Newsletter Q1 2026

Dear WelMac Circle,

The first quarter of 2026 was a particularly sad period, marked by the passing of my son Nicolas (CEO WelMac) on February 25th following his long illness. It is a very heavy loss for the family, but it has also become clear to us that Nicolas is greatly missed far beyond the immediate family circle.

The truly hundreds of responses we received from all over the world have touched us deeply and demonstrate the enormous impression Nicolas left on many people. In that regard, his life and personality made a great impression, for which we can only be grateful.

Through this message, we would like to once again thank everyone from the bottom of our hearts for the sympathy shown.

We will all, each in their own moments, hopefully often reflect on what he meant to us.

We hope that he is at peace now and is with his little sister.

For us, the fear is gone, but the grief remains.

Nick

WelMac

In the meantime, activities at Welmac have continued as usual. Since my appointment as a director of WelMac in September 2025, by resolution of the shareholders’ meeting, I have taken on increasingly more of Nicolas’s duties, and I will continue to do so until a definitive solution is found to fill the position of CEO for the long term.

Since September, we have initiated a number of projects, still partly together, and some of these have now been (almost) completed:

Joint venture RandAgri/McNuts en WelMac

It is with justifiable pride that we can announce that we are about to take the next step in the development of Welmac within the value chain.

Since December, we have been in discussions with McNuts (https://mcnut.co.za/), a subsidiary of RandAgri, itself a major player in the agricultural sector in South Africa and other countries. RandAgri has already taken the first steps in the processing of macadamia nuts and has now also established a trading arm. Recently, the necessary facilities for this purpose were built in the province of Mpumalanga.

Together with WelMac, RandAgri intends to develop a collaboration regarding the transshipment, processing, and marketing of macadamia nuts, specifically targeting nut production throughout the province of Levubu. Through a proposed joint venture with WelMac, RandAgri expects to process 2,000 MT per year at this factory, in addition to WelMac’s production. Initially, we concluded a contract with McNuts for the purchase of our entire 2026 harvest. RandAgri offers better terms in this regard than has been customary in the macadamia industry until now. Under this arrangement, supplying farmers receive their full payment within 60 days of delivery. With ‘traditional’ processors, this process, including retroactive payments, spanned 10 to 12 months after delivery. McNuts’ new terms result in a significant improvement in cash flow, and farmers no longer need to pre-finance the processing and marketing process.

Furthermore, through the joint venture with WelMac, McNuts intends to establish a depot at the Welgevonden farm, as well as a NIS processing plant and, finally, a cracking plant to be able to supply kernel directly to the global market. For the processing of the NIS, we are focusing on the 2027 harvest, followed by kernel in 2028.

McNuts’ CEO, Rassie Luus, together with Trichard (Operations Manager), conducted an extensive survey among the larger macadamia growers in the region, and they have already successfully secured the necessary commitments to supply nuts to the joint venture. Approximately 500 MT has already been committed, but it is expected that this will quickly rise to 2,000 MT as soon as favorable payment conditions are further announced. The first batch of 30 MT was already delivered to McNuts on March 25.

Calculations by our Finance and Accounting manager indicate that a return of 11.7% can be achieved on the processing activities, which, in addition to a broader cash flow, will also make a positive contribution to Welmac’s results.

We expect to be able to finalize the negotiations with RandAgri in May.

DGGF/Invest International

Welmac and Invest International have agreed on a restructuring of the DGGF loan in which the company has been granted maximum flexibility. For instance, no repayments are required for three years, after which a refinancing process will be initiated that aligns with Welmac’s proceeds. The legal documentation is expected to be ready for signing this month.

Intensive fundraising

Intensive fundraising combined with a loyalty program raised over €2,000,000 in committed capital from September through the end of March. Assuming the current geopolitical situation does not have long-lasting and drastic consequences, WelMac is thus able to cover ongoing costs until the 2027 revenue harvest.

Processing 2026 harvest

In South Africa, 3 major processing and trading companies were approached to purchase our 2026 harvest. After receiving the terms and a risk analysis by our Manager Finance & Accounting, the choice fell on McNuts. The decisive factors were the stability of the organization behind McNuts, the significantly better payment terms and the growth opportunities this partnership offers.

At this moment, prices for NIS are not yet known, but it is expected that this will be the case within a few weeks. Regarding kernels, prices for larger styles are slightly higher than last year, while smaller nuts are priced slightly lower.

Reorganisation

The management structure has been changed, with all activities of the Finance & Accounting department being transferred to South Africa. Adele du Toit has been appointed Manager Finance & Accounting for the entire group, while Mr. Wim van der Eijk, with his many years of experience, has made himself available to guide Welmac’s marketing process.

Strategic partner

With a view to succession and long-term continuity, the Board and shareholders of major shareholder Berkshire Holding BV, together with ForestEffect Fund, initiated a process in September to identify a strategic partner. An initial offer to a Dutch company was already made on February 16, and a Letter of Interest has since been received from a South African investment fund.

NPEX

The first contribution round of WelMac certificates from STAK Welmac took place in January 2026. Additionally, a large portion of the certificates listed on Nxchange were transferred to NPEX in February 2026. Another contribution round on NPEX will take place in the week of April 20, 2026, after which trading will also commence.

If you do not yet have an NPEX account, you can open one via this link.

Update South Africa

Below you will find an update from South Africa from COO Herman Claassens.

We have experienced a very high rainfall season compared to previous years. From the start of spring on 1 September 2025 to date we received more than 1500mm of rain, and from the 1st of January 2026 we have received in excess of 950mm of rain.

We are fortunate that we have no damage to any orchards or general infrastructure. We welcome the rain but it does make it difficult to enter the orchards for normal pest and disease control.

2026 season outlook

The harvesting process has just begun on the farm and we are gaining momentum on a weekly basis. The current USA/Iran conflict has created a bit of market uncertainty with buyers coming slowly to the market, but we believe that the global market will stabilize as soon as the conflict is under control with both parties reaching agreements which seems to be on the horizon.

The global macadamia demand is increasing driven by 735 new macadamia products developed in 2025 which will be available to consumers across the world.

A big breakthrough is the Ferrero Rocher macadamia chocolate which has been well received by consumers.

Oil processors are also reporting a significant increase in macadamia oil sales as consumers are becoming more aware of the quality and health benefits of macadamia oil.

We are confident that this will grow into a good opportunity for WelMac accessing the secondary agricultural sector.

Production

The season has officially kicked off with the harvesting process. The production team managed to keep pest and disease pressure low throughout the season and we are looking forward to seeing the performance of the season as the young orchards are all getting older year on year delivering higher volumes.

Training and trade test achievement

Below you will find a report by Gerard Oosterhuizen regarding his training and trade test achievement that he completed for Welmac.

I recently had the opportunity to attend an intensive training course provided by Welmac. This course formed part of my journey towards qualifying as a Red Seal Diesel Mechanic. The training took place over four weeks and included both practical and theoretical components.

At the end of the training, I was required to complete a practical and theoretical assessment in order to qualify for my final trade test dates. After successfully passing this, I proceeded to complete my trade test.

During the trade test, I was assessed on various components, including air brakes, engine fitting, cylinder head, and gearbox. Candidates are given three attempts to pass; however, I am grateful to have successfully passed on my first attempt.

The course was challenging and required a significant amount of learning, especially mastering new concepts within a short period of time. Despite this, I gave it my best effort and am proud of what I have achieved.

I would like to thank Welmac for the opportunity and support in helping me work towards becoming a qualified Red Seal Diesel Mechanic.