The consolidated financial statements have been prepared in accordance with the statutory demands of Title 9 Book 2 DCC and the Dutch Accounting Standards for Annual Reporting (RJ).

The valuation and determination of the results are based on historical costs unless indicated otherwise. Revenue and costs are assigned to the year to which they occur. Profits are recognised only to the extent that they are realised on the balance sheet date, unless indicated otherwise. Obligations and any losses that originated before the end of the reporting year are recognised as they were known when the financial statements were prepared.

The items in the financial statements of the group companies are valued based on the currency of the economic environment in which the group companies carry out the majority of their activities (the functional currency). The euro is the functional and performance currency of DELA Group.

Transactions in foreign currencies during the reporting period are recorded in the financial statements at the exchange rate on the transaction date. Assets and liabilities in foreign currency that are valued at their current value are converted at the exchange rate on the balance sheet date. Exchange rate differences that occur in the settlement of monetary items are recognised in the income statements in the period in which they occur.

Assets valued in foreign currency at the historical cost are converted at the exchange rate (or the approximate exchange rate) on the transaction date.

DELA Group is compensated for losses on issued insurance contracts by contracts made with reinsurers.

Reinsurance premiums, provisions and payments as well as technical provisions for reinsurance contracts are accounted for in the same way as the direct insurance to which the reinsurance applies. The share of reinsurers in the technical provision to which DELA Group is entitled as a result of its reinsurance contracts is subtracted from the gross technical provision. Short-term receivables from reinsurers are included under Receivables.

The valuation of amounts due from or payable to reinsurers takes place in accordance with the conditions of the reinsurance contracts. Reinsurance obligations primarily consist of premiums payable.

Receivables due to reinsurance contracts are assessed on the balance sheet date for any impairments.

The intangible fixed assets are valued at the amount of the incurred costs, minus the cumulative depreciations and, where applicable, impairments. The economic useful lives and depreciation method are reassessed at the end of the financial year and the depreciation terms are reviewed if any significant changes are detected. A statutory reserve is established for the costs of internal development, equivalent to the value of the capitalised amount.

See section 2.8 to determine whether an impairment applies to an intangible fixed asset.

Any paid goodwill for acquisitions is valued at fair value at the time of acquisition. This value is determined based on the sum that would have been paid between independent parties who are well-informed and willing to make the relevant transaction. The goodwill is depreciated linearly based on the expected economic lifespan, which is assessed annually. The current expected lifespan of various goodwill positions is between 20 and 30 years.

The future cashflows from acquired insurance portfolios are valued at fair value determined at the time of acquisition. This value is determined based on the sum that would have been paid between independent parties who are wellinformed and willing to make the relevant transaction, and it is depreciated linearly based on the expected economic lifespan, which is assessed annually. The current expected lifespan for acquired insurance portfolios is 20 years, calculated from the acquisition date.

Investments in software systems are capitalised and amortised on a straight-line basis over the expected useful life, with a maximum of 10 years.

The principle for valuation and result determination per investment category is described below. The majority of the investments are valued at the fair value. Any further clarification of the fair value required is provided in section 5 in the notes on the balance item. Both unrealised and realised gains and losses due to the sale and value change of investment are recognised in the income statement. Transaction costs related to the purchase sale of investments are directly recognised in the income statement.

Real estate is valued at the fair value on the balance sheet date. Changes in the value of investments in real estate are recognised in the income statement. If these changes in value are cumulatively positive, a revaluation reserve is formed and charged against the free reserves, taking into account deferred taxes. Section 5.2 provides further details on the valuation method.

Participations in which a significant influence can be exercised are valued in accordance with the net asset value method. A legal presumption of significant influence occurs when 20 percent or more of the voting right can be exercised.

The net asset value method is calculated in accordance with the principles that apply to these financial statements; for participations for which insufficient data is available to change these principles, the valuation principles of the relevant participation are applied.

A participation that is valued as negative in accordance with the net asset value method is valued at nil. If and insofar as DELA Group is partially or fully responsible for the debts of the participation, a provision will be made. The initial valuation of participations is based on fair value of the identifiable assets and liabilities at the time of acquisition. From then on, the principles related to these financial statements apply, based on the value at initial valuation.

Participations without significant influence are valued at the historical cost. If a sustainable devaluation applies, valuation is at this lower value. Impairment is recognised to the income statement.

