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Ackermans & van Haaren (EBR:ACKB) (Regulated information in the sense of the Royal Decree of 14 November 2007)
AvH achieves a net profit of 100.6 million euros thanks to a stable contribution of the participations
* Dredging activities (DEME): important growth of turnover (+32%) and profit (+57%) in a constantly strong market * Real estate activities (Extensa and LRE): strong contribution by Leasinvest Real Estate * Financial services: both Bank Delen (-7%) and Bank J.Van Breda & C° (+6%) maintain their position well thanks to strong commercial performances * Private Equity: most participations perform reasonably well notwithstanding the weakening in the economic climate
The Board of Directors of Ackermans & van Haaren NV is pleased to announce that the consolidated net profit (part of the group) as at 30.06.2008 amounts to 100.6 million euros, compared with 122.6 million euros as at 30.06.2007.
Breakdown of the consolidated 30.06.2008 30.06.2007 net profit (part of the group) (million (million euros) euros) IFRS IFRS CONTRACTING D.E.M.E. 32.1 20.5 Rent-A-Port 2.7 - Algemene Aannemingen Van 1.3 2.2 Laere N.M.P. 1.2 3.5 Subtotal 37.3 26.2 REAL ESTATE & RELATED SERVICES Extensa -0.6 0.2 Leasinvest Real Estate 6.2 5.1 Cobelguard 0.3 0.2 Financière Duval -1.1 __- Subtotal 4.8 5.5 FINANCIAL SERVICES Finaxis -0.8 -0.2 Bank Delen 13.1 13.8 Bank J.Van Breda & C° 9.2 8.5 BDM - ASCO -0.2 0.8 Subtotal 21.3 22.9 PRIVATE EQUITY Sofinim 0.0 7.4 Contributions 16.7 19.8 participations of Sofinim Contributions 0.7 1.8 participations of GIB Subtotal 17.4 29.0 Other participations (Sipef, 6.8 3.1 Henschel)
Result of the participations 87.6 +1.0% 86.7 Capital gains Private 5.4 0.0 Equity
Result participations (incl. capital 93.0 +7.2% 86.7 gains Private Equity) AvH and subholdings 7.3 13.2 GIB 0.0 22.5 Other 'non-recurrent' results 0.3 0.2 CONSOLIDATED NET RESULT 100.6 122.6
Key figures 30.06.2008 31.12.2007 Consolidated balance (million euros) (million sheet AvH euros) IFRS IFRS Net Equity (part of 1,565.8 1,580.1 the group) Net cash position of 207.6 363.6 AvH and subholdings
Key figures per share 30.06.2008 30.06.2007 Number of shares 33,496,904 33,496,904 Net result per share (*) - basic 3.03 3.69 - diluted 3.02 3.68
(*) based on the shares issued, adjusted for treasury shares in portfolio
Comments relating to the most important group companies
CONTRACTING, DREDGING AND CONCESSIONS Driven by a persistent boom in the dredging sector, DEME's fleet was constantly nearly fully utilised. This has resulted in a substantial increase in turnover (+32% to 721.4 million euros compared with 547.1 million euros for 1H07) and in EBITDA or operational cash flow (+34% to 159.9 million euros compared with 119.3 million euros for 1H07). The net result rose by 57% to 64.3 million euros (compared with 40.9 million euros for 1H07). Both traditional dredging activities and the diversifications contributed to the increase in these results. As at 30.06.08, the order book increased to 1,946 million euros (compared with 1,811 million euros as at 31.12.07), thanks to major new contracts in, among others, Russia, Brazil, the Netherlands, Nigeria, Australia, Panama and Ras Al Khaimah. Taking into account the recently awarded contracts for Port Rashid and London Gateway, the order book should amount to 2,500 million euros. With the inauguration and launching of the Breydel (9,000 m³) the first phase of DEME's investment programme for 2005-2008 (seven vessels, including one mega cutter and five hoppers for 460 million euros) was completed. Early 2008, DEME announced a new investment programme of approximately 500 million euros as a result of which some 10 dredgers (including 2 cutters, 2 hoppers, 1 fall pipe and 1 sand & grind dredger) and other specialized material (including 1 jumbo jack-up) should be built between now and 2011. DEME is also expecting to be able to realise significant growth in both turnover and result throughout all of 2008 in line with the market growth.
