8.6 Own workforce

Nedap strives to be the preferred organization for top-tier talent by fostering a culture of growth and excellence, and by facilitating an inclusive work environment where people feel safe, valued and empowered. This ambition is embedded in our People strategy and reflects our long-term focus on developing and retaining the capabilities needed to achieve our strategic objectives. We realize this by offering personal and professional development opportunities, translating our Diversity, Equity and Inclusion (DEI) vision into action, and making procedural improvements (e.g., updating our hiring policy for senior management positions) aimed at strengthening inclusion across the organization. Our workforce includes employees directly employed and paid by our legal entities, as well as non-employees, such as secondees, self-employed contractors, temporary workers, and students.

We acknowledge the risk that due to fast-moving developments in technology, we are unable to keep all our own employees’ knowledge up to date, leading to a loss of our competitive advantage. When we are unable to foster a diverse, equitable, and inclusive work environment, this may negatively impact the well-being of individual employees and non-employees. When workers (employees and non-employees across all Nedap entities), regardless of their background, identity, or lived experience, do not feel empowered to be their authentic selves, they may also experience barriers to reaching their full potential. Risks include losing well-qualified workers and not being able to attract new, qualified individuals due to reputational damage and missed talent due to a lack of inclusive environments and processes. We have not identified any groups of people, such as people working at specific Nedap offices or individuals undertaking particular activities, who are at greater risk of harm.

8.6.1 Policies related to own workforce

Nedap has implemented several policies related to its own workforce, which are detailed below.

Human rights

Nedap’s dedication to upholding human rights, as defined by the United Nations in its Universal Declaration of Human Rights, is formalized in Nedap’s human rights policy document. We support the principles set out in the OECD Guidelines for Multinational Enterprises and those in the ILO Declaration on Fundamental Principles and Rights at Work. Any investigations, based on the OECD guidelines, are conducted in a way that corresponds with Nedap’s size and the nature and context of its operations, as well as the severity of the risks of adverse effects on human rights. This policy applies to all our employees and non-employees worldwide. We also specifically address human rights in our code of conduct and explicitly reject any form of trafficking, forced labor, and child labor. Our current human rights policy does not describe mechanisms and processes for monitoring compliance with the United Nations Guiding Principles on Business and Human Rights, ILO Declaration, and OECD Guidelines, nor are there measures in place to remedy any negative impact on human rights. We will assess whether such additions are necessary for Nedap. For more information on our human rights policy, please refer to section 3.1 Business integrity.

Workplace accident prevention

We comply with all relevant laws and regulations regarding working conditions and employee health to create a safe work environment for our employees. We have not deemed it necessary to formalize this in a policy. At our Nedap office in the Netherlands, we have two designated prevention officers and a well-functioning, trained Emergency Response Team consisting of around 90 people. As mandated by law, we have a risk inventory and evaluation, plan of action, and company emergency plan in place that describe risks related to the work environment and instructions for responding to possible situations. All Nedap subsidiaries globally have implemented their own prevention policies in compliance with local laws and regulations. We will implement a periodic review process to ensure the prevention policies of our subsidiaries remain up to date. For more information, please refer to section 3.1 Business integrity.

Equal opportunities

As outlined in our code of conduct, we do not permit any form of discrimination. Nedap has also devoted significant time and attention to DEI in recent years, with a focus on strengthening how diversity, equity, and inclusion are embedded in its organization. Following structured discussions on this topic, we translated our insights into the first iteration of our Nedap-wide DEI vision and action plan, which has been approved by the Board of Directors. Our DEI policy serves as a starting point. Recognizing both the importance and complexity of this topic, we will continue to enhance our insights and refine and expand our policies.

Personal development

Nedap’s talent development approach is built on entrepreneurship and continuous growth. We empower employees to take ownership of their development by providing an ecosystem with the right, development opportunities to learn and thrive. We foster a culture where curiosity and autonomy are valued, encouraging individuals to explore new challenges and expand their expertise. Through a comprehensive training portfolio, bespoke training programs, coaching and mentoring, and real-world experience, we support personal and professional growth aligned with both individual aspirations and Nedap’s ambitions. By investing in our people, we strengthen our collective ability to add value and drive innovation. Talent development at Nedap is not a rigid framework, but an ecosystem designed to help people identify and reach their full potential. More information on talent development can be found in the subsection People and talent development of section 2.3 Progress on our people.

