5.9 Additional notes to the financial statements
[24] Dividend
| in millions of euros | 2025 | 2024 |
|---|---|---|
| Dividend for the financial year | - | - |
| Number of entiteld ordinary shares | 5.777.247 | 5.777.247 |
| Dividend per share (in euros) | - | - |
[25] Related parties
Vitens' shares are held by public sector shareholders (provinces and municipalities). Vitens has interests in associates and joint ventures, in which it either has significant influence, but not decisive control, or exercises joint control in operations and financial policy. Transactions with these parties are conducted on arm's length basis.
VEI B.V.
Facturatie B.V.
| Related party | Location | Importance (in %) |
|---|---|---|
| AquaMinerals B.V. | Rijswijk | 18% |
| KWH Water B.V. | Nieuwegein | 26% |
| In millions of euros | 2025 | 2024 |
|---|---|---|
| Receivables from associated parties | 18,5 | 18,3 |
| Payables to associated parties | 0,6 | 0,5 |
[26] Water balance
| In millions m3 | 2025 | 2024 |
|---|---|---|
| Total water to be treated | 381,2 | 372,1 |
| Production losses | -9,8 | -9,9 |
| Total clean water produced | 371,4 | 362,2 |
| Purchase of clean water | 6,5 | 6,2 |
| Production and procurement | 377,9 | 368,4 |
| Distribution losses and measurement differences (NIRG)* | -25,7 | -25,0 |
| Delivery to customers** | 352,9 | 343,4 |
| * Not charged (NIRG) in % | 6,8% | 6,8% |
| ** Percentage already invoiced as of 31 December | 47,3% | 48,3% |
| Effect on closing balance sheet item: consumption and impact of NIRG | 2025 | 2024 | 2023 | 2022 | 2021 | 4-year average. |
|---|---|---|---|---|---|---|
| Profit on closing balance sheet item: turnover from consumption in the previous year (in millions of euros) | 0,8 | -1,1 | -1,4 | -1,3 | -1,6 | -1,4 |
| Actual NIRG in financial statements (after > 99.5% invoicing) | 6,4% | 7,2% | 7,7% | 6,5% | 7,0% | |
| Expected / Reported NIRG in financial statements (after approximately > 45% invoicing) | 6,8% | 6,8% | 6,7% | 6,6% | 6,1% | 6,5% |
Control of capital
The financial policy was reviewed and approved by the Supervisory Board (SB) in October 2025. The importance of continuity is at the forefront of financial policy. The continuity objective is formulated as follows: Solvency is set at equity at least equal to 30% of the balance sheet total. This primary objective is central to the management of financial risks. At the end of 2025, solvency is 30.5% (2024: 29.8%).
Vitens has included in its treasury statute that the interest rate risk may not exceed 25% of the total debt position. Interest rate risk is the sum of interest rate revisions (including interest rate instruments) and what is needed in new financing (debt renewal) in any year.
Vitens has entered into credit arrangements with several lenders. In these arrangements, lenders set conditions (financial ratios) that Vitens must meet. Vitens has met the ratios set out in the banking covenants in 2025.
In October 2024, the standard for the WACC for the years 2025 to 2027 was set at 4.32%. For these years, the maximum allowed solvency remains at 70%.
Vitens achieved a provisional WACC of 4.99% in 2025. The final WACC will be determined through the Business Report submitted to the Dutch Ministry of Infrastructure & Water Management by 1 October 2026. The achieved WACC is higher than the set standard of 4.32%.
| Financial ratios | Target values1 | Bank covenant | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|---|---|
| Solvency (based on equity) | > 30% | > 25% | 30,5% | 29,8% | 30,3% | 31,0% | 30,2% |
| Solvency (based on guarantee capital) | > 25% | 30,5% | 29,8% | 30,3% | 31,0% | 30,2% | |
| Leverage ratio | > 7% | > 7% | 17,4% | 13,9% | 12,0% | 11,7% | 12,2% |
| Interest Coverage ratio | > 1,3 | > 1,3 | 3,5 | 1,9 | 1,8 | 1,3 | 1,8 |
| Debt ratio | < 7,0 | < 7,5 | 5,4 | 6,5 | 6,9 | 7,8 | 7,1 |
| Weighted Average Cost of Capital (WACC)² | max WACC | 4,99% | 3,11% | 2,92% | 1,83% | 2,41% |
Calculation method of financial ratios and abbreviations used
[• ]Solvency (equity): equity x 100% divided by total assets.
