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Ackermans & van Haaren NV
Earnings Release • Aug 31, 2023
3903_ir_2023-08-31_43e67d1c-1d51-4682-89be-121a5727bebb.pdf
Earnings Release
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Regulated information within the meaning of the Royal Decree of November 14, 2007.
Ackermans & van Haaren realised a net profit of 170.7 million euros over the first half of 2023 and is well on track to deliver another strong set of results for the whole year of 2023
- In spite of a more challenging economic environment, the contribution of the core segments of 149.6 million euros is down only 4% from H1 2022.
- Delen Private Bank and Bank Van Breda have further reinforced their leading market position and posted stellar performances.
- As expected, capital gains contributed less than in the record year 2022. The capital gain on the exit of Telemond in H1 2023 illustrates the potential of AvH's diversified portfolio.
- AvH's net financial position grew further to 511 million euros at June 30, 2023.
John-Eric Bertrand co-CEO
Piet Dejonghe co-CEO
The diversification of our portfolio has once again proven its relevance in an environment which remains challenging, with a result of our core segments very close to our strong H1 2022 results.
Our banks reported a strong performance on the back of continued increases in assets entrusted by our customers and the positive effects of the improved interest environment, compensating somewhat the negative effects of the more challenging market context on other participations. Our focus on installation of offshore wind farms and investments in offshore wind capacity through DEME and Green Offshore, have also contributed to our group's overall resilience in a period of high energy prices.
We are proud of our selection as one of the 20 companies forming the new BEL ESG Index, launched by Euronext in January. It constitutes a recognition of our group's efforts to position itself as 'partners for sustainable growth' with respect for people and for the environment. The sale of our 50% participation in Telemond in February, following a successful collaboration of more than 30 years with the German family Maas, is another example of AvH's strategy to support family businesses as a long-term partner.
The recently announced investments in IQIP and Camlin Fine Sciences (CFS) also fit with our ambition to be 'part of the solution' in these turbulent markets and to put the ~520 million euros cash of the recent divestments to work in market leaders with sustainable business models. IQIP is a specialist in foundation techniques for offshore wind turbines and as such contributes to the energy transition. CFS for its part plays a significant role, as one of the world's important producers of vanillin and shelf-life solutions, in addressing the global challenge of feeding more than 8 billion people in a cost-efficient way whilst minimising food wastage. We look forward to building out these companies, together with our current portfolio companies, successfully over the longer term with their family shareholders and management teams.
Breakdown of the consolidated net result (part of the group)
| (€ million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| Marine Engineering & Contracting |
32.8 | 30.8 | 28.0 |
| Private Banking | 94.8 | 83.8 | 81.3 |
| Real Estate | 10.7 | 21.4 | 25.1 |
| Energy & Resources | 11.4 | 20.3 | 14.7 |
| Contribution from core segments |
149.6 | 156.3 | 149.1 |
| Growth Capital | 6.9 | 39.5 | 25.2 |
| AvH & subholdings | -11.0 | -14.6 | -7.8 |
| Net capital gains(losses) | 25.3 | 97.2 | -0.9 |
| Consolidated net result | 170.7 | 278.4 | 165.7 |
In a generally more challenging macroeconomic environment in H1 2023, AvH's diversified portfolio showed resilience. The contribution from core segments is down only 4% against H1 2022. Excellent performances of 'Private Banking' and of AvH's investments in the production of renewable energy in Belgium (included in the Marine Engineering & Contracting segment) compensated most of the lower results from Nextensa (Real Estate) and SIPEF (Energy & Resources).
Most consolidated participations of AvH's Growth Capital portfolio realised decent results. These consolidated participations contributed 12.5 million euros net profit to AvH in H1 2023. As a result of the disinvestment of the 50% participation in Telemond early 2023, this figure obviously no longer included a contribution from Telemond (H1 2022: 4.8 million euros). In the absence of significant new market references for unlisted assets and with the share price of listed companies down compared to year end 2022, a negative fair value correction of 5.7 million euros was recorded in H1 2023 on the Life Sciences and South-East Asia investments, whereas in H1 2022 this resulted in a positive amount of 20.3 million euros.
Capital gains contributed nicely to the H1 2023 result, but nevertheless came in lower than in the record first half year of 2022.
General comments on the figures
Shareholders' equity of AvH (group share) increased from 4,633.6 million euros at year-end 2022 to 4,752.0 million euros, which, after correction for the 464,985 treasury shares in portfolio as of June 30, 2023, corresponds to 143.86 euros per share. Including the 3.10 euros gross dividend per share that AvH paid in May 2023, that resulted in a 5.0% increase of the shareholders' equity per share over six months.
At the end of June 2023, AvH had a positive net cash position of 510.9 million euros, compared to 498.7 million euros at the end of 2022. Besides cash and short-term deposits, this net cash position consists of short-term investments amounting to 42.9 million euros and treasury shares.
Ackermans & van Haaren invested 49.7 million euros in the further expansion of its portfolio in H1 2023. This amount includes the increase of its stake in listed group companies Nextensa (9.4 million euros; +2.12%) and SIPEF (4.9 million euros; +0.78%), the acquisition of 50% of the newly constituted GreenStor (1.6 million euros) and a total amount of 5.9 million euros in follow-up investments in several Growth Capital investments. The remainder of the investments concerns shareholder loans and unconsolidated financial assets.
Divestments generated cash for a total amount of 65.6 million euros, of which the sale of Telemond (55.0 million euros) and the repayment by Deep C Holding of shareholder loans for an amount of 9.7 million euros were the main components.
Treasury shares
As part of the share buyback programme announced in October 2022 (for up to 70.0 million euros), 162,518 shares were acquired for a total sum of 23.5 million euros since the start of the programme until June 30, 2023. The board of directors decided to extend the duration of this buyback programme until year-end 2023. 80,000 of these shares have in the meanwhile been allocated to cover the stock option plan obligations.
AvH owned 369,100 treasury shares as of June 30, 2023 to hedge stock option plan obligations and a further 82,518 treasury shares of which the board of directors will decide the allocation at a later stage.
In pursuance of the liquidity agreement with Kepler Cheuvreux, 105,892 treasury shares were purchased and 96,031 were sold in H1 2023, resulting in a position of 13,367 treasury shares at the end of June 2023.
On balance, the total number of treasury shares was 464,985 (1.39% of the shares issued) at the end of June 2023 (391,239 at year-end 2022).
Outlook 2023
The board of directors remains confident that the participations of Ackermans & van Haaren are well positioned to realise another set of solid results for the full year 2023. The board reconfirms its earlier guidance that the results for the whole year 2023 are expected to be in line with these of 2022, after correction for capital gains.
Key figures - consolidated balance sheet
| (€ million) | 30.06.2023 | 31.12.2022 | 31.12.2021 |
|---|---|---|---|
| Net equity (part of the group - before allocation of profit) |
4,752.0 | 4,633.6 | 3,957.2 |
| Net cash position | 510.9 | 498.7 | 77.7 |
Key figures per share
| 30.06.2023 | 30.06.2022 | 30.06.2021 | |
|---|---|---|---|
| Number of shares | |||
| Number of shares | 33,496,904 | 33,496,904 | 33,496,904 |
| Key figures per share (€) | |||
| Net result | |||
| Basic | 5.16 | 8.40 | 5.00 |
| Diluted | 5.16 | 8.39 | 4.99 |
| Net equity(1) | 143.86 | 126.99 | 110.82 |
| Evolution of the share price (€) | |||
| Highest (January 4, 2023) |
165.5 | 178.2 | 142.9 |
| Lowest (March 24, 2023) |
146.8 | 140.9 | 126.1 |
| Closing price (June 30) |
150.8 | 142.5 | 142.4 |
(1) After correction for treasury shares
Events after balance sheet date
AvH, through its wholly owned subsidiary AvH Growth Capital NV, entered into an agreement with HAL Investments to acquire 40% of IQIP Holding B.V. ('IQIP') for c. 100 million euros. Simultaneously, MerweOord B.V will acquire 20% of IQIP. MerweOord has the option to increase its shareholding to 33.33% in the course of 2024, which upon exercise would result in a shareholding with HAL, AvH and MerweOord each owning 1/3 of IQIPs shares. This transaction is subject to various closing conditions, including regulatory approvals. IQIP, AvH, HAL and MerweOord will work together to obtain all necessary merger clearances. It is expected that completion of the transaction will occur early 2024.
IQIP, headquartered in Sliedrecht in the Netherlands, designs and assembles hydraulic hammers and other (sets of) piling, handling, lifting and subsea guiding equipment that are leased or sold globally across three core markets: Offshore Wind, Coastal & Civil and Oil & Gas. In addition, the company has growth ambitions in related (innovative) offshore markets such as decommissioning of oil & gas platforms. In the challenging year 2022, the company realized a turnover of 102 million euros (159 million euros in 2021) and an operating cash flow (EBITDA) of 30 million euros (56 million euros in 2021).
In April 2023, AvH announced its participation in an open offer on Camlin Fine Sciences, a specialty chemicals company headquartered in Mumbai, India and listed on the BSE. Camlin's key products include vanillin (the taste and aroma behind the vanilla flavour), shelf life solutions (antioxidants used in food preservation) and performance chemicals (specialty chemicals used in specific industrial applications). Camlin closed its fiscal year ended March 2023 with a consolidated revenue of 17 billion INR and 768 employees.
This open offer is undertaken in accordance with applicable SEBI (Securities and Exchange Board of India) regulations and has started on August 18, 2023. The offer concerns 26% of the shares of Camlin Fine Sciences at a price of 160 INR per share, implying a total offer size of roughly 79 million euros, of which AvH is committing up to 53 million euros. Although AvH has announced this intended transaction already in April 2023, it will only materialise in Q3 2023.
Sustainability (ESG)
Environment, Social, Governance
Ackermans & van Haaren positions itself as the long-term partner of choice helping to build high-performing market leaders that also contribute to a more sustainable world. AvH aims to systematically incorporate ESG factors both at group level and its participations in their respective business models.
ESG activities at AvH in H1 2023
AvH was proudly included in the BEL ESG Index launched by Euronext in February 2023, recognising its efforts to use sustainable business models.
Thanks to its structured approach focusing on relevant ESG topics, AvH was able to further improve its Sustainalytics' 'negligible' ESG risk rating from 9.0 to 7.9. Within the segment of multisector holdings, Sustainalytics ranked AvH in the 5th percentile on the date of rating. ISS awarded the 'Prime' label to AvH, comparable to the 'Industry Top Rated' label already given by Sustainalytics. As reflected by this external recognition, AvH continues its engagement to embed ESG in its strategic thinking, whereby it leverages the many new legislative initiatives such as the Corporate Sustainability Reporting Directive (CSRD).
AvH is well on track to achieve its 2023 action plan in terms of strategic focus on ESG policies, ecological footprint, talent development, wellbeing and integrity. Efforts continue to support participations in defining their ESG materiality matrices, and discussing the CO2 -footprint evolution. Furthermore, AvH and its participations are assessing the impact of upcoming legislation such as CSRD, EU Taxonomy and the EU Emission Trading System. Setting up processes to capture the right data will remain an important task in the coming years, requiring sector and company specific approaches.
Sustainability is systematically integrated in AvH's investment policy and part of the due diligence performed for new investments. This allows AvH to contribute to socially and ecologically relevant themes. For example, becoming co-promoter in Camlin Fine Sciences, an important producer of vanillin and antioxidants (which prevent food from
decaying), addresses the global challenge of feeding in a cost-effective manner whilst minimizing food wastage. IQIP, in which an investment was recently announced, is a specialist in foundation techniques for offshore wind, a growing and important sector which is key for a lower CO2 footprint and a more energy independent Europe.
Selection of ESG activities at participations in H1 2023
DEME continued to contribute to the energy transition by realising offshore wind farm projects in Europe (France, The Netherlands, Denmark, the UK), Asia (Zhong Neng) and US (Vineyard Wind). Green Jade, Viking Neptun and Yellowstone were added to its modern, innovative fleet and are equipped with the latest technology to ensure fuel efficient and more sustainable operations.
CFE is integrating sustainable construction methods in projects such as Wooden, Wood Hub and ZIN. Wooden has a bearing structure entirely made of wood. Wood Hub has a mixed bearing structure in wood and concrete. Wood Hub and ZIN are heated 'fossil free' and include 'smart building' energy management based on Vmanager technology.
Nextensa created a new energy community in Brussels enabling the sharing of locally generated electricity produced by photovoltaic panels on the roofs of the Gare Maritime with the adjacent residential area Park Lane.
SIPEF defined its carbon footprint target to reduce 28% of its emissions intensity by 2030 (compared to the 2021 baseline).
Sagar Cements developed its ESG roadmap with targets for 2030 and 2050 covering relevant topics such as CO2 , energy, environment, water, health and safety, and corporate governance. Sagar aims to become net zero by 2050. Whilst the acquisition of Andhra Cement concluded during H1 2023 will increase Sagar's absolute CO2 emissions, the company will be included in Sagar's ESG roadmap to reduce its CO2 intensity.
Biotalys achieved significant progress in its manufacturing capabilities for its first protein-based biocontrol Evoca. This achievement further strengthens the prospects of a successful path to market for the company's pipeline of safe, sustainable biocontrol products.
Van Moer Logistics obtained the concession for the expansion of its container terminal in the Port of Brussels, supporting the transition to sustainable transport modes.
Ackermans & van Haaren
Marine Engineering & Contracting
Contribution to the AvH consolidated net result
| (€ million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| DEME Group | 17.5 | 23.2 | 20.5 |
| CFE | 5.3 | 5.4 | 7.6 |
| DEEP C Holding(1) | 1.3 | 0.9 | -1.6 |
| Green Offshore | 8.6 | 1.3 | 1.5 |
| Total | 32.8 | 30.8 | 28.0 |
(1) Formerly Rent-A-Port
DEME Group
DEME Group ('DEME', AvH 62.12%) achieved in the first half of 2023 a solid growth of the order backlog, turnover and EBITDA, despite having several large-scale projects in the Offshore Energy segment that were still in start-up phase.
The order backlog reached a new record level of 7,654 million euros, a 24% increase compared to 6,190 million euros at year-end 2022. This increase reflects a continued healthy demand and strong market
positioning across all segments. Noteworthy additions were the design and the construction of the Princess Elisabeth island in Belgium, works in the Middle East, and offshore wind projects in France and the US.
DEME's turnover grew 14% to 1,475 million euros (H1 2022: 1,292 million euros), thanks to significant growth in Offshore Energy (+40%) and Environmental (+58%) and despite a slight decrease in Dredging & Infra (-4%) compared to a strong H1 2022.
Over the first 6 months of 2023, DEME achieved an EBITDA of 222 million euros with an EBITDA margin of 15.0%. (H1 2022: 191 million euros, 14.8%). The first-half EBITDA margin in Offshore Energy stood at 12%, lower than the previous year. The prior year had benefitted from a significant liquidated damage payment, while this year's margin was impacted by project start-ups and supply chain-related delays for certain clients. Dredging & Infra reported a higher EBITDA margin compared to the previous year, partially aided by project phasing and the settlement of variation orders on a number of projects, while the Environmental segment reported a record EBITDA margin of over 22%, helped by the impact of a sizeable settlement related to a completed project.
DEME's EBIT amounted to 57 million euros, an increase of 43% compared to H1 2022 (40 million euros). Depreciation and impairments were 165 million euros, compared to 151 million euros a year ago. The increase in depreciation charges is mainly due to the investments in 'Orion', DEME's offshore installation vessel which was added to the fleet in June 2022, and in 'Viking Neptun', a cable laying vessel, added to the fleet at the start of 2023.
The net profit for H1 2023 decreased to 30 million euros, compared to 39 million euros in H1 2022, mainly as a result of negative exchange rate effects.
DEME continued to invest in its future, mainly in the expansion of its Offshore Energy fleet, with a capital expenditure of 216 million euros in H1 2023. The net financial debt amounted to 715 million euros
DEME
| (€ million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| Turnover | 1,475.4 | 1,291.7 | 1,063.0 |
| EBITDA | 221.9 | 191.3 | 187.2 |
| Net result | 30.2 | 39.5 | 35.0 |
| Equity | 1,805.6 | 1,639.9 | 1,494.5 |
| Net financial position | -715.2 | -573.7 | -564.0 |
DEME I Viking Neptun
compared to 521 million euros at year-end 2022. This increase is mainly driven by the sustained high level of investments and cyclical effects on working capital and cash generation.