The receivables from participations included under financial fixed assets are valued at the fair value of the provided amount, which is normally the nominal value, minus any provisions deemed necessary.

Shares are stated at fair value based on official listings in the financial markets. Value changes are recognised directly in the income statement.

Bonds are stated at fair value based on official listings in the financial markets.

DELA Group has forward exchange contracts and an option for extra shares in a participation; both are valued at fair value. In addition, DELA Group has convertible loans. This involves a compound financial instrument which comprises a loan and an embedded derivative, namely the option to convert the loan into shares. This embedded derivative is separately stated at fair value. The profit and loss from the revaluation into fair value on the balance sheet date is immediately recognised in the income statement. It involves all non-listed items which are valued based on financial models – the 'mark-to-model' method. Any derived financial instruments with a negative value are categorised on the balance sheet under short-term liabilities.

Receivables from mortgage loans are valued at the amortised cost price. The direct costs related to the provision of a mortgage loan are included as acquisition costs. They are part of the amortised cost price and are capitalised on the balance sheet. An assessment will be made on the balance sheet date as to whether there are objective observations for the impairment of the receivables resulting from mortgage loans. The loss is accounted for in the income statements if this proves to be the case.

The investments in company loans are stated at fair value. Other loans with a fixed interest are valued at amortised cost price minus a provision for doubtful debts.

Participations in real estate funds, infrastructure funds and agriculture & forestry funds are stated at fair value. This item includes investments without frequent market listing. Section 5.2 provides further clarification of the valuation method. Value changes are recognised directly in the income statement. In addition, a revaluation reserve is established for the unrealised value increase.

Participations in mortgage funds are stated at fair value. This item includes investments without frequent market quotation. Section 5.2 provides further clarification of the valuation method. Value changes are recognised directly in the income statement.

Investments in cash and cash equivalents are stated at fair value, which equals the nominal value.

Other financial investments are stated at fair value. This item includes investments without a frequent market listing. Section 5.2 provides further clarification of the valuation method. Value changes are recognised directly in the income statement. In addition, a revaluation reserve is established for any unrealised value increase. An exception is the art collection which is valued at historical cost.

Receivables are initially recorded at fair value, then valued at the amortised cost price. Any provisions deemed necessary for possible losses due to doubtful debts are subtracted. These provisions are determined based on an individual assessment of the receivables.

Deferred tax assets are included for any temporary differences between the value of the assets and the liabilities in accordance with the tax regulations on the one hand and the valuation principles used in these financial statements on the other. The deferred tax assets are calculated based on the tax rates applicable at the end of the reporting year or the rates that will apply in the coming years, insofar as these have been legally established.

The funeral centres owned by the funeral services entity are classified as property held for own use. They are valued at the acquisition cost minus any accumulated depreciation and, if applicable, impairment losses. Depreciation is based on the expected future useful life and calculated using a fixed percentage of 3 percent of the acquisition cost, taking into account any residual value. Depreciation starts from the moment the assets are put into use. No depreciation is charged on land. Periodic large-scale maintenance is capitalised using the component approach, with total expenditures allocated to the constituent parts.

Other tangible fixed property in own use are valued at the historical cost, minus cumulative depreciations and, where applicable, impairments. The depreciations are based on the expected future term of use and calculated based on a fixed percentage of 3 percent of the historical cost, taking any residual value into account. Depreciation is applied from the moment an object is taken into use. Land is not subject to depreciation. Periodical large-scale maintenance is capitalised in accordance with the component approach, in which the total expenditure is attributed to the component parts.

The other tangible fixed assets including inventories and vehicles are recorded at the historical cost minus depreciations based on the expected tangible fixed assets lifespan, taking any residual value into account. The costs of major maintenance are capitalised in accordance with the component approach and depreciated over the expected lifespan. Depreciation occurs linearly, under the following depreciation terms:

• Installations: 10 years;
• Inventory: 10 years;
• Hearses: 8 years;
• Other vehicles: 5 years;
• Company clothing: 2 years;
• Laptops: 4 years

The inventory is valued at the historical cost in accordance with the FIFO (first in, first out) method or lower market value. The historical cost includes all costs associated with the acquisition as well as any costs incurred for storage in their current location and condition. The lower market value is the estimated sales price minus any directly attributable sales costs. The obsolescence of the inventory is taken into account when determining the lower market value.

