
6.2. 2021 Risk Management review → 39
7. — Corporate Governance statement 2021 → 40
8. — Remuneration statement → 41
Declaration information → 43
Information about the
Ekopak share → 44
Financial Report
→ 1 - 66
1. — IFRS Consolidated Financials Statements → 1
2. —
Notes tot he IFRS Consolidated Statements
→ 8
3. — Supplementary information → 57
4. — Statutory auditor’s report → 61
FINANCIAL REPORT 2021
IFRS Consolidated Financial Statements ........................................................................................................................................ 1
1. Consolidated statement of profit or loss .......................................................................................................................... 1
2. Consolidated statement of comprehensive income ......................................................................................................... 2
3. Consolidated statement of financial position ................................................................................................................... 3
4. Consolidated statement of changes in equity .................................................................................................................. 5
5. Consolidated statement of cash flows ............................................................................................................................. 6
Notes to the IFRS Consolidated Financial Statements .................................................................................................................... 8
1. Corporate information ...................................................................................................................................................... 8
2. Significant accounting policies ......................................................................................................................................... 8
3. New and revised standards not yet adopted ................................................................................................................. 22
4. Significant accounting judgments, estimates and assumptions ..................................................................................... 23
5. Operating segments ...................................................................................................................................................... 25
6. Business combinations .................................................................................................................................................. 28
7. Income and expenses .................................................................................................................................................... 29
8. Income and deferred taxes ............................................................................................................................................ 31
9. Intangible assets ............................................................................................................................................................ 33
10. Goodwill ......................................................................................................................................................................... 34
11. Property, Plant and Equipment ...................................................................................................................................... 35
12. Leases ........................................................................................................................................................................... 37
13. Inventory ........................................................................................................................................................................ 40
14. Contract assets, trade and other receivables ................................................................................................................ 40
15. Cash and cash equivalents ............................................................................................................................................ 41
16. Equity ............................................................................................................................................................................. 41
17. Earnings per share ........................................................................................................................................................ 43
18. Provisions and defined benefit obligations .................................................................................................................... 44
19. Fair value ....................................................................................................................................................................... 48
20. Borrowing and lease liabilities ....................................................................................................................................... 50
21. Short term liabilities ....................................................................................................................................................... 52
22. Capital management ...................................................................................................................................................... 52
23. Financial risk management ............................................................................................................................................ 53
24. Related party disclosures .............................................................................................................................................. 55
25. Events after the reporting period ................................................................................................................................... 55
26. Auditor fees .................................................................................................................................................................... 56
27. Interests in other entities ................................................................................................................................................ 56
28. NON-GAAP Measures ................................................................................................................................................... 56
Supplementary information ............................................................................................................................................................ 57
1. Balance sheet after appropriation .................................................................................................................................. 58
2. Income statement .......................................................................................................................................................... 60
3. Proposed appropriation of Ekopak NV result ................................................................................................................. 60
Statutory auditor’s report ................................................................................................................................................................ 61
1. Report on the consolidated accounts ............................................................................................................................ 61
2. Valuation of contract assets ........................................................................................................................................... 62
3. Valuation of construction in progress (DBFMO) ............................................................................................................ 63
4. Other legal and regulatory requirements ....................................................................................................................... 65
IFRS CONSOLIDATED FINANCIAL STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 1
IFRS Consolidated Financial Statements
1. Consolidated statement of profit or loss
for the year ending
December 31
in 000€
Notes
2021
2020
Revenue
5
Other operating income
7
Operating income
Purchases of materials
7
-5.243
-6.394
Services and other goods
7
-3.167
-1.006
Employee benefit expense
7
-2.777
-1.580
Depreciation charges
9,11,12
-953
-623
Other operating charges
7
-32
-151
Operating profit / (loss)
-611
Financial expenses
7
-166
-149
Financial income
7
Loss before taxes
-748
-118
Income taxes
8
Net loss for the year *
-700
-93
Earnings per share attributable to the owners of the parent
Basic
17
-0,05
-0,01
Diluted
17
-0,05
-0,01
* The net loss for the year is full attributable to the owners of the parent
The accompanying notes on pages 8 to 56 form an integral part of these IFRS Consolidated Financial
Statements.
IFRS CONSOLIDATED FINANCIAL STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 2
2. Consolidated statement of comprehensive income
for the year ending
December 31
in 000€
Notes
2021
2020
Net loss for the year
-700
-93
Other comprehensive loss
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations, net of
tax
18
-157
-11
Other comprehensive loss, net of tax
-157
-11
Total comprehensive loss for the year, net of tax *
-857
-104
* The total comprehensive loss for the year is full attributable to the owners of the parent
The accompanying notes on pages 8 to 56 form an integral part of these IFRS Consolidated Financial
Statements.
IFRS CONSOLIDATED FINANCIAL STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 3
3. Consolidated statement of financial position
At December 31
in 000€
Notes
2021
2020
Assets
Non-current assets
Goodwill
Intangible assets
9
Property, plant and equipment
11,12
Deferred tax assets
8
Other financial assets
Total non-current assets
Current assets
Contract assets
14
Inventories
13
Trade receivables
14
Other current assets
14
Cash and cash equivalents
15
Total current assets
Total assets
The accompanying notes on pages 8 to 56 form an integral part of these IFRS Consolidated Financial
Statements.
IFRS CONSOLIDATED FINANCIAL STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 4
At December 31
in 000€
Notes
2021
2020
Equity
Share capital
16
Share premium
16
Restricted reserve - share capital
16
Other reserves
16
-2.345
Accumulated (loss)/profit
-859
-159
Equity attributable to the owners of the parent
Total equity
Liabilities
Non-current liabilities
Borrowings
20
Lease liabilities
12, 20
Deferred tax liabilities
8
Provisions
18
Total non-current liabilities
Current liabilities
Borrowings
20
Lease liabilities
12, 20
Trade and other payables
21
Tax payables
8
Contract liabilities
21
−
−
Other current liabilities
21
Total current liabilities
Total liabilities
Total equity and liabilities
The accompanying notes on pages 8 to 56 form an integral part of these IFRS Financial Statements.
IFRS CONSOLIDATED FINANCIAL STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 5
4. Consolidated statement of changes in equity
in 000€
Share
capital
Share premium
Restricted
reserve - share
capital
Other reserves
Accumulated
(loss)/profit
Total equity
attributable to
the owners of
the parent
Total
equity
At January 1, 2020
Net profit
-93
-93
-93
Other comprehensive loss
-11
-11
-11
Total comprehensive (loss)/profit
-11
-93
-104
-104
Dividends paid
-300
-300
-300
At December 31, 2020
-159
in 000€
Share
capital
Share premium
Restricted
reserve - share
capital
Other reserves
Accumulated
(loss)/profit
Total equity
attributable to
the owners of
the parent
Total
equity
At January 1, 2021
-159
Net loss
-700
-700
-700
Other comprehensive loss
-157
-157
-157
Total comprehensive loss
-157
-700
-857
-857
Capital increase
Share issue costs net of tax
-2.259
-2.259
-2.259
Share based payment expense
Transfers within equity
-5.162
At December 31, 2021
-2.345
-859
The accompanying notes on pages 8 to 56 form an integral part of these IFRS Consolidated Financial Statements.
IFRS CONSOLIDATED FINANCIAL STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 6
5. Consolidated statement of cash flows
For year ending
December 31
in 000€
Notes
2021
2020
Operating activities
Net (loss)/profit
-700
-93
Non-cash and operational adjustments
Depreciation of property, plant & equipment and ROU assets
11, 12
Amortization of intangible assets
9
Gain/(loss) on disposal of property, plant & equipment
11
-2
Increase in provisions
18
-68
Impairments on receivables
7
Interest and other finance income
7
-29
-4
Interest and other finance expense
7
Deferred tax expense
8
-58
-30
Tax expense
8
Equity settled share based payment expense
IFRS 16 - gain on early termination of lease
12
-13
-4
Net cash flow (used in)/from operating activities before working
capital movements
Movements in working capital
Decrease/(Increase) in trade and other receivables
14
-448
Increase in inventories
13
-893
-99
(decrease)/increase in trade and other payables
21
-990
Use of provisions
18
-85
Decrease in contract assets
14
-1.033
-4
Increase/(decrease) in cash guarantees
-15
Increase/(decrease) in deferred revenue
Income tax received/(paid)
8
-44
Interests paid
7
-121
-122
Interests received
7
Net cash flow (used in)/from operating activities
-414
-539
Investing activities
Purchase of property, plant and equipment
11
-10.220
-1.221
Purchase of intangible assets
9
-150
-73
Proceeds from the sale of property, plant and equipment
11
Acquisition of subsidiary, less the acquired cash
6
-1.063
Net cash flow used in investing activities
-11.392
-1.289
IFRS CONSOLIDATED FINANCIAL STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 7
Financing activities
Proceeds from borrowings
20
Repayment of borrowings
20
-842
-1.316
Repayment of leases
12, 20
-290
-167
Receipts from capital increase
16
Share issue costs
-3.013
-3
Dividends paid
16
-300
Other financial expense, net
-17
-23
Net cash flow (used in)/from financing activities
-1.109
Net cash flow
-2.937
Cash and cash equivalents at beginning of year
15
Cash & cash equivalents at end of year
15
The accompanying notes on pages 8 to 56 form an integral part of these IFRS Consolidated Financial
Statements
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 8
Notes to the IFRS Consolidated Financial Statements
1. Corporate information
domiciled in Belgium quoted on Euronext. The registered office is located at 13 Careelstraat, 8700 Tielt in
Ekopak is a technology company who is principally engaged in designing, building, financing and
Information on other related party relationships of the Company is provided in Note 24.
The IFRS Consolidated Financial Statements (further referred as „the consolidated financial statements“)
of Ekopak NV for the year ended December 31, 2021 were authorised for issue in accordance with a
resolution of the directors on March 21, 2022.
2. Significant accounting policies
2.1. Basis of preparation
The consolidated financial statements of the Company have been prepared in accordance with the
International Financial Reporting Standards („IFRS“) and as adopted by the European Union („adopted
IFRS“) and interpretations issued by the IFRS interpretation committee applicable to companies reporting
under IFRS.
The consolidated financial statements are presented in euros and all values are rounded to the nearest
thousand (€000), except when otherwise indicated.
The preparation of consolidated financial statements in compliance with adopted IFRS requires the use
of certain critical accounting estimates. It also requires Group management to exercise judgment in
applying the Company’s accounting policies. The areas where significant judgements and estimates
have been made in preparing the consolidated financial statements and their effect are disclosed in
Note 4. The accounting policies have been applied consistently and are prepared on a going concern
basis considering the following:
• the Company has a good liquidity position with a cash position of KEUR 42.100 and a positive
working capital position (current assets minus current liabilities) of KEUR 44.608 as of December
31, 2021.
• the Company has a net cash flow from operating activities of KEUR -414 in 2021, however the
net cash flow from operating activities before working capital adjustments was positive for the
amount of KEUR 384.
• The COVID-19 impact on the Company was limited during 2021. There was a slight temporarily
drop in production and service capacity due to personnel absence as a consequence of the
COVID 19 pandemic.
There are no impairment indicators since the Company expects a further growth in revenue and
improvement in operating results in the future.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 9
2.2. Principles of consolidation
2.2.1. Subsidiaries
Subsidiaries are all entities over which the group has control. The group controls an entity where the group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to the group. They are deconsolidated from
the date that control ceases.
Inter-company transactions, balances and unrealized gains on transactions between group companies
are eliminated. Unrealized losses are also eliminated unless the transaction provides evidence of an
impairment of the transferred asset. Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by the group.
The subsidiary Water-as-a-Service NV has been established as per July 16, 2020. The subsidiary has an
extended financial year, ending on December 31, 2021. For consolidation purposes, the subsidiary has
been closed on December 31, 2020 and on December 31, 2021. The subsidiary iServ BV was acquired
through a business combination on April 23, 2021, we refer to note 6 for more information. For
consolidation purposes, the figures of iServ BV are included as of April 30, 2021. The impact of the
difference between moment of completion of the acquisition (April 23) and the moment of inclusion of
the figures of iServ (April 30) is considered immaterial with respect to the Consolidated Financial
Statements.
The subsidiary Ekopak France has been established as per September 14, 2021 and has a first closing date
on December 31, 2021.
2.3. Summary of significant accounting policies
2.3.1. Foreign currency translation
The Company’s consolidated financial statements are presented in euros. The Company’s functional
currency is euro.
Foreign currency transactions
Transactions denominated in foreign currencies are translated into euro at the exchange rate at the end
of the previous month-end. Monetary items in the consolidated statement of financial position are
translated at the closing rate at each reporting date and the relevant translation adjustments are
recognized in financial result.
2.3.2. Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker. The chief operating decisionmaker, who is responsible for allocating resources
and assessing performance of the operating segments, has been identified as the Chief Executive Officer.
Operating segments have similar economic characteristics and are determined based on:
• the nature of the products and services.
• the type and characteristics of the contract (one off sales model, sales of consumables,
services model, DBMO and DBFMO model). The DBFMO model and the operational part of the
DBMO model are also commercially known as Water-as-a-Service (WaaS).