In July, DEME divested its offshore service operation vessel 'Groenewind' to Cyan Renewables. This transaction aligns with DEME's focus on catalysing offshore wind initiatives and serving as pioneering enabler for operations rather than performing routine service and maintenance activities. The gain on disposal related to the sale (12 million euros) is not included in the H1 2023 results.
The turnover of Offshore Energy increased by 40% to 657.8 million euros, fueled by a healthy backlog. The EBITDA amounted to 79.1 million euros, or a margin of 12.0%, taking into account the losses recorded on two projects in the US and in Taiwan. The strong EBITDA in H1 2022 (100.3 million euros) included the settlement of liquidated damages for the delayed delivery of 'Orion'.
The Offshore Energy segment was active on different projects, such as Vesterhav (Denmark), Hollandse Kust (Netherlands), Fécamp wind farm (France), Dogger Bank wind farm (UK) and the Hinkley Point project (UK). Operational activities were started as planned with the initial installation of monopile foundations for the Vineyard Wind project, the first commercially scaled offshore wind farm in the US. The new installation vessel 'Orion' performed well, accomplishing 'first steel in the water for the US'. However pending the resolution regarding DEME's claims and variation orders with the client regarding supply chain and operational issues, DEME has recorded a loss for the project. Additionally a one-time project loss has been reported related to the Zhong Neng project in Taiwan, because alternative execution methods had to be devised during the project's initiation.
Early 2023, DEME added a second large cable installation vessel, 'Viking Neptun' to its fleet. The new installation vessel, 'Green Jade' was inaugurated at the end of the first semester and will be deployed over summer for the installation of jacket foundations for the Zhong Neng project in Taiwan. The vessel occupancy of the Offshore Energy fleet was lower (17.1 weeks), mainly due to technical adjustments to the vessels in preparation for project execution in the US and upgrade works across the fleet.
Over the last 12 months, the Offshore Energy order backlog increased almost 50% to 3,892 million euros, with the addition of several new multi-year contract awards. Noteworthy project wins include the Ile d'Yeu and Noirmoutier offshore wind farm and the Dieppe Le Tréport offshore wind farm, both in France. The segment also officially announced the award to transport and install inter-array cables for the Empire Wind 1 and 2 offshore wind farm, its fourth contract in the US.
Dredging & Infra reported a turnover of 716 millions euros, 4% lower compared to a strong H1 2022. The EBITDA increased to 102.1 million euros, or a margin of 14.3%, due to favourable project phasing and settlement of variation orders, partly offset by a relatively high level of planned maintenance on the fleet.
Works were executed on terminals in Colombo (Sri Lanka), Gdansk (Poland) and Stade (Germany), on a port expansion in Italy, on capital dredging projects in Mexico and Egypt, on a project in Nigeria as well as on maintenance contracts across Europe. DEME Group also continued on large infra flagship projects in Europe including the first phase of the Fehmarnbelt Fixed Link project (Denmark), Port-La Nouvelle (France), the Blankenburg project and the New Lock Terneuzen (Netherlands), and the Oosterweel Link project (Belgium).
Vessel occupancy for Dredging & Infra reflected a stable utilisation for the hoppers and a softer occupancy for the cutters compared to previous years. In light of the projects at hand, the vessel occupancy is projected to strengthen during the second half of the year, particularly for the cutter suction fleet.
DEME: Breakdown by segment
| Turnover | EBITDA | |||||
|---|---|---|---|---|---|---|
| (€ million) | 1H23 | 1H22 | 1H21 | 1H23 | 1H22 | 1H21 |
| Offshore Energy | 657.8 | 471.5 | 352.4 | 79.1 | 100.3 | 45.9 |
| Dredging & Infra | 716.2 | 746.5 | 668.3 | 102.1 | 94.6 | 158.8 |
| Environmental | 143.3 | 90.7 | 75.8 | 32.5 | 12.2 | 6.2 |
| Concessions | 2.6 | 0.2 | 0.7 | -6.8 | -6.9 | -18.5 |
| Reconciliation | -44.5 | -17.2 | -34.2 | 15.0 | -8.9 | -5.2 |
| Total | 1,475.4 | 1,291.7 | 1,063.0 | 221.9 | 191.3 | 187.2 |
The order backlog of Dredging & Infra increased 27% over the last 12 months to 3,436 million euros. DEME won, as part of a consortium, a project to design and construct the Princess Elisabeth island. This artificial energy island will be the first offshore energy hub in Europe's future energy grid in the North Sea. In addition, the segment won contracts for the deployment of trailers and cutter capacity in Abu Dhabi and dredging works in Germany and Italy. In anticipation of an uplift of demand, DEME is seeing an increase in tender activity for major opportunities in Europe, Middle East and Africa.
Environmental accelerated its turnover and profit growth generating 143 million euros in turnover and a 22.6% EBITDA margin (EBITDA of 32.5 million euros). The improvement in profitability reflects disciplined project management as well as the impact of a final agreement on a completed project in the Netherlands.
The growth was fueled by projects deploying DEME treatment centres and on-site treatment solutions in Belgium (Blue Gate in Antwerp, Cokeries du Brabant), the Netherlands (GoWa en Ijburg), France (Condé Pommeroeul), the UK and Norway.
The order backlog of Environmental increased 5% to 326 million euros, mainly driven by project wins in Belgium.
In the first half of 2023, the net result from associates in Concessions delivered 18.3 million euros, a notable increase from 3.2 million euros in H1 2022, mainly driven by more production (stronger wind) and part of the increase of electricity prices and impacted by the new legislation in Belgium.
The long-term green hydrogen initiative achieved a significant milestone with DEME signing a Project Development Agreement with the government in Oman for the HYPORT Duqm project.
DEME's subsidiary Global Sea Mineral Resources (GSR) announced a strategic cooperation with Transocean Ltd. whereby Transocean has invested a non-controlling interest in GSR consisting of the contribution of an ultra-deepwater drilling vessel that will be converted and cash. The ISA (International Seabed Authority) council has not yet reached a decision about a regulatory framework for future seabed harvesting operations and has indicated that it is now aiming for the adoption of such framework by the 30th session of the International Seabed Authority in 2025.
Stijn Gaytant, since 2013 Head of Finance for DEME's activities in the Asia Pacific region, will succeed Els Verbraecken as Chief Financial Officer in spring 2024. Through his more than 20 years of successful DEME experience, Stijn has acquired profound levels of business understanding through a variety of expert and leadership functions, across multiple projects, activity lines and regions.
Outlook: Building on the first half results, DEME reiterates its outlook for the year with management expecting revenues to be higher than in 2022 and the EBITDA margin to be comparable to 2022. CAPEX for the year is anticipated to be around 425 million euros.
CFE (excl. DEEP C Holding, Green Offshore)
CFE (AvH 62.12%) realised a 9.5% increase of its turnover for the first 6 months of 2023 to 641.7 million euros (H1 2022: 586.2 million euros), mainly driven by the Construction & Renovation segment. The operating result decreased 18.5% to 17.2 million euros (operating margin of 2.7%), with a strong increase at Real Estate Development and Investments and a decline at Construction & Renovation and Multitechnics. The net result amounted to 12.5 million euros (H1 2022: 13.5 million euros).
The order book amounted to 1,437 million euros, a 16.2% decrease compared to year-end 2022 (1,715 million euros). The current unfavourable market conditions, characterised by a significant increase in interest rates and high inflation, result in a postponement of the start of projects and calls for tender by some of CFE's customers, in particular property developers.
In Real Estate & Development, the total real estate portfolio increased to 220 million euros, an increase of 8.4% compared to 203 million euros at year-end 2022. BPI did not acquire any new projects in the first half of the year. The pace of sales is slower for projects launched after the summer of 2022. This trend confirms the difficult market conditions, as a result of increasing interest rates and construction costs.
BPI reached an agreement with Ethias for the sale of the Wood Hub building (the future headquarters of CFE in Auderghem), which is planned for Q4 2023. In Luxembourg, BPI will acquire, in partnership with KPMG Luxembourg, the Kronos site, the historical headquarters of BGL BNP Paribas. The acquisition is scheduled for December 2023 and will be realised by JFK Real Estate, in which BPI indirectly holds a 57.45% stake. BPI will inject 64 million euros into the project.
Net result increased significantly to 6.7 million euros (H1 2022: 3.7 million euros), mainly driven by the residential programmes in Luxembourg and Belgium launched before spring 2022 and the capital gain on the sale of the Jaracza project in Poland.
Multitechnics realised a total turnover of 171.2 million euros, of which 122.0 millions euros at VMA and 49.2 million euros at MOBIX. VMA realised a 9.9% increase thanks to the ZIN project in Brussels, the Grand Hôpital de Charleroi and VMA Maintenance. The turnover of MOBIX continued its negative trend (-20.3%) as a result of the significant budget decrease of Infrabel for track laying and catenary works. The net result amounted to -2.4 million euros, due to an important
CFE
| 1H23 | 1H22 | 1H21 |
|---|---|---|
| 641.7 | 586.2 | 566.9 |
| 20.0 | 27.8 | 19.4 |
| 12.5 | 13.5 | 9.7 |
| 235.5 | 196.9 | 133.8 |
| -90.5 | -58.9 | -113.0 |
(1) Excluding joint ventures
CFE: Breakdown by segment
| Turnover | Net result(1) | |||||
|---|---|---|---|---|---|---|
| (€ million) | 1H23 | 1H22 | 1H21 | 1H23 | 1H22 | 1H21 |
| Real Estate Development | 73.1 | 31.1 | 52.9 | 6.7 | 3.7 | 8.5 |
| Multitechnics | 171.2 | 172.2 | 165.2 | -2.4 | 1.9 | 5.0 |
| Construction & Renovation | 455.1 | 397.4 | 358.9 | -0.2 | 3.5 | -1.5 |
| Investments & Holding (incl. eliminations) | -57.7 | -14.5 | -10.1 | 8.4 | 4.4 | -2.3 |
| Total | 641.7 | 586.2 | 566.9 | 12.5 | 13.5 | 9.7 |
(1) Including contribution from DEEP C Holding and Green Offshore
loss on the ZIN project, the low activity level at MOBIX and a negative operational margin for the Luwa project.
The order book (284.7 million euros) decreased by 22.8% as a result of a moderate number of order intakes at VMA due to the difficult market conditions and the lower number of tenders launched by Infrabel.
Construction & Renovation reported a 14.5% increase of its turnover to 455.1 million euros, mainly driven by the high activity level in Brussels where ZIN is the most important project. Operational difficulties on a project in Wallonia (Shape) combined with the bankruptcy of a customer and subcontractors had an impact on the result of the Belgium division. On the other hand, the Polish and Luxembourg subsidiaries increased their positive contribution. The net result amounted to -0.2 million euros.
Due to the difficult market conditions, the order book (1,103 million euros) decreased significantly in Belgium and remained at a relatively low level in Luxembourg. The situation is however improving in Poland, where the first signs of recovery are visible.
In Investments & Holding, CFE has a 50% stake in Green Offshore and in DEEP C Holding. Explanations on these can be found in the following paragraphs. Together with the 50% stake which AvH holds directly, this explains AvH's economic shareholding percentage of 81.06% in Green Offshore and in DEEP C Holding.
CFE's net financial debt amounted to 90.5 million euros, in line with end of March 2023 (end 2022: 48.9 million euros).
Outlook: The real estate sector in Belgium and Luxembourg is impacted by the combined increase in interest rates and construction costs. Added to these macro-economic factors is the weakness in the short term of MOBIX's rail activities. These elements will have a negative impact on CFE's results in the second half of 2023 and very probably also in 2024. However, net profit for the full year should nevertheless reach a satisfactory level taking into account the current market conditions.
DEEP C Holding
Rent-A-Port changed its name to DEEP C Holding (AvH 81.06%) as the development activities in Vietnam are the only remaining material activity of the group after the carve-out of GreenStor.
Sales of industrial land tripled to 45.2 hectares compared to H1 2022 (14.6 hectares). However, as a large proportion of the sales were made on an industrial estate owned equally by IAI and a local partner, sales at the level of IAI increased to just 29.6 hectares. Deep C's good operational performance was partly offset by the negative evolution of the USD exchange rate and higher financial costs. DEEP C Holding realised a net result of 2.6 million euros in H1 2023 (H1 2022: 1.1 million euros).
In April, RG International Limited acquired a 10% stake in DEEP C's subsidiary Infra Asia Investment (IAI) through a capital increase. RG International is controlled by Mr Horst Geicke, a German investor based in Hong Kong. Horst Geicke has built an extensive business network over the last decades with successful ventures in Asia and in Vietnam, in particular. Rent-A-Port and RG International Limited will join forces in further developing the potential of Deep C as a leading industrial park developer in one of the most dynamic regions of Vietnam.
The proceeds of the capital increase will be used to finance strategic projects of IAI in Asia and/or to lower the group's financing ratio. The participation in IAI of DEEP C Holding, which did not take part in the capital increase of 23.8 million USD, has decreased from 94% to 84%. AvH's participation in DEEP C Holding remained unchanged at 50%. Including the indirect participation through CFE, the transitive shareholding percentage stands at 81.06%.
Green Offshore
At Green Offshore (AvH 81.06%), the Belgian offshore wind farms Rentel (309 MW, Green Offshore 12.5%) and SeaMade (487 MW, Green Offshore 8.75%) generated respectively 490 GWh and 822 GWh over the first 6 months of 2023, a 6% increase compared to H1 2022.
Green Offshore realised a significant increase of the net result to 10.6 million euros (H1 2022: 1.5 million euros), driven by this higher production and a positive evolution of electricity prices. The latter were however capped as a result of the implementation by the government of a new price mechanism.
DEME, too, holds stakes in the Belgian offshore wind farms SeaMade, Rentel and C-Power through its wholly-owned subsidiary DEME Concessions. If all these interests are transitively aggregated, AvH accounts for a production capacity of 155 MW renewable energy generated in Belgium.
Private Banking
Contribution to the AvH consolidated net result
| (€ million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| FinAx | 0.3 | 0.0 | 0.0 |
| Delen Private Bank | 65.5 | 61.3 | 60.4 |
| Bank Van Breda | 29.0 | 22.5 | 20.9 |
| Total | 94.8 | 83.8 | 81.3 |
In a context of rising interest rates and high inflation, both Delen Private Bank (AvH 78.75%) and Bank Van Breda (AvH 78.75%) again reported a strong performance with a 13% increase of their combined net profit to 120.0 million euros.
Driven by a continued strong net inflow and a positive market effect, the total client assets of Delen Private Bank and Bank Van Breda increased to 62.4 billion euros at June 30, 2023, compared to 60.5 billion euros at March 31, 2023 and 57.7 billion euros at December 31, 2022. The net inflow at Delen Private Bank is for 54% coming from new clients, underlining the strong commercial dynamic and confirming that continued investments in staff and marketing are paying off. Delen Private Bank will further increase its commercial footprint with the opening of a new office in Charleroi during H2 2023. The collaboration between the two financial institutions remains excellent, with 12.3 billion euros from clients of Bank Van Breda under management at Delen Private Bank. The weighted average performance of the patrimonial funds of Delen Private Bank reached a healthy 8.2%, slightly higher than the overall market impact.
The consolidated assets under management at Delen Private Bank amounted to 52.0 billion euros (48.0 billion euros at year-end 2022), of which 90% is managed under discretionary mandates. The total assets under management comprise 40.0 billion euros at Delen Private Bank (Belgium, the Netherlands, Luxembourg and Switzerland) and 12.1 billion euros at JM Finn (United Kingdom). Following the approval obtained from the Nederlandsche Bank, the assets of the clients of Groenstate Vermogensbeheer (213 million euros) have been included in the assets under management starting from the second quarter.