• Solvency (guarantee capital): (equity + subordinated loans) x 100% divided by total assets.
• Leverage ratio: net operating cash flow divided by net interest-bearing debt (including subordinated loans/cash and cash equivalents);
• Interest Coverage ratio: Ebit/(interest expense and income + dividend paid current financial year)
• Debt ratio: Interest-bearing liabilities (excluding subordinated loans)/Ebitda
• Ebit: operating profit plus profits of joint ventures and associates.
• Ebitda: ebit plus depreciation and impairment.
• WACC: drinking water operations operating profit plus any tariff compensation divided by average balance sheet total drinking water operations.
Financial risks are managed within Vitens by the treasury committee, which is supervised by the Executive Board. Key objectives of the treasury policy are to ensure continued access to the capital market, manage financial risks, achieve the lowest possible costs and secure sufficient liquidity. Vitens is subject to the following financial risks: market risk (including price risk, currency risk and interest rate risk), credit risk and liquidity risk.
(i) Price risk
| Fair value of financial assets and liabilities | Book value | Fair value | ||
|---|---|---|---|---|
| In millions of euros | 2025 | 2024 | 2025 | 2024 |
| Assets | ||||
| Financial assets | 2,9 | 2,9 | 2,9 | 2,9 |
| Trade and other receivables | 82,8 | 65,8 | 82,8 | 68,7 |
| Non-current financial assets | 10,4 | 13,3 | 9,7 | 12,2 |
| Liabilities | ||||
| Long-term money loans | 1.411,9 | 1.262,2 | 1.331,0 | 1.207,2 |
| Trade and other payables | 92,8 | 95,9 | 92,8 | 95,9 |
| Invoices to be received | 20,1 | 13,5 | 20,1 | 13,5 |
| Interest-bearing liabilities | - | 35,3 | - | 35,3 |
| Short-term loans | - | - | - | - |
| Current other financial liabilities | 89,7 | 78,2 | 89,7 | 78,2 |
• Trade and other receivables and prepaid amounts: given the short lead time of these receivables, the fair value is in line with the book value;
• Long-term financial assets: this item concerns a loan granted to Facturatie B.V. and mortgage loans to (former) employees. The fair values of these have been determined by discounting future cash flows;
• Long-term money loans: the fair values of these have been determined by discounting the future cash flows at the yield rate curve applicable to Vitens as of 31 December;
• Trade and other payables, invoices to be received, short-term loans and short-term other financial liabilities: the fair value of the aforementioned items is in line with the book value, given the short lead time;
• Interest-bearing liabilities: the fair value of interest-bearing liabilities is in line with their book value.
(ii) Currency risk
This refers to the risk that the value of a financial instrument changes due to fluctuations in foreign exchange rates. Vitens itself runs no currency risk on its operations as all business activities take place within the Netherlands. VEI B.V. is a joint venture of Vitens and Evides N.V. and carries out projects in developing countries with the aim of improving water supply. VEI B.V. uses the euro as its functional currency. Any exchange differences are calculated on a transaction-by-transaction basis and credited/debited to the income statement.
(iii) Interest rate risk
In the normal course of business, Vitens uses derivatives interest rate swaps) to mitigate interest rate risks. The aim of this management is to limit the impact of changes in interest rates on profits. Derivatives are used to steer the loan portfolio to the desired risk profile.
These instruments are not used for speculative or trading purposes. Vitens has included in its treasury statute that a maximum of 25% of total loan capital (excluding subordinated money loans) may be exposed to interest rate risk. At year-end 2025, the interest rate risk calculated in this way amounted to 20.7% (2024: 21.0%). A small part of the loan portfolio is subject to interest rate fluctuations and the impact on interest expenses is limited.
Any increase/decrease in short-term interest rates (three-month Euribor) of one hundred basis points (1%) means an increase/decrease in interest costs of €0.5 million on an annual basis (2024: €1.0 million) for Vitens. The increase/decrease relates to roll-over loans not hedged by derivatives and the current account balance.
Any decline in the yield curve compared to 31 December 2025 of 100 basis points (1%) has a negative impact of €4.2 million on the value of derivatives. Any increase in the yield curve compared to 31 December 2025 of 100 basis points (1%) has a positive impact of €3.7 million on the value of derivatives. A negative or positive effect on the value of the derivatives results in changes in equity.