• whether the customer controls the water process installation or not.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 10
2.3.3. Revenue
The Company is in the business of designing, building, financing and operating industrial water processing
installations. Revenue from contracts with customers is recognized when control of the goods or services
are transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services. The Company has generally concluded
that it is the principal in its revenue arrangements, because it typically controls the goods or services
before transferring them to the customer. The normal credit term is 30 days net of invoice.
The Company has 3 revenue streams, being the traditional sales model, the DBMO (Design, Build, Maintain
and Operate) model and the DBFMO (Design, Build, Finance, Maintain and Operate) model. The DBFMO
model and the operational part of the DBMO model are also commercially known as Water-as-a-Service
(WaaS). In addition, the Company sells consumables to customers operating a sold process water or
disinfection installation as well as servicing such installations.
Sale of consumables
Contracts under this type of revenue stream have one single performance obligation which is the sale of
consumables and spare parts. Revenue is recognized at a point in time, being usually when the control
over the products is transferred to the customer upon shipment.
Services
Service contracts have one single performance obligation which is the service of process water and
desinfection installations. Revenue is recognized over time, being a rato of the services performed.
One off sales of process water and disinfection installations
Contracts under this type of revenue stream have one single performance obligation which is the design,
build and delivery of the installation with a fixed transaction price. Revenue is recognized over time, which
is the period of the development and construction of the process water installation until delivery and
installation at the customer premises as the installation has no alternative use for the Company and an
enforceable right to payment exist for the performance to date. Revenue is recognized based on the
actual progress and expected margin at the end of the reporting period.
Design, Build, Maintain and Operate installations - DBMO
Contracts under this type of revenue typically consist of two distinct performance obligations, being the
Design, Build and Maintain (“DBM”) of the installation and the Operating of the installation. Revenue will
be allocated to each distinct performance obligation based on its relative stand-alone selling price over
the transaction price. In general, the contractual price for each distinct performance obligation is similar
to its relative stand-alone selling price over the transaction price, i.e. any discounts are already allocated
in the contract to each distinct performance obligation.
Revenue for the DBM is recognized over time, which is the period of the development and construction
of the process water installation until delivery and installation at the customer premises. Revenue is
recognized based on the actual progress and expected margin at the end of the reporting period.
Revenue from the operating of the process water installation is recognized over time, being monthly,
when the services are performed. The price consists of a monthly fixed fee and a variable fee based on
the output. The operating agreement is cancellable by the customer without reason at any time without
significant financial penalty and long notice period.
Design, Build, Finance, Maintain and Operate installations – DBFMO - WaaS
Contracts under this type of revenue typically consist of a single separate performance obligation, being
the operating of the installation as the customer does not control the water process installation during the
non-cancellable term of the contract (10 up to 15 years).
Revenue from the operating of the process water installation is recognized over time, which is the
contractual non-cancellable term of the Operating agreement (10 up to 15 years). The services are
invoiced monthly. The price mainly consists of a monthly fixed fee and a variable fee based on the output.
Contract costs related to the design and build of the water installation process are recognized as a
DBFMO installation in property, plant and equipment.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 11
The Company considers whether there are other promises in the contract that are separate performance
obligations to which a portion of the transaction price needs to be allocated (e.g., warranties). In
determining the transaction price for the sale and operating of the process water installations, the
Company considers the effects of variable consideration, existence of a significant financing
component, non-cash consideration, and consideration payable to the customer (if any).
Variable consideration
If the consideration in a contract includes a variable amount, the Company estimates the amount of
consideration to which it will be entitled in exchange for transferring the goods to the customer. The
variable consideration is estimated at contract inception and constrained until it is highly probable that
a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the
associated uncertainty with the variable consideration is subsequently resolved. Most of the contracts
which include operating of the process water installations, contain a variable price based on the volume
output of water. The variable fee is invoiced monthly based on the actual volume output of water of the
month, together with the monthly fixed fee.
Some contracts for the operating of the process water installations include considerations payable to the
customer, i.e. in case tap water used in excess of a certain threshold. The variable price components and
considerations payable to the customer give rise to variable consideration.
Considerations payable to the customer
Some contracts contain clauses whereby there is a consideration payable to the customer in case the
delivery of water is not coming from the process water installation but from tap water and when in excess
of a certain threshold. The Company applies the most likely amount method to estimate this variable
consideration in the contract. The Company then applies the requirements on constraining estimates of
variable consideration (highly probable that no significant revenue reversal will occur) in order to
determine the amount of variable consideration that can be included in the transaction price and
recognized as revenue.
Significant financing component
The Company receives advance payments from customers for the sale of process water installations with
a manufacturing lead time of three to six months after signing the contract and receipt of payment. There
is not a significant financing component for these contracts considering the length of time between the
customers’ payment and the transfer of the asset.
The Company applies the practical expedient for short-term advances received from customers. That is,
the promised amount of consideration is not adjusted for the effects of a significant financing component
if the period between the transfer of the promised good or service and the payment is one year or less.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 12
Contract balances
Contract assets
Contract assets are initially recognized for revenue earned from the design and build of the water process
installation in the one off sales model and from the DBM part of a DBMO transaction, but which are not
billed. Upon completion of the building and installation of the water process installation, the amount
recognized as contract assets is reclassified to trade receivables. Contract assets are presented as a
separate line in the consolidated statement of financial position.
Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the Company
has received consideration (or an amount of consideration is due) from the customer. If a customer pays
consideration before the Company transfers goods or services to the customer, a contract liability is
recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities
are recognized as revenue when the Company performs under the contract. Contract liabilities are
presented in the line other current liabilities in the consolidated statement of financial position.
Costs to fulfil a contract
The Company does incur costs to fulfill a contract which, when they are not in scope of another standard,
are accounted for as contract asset. For the DBFMO contracts, the Company may incur costs to fulfill a
non-distinct performance obligation which are accounted for as a DBFMO installation within property,
plant and equipment. The Company evaluates whether those costs meet the recognition criteria for
property, plant and equipment and when criteria are not met, expenses those costs as incurred.
2.3.4. Financing costs
Financing costs relate to interests and other costs incurred by the Company related to the borrowing of
funds. Such costs mostly relate to interest charges on short and long-term borrowings and lease liabilities
as well as the amortization of additional costs incurred on the issuance of the related debt. Financing
costs are recognized in profit and loss for the year or capitalized in case they are related to a qualifying
asset.
2.3.5. Other financial income and expenses
Other financial income and expenses include mainly foreign currency gains or losses on financial
transactions and bank related expenses.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 13
2.3.6. Income tax
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted at the reporting date in Belgium where the Company operates
and generates taxable income.
Current income tax relating to items recognized directly in equity is recognized in equity and not in the
consolidated statement of profit or loss. Management periodically evaluates positions taken in the tax
returns with respect to situations in which applicable tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred income tax
Deferred income tax is provided in full, using the liability method, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial
statements.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are
recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax
losses, to the extent that it is probable that taxable profit will be available against which the deductible
temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred
tax asset to be utilised. Unrecognized deferred tax assets are reassessed at each reporting date and are
recognized to the extent that it has become probable that future taxable profits will allow the deferred
tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current income tax liabilities and the deferred taxes relate to the same taxable
entity and the same taxation authority.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 14
2.3.7. Intangible assets other than goodwill
Intangible assets comprise primarily software and design components of containers used for the water
process installations. Intangible assets acquired separately are measured on initial recognition at cost.
Following initial recognition, intangible assets are carried at cost less any accumulated amortization and
accumulated impairment losses. The Company does not have internally generated intangibles assets.
Intangible assets are amortized straight-line over the useful life, which is:
• Software & cloud platform related assets: 3 to 5 years
• Design components: 3 years.
The amortization period and the amortization method for an intangible asset with a finite useful life are
reviewed at least at the end of each reporting period. The amortization expense on intangible assets is
recognized in the consolidated statement of profit or loss in the expense category „depreciation
charges“.
An intangible asset is derecognized upon disposal (i.e., at the date the recipient obtains control) or when
no future economic benefits are expected from its use or disposal. Any gain or loss arising upon
derecognition of the asset (calculated as the difference between the net disposal proceeds and the
carrying amount of the asset) is included in the consolidated statement of profit or loss.
2.3.8. Goodwill
Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred
and the amount recognized for non-controlling interests and any previous interest held over the net
identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess
of the aggregate consideration transferred, the Group re-assesses whether it has correctly identified all
of the assets acquired and all of the liabilities assumed and reviews the procedures used to measure the
amounts to be recognized at the acquisition date. If the reassessment still results in an excess of the fair
value of net assets acquired over the aggregate consideration transferred, then the gain is recognized.
After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the
purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Group’s cash-generating units that are expected to benefit from the
combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units.
Where goodwill has been allocated to a cash-generating unit (CGU) and part of the operation within
that unit is disposed of, the goodwill associated with the disposed operation is included in the carrying
amount of the operation when determining the gain or loss on disposal. Goodwill disposed in these
circumstances is measured based on the relative values of the disposed operation and the portion of the
cash-generating unit retained.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 15
2.3.9. Property, plant and equipment
Property, plant and equipment are stated at cost less any accumulated depreciation and any
impairment losses. Construction in progress is stated at cost, net of accumulated impairment losses, if any.
The cost comprises the initial purchase price plus other direct purchase costs (such as non-refundable tax,
transport). The cost of self-constructed equipment (primarily water process installations under the DBMFO
revenue model) comprises the cost of materials, direct labour costs and a proportional part of the
production overheads and borrowing costs in case the construction would be more than 12 months.
The residual values, useful lives and methods of depreciation of property, plant and equipment are
reviewed at each financial year end and adjusted prospectively, if appropriate.
Major spare parts that fulfill the definition of property, plant and equipment are capitalized as machinery
and equipment. These spare parts will be used to replace malfunctioning or expired components. These
spare parts are, unlike the spare parts included in inventories, not sold to the customers.
Depreciation and useful life
Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows:
Buildings
10 to 20 years
Plant, machinery and equipment
5 to 10 years
Computer equipment
2 to 3 years
DBMFO installations
10 to 15 years
Membranes in DBMFO installations
4 years
Leased assets
Shorter of the useful life or the duration of the lease
or useful life in case the Company will obtain
ownership of the asset at the end of the lease
Derecognition
An item of property, plant and equipment and any significant part initially recognized is derecognized
upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the
difference between the net disposal proceeds and the carrying amount of the asset) is included in the
consolidated statement of profit or loss when the asset is derecognized.
2.3.10. Leases
The Company assesses at contract inception whether a contract is, or contains, a lease. That is, if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration.
The Company leases office buildings and vehicles. Rental contracts are typically made for fixed periods
of 36 months to 5 years but may have extension options as described below. Contracts may contain both
lease and non-lease components. The Company has applied the practical expedient not to separate
non-lease components for all lease categories.
Lease terms are negotiated on an individual basis and contain a wide range of different terms and
conditions. The lease agreements do not impose any covenants other than the security interests in the
leased assets that are held by the lessor. Leased assets may not be used as security for borrowing
purposes.
Assets and liabilities arising from a lease are initially measured on a present value basis.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 16
Lease liabilities
Lease liabilities include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments), less any lease incentives receivable
• variable lease payment that are based on an index or a rate, initially measured using the index
or rate as at the commencement date
• amounts expected to be payable by the Company under residual value guarantees
• the exercise price of a purchase option if the Company is reasonably certain to exercise that
option, and
• payments of penalties for terminating the lease, if the lease term reflects the Company exercising
that option.
Lease payments to be made under reasonably certain extension options are also included in the
measurement of the liability. The lease payments are discounted using the interest rate implicit in the
lease. The Company has applied the portfolio approach to determine the interest rate implicit in the lease
for similar lease assets with similar characteristics. The interest rate applied for the portfolio is determined
based on the average interest rate implicit in each lease of the portfolio.
The lease payments do generally not include variable lease payments (e.g. based on an index or rate).
In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in
the lease term, a change in the lease payments (e.g., changes to future payments resulting from a
change in an index or rate used to determine such lease payments) or a change in the assessment of an
option to purchase the underlying asset.
Right-of-use assets
Right-of-use assets are measured at cost comprising the following:
• the amount of the initial measurement of lease liability,
• any lease payments made at or before the commencement date less any lease incentives
received,
• any initial direct costs,
• and adjusted for any remeasurement of lease liabilities.
Right-of-use assets are generally depreciated over the shorter of the asset's useful life and the lease term
on a straight-line basis. If the Company is reasonably certain to exercise a purchase option, the right-of-
use asset is depreciated over the underlying asset’s useful life.
Short-term and low value assets
The Company applies the short-term lease recognition exemption to its short-term leases of vehicles (i.e.
those leases that have a lease term of 12 months or less from the commencement date and do not
contain a purchase option). The Company has no payments associated with low-value assets.
Residual value guarantees
The Company sometimes provides residual value guarantees in relation to vehicle leases. The Company
initially estimates the amounts payable under the residual value guarantees to be zero.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 17
2.3.11. Impairments of assets
Non-financial assets and goodwill are tested for impairment whenever events or changes in
circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its
recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal
and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for
which there are separately identifiable cash inflows which are largely independent of the cash inflows
from other assets or groups of assets (cash-generating units).