At Bank Van Breda, the total client assets increased to 22.6 billion euros at June 30, 2023 (compared to 20.6 billion euros at year-end 2022), and consists of 15.3 billion euros off-balance sheet products and 7.3 billion euros client deposits. This increase is mainly driven by positive market effects, net inflow and a higher increase in deposits. The loan portfolio increased slightly to 6.3 billion euros (6.2 billion euros at year-end 2022) thanks to volume growth in target group banking for entrepreneurs and liberal professionals, and at Van Breda Car Finance.
The combined gross operating income increased by 13% to 361 million euros, of which 77% is fee-related. For the group as a whole, the income on invested assets remains high at 1.05%. The gross operating income of Delen Private Bank (incl. JM Finn) increased by 7.7% to 276 million euros, primarily thanks to a higher fee income despite slightly lower average assets under management over the period and thanks to an increasing net interest margin. At Bank Van Breda, the gross operating income increased by 25% to 119 million euros. The interest result grew by 65% thanks to increasing market interest rates and a continued loan production, while fee income increased by 3%.
Despite increasing personnel costs and continued investments in IT and marketing, the combined cost-income ratio improved to 50.7%, normalised for the spread of the bank levy over the full year (compared to 53.1% at the end of June 2022).
The gross operating result of Delen Private Bank increased by 11.7% to 115.1 million euros. Costs increase mainly due to higher personnel costs. The cost-income ratio of Delen Private Bank remains exceptionally strong at 42.8%, while that of JM Finn was 82.6%.
The gross operating result of Bank Van Breda increased by 37% to 53.0 million euros, including a non-recurring positive impact of 3.3 million euros from the correction of bank levies relating to previous
Total client assets
| (€ million) | 1H23 | 2022 | 2021 |
|---|---|---|---|
| Total client assets | |||
| Delen Private Bank (AuM) |
52,041 | 48,010 | 54,346 |
| of which discretionary | 90% | 89% | 85% |
| Delen Private Bank | 39,968 | 36,419 | 40,340 |
| Delen Private Bank Netherlands (1) |
1,346 | 1,022 | 1,154 |
| JM Finn | 12,073 | 11,591 | 14,006 |
| Bank Van Breda | |||
| Off-balance sheet products |
15,327 | 14,095 | 14,720 |
| Client deposits | 7,264 | 6,553 | 6,368 |
| AuM at Delen(1) | -12,266 | -10,943 | -11,502 |
| Delen and Van Breda combined (100%) |
62,366 | 57,715 | 63,932 |
| Gross inflow AuM | 2,214 | 4,557 | 5,598 |
(1) Already included in AuM Delen Private Bank
years. The cost-income ratio, normalised for the spread of the bank levy, of Bank Van Breda improved materially to 49.4% in H1 2023. The credit risk costs remained very low at 0.4 million euros (or 0.01% of the average loan portfolio).
The combined net profit increased by 13% to 120.0 million euros, of which 77.7 million euros contributed by Delen Private Bank, 5.5 million euros by JM Finn, and 36.8 million euros by Bank Van Breda.
The shareholders' equity increased to 1,857 million euros (compared to 1,749 million euros at year-end 2022). Solvency and liquidity remain exceptionally strong, with a combined CET1 ratio based on the 'Standardised approach' of 24.1% and a leverage ratio of 13.6%, well above the industry average and the legal requirements. Despite this conservative balance sheet, the group achieved an above-average combined ROE of 12.9%.
Discretionary mandates Under custody and advisory
Bank Van Breda: Invested by clients
Off-balance sheet products
Client deposits
Loan portfolio
Delen Private Bank and Bank Van Breda combined (100%)
| (€ million) | 1H23 | 1H22 | 1H21 | |
|---|---|---|---|---|
| Profitability | ||||
| Operating income (gross) |
361 | 321 | 300 | |
| Net profit | 120 | 106 | 103 | |
| Gross fee and commis sion income as % of gross operating income |
77% | 86% | 85% | |
| Gross fee and commission income as % of average AuM |
1.05% | 0.99% | 0.97% | |
| Cost-income ratio | 51% | 53% | 52% | |
| Balance sheet | ||||
| Total equity (incl. minority interests) |
1,857 | 1,740 | 1,642 | |
| Total assets | 10,872 | 10,237 | 9,580 | |
| Customer deposits | 7,264 | 6,598 | 6,124 | |
| Customer loans | 7,100 | 6,766 | 6,125 | |
| Cost of risk(1) | 0.01% | 0.01% | -0.01% | |
| Key ratios | ||||
| Return on equity | 12.9% | 12.0% | 12.9% | |
| CET1 ratio | 24.1% | 22.8% | 23.3% | |
| Leverage ratio | 13.6% | 13.1% | 13.1% | |
| LCR | 289% | 212% | 195% |
(1) Of wich ECL (expected credit loss) 0,02% (2022), -0,05% (2021), 0,07% (2020)
Real Estate
Contribution to the AvH consolidated net result
| (€ million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| Nextensa | 10.7 | 18.6 | - |
| Leasinvest(1) | - | - | 8.8 |
| Extensa Group(1) | - | - | 14.5 |
| Anima | - | 2.8 | 1.8 |
| Total | 10.7 | 21.4 | 25.1 |
(1) Figures as of 2021 included in Nextensa figures
Nextensa
Nextensa (AvH 60.65%) realised a net result of 17.1 million euros in the first half of 2023, compared to 30.8 million euros over the same period in 2022. This decrease is mainly due to the significantly lower revaluation results of financial assets and liabilities (H1 2023: -0.9 million euros, 1H22: 13.7 million euros due to the rising interest rates). The revaluation of the real estate portfolio remained limited to -5.5 million euros. The sale of the Treesquare building (in 2023) generated a gain of 2.1 million euros, but the gain on the sale of the Monnet building (in 2022) had been 3 million euros higher.
The fair value of the real estate portfolio remained stable at 1.3 billion euros. The Treesquare building (Brussels) was sold to the German KGAL Investment Management for 43.7 million euros, representing a yield of 4.23%. The portfolio was expanded with a building located at Avenue Monterey 18 in Luxembourg City, where a redevelopment into
Nextensa
| (€ million) | 1H23 | 1H22 | |
|---|---|---|---|
| Rental income | 35.2 | 33.2 | |
| Result developments | 9.6 | 11.9 | |
| Net result | 17.1 | 30.8 | |
| (€ million) | 1H23 | 2022 | 2021 |
| Equity | 830.9 | 838.8 | 780.0 |
| Real estate portfolio | 1,274.4 | 1,278.7 | 1,407.9 |
| Rental yield | 5.75% | 5.30% | 5.20% |
| Net financial position | -760.3 | -721.5 | -853.3 |
| Debt ratio | 44.09% | 42.56% | 48.56% |
a wooden office building is being prepared. Despite plans to further capitalize the latent capital gains in the portfolio through divestments, also Nextensa is facing the almost complete stagnation of the real estate investment market in Europe. Due to this lack of liquidity in the property markets, the planned divestments take more time than desired.
The operating result of the real estate portfolio amounted to 26.1 million euros (H1 2022: 29.5 million euros). The rental income increased by 1.9 million euros in the first half of 2023 compared to H1 2022, despite the sale of several buildings in 2022. This increase is mainly driven by the signing of new leases for vacant spaces in Belgium and Luxembourg, the rent indexation in Belgium, Luxembourg and Austria, 100% occupancy in Austria and the resumption of events at Tour & Taxis. The average rental yield increased from 5.30% at year-end 2022 to 5.75%.
The operating result of the development projects amounted to 9.6 million euros, compared to 11.9 million euros in H1 2022.
On the Tour & Taxis site in Brussels, part of the margin on the second phase of Park Lane was recognised for the first time. Construction works progressed well, and sales also continue to run smoothly with half of the 346 apartments sold or reserved. At the end of H1 2023, almost 30% of deeds had been passed, which is relevant for the recognition of the margin. The developments at Cloche d'Or made a positive contribution of 8.0 million euros, despite a decline in sales of apartments in Luxembourg. In the office segment, the signing of a lease on the entire White House building (7,000 m²) means that the expected margin on this sub-project is now also gradually being recognised. In the residential segment, sales in the sub-project Ilôt D-Nord contributed positively to the result. The building is now entirely delivered and only 10 out of 194 apartments are still for sale. At the same time, construction work continues on the sub-project Ilôt D5-D10, of which 78 apartments of a total of 185 are now sold or reserved.
Rising interest rates are largely mitigated by the hedging strategy (hedge ratio of 71% on 30/06/2023) while Nextensa continues to implement its strategy to reduce the debt position. Due to the payment of the dividend at the end of May 2023, the net financial debt (H1 2023: 760.3 million euros) and the financial debt ratio (44.09%) are temporarily slightly higher compared to year-end 2022.
Outlook: Nextensa is not immune to the standstill currently characterising the real estate market as a result of the rapid and sharp increases in interest rates. Nextensa is convinced however that its hybrid model, combining a qualitative investment portfolio with the development of sustainable buildings and environments such as Tour & Taxis, will prove to be the right one.
During H1 2023, AvH increased its participation in Nextensa from 58.53% to 60.65%.
Energy & Resources
Contribution to the AvH consolidated net result
| (€ million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| SIPEF | 10.7 | 20.9 | 12.6 |
| Verdant Bioscience | -0.5 | -0.1 | -0.4 |
| Sagar Cements | 1.3 | -0.5 | 2.5 |
| Total | 11.4 | 20.3 | 14.7 |
SIPEF
In a more challenging environment, SIPEF (AvH 37.59%) realised a satisfying performance in the first half of 2023, but could not match the record results of 2022.
The total group production of RSPO compliant, 'segregated' sustainable palm oil was impacted by less favourable agronomical conditions. This resulted in a temporary decrease in palm oil production to 185,321 tonnes (-2.8%), compared to 190,642 tonnes in H1 2022. The decrease occurred mainly in Indonesia, in the mature plantations in North Sumatra and to a lesser extent in Bengkulu. The palm oil production in the young plantations in South Sumatra increased by 77.7%, and already represents almost a quarter of SIPEF's palm oil production in Indonesia.
Palm oil markets continued to remain favourable from a historical perspective and prices hovered around 1,000 USD per tonne for most of the second quarter. The average world market price for crude palm oil (CPO) decreased from 1,617 USD in H1 2022 to 987 USD in H1 2023 per tonne (CIF Rotterdam).
SIPEF I Palm fruit
The turnover for palm oil decreased to 199.6 million USD (H1 2022: 233.3 million USD), mainly as a result of the significant lower selling price (-26.4%). The turnover in the banana segment (expressed in euros, the functional currency) increased by 47.7% mainly due to an increase in the average unit selling price (+17.0%) and a rise in volumes produced (+26.3%). The total turnover amounted to 218.6 million USD (H1 2022: 249.8 million USD).
The net result of 31.2 million USD is satisfactory, but could not match the record figures of H1 2022 (63.9 million USD).
The financial position remained very strong with an equity of 815.3 million USD (group share) and a positive net financial position of 4.4 million USD.
The expansion in South Sumatra continued steadily. Already 17,402 hectares have been cultivated and the replanting of more than 10,000 hectares in Dendymarker plantations is completed. The construction of the second palm oil mill in that area will be finalised by mid-year 2024.
In the area of sustainability, SIPEF achieved 100% Roundtable on Sustainable Palm Oil (RSPO) certification for nearly 3,000 hectares for the smallholders supplying the Group's mill at PT Dendymarker Indah
SIPEF
| (USD million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| Turnover | 218.6 | 249.8 | 182.3 |
| EBIT | 51.3 | 104.6 | 61.8 |
| Net result | 31.2 | 63.9 | 43.5 |
| Equity | 815.3 | 773.3 | 679.0 |
| Net financial position | 4.4 | -15.2 | -120.0 |
SIPEF I Hargy Oil Palms Sagar Cements I Mattampally plant - Telangana
Lestari. SIPEF's headquarters in Belgium obtained banana supply chain certification in accordance with the GlobalG.A.P. Chain of Custody standard and successfully completed audits for supply chain certification under the Rainforest Alliance and Fairtrade standards.
Outlook: In the current market conditions, SIPEF's recurring annual results are expected to remain satisfying, in a range of 60 to 70 million USD. 69% of the budgeted palm oil production has been sold at an average ex-mill gate price of 878 USD per tonne and prospects are positive with modestly increasing annual production volumes and sustained strong palm oil markets. SIPEF is expected to head for a limited net financial debt position at year end 2023, including tax payments on last year's profits and the record dividend paid out. The generated cash flow will support the extensive annual investment program of more than 100 million USD.
During H1 2023, AvH increased its participation in SIPEF from 36.81% to 37.59%.
Sagar Cements
During H1 2023, Sagar Cements (AvH 19.64%) successfully completed the acquisition of Andhra Cement, located in Andhra Pradesh and with a capacity of 2 million ton, thereby further expanding its production capacity to 10.25 million ton. The first commercial deliveries from the plant, which was acquired out of an insolvency process, took place in April.
Sagar's turnover increased by 9% to 131 million euros, driven by the ramping up of recently acquired units and supported by healthy demand from both infrastructure and housing segments. Operational profitability was subdued by price pressure and high energy costs. In the coming months, management expects to benefit from falling fuel prices, further ramping-up of new units and increased geographical diversification.
Sagar posted a positive net result of 6.9 million euros including a capital gain of 16.9 million euros realized on investments.
AvH & Growth Capital
Contribution to the AvH consolidated net result
| (€ million) | 1H23 | 1H22 | 1H21 |
|---|---|---|---|
| Contribution of participations |
6.9 | 39.5 | 25.2 |
| - Contribution consoli- dated participations |
12.5 | 19.2 | 25.2 |
| - Fair value | -5.7 | 20.3 | - |
| AvH & subholdings | -11.0 | -14.6 | -7.8 |
| Capital gains(losses) | 25.3 | 97.2 | -0.9 |
| AvH & Growth Capital |
21.1 | 122.1 | 16.5 |
Consolidated participations
At the beginning of February 2023, after a successful collaboration of more than 30 years, AvH sold its 50% participation in Telemond to the German family Maas, its long-term partner. This is yet another example of AvH's strategy of supporting family businesses as a long-term partner. Telemond has evolved from a small supplier to the automotive industry to a world leader in the production of telescopic cranes for the lifting industry. This sale earned AvH a cash revenue of 55 million euros and a capital gain of 19 million euros.
OMP (AvH 20.0%) has once again been recognized as a Leader in the Gartner Magic Quadrant for Supply Chain Planning Solutions. This marks the eighth consecutive time that OMP has received this recognition. This is also reflected in OMP's continued turnover growth in 2023.
Van Moer Logistics (AvH 21.7%) obtained the extension of its concession for the container terminal in the Port of Brussels for a period of 20 years. Through this concession, the existing container terminal will triple in capacity from 16,700 m2 to 60,000 m2 . In addition to the terminal activities, Van Moer Logistics also envisages an additional
warehouse of 15,000 m² on top of its existing warehousing capacity of 25,000 m². After completion of the works, Van Moer Logistics will have a total logistics zone of 100,000 m² at the Port of Brussels, where the terminal and warehouses are directly connected.
Fair value investments
AstriVax (AvH 5.8%) received a grant of 2.5 million euros from Flanders Innovation & Entrepreneurship (VLAIO) to advance its innovative technology. The grant will be used to accelerate the company's vaccine platform.
Biotalys (AvH 11.8%) and Syngenta entered into a strategic partnership in April to research, develop and commercialise new biocontrol solutions to manage insect pests. This new partnership allows Biotalys to accelerate the development and global commercialisation of innovative crop protection solutions and consolidate its leadership in biocontrol innovation. Biotalys revealed the initial results of its latest field trials which continue to showcase the efficacy of Biotalys' first protein-based biocontrol Evoca™ across various high-value crops. Throughout 2022, Biotalys conducted more than 160 in-depth field trials in partnership with industry leaders to support its product positioning in both the European Union and the United States. In June, Biotalys successfully obtained subscription commitments for an amount of 7 million euros following a private placement of new shares. As a result, the shareholding of AvH slightly decreased to 11.8%.