Whistleblower policy

The whistleblower policy describes the procedure for safely reporting (the suspicion of) misconduct or irregularities. Misconduct refers to situations that can have serious consequences for our organization, our employees, other stakeholders, and/or society. Irregularities are failures or errors in execution, structures, processes, or procedures within the organization that are so serious that they exceed the responsibility of direct management.

8.6.2 Processes for engaging with own workforce

Within Nedap, we have various formal and informal channels to engage with employees. We elaborate on these channels in the paragraphs below.

Works council

In line with the Works Councils Act (“Wet op de Ondernemingsraden”; WOR), the works council has the right to promote and protect the interests of employees, while also considering the overall interests of the company. At Nedap, the threshold for informing and escalating issues to the Board of Directors or management is low. Nevertheless, Nedap’s management takes its obligation of involving the works council in important decisions in a timely manner seriously. These include decisions regarding organizational changes and large financial decisions.

The Board of Directors has an open line of communication with the works council, resulting in valuable exchanges about both legally mandated issues and other relevant topics.

The works council holds monthly meetings, alternating between consultation meetings with the company’s Board of Directors and independent meetings without the Board of Directors present. The meeting minutes are published and available to all employees.

The Board of Directors sets the overall agenda. As part of the consultation meetings, the works council brings forward issues raised by employees. During the year, the works council also meets with the Supervisory Board of Nedap N.V. to discuss the strategy of Nedap and evaluate its working relation with the Board of Directors.

Trade unions

Nedap N.V. has its own collective labor agreement (CLA), negotiated and concluded with the trade unions active at Nedap, FNV, and De Unie. Every year, these trade unions prepare a proposal for a new CLA. Typically, a new CLA is concluded for one year, beginning on 1 April. The negotiations for a new CLA are conducted between a delegation from management, Human Resources, and legal affairs, along with a representative from the relevant union and a Nedap union member. A delegation from the works council attends the negotiations, acting as observers. These discussions culminate in a so-called negotiation result, a document outlining the main points of the new CLA. This negotiation result is then presented to the union members at Nedap. Upon approval, the unions and management sign the CLA, after which it comes into force. Nedap’s employees can participate in the process by becoming members of the relevant unions, FNV, and De Unie.

Whistleblower policy

Nedap’s corporate culture is based on transparency and personal responsibility. We encourage our employees to speak up to prevent or quickly resolve undesirable situations. We recommend employees talk to someone they trust, such as a colleague, team captain, or the Compliance Officer about their concerns. When this is not a viable option, the procedures of the whistleblower policy can be used.

Confidential counselor

The confidential counselor is an impartial point of contact at work for employees who are confronted with unwanted behavior. The counselor offers a safe place to talk, helps in finding informal solutions, guides in formal procedures, advises the employer, and provides information to promote a safe working environment. In many cases, simply talking about such topics provides relief. Examples include integrity violations, sexual harassment, aggression, discrimination, and bullying. Nedap has two types of confidential counselors: confidential counselors for undesirable behavior (CCU) and confidential counselors for integrity (CCI). Nedap provides both internal confidential counselors as well as external confidential counselors.

Engagement surveys

In recent years, we have used annual questionnaires to measure employee engagement, focusing on a different department each year. As a result, each department was surveyed once every three years. Department-specific action plans were developed to follow up on outcomes. In 2025, we selected a new partner and introduced bi-annual pulse surveys, which allow us to more frequently capture employee voices. After each employee survey, captains are encouraged to identify three follow-up actions that can improve employee engagement.

Weekly Board Update

In the Weekly Board Update, a member of the Board of Directors shares their insights, relevant decisions, or vision for the future. In addition to this weekly email, we publish recent updates on Nedap’s intranet, giving employees a glimpse into the decisions and initiatives shaping our organization. This helps keep employees up to date on the latest developments and promotes a shared understanding of the direction we are taking together.

We also engaged our employees to collect the necessary insights for developing our DEI policy. In 2024, we conducted a survey among all female employees to gain insights into how they perceive opportunities for growth toward a leadership position. Building on insights from the survey, we began developing a pilot program to support the advancement of women into leadership position. The pilot is expected to launch in 2026.