RENT-A-PORT remains focused on harbour consulting and concession projects. Of its result as at 30.06.08, 6 million euros is attributable to the capital gain from the sale of a partcipation.
ALGEMENE AANNEMINGEN VAN LAERE achieved a turnover of 69 million euros and a net result of 1.3 million euros in the first half year of 2008. All subsidiaries contributed positively to this result. The order book remained stable thanks to new contracts in, e.g., Brussels and Machelen.
REAL ESTATE AND RELATED SERVICES The result of EXTENSA as at 30.06.08 was slightly negative (-0.6 million euros), and resulted from the recurrent rental income and the capital gain on the sale of land in Wondelgem and was negatively affected by a loss of 2.3 million euros on the sale of a land position in Evere and costs relating to the start-up of own development projects in Turkey, Slovakia and Romania. Extensa's contribution should develop positively in the second half year, due to further sales in the land development portfolio (e.g., in Wondelgem and Hasselt) and the completion of a second shopping centre in Romania.
The real estate investment trust LEASINVEST REAL ESTATE experienced a strong first half of 2008 (20.6 million euros compared with 17.9 million euros as at 30.06.07) a.o. thanks to the increase in fair value in an amount of 14.4 million euros following the renovation and extension of the CFM building in Luxembourg. The fair value of the real estate portfolio as at 30.06.08 amounts to 486.8 million euros (441.1 million euros as at 31.12.07). An occupancy rate of 97.1% and a rental yield of 7.2% illustrate the quality of this portfolio. New acquisitions were carried out in the sector of retail and logistics with the acquisition of distribution sites in Wommelgem (28,000 m²) and Meer (5,000 m² + 8,000 m²) and a site still to be constructed called 'Canal Logistics' (50,000 m²) in Neder-over-Heembeek near Brussels. A real estate lease agreement was also concluded with Cegelec for a new building (3,500 m² of offices + 1,000 m² of warehouses) at Zwijndrecht, Antwerp.
COBELGUARD witnessed a strong semester with a growth in both turnover (+30% to 22.7 million euros) and net result (+61% to 1.3 million euros) thanks to a successful commercial strategy which resulted in some major new clients.
FINANCIERE DUVAL's contribution is negative, due entirely to the seasonal character of its tourism activities (from November to April). The real estate development activities (CFA) and services (a.o., Residalya) are evolving as planned. Given the many new investment projects, AvH has agreed to accelerate the exercise of the warrants which enabled it to increase its participation from 20.8% to 30% in June 2008. This represented an investment of 12.5 million euros.
FINANCIAL SERVICES Both Bank Delen and Bank J.Van Breda & C° were able to hold out well despite the extremely volatile financial markets and the unrest in the financial sector.
Partly under the influence of volatile, declining stock markets, BANK DELEN's net profit decreased slightly with 6.8% to 17.1 million euros (compared with 18.4 million euros as at 30.06.07). The assets under management of Bank Delen amounted to 11,293 million euros as at 30.06.08 (compared with 12,126 million euros as at 31.12.07). Taking into account the downturn in the stock markets (BEL20: -23%, Eurostoxx50: -24%), this figure implies an important growth in assets both for new clients and additional deposits by existing clients, completely in line with the strong growth in recent years. The integration of Bank Delen and Capfi is progressing as expected, both internally and with regard to the clientele. The cost/income ratio has remained at a competitive 45.7% despite the many acquisitions made in recent years.