2.3.12. Inventories
Inventories are valued at the lower of cost and net realizable value. Costs incurred in bringing each
product to its present location and condition are accounted for, as follows:
• Raw materials: purchase cost on a first-in/first-out basis
• Spare-parts and servicing materials: purchase cost on a first-in/first-out basis.
Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs
of completion and the estimated costs necessary to make the sale.
2.3.13. Financial assets
The Company has only financial assets measured at amortized cost. Those include trade and other
receivables, and cash and cash equivalents.
Cash and cash equivalents comprise cash at banks and on hand and short-term highly liquid deposits
with a maturity of three months or less, that are readily convertible to a known amount of cash and subject
to an insignificant risk of changes in value. Bank overdrafts are shown within borrowings in current liabilities
in the consolidated statement of financial position.
Trade and other receivables are recognized initially at the amount of consideration that is unconditional.
Those financial assets do generally not include a significant financing component.
Other receivables include receivables on vendors packaging guarantee which is the price paid to the
vendors for the packaging. The Company does recognize such as receivable when the guarantee is paid
to the vendor.
Impairment of financial assets
The Company determines the value of the allowance for losses (impairment) on each reporting date. It
recognizes this impairment for credit losses to be expected during the term of all financial instruments for
which the credit risk – whether on an individual or collective basis – has increased significantly since initial
recognition, taking into account all reasonable and substantiated information, including forward-looking
information. In case the credit risk is low, the 12-month expected credit losses are recognized.
For trade receivables, the Company applies the simplified approach, which requires expected lifetime
losses to be recognized from initial recognition of the receivables. Based on the historical information and
any available forward looking information, the expected credit losses are not material.
For the receivable on vendor packaging guarantee, the Company recognizes an impairment equal to
the amount of the receivables that have an origination date of 24 months or later. This impairment equals
the reversal of the payables to the customers in relation to the packaging guarantee paid and which
have origination date of 24 months or later.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 18
Derecognition
A financial asset is primarily derecognized when
(i) the rights to receive cash flows from the asset have expired, or
(ii) the Company has transferred its rights to receive cash flows from the asset or has assumed
an obligation to pay the received cash flows in full without material delay to a third party
under a ‘pass-through’ arrangement; and either
a. the Company has transferred substantially all the risks and rewards of the asset, or
b. the Company has neither transferred nor retained substantially all the risks and rewards
of the asset, but has transferred control of the asset.
2.3.14. Financial liabilities
The Company has financial liabilities measured at amortized cost which include loans and borrowings,
lease liabilities, trade payables and other payables. Other payables include the payable towards the
customer for the packaging guarantee paid. The Company adjusted the liability for all payables which
have an origination date of 24 months or later, consistent with the impairment on the receivable on the
vendor in relation to the packaging guarantee paid by the Company.
Those financial liabilities are recognized initially at fair value plus directly attributable transaction costs
and are measured at amortized cost using the effective interest rate method. Gains and losses are
recognized in the consolidated income statement when the liabilities are derecognized as well as through
the effective interest rate method amortization process.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled or
expires.
2.3.15. Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
statement of financial position if there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.
2.3.16. Provisions
The Company has only provision for disputes and litigations. A provision is recognized when the Company
has a present obligation (legal or constructive) as a result of a past event, when it is probable that an
outflow of resources will be required to settle the obligation and when a reliable estimate can be made
of the amount of the obligation.
If the Company expects that some or all of the expenditure required settling a provision will be reimbursed,
a separate asset is recognized once it is virtually certain that the reimbursement will be received.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in
the provision due to the passage of time is recognized as a finance cost.
Onerous contracts
If the Company has a contract that is onerous, the present obligation under the contract is recognized
and measured as a provision. However, before a separate provision for an onerous contract is
established, the Company recognizes any impairment loss that has occurred on assets dedicated to that
contract. An onerous contract is a contract under which the unavoidable costs (i.e., the costs that the
Company cannot avoid because it has the contract) of meeting the obligations under the contract
exceed the economic benefits expected to be received under it. The unavoidable costs under a
contract reflect the least net cost of exiting from the contract, which is the lower of the cost of fulfilling it
and any compensation or penalties arising from failure to fulfil it. The cost of fulfilling a contract comprises
the costs that relate directly to the contract (i.e., both incremental costs and an allocation of costs directly
related to contract activities).
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 19
2.3.17. Employee benefits
Pension commitments
The Company has two active Belgian “branche 23” pension plans (for executive and for the employees).
Those plans provide a retirement lump sum and a death in service coverage with employer’s contribution
is expressed as a percentage of a reference salary. There are no employee contributions to the plans.
The company has also two dormant Belgian “branche 21” pension plans (for executive and for the
employees). As of July 1, 2021 employer contributions for new and existing employees are made with
respect to the active “branche 23” pensions plans.
Under Belgian law, defined contribution pension plans are subject to minimum guaranteed rates of return
which, in case of the Company, equal 1,75% for all contributions. Because of these minimum guaranteed
rates of return, those pension plans are considered as a defined benefit plan under IFRS. The cost of
providing benefits is determined using the projected unit credit method, with actuarial valuations being
carried out at the end of each annual reporting period.
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding
amounts included in net interest on the net defined benefit liability and the return on plan assets
(excluding amounts included in net interest on the net defined benefit liability), are recognized
immediately in the consolidated statement of financial position with a corresponding debit or credit to
retained earnings through OCI in the period in which they occur. Remeasurements are not reclassified to
profit or loss in subsequent periods.
Past service costs are recognized in profit or loss on the earlier of:
• The date of the plan amendment or curtailment, and
• The date that the Company recognizes related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The
Company recognizes the following changes in the net defined benefit obligation in the consolidated
statement of profit or loss:
• Service costs comprising current service costs, past-service costs, gains and losses on curtailments
and non-routine settlements
• Net interest expense or income
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 20
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits, annual leave and accumulating sick
leave that are expected to be settled wholly within 12 months after the end of the period in which the
employees render the related service are recognized in respect of employees’ services up to the end of
the reporting period and are measured at the amounts expected to be paid when the liabilities are
settled. The liabilities are presented as other current payables in the consolidated statement of financial
position.
Share-based payments
Share-based compensation benefits are provided to employees via an employee stock ownership plan
(ESOP). Information relating to these plans is set out in note 16. The plans are equity-settled plans as they
will be settled by issuing new shares of the Company and there is no obligation for the Company to deliver
cash or another financial asset.
The fair value of warrants granted under the ESOP plan is recognized as an employee benefits expense,
with a corresponding increase in equity. The total amount to be expensed is determined by reference to
the fair value of the options granted. The ESOP plan only has a service performance vesting conditions
which are further detailed in note 16.
The total expense is recognized over the vesting period, which is the period over which all of the specified
vesting conditions are to be satisfied. At the end of each period, the entity revises its estimates of the
number of options that are expected to vest based on the non-market vesting and service conditions. It
recognizes the impact of the revision to original estimates, if any, in profit or loss, with a corresponding
adjustment to equity.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 21
2.3.18. Equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares incurred before the equity contribution
is presented as other current assets and reclassified as a deduction in equity, net of tax, from the proceeds
upon the equity contribution.
2.3.19. Dividends
Dividends paid are recognized within the consolidated statement of changes in equity only when an
obligation to pay the dividends arises prior to the year end.
2.3.20. Fair value measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is based
on the presumption that the transaction to sell the asset or transfer the liability takes place either in the
principal market for the asset or liability or in the absence of a principal market, in the most advantageous
market for the asset or liability. The principal or the most advantageous market must be accessible by the
Company. The fair value of an asset or a liability is measured using the assumptions that market
participants would use when pricing the asset or liability, assuming that market participants act in their
economic best interest.
All assets and liabilities for which fair value is measured or disclosed in the consolidated financial
statements are categorized within the fair value hierarchy, described as follows, based on the lowest level
input that is significant to the fair value measurement as a whole:
• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities
• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable
• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 22
3. New and revised standards not yet adopted
Certain new accounting standards and interpretations have been published that are not mandatory for
31 December 2021 reporting periods and have not been early adopted by the Company. These
standards are not expected to have a material impact on the entity in the current or future reporting
periods and on foreseeable future transactions.
The following amendments to standards are mandatory for the first time for the financial year beginning
1 January 2021 and have been endorsed by the European Union:
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase
2 (effective 01/01/2021). These amendments address issues that might affect financial reporting
after the reform of an interest rate benchmark, including its replacement with alternative
benchmark rates. The amendments are effective for annual periods beginning on or after 1
January 2021, with earlier application permitted.
• Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions (effective 01/06/2020, with
early application permitted). If certain conditions are met, the Amendment would permit lessees,
as a practical expedient, not to assess whether particular covid-19-related rent concessions are
lease modifications. Instead, lessees that apply the practical expedient would account for those
rent concessions as if they were not lease modifications.
The following new standard and amendments have been issued, are not mandatory for the first time for
the financial year beginning 1 January 2021 but have been endorsed by the European Union:
• Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions beyond 30 June 2021
(effective 01/04/2021, with early application permitted). The amendments extend, by one year,
the May 2020 amendment that provides lessees with an exemption from assessing whether a
COVID-19-related rent concession is a lease modification. In particular, the amendment permits
a lessee to apply the practical expedient regarding COVID-19-related rent concessions to rent
concessions for which any reduction in lease payments affects only payments originally due on
or before 30 June 2022 (rather than only payments originally due on or before 30 June 2021). The
amendment is effective for annual reporting periods beginning on or after 1 April 2021 (earlier
application permitted, including in financial statements not yet authorised for issue at the date
the amendment is issued).
• Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37
Provisions, Contingent Liabilities and Contingent Assets as well as Annual Improvements (effective
1 January 2022). The package of amendments includes narrow-scope amendments to three
Standards as well as the Board’s Annual Improvements, which are changes that clarify the
wording or correct minor consequences, oversights or conflicts between requirements in the
Standards.
Ø Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the
Conceptual Framework for Financial Reporting without changing the accounting
requirements for business combinations.
Ø Amendments to IAS 16 Property, Plant and Equipment prohibit a company from
deducting from the cost of property, plant and equipment amounts received from selling
items produced while the company is preparing the asset for its intended use. Instead, a
company will recognize such sales proceeds and related cost in profit or loss.
Ø Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify
which costs a company includes when assessing whether a contract will be loss-making.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 23
4. Significant accounting judgments, estimates and assumptions
The preparation of the Company’s consolidated financial statements requires management to make
judgments, estimates and assumptions that affect the reported amounts of revenue, expenses, assets
and liabilities, and the accompanying disclosures. Uncertainty about these assumptions and estimates
could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities
for future periods.
On an ongoing basis, the Company evaluates its estimates, assumptions and judgments, including those
related to revenue recognition – work in progress and assumptions applied when measuring the defined
benefit obligation for the Company insurance plan.
The Company based its assumptions and estimates on parameters available when the consolidated
financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising beyond the control of the
Company. Such changes are reflected in the assumptions when they occur.
4.1. DBFMO arrangements – assessment whether these contracts contain a lease
The Company has contracts with customers in place for sales under the DBFMO model as explained in
the accounting policies. The assessment of whether a contract is or contains a lease may require
judgement in applying the definition of a lease to those DBFMO arrangements. A DBFMO arrangement
include significant services, so determining whether the contract conveys the right to direct the use of an
identified asset may be judgemental.
At inception of the contract, the Company assesses whether the 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 Company has judged that the DBFMO arrangements do not contain a lease, although the customer
obtains all of the economic benefits of the water process installation, because:
• There is no identified asset. Substantive substitution rights are in place for the Company
throughout the period of use as the Company may, at its own discretion, replace the assets with
another asset that produces the same volume and quality of water. In a DBFMO contract, the
Company performance obligation is the delivery of a minimum volume of water, which meet the
contractual quality requirements, during the contract term. In addition, the process water
installation is built in a removal container which is easily to transport and connect to the customer
installations and water tank. This substitution right is considered substantive by the Company as
due to changing technology, the Company does want to optimise and improve, from a cost
benefit, its manufacturing process of the required volume and quality water to be delivered to
the customer.
• The customer is not able to direct the use of the asset as the responsibility to operate and maintain
the water process installation is only with the Company and are only permitted to have access
to observe the water process installation. The installation delivers the volume of water in a buffer
tank owned by the customer. The contractual delivery of a minimum volume of water is the
combination of the output of the water process installation and tap water. The Company can
decide, at its own discretion and for a time decided by the Company, to stop the water process
production for maintenance or other reasons.
As a result, the WaaS arrangements are accounted for in accordance with IFRS 15 contracts with
customers.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 24
4.2. Revenue recognized over time – performance obligation to design and build
a process water installation
The Company recognized revenue under the one off sales model and the DBMO model for the
construction of the water process installation over time, i.e. over the period when the installation is being
designed and build. In determining the revenue to be recognized at the end of the reporting period, the
Company has estimate the (i) progress over time and (ii) the margin that will be realized for the project.
The progress over time is estimated based on the direct costs incurred versus the total budgeted costs.
The budget costs and the estimated margin on the project for the design and build of the process water
installation is reviewed and, if necessary, revised at each reporting period.
4.3. Defined benefit plan
The Company has two active group insurance plans with minimum guaranteed return of 1,75% which are
accounted for as a defined benefit plan. The Company makes use of an expert in performing the
actuarial calculations using the project unit credit method. The actuarial calculation requires significant
estimate with regards to the discount rate, inflation rate, salary increases and withdrawal rate. In making
those estimates, management together with the expert make use of objective sources and historical
information. More information on the estimate is provided in Note 18.