8.6.3 Remediation of negative impacts and reporting of concerns

Nedap has various mechanisms and channels in place for the workforce to express concerns. We follow up on each report and monitor the effectiveness of these channels to remediate negative impacts.

Our whistleblower policy explains how employees can safely report (the suspicion of) misconduct or irregularities. Employees may report concerns to the Compliance Officer in person or by phone. Alternatively, employees may report concerns in writing via our reporting system, IntegrityLog. The IntegrityLog system helps us to register, monitor, and follow up on issues raised. We continuously evaluate the effectiveness of the system, with the number of reports submitted providing insight into employee awareness of these channels. Our General Counsel/Head of Compliance is the functional owner of this reporting system. Through the mandatory code of conduct training, which is provided to all new employees, we raise additional awareness of these channels. In addition, we use the Weekly Board Update to create awareness around this topic. We see an increase in informal notifications from our workforce.

While we encourage employees to report (the suspicion of) misconduct or irregularity internally first, we also provide the option to report concerns directly to a competent external authority, such as the House of Whistleblowers (“Huis voor Klokkenluiders”). We describe the procedure for this in our whistleblower policy.

We are investing in the expansion of training and development opportunities for our workforce. These investments contribute to a work environment where people can reach their potential. In 2025, we continued our investment in our learning management system, the Nedap Learning Platform. The platform makes it easier to access training programs, addressing feedback from employees who experience barriers to working on their development. We evaluate the effectiveness of our training and development offer by asking employees how much time they spent on their development. The Nedap Learning Platform will enhance our insights into how employees make use of our training and development offer moving forward.

8.6.4 Actions to manage our IROs and their effectiveness

Actions on diversity

One of our actions related to our own workforce is focused on achieving representation of women in leadership that is aligned with the composition of our overall workforce.

This is also reflected by our leadership targets on this topic. As mentioned previously, a DEI Lead and DEI Catalysts were recruited to lead initiatives aimed at creating a more welcoming and inclusive workplace by enabling structural process changes. The DEI team will dedicate several hours per week to enhance inclusivity, alongside their regular duties.

Several actions to further strengthen our work environment are already underway, including training on unconscious bias, inclusive leadership, and inclusive hiring. These initiatives support inclusive decision-making and leadership practices across the organization, and contribute to more equitable recruitment, promotion, and day-to-day collaboration.

In case of an adverse impact on our workforce, we will discuss the matter with the people involved. In the event of a violation of our code of conduct, we will consider disciplinary measures.

Actions on talent development

In addition to the above actions, we have a talent management approach in place that involves more targeted actions related to DEI, focusing on specific roles, teams, departments, and/or individuals. Examples include individualized development plans and the recruitment of specific profiles where we identify a gap in the existing potential within our employees.

Within talent management, we pay structural attention to gender with a focus on creating a balanced talent pipeline and realizing the full potential of female talent within Nedap. Our efforts span the top and sub-top management roles, as well as roles that feed into these management levels. As part of our talent reviews, we assess the potential of individuals in line with their career aspirations. As part of the succession planning process, we identify key positions and potential successors for the purpose of business continuity.

Leadership reviews take place in August and September. Outcomes of the leadership reviews for key positions are reported to the Supervisory Board in September. Succession planning takes place in October and November, which involves the development of action plans for potential successors of people in key positions.

The talent identification and potential assessment takes place and involves identifying talents and their potential. Talent identification covers all employees, and outcomes are communicated to the appropriate management level. Team captains then engage in conversations with the employee to create a personal development plan.

These processes are recurring, allowing us to monitor progress toward our ambitions, including our goal to achieve gender balance at various levels within the organization. We also gain insight into the effectiveness of our actions, allowing us to make adjustments as needed.

Developing our employees is both a goal and a necessity for staying relevant in a rapidly evolving world. We send out an annual development survey to our employees, which serves as an important tool for shaping our professional development offer. In 2023, we learned that many employees found it challenging to dedicate time to their development, often due to pressing responsibilities, a lack of time, and difficulty finding the appropriate development opportunities. This is one of the reasons we launched our Nedap Learning Platform. We will continue to develop more in-house trainings in the coming years.

A key area of DEI is gender balance. We disclose the gender ratios and our targets related to equality within Supervisory Board, Board of Directors, and senior management of the company, and we submit our plans of action to achieve these targets on an annual basis. In doing so, we comply with the Law on Entry Quota and Targets (“Wet Ingroeiquota”).