The interest rate derivatives are equal to the maturity of the linked roll-over loans. For a principal amount of €95 million, the maturity of the interest rate derivatives is equal to the maturity of the roll-over loans. The table below shows the maturity date or, if earlier, the contractual interest rate reset date of the loan portfolio on 31 December 2025. This provides insight into the extent to which Vitens is exposed to changes in the level of interest rates for financial liabilities.
| Interest rate risk (in millions of euros) | Effective interest rate | < 6 months | > 6 < 12 months | > 1 < 5 years | > 5 years | Total |
|---|---|---|---|---|---|---|
| as of 31 December 2025 | ||||||
| Bullet and linear money loans | 2,74% | 1,2 | 26,2 | 293,4 | 946,1 | 1.266,9 |
| Roll-over money loans (linked with interest rate swaps, creating fixed-interest loans) | 4,24% | - | 50,0 | 20,0 | 25,0 | 95,0 |
| Roll-over money loans | 2,64% | 25,0 | - | - | 25,0 | 50,0 |
| Banks (current account) | one-month Euribor | - | - | - | - | - |
| Cash loans | - | - | - | - | - | |
| Lease liabilities | 0,6-4,8% | 3,5 | 2,7 | 15,2 | 0,8 | 22,2 |
| Total financial liabilities | 29,7 | 78,9 | 328,6 | 996,9 | 1.434,1 | |
| as of 31 December 2024 | ||||||
| Bullet and linear money loans | 2,68% | - | - | 234,7 | 822,7 | 1.057,4 |
| Roll-over money loans (linked with interest rate swaps, creating fixed-interest loans) | 4,32% | - | 50,0 | 70,0 | 25,0 | 145,0 |
| Roll-over money loans | 4,00% | - | 10,0 | 25,0 | 25,0 | 60,0 |
| Banks (current account) | one-month Euribor | 35,3 | - | - | - | 35,3 |
| Cash loans | - | - | - | - | - | |
| Lease liabilities | 0,6-4,8% | 2,9 | 2,8 | 11,3 | 1,4 | 18,4 |
| Total financial liabilities | 38,2 | 62,8 | 341,0 | 874,1 | 1.316,1 |
(iv) Credit risk
Vitens is exposed to risks in situations where customers are unable to meet their obligations. At the end of 2025, the debtor balance at risk is €63.3 million (2024: €46.3 million), see note [6]. In addition, risk is incurred on the balance of financial assets €13.3 million (2024: €16.2 million).
Other short-term receivables €23.0 million (2024: €22.8 million) comprise receivables from free riders €0.5 million (2024: €0.7 million), taxes and social security contributions €4.8 million (2024: €3.8 million), prepaid expenses €10.8 million (2024: €10.2 million) and miscellaneous receivables of €6.9 million (2024: €8.1 million). Vitens is not exposed to credit risk on the receivables from free-riders and taxes and social security contributions. Vitens has no significant concentrations of credit risk.
(v) Liquidity risk
| In millions of euros | < 1 year | > 1 < 5 years | > 5 years |
|---|---|---|---|
| Bullet and linear money loans | 63,5 | 419,4 | 1.081,7 |
| Roll-over loans | 77,9 | 24,8 | 58,6 |
| Derivatives | 2,4 | 3,7 | 10,7 |
| Lease liabilities | 6,2 | 15,2 | 0,8 |
| Non-current other financial liabilities | 32,2 | 50,7 | 136,3 |
| Subtotal: non-current financial liabilities | 182,2 | 513,8 | 1.288,1 |
| Trade and other payables | 92,8 | - | - |
| Invoices to be received | 20,1 | - | - |
| Interest-bearing liabilities | - | - | - |
| Current other financial liabilities | 89,7 | - | - |
| Subtotal: current financial liabilities | 202,6 | - | - |
| Total non-current and current financial liabilities | 384,9 | 513,8 | 1.288,1 |
[28] Offsetting financial assets and financial liabilities
At year-end 2025 and 2024, Vitens did not recognise any financial assets and financial liabilities netted on the balance sheet. Similarly, there are no contingent netting rights that could lead to netted settlement of financial assets and financial liabilities.
[29] Events after balance sheet date
No significant events affecting the 2025 financial statements occurred after the balance sheet date.