DELA Group assesses on the balance sheet date whether there are any indications that a fixed asset is subject to impairments. If so, the realisable value of the individual asset is determined. Should it not be possible to determine the realisable value for the individual asset, the realisable value of the cashflow generating unit of which the asset is part is determined. Estimates are used here. An impairment occurs when the book value of an asset is higher than the realisable value. The realisable value is whichever is highest between the fair value and the value in use.

If it is determined that a previously accounted impairment no longer exists or has been reduced, the impairment is reversed to at most the book value that would have been determined if no impairment had been attributed to the asset.

With regard to financial instruments, DELA Group also assesses on each balance sheet date whether there are objective indications of impairments of a financial asset or group of financial assets. In the event of such indications, the scope of the loss resulting from the impairment is determined and recognised directly in the income statement.

For financial assets that were valued at the redemption value, the scope of the impairment is determined as the difference between the book value of the asset and the best possible estimate of the future cashflows, discounted at the effective interest rate of the financial asset as determined in the initial processing of the instrument. Any reversal of an impairment loss is limited to at most the amount that is required to value the asset at the amortised cost price. The reversed loss is then recognised in the income statement. An impairment loss on goodwill will not be reversed in the future.

Receivables are valued at nominal value minus any provisions deemed necessary for potential losses resulting from doubtful debts.

Cash and cash equivalents involve cash and bank balances. Any current account debts to banks are classified as short-term liabilities under debts to credit institutions. Cash and cash equivalents are valued at face value.

The minority interest in the group equity involves the third-party minority interest in the equity of the consolidated companies. The minority interest in the result of the consolidated companies is deducted from the group result in the income statement.

If the loss attributable to the minority interest exceeds the minority interest in the equity of the consolidated companies, the loss and any possible further losses shall be entirely borne by DELA Group unless and insofar as the minority shareholder has the obligation and is able to cover these losses. Should the consolidated companies start to make a profit again, this profit will be passed on to DELA Group until any loss covered by DELA Group has been fully repaid.

Provisions are made for legal or constructive obligations that exist on the balance sheet date for which it is probable that an outflow of resources will be necessary and the scope of this outflow can be reliably estimated.

The provisions are valued as a best estimate of the amounts required to settle the obligations on the balance sheet date. The provisions are valued at present value of the expenses that are expected to be necessary to settle the obligations, unless stated otherwise.

If it is expected that a third party will pay the obligations and it is likely that the payment will be received once the obligation has been settled, the payment is included in the balance sheet as an asset.

The pension plan of the group companies in the Netherlands consists of a defined contribution scheme in which participants build up a capital with which they are expected to purchase pension benefits at the time of their retirement.

The main features of this scheme are:

• The employer pays a monthly premium for each employee to the pension provider;
• The pensionable salary is 1.1666 times the full-time monthly wage paid in the calendar month, with an annual maximum (2024: €137,800);
• The pension base over which the employer contributes a premium is the pensionable salary minus the franchise
• (2024: €17,545);
• A pension premium of 22 percent is paid to the pension provider for personnel who were employed from 1 January
• 2022. The premium for those who joined the company prior to that date is based on an age table with incremental
• premium percentages;
• Personnel employed from 1 January 2022 pay a contribution of 6 percent of the pension base, while those employed
• before that date pay 4.5 percent;
• The scheme does not result in any obligation on the balance sheet date, with the exception of obligations resulting
• from future premiums.

Participants are also insured for a partner pension with a scope of 1.16 percent of the pension base multiplied by the number of years of service from when they started participating in the pension scheme to the pensionable age. The orphan’s pension is 20 percent of the partner pension. Participants are subject to a premium exemption in the event of disability. In addition, there is an additional disability benefit insurance that pays out depending on the level of disability.

Pension schemes in the Netherlands are subject to the conditions of the Dutch Pension Act. DELA Group pays premiums to insurance companies on a compulsory, contractual or voluntary basis. The premiums are accounted for as personnel costs as soon as they are due. Advance premiums are included as accrued assets if they result in reimbursement or a reduction of future payments. Premiums that have yet to be paid are included in the balance sheet as an obligation.

A defined contribution scheme applies in Belgium. Upon retirement, participants can choose to be paid the capital as a one-off amount or convert it into a periodic pension payment. The main characteristics of this pension scheme are:

• The employer pays a monthly premium to the pension provider;
• The premium is 4 percent of the reference salary, plus 4.4 percent tax;
• The reference salary is 13.92 times the gross monthly salary.