The company has also two dormant group insurance plans (for executive and for the employees). As of
July 1, 2021 employer contributions for new and existing employees are made with respect to the active
“branche 23” pension plans.
4.4. Recognition of deferred tax assets over tax losses carried forward
Deferred taxes are recognized for unused tax losses to the extent that it is probable that taxable profit will
be available against which the losses can be utilized. Significant management judgement is required to
determine the amount of deferred tax assets that can be recognized, based upon the likely timing and
the level of future taxable profits, together with future tax planning strategies.
The Company has KEUR 3.785 of tax losses carried forward. These losses do not expire and are not related
to structural losses, but relating to IPO related costs deducted in the fiscal result. The Company has
recognized deferred tax assets over tax losses carried forward for a total amount of KEUR 946. The
Company has determined it can recognize deferred tax assets on the tax losses carried forward, since
the Company expects an increase in revenue and operating profit resulting from the increasing
importance of the DBFMO business model in the near future and as such is convinced that the tax losses
carried forward will be recovered in the near future.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 25
5. Operating segments
For management purposes, the Company is organized as from 2019 in two business units based on
product and service and the related performance obligations. The two reportable operating segments
are the following:
• Non-Waas model (which include the traditional sales, recurring services, consumables and short-
term rental sales): the contracts with the customer are to design and build a process water
installation, ownership and control over the process water installation is transferred to customer.
iServ is included in the Non-Waas model as of April 23, 2021.
• Water-As-A-Service (“WaaS”) model (which include the DBFMO contracts and the operating
sales of the DBMO contracts): the contract with the customer is in substance the delivery, during
the contractual period, of a guaranteed minimum volume of water which meet the contractual
quality requirements under the DBFMO contracts. Under the DBMO contracts, eventually, at the
discretion of the customer, a cancellable operating agreement is signed between the Company
and the customer to maintain and operate the process water installation.
These segments are reflected in the organization structure and the internal reporting. No operating
segments have been aggregated to form the above reportable operating segments. The measurement
principles used by the Company in preparing this segment reporting are also the basis for segment
performance assessment and are in conformity with IFRS. The Chief Executive Officer of the Company
acts as the chief operating decision maker. As a performance indicator, the chief operating decision
maker controls the performance by the Company’s revenue, adjusted EBITDA and EBITDA. The line item
expenses from claims can be reconciled to note 7.3.
The following table summarizes the segment reporting for the year ending December 31, 2021.
in 000€
NON-WAAS
WAAS
TOTAL
SEGMENTS
CORP-
ORATE
TOTAL
CONSO-
LIDATED
Revenue
10.046
1.205
11.251
−
11.251
Other operating income
310
−
310
−
310
Purchases of materials
-5.082
-161
-5.243
−
-5.243
Services and other goods
-1.751
-42
-1.793
-1.374
-3.167
Employee benefit expense
-2.588
-160
-2.748
-29
-2.777
Other operating charges, net, without
expenses from claims
-100
-3
-104
0
-104
Adjusted EBITDA
834
839
1.673
-1.403
270
Expenses from claims
72
−
72
−
72
EBITDA
906
839
1.745
-1.403
342
Depreciation charges
-667
-286
-953
−
-953
Operating profit / (loss)
239
553
792
-1.403
-611
Financial expenses
−
−
−
-166
-166
Financial income
−
−
−
29
29
Profit (loss) before tax
239
553
792
-1.540
-748
Segment assets
56.037
11.386
67.423
−
67.423
Segment liabilities
7.735
1.105
8.840
−
8.840
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 26
The column ‘Corporate’ included in the line item ‘Services and other goods’ relate to group charges
amounting to KEUR 437 and IPO related costs including professional fees amounting to KEUR 572 and
management fees amounting to KEUR 13. The group charges were as per interim financial statements
still included in the segment profit for an amount of KEUR 133. The group will restate the segment
reporting in the interim financial statements of 2022 for the comparative period.
The following table summarizes the segment reporting for the year ending December 31, 2020.
in 000€
NON-WAAS
WAAS
TOTAL
SEGMENTS
Revenue
9.014
465
9.479
Other operating income
302
−
302
Purchases of materials
-6.258
-136
-6.394
Services and other goods
-1.006
−
-1.006
Employee benefit expense
-1.564
-16
-1.580
Other operating charges, net, without expenses from claims
-92
−
-92
Adjusted EBITDA
396
313
709
Expenses from claims
-59
−
-59
EBITDA
337
313
650
Depreciation charges
-447
-176
-623
Operating profit / (loss)
-110
137
27
Financial expenses
-128
-21
-149
Financial income
4
−
4
Profit (loss) before tax
-234
116
-118
Segment assets
9.777
2.110
11.887
Segment liabilities
5.560
1.312
6.872
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 27
The revenue by product and service can be presented by product as follows:
in 000€
2021
2020
Consumables
1.856
2.072
Services
3.740
2.550
WaaS revenue
1.205
465
One off sales of water process installations
4.449
4.392
Total revenue by product type
11.251
9.479
Revenue of mainly all products and services is satisfied over time for the WaaS revenue, one off sales of
water process installations and services performed under a service contract. Revenue related to
consumables and single services is satisfied at a certain point in time.
The revenue can be presented by geographical area, based on the country in which the customer is
domiciled, as follows:
in 000€
2021
2020
Belgium
9.012
7.129
France
403
217
Netherlands
542
309
United Kingdom
14
7
Luxembourg
934
1.651
Other countries
347
166
Total revenue by geography
11.251
9.479
Most non-current assets are located in the country of domicile, Belgium . A total of KEUR 99 non-current
assets are located in France.
The Company has one customer which revenue present 17% (KEUR 1.525) of total revenues of the „Non-
Waas“ segment in the year 2021.
The Company has three customers which revenue present 16%, 16% and 12% (KEUR 1.623, KEUR 1.588 and
KEUR 1.226) of total revenue of the „Non-Waas“ segment in the year 2020.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 28
6. Business combinations
The Group acquired on April 23, 2021 100% of the shares in iServ BV. iServ BV is a specialized service
provider for the treatment of water, based in Genk. The target market of iServ consists of producers and
companies active in water treatment and companies that need to treat their water for use in their
industrial applications, production or services. The acquisition creates opportunities for the steady growth
of Ekopak in the sector of ecological water treatment and strengthens Ekopak’s presence on the Belgian
territory. The acquisition enables Ekopak to focus even more on quick customer service.
The enterprise value of iServ BV in the transaction amounts to KEUR 1.611.
The identification and valuation of the fair value of the assets and liabilities of iServ are presented below:
in 000€
Fair value
Non-current assets
474
Working capital
480
Cash and cash equivalents
167
Financial debt
-549
Other assets and liabilities
-377
Total identified assets and liabilities
195
Goodwill
1.035
Fair value compensation
1.230
The fair value adjustment of the intangible assets relates to the recognition of the customer list for an
amount of KEUR 81. The fair value adjustment of the inventory for KEUR -77 relates to the step-down of
inventory. The deferred tax liability recognized resulting from the fair value adjustments amounts to KEUR
28
The transaction resulted in the recognition of goodwill for an amount of KEUR 1.035, which mainly
represent the expected synergies with other Group entities. The goodwill is non-deductible for tax
purposes.
If the acquisition would have taken place on January 1, 2021, the contribution to revenue would have
been KEUR 2.397 and the contribution to net result would have been KEUR 23. Since acquisition date, the
contribution to revenue was KEUR 1.361 and the contribution to net result was KEUR 63.
The increase in the headcount resulting from the acquisition is 14, in full time equivalents the increase is
7,59 as the employees are included since 23 April 2021.
The reconciliation with the consolidated statement of cash flows is presented below:
Fair value compensation
-1.230
Cash acquired
167
Acquisition of subsidiaries, net of cash
-1.063
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 29
7. Income and expenses
7.1. Purchases, services and other goods
in 000€
2021
2020
Purchase of materials
-4.142
-5.115
Other purchases
-1.101
-1.279
Total purchases of materials
-5.243
-6.394
Rent charges
-126
-31
Repair and maintenance
-134
-76
Utilities
-28
-16
Fuel
-146
-72
Small materials
-166
-37
Postage and website costs
-133
-52
Professional fees
-1.128
-204
Insurance fees
-149
-59
Transport related expenses
-84
-16
Fees for outsourcing engineering and interim personnel
-177
-37
Management fees
-604
-266
Other services
-293
-140
Total Services and other goods
-3.167
-1.006
The purchase of equipment materials relates to the materials purchased for the building of the water
process installations. The other purchases are related to outsourced production capacity. We note that
the comparative figures of 2020 have been reclassified to include a more consistent presentation of the
total purchases of materials as explained above. The purchases of materials in 2021 were reduced with
KEUR 4.739 (2020: KEUR 430) as a consequence of the capitalization of WaaS installations.
The rent charges comprise the rent of an iServ installation subrented to a customer.
The increase in repair and maintenance, small materials and interim personnel can be explained by the
increase in business activities. Insurance fees, fuel and transport related expenses have increased given
the surge in FTEs. Additionally insurance fees comprise a new D&O policy.
The professional fees include the fees paid to the accountants, lawyer, design agency, recruitment
agency and other service providers to the Company and contain IPO related costs for an amount of
KEUR 572.
Management fees include the directors remunerations and fees for management active through a
management company. IPO related costs amount to KEUR 13.
Other services comprise mainly marketing, IT and communication expenses.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 30
7.2. Employee benefits expenses
in 000€
2021
2020
Gross Salaries
-1.944
-1.089
Social Security charges
-364
-204
Group Insurance
-75
-70
Share based payment costs
-60
−
Other Insurance
-27
-18
Other payroll charges
-306
-199
Total employee benefit expenses
-2.777
-1.580
The Company had an average of 54,4 FTE during 2021 (32,3 FTE during 2020). The gross salaries in 2021
were decreased with the labour cost amounting to 782 KEUR (2020: KEUR 533). These costs are capitalized
in the context of the production of WaaS installations.
7.3. Other operating charges
in 000€
2021
2020
Non-deductible taxes & contributions
-24
-15
Traffic loads
-11
-21
(Reversal of) write-offs on receivables
-39
-12
Claims (settlement & provisions, net)
72
-59
Loss on receivables
−
-30
Other operating charges
-29
-14
Total other operating charges
-32
-151
7.4. Financial expenses and income
in 000€
2021
2020
Interest charges - borrowings
-107
-89
Interest charges - lease liabilities
-14
-33
Bank charges
-42
-19
Other financial expenses
-3
-8
Financial expenses
-166
-149
Exchange differences
0
1
Payment discounts and differences
28
2
Interest income
1
1
Financial income
29
4
Net financial result
-136
-145
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 31
8. Income and deferred taxes
The major components of income tax expense are:
for the year ending 31st
December
in 000€
2021
2020
Consolidated statement of profit or loss
Current income tax:
Estimated tax liability for the year
10
5
Deferred income tax:
Relating to origination and reversal of temporary differences
29
82
Relating to tax loss carried forward
-840
-112
of which has been recorded directly in equity (other reserves)
753
−
Income tax expense reported in the consolidated statement of profit or loss
-48
-25
Consolidated statement of other comprehensive income
Deferred tax related to items recognized in OCI during the year:
Remeasurement loss on actuarial gains and losses
-52
-4
Deferred tax charged to OCI
-52
-4
Reconciliation of tax expense and the accounting profit multiplied by Ekopak’s domestic tax rate is as
follows:
in 000€
2021
2020
Profit before tax
-748
-118
Tax expense at the statutory tax rate of 25%
-187
-30
Disallowed expenses
69
42
Minimum tax
9
−
Prepaid share issue costs
52
-52
Other
9
15
Income tax expense
-48
-25
The domestic tax rate is 25% for both 2021and 2020.
The deferred taxes are explained as follows:
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 32
Consolidated statement
of financial position
Consoli-
dated
statement
of profit or
loss & OCI
Acquisition
of
subsidiary
At December 31
For the
year-
ending
December
31
in 000€
2021
2020
2021
2021
Tax losses
946
112
834
−
Pension liabilities
73
20
53
−
Leases
14
20
-6
−
Offsetting of deferred tax
-10
-10
−
−
Total deferred tax assets
1.023
142
881
−
Property, plant & equipment
-10
-10
−
−
Intangible assets
-15
−
5
-20
Inventory valuation
-4
−
-23
19
Offsetting of deferred tax
10
10
−
−
Total deferred tax liabilities
-19
−
-18
-1
Net deferred tax asset
1.004
142
Total deferred tax (expense)/income in P&L
58
Total deferred tax (expense)/income in OCI
52
−
Total deferred tax (expense)/income in other
reserves
753
−
The Company has a total of KEUR 3.785 tax loss carryforwards for which a deferred tax assets has been
recognized. The tax loss carryforwards will be utilized in the coming years when taxable profits are
generated. The tax loss carryforward do not expire.