[30] Remuneration under the Standards for Remuneration of Senior Officials (WNT)
Remuneration of the Executive Board (serving under an employment contract)
| Data for 2025 | ||
|---|---|---|
| amounts x €1 | ir. T.R. Roozendaal | D.N. van Rieven 1 |
| Job details | Chair of the Executive Board | Member of the Executive Board |
| Commencement and end of office in 2025 | 01/01 – 31/12 | 01/02 - 11/08 |
| Scope of employment (as part-time factor in FTE) | 1 | 1 |
| Employment? | Yes | Yes |
| Remuneration | ||
| Remuneration plus taxable expense allowances | 222.380 | 116.956 |
| Remuneration payable in instalments | 23.619 | 12.447 |
| Subtotal | 245.999 | 129.403 |
| Individually applicable remuneration cap | 246.000 | 129.403 |
| -/- Amount unduly paid and not yet recovered | n/a | n/a |
| Remuneration | 245.999 | 129.403 |
| The amount of the excess, and | n/a | n/a |
| the reason why the excess is or is not permitted | n/a | n/a |
| Explanation of claim for undue payment | n/a | n/a |
| Data 2024 | |
|---|---|
| amounts x €1 | ir. T.R. Roozendaal 2 |
| Job details | Chair of the Executive Board |
| Commencement and end of office in 2024 | 01/04 – 31/12 |
| Scope of employment (as part-time factor in FTE) | 1 |
| Employment? | Yes |
| Remuneration | |
| Remuneration plus taxable expense allowances | 157.264 |
| Remuneration payable in instalments | 17.804 |
| Subtotal | 175.068 |
| Individually applicable remuneration cap | 175.068 |
| -/- Amount unduly paid and not yet recovered | n/a |
| Remuneration | € 175.068 |
| The amount of the excess, and | n/a |
| the reason why the excess is or is not permitted | n/a |
| Explanation of claim for undue payment | n/a |
Remuneration of the Supervisory Board
| Data for 2025 | |||||
|---|---|---|---|---|---|
| amounts x €1 | H.C.P. Notes | M.R. van Lieshout | H. Setz | G.M. van Dijk | P.A.N. ten Kroode |
| Job details | Chair | Member | Member | Member | Member |
| Commencement and end of office in 2025 | 01/01 – 31/12 | 01/01 – 31/12 | 01/01 – 31/12 | 01/01 – 31/12 | 01/01 – 31/12 |
| Remuneration | 36.162 | 23.862 | 23.862 | 23.862 | 23.862 |
| Individually applicable remuneration cap | 36.900 | 24.600 | 24.600 | 24.600 | 24.600 |
| -/- Amount unduly paid and not yet recovered | n/a | n/a | n/a | n/a | n/a |
| Remuneration | 36.162 | 23.862 | 23.862 | 23.862 | 23.862 |
| The amount of the excess, and the reason why the excess has or has not been authorised. Explanation of claim for undue payment | n/a | n/a | n/a | n/a | n/a |
| Data 2024 | |||||
|---|---|---|---|---|---|
| amounts x €1 | H.C.P. Notes | M.R. van Lieshout | H. Setz | G.M. van Dijk | P.A.N. ten Kroode |
| Job details | Chair | Member | Member | Member | Member |
| Commencement and end of office in 2024 | 01/01 – 31/12 | 01/01 – 31/12 | 01/01 – 31/12 | 01/01 – 31/12 | 01/01 – 31/12 |
| Remuneration | 34.251 | 22.601 | 22.601 | 22.601 | 22.601 |
| Individually applicable remuneration cap | 34.950 | 23.300 | 23.300 | 23.300 | 23.300 |
| -/- Amount unduly paid and not yet recovered | n/a | n/a | n/a | n/a | n/a |
| Remuneration | 34.251 | 22.601 | 22.601 | 22.601 | 22.601 |
| The amount of the excess, and the reason why the excess has or has not been authorised. Explanation of claim for undue payment | n/a | n/a | n/a | n/a | n/a |
[31] Audit fees
In accordance with Section 2:382a of the Dutch Civil Code, this note explains the audit fees related to the services received from the audit firm in 2025. They consist of the audit of the financial statements of €319 thousand (2024: €310 thousand), the review of sustainability information in the annual report of €230 thousand (2024: €105 thousand) and for other audit work of €24 thousand (2024: €42 thousand). There are no fees for tax advisory services and other non-audit services by the external auditor.
Zwolle, 13 March 2026
Supervisory Board
drs. H.C.P. Notes (chair)
Dr. M.R. van Lieshout (Supervisory Board member)
Dr. H. Setz MBA (Supervisory Board member)
Prof G.M. van Dijk (Supervisory Board member)
Dr. P.A.N. ten Kroode (Supervisory Board member)
Executive Board
ir. Tjeerd R. Roozendaal