Employees are also provided with a life insurance policy in which the bereaved receives the insurance capital if the employee dies before the end date. In addition, the insured receives a replacement income in the event of disability due to illness, pregnancy or a personal accident.

The statutory pension premiums in Germany are paid via monthly social insurance premiums. There is no additional company pension.

The provision for work anniversaries is included as expected costs during the course of employment. The actuarial method applied to determine the provision is known as the Projected Unit Credit method, which takes into account future salary increases, survival and disability rates, and more. For the general salary increase of 2.0 percent (2023: 2.0 percent), the AG Generation Table 2024 and WIA/IVA data have been applied. The calculated obligation was then discounted by 3.4 percent (2023: 3.2 percent).

For any tax amounts to be paid in the future resulting from differences between commercial and fiscal balance sheet valuations, a provision is made equivalent to the sum of these differences multiplied by the applicable tax rate. This provision is then reduced by the still to be settled tax amounts resulting from tax loss carry-forwards insofar as it is likely that the future fiscal profits will be available for settlement. The provision for deferred tax obligations is stated at nominal value.

The calculation of the deferred tax obligation applies the tax rates applicable at the end of the reporting year or the rates that will be applicable in coming years, insofar as these have been legally determined. The tax rate at the end of 2024 in the Netherlands was 19 percent over a profit of up to €200,000 and 25.8 percent for higher amounts. In Belgium the tax rate at the end of 2024 was 25 percent. In Germany, the applicable nominal value of 30 percent is taken into account.

If the effect of the time value of money is material, the other provisions will be valued at the present value of the expenses expected to be needed to settle the relevant obligations. Discounting is based on a discount rate for taxes that ref lects both the actual market value and the specific risks related to the obligation. If the effect of the time value of money is not material, the other provisions are stated at nominal value. Unless otherwise stated, the other provisions are stated at present value.

Profit sharing is calculated actuarially and has a provisional nature. The profit share is determined by the general meeting on the recommendation of the Executive and Supervisory Boards. The processing of the discretionary profit share takes place via the technical provisions item. The addition of the amount the DELA Group has appropriated for discretionary profit distribution under the technical provisions is charged to the result.

Determining the technical provisions is a process that by its very nature involves uncertainties. The actual payments depend on factors such as social, economic and demographic trends, inflation, investment returns, the behaviour of policyholders, and assumptions about mortality developments. Any application of different assumptions for these factors than the tariff principles currently used in the financial statements could have a material effect on the technical provisions and underwriting costs (see also 5.10: Liability adequacy test).

For payments based on insurance policies that are expected to be made in the future, an obligation is included as soon as the policy is implemented. The obligations for funeral insurance at own expense and risk consists of the (with tariff interest) discounted value of the expected future payments (based on the mortality rate and including already appropriated profit distribution) to policyholders or other beneficiaries, minus future premiums. 

The majority of the technical provisions for own-risk funeral insurance as established in the Netherlands are calculated in accordance with the pure net method at an interest of 2.75 percent and based on the GBMV 1995-2000 mortality table as published by the Actuarieel Genootschap, using the principles related to mortality and interest. For insurance policies with a temporary premium payment, the actuarial interest for the period after the end date of the premium payment is 2 percent.

The technical provisions related to the Yarden portfolio acquired in 2021 are subject to principles that fall under a valuation at fair value at the time of acquisition. The actuarial interest is 1.3 percent on average and the mortality rate is based on the 2020 prognosis table of the Actuarial Society of the Netherlands. Lapses due to other causes than death were also taken into account at the moment of acquisition based on empirical data and the actual cost level. In addition, there are two additional provisions regarding the Yarden portfolio:

• DELA created a provision of €62.4 million to finance the future indexation of the Yarden package policies. Indexation has now been awarded for a number of years. These future indexations are estimated at the moment of acquisition and the fair value of this provision will be the present value of these withdrawals.
• DELA also guaranteed that bereaved will not have to pay inflation deficits for the first ten years after the acquisition. These deficits are estimated at the moment of acquisition and discounted resulting in the fair value of the commitment.

The majority of technical provisions for own risk funeral insurance as established in Belgium are calculated in accordance with the pure net method at the usual interest from the moment of implementation and based on the usual mortality table, using the principles related to mortality and interest. The expected payments are based on the principles of the rate as determined when the policy was signed. 