Mid-April, AvH entered into a cooperation agreement with Ashish Dandekar and funds advised by Convergent Finance LLP to become co-promoters of Camlin Fine Sciences ('CFS'), a Mumbai stock market listed company for specialty chemicals with headquarters in Mumbai, India. CFS serves customers globally, including in markets such as Europe, Asia-Pacific and North and Latin America. Some of the company's key products include vanillin (the taste and aroma behind the 'vanilla' flavor), shelf life solutions (antioxidants used in food preservation) and performance chemicals (specialty chemicals sold for specific industrial applications). The open offer is made on 26% of the shares of CFS at a share price of 160 INR, for a total amount of 79 million euros. AvH is committing up to 53 million euros. The offer will close in the third quarter of 2023. Following the open offer, AvH's shareholding will be function of the number of shares tendered.
MRM Health (AvH 15.9%) reached an important milestone early January with the completion of the recruitment of patients with colitis ulcerosa in the phase IIa trial with MH002, a drug candidate for inflammatory bowel diseases. The company also assured its financing by attracting SFPIM, the Belgian Sovereign Wealth Fund, as a new investor, in combination with additional funding from existing investors. This enables MRM Health to continue its development programme and Camlin Fine Sciences I Vanillin Dahej plant build its clinical and preclinical pipeline.
OncoDNA (AvH 10.4%) announced the closing of a Round C financing of 6.5 million euros, entirely subscribed by its current shareholders. The objective of the financing is to support the company in achieving its strategic plan.
AvH & subholdings
The contribution from 'AvH & subholdings' was positively influenced by interest income on its important cash and deposits balance, but negatively by 'fair value' corrections on its treasury portfolio and non-consolidated financial assets.
Net capital gains/losses
AvH disinvested its 50%-stake in Telemond with a 19.2 million euros capital gain and recorded an extra 6.1 million euros profit (earn out) on the Ogeda-shares it sold in 2017.
Half-yearly financial report according to IAS 34
The half-yearly financial report for the period 01/01/2023-30/06/23, which comprises besides the condensed financial statements, including all information according to IAS 34, also the interim management report, a statement of the responsible persons and information regarding the external audit, is available on the website www.avh.be.
Declaration by the auditor
The auditor has confirmed that his review of the consolidated half-yearly accounts has been substantially completed and that no meaningful corrections have come to its attention that would require an adjustment to the financial information included in this press release.
Antwerp, August 30, 2023
EY Bedrijfsrevisoren BV statutory auditor represented by Christel Weymeersch(1) Partner
(1) Acting on behalf of a BV
Ackermans & van Haaren
Ackermans & van Haaren positions itself as the long-term partner of choice of family businesses and management teams to help build high-performing market leaders and contribute to a more sustainable world.
Ackermans & van Haaren is a diversified group operating in 4 core sectors: Marine Engineering & Contracting (DEME, one of the largest dredging companies in the world - CFE, a construction group with headquarters in Belgium), Private Banking (Delen Private Bank, one of the largest independent private asset managers in Belgium, and asset manager JM Finn in the UK - Bank Van Breda, niche bank for entrepreneurs and the liberal professions in Belgium), Real Estate (Nextensa, a listed integrated real estate group) and Energy & Resources (SIPEF, an agroindustrial group in tropical agriculture). In its Growth Capital segment, AvH also provides growth capital to sustainable companies in different sectors.
At an economic level, the AvH group represented in 2022 a turnover of 5.7 billion euros and employed 21,453 people through its share in the participations. AvH is listed on Euronext Brussels and is included in the BEL20 index, in the BEL ESG index and in the European DJ Stoxx 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.
Contact
For further information please contact:
John-Eric Bertrand co-CEO - co-Chairman executive committee - Tel. +32.3.897.92.08
Piet Dejonghe co-CEO - co-Chairman executive committee - Tel. +32.3.897.92.36
Tom Bamelis CFO - Member executive committee - Tel. +32.3.897.92.35
e-mail: [email protected]
Financial calendar
- November 23, 2023 .............................. Interim statement Q3 2023
- February 29, 2024................................... Annual results 2023
- May 23, 2024 ............................................ Interim statement Q1 2024
- August 30, 2024...................................... Half-year results 2024
| 1. | Consolidated income statement 21 | |
|---|---|---|
| 2. | Consolidated statement of comprehensive income 22 | |
| 3. | Consolidated balance sheet 23 | |
| 3.1. | Consolidated balance sheet – Assets 23 | |
| 3.2. | Consolidated balance sheet – Equity and liabilities 24 | |
| 4. | Consolidated cash flow statement (indirect method) 25 | |
| 5. | Statement of changes in consolidated equity 26 | |
| 6. | Segment information 27 | |
| 6.1. | Segment information – Consolidated income statement 30-06-2023 28 | |
| 6.2. | Segment information – Consolidated income statement 30-06-2022 30 | |
| 6.3. | Segment information – Consolidated balance sheet 30-06-2023 – Assets 31 | |
| 6.4. | Segment information – Consolidated balance sheet 30-06-2023 - Equity and liabilities 32 | |
| 6.5. | Segment information – Consolidated balance sheet 31-12-2022 – Assets 35 | |
| 6.6. | Segment information – Consolidated balance sheet 31-12-2022 - Equity and liabilities 36 | |
| 6.7. | Segment information – Consolidated cash flow statement 30-06-2023 37 | |
| 6.8. | Segment information – Consolidated cash flow statement 30-06-2022 40 | |
| 7. | Notes to the financial statements 41 | |
| 7.1. | Basis for the presentation of the condensed financial statements 41 | |
| 7.2. | Financial assets and liabilities per category 41 | |
| 7.3. | Seasonality or cyclicality of operations 42 | |
| 7.4. | Earnings per share 42 | |
| 7.5. | Treasury shares 43 | |
| 7.6. | Impairments 44 | |
| 7.7. | Contingent liabilities or contingent assets 44 | |
| 8. | Main risks and uncertainties 44 | |
| 9. | Overview of the major related party transactions 44 | |
| 10. | Events after balance sheet date 44 | |
| Auditor's report 45 | ||
1. Consolidated income statement
| (€ 1,000) | 30-06-2023 | 30-06-2022 |
|---|---|---|
| Revenue | 2,427,776 | 2,151,459 |
| Rendering of services | 2 | 18 |
| Real estate revenue | 134,511 | 90,631 |
| Interest income - banking activities | 100,438 | 52,697 |
| Fees and commissions - banking activities | 50,873 | 49,351 |
| Revenue from construction contracts | 2,105,577 | 1,903,652 |
| Other operating revenue | 36,375 | 55,111 |
| Operating expenses (-) | -2,284,142 | -2,054,357 |
| Raw materials, consumables, services and subcontracted work (-) | -1,551,518 | -1,414,284 |
| Interest expenses Bank J.Van Breda & C° (-) | -31,698 | -10,944 |
| Employee expenses (-) | -483,282 | -432,584 |
| Depreciation (-) | -185,172 | -171,888 |
| Impairment losses (-) | -1,595 | 2,826 |
| Other operating expenses (-) | -32,778 | -28,251 |
| Provisions | 1,900 | 769 |
| Profit (loss) on assets/liabilities designated at fair value through profit and loss | -12,462 | 6,657 |
| Financial assets - Fair value through P/L (FVPL) | -7,004 | 9,138 |
| Investment property | -5,457 | -2,481 |
| Profit (loss) on disposal of assets | 23,416 | 108,420 |
| Realised gain (loss) on intangible and tangible assets | 3,358 | 5,697 |
| Realised gain (loss) on investment property | 2,074 | 5,342 |
| Realised gain (loss) on financial fixed assets | 25,276 | 97,347 |
| Realised gain (loss) on other assets | -7,292 | 34 |
| Profit (loss) from operating activities | 154,588 | 212,179 |
| Financial result | -23,223 | 14,092 |
| Interest income | 17,442 | 6,447 |
| Interest expenses (-) | -27,252 | -14,945 |
| (Un)realised foreign currency results | -9,216 | 13,440 |
| Other financial income (expenses) | 358 | -9,360 |
| Derivative financial instruments designated at fair value through profit and loss | -4,555 | 18,510 |
| Share of profit (loss) from equity accounted investments | 112,640 | 121,876 |
| Other non-operating income | 0 | 0 |
| Other non-operating expenses (-) | 0 | 0 |
| Profit (loss) before tax | 244,005 | 348,146 |
| Income taxes | -36,847 | -35,326 |
| Deferred taxes | 19,618 | 1,851 |
| Current taxes | -56,466 | -37,176 |
| Profit (loss) after tax from continuing operations | 207,157 | 312,820 |
| Profit (loss) after tax from discontinued operations | 0 | 3,050 |
| Profit (loss) of the period | 207,157 | 315,871 |
| Minority interests | 36,461 | 37,506 |
| Share of the group | 170,696 | 278,365 |
| Earnings per share (€) | 30-06-2023 | 30-06-2022 |
| 1. Basic earnings per share | ||
|---|---|---|
| 1.1. from continued and discontinued operations | 5.16 | 8.40 |
| 1.2. from continued operations | 5.16 | 8.31 |
| 2. Diluted earnings per share | ||
| 2.1. from continued and discontinued operations | 5.16 | 8.39 |
| 2.2. from continued operations | 5.16 | 8.30 |
.
We refer to Note 6 Segment information for more details on the consolidated result.
2. Consolidated statement of comprehensive income
| (€ 1,000) | 30-06-2023 | 30-06-2022 |
|---|---|---|
| Profit (loss) of the period | 207,157 | 315,871 |
| Minority interests | 36,461 | 37,506 |
| Share of the group | 170,696 | 278,365 |
| Other comprehensive income | 2,633 | 100,403 |
| Items that may be reclassified to profit or loss in subsequent periods | ||
| Net changes in revaluation reserve: bonds - Fair value through OCI (FVOCI) | 9,428 | -27,456 |
| Net changes in revaluation reserve: hedging reserves | -4,405 | 92,839 |
| Net changes in revaluation reserve: translation differences | -2,184 | 35,696 |
| Items that cannot be reclassified to profit or loss in subsequent periods | ||
| Net changes in revaluation reserve: shares - Fair value through OCI (FVOCI) | -105 | 2 |
| Net changes in revaluation reserve: actuarial gains (losses) defined benefit pension plans | -100 | -678 |
| Total comprehensive income | 209,791 | 416,273 |
| Minority interests | 36,320 | 64,860 |
| Share of the group | 173,471 | 351,413 |
For a breakdown of the 'Share of the group' and 'Minority interests' in the results, we refer to Note 6. Segment information.
In accordance with the accounting standard "IFRS 9 Financial Instruments", financial assets are split into three categories on the balance sheet and fluctuations in the fair value of financial assets are reported in the consolidated income statement. The only exception to this rule are the fair value fluctuations in the investment portfolio of Bank Van Breda and Delen Private Bank, which in the table above are divided into shares and bonds. The market value of the bond portfolio of Bank Van Breda is affected by the volatility in the interest rates and by the sale of bonds (in the context of its Asset & Liability Management).
Hedging reserves arise from fluctuations in the fair value of hedging instruments used by group companies to hedge against risks. Several group companies (a.o. DEME, Nextensa and Rentel/SeaMade) have hedged against a possible rise in interest rates. As a result of the evolution of the (expected) market interest rates in H1 2023, the positive market value of the hedging instruments has declined, resulting in unrealised gains on hedging reserves being decreased by 4.4 million euros (including minority interests).
Translation differences arise from fluctuations in the exchange rates of group companies that report in foreign currencies. In H1 2023, the euro increased in value against most relevant currencies, which explains a big part of the negative evolution in translation differences of 2.2 million euros (including minority interests).
With the introduction of the amended IAS 19R accounting standard in 2013, the actuarial gains and losses on certain pension plans are recognized directly in other comprehensive income. The remeasurement of net liabilities relating to defined benefit plans is only done once a year for year-end closing purposes. The change in the actuarial assumptions of inflation rate and discount rate at 30 June 2023 compared to 31 December 2022 is not significant and the impact of the change on the net liabilities relating to defined benefit plans as recorded in the books of 31 December 2022, is considered to be immaterial.
3. Consolidated balance sheet
3.1. Consolidated balance sheet – Assets
| (€ 1,000) | 30-06-2023 | 31-12-2022 | |
|---|---|---|---|
| I. Non-current assets | 12,269,520 | 11,968,509 | |
| Intangible assets | 117,990 | 117,649 | |
| Goodwill | 320,071 | 319,953 | |
| Tangible assets | 2,883,877 | 2,720,708 | |
| Land and buildings | 263,817 | 246,782 | |
| Plant, machinery and equipment | 2,273,378 | 2,183,188 | |
| Furniture and vehicles | 51,307 | 49,296 | |
| Other tangible assets | 9,697 | 9,310 | |
| Assets under construction | 285,679 | 232,132 | |
| Investment property | 1,274,386 | 1,278,716 | |
| Participations accounted for using the equity method | 1,876,546 | 1,845,237 | |
| Non-current financial assets | 430,340 | 398,203 | |
| Financial assets : shares - Fair value through P/L (FVPL) | 218,465 | 208,328 | |
| Receivables and warranties | 211,875 | 189,875 | |
| Non-current hedging instruments | 145,814 | 158,911 | |
| Deferred tax assets | 169,918 | 154,829 | |
| Banks - receivables from credit institutions and clients after one year | 5,050,578 | 4,974,302 | |
| Banks - loans and receivables to clients | 5,050,578 | 4,974,302 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 0 | |
| II. Current assets | 6,278,257 | 5,645,505 | |
| Inventories | 418,459 | 389,711 | |
| Amounts due from customers under construction contracts | 642,800 | 532,289 | |
| Investments | 609,410 | 544,498 | |
| Financial assets : shares - Fair value through P/L (FVPL) | 42,886 | 41,328 | |
| Financial assets : bonds - Fair value through OCI (FVOCI) | 501,577 | 502,908 | |
| Financial assets : shares - Fair value through OCI (FVOCI) | 110 | 263 | |
| Financial assets - at amortised cost | 64,837 | 0 | |
| Current hedging instruments | 23,741 | 24,359 | |
| Amounts receivable within one year | 943,640 | 847,085 | |
| Trade debtors | 761,444 | 719,214 | |
| Other receivables | 182,197 | 127,871 | |
| Current tax receivables | 53,452 | 37,379 | |
| Banks - receivables from credit institutions and clients within one year | 2,425,484 | 1,965,939 | |
| Banks - loans and advances to banks | 116,130 | 110,836 | |
| Banks - loans and receivables to clients | 1,219,902 | 1,214,188 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 0 | |
| Banks - cash balances with central banks | 1,089,452 | 640,916 | |
| Cash and cash equivalents | 1,021,128 | 1,160,972 | |
| Deferred charges, accrued income and other current assets | 140,143 | 143,270 | |
| III. Assets held for sale | 33,628 | 62,504 | |
The breakdown of the consolidated balance sheet by segment is presented in Note 6.3 Segment information. This reveals that the full consolidation of Bank Van Breda (Private Banking segment) has a significant impact on both the balance sheet total and the balance sheet structure of AvH. Bank Van Breda contributes for 8,341.0 million euros to the balance sheet total of 18,581.4 million euros, and although this bank is solidly capitalized with a Common Equity Tier 1 ratio of 16.3%, its balance sheet ratios, as explained by the nature of its activity, are different from those of the other companies in the consolidation scope. To improve the readability of the consolidated balance sheet, certain items from the balance sheet of Bank Van Breda have been summarized in the consolidated balance sheet.