Thanks to its strong commercial performance BANK J.VAN BREDA & C° increased its net profit by 6% to 11.9 million euros (compared with 11.3 million euros as at 30.06.07). Interest revenue was more or less stable, although the rise in market interest rates had a direct impact on interest payments on the short-term deposits. The volume of the loan portfolio further increased to 1,817 million euros (+4% compared with 31.12.07: 1,755 million euros, +17% compared with 30.06.07: 1,553 million euros). Fee revenue was up by 7% partly thanks to the growth of off balance sheet investments to 2,853 million euros (+2% compared with 31.12.07: 2,801 million euros, + 6% compared with 30.06.07: 2,688 million euros) in the area of both insurance investments and asset management, which is a remarkable performance. The total assets deposited by clients increased to 4,826 million euros (+3% compared with 31.12.07: 4,700 million euros, +9% compared with 30.06.07: 4,443 million euros). The write offs due to credit losses were very limited (0.8 million euros or 0.04% of the average loan portfolio). The cost/income ratio remained stable at about 59% despite a rise in costs of 5%.
Considering the fact that both Bank Delen and Bank J.Van Breda & C° traditionally invest their own investment portfolios mainly in government bonds, and that their portfolios therefore do not include "sub-prime" securities, the equity of both banks has not been affected at all by the credit crisis on the financial markets. The shareholders' equity of Bank Delen as at 30.06.08 totalled 263.1 million euros (246.0 million euros as at 31.12.07). The shareholders' equity of Bank J.Van Breda & C° as at 30.06.08 totalled 218.2 million euros (compared with 206.6 million euros as at 31.12.07). Despite a constantly strong commercial performance, the results of both banks will be influenced partly by the evolution of the interest rates and the development on the financial markets.
During the first semester AvH has increased, through a participating interest of 15% in Promofi, its beneficial interest in Finaxis from 75% to 78.75%.
PRIVATE EQUITY The contribution of the Private Equity participations decreased to 17.3 million euros compared with 29.0 million as at 30.06.07. On the one hand, no portfolio capital gains were recorded as at 30.06.08, while at 30.06.07 7.6 million euros in capital gains were realised on the sale of shares in Telenet. On the other hand, the participations gave mixed impressions with good results of Alupa, NMC, Hertel, Oleon, Turbo's Hoet and Manuchar, a result in line with budget at Spano Group, while results were under pressure because of the economic situation and/or seasonal effects at Distriplus and Groupe Flo.
Investments were limited to follow-up investments (11.8 million euros) in, a.o., Hertel and Synvest/Corelio. As a result of the sale by KBC, Sofinim increased its indirect interest in Corelio from 15.9% to 20.2% through an increase of its shareholding in Synvest to 49.9%, which in turn has increased its stake in Corelio from 32.8% to 40.3%. The divestments (11.8 million euros) were limited to the sale of the 10% stake in Arcomet, which resulted in a capital gain of 5.4 million euros (part AvH).
The adjusted net asset value of the Private Equity portfolio, including unrealised capital gains (losses) on the listed shares held by Sofinim and on Groupe Flo amounted to 469.5 million euros as at 30.06.08 (compared with 478.7 million euros as at 31.12.07).
Other participations This division includes the contribution of Sipef and Henschel. Thanks to high production at the plantations in North Sumatra and at the Ivory Coast, Sipef was able to increase the oil palm volume with 12,5%. Furthermore, the continuously strong demand from China and India, together with the increasing petroleum prices, kept the oil palm market price for some time at a historic high level (>USD 1,200/ton). This resulted in almost a doubling of both the operating profit and the net group profit which amounted to 40.3 million USD (30.06.07:21.6 million USD). Henschel was included in the half-yearly figures for the first time and is evolving in line with last year.
AvH & subholdings The contribution from "AvH and subholdings" as at 30.06.08 remained limited to 7.3 million euros (13.2 million euros as at 30.06.07) and did not contain significant capital gains.
Consolidated balance AvH The net cash position of AvH amounted to 207.6 million euros as at 30.06.08 (compared with 363.6 million euros as at 31.12.07), which can primarily be explained by the decrease in the market value of the investment portfolio (-63.3 million euros) and by the net investment activity (mainly Sagar Cements, Koffie F. Rombouts, Promofi, Financière Duval amounting to 74.2 million euros).
This net cash position takes into account, on the one hand, the investment portfolio (a.o., Fortis, KBC) of AvH, which at 30.06.08 was worth 162 million euros (as at 31.12.07: 225.9 million euros), and on the other hand liquidities, treasury shares and external financial debt in the form of commercial paper of 43.3 million euros.