The Company did not recognize deferred tax assets on the tax loss carryforward of the subsidiaries of
Ekopak NV that have merged as disclosed in note 25 - Events after the reporting period, since the tax loss
carryforward of those subsidiaries will be lost since the merger.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 33
9. Intangible assets
The changes in the carrying value of the intangible assets at December 31, 2021and 2020 can be
presented as follows:
in 000€
Customer list
Software
Other intangible
assets
Total
Acquisition value
At January 1, 2020
−
64
38
102
Additions
−
73
−
73
Disposals
−
-17
−
-17
At December 31, 2020
−
120
38
158
Additions
−
150
−
150
Business combinations
81
7
−
88
Disposals
−
-23
−
-23
At 31st December 2021
81
254
38
373
Amortization
At January 1, 2020
−
-39
-13
-52
Additions
−
-16
-13
-29
Disposals
−
13
−
13
At December 31, 2020
−
-42
-26
-68
Additions
-22
-44
-12
-78
Business combinations
−
-4
−
-4
Disposals
−
22
−
22
At December 31, 2021
-22
-68
-38
-128
Net carrying value
At January 1, 2020
−
25
25
50
At December 31, 2020
−
78
12
90
At December 31, 2021
59
186
−
245
The intangible assets as per December 31, 2021 consist of software, other intangible assets and customer
list.
The software relates to capitalized standard software purchased or licensed from third parties and the
cloudplatform used for monitoring of the service activities. The other intangible assets are mainly
consisting of an electronic 3D design components library for which external expenses of technical
designers have been capitalized.
The customer list results from the business combination of iServ BV which is disclosed in note 6. The
customer list is depreciated straight line over 2,5 years.
The total net increase in intangibles resulting from the business combination of iServ BV amounts to KEUR
84 and is presented in the line item non-current assets as disclosed in note 6.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 34
10. Goodwill
The changes in the carrying value of goodwill at December 31, 2021and 2020 can be presented as
follows:
Goodwill
Acquisition value
At December 31, 2020
−
Business combinations
1.035
At 31st December 2021
1.035
Amortization
At December 31, 2020
−
At December 31, 2021
−
Net carrying value
At December 31, 2020
−
At December 31, 2021
1.035
The group distinguishes two cash generating units (CGUs): WaaS and Non WaaS. The goodwill relates to
the acquisition of iServ BV and has been allocated to the CGU WaaS.
As per December 31, 2021 the Group performed an impairment analysis on the goodwill based upon a
discounted cash flow method that contains cash flows for the following four years and a residual value
as of year five. The value retrieved from the valuation model is for 99% related to the terminal value. The
estimates in the valuation method are based on experience from the past, existing agreements and
forecast looking information of existing customers and partners, supplemented where relevant with
market evolutions.
The assumptions used in the model are the pre-tax discount rate (pre-tax WACC) of 11,4%, a perpetual
growth rate of 2% and EBITDA as a percentage of sales of 69%.
The headroom is more than three times the carrying value of the CGU. Increasing the pre-tax WACC to
12,4% would decrease the headroom to more than two times the carrying value of the CGU. Decreasing
the perpetual growth rate to 0% would decrease the headroom to one times the carrying value of the
CGU. Decreasing the EBITDA as a percentage of sales to 62% would decrease the headroom to one times
the carrying value of the CGU.
Based on the above information, management concluded that no impairment losses need to be
recorded.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 35
11. Property, Plant and Equipment
The land and buildings relate to the owned properties of Ekopak that are used as production and
administrative facilities. The additions during 2021 mainly relate to the extension of the existing warehouse.
The major increase in property, plant and equipment results from the increasing number and progress of
WaaS installations under construction. As per December 31, 2020 there were three WaaS installations
included with a completion status of on average 10%. During 2021, three additional customer projects
under construction and two additional projects for rent containers under WaaS were added. As per
December 31, 2021 three WaaS installations have been completed and transferred to machinery and
equipment.
The machinery and equipment consists of warehouse equipment, computer equipment and divers tools,
equipment and machinery used for the production of installations. The machinery and equipment also
contains rent containers that are held as spare containers to be able to do replacements or repairs of
active installations, as well as consumables that are parts that will be necessary to replace in active
installations after a period of time.
The right-of-use assets mainly relate to leased vehicles and buildings, we refer to Note 12 for further
information on the right-of-use assets and related liabilities.
The land and building has part of a mortgage in favour of a bank for a total amount of KEUR 55. There
are no other restrictions or pledges on the property, plant and equipment. We refer to Note 20 for further
information on the pledges and guarantees.
The total net increase in property, plant and equipment resulting from the business combination of iServ
BV amounts to KEUR 390 and is presented in the line item non-current assets as disclosed in note 6.
The changes in the carrying value of the property, plant and equipment at December 31, 2021 and
2020 can be presented as follows:
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 36
* The additions include an amount of KEUR 88 depreciations of other assets activated as part of the cost of DBFMO installations and construction in progress.
Land and
buildings
DBFMO
Installations
Machinery and
Equipment
Office furniture
and equipment
Vehicles
Right-of-use
assets
Construction in
progress
(DBFMO)
Total
Acquisition value (in 000€)
At 1st January 2020
2.340
1.488
713
109
45
739
-0
5.434
Additions
75
69
527
2
68
261
480
1.482
Disposals
-
-
-15
-6
-1
-88
-
-110
At December 31, 2020
2.415
1.557
1.225
105
112
912
480
6.806
Additions *
32
30
216
71
313
241
9.557
10.461
Business combinations
-
-
134
25
159
194
95
607
Disposals
-
-47
-8
-3
-107
-263
-
-428
Transfers
-
5.076
-209
-
-
-18
-4.849
-
At December 31, 2021
2.447
6.616
1.358
198
477
1.066
5.283
17.446
Depreciation (in 000€)
At 1st January 2020
-606
-4
-353
-67
-23
-312
-
-1.364
Additions
-136
-104
-132
-12
-15
-194
-
-593
Disposals
-
-
15
6
1
77
-
99
At December 31, 2020
-742
-108
-470
-73
-37
-429
-
-1.858
Additions
-141
-286
-105
-21
-43
-279
-
-875
Business combinations
-
-
-37
-21
-159
-
-
-217
Disposals
-
23
7
3
68
244
-
345
Transfers
-
-144
126
-
-
18
-
-
At December 31, 2021
-883
-515
-479
-112
-171
-445
-
-2.605
Net book value
At January 1, 2020
1.734
1.484
360
42
22
428
-0
4.070
At December 31, 2020
1.673
1.449
755
32
75
484
480
4.948
At December 31, 2021
1.564
6.102
879
86
306
621
5.283
14.842
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 37
12. Leases
This note provides information for leases where the Company is a lessee. There are no leases where the
Company is a lessor. The Company leases office buildings and vehicles. Rental contracts are made for
fixed periods of 3 to 5 years. Contracts may contain both lease and non-lease components.
Lease terms are negotiated on an individual basis. The lease agreements do not impose any covenants
other than the security interests in the leased assets that are held by the lessor.
A number of contracts have a lease term of less than 12 months. Ekopak applies the short-term exemption
for these contracts.
The consolidated statement of financial positions presents the following amounts relating to leases:
At December 31
in 000€
2021
2020
Right-of-use assets
Land and buildings
206
−
Machinery and equipment
0
0
Vehicles
415
484
Total right-of-use assets
621
484
Lease liabilities
Current
282
236
Non-current
393
326
Total lease liabilities
675
562
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 38
Below are the carrying amounts of right-of-use assets recognized and the movements during the years:
in 000€
Land and
buildings
Machinery
and
equipment
Vehicles
Total
Acquisition value
At January 1, 2020
−
25
714
739
Additions
−
−
261
261
Disposals
−
-7
-81
-88
At December 31, 2020
−
18
894
912
Additions
146
−
95
241
Business combinations
113
−
81
194
Disposals
−
−
-263
-263
Transfers
−
-18
−
-18
At December 31, 2021
259
-0
807
1.066
Depreciation
At January 1, 2020
−
-22
-289
-312
Depreciation charge for the year
−
-3
-191
-194
Disposals
−
7
70
77
At December 31, 2020
−
-18
-410
-429
Depreciation charge for the year
-53
−
-225
-279
Disposals
−
−
244
244
Transfers
−
18
−
18
At December 31, 2021
-53
-0
-392
-445
Net book value
At January 1, 2020
−
3
425
428
At December 31, 2020
−
0
484
484
At December 31, 2021
206
-0
415
621
The disposals and early termination is combined as disposals in the right-of-use assets category of Note
11.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 39
Below are the values for the movements in lease liability during the years:
in 000€
Lease
Liability
At January 1, 2020
484
Additions
261
Early termination
-15
Payments
-167
At December 31, 2020
562
Additions
241
Business combinations
194
Early termination
-32
Payments
-290
At December 31, 2021
675
The following amounts are recognized in the consolidated income statement:
in 000€
2021
2020
Depreciation expense of right-of-use assets
-279
-194
Interest expense on lease liabilities
-9
-32
Gain on disposal of IFRS16 assets
13
4
Expense relating to short-term leases and low-value assets
-126
-31
Total amount recognized in the consolidated income statement
-401
-253
Cash-flows relating to leases are presented as follows:
• Cash payments for the principal portion of the lease liabilities as cash flows from financing
activities,
• Cash payments for the interest portion as cash flows from operating activities, and,
• Short-term lease payments, payments for leases of low-value assets and variable lease payments
that are not included in the measurement of the lease liabilities as cash flows from operating
activities.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 40
13. Inventory
The inventory consists only of goods held for resale which include spare parts and consumables that are
being used as part of the agreements with customers to operate the installation. The inventory is stated
at its cost as no impairment have been recorded.
At December 31
in 000€
2021
2020
Consumables
68
48
Spare parts
2.021
1.009
Total inventories
2.089
1.057
14. Contract assets, trade and other receivables
Contract assets
Contract assets are initially recognized for revenue earned from the design and building of the water
process installation in the one off sales model and from the DBM part of a DBMO transaction but which
are not billed.
The contract assets amount to KEUR 1.733, net of prepayments (KEUR 4.144), and KEUR 562 as per
December 31, 2021 and 2020. The contract assets are related to several open projects. The increase is
due to an increase in the number of the open projects at reporting date compared to December 31,
2020 as well as the completion status of the projects. An increase for an amount of KEUR 82 as per
December 31, 2021 is related to iServ BV.
Trade and other receivables
Trade and other receivables include the following:
At December 31
in 000€
2021
2020
Trade receivables
2.981
3.299
Receivable on vendor - packaging guarantee
45
39
VAT receivable
1.011
149
Current account - related party
−
7
Deferred charges
170
279
Other current assets
46
14
Total trade receivables and other current assets
4.253
3.787
The Company applied the IFRS 9 simplified approach to measuring expected credit losses which uses a
lifetime expected loss allowance for all trade receivables based on historical losses. The historical losses
have been very limited because the Company only works with customers active in the chemical,
pharmaceutical and food industry with outstanding credit ratings. As such the expected credit loss
provision is not material. Trade receivables are non-interest-bearing and are generally on payment terms
of 30 days net of invoice.
The receivable on vendor – packaging guarantee relates to the price paid to the vendors for the
packaging that will be reimbursed upon return of the packaging. At the same time, the Company has a
payable towards the customers for the packaging delivered to and paid by the customers. The
receivable is being reviewed regularly for expected credit losses and all receivables outstanding more
than 24 months are being fully impaired.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 41
15. Cash and cash equivalents
The cash and cash equivalents can be presented as follows:
At December 31
in 000€
2021
2020
Cash at banks and on hand
42.100
900
Saving accounts
−
400
Cash and cash equivalents
42.100
1.300
Cash and cash equivalent consists mainly of cash at banks and cash on saving accounts with an original
maturity less than 3 months. The increase of the cash position is mainly the result of the cash inflow from
the net proceeds of the IPO.
The cash and cash equivalents as disclosed above do not contain restrictions.
16. Equity
The Company has issued ordinary shares with no nominal value. The following share transactions have
taken place during the period between December 31, 2020 and December 31, 2021:
Total
number of
ordinary
shares
adjusted for
share split
(in 000
shares)
Total share
capital
in €000
Total share
premium
in €000
Restricted
reserves
in €000
Par value
per
ordinary
share
adjusted for
share split
(per share)
Outstanding at January 1, 2020
10.780
−
−
5.162
0,00
Outstanding on December 31, 2020
10.780
−
−
5.162
0,00
Outstanding at January 1, 2021
10.780
−
−
5.162
0,00
Capital increase in cash - public offering
and private placement
4.044
1.820
54.805
−
0,45
Change legal form - transfer restricted
reserves to share capital
−
4.851
311
-5.162
−
Outstanding on December 31, 2021
14.824
6.671
55.116
−
0,45
At February 19, 2021, the Company has amended its bylaws and changed the legal form resulting in a
transfer from the restricted reserves to share capital and share premium.
At March 31, 2021, the Company has issued 3.571.428 new ordinary shares through private placement for
a total issue price of KEUR 1.607. The difference between the subscription price and the issue price was
added to share premium. Share issue costs were deducted from equity for a total amount net of tax of
KEUR 2.258.
At April 8, 2021, The Company has issued 473.214 new ordinary shares for a total issue price of KEUR 213.