3.2. Consolidated balance sheet – Equity and liabilities
| (€ 1,000) | 30-06-2023 | |||||
|---|---|---|---|---|---|---|
| I. Total equity | 6,167,581 | 6,002,456 | ||||
| Equity - group share | 4,752,014 | 4,633,633 | ||||
| Issued capital | 113,907 | 113,907 | ||||
| Share capital | 2,295 | 2,295 | ||||
| Share premium | 111,612 | 111,612 | ||||
| Consolidated reserves | 4,675,542 | 4,547,922 | ||||
| Revaluation reserves | 15,176 | 12,401 | ||||
| Financial assets : bonds - Fair value through OCI (FVOCI) | -25,539 | -32,964 | ||||
| Financial assets : shares - Fair value through OCI (FVOCI) | 46 | 129 | ||||
| Hedging reserves | 57,065 | 59,938 | ||||
| Actuarial gains (losses) defined benefit pension plans | -23,475 | -23,375 | ||||
| Translation differences | 7,079 | 8,673 | ||||
| Treasury shares (-) | -52,612 | -40,597 | ||||
| Minority interests | 1,415,568 | 1,368,824 | ||||
| II. Non-current liabilities | 2,899,606 | 2,916,141 | ||||
| Provisions | 122,662 | 95,036 | ||||
| Pension liabilities | 76,881 | 76,955 | ||||
| Deferred tax liabilities | 149,831 | 151,635 | ||||
| Financial debts | 1,457,910 | 1,631,833 | ||||
| Bank loans | 1,185,920 | 1,333,174 | ||||
| Bonds | 99,479 | 139,348 | ||||
| Subordinated loans | 677 | 677 | ||||
| Lease debts | 124,705 | 112,180 | ||||
| Other financial debts | 47,128 | 46,453 | ||||
| Non-current hedging instruments | 35,728 | 53,892 | ||||
| Other amounts payable | 38,504 | 41,721 | ||||
| Banks - non-current debts to credit institutions, clients & securities | 1,018,091 | 865,069 | ||||
| Banks - deposits from credit institutions | 0 | 0 | ||||
| Banks - deposits from clients | 898,076 | 736,385 | ||||
| Banks - debt certificates including bonds | 40,000 | 40,003 | ||||
| Banks - changes in fair value of the hedged credit portfolio | 80,015 | 88,681 | ||||
| III. Current liabilities | 9,514,219 | 8,757,920 | ||||
| Provisions | 19,810 | 35,232 | ||||
| Pension liabilities | 183 | 248 | ||||
| Financial debts | 633,141 | 402,656 | ||||
| Bank loans | 405,850 | 280,710 | ||||
| Bonds | 40,652 | 0 | ||||
| Subordinated loans | 0 | 0 | ||||
| Lease debts | 41,158 | 39,778 | ||||
| Other financial debts | 145,481 | 82,168 | ||||
| Current hedging instruments | 31,634 | 31,893 | ||||
| Amounts due to customers under construction contracts | 533,170 | 526,349 | ||||
| Other amounts payable within one year | 1,558,894 | 1,529,778 | ||||
| Trade payables | 1,165,660 | 1,136,241 | ||||
| Advances received | 95,378 | 72,539 | ||||
| Amounts payable regarding remuneration and social security | 183,054 | 210,608 | ||||
| Other amounts payable | 114,802 | 110,391 | ||||
| Current tax payables | 90,335 | 98,131 | ||||
| Banks - current debts to credit institutions, clients & securities | 6,573,922 | 6,059,308 | ||||
| Banks - deposits from credit institutions | 100,524 | 116,379 | ||||
| Banks - deposits from clients | 6,366,411 | 5,817,110 | ||||
| Banks - debt certificates including bonds | 105,963 | 124,766 | ||||
| Banks - changes in fair value of the hedged credit portfolio | 1,025 | 1,052 | ||||
| Accrued charges and deferred income | 73,130 | 74,326 | ||||
| IV. Liabilities held for sale | 0 | 0 | ||||
| Total equity and liabilities | 18,581,406 | 17,676,517 |
4. Consolidated cash flow statement (indirect method)
| (€ 1,000) | 30-06-2022 | |
|---|---|---|
| I. Cash and cash equivalents - opening balance | 1,160,972 | 883,730 |
| Profit (loss) from operating activities | 154,588 | 212,179 |
| Reclassification 'Profit (loss) on disposal of assets' to cash flow from divestments | -23,416 | -106,811 |
| Dividends from participations accounted for using the equity method | 94,261 | 115,062 |
| Other non-operating income (expenses) | 0 | 0 |
| Income taxes (paid) | -70,059 | -49,721 |
| Non-cash adjustments | ||
| Depreciation | 185,172 | 171,888 |
| Impairment losses | 1,605 | -2,812 |
| Share based payment | -647 | -5,469 |
| Profit (loss) on assets/liabilities designated at fair value through profit and loss | 12,462 | -6,657 |
| (Decrease) increase of provisions | -1,969 | -912 |
| Other non-cash expenses (income) | 2,895 | -3,999 |
| Cash flow | 354,891 | 322,749 |
| Decrease (increase) of working capital | -120,213 | 6,386 |
| Decrease (increase) of inventories and construction contracts | 15,028 | -28,425 |
| Decrease (increase) of amounts receivable | -243,038 | -221,346 |
| Decrease (increase) of receivables from credit institutions and clients (banks) | -533,564 | 274,169 |
| Increase (decrease) of liabilities (other than financial debts) | -12,400 | 157,020 |
| Increase (decrease) of debts to credit institutions, clients & securities (banks) | 657,642 | -179,665 |
| Decrease (increase) other | -3,881 | 4,633 |
| Cash flow from operating activities | 234,677 | 329,135 |
| Investments | -542,400 | -450,447 |
| Acquisition of intangible and tangible assets | -233,666 | -241,793 |
| Acquisition of investment property | -42,596 | -16,312 |
| Acquisition of financial fixed assets (business combinations included) | -25,594 | -22,383 |
| Cash acquired through business combinations | 0 | 4,433 |
| New loans granted | -25,344 | -12,493 |
| Acquisition of investments | -215,199 | -161,900 |
| Divestments | 277,848 | 344,607 |
| Disposal of intangible and tangible assets | 10,514 | 5,916 |
| Disposal of investment property | 43,532 | 63,242 |
| Disposal of financial fixed assets (business disposals included) | 61,162 | 159,587 |
| Cash disposed of through business disposals | 0 | 26 |
| Reimbursements of loans | 4,611 | 21,491 |
| Disposal of investments | 158,029 | 94,344 |
| Cash flow from investing activities | -264,552 | -105,841 |
| Financial operations | ||
| Dividends received | 2,521 | 2,145 |
| Interest received | 17,441 | 6,447 |
| Interest paid | -28,328 | -15,912 |
| Other financial income (costs) | -9,268 | 539 |
| Decrease (increase) of treasury shares - AvH | -11,818 | -5,748 |
| Decrease (increase) of treasury shares - affiliates | 0 | -3,974 |
| Increase of financial debts | 247,260 | 578,813 |
| (Decrease) of financial debts | -226,626 | -392,935 |
| (Investments) and divestments in controlling interests | 23,068 | -6,240 |
| Dividends paid by AvH | -102,511 | -91,085 |
| Dividends paid to minority interests | -20,107 | -15,737 |
| Cash flow from financial activities | -108,367 | 56,311 |
| II. Net increase (decrease) in cash and cash equivalents | -138,243 | 279,606 |
| Impact of exchange rate changes on cash and cash equivalents | -1,601 | 2,210 |
| III. Cash and cash equivalents - ending balance | ||
| 1,021,128 | 1,165,546 |
5. Statement of changes in consolidated equity
| (€ 1,000) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Issued capital & share premium |
Consolidated reserves | through OCI (FVOCI) Bonds -Fair value |
through OCI (FVOCI) Shares -Fair value |
Hedging reserves | defined benefit pension Actuarial gains (losses) plans |
Translation differences | Treasury shares | Equity - group share | Minority interests | Total equity | |
| Opening balance, 1 January 2022 | 113,907 | 3,943,016 | 1,620 | 126 | -31,050 | -24,458 | -12,682 | -33,251 | 3,957,229 | 1,277,774 | 5,235,003 |
| Profit | 278,365 | 278,365 | 37,506 | 315,871 | |||||||
| Unrealised results | -21,622 | 1 | 60,562 | -599 | 34,705 | 73,048 | 27,355 | 100,403 | |||
| Total of realised and unrealised results |
0 | 278,365 | -21,622 | 1 | 60,562 | -599 | 34,705 | 0 | 351,413 | 64,860 | 416,273 |
| Distribution of dividends | -91,085 | -91,085 | -15,737 | -106,822 | |||||||
| Operations with treasury shares | -5,289 | -5,289 | -5,289 | ||||||||
| Other (a.o. changes in consol. scope / beneficial interest %) |
-6,977 | -6,977 | -33,325 | -40,302 | |||||||
| Ending balance, 30 June 2022 | 113,907 | 4,123,320 | -20,001 | 127 | 29,512 | -25,057 | 22,023 | -38,540 | 4,205,291 | 1,293,573 | 5,498,864 |
| (€ 1,000) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Issued capital & share premium |
Consolidated reserves | through OCI (FVOCI) Bonds -Fair value |
through OCI (FVOCI) Shares -Fair value |
Hedging reserves | defined benefit pension Actuarial gains (losses) plans |
Translation differences | Treasury shares | Equity - group share | Minority interests | Total equity | |
| Ending balance, 31 December 2022 |
113,907 | 4,547,922 | -32,964 | 129 | 59,938 | -23,375 | 8,673 | -40,597 | 4,633,634 | 1,368,824 | 6,002,458 |
| Impact IFRS amendments | 0 | 0 | |||||||||
| Opening balance, 1 January 2023 | 113,907 | 4,547,922 | -32,964 | 129 | 59,938 | -23,375 | 8,673 | -40,597 | 4,633,634 | 1,368,824 | 6,002,458 |
| Profit | 170,696 | 170,696 | 36,461 | 207,157 | |||||||
| Unrealised results | 7,425 | -83 | -2,873 | -100 | -1,594 | 2,775 | -142 | 2,633 | |||
| Total of realised and unrealised results |
0 | 170,696 | 7,425 | -83 | -2,873 | -100 | -1,594 | 0 | 173,471 | 36,320 | 209,791 |
| Distribution of dividends | -102,511 | -102,511 | -34,490 | -137,000 | |||||||
| Operations with treasury shares | -12,015 | -12,015 | -12,015 | ||||||||
| Other (a.o. changes in consol. scope / beneficial interest %) |
59,434 | 59,434 | 44,914 | 104,348 | |||||||
| Ending balance, 30 June 2023 | 113,907 | 4,675,542 | -25,539 | 46 | 57,065 | -23,475 | 7,079 | -52,612 | 4,752,014 | 1,415,567 | 6,167,581 |
More details on the unrealised results can be found in Note 2. Consolidated statement of comprehensive income.
After the General Meeting of May, 22nd 2023, AvH paid a dividend of 3.10 euros per share, resulting in a total dividend payment of 102.5 million euros, taking into account that no dividend is paid on the treasury shares that AvH owns at the date of payment.
In October 2022, AvH announced the start of a share buyback programme of up to 70.0 million euros. The programme started on October 5, 2022 and its duration was extended by the Board of Directors until year end 2023. Since the start of this programme, 162,518 treasury shares have been bought, for a total amount of 23.5 million euros. Meanwhile 80,000 of these shares have been allocated to cover stock option plan obligations. As of June 30, 2023, all outstanding option obligations are fully covered by 369,100 treasury shares.
In addition, 105,892 AvH shares were purchased and 96,031 shares were sold in H1 2023 in the context of the contract that AvH entered into with Kepler Cheuvreux in order to support the liquidity of the AvH share. These transactions are initiated entirely autonomously by Kepler Cheuvreux, but as they take place on behalf of AvH, the net purchase of 9,861 AvH shares has an impact on AvH's equity. On June 30, 2023, the number of treasury shares in the portfolio in the context of this liquidity agreement amounts to 13,367.
In total, on June 30, 2023, the total number of treasury shares amounts to 464,985 (1.39% of the shares issued).
The item "Other" in the "Minority interests" column arises, among other aspects, from the changes in the consolidation scope of AvH or its affiliates. Third-party capital increases in Infra Asia Investment (Deep C Holding) and GSR (DEME) resulted in an increase in minority interests, without loss of control. The increase in the controlling interest in Nextensa gave rise to a decrease in minority interests. We refer to Explanatory Note 6. Segment reporting for more details.
The item "Other" in the column "Consolidated reserves" includes a.o. the eliminations of results on sales of treasury shares, the impact of the acquisition or sale of minority interests and the impact of the remeasurement of the purchase obligation on certain shares. The third-party capital increases mentioned above gave rise to results on the dilution at GSR (43 million euros) and at Infra Asia Investments (7 million euros); the acquisition of additional Nextensa shares (8 million euros).
6. Segment information
Segment 1
Marine Engineering & Contracting:
DEME Group (full consolidation 62.12%), CFE (full consolidation 62.12%), Deep C Holding (formerly Rent-A-Port) (full consolidation 81.06%), GreenStor (full consolidation 81.06%) and Green Offshore (full consolidation 81.06%).
Rent-A-Port changed its name in Deep C Holding, confirming its focus on the developments of Deep C in Vietnam. Deep C Holding sold its 38% participation in BStor to a newly created company GreenStor, that is a 50/50 joint venture between AvH and CFE. This transaction had no impact on the economic interests (beneficial%) of AvH in BStor. BStor is the developer and owner of a 75% share of Estor-Lux, Belgian's first large scale battery park connected to the High Voltage Grid.
Segment 2
Private Banking:
Delen Private Bank (equity method 78.75%), Bank Van Breda (full consolidation 78.75%) and FinAx (full consolidation 100%).
Segment 3
Real Estate:
Nextensa (full consolidation 60.65%)
During H1 2023, AvH increased its participation in Nextensa from 58.53% to 60.65%.
Segment 4
Energy & Resources:
SIPEF (equity method 37.59%), Verdant Bioscience (equity method 42%), AvH India Resources (full consolidation 100%) and Sagar Cements (equity method 19.64%).
In H1 2023, AvH increased its participation in SIPEF from 36.81% to 37.59%, without this having an impact on the way in which this participation is reported in the consolidated financial statements.
AvH India Resources holds no other participations than in Sagar Cements.
Segment 5
AvH & Growth Capital:
- AvH, AvH Growth Capital & subholdings (full consolidation 100%)
- Participations fully consolidated: Agidens (85.0%) and Biolectric Group (55.8%)
- Participations accounted for using the equity method: Amsteldijk Beheer (50%), Axe Investments (48.3%), Financière EMG (22.7%), Mediahuis Partners (26.7%), Mediahuis (13.9%), MediaCore (49.9%), OM Partners (20.0%), Turbo's Hoet Groep (50%) and Van Moer Logistics (21.7%)
- Non-consolidated participations:
- Life Science: Astrivax (5.8%), Biotalys (11.8%), Bio Cap Invest (29.5%), Indigo Diabetes (11.9%), MRM Health (15.9%), OncoDNA (10.4%).
- India / South-East Asia: HealthQuad Fund I (36.3%), HealthQuad Fund II (11.0%), Medikabazaar (8.9%), Venturi Partners Fund I (11.1%) and Convergent Finance (3.1%).
Early February 2023, after a successful collaboration of more than 30 years, AvH sold its 50% participation in Telemond to the German family Maas, its long-term partner. This sale earned AvH a cash revenue of 55 million euros and a capital gain of 19.2 million euros.
