Newsletter Q2 2025

Dear members of the WelMac Circle, as always, we're bringing you an overview of the past quarter. We have a wealth of information to share with you this time, including harvest results, developments on the farm, changes to our board, and the upcoming listing on the NPEX stock exchange. As always, we strive to share everything with you as comprehensively and clearly as possible through this newsletter, but we understand you may have questions. If so, please feel free to email us at info@welmac.nl, and we'll do our best to get back to you as soon as possible.

Donald Boers Resigns as Statutory Director and CFO of WelMac

Welgevonden Macadamia B.V. announces that Donald Boers will resign as Statutory Director and CFO of the company effective July 31, 2025.

Over the past few years, Donald Boers has contributed to establishing financial structures and budgets, managing cash flow, and supporting strategic decision-making. The company is grateful for his commitment and dedication during this period. Although Boers is stepping down as a director of WelMac, he will remain involved as a shareholder of Berkshire Holding B.V. for the time being. Berkshire Holding B.V. is the majority shareholder of WelMac, meaning he will continue to contribute to the company's strategic direction for the time being.‍

Change of the Board of Welmac Trust Office Foundation

Nicolas Grooss stepped down as secretary of STAK WelMac effective July 14, 2025. His role has been taken over by Mr. Nick Grooss, who is probably already known to most of you as one of the founders of Welmac and a shareholder and director of Berkshire Holding BV.

Update Zuid-Afrika

Harvest

We are finished with the 2025 harvest which had a total WNIS volume of 239,464 which was within expectation taking into consideration that we removed 20ha of mature trees due to their low historic yield levels.

The graph below reflects the historic yield per season for the mature trees and production is highly influenced by climate fluctuations of which the behaviour can clearly be seen below.

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The large driver of our growth is our young orchards which are now year by year coming into production and have a growing volume as they reach maturity. The graph below reflects the various blocks with their performance from 2022 when the first blocks started to produce nuts. This will now be an ongoing process with blocks 8,9 and 11 reaching maturity in 2026.

The rate of production is also influenced by climate factors, a clear example of how sensitive and unpredictable trees are can be seen when we compare the production of blocks 8,9 and 11 for year 2023 during which block 11 produced a significantly higher yield than block 8 and 9 although they are the same age.

The rate at which the yield is increasing year on year are within our expectations and above industry norms.

Quality

The quality of Welmac’s macadamia nuts was again above the regional norms and delivered very good results above our expectations. The graph below shows the historic total kernel recovery, usable kernel recovery and unsound in a percentage form.  The sound kernel had an improvement of 12.66% when compared to 2024 with the unsound increasing only 1.5% but is still within industry norms.

We are very proud of this achievement as quality is crucial and Welmac’s production team have consistently produced high quality macadamia. The quality is the highest in our history with only 2020 coming close but take into account that the 2020 season was about 25% in terms of volume compared to 2025.

Price levels and marketing

The macadamia industry went through incredibly challenging times during the last three years with prices falling to historic lows. The global macadamia industry have been on a recovering path since 2024 with annual prices improving year on year on the back of growing demand.

Note that the final price for the 2025 season will be confirmed when we have received all the payments as the last nuts were delivered early August 2025.

The consumer is getting more product choices that contain macadamias than ever before. Macadamias are also getting a lot more media attention ranging from macadamia being used in food shows to various new products being produced for the consumer. This process is opening more markets which will reduce the risk of future price fluctuations.

Marketing was done through Swiss Gourmet which we also supplied with nuts in the 2024 season which worked very well.

Replacement of old trees.

In the previous newsletter we mentioned that we removed 20 ha of mature trees which had a history of low production volumes. The process is well underway to plant the new replacement trees when the spring season starts in September.

2026 production season

The work for the new production season is well underway as we finished the pruning after the harvest and have started with the production steps for the new season. The first flowers on the early cultivars have already started to form, we are looking forward to the new season.

Albasini nursery

The nursery experienced an exceptionally good 2024/2025 summer season with an increase in sales. For the financial year of 2024 the nursery had a sales growth of 230% compared to the financial year of 2023 which is an indication that the macadamia industry is normalizing and farmers are beginning to replace older orchards as well as plant new orchards. The 2023 season had very little sales due to the low macadamia price levels.

As part of our drive to improve sales for the nursery we started to give farmers the option to buy a seedling which have been grown in a larger bag at a slightly higher cost. The farmer is however getting a stronger and more resilient tree which will survive better when planted in the field. This initially started as an experiment for Welmac only and when farmers noticed the trees in the bigger bags with the larger root systems, we received more enquiries and orders for the larger trees which is now a part of our product offering to our customers.

Update on listing of share certificates on NPEX stock exchange

Below follows an update regarding the listing of share certificates on the NPEX trading platform. For this purpose, a distinction is made between certificates that are already listed on Nxchange and certificates that are not listed on Nxchange.

Certificates not listed on Nxchange (purchased between August 2021 and 31 December 2024)

These share certificates will be listed on the NPEX trading platform from 1 September 2025. You can already view WelMac's company profile page on the NPEX website and have your share certificates previously purchased through Welmac placed on your NPEX account using the step-by-step plan below.

Buying share certificates in WelMac – how it works:

1. You invest directly through WelMac
You register with Welmac and complete your investment in share certificates there. After completion, you will receive a confirmation of participation.

2. Create a free account with NPEX
Create an account via this link. This is necessary to have your share certificates administered and visible in your portfolio.

3. Enter your personal information
NPEX is legally required to request and verify the data of all its investors (Know Your Customer policy). Even though you have already provided this information to WelMac, you must now provide it again. The following topics will be covered:

- Name and address
- Fiscal questions
- Uploading a copy of your passport (front and back)
- Sign for NPEX terms and conditions
- Profile questions (customer Due Dilligence)
- Questionnaire on investment knowledge and experience
- Verify bank account with a €1,- transfer

4. Complete the contribution form
Complete the contribution form through this link, authorizing NPEX to credit the share certificates purchased from WelMac to your securities account.

5. Share certificates transferred to NPEX
After processing the form, your share certificates will be administratively transferred to NPEX and securely registered.

6. Share certificates visible in your NPEX account
Once processing is complete, the share certificates will be visible in your online portfolio at NPEX.

7. Updates from WelMac
WelMac regularly keeps you informed of company developments and important shareholder information.

Share certificates not listed on Nxchange (purchased between January 1, 2025, and December 31, 2025)

This offer of share certificates is still ongoing. The share certificates purchased within this offer will be listed on the NPEX trading platform no later than after the offer closes. You can, of course, already create an NPEX account and follow the steps above, but the certificates will not be immediately visible in your NPEX account.

Share certificates already listed on Nxchange (purchased before August 2021)

Transferring share certificates already listed on Nxchange will unfortunately take a little longer. If you have already claimed your share certificates and they are therefore accessible through your Nxchange account, they will remain listed on Nxchange for the time being. A poll will be shared later on the Welmac page of the Nxchange website, where you can indicate whether you want to keep your certificates on Nxchange or transfer them to the NPEX platform. Further information will follow by email.

2024 Annual Accounts

The consolidated annual accounts for 2024 have been prepared and recently approved by the shareholders of WelMac. You can view the annual accounts via this link.