The difference between the subscription price and the issue price was added to share premium.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 42
The other reserves consist of the following:
At December 31
in 000€
2021
2020
Restricted reserve - legal reserve
6
6
Other reserves
-2.213
47
Share based payment reserve
60
−
Other comprehensive income:
Actuarial gains (losses) on defined benefit plans
-198
-41
Total reserves
-2.345
12
The negative other reserves are for EUR 2.3 million explained by the portion of the IPO costs (net of tax)
which was recorded directly through equity.
The Shareholders‘ meeting held in 2020 has declared a dividend of KEUR 300, over the result of 2018, paid
in 2020.
16.1. Share-based payments
On December 30, 2020, the Company has approved and issued 30,000 warrants in the context of an
employee stock ownership plan (the ESOP Warrants) to certain members of the Executive Management.
The ESOP Warrants have been granted free of charge. On December 16, 2021, the Company approved
and issued an additional 5,000 warrants.
Each ESOP Warrant entitles its holder to subscribe for one new Share at an exercise price of EUR 16.20 per
warrant under the 2020 plan and EUR 17.63 per warrant under the 2021 plan. The new Shares that will be
issued pursuant to the exercise of the ESOP Warrants, will be ordinary shares representing the capital, of
the same class as the then existing Shares, fully paid up, with voting rights and without nominal value. They
will have the same rights as the then existing Shares and will be profit sharing as from any distribution in
respect of which the relevant ex-dividend date falls after the date of their issuance.
The ESOP Warrants shall only be acquired in a final manner (“vested”) in cumulative tranches over a
period of three years as of the starting date (determined for each beneficiary separately): i.e., a first
tranche of one third vests on the first anniversary of the starting date and subsequently one third vest
each next anniversary. ESOP Warrants can only be exercised by the relevant holder of such ESOP
Warrants, provided that they have effectively vested, as of the beginning of the fourth calendar year
following the year in which the Issuer granted the ESOP Warrants to the holders thereof. As of that time,
the ESOP Warrants can be exercised during the first fifteen days of each quarter. However, the terms and
conditions of the ESOP Warrants provide that the ESOP Warrants can or must also be exercised, regardless
of whether they have vested or not, in a number of specified cases of accelerated vesting set out in the
issue and exercise conditions.
The terms and conditions of the ESOP Warrants contain customary good leaver and bad leaver provisions
in the event of termination of the professional relationship between the beneficiary and Ekopak. The terms
and conditions of the ESOP Warrants also provide that all ESOP Warrants (whether or not vested) will
become exercisable during a special exercise period to be organized by the Board in the event of certain
liquidity events. These liquidity events include (i) the dissolution and liquidation of the Issuer; (ii) a transfer
of all or substantially all assets or Shares of the Issuer; (iii) a merger, demerger or other corporate
restructuring of the Issuer resulting in the shareholders holding the majority of the voting rights in the Issuer
prior to the transaction not holding the majority of the voting rights in the surviving entity after the
transaction; (iv) the launch of a public takeover bid on the Shares; and (v) any other transaction with
substantially the same economic effect as determined by the Board of Directors.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 43
None of the warrants have vested, forfeited or are currently exercisable. The fair value of the warrants are
presented below per warrant plan based on a Black-Scholes Merton valuation model with the following
assumptions:
ESOP 2021
ESOP 2020
Share price
17,70
16,20
Exercise price
17,63
16,20
Volatility
20
%
24
%
Risk-free interest rate
-0,53
-0,66
Contractual term
5,00
5,00
Dividend yield
−
−
Fair value warrants per share
€ 3,01
€ 3,24
The volatility of the ESOP 2020 has been determined based on the average volatility of similar European
peers in the „waterwaste services“ sector. For ESOP 2021, the volatility was based on both the average
volatility of similar European peers as well as Ekopak’s volatility since listing.
The share-based payment expense per December 31, 2021 is KEUR 59.
17. Earnings per share
Basic earnings per share amounts are calculated by dividing the net profit (loss) for the year attributable
to ordinary equity holders of the parent company by the weighted average number of ordinary shares
outstanding during the year. The Company has 35,000 diluted potentially ordinary shares of the ESOP
Warrants. The Company is in a loss-making position during 2021 and 2020 and as such the potential
ordinary shares would decrease the loss per share, resulting in a non-dilutive effect. As such the basic
earnings per share equal the diluted earnings per share.
The following income and share data was used in the earnings per share computations:
in 000€, except per share data in '000
2021
2020
Net profit / (loss) attributable to ordinary equity holders of the parent for basic
earnings and diluted earnings per share
-700
-93
Weighted average number of ordinary shares for basic and diluted earnings
per share
13.828
10.780
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 44
18. Provisions and defined benefit obligations
Provisions include the following:
At December 31
in 000€
2021
2020
Provision legal claim from customers
-248
-320
Net defined benefit liability
-294
-80
Total provisions and defined benefit obligations
-542
-400
Movements in the provision legal claim from customers during the financial year are set out below:
in 000€
2021
2020
At January 1
-320
-348
Additions
-26
-57
Use
−
85
Reversals
98
−
At December 31
-248
-320
The decrease in provisions (KEUR 68) in the consolidated statement of cash flows includes the additions
and reversals from the table above for respectively the amount of KEUR 26 and KEUR 98 and KEUR 4 from
the increase in defined benefit liability for the amount included in the statement of profit and loss.
Provisions for legal claims from customers
The company has a legal claim from a customer for which it has recognized the expected indemnities to
be paid and the related professional fees and interests, in case the Company would not be able to
successfully defend the case against court or in appeal.
The claim relate to projects realized before 2018 where the customer claims that the water quality and
volume produced do not meet the contractual requirements
The claim has not yet been settled as per year-end 2021 and is currently in expertise for the court. The
Company does not expect a judgment before 2024. Ekopak lost in first instance during 2018, but filed an
appeal. Yearly interests are accrued on the claim. Due to a change in estimates with respect to the
exposure of the lawsuit the provision for claims decreased with KEUR 72.
Contingent liabilities and unrecognized contractual commitments
The Company does not have contingent liabilities and material unrecognized contractual commitments.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 45
Defined benefit obligations
The Company has two active Belgian Branche 23 group insurance schemes for management and
employees whereby the monthly employer contribution in the plan is equal to a percentage over a
reference salary. The percentage is variable and based on the number of years the person is working for
the Company.
The company has also two dormant Belgian Branche 21 group insurance plans (for management and for
the employees). As of July 1, 2021 employer contributions for new and existing employees are made with
respect to the active Belgian Branche 23 group insurance schemes.
There are no employee contributions into the plans. The Company insurance builds up a retirement
capital and covers death-in-service benefits for the members.
The employer contribution are subject to a minimum guaranteed return of 1,75% which lead to the
Company insurance schemes to be classified as a defined benefit plan.
The number of the members and the average age of the members in the plans is as follows:
At December 31
2021
2020
Number of active members
43
28
Number of inactive members
7
2
Average age
37
39
The net defined benefit liability is as follows:
At December 31
in €000
2021
2020
Net defined benefit liability at the beginning of the year
80
48
Defined benefit cost included in profit & loss
68
66
Total remeasurement included in other comprehensive income
209
15
Employer contributions
-64
-49
Net defined benefit liability at the end of the year
294
80
The increase in the net defined benefit liability compared to last year, mainly results from the increase in
the assumption on the salary increase from 0,00% to 3,00%.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 46
The gross defined benefit liability is as follows:
At December 31
in €000
2021
2020
Defined benefit liability at the beginning of the year
189
124
Current service cost
67
65
Interest cost
2
2
Benefit payments
-4
-5
Taxes on contributions
-7
-7
Insurance premiums on risk coverages
-5
-4
Actuarial loss on DBO due to change in financial assumptions
173
13
Actuarial loss (gain) on DBO due to experience adjustments
51
1
Defined benefit liability at the end of the year
468
189
The fair value of the plan assets is as follows:
At December 31
in €000
2021
2020
Fair value of plan assets at the beginning of the period
110
76
Interest income
1
1
Employer contributions
64
49
Benefit payments
-4
-5
Taxes on contributions
-7
-6
Insurance premiums on risk coverages
-5
-4
Changes in return of plan assets
15
-1
Fair value of plan assets at the end of the period
174
110
All plan assets are invested in an insurance contract with guaranteed interest rate (branch 23 product).
The defined benefit calculation has been performed based on the below assumptions:
At December 31
2021
2020
Discount rate
0,85 %
1,00 %
Duration of liabilities
24,8
23
Inflation rate
1,80 %
1,70 %
Salary increase (excluding inflation)
3,00 %
0,00 %
Withdrawal rate (annual)
2,50 %
2,50 %
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 47
The discount rate was derived from the index iBoxx EUR Corporate AA on each valuation date,
considering the weighted average duration of liabilities. The inflation rate is based on the long-term
objective of the European Central Bank. Retirement age assumption is in line with current legal
requirements. The withdrawal rate and the salary increase rate reflect the expectations of the company
on a long-term basis.
A sensitivity with reasonable possible changes on the discount rate and the inflation rate will impact the
net defined benefit liability as follows (positive = increase net defined benefit liability / negative =
decrease of net defined benefit liability):
At December 31
in €000
2021
2020
Increase of 0,25% in the discount rate
-33
-11
Decrease of 0,25% in the discount rate
35
15
Increase of 0,25% in the inflation rate
17
7
Decrease of 0,25% in the inflation rate
-17
-4
The expected employer contributions for the year 2022 amounts to KEUR 184.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 48
19. Fair value
The carrying value of the financial assets and the financial liabilities can be presented as follows:
Carrying value
At December 31
in 000€
2021
2020
Financial assets
Debt instruments measured at amortized cost
Trade receivables
2.981
3.299
Other current receivables
45
46
Cash & cash equivalents
42.100
1.300
Total debt instruments
45.126
4.645
Financial liabilities measured at amortized cost
Borrowings
2.754
3.098
Lease liabilities
675
562
Trade and other payables
3.828
2.449
Other current liabilities
55
35
Total financial liabilities measured at amortized cost
7.312
6.144
Total non-current
2.232
2.625
Total current
5.080
3.519
The fair value of the financial assets and the financial liabilities can be presented as follows:
Fair value
At December 31
in 000€
2021
2020
Financial assets
Debt instruments measured at amortized cost
Trade receivables
2.981
3.299
Other current receivables
45
46
Cash & cash equivalents
42.100
1.300
Total debt instruments
45.126
4.645
Financial liabilities measured at amortized cost
Borrowings
2.779
3.119
Lease liabilities
675
562
Trade and other payables
3.828
2.449
Other current liabilities
55
35
Total financial liabilities measured at amortized cost
7.337
6.165
Total non-current
2.254
2.644
Total current
5.083
3.521
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 49
The fair value of the financial assets and financial liabilities has been determined on the basis of the
following methods and assumptions:
• The carrying value of the cash and cash equivalents, the trade receivables and the other current
receivables approximate their fair value due to their short-term character.
• The carrying value of trade payables and other liabilities approximate their fair value due to the
short-term character of these instruments.
• Loans and borrowings are evaluated based on their interest rates and maturity dates. Most
interest-bearing debts have fixed interest rates and have a different fair value. We have
estimated the fair value by discounting the future payments including interest with the current
interest rate with similar maturity.
The fair value for the borrowings is classified as a level 2 in the fair value hierarchy. The Company has used
public interest rates based on Euribor adjusted with an estimated debt margin in each contract to
estimate fair value.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 50
20. Borrowing and lease liabilities
The long term liabilities include the following:
At December 31
in 000€, except interest rate
2021
2020
Leasing liabilities (interest rate range: 1,52% to 7,98%)
675
562
Investment borrowings (interest rate range: 1,28% to 3,78%)
1.500
1.563
Government loan (interest rate: 3%)
148
222
Investment borrowing for specific customer project (interest rate: 1,48%)
1.106
1.313
Total borrowings and lease liabilities
3.429
3.660
of which current
804
709
of which non-current
2.625
2.951
• The investment borrowings with a total carrying value of KEUR 1.500 and KEUR1.563 at December
31, 2021, and 2020 respectively, are investment credits which have a fixed interest rate ranging
from 1,28% to 3,78% with maturities between 36 to 180 months. For one investment credit with
maturity of 180 months with a carrying value of KEUR 701 and KEUR 772 at December 31, 2021
and 2020 respectively, the bank can revise the fixed interest rate every 5 years. Certain
investment borrowings allow an early repayment at each interest due date and/or the interest
revision date.
The investment credits are collateralized by means of the following:
• Mortgage for the investment credit in relation to the building of KEUR 55.
• Proxy for a mortgage in relation to the building of KEUR 1.328.
• Pledge and proxy for a pledge on the trading fund for a total amount of KEUR 500.
• Pledge on the business goods for a total amount of KEUR 600
• Government guarantee from PMV for a total amount of KEUR 150
The above collateral is also applied to the bank guarantees provided to by the bank in favour of certain
customers for ongoing projects.
The government loan is a loan granted by „Participatiefonds Vlaanderen“ for a total amount of KEUR 300
and a maturity of 60 months. Capital instalments are only payable as from the 13 month. The government
loan has no guarantees.