6.1. Segment information – Consolidated income statement 30-06-2023
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine | Private | Energy & | AvH & | Eliminations | Total | ||
| Engineering & Contracting |
Banking | Real Estate | Resources | Growth Capital |
between segments |
30-06-2023 | |
| Revenue | 2,163,340 | 156,219 | 63,031 | 11 | 46,181 | -1,006 | 2,427,776 |
| Rendering of services | 0 | 0 | 0 | 0 | 964 | -963 | 2 |
| Real estate revenue | 73,059 | 0 | 61,453 | 0 | 0 | 134,511 | |
| Interest income - banking activities | 0 | 100,438 | 0 | 0 | 0 | 100,438 | |
| Fees and commissions - banking activities | 0 | 50,873 | 0 | 0 | 0 | 50,873 | |
| Revenue from construction contracts | 2,062,540 | 0 | 0 | 0 | 43,080 | -43 | 2,105,577 |
| Other operating revenue | 27,740 | 4,908 | 1,578 | 11 | 2,137 | 0 | 36,375 |
| Operating expenses (-) | -2,096,856 | -97,198 | -33,633 | -73 | -57,607 | 1,225 | -2,284,142 |
| Raw materials, consumables, services and subcontracted work (-) | -1,474,888 | -14,775 | -29,917 | -73 | -33,091 | 1,225 | -1,551,518 |
| Interest expenses Bank J.Van Breda & C° (-) | 0 | -31,698 | 0 | 0 | 0 | -31,698 | |
| Employee expenses (-) | -425,458 | -32,697 | -3,005 | 0 | -22,121 | -483,282 | |
| Depreciation (-) | -178,493 | -3,611 | -327 | 0 | -2,741 | -185,172 | |
| Impairment losses (-) | -1,142 | -452 | -1 | 0 | 0 | -1,595 | |
| Other operating expenses (-) | -18,141 | -14,025 | -379 | 0 | -233 | 0 | -32,778 |
| Provisions | 1,266 | 60 | -3 | 0 | 578 | 1,900 | |
| Profit (loss) on assets/liabilities designated at fair value through profit and loss |
0 | 0 | -2,484 | 0 | -9,977 | 0 | -12,462 |
| Financial assets - Fair value through P/L (FVPL) | 0 | 0 | 2,973 | 0 | -9,977 | -7,004 | |
| Investment property | 0 | 0 | -5,457 | 0 | 0 | -5,457 | |
| Profit (loss) on disposal of assets | 3,347 | -7,292 | 2,074 | 0 | 25,287 | 0 | 23,416 |
| Realised gain (loss) on intangible and tangible assets | 3,329 | 0 | 0 | 0 | 29 | 3,358 | |
| Realised gain (loss) on investment property | 0 | 0 | 2,074 | 0 | 0 | 2,074 | |
| Realised gain (loss) on financial fixed assets | 18 | 0 | 0 | 0 | 25,259 | 25,276 | |
| Realised gain (loss) on other assets | 0 | -7,292 | 0 | 0 | 0 | -7,292 | |
| Profit (loss) from operating activities | 69,831 | 51,729 | 28,988 | -61 | 3,884 | 219 | 154,588 |
| Financial result | -15,329 | -374 | -12,612 | 0 | 5,311 | -219 | -23,223 |
| Interest income | 10,162 | 348 | 2,529 | 0 | 5,607 | -1,204 | 17,442 |
| Interest expenses (-) | -17,072 | 0 | -10,893 | 0 | -491 | 1,204 | -27,252 |
| (Un)realised foreign currency results | -8,767 | 0 | 0 | 0 | -449 | -9,216 | |
| Other financial income (expenses) | 349 | 73 | -488 | 0 | 643 | -219 | 358 |
| Derivative financial instruments designated at fair value | |||||||
| through profit and loss | 0 | -795 | -3,760 | 0 | 0 | -4,555 | |
| Share of profit (loss) from equity accounted investments | 17,388 | 65,509 | 5,702 | 11,686 | 12,355 | 112,640 | |
| Other non-operating income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other non-operating expenses (-) | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit (loss) before tax | 71,890 | 116,863 | 22,078 | 11,625 | 21,550 | 0 | 244,005 |
| Income taxes | -16,174 | -15,715 | -4,602 | -31 | -325 | 0 | -36,847 |
| Deferred taxes | 19,056 | 165 | 81 | 0 | 316 | 19,618 | |
| Current taxes | -35,231 | -15,880 | -4,683 | -31 | -641 | -56,466 | |
| Profit (loss) after tax from continuing operations | 55,715 | 101,148 | 17,476 | 11,594 | 21,225 | 0 | 207,157 |
| Profit (loss) after tax from discontinued operations | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit (loss) of the period | 55,715 | 101,148 | 17,476 | 11,594 | 21,225 | 0 | 207,157 |
| Minority interests | 22,958 | 6,373 | 6,823 | 183 | 124 | 36,461 | |
| Share of the group | 32,757 | 94,775 | 10,653 | 11,410 | 21,101 | 170,696 | |
Comments on the consolidated income statement
Compared to H1 2022, AvH's consolidation scope has remained largely unchanged. In H1 2023 AvH did sell its 50% stake in Telemond Holding, but that was an equity accounted participation. And as a result of the disinvestment of Anima (a transaction finalised in H2 2022), the latter had already been transferred to "discontinued" in the 2022 half-yearly financial statements. Therefore the comparison of the income statement of H1 2023 with H1 2022 is not significantly complicated by perimeter changes.
Consolidated revenues increased by 276.3 million euros to 2,427.8 million euros. This 12.8%-increase is primarily explained by the increasing turnover in the Offshore Energy and Environmental segments at DEME Group, by a higher activity level at CFE and by the higher interest income at Bank Van Breda. Other operating revenues decreased by 18.7 million euros to 36.4 million euros. In H1 2022, DEME had received 18.8 million euros as a settlement of liquidated damages caused by the late delivery of the "Orion".
These higher revenues required higher operating expenses, which were up by 11.2% to 2,284.1 million euros. Cost of raw materials, services and subcontracted work increased by roughly 10%, personnel costs by 12% and other operating expenses by 16%. And although the change in the interest environment allowed for a strong increase in the net interest margin at Bank Van Breda, its interest charges almost tripled compared with H1 2022. Depreciation charges also increased, reflecting the continued capital expenditure, especially in the Marine Engineering & Contracting segment. In H1 2023, the operating result has only marginally been impacted by impairment losses (1.6 million euros), including 0.5 million euros (= 1 basis point) of credit losses at Bank Van Breda.
The global impact of fair valuations recorded through P&L resulted in a loss of 12.5 million euros recorded in H1 2023, compared to a profit of 6.7 million euros in H1 2022. This negative fair value adjustment in H1 2023 of 12.5 million euros is the combination of a decrease in value by 7.0 million euros of financial assets and of a 5.5 million euros downwards adjustment of the real estate portfolio of Nextensa. The 7.0 million euros negative fair value adjustment of financial assets in H1 2023 includes both the -5.7 million euros negative evolution of the fair value of the Life Sciences and South-East Asia investments in the Growth Capital portfolio of AvH and the fair value adjustments on other financial assets at Nextensa (shares in Retail Estates) and at AvH & Subholdings.
In H1 2023, the disposal of assets contributed a profit of 23.4 million euros. The sale by AvH of its 50% participation in Telemond in February 2023 resulted in a capital gain of 19.2 million euros and an extra profit (earn out) of 6.1 million euros was recognised on AvH's sale (in 2017) of its participation in Ogeda. Nextensa sold its Treesquare building with a capital gain of 2.1 million euros and DEME divested several smaller equipment leading to a capital gain of 2.9 million euros. Bank Van Breda realised a 7.3 million euros loss on the sale of fixed income assets (bonds) in the context of the execution of its ALM-strategy. In H1 2022 the contribution of capital gains to the H1 result reached 108.4 million euros, mainly driven by the 97.3 million euros profit on the sale of Manuchar.
Financial result globally was 23.2 million euros negative in H1 2023, compared to a positive amount of 14.1 million euros in H1 last year. Despite the overall increase in market interest rates, this only resulted in a minor increase of net interest charges by 1.3 million euros. The negative evolution of the financial result is therefore mainly explained by the 22.6 million euros decrease in foreign currency results (-9.2 million euros loss in H1 2023 compared to +13.4 million euros profit in H1 2022) and of the fair value of hedging instruments. Concerning the latter, the negative evolution of fair value in H1 2023 remained limited to -4.6 million euros, to be compared however with a very significant positive fair value effect in last year's results.
The share of profit from equity accounted participations amounted to 112.6 million euros and represents roughly 2/3rd's of AvH's consolidated net profit in H1 2023. It includes the contribution from key portfolio companies such as Delen Private Bank and SIPEF, but also the contributions from the Belgian offshore wind farms Rentel and SeaMade that are held by DEME and Green Offshore, from Sagar Cements and from AvH Growth Capital participations. The full list of companies included in this category can be found in Note 6. Segment reporting.
Income taxes represented a cost of 36.8 million euros in H1 2023. As in previous years, it should be noted that the contribution from the equity-accounted participations is already reported on a post-tax basis. Income taxes represent therefore approximately 28% of profit before taxes (after exclusion of result contributed by equity consolidated participations). If also tax exempted capital gains are eliminated from the tax basis, the tax rate clearly exceeds 30%.
6.2. Segment information – Consolidated income statement 30-06-2022
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine Engineering |
Private Banking |
Real Estate & Senior Care |
Energy & Resources |
AvH & Growth |
Eliminations between |
Total 30-06-2022 |
|
| Revenue | & Contracting 1,948,005 |
103,274 | 63,711 | 19 | Capital 37,570 |
segments -1,120 |
2,151,459 |
| Rendering of services | 0 | 0 | 0 | 0 | 1,094 | -1,077 | 18 |
| Real estate revenue | 31,134 | 0 | 59,497 | 0 | 0 | 90,631 | |
| Interest income - banking activities | 0 | 52,697 | 0 | 0 | 0 | 52,697 | |
| Fees and commissions - banking activities | 0 | 49,351 | 0 | 0 | 0 | 49,351 | |
| Revenue from construction contracts | 1,868,373 | 0 | 0 | 0 | 35,322 | -43 | 1,903,652 |
| Other operating revenue | 48,498 | 1,227 | 4,214 | 19 | 1,153 | 0 | 55,111 |
| Operating expenses (-) | -1,899,753 | -67,481 | -39,957 | -36 | -48,321 | 1,190 | -2,054,357 |
| Raw materials, consumables, services and subcontracted work (-) | -1,343,820 | -13,106 | -33,494 | -36 | -25,018 | 1,190 | -1,414,284 |
| Interest expenses Bank J.Van Breda & C° (-) | 0 | -10,944 | 0 | 0 | 0 | -10,944 | |
| Employee expenses (-) | -379,588 | -28,224 | -4,021 | 0 | -20,751 | -432,584 | |
| Depreciation (-) | -165,445 | -3,559 | -499 | 0 | -2,385 | -171,888 | |
| Impairment losses (-) | 3,860 | -881 | -175 | 0 | 21 | 2,826 | |
| Other operating expenses (-) | -12,592 | -13,692 | -1,765 | 0 | -203 | 0 | -28,251 |
| Provisions | -2,169 | 2,926 | -3 | 0 | 15 | 769 | |
| Profit (loss) on assets/liabilities designated at fair value through profit and loss |
0 | 0 | -6,941 | 0 | 13,598 | 0 | 6,657 |
| Financial assets - Fair value through P/L (FVPL) | 0 | 0 | -4,459 | 0 | 13,598 | 9,138 | |
| Investment property | 0 | 0 | -2,481 | 0 | 0 | -2,481 | |
| Profit (loss) on disposal of assets | 5,800 | 34 | 5,342 | 0 | 97,244 | 0 | 108,420 |
| Realised gain (loss) on intangible and tangible assets | 5,702 | 0 | 0 | 0 | -5 | 5,697 | |
| Realised gain (loss) on investment property | 0 | 0 | 5,342 | 0 | 0 | 5,342 | |
| Realised gain (loss) on financial fixed assets | 98 | 0 | 0 | 0 | 97,249 | 97,347 | |
| Realised gain (loss) on other assets | 0 | 34 | 0 | 0 | 0 | 34 | |
| Profit (loss) from operating activities | 54,051 | 35,828 | 22,155 | -17 | 100,091 | 70 | 212,179 |
| Financial result | 1,287 | 606 | 10,421 | 0 | 1,847 | -70 | 14,092 |
| Interest income | 4,624 | 7 | 1,558 | 0 | 765 | -508 | 6,447 |
| Interest expenses (-) | -10,100 | 0 | -5,093 | 0 | -259 | 508 | -14,945 |
| (Un)realised foreign currency results | 12,671 | 0 | 0 | 0 | 769 | 13,440 | |
| Other financial income (expenses) | -5,908 | -7 | -3,947 | 0 | 572 | -70 | -9,360 |
| Derivative financial instruments designated at fair value through profit and loss |
0 | 606 | 17,903 | 0 | 0 | 18,510 | |
| Share of profit (loss) from equity accounted investments | 11,081 | 61,266 | 9,074 | 20,590 | 19,864 | 121,876 | |
| Other non-operating income | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other non-operating expenses (-) | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profit (loss) before tax | 66,419 | 97,700 | 41,650 | 20,573 | 121,803 | 0 | 348,146 |
| Income taxes | -15,744 | -9,158 | -10,328 | -50 | -46 | 0 | -35,326 |
| Deferred taxes | 6,774 | 59 | -5,401 | 0 | 418 | 1,851 | |
| Current taxes | -22,518 | -9,218 | -4,927 | -50 | -464 | -37,176 | |
| Profit (loss) after tax from continuing operations | 50,675 | 88,542 | 31,323 | 20,523 | 121,757 | 0 | 312,820 |
| Profit (loss) after tax from discontinued operations | 0 | 0 | 3,050 | 0 | 0 | 3,050 | |
| Profit (loss) of the period | 50,675 | 88,542 | 34,373 | 20,523 | 121,757 | 0 | 315,871 |
| Minority interests | 19,869 | 4,762 | 12,940 | 264 | -330 | 37,506 | |
| Share of the group | 30,806 | 83,780 | 21,433 | 20,260 | 122,087 | 278,365 | |
6.3. Segment information – Consolidated balance sheet 30-06-2023 – Assets
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine Engineering & Contracting |
Private Banking |
Real Estate | Energy & Resources |
AvH & Growth Capital |
Eliminations between segments |
Total 30-06-2023 |
|
| I. Non-current assets | |||||||
| Intangible assets | 3,839,899 114,572 |
6,189,792 307 |
1,467,112 1,009 |
340,846 0 |
456,997 2,102 |
-25,125 | 12,269,520 117,990 |
| Goodwill | 174,098 | 134,247 | 0 | 0 | 11,727 | 320,071 | |
| Tangible assets | 2,795,083 | 53,361 | 7,283 | 0 | 28,149 | 2,883,877 | |
| Land and buildings | 199,425 | 46,001 | 0 | 0 | 18,390 | 263,817 | |
| Plant, machinery and equipment | 2,266,130 | 1,559 | 2,044 | 0 | 3,645 | 2,273,378 | |
| Furniture and vehicles | 40,262 | 5,124 | 638 | 0 | 5,284 | 51,307 | |
| Other tangible assets | 3,834 | 430 | 4,602 | 0 | 831 | 9,697 | |
| Assets under construction | 285,433 | 246 | 0 | 0 | 0 | 285,679 | |
| Investment property | 0 | 0 | 1,274,386 | 0 | 0 | 1,274,386 | |
| Participations accounted for using the equity method | 374,176 | 854,488 | 60,450 | 340,846 | 246,586 | 1,876,546 | |
| Non-current financial assets | 193,232 | 3,176 | 93,005 | 0 | 166,052 | -25,125 | 430,340 |
| Financial assets : shares - Fair value through P/L (FVPL) | 4,647 | 0 | 86,755 | 0 | 127,063 | 218,465 | |
| Receivables and warranties | 188,584 | 3,176 | 6,250 | 0 | 38,989 | -25,125 | 211,875 |
| Non-current hedging instruments | 37,716 | 77,120 | 30,978 | 0 | 0 | 145,814 | |
| Deferred tax assets | 151,022 | 16,515 | 0 | 0 | 2,381 | 169,918 | |
| Banks - receivables from credit institutions and clients after one year |
0 | 5,050,578 | 0 | 0 | 0 | 5,050,578 | |
| Banks - loans and receivables to clients | 0 | 5,050,578 | 0 | 0 | 0 | 5,050,578 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 0 | 0 | 0 | 0 | 0 | |
| II. Current assets | 2,348,849 | 3,218,884 | 273,909 | 637 | 544,643 | -108,664 | 6,278,257 |