8.6.5 Targets related to managing our IROs

Annually, we report on gender balance and our targets for equality within the top and sub-top of the company and submit our plans of action to achieve these targets. This is in line with the Law on Entry Quota and Targets.

Our Supervisory Board composition adheres to the statutory diversity quota, ensuring at least one-third female and one-third male representation. Our Board of Directors maintains a gender balance, with at least one-third representation of both males and females. The ambition is for Nedap’s leadership to be a recognizable reflection of Nedap’s employee population. This conviction underpins Nedap’s DEI policy. Guided by this intent, Nedap set concrete targets in prior years for female representation in leadership roles, including the aim of reaching 27% female leaders by 2028. Based on developments in 2025, Nedap notes that achieving this target is under pressure. In particular, at the level just below senior management, the inflow and advancement of female leaders remain limited, and Nedap’s internal succession pipeline shows insufficient momentum. In addition, due to low natural turnover in leadership positions, changes occur gradually, meaning progress depends heavily on occasional vacancies and external hiring. Target percentages remain an important guide for Nedap, provided they are viewed in conjunction with the effectiveness of inflow and advancement mechanisms. In 2026, Nedap will therefore recalibrate its governance framework for diversity in leadership, distinguishing between the statutory Board of Directors, the NLT, and senior management, with a stronger focus on concrete and predictive indicators for inflow and advancement.  Our definition of senior management can be found in subsection 7.9.4 Senior management of section 7.9 Sustainability notes.

We share ambitions, initiatives, and progress with the works council, ensuring that we take the employee perspective into consideration. We also share the results and follow-up actions from our engagement surveys with the works council. These surveys include questions on diversity and inclusion, such as perceptions of Nedap’s commitment to diversity and inclusivity, equal treatment and non-discrimination, diversity in recruitment, and equal opportunities for people with different backgrounds.

Our ongoing target is for each employee to spend at least 40 hours on development per year, including both personal and professional development. This 40-hour target was set based on a benchmark against similar companies. This target represents our commitment to continuous learning and growth, which are key to staying competitive and resilient. It is also a benchmark and an integral part of Nedap’s sustainability policy.

8.6.6 Characteristics of Nedap’s employees

During the reporting year, none of Nedap’s subsidiaries had more than 50 employees working in their respective countries. We have included the numbers for Nedap as a whole based on how our employees are registered in our HR systems. When onboarding an employee, personal information such as date of birth and gender are taken from the identification document presented by the employee. This information is updated only when there is a change to the details on the identification document.

The number of leavers in 2025 was 91 (in 2024: 112), resulting in a turnover rate of 8.6% (in 2024: 10.8%).

All numbers are reported as of 31 December 2025 and 2024. All employees who have left Nedap, with a last working day of 31 December, are included in the headcount and FTE numbers. FTE is defined as a full-time equivalent and is based on the number of hours an employee works per week versus the subsidiaries’ standard working hours. For most employees, this is 38 hours per week.

These numbers link to the average number of employees of note 15 in section 5.1 Consolidated financial statements.

8.6.7 Characteristics of non-employees in Nedap’s own workforce

The number of non-employees is measured by headcount and represents the number of non-employees as of 31 December. All non-employees are registered in our HR systems. This provides insight into the flexible layer of our workforce and helps us to maintain a balance between employees and non-employees.

8.6.8 Diversity metrics

The table below shows the composition of senior management by gender.

We apply our own definition of senior management as stated in subsection 7.9.4 Senior management of section 7.9 Sustainability notes.

The age distribution of our employees is as follows:

8.6.9 Training and development

At Nedap, we do not track and register training hours or performance reviews in our systems, as this does not fit our culture. We also maintain a broad definition of professional development because learning and development takes place in many different formats. In addition to formal training, learning and development includes activities such as coaching, mentoring, visiting conferences, watching webinars, stretch assignments, and engaging in self-education. For this reason, we ask our employees to self-report their development hours and indicate whether they underwent any development or performance review.

In January 2026, we sent out the annual development survey. In this survey, we asked our employees to indicate the number of hours they spent on their own development in 2025, and whether they had at least one performance or career development review with their team captain or an employee from HR.