The investment borrowing for an amount of KEUR 1.106 relate to the financing of a customer project with
a WaaS contract. The borrowing has a maturity of 84 months, a fixed interest rate of 1,48%. This investment
borrowing has a pledge on contractual payment to be paid by the customer and on the related water
process installation for a total amount of KEUR 1.500 and a general guarantee of KEUR 75.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 51
Under the terms of the major borrowing facilities, the group is required to comply with the following
financial covenants:
• Restriction on disposal or pledge for all assets under the borrowing agreements (sale or rent out
for more than 9 years)
• Restriction on distribution of reserves and profits until the Company has a 20% solvability ratio
• The Company is restricted from entering into new banking relations without the prior written
approval of the current lenders
• The Company is restricted from providing guarantees for obligations of itself or third parties until
the borrowing facilities are terminated
• Restriction on change of control over the Company
The Company has complied with these covenants through the reporting period.
Cashflows from financing activities
The cashflow from the financing activities can be presented as follows:
i000€
2021
2020
At January 1
3.660
4.197
Proceeds from loans & borrowings
143
700
Repayment of loans & borrowings
-842
-1.316
New loans and borrowings through business combinations
355
−
New leases (non-cash)
241
261
New leases through business combinations
194
−
Repayment of leases
-290
-167
Early termination of leases (non-cash)
-32
-15
At December 31
3.429
3.660
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 52
21. Short term liabilities
The short term liabilities are the following:
At December 31
in 000€
2021
2020
Trade and other payables
Trade payables
-3.433
-2.228
Payroll-related liabilities
-396
-220
Total trade and other payables
-3.828
-2.449
Other current liabilities
Payable towards customer for packaging guarantees
-43
-35
Other
-16
−
Total other current liabilities
-59
-35
The payable towards the customers for packaging guarantees is the expected reimbursement of the
price paid by each customer for the packaging materials delivered by the Company to the customer
when returned by the customer to the Company. This payable is related to the receivable towards the
suppliers for packaging guarantee. There are no other material obligations for other returns, refunds or
warranties.
22. Capital management
The primary objective of the Company’s shareholders’ capital management strategy is to ensure it
maintains healthy capital ratios to support its business and maximize shareholder value. Capital is defined
as the Company’s shareholder’s equity. The shareholder’s equity totals KEUR 58.583 and KEUR 5.015 as per
December 31, 2021 and 2020 respectively. The ratio shareholder’s equity to the total liabilities and equity
(solvability ratio) is 87% and 42% as per December 31, 2021 and 2020 respectively.
The Company consistently reviews its capital structure and makes adjustments in light of changing
economic conditions, expected business growth and cash requirements to fund the growth.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 53
23. Financial risk management
Market risks
The Company is not exposed significantly to market risks such as interest rate risk, foreign currency risks
and other market risks that may impact the fair value or future cash flows of its financial instruments. As
such, sensitivity analysis is not provided.
Interest rate risk
The Company is not subject to immediate changes in interest rates as almost all borrowings outstanding
have a fixed interest rate except for one long-term investment borrowings where the fixed interest rate
can be revised every 5 years. As for the latter the interest rate has been revised in 2019, the next interest
revision date is 2024.
Foreign exchange risk
The Company invoices its customers in EUR and not in other foreign currency. In addition, the Company
purchases its materials also in EUR. Euro is the functional currency of the Company. As such, the Company
is not subject to foreign exchange risks.
Liquidity risk
Liquidity risk is the risk that the Company may not be able to meet its financial obligations as they fall due.
The Company expects to meet its obligations related to the financing agreements through operating
cash flows. This risk is countered by regular liquidity management at the corporate level. The Company
has historically entered into financing and lease agreements with financial institutions to finance
significant projects and certain working capital requirements.
The range of contracted obligations is as follows:
in 000€
Less than 1
year
2 to 3 years
4-5 years
More than 5
years
Total
At December 31, 2021
Borrowings
572
958
815
609
2.954
Lease liabilities
291
379
19
−
689
Trade payables and other payables
3.828
−
−
−
3.828
Other current liabilities
59
−
−
−
59
Total
4.750
1.337
834
609
7.530
At December 31, 2020
Borrowings
540
1.021
791
1.028
3.380
Lease liabilities
243
317
80
−
640
Trade payables and other payables
2.449
−
−
−
2.449
Other current liabilities
35
−
−
−
35
Total
3.267
1.338
871
1.028
6.504
The amounts disclosed in the table above are the contractual undiscounted cash flows. Balances due
within one year equal their carrying balances as the impact of discounting is not significant.
The Company is not subject to any covenants.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 54
Credit risk
Credit risk is the risk that third parties may not meet their contractual obligations resulting in a loss for the
Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables
and contract assets) and from its financing activities (cash and cash equivalents), which are mainly cash
held and short-term deposits with high-creditworthy financial institutions. The Company limits this exposure
by contracting with credit-worthy business partners or with financial institutions which meet high credit
rating requirements. In addition, the portfolio of receivables is monitored on a continuous basis.
Trade receivables and contract assets
Customer credit risk is managed by each business unit subject to the Company’s established policy,
procedures and controls relating to customer credit risk management. Historically, the Company had no
significant credit losses and currently has accounted for a credit loss allowance only for a limited number
of customers for which credit losses are highly probable. The Company is of the opinion that the expected
credit losses are not material.
The Company evaluates the concentration of risk with respect to trade receivables and contract assets
regularly. The customer only works with customers active in the chemical, pharmaceutical and food
industry with outstanding credit ratings. Contract assets as per December 31, 2021 include one customer
with contract assets of 88% compared to the total contract assets.
Set out below is the information about the maximum credit risk exposure on the Company’s trade
receivables:
in 000€
Total
Non-due
Less than 30
days
31-60 days
>61 days
At December 31, 2021
2.981
2.244
349
61
327
At December 31, 2020
3.297
2.782
142
160
213
The maximum credit risk exposure in 2020 was highly impacted with one outstanding invoice amounting
to KEUR 1.424 related to the one off sales model.
Cash and cash equivalents
The credit risk from the cash and cash equivalents held at financial institutions is managed by placing
cash at high-creditworthy financial institutions (KBC and BNP Paribas Fortis). The Company does not invest
its excess cash in financial instruments other than cash equivalents. The Company’s maximum exposure
to credit risk is the carrying value of the cash and cash equivalents in the consolidated statement of
financial position.
Operational risks
For the operational risks, we refer to the risk management section in this annual report.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 55
24. Related party disclosures
This disclosure provides an overview of all transactions with related parties with Pilovan BV and Alychlo NV
as shareholder and its representatives in key management.
Key management is employed through management agreements and payroll. In addition, the Company
has a group insurance plan in favour of key management.
in 000€
2021
2020
Short-term employee benefits
553
349
Post-employment benefits
11
11
Total
564
360
Warrants granted
35.000
30.000
Warrants outstanding
35.000
30.000
The key management consist of 5 persons (including the CEO) as of 2021 (2020: 4).
Key management has been granted 35.000 warrants at December 31, 2021 (2020: 30.000). We refer to
Note 16 for additional details.
The Company has a current account receivable on Pilovan which is fully owned by one of the
shareholders and management member as well as a current account receivable on the management
member in person. The current accounts together totals KEUR 9 and KEUR 11 as per December 31,
2021and 2020 respectively. The current account is interest bearing. Total interest income received from
these related parties totals KEUR 1 at December 31, 2021 and 2020.
25. Events after the reporting period
The Company announced on the 27th of January 2022 its collaboration with PMV and Water-Link to
convert the treated waste water from Antwerp households into cooling water for companies in the Port
of Antwerp by 2025. The collaboration is named Waterkracht (‘the power of water’) and is a significant
milestone in the transition to a sustainable port.
To realize this pioneering project, the collaborators entered into a preliminary agreement (Memorandum
of Understanding) to establish a joint venture. The joint venture is named Waterkracht and is a leading
example of public-private partnership. Ekopak owns a 51% share in the established joint venture.
Normally the water plant will be fully operational as of 2025.
The Company merged on the 1st
of January 2022 the legal entities iServ BV and Water-as-a-Service NV
into Ekopak NV.
Ekopak announced on February the 24st 2022 the investment in new business premises. Ekopak has
reached an agreement to realize the new building on a plot of approx.. 2.1 ha on the De Prijkels site in
Deinze. The investment is needed to support and accelerate Ekopak’s future growth. Ekopak also wants
to play a pioneering role in the field of sustainability.
NOTES TO THE IFRS CONSOLIDATED STATEMENTS
Ekopak NV – IFRS Consolidated Financial Statements | 2021 56
26. Auditor fees
The fees for professional services provided by PwC in 2020 and 2021 were as follows:
in 000€
2021
2020
Audit fees
68
48
Contractual audit fees relating to 2018 and 2019
−
46
Fees of auditor related to specific services (mainly IPO and legal missions
related)
222
6
Total
290
100
27. Interests in other entities
The group’s principal subsidiaries at 31 December 2021 are set out below.
Ownership interest held by the
group
At December 31
Name of entity
Country of
incorporation
2021
2020
Ekopak NV
Belgium
100 %
100 %
Water-as-a-Service NV
Belgium
100 %
100 %
iServ BV
Belgium
100 %
0 %
Ekopak SAS
France
100 %
0 %
Unless otherwise stated, they have share capital consisting solely of ordinary shares that are held directly
by the group, and the proportion of ownership interests held equals the voting rights held by the group.
The country of incorporation or registration is also their principal place of business.
Changes in the group’s subsidiaries compared to last year, relate to the in note 6 described acquisition
of iServ BV as per 23 April 2021and the incorporation of Ekopak France as per 14 September 2021.
28. NON-GAAP Measures
Adjusted EBITDA is used in Note 5 Operating Segments as one of the bases of the Segments performance
measurement. We calculate adjusted EBITDA as profit (loss) before tax plus financial expenses, minus
financial income, plus expenses from claims and depreciation charges.
EBITDA is used in Note 5 Operating Segments as one of the bases of the Segments performance
measurement. We calculate EBITDA as profit (loss) before tax plus financial expenses, minus financial
income, plus depreciation charges.
SUPPLEMENTARY INFORMATION
Ekopak NV – IFRS Consolidated Financial Statements | 2021 57
Supplementary information
The financial statements of the parent company, Ekopak NV, are presented below in a condensed form.
The accounting principles used for the statutory annual accounts of Ekopak NV differ from the accounting
principles used for the consolidated annual accounts: the statutory annual accounts follow the Belgian
legal requirements, while the consolidated annual accounts follow the International Financial Reporting
Standards. Only the consolidated annual financial statements as set forth in the preceding pages present
a true and fair view of the financial position and performance of the Ekopak Group.
The management report of the Board of Directors to the Annual General Meeting of Shareholders and
the annual accounts of Ekopak NV, as well as the Auditor’s Report, will be filed with the National Bank of
Belgium within the statutory periods. These documents are available upon request to Ekopak’s Finance
department ([email protected]), and at our website: https://ekopaksustainablewater.com/investor-
relations.
The statutory auditor’s report is unqualified and certifies that the non-consolidated financial statements
of Ekopak NV for the year ended 31 December 2021 gives a true and fair view of the financial position
and results of the company in accordance with all legal and regulatory dispositions.
SUPPLEMENTARY INFORMATION
Ekopak NV – IFRS Consolidated Financial Statements | 2021 58
1. Balance sheet after appropriation
in 000€
2021
2020
Fixed assets
9.700
5.005
Intangible fixed assets
172
90
Tangible fixed assets
4.532
4.164
Financial assets
4.996
751
Current assets
56.406
6.293
Amounts receivable after more than one year
0
0
Inventory
8.849
2.099
Amounts receivable within one year
15.140
3.534
Investments (own shares)
0
0
Cash and cash equivalents
32.246
629
Deferred charges and accrued income
171
30
Total assets
66.106
11.297
Capital and reserves
58.118
4.894
Capital
6.671
0
Share premium
55.116
0
Restricted reserve
0
5.162
Reserves
53
53
Accumulated profits
-3.722
-321
Investment grants
0
0
Provisions
248
320
Provisions for liabilities and charges
248
320
Creditors
7.739
6.084
Amounts payable after more than one year
2.245
2.750
Amounts payable within one year
5.487
3.333
Total liabilities
66.106
11.297
SUPPLEMENTARY INFORMATION
Ekopak NV – IFRS Consolidated Financial Statements | 2021 59
The increase in intangible fixed assets is related to investments in software. The software relates to
capitalized standard software purchased or licensed from third parties and the cloud platform used for
monitoring of the service activities. The other intangible assets are mainly consisting of an electronic 3D
design components library for which external expenses of technical designers have been capitalized.
The increase in tangible fixed assets is mainly related to the capitalization of rental containers (0,5 million
euro).
Financial assets increased due to investments in iServ BV (1,2 million euro) and in Ekopak France SAS (3
million euro).
The increase in inventory is mainly related to work in progress (5,9 million euro).
Amounts receivable within one year increased due to the intercompany current accounts of Water-as-
a-service NV (1 million euro) and iServ BV (6 million euro). Trade receivables increased due to an
outstanding position of 5,1 million euro related to the sales of water process installations to Water-as-a-
Service NV.
The increase in cash and cash equivalents is the result of the capital increase. Ekopak NV raised by means
of an IPO net 54,3 million euro. The increase is partly compensated by the acquisition of iServ (1,2 million
euro), formation of Ekopak France SAS (3 million euro), financing of iServ BV (6 million euro) and by
prefinancing the construction of water process installations.