The technical provision for DELA Sorgenfrei Leben is calculated in accordance with the pure net method at an interest of 2 percent. The mortality rate is based on tables produced by the German Actuarial Society. The technical provisions in the insurance portfolio acquired in Germany in 2022 are subject to principles associated with a valuation at fair value on the acquisition date. The actuarial interest is 2.5 percent on average, and the mortality rate is based on the prognosis for 2022 by the Actuarial Society of the Netherlands.

The technical provision for the DELA LeefdoorPlan (life insurance plan) is calculated in accordance with the pure net method at an interest of 3 percent and based on the tables published by the Actuarial Society of the Netherlands when the rate was introduced.

The technical provision for DELA Activ Leben is calculated in accordance with the pure net method at an interest rate of 3 percent plus a provision for unearned premium. The mortality rate is based on mortality tables as produced by the German Actuarial Society.

The technical provision for the DELA CoöperatiespaarPlan (savings plan) is calculated in accordance with the built-up policy value based on the paid savings premiums, the already allocated profit shares and the interest rate linked to the rate.

The premiums include surcharges for the coverage of the costs. When the premiums are received or are due, the surcharges are released and made available for the coverage of the actual costs, which includes ongoing costs and acquisition costs.

The deferred acquisition costs are deducted from the provision.

Long-term liabilities have a term of more than one year and are initially processed at fair value, which is initially the same as the amortised cost price. Transaction costs that can be attributed directly to the acquisition of the liabilities are valued in the initial processing, after which long-term liabilities are valued at the amortised cost price. This consists of the amount received, taking into account agio or disagio minus the transaction costs. If no (dis)agio applies, this amount is the same as the nominal value.

The difference between the determined book value and the eventual payment value is processed as interest costs in the income statements based on the effective interest rate during the estimated term of the liabilities.

Short-term liabilities are valued in the same way as long-term liabilities, although they have a term of one year or less.

Accrued liabilities are stated at nominal value.

DELA Group does not have any financial lease contracts. Lease contracts that do not qualify as a financial lease are listed as operational leases. For operational leases, the lease payments are processed linearly at the expense of the result over the course of the lease.

The gross premiums consist of the premiums that are payable by policyholders for insurance contracts. The gross premiums excluding taxes and other fees resulting from insurance contracts are recognised as income when they are due by the policyholder. For single premium contracts the premium is recognised as income when it is due, with any cost and risk coverages being postponed and recognised in the result in a constant proportion to the ongoing insurance.

The reinsurance premiums include the premiums resulting from reinsurance contracts. They are recognised as a cost in the income statements pro rata to the term of the contract.

The income of the funeral company is recognised at the moment the services are delivered.

Other turnover accounts for the income resulting from other sources than the operational activities of DELA Group.

Net turnover is the income from the delivery of goods and services minus discounts and similar deductions, as the taxes imposed on the turnover, and after the elimination of transactions within DELA Group. One of these eliminations pertains to payments by the insurer used for funerals at the funeral company.

Acquisition costs are costs directly related to the implementation of insurance policies, which depend on and relate to the acquisition of new insurance contracts or the extension of existing ones. The acquisition costs consist of commissions paid to third parties for insurance products. The acquisition costs are deducted from the technical provision, depreciated over ten years and charged against the result. The annual commissions are offset by the commissions recovered throughout the year. Acquisition costs are deducted from the technical provision insofar as they can be reclaimed from the expected gross result of the underlying new production of that year. The depreciation period is assessed periodically. Where applicable, the depreciation cost is adapted to the shorter depreciation period, which currently stands at ten years. As part of the liability adequacy test, impairments to the attributed acquisition costs are assessed annually and a determination made as to whether the future contribution from the insurance products is sufficient to cover the attributed costs.

Wages, salaries and social security costs are recorded in the income statement insofar as they are payable to employees and tax authorities.

These are items that result from the ordinary operational activities but which are kept out of the operational result due to their nature, scope or incidental character. The goal is to enhance the analysis and comparability of the operational result over the years.

Intangible fixed assets and other intangible assets are depreciated over the expected future useful life of the asset from the moment it is taken into use. Land is not depreciated. Future depreciations are adapted accordingly if there is a change to the estimated economic useful life. Book profit and loss from the incidental sale of tangible fixed assets is recognised under exceptional income and expenses.

Taxes on the result are calculated over the result before tax in the income statement, taking into account any tax loss carry-forwards (insofar as they are not included in the deferred tax assets) and tax-exempt income, and after adding non-deductible costs. Future changes to the tax rate are also taken into account.