| Inventories | 312,753 | 0 | 103,454 | 0 | 2,253 | 418,459 | |
| Amounts due from customers under construction contracts | 558,578 | 0 | 74,593 | 0 | 9,629 | 642,800 | |
| Investments | 2 | 566,524 | 0 | 0 | 42,884 | 609,410 | |
| Financial assets : shares - Fair value through P/L (FVPL) | 2 | 0 | 0 | 0 | 42,884 | 42,886 | |
| Financial assets : bonds - Fair value through OCI (FVOCI) | 0 | 501,577 | 0 | 0 | 0 | 501,577 | |
| Financial assets : shares - Fair value through OCI (FVOCI) | 0 | 110 | 0 | 0 | 0 | 110 | |
| Financial assets - at amortised cost | 0 | 64,837 | 0 | 0 | 0 | 64,837 | |
| Current hedging instruments | 20,253 | 3,488 | 0 | 0 | 0 | 23,741 | |
| Amounts receivable within one year Trade debtors |
814,545 724,707 |
89,103 48 |
71,684 17,444 |
72 0 |
75,184 20,356 |
-106,948 -1,111 |
943,640 761,444 |
| Other receivables | 89,838 | 89,055 | 54,240 | 72 | 54,827 | -105,836 | 182,197 |
| Current tax receivables | 41,861 | 0 | 11,094 | 0 | 497 | 53,452 | |
| Banks - receivables from credit institutions and clients within one year |
0 | 2,425,484 | 0 | 0 | 0 | 2,425,484 | |
| Banks - loans and advances to banks | 0 | 116,130 | 0 | 0 | 0 | 116,130 | |
| Banks - loans and receivables to clients | 0 | 1,219,902 | 0 | 0 | 0 | 1,219,902 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 0 | 0 | 0 | 0 | 0 | |
| Banks - cash balances with central banks | 0 | 1,089,452 | 0 | 0 | 0 | 1,089,452 | |
| Cash and cash equivalents | 480,225 | 119,018 | 10,751 | 565 | 410,568 | 1,021,128 | |
| Deferred charges, accrued income and other current assets | 120,632 | 15,267 | 2,332 | 0 | 3,629 | -1,716 | 140,143 |
| III. Assets held for sale Total assets |
33,628 | 0 | 0 | 0 | 0 | 33,628 |
6.4. Segment information – Consolidated balance sheet 30-06-2023 - Equity and liabilities
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine | Private | Energy & | AvH & | Eliminations | Total | ||
| Engineering & Contracting |
Banking | Real Estate | Resources | Growth Capital |
between segments |
30-06-2023 | |
| I. Total equity | 2,384,688 | 1,746,586 | 833,889 | 341,447 | 860,971 | 6,167,581 | |
| Shareholders' equity - group share | 1,460,374 | 1,601,014 | 496,329 | 341,447 | 852,850 | 4,752,014 | |
| Issued capital | 0 | 0 | 0 | 0 | 113,907 | 113,907 | |
| Share capital | 0 | 0 | 0 | 0 | 2,295 | 2,295 | |
| Share premium | 0 | 0 | 0 | 0 | 111,612 | 111,612 | |
| Consolidated reserves | 1,439,873 | 1,627,218 | 492,097 | 321,946 | 794,408 | 4,675,542 | |
| Revaluation reserves | 20,501 | -26,204 | 4,231 | 19,501 | -2,853 | 15,176 | |
| Financial assets : bonds - Fair value through OCI (FVOCI) | 0 | -25,542 | 0 | 0 | 3 | -25,539 | |
| Financial assets : shares - Fair value through OCI (FVOCI) | 0 | 46 | 0 | 0 | 0 | 46 | |
| Hedging reserves | 52,756 | 0 | 4,062 | 243 | 4 | 57,065 | |
| Actuarial gains (losses) defined benefit pension plans | -22,531 | -3,866 | 0 | -1,682 | 4,604 | -23,475 | |
| Translation differences | -9,724 | 3,158 | 169 | 20,940 | -7,464 | 7,079 | |
| Treasury shares (-) | 0 | 0 | 0 | 0 | -52,612 | -52,612 | |
| Minority interests | 924,314 | 145,572 | 337,560 | 0 | 8,121 | 1,415,568 | |
| II. Non-current liabilities | 1,279,164 | 1,050,489 | 573,955 | 0 | 21,123 | -25,125 | 2,899,606 |
| Provisions | 105,749 | 4,029 | 2,054 | 0 | 10,829 | 122,662 | |
| Pension liabilities | 69,215 | 7,245 | 0 | 0 | 421 | 76,881 | |
| Deferred tax liabilities | 94,365 | 0 | 54,940 | 0 | 526 | 149,831 | |
| Financial debts | 950,787 | 6,036 | 516,961 | 0 | 9,252 | -25,125 | 1,457,910 |
| Bank loans | 766,371 | 0 | 412,722 | 0 | 6,828 | 1,185,920 | |
| Bonds | 0 | 0 | 99,479 | 0 | 0 | 99,479 | |
| Subordinated loans | 677 | 0 | 0 | 0 | 0 | 677 | |
| Lease debts | 114,010 | 6,036 | 2,235 | 0 | 2,424 | 124,705 | |
| Other financial debts | 69,729 | 0 | 2,525 | 0 | 0 | -25,125 | 47,128 |
| Non-current hedging instruments | 35,035 | 693 | 0 | 0 | 0 | 35,728 | |
| Other amounts payable | 24,013 | 14,396 | 0 | 0 | 96 | 38,504 | |
| Banks - debts to credit institutions, clients & securities | 0 | 1,018,091 | 0 | 0 | 0 | 1,018,091 | |
| Banks - deposits from credit institutions | 0 | 0 | 0 | 0 | 0 | 0 | |
| Banks - deposits from clients | 0 | 898,076 | 0 | 0 | 0 | 898,076 | |
| Banks - debt certificates including bonds | 0 | 40,000 | 0 | 0 | 0 | 40,000 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 80,015 | 0 | 0 | 0 | 80,015 | |
| III. Current liabilities | 2,558,523 | 6,611,601 | 333,176 | 37 | 119,546 | -108,664 | 9,514,219 |
| Provisions | 18,261 | 4 | 1,022 | 0 | 523 | 19,810 | |
| Pension liabilities | 0 | 183 | 0 | 0 | 0 | 183 | |
| Financial debts | 373,323 | 2,861 | 254,050 | 0 | 85,153 | -82,248 | 633,141 |
| Bank loans | 244,358 | 0 | 159,918 | 0 | 1,573 | 405,850 | |
| Bonds | 0 | 0 | 40,652 | 0 | 0 | 40,652 | |
| Subordinated loans | 0 | 0 | 0 | 0 | 0 | 0 | |
| Lease debts | 36,643 | 2,861 | 0 | 0 | 1,655 | 41,158 | |
| Other financial debts | 92,323 | 0 | 53,481 | 0 | 81,925 | -82,248 | 145,481 |
| Current hedging instruments | 31,512 | 122 | 0 | 0 | 0 | 31,634 | |
| Amounts due to customers under construction contracts | 521,175 | 0 | 0 | 0 | 11,995 | 533,170 | |
| Other amounts payable within one year | 1,498,540 | 25,620 | 39,814 | 5 | 19,615 | -24,700 | 1,558,894 |
| Trade payables | 1,130,442 | 158 | 24,992 | 5 | 11,175 | -1,111 | 1,165,660 |
| Advances received | 95,378 | 0 | 0 | 0 | 0 | 95,378 | |
| Amounts payable regarding remuneration and social security | 162,156 | 11,647 | 3,860 | 0 | 5,391 | 183,054 | |
| Other amounts payable | 110,565 | 13,815 | 10,962 | 0 | 3,049 | -23,589 | 114,802 |
| Current tax payables | 81,730 | 340 | 7,322 | 32 | 911 | 90,335 | |
| Banks - debts to credit institutions, clients & securities | 0 | 6,573,922 | 0 | 0 | 0 | 6,573,922 | |
| Banks - deposits from credit institutions | 0 | 100,524 | 0 | 0 | 0 | 100,524 | |
| Banks - deposits from clients | 0 | 6,366,411 | 0 | 0 | 0 | 6,366,411 | |
| Banks - debt certificates including bonds | 0 | 105,963 | 0 | 0 | 0 | 105,963 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 1,025 | 0 | 0 | 0 | 1,025 | |
| Accrued charges and deferred income | 33,981 | 8,548 | 30,968 | 0 | 1,349 | -1,716 | 73,130 |
| IV. Liabilities held for sale | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total equity and liabilities | 6,222,375 | 9,408,676 | 1,741,020 | 341,483 | 1,001,641 | -133,789 | 18,581,406 |
Comments on the consolidated balance sheet
The consolidated balance sheet total of AvH has further increased to 18,581.4 million euros (+5%). This increase is primarily explained by the continued growth in the Private Banking Segment with 771.8 million euros (i.e. the balance sheet of Bank Van Breda) and by the Marine Engineering & Contracting segment (+214.5 million euros).
The full consolidation of Bank Van Breda continues to have a considerable impact on both the size and the composition of AvH's consolidated balance sheet. Due to the specificity of its banking activities, Bank Van Breda has a significantly larger balance sheet than the other companies of the AvH group. The full consolidation of Bank Van Breda alone accounts for 8,341 million euros in the balance sheet total. Bank Van Breda has a balance sheet structure that is adapted to its activities. And although Bank Van Breda belongs to the best capitalised financial institutions in Belgium, it clearly has very different balance sheet ratios compared to the other group companies. A number of balance sheet items from Bank Van Breda have been grouped under separate headings to enable an easier understanding of the AvH consolidated balance sheet. As in previous periods, the 78.75% participation of AvH in Delen Private Bank has been accounted for using the equity method.
Intangible assets and Goodwill have remained virtually unchanged compared to year end 2022.
The increase of tangible assets is almost completely situated in the Marine Engineering & Contracting segment. DEME invested 216 million euros during H1 2023, capitalised additionally 29.8 million euros IFRS 16 lease contracts and depreciated 164.7 million euros. Besides capitalised maintenance investments in its large fleet, DEME is amongst others upgrading "Sea Installer" and converting a former bulk carrier into its new fall pipe vessel "Yellowstone". The strategic cooperation between DEME's subsidiary Global Sea Mineral Resources and Transocean resulted in the contribution by the latter of an ultra-deepwater drilling vessel to GSR.
The Investment property portfolio of Nextensa remained almost unchanged at 1,274.4 million euros. This is explained by the additional capital expenditure spent on the portfolio during H1 2023 and by the acquisition of an office building in Luxembourg, compensated by a negative fair value variation of -5.5 million euros and the sale of the Treesquare building in Brussels for an amount of 43.5 million euros, including a capital gain of 2.1 million euros.
Participations accounted for using the equity method comprise the interests in jointly controlled participations or in participations in which no controlling interest is held. These include not only a.o. Delen Private Bank, the offshore wind farm companies Rentel and SeaMade, SIPEF, Sagar Cements and several participations from the Growth Capital portfolio of AvH, but also equity accounted participations held by fully consolidated group companies. The variation during H1 2023 is mainly explained by the positive results of these companies, that have outweighed their dividend distributions.
Non-current financial assets: shares – fair value through P/L amounted to 218.5 million euros on June 30, 2023, which is a 10.1 million euros increase compared with year end 2022. The main contributors to this 218.5 million euros value are i) the shares in Retail Estates held by Nextensa ; ii) the fair value of the life sciences and Asia investments in the Growth Capital portfolio of AvH for a total amount of 108.0 million euros and iii) other non-consolidated investments of 19.0 million euros.
Non-current financial assets: receivables and warranties amounted to 211.9 million euros. The increase of 22.0 million euros compared to year end 2022 is explained by long term receivables held by CFE and DEME, that have gone up with 16.4 million euros during H1 2023 and which typically include long term financings to jointly controlled or non-consolidated companies.
The credit portfolio of Bank Van Breda has grown by 1% to 6,270.5 million euros. The >1 year part of these loans and receivables to clients has increased by 76.3 million euros to 5.050.6 million euros.
Inventories and receivables from customers under construction contracts have both increased with respectively 7% and 21%, of which the biggest part in "Marine Engineering & Contracting" in line with the higher activity levels of the companies operating in this segment.
Investments amounted to 609.4 million euros at June 30, 2023. Next to a small increase in the fair value of the treasury portfolio at AvH, the balance of the 63.3 million euros increase is entirely related to Bank Van Breda, that has invested 64.8 million euros in investments held at amortised cost.
Amounts receivable within one year increased by 96.6 million euros (+11%) of which 'Other receivables' by 54.3 million euros (+42%). The increase in trade receivables is almost entirely situated in the Marine Engineering & Contracting segment and is explained by the evolution of operations. The increase of other receivables in "Private Banking" is for 81.9 million euros explained by a short term intercompany deposit by FinAx.
Banks - receivables <1 year: thanks to the growth of deposits received from clients Bank Van Breda's liquidity position improved further and its short term deposits with central banks have grown to 1.089.5 million euros (+448.5 million euros).
The variations in the Cash position are commented in the Cash Flow Statement (see Note 6.7 Segment reporting – Cash flow statement).
In July 2023, DEME has divested its offshore service operation vessel "Groenewind", of which the book value has already been reclassed to Assets held for sale at December 31, 2022.
The roll forward of Equity is explained in Note 5 Statement of changes in consolidated equity.
Non-current liabilities have decreased by 16.5 million euros compared to year end 2022. This is however the global result from different underlying evolutions of which the main elements are:
- Provisions increased by 27.6 million euros, almost exclusively in the Marine Engineering & Contracting segment. This increase includes 10.1 million euros additional provisions for negative equity of participations accounted for under the equity method at DEME and 3.6 million euros extra at CFE. Other provisions within the consolidated accounts of CFE have increased by 14.4 million euros and correspond with a decrease of current provisions for a similar amount.
- Long term Bank loans and Bonds have decreased by 187.1 million euros : in "Marine Engineering & Contracting" the decrease amounted to 67.9 million euros, only partly compensated by an increase by 10.2 million euros of short term Bank loans. At Nextensa however, the decrease of the LT debt by 118.7 million euros has been more than compensated by an increase of short term Bank Loans and Bonds (based on maturity).
- Long term lease debts increased by 12.5 million euros and include the amounts generated by application of the IFRS 16 accounting method.
- Banks - >1 debts to clients & other banks: the strong commercial activity of Bank Van Breda has resulted in a growth by 153.0 million euros, that is entirely explained by the collection of more LT deposits from clients. This evolution is even stronger on <1 year where the overall debt to clients & credit institutions increased by 514.6 million euros.
Current liabilities have in total increased by 756.3 million euros, to 9.514.2 million euros. This increase is spread over several segments:
• Short term financial debts (Bank loans and Bonds) increased by 165.8 million euros, but have to be considered in combination with the non-current financial debt and of cash and short term deposits.
- At June 30, 2023 DEME, Nextensa and CFE have issued short term commercial paper (included in Other financial debts) for amounts of respectively 90 million euros, 53.5 million euros and 2 million euros (compared to 0 million euros, 73.2 million euros and 9 million euros at year end 2022). The other financial debt <1 year in AvH & Growth Capital entirely relates to a short term deposit within the group that has been eliminated in the consolidation.
- The evolution of trade payables +29.4 million euros (+3%), of advances received +22.8 million euros and of amounts payable regarding remuneration and social security (-27.6 million euros) are all explained by the evolution of the underlying operations.