Equity increased as a result of the IPO with 56,6 million euro. Equity was impacted with the loss of the year
amounting to 3,4 million euro of which 3,7 million euro relate to the cost directly linked with the IPO.
Amounts payable within one year increased as a consequence of the growth in the Water-as-a-Service
business as well as the increase in personnel. An important other payable is the increase in VAT due (0,6
million euro) which is the result of the sales of water process installations to Water-as-a-service NV.
SUPPLEMENTARY INFORMATION
Ekopak NV – IFRS Consolidated Financial Statements | 2021 60
2. Income statement
in 000€
2021
2020
Operating income
19.623
10.877
Operating costs
-19.276
-11.304
Financial result
-3.740
-112
Income taxes
-7
-5
Transfer to untaxed reserves
0
0
Profit/(loss) for the year
-3.401
-544
Ekopak NV’s operating income in 2021 increased with 80% to 19,6 million euro. This is related to the
accelerated transition towards the Water-as-a-service business which resulted in a strong increase in sold
WaaS projects.
The operating costs increased with 8 million euro and consists of the increase in cost of goods sold for an
amount of 6,3 million euro. This is the result of the growth and transition towards the WaaS business. The
services and other goods increased with 0,8 million euro whereas the personnel costs increased with 1,2
million euro. The increase in salaries is related to the expansion in FTE’s, 46,3 in 2021 compared to 32,3 in
2020.
3. Proposed appropriation of Ekopak NV result
in 000€
2021
2020
Profit/(loss) for the year for appropriation
-3.401
-544
Profit brought forward
-321
223
Profit to be appropriated
-3.722
-321
Transfer from other reserves
0
0
Profit to be carried forward
-3.722
-321
Gross dividends
0
0
Total
-3.722
-321
The loss of the financial year is carried forward towards 2022.
STATUTORY AUDITOR’S REPORT
Ekopak NV – IFRS Consolidated Financial Statements | 2021 61
Statutory auditor’s report
STATUTORY AUDITOR'S REPORT TO THE GENERAL SHAREHOLDERS’ MEETING OF EKOPAK NV ON THE
CONSOLIDATED ACCOUNTS FOR THE YEAR ENDED 31 DECEMBER 2021
We present to you our statutory auditor’s report in the context of our statutory audit of the consolidated
accounts of Ekopak NV (the “Company”) and its subsidiaries (jointly “the Group”). This report includes our
report on the consolidated accounts, as well as the other legal and regulatory requirements. This forms
part of an integrated whole and is indivisible.
We have been appointed as statutory auditor by the general meeting d.d. 4 December 2020, following
the proposal formulated by the board of directors. Our mandate will expire on the date of the general
meeting which will deliberate on the annual accounts for the year ended 31 December 2022. We have
performed the statutory audit of the Company’s consolidated accounts for 2 consecutive years.
1. Report on the consolidated accounts
1.1. Unqualified opinion
We have performed the statutory audit of the Group’s consolidated accounts, which comprise the
consolidated statement of financial position as at 31 December 2021, the consolidated statement of
profit or loss and other comprehensive income, the consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then ended, and notes to the consolidated financial
statements, including a summary of significant accounting policies and other explanatory information,
and which is characterised by a consolidated statement of financial position total of KEUR 67.423 and a
loss for the year of KEUR 700.
In our opinion, the consolidated accounts give a true and fair view of the Group’s net equity and
consolidated financial position as at 31 December 2021, and of its consolidated financial performance
and its consolidated cash flows for the year then ended, in accordance with International Financial
Reporting Standards as adopted by the European Union and with the legal and regulatory requirements
applicable in Belgium.
1.2. Basis for unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) as applicable in
Belgium. Furthermore, we have applied the International Standards on Auditing as approved by the
IAASB which are applicable to the year-end and which are not yet approved at the national level. Our
responsibilities under those standards are further described in the “Statutory auditor’s responsibilities for
the audit of the consolidated accounts” section of our report. We have fulfilled our ethical
responsibilities in accordance with the ethical requirements that are relevant to our audit of the
consolidated accounts in Belgium, including the requirements related to independence.
We have obtained from the board of directors and Company officials the explanations and information
necessary for performing our audit.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
1.3. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated accounts of the current period. These matters were addressed in the context
of our audit of the consolidated accounts as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters.
STATUTORY AUDITOR’S REPORT
Ekopak NV – IFRS Consolidated Financial Statements | 2021 62
2. Valuation of contract assets
2.1. Description of the Key Audit Matter
Reference is made to note 2: Significant accounting policies: 4.2 Revenue recognised over time and Note
14: Contract assets. Contract assets amounted to KEUR 1.773 at 31 December 2021.
We focused on revenue recognition of construction contracts and its related contract assets because
the Group generates a substantial part of its revenue from projects which qualify as construction contracts
under IFRS. The recognition of revenue and the estimation of the outcome of fixed price construction
contracts is complex and requires significant management judgement, in particular with respect to the
allocation of the cost incurred to the correct projects and the cost to complete the contracts (margin
that will be realised) as well to the assessment of the stage of completion of the project (progress over
time). For these reasons, we identified the contract assets from these construction contracts as most
significant during our audit.
2.2. How our Audit addressed the Key Audit Matter
Our testing on contract assets included procedures to gain an understanding of the related process
and controls as well as substantive test procedures related to the recording of the contract assets, the
related revenues and the determination of the stage of completion of the contracts. Our audit
procedures included considering the appropriateness of the Group’s revenue recognition accounting
policies. We also included an evaluation of the significant judgements made by management based
on the examination of the related project documentation and the discussion on the status of projects
under construction with finance and technical staff of the Group for specific individual
transactions/projects.
In addition, in order to evaluate the reliability of management’s estimates, we reconciled the total price
to the signed contracts and tested a sample of purchase invoices and timesheets to verify if these were
allocated to the correct projects. Furthermore, we reconciled and recalculated the proportional part of
the production overhead cost allocated to the different projects. We also performed testing over
unexpected journal entries posted to revenue to identify potential unusual or irregular items that could
influence contract assets and the related revenue recognition.
We found management’s judgements in respect of the contract assets to be consistent and in line with
our expectations.
STATUTORY AUDITOR’S REPORT
Ekopak NV – IFRS Consolidated Financial Statements | 2021 63
3. Valuation of construction in progress (DBFMO)
3.1. Description of the Key Audit Matter
Reference is made to Note 2: Significant accounting policies: 2.3.9 Property, plant and equipment and
Note 11: Property, plant and equipment. The construction in progress amounted to KEUR 5.281 at
31 December 2021 and is completely related to the DBFMO – Design Build Finance Maintain Operate
assets under construction (also referred to as WAAS “Water-as-a-service”).
Considering the magnitude of the total costs capitalised as construction in progress (costs of materials,
direct labour costs and part of the production overheads) and considering the capitalization of costs
requires a significant effort in allocating the costs to the correct project and setting the allocation keys
we identified the construction in progress as most significant during our audit.
3.2. How our Audit addressed the Key Audit Matter
Our testing on the construction in progress assets included procedures to gain an understanding of the
related process and controls as well as substantive test procedures related to the recording of the
construction in progress and the related capitalised costs. Our audit procedures included considering
the appropriateness of the Group’s accounting policies. We also included an evaluation of the
significant judgements made by management based on the examination of the project
documentation and the discussion on the progress of the projects under construction with finance and
technical staff of the Group for specific individual projects.
In addition, in order to evaluate the reliability of the capitalised cost, we tested a sample of purchase
invoices and timesheets to verify if these were allocated to the correct project. Furthermore, we
reconciled and recalculated the proportional part of the production overhead allocated to the
different projects. We also performed testing over unusual large journal entries impacting construction in
progress.
We found no material errors from our testing.
3.3. Responsibilities of the board of directors for the preparation of the consolidated
accounts
The board of directors is responsible for the preparation of consolidated accounts that give a true and
fair view in accordance with International Financial Reporting Standards as adopted by the European
Union and with the legal and regulatory requirements applicable in Belgium, and for such internal
control as the board of directors determines is necessary to enable the preparation of consolidated
accounts that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated accounts, the board of directors is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the board of directors either intends to liquidate the
Group or to cease operations, or has no realistic alternative but to do so.
STATUTORY AUDITOR’S REPORT
Ekopak NV – IFRS Consolidated Financial Statements | 2021 64
3.4. Statutory auditor’s responsibilities for the audit of the consolidated accounts
Our objectives are to obtain reasonable assurance about whether the consolidated accounts as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated accounts.
In performing our audit, we comply with the legal, regulatory and normative framework applicable to
the audit of the consolidated accounts in Belgium. A statutory audit does not provide any assurance as
to the Group’s future viability nor as to the efficiency or effectiveness of the board of directors’ current
or future business management at Group level. Our responsibilities in respect of the use of the going
concern basis of accounting by the board of directors are described below.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated accounts, whether due
to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control;
• Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control;
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the board of directors;
• Conclude on the appropriateness of the board of directors’ use of the going concern basis of
accounting and, based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the Group’s ability to continue
as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our statutory auditor’s report to the related disclosures in the consolidated accounts
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our statutory auditor’s report. However, future events
or conditions may cause the Group to cease to continue as a going concern;
• Evaluate the overall presentation, structure and content of the consolidated accounts, including
the disclosures, and whether the consolidated accounts represent the underlying transactions
and events in a manner that achieves fair presentation;
• Obtain sufficient and appropriate audit evidence regarding the financial information of the
entities or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the Group
audit. We remain solely responsible for our audit opinion.
STATUTORY AUDITOR’S REPORT
Ekopak NV – IFRS Consolidated Financial Statements | 2021 65
We communicate with the audit committee regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with the audit committee, we determine those matters that were of
most significance in the audit of the consolidated accounts of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter.
4. Other legal and regulatory requirements
4.1. Responsibilities of the board of directors
The board of directors is responsible for the preparation and the content of the directors’ report on the
consolidated accounts and the other information included in the annual report on the consolidated
accounts.
4.2. Statutory auditor’s responsibilities
In the context of our engagement and in accordance with the Belgian standard which is
complementary to the International Standards on Auditing (ISAs) as applicable in Belgium, our
responsibility is to verify, in all material respects, the directors’ report on the consolidated accounts and
the other information included in the annual report on the consolidated accounts and to report on
these matters.
4.3. Aspects related to the directors’ report on the consolidated accounts and to the
other information included in the annual report on the consolidated accounts
In our opinion, after having performed specific procedures in relation to the directors’ report on the
consolidated accounts, this directors’ report is consistent with the consolidated accounts for the year
under audit and is prepared in accordance with article 3:32 of the Companies' and Associations' Code.
In the context of our audit of the consolidated accounts, we are also responsible for considering, in
particular based on the knowledge acquired resulting from the audit, whether the directors’ report on
the consolidated accounts and the other information included in the annual report on the consolidated
accounts is materially misstated or contains information which is inadequately disclosed or otherwise
misleading. In light of the procedures we have performed, there are no material misstatements we have
to report to you.
STATUTORY AUDITOR’S REPORT
Ekopak NV – IFRS Consolidated Financial Statements | 2021 66
4.4. Statement related to independence
• Our registered audit firm and our network did not provide services which are incompatible with
the statutory audit of the consolidated accounts, and our registered audit firm remained
independent of the Group in the course of our mandate.
• The fees for additional services which are compatible with the statutory audit of the
consolidated accounts referred to in article 3:65 of the Companies' and Associations' Code are
correctly disclosed and itemized in the notes to the consolidated accounts.
4.5. European Uniform Electronic Format (ESEF)
We have also verified, in accordance with the draft standard on the verification of the compliance of
the financial statements with the European Uniform Electronic Format (hereinafter “ESEF”), the
compliance of the ESEF format with the regulatory technical standards established by the European
Delegate Regulation No. 2019/815 of 17 December 2018 (hereinafter: “Delegated Regulation”).
The board of directors is responsible for the preparation, in accordance with ESEF requirements, of the
consolidated financial statements in the form of an electronic file in ESEF format (hereinafter “digital
consolidated financial statements”) included in the annual financial report.
Our responsibility is to obtain sufficient appropriate evidence to conclude that the format and marking
language of the digital consolidated financial statements comply in all material respects with the ESEF
requirements under the Delegated Regulation.
Based on the work we have performed, we believe that the format of and marking of information in the
digital consolidated financial statements included in the annual financial report of Ekopak NV per
31 December 2021 comply in all material respects with the ESEF requirements under the Delegated
Regulation.
Other statements
This report is consistent with the additional report to the audit committee referred to in article 11 of the
Regulation (EU) N° 537/2014.
Ghent, 8 April 2022
The statutory auditor
PwC Reviseurs d'Entreprises SRL / PwC Bedrijfsrevisoren BV
Represented by
Peter Opsomer
Réviseur d’Entreprises / Bedrijfsrevisor
PwC Bedrijfsrevisoren BV - PwC Reviseurs d'Entreprises SRL - Financial
Assurance Services
Maatschappelijke zetel/Siège social: Culliganlaan 5, B-1831 Diegem
Vestigingseenheid/Unité d'établissement: Sluisweg 1 bus 8, B-9000 Gent
T: +32 (0)9 268 82 11, F: +32 (0)9 268 82 99, www.pwc.com
BTW/TVA BE 0429.501.944 / RPR Brussel - RPM Bruxelles / ING BE43 3101 3811
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