The consolidated shareholders' equity (part group, IFRS) as at 30.06.08 amounted to 1,565.8 million euros (compared with 1,580 million euros as at 31.12.07).
New investments AvH (1H08) AvH made its first steps into the construction materials market in India. Further to several acquisitions, it accumulated a participating interest of 14.3% in the listed, family owned group Sagar Cements Ltd. Sagar Cements has a clincker production capacity of 0.6 MTPA in the southern state of Andra Pradesh. Encouraged by the growth perspectives in the market, the company recently started to expand its capacity to 2.6 MTPA. The start up of the additional capacity is taking place in the course of the summer. Sagar Cements has a market capitalisation of approximately 69 million euros (4.7 billion Rs.).
In the course of the first quarter, an opportunity arose to acquire a 20% minority interest in Koffie F. Rombouts NV. With a turnover of 122.0 million euros in 2007 (net equity as per 31.12.07: 24.8 million euros), Koffie F. Rombouts, being a quality label, is one of the market leaders in Belgium, with a strong presence in France.
Prospects 2008 AvH expects to be able to realise a decent group result over the entire financial year 2008 thanks to the strong climate in the dredging sector, the good commercial performance of its banks and the rather conservative financial structure of most of the Private Equity participations. However, the weakening of the economic environment urges to be somewhat cautious.
Calendar 2008-2009 17 November 2008 interim report Q3 2008 6 March 2009 annual results 2008 18 May 2009 interim report Q1 2009 25 May 2009 annual shareholders'meeting 27 August 2009 half year results 2009 16 November 2009 interim report Q3 2009
Declaration by the Auditor We have compared the accounting data presented in the semi-annual press release of Ackermans & van Haaren with the interim condensed consolidated financial statements as per June 30th, 2008, which show a balance sheet total of € 4,976,311(000) and net income (group share) for the period of € 100,554(000). We confirm that these accounting data do not show any significant discrepancies with the interim condensed consolidated financial statements.
We have issued a limited review report on these interim condensed consolidated financial statements, in which we declare that, based on our review, nothing has come to our attention that causes us to believe that these interim condensed consolidated financial statements are not prepared, in all material aspects, in accordance with IAS 34 Interim Financial Reporting, as adopted for application in the European Union.
Antwerp, August 27th, 2008
Ernst & Young Bedrijfsrevisoren BCV represented by Patrick Rottiers Christel Weymeersch Partner Partner
Ackermans & van Haaren is a diversified group active in 4 key sectors: contracting, dredging and concessions (DEME, one of the largest dredging companies in the world - Algemene Aannemingen Van Laere, a leading contractor in Belgium), Real Estate and related services (Leasinvest Real Estate, a listed real-estate investment trust with real estate assets of approximately 450 million euros - Extensa, an important land and real estate developer focused on Belgium, Luxemburg and Central Europe), private banking (Bank Delen, one of the largest independent private asset managers in Belgium - Bank J.Van Breda & C°, niche bank for entrepreneurs and liberal professions) and private equity (Sofinim, one of the largest private equity providers in Belgium, and GIB). The group concentrates on a limited number of strategic participations with an important potential for growth. Market capitalisation of AvH is approximately 2.2 billion euros. The AvH share has been included in the reference index BEL20, the Private Equity NXT index of Euronext Brussels and as of 23 June in the European DJ Stoxx index 600.
Website All press releases issued by AvH and its most important group companies as well as the 'Investor Presentation' can also be consulted on the AvH website: www.avh.be. Anyone who is interested to receive the press releases via email has to register to this website, under the 'News' section.
For further information please contact: Luc Bertrand CEO - President of the Executive Committee tel: +32.3.231.87.70 e-mail : dirsec@avh.be
Jan Suykens Member of the Executive Committee tel: +32.3.897.92.36 e-mail : dirsec@avh.be
Tom Bamelis Member of the Executive Committee tel: +32.3.897.92.42 e-mail : dirsec@avh.be
Anexe: The semestrial financial report will be available on the AvH website as at 30 June 2008.