6.5. Segment information – Consolidated balance sheet 31-12-2022 – Assets
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine | Private | Real Estate & | Energy & | AvH & | Eliminations | Total | |
| Engineering | Banking | Senior Care | Resources | Growth | between | 31-12-2022 | |
| & Contracting | Capital | segments | |||||
| I. Non-current assets | 3,631,135 | 6,119,539 | 1,465,500 | 341,798 | 445,377 | -34,840 | 11,968,509 |
| Intangible assets | 115,515 | 396 | 1,118 | 0 | 620 | 117,649 | |
| Goodwill | 173,980 | 134,247 | 0 | 0 | 11,727 | 319,953 | |
| Tangible assets | 2,632,211 | 53,009 | 6,719 | 0 | 28,769 | 2,720,708 | |
| Land and buildings | 181,802 | 45,625 | 0 | 0 | 19,355 | 246,782 | |
| Plant, machinery and equipment | 2,176,503 | 1,720 | 1,698 | 0 | 3,266 | 2,183,188 | |
| Furniture and vehicles | 38,826 | 5,014 | 730 | 0 | 4,726 | 49,296 | |
| Other tangible assets | 4,116 | 449 | 4,291 | 0 | 454 | 9,310 | |
| Assets under construction | 230,964 | 200 | 0 | 0 | 968 | 232,132 | |
| Investment property | 0 | 0 | 1,278,716 | 0 | 0 | 1,278,716 | |
| Participations accounted for using the equity method | 362,398 | 849,394 | 52,946 | 341,798 | 238,701 | 1,845,237 | |
| Non-current financial assets | 175,440 | 2,579 | 91,692 | 0 | 163,331 | -34,840 | 398,203 |
| Financial assets : shares - Fair value through P/L (FVPL) | 5,036 | 0 | 83,782 | 0 | 119,510 | 208,328 | |
| Receivables and warranties | 170,404 | 2,579 | 7,910 | 0 | 43,821 | -34,840 | 189,875 |
| Non-current hedging instruments | 40,076 | 86,120 | 32,715 | 0 | 0 | 158,911 | |
| Deferred tax assets | 131,515 | 19,492 | 1,592 | 0 | 2,230 | 154,829 | |
| Banks - receivables from credit institutions and clients after one year |
0 | 4,974,302 | 0 | 0 | 0 | 4,974,302 | |
| Banks - loans and receivables to clients | 0 | 4,974,302 | 0 | 0 | 0 | 4,974,302 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 0 | 0 | 0 | 0 | 0 | |
| II. Current assets | 2,344,767 | 2,517,309 | 294,878 | 711 | 490,204 | -2,365 | 5,645,505 |
| Inventories | 290,062 | 0 | 98,257 | 0 | 1,392 | 389,711 | |
| Amounts due from customers under construction contracts | 445,465 | 0 | 83,186 | 0 | 3,638 | 532,289 | |
| Investments | 2 | 503,171 | 0 | 0 | 41,325 | 544,498 | |
| Financial assets : shares - Fair value through P/L (FVPL) | 2 | 0 | 0 | 0 | 41,325 | 41,328 | |
| Financial assets : bonds - Fair value through OCI (FVOCI) | 0 | 502,908 | 0 | 0 | 0 | 502,908 | |
| Financial assets : shares - Fair value through OCI (FVOCI) | 0 | 263 | 0 | 0 | 0 | 263 | |
| Financial assets - at amortised cost | 0 | 0 | 0 | 0 | 0 | 0 | |
| Current hedging instruments | 22,228 | 2,131 | 0 | 0 | 0 | 24,359 | |
| Amounts receivable within one year | 739,242 | 11,279 | 68,220 | 68 | 29,538 | -1,262 | 847,085 |
| Trade debtors | 719,214 | ||||||
| Other receivables | |||||||
| Current tax receivables | 683,217 | 48 | 15,371 | 0 | 21,841 | -1,262 | |
| Banks - receivables from credit | 56,026 | 11,231 | 52,849 | 68 | 7,698 | 0 | 127,871 |
| 25,548 0 |
0 1,965,939 |
11,333 0 |
0 0 |
499 0 |
37,379 1,965,939 |
||
| institutions and clients within one year | |||||||
| Banks - loans and advances to banks | 0 | 110,836 | 0 | 0 | 0 | 110,836 | |
| Banks - loans and receivables to clients | 0 | 1,214,188 | 0 | 0 | 0 | 1,214,188 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 0 | 0 | 0 | 0 | 0 | |
| Banks - cash balances with central banks | 0 | 640,916 | 0 | 0 | 0 | 640,916 | |
| Cash and cash equivalents | 693,990 | 24,515 | 31,106 | 642 | 410,718 | 1,160,972 | |
| Deferred charges, accrued income and other current assets III. Assets held for sale |
128,230 31,997 |
10,274 0 |
2,774 0 |
0 0 |
3,094 30,507 |
-1,103 | 143,270 62,504 |
6.6. Segment information – Consolidated balance sheet 31-12-2022 - Equity and liabilities
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine | Private | Real Estate & | Energy & | AvH & | Eliminations | Total | |
| Engineering & Contracting |
Banking | Senior Care | Resources | Growth Capital |
between segments |
31-12-2022 | |
| I. Total equity | 2,275,511 | 1,639,351 | 841,492 | 342,495 | 903,607 | 6,002,456 | |
| Shareholders' equity - group share | 1,414,303 | 1,497,979 | 482,890 | 342,495 | 895,966 | 4,633,633 | |
| Issued capital | 0 | 0 | 0 | 0 | 113,907 | 113,907 | |
| Share capital | 0 | 0 | 0 | 0 | 2,295 | 2,295 | |
| Share premium | 0 | 0 | 0 | 0 | 111,612 | 111,612 | |
| Consolidated reserves | 1,388,917 | 1,533,242 | 479,175 | 317,111 | 829,477 | 4,547,922 | |
| Revaluation reserves | 25,386 | -35,263 | 3,715 | 25,383 | -6,821 | 12,401 | |
| Financial assets : bonds - Fair value through OCI (FVOCI) | 0 | -32,964 | 0 | 0 | 0 | -32,964 | |
| Financial assets : shares - Fair value through OCI (FVOCI) | 0 | 129 | 0 | 0 | 0 | 129 | |
| Hedging reserves | 56,043 | 0 | 3,549 | 342 | 4 | 59,938 | |
| Actuarial gains (losses) defined benefit pension plans Translation differences |
-22,531 | -3,866 | 0 | -1,571 | 4,593 | -23,375 | |
| Treasury shares (-) | -8,127 | 1,438 | 166 | 26,612 | -11,417 | 8,673 | |
| 0 | 0 | 0 | 0 | -40,597 | -40,597 | ||
| Minority interests | 861,208 | 141,372 | 358,602 | 0 | 7,641 | 1,368,824 | |
| II. Non-current liabilities | 1,337,753 | 896,493 | 693,493 | 0 | 23,242 | -34,840 | 2,916,141 |
| Provisions | 77,330 | 4,471 | 1,822 | 0 | 11,413 | 95,036 | |
| Pension liabilities | 69,049 | 7,485 | 0 | 0 | 421 | 76,955 | |
| Deferred tax liabilities | 94,174 | 0 | 56,716 | 0 | 745 | 151,635 | |
| Financial debts | 1,016,861 | 4,854 | 634,932 | 0 | 10,026 | -34,840 | 1,631,833 |
| Bank loans | 834,277 | 0 | 491,538 | 0 | 7,360 | 1,333,174 | |
| Bonds | 0 | 0 | 139,348 | 0 | 0 | 139,348 | |
| Subordinated loans Lease debts |
677 | 0 | 0 | 0 | 0 | 677 | |
| Other financial debts | 102,413 | 4,854 | 2,247 | 0 | 2,666 | 112,180 | |
| Non-current hedging instruments | 79,494 53,661 |
0 208 |
1,800 23 |
0 0 |
0 0 |
-34,840 | 46,453 53,892 |
| Other amounts payable | 26,678 | 14,405 | 0 | 0 | 638 | 41,721 | |
| Banks - debts to credit institutions, clients & securities | 0 | 865,069 | 0 | 0 | 0 | 865,069 | |
| Banks - deposits from credit institutions | 0 | 0 | 0 | 0 | 0 | 0 | |
| Banks - deposits from clients | 0 | 736,385 | 0 | 0 | 0 | 736,385 | |
| Banks - debt certificates including bonds | 0 | 40,003 | 0 | 0 | 0 | 40,003 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 88,681 | 0 | 0 | 0 | 88,681 | |
| III. Current liabilities | |||||||
| Provisions | 2,394,634 33,536 |
6,101,004 22 |
225,393 1,158 |
14 0 |
39,239 516 |
-2,365 | 8,757,920 35,232 |
| Pension liabilities | 0 | 248 | 0 | 0 | 0 | 248 | |
| Financial debts | 278,640 | 2,613 | 117,668 | 0 | 3,735 | 0 | 402,656 |
| Bank loans | 234,133 | 0 | 44,500 | 0 | 2,078 | 280,710 | |
| Bonds | 0 | 0 | 0 | 0 | 0 | 0 | |
| Subordinated loans | 0 | 0 | 0 | 0 | 0 | 0 | |
| Lease debts | 35,507 | 2,613 | 0 | 0 | 1,658 | 39,778 | |
| Other financial debts | 9,000 | 0 | 73,168 | 0 | 0 | 0 | 82,168 |
| Current hedging instruments | 31,702 | 191 | 0 | 0 | 0 | 31,893 | |
| Amounts due to customers under construction contracts | 516,780 | 0 | 0 | 0 | 9,569 | 526,349 | |
| Other amounts payable within one year | 1,419,762 | 32,313 | 54,951 | 11 | 24,003 | -1,262 | 1,529,778 |
| Trade payables | 1,093,327 | 55 | 34,841 | 11 | 9,269 | -1,262 | 1,136,241 |
| Advances received | 72,539 | 0 | 0 | 0 | 0 | 72,539 | |
| Amounts payable regarding remuneration and social security | 176,460 | 15,824 | 5,540 | 0 | 12,784 | 210,608 | |
| Other amounts payable | 77,437 | 16,434 | 14,570 | 0 | 1,950 | 110,391 | |
| Current tax payables Banks - debts to credit institutions, clients & securities |
82,847 | 0 | 14,771 | 3 | 510 | 98,131 | |
| Banks - deposits from credit institutions | 0 0 |
6,059,308 116,379 |
0 0 |
0 0 |
0 0 |
6,059,308 116,379 |
|
| Banks - deposits from clients | 0 | 5,817,110 | 0 | 0 | 0 | 5,817,110 | |
| Banks - debt certificates including bonds | 0 | 124,766 | 0 | 0 | 0 | 124,766 | |
| Banks - changes in fair value of the hedged credit portfolio | 0 | 1,052 | 0 | 0 | 0 | 1,052 | |
| Accrued charges and deferred income | 31,367 | 6,310 | 36,846 | 0 | 906 | -1,103 | 74,326 |
| IV. Liabilities held for sale | 0 | 0 | 0 | 0 | 0 | 0 | |
| Total equity and liabilities | 6,007,899 | 8,636,848 | 1,760,377 | 342,509 | 966,089 | -37,205 | 17,676,517 |
6.7. Segment information – Consolidated cash flow statement 30-06-2023
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine Engineering & Contracting |
Private Banking |
Real Estate | Energy & Resources |
AvH & Growth Capital |
Eliminations between segments |
Total 30-06-2023 |
|
| I. Cash and cash equivalents - opening balance | 693,990 | 24,515 | 31,106 | 642 | 410,718 | 0 | 1,160,972 |
| Profit (loss) from operating activities | 69,831 | 51,729 | 28,988 | -61 | 3,884 | 219 | 154,588 |
| Reclassification 'Profit (loss) on disposal of assets' to cash flow from divestments |
-3,347 | 7,292 | -2,074 | 0 | -25,287 | -23,416 | |
| Dividends from participations accounted for using the equity method |
16,264 | 63,226 | 0 | 0 | 14,772 | 94,261 | |
| Other non-operating income (expenses) | 0 | 0 | 0 | 0 | 0 | 0 | |
| Income taxes (paid) | -48,824 | -15,880 | -4,683 | -31 | -641 | -70,059 | |
| Non-cash adjustments | |||||||
| Depreciation | 178,493 | 3,611 | 327 | 0 | 2,741 | 185,172 | |
| Impairment losses | 1,142 | 462 | 1 | 0 | 0 | 1,605 | |
| Share based payment | 80 | -1,702 | 0 | 0 | 974 | -647 | |
| Profit (loss) on assets/liabilities designated at fair value through profit and loss |
0 | 0 | 2,484 | 0 | 9,977 | 12,462 | |
| (Decrease) increase of provisions | -1,031 | -364 | 3 | 0 | -578 | -1,969 | |
| Other non-cash expenses (income) | 2,494 | -163 | -95 | 0 | 659 | 2,895 | |
| Cash flow | 215,101 | 108,212 | 24,952 | -92 | 6,500 | 219 | 354,891 |
| Decrease (increase) of working capital | -188,574 | 50,555 | -29,541 | 19 | -34,919 | 82,248 | -120,213 |
| Decrease (increase) of inventories and construction contracts | 16,475 | 0 | 3,514 | 0 | -4,961 | 15,028 | |
| Decrease (increase) of amounts receivable | -221,446 | -77,824 | -147 | -4 | -25,863 | 82,248 | -243,038 |
| Decrease (increase) of receivables from credit institutions and clients (banks) |
0 | -533,564 | 0 | 0 | 0 | -533,564 | |
| Increase (decrease) of liabilities (other than financial debts) | 18,888 | -6,353 | -21,015 | -6 | -3,914 | 0 | -12,400 |
| Increase (decrease) of debts to credit institutions, clients & securities (banks) |
0 | 657,642 | 0 | 0 | 0 | 657,642 | |
| Decrease (increase) other | -2,491 | 10,655 | -11,893 | 29 | -181 | -3,881 | |
| Cash flow from operating activities | 26,526 | 158,767 | -4,589 | -74 | -28,419 | 82,466 | 234,677 |
| Investments | -253,895 | -216,703 | -43,239 | -4,717 | -23,845 | 0 | -542,400 |
| Acquisition of intangible and tangible assets | -229,294 | -907 | -643 | 0 | -2,822 | -233,666 | |
| Acquisition of investment property | 0 | 0 | -42,596 | 0 | 0 | -42,596 | |
| Acquisition of financial fixed assets (business combinations included) | -2,104 | 0 | 0 | -4,717 | -18,773 | -25,594 | |
| Cash acquired through business combinations | 0 | 0 | 0 | 0 | 0 | 0 | |
| New loans granted | -22,497 | -597 | 0 | 0 | -2,250 | 0 | -25,344 |
| Acquisition of investments | 0 | -215,199 | 0 | 0 | 0 | -215,199 | |
| Divestments | 15,139 | 158,029 | 43,532 | 0 | 70,863 | -9,715 | 277,848 |
| Disposal of intangible and tangible assets | 10,470 | 0 | 0 | 0 | 44 | 10,514 | |
| Disposal of investment property | 0 | 0 | 43,532 | 0 | 0 | 43,532 | |
| Disposal of financial fixed assets (business disposals included) | 58 | 0 | 0 | 0 | 61,104 | 61,162 | |
| Cash disposed of through business disposals | 0 | 0 | 0 | 0 | 0 | 0 | |
| Reimbursements of loans | 4,611 | 0 | 0 | 0 | 9,715 | -9,715 | 4,611 |
| Disposal of investments | 0 | 158,029 | 0 | 0 | 0 | 158,029 | |
| Cash flow from investing activities | -238,757 | -58,674 | 292 | -4,717 | 47,018 | -9,715 | -264,552 |
| Financial operations | |||||||
| Dividends received | 0 | 1,524 | 0 | 0 | 997 | 2,521 | |
| Interest received | 10,162 | 347 | 2,529 | 0 | 5,607 | -1,204 | 17,441 |
| Interest paid | -18,088 | -61 | -10,893 | 0 | -491 | 1,204 | -28,328 |
| Other financial income (costs) | -8,121 | 0 | -488 | 0 | -440 | -219 | -9,268 |
| Decrease (increase) of treasury shares - AvH | 0 | 0 | 0 | 0 | -11,818 | -11,818 | |
| Decrease (increase) of treasury shares - affiliates | 0 | 0 | 0 | 0 | 0 | 0 | |
| Increase of financial debts | 162,783 | 0 | 84,800 | 0 | 81,925 | -82,248 | 247,260 |
| (Decrease) of financial debts | -166,369 | -1,599 | -66,297 | 0 | -2,075 | 9,715 | -226,626 |
| (Investments) and divestments in controlling interests | 32,816 | 0 | 0 | 0 | -9,748 | 23,068 | |
| Dividends paid by AvH Dividends paid intra group |
0 -9,440 |
0 0 |
0 -15,220 |
0 0 |
-102,511 24,660 |
-102,511 0 |
|
| Dividends paid to minority interests | -3,679 | -5,801 | -10,488 | 0 | -138 | -20,107 | |
| Cash flow from financial activities | 64 | -5,591 | -16,058 | 0 | -14,031 | -72,751 | -108,367 |
| II. Net increase (decrease) in cash and cash equivalents | -212,167 | 94,503 | -20,355 | -4,791 | 4,568 | 0 | -138,243 |
| Transfer between segments | 0 | 0 | 0 | 4,717 | -4,717 | 0 | |
| Impact of exchange rate changes on cash and cash equivalents | -1,598 | 0 | 0 | -3 | 0 | -1,601 | |
| III. Cash and cash equivalents - ending balance | 480,225 | 119,018 | 10,751 | 565 | 410,568 | 0 | 1,021,128 |
Comments on the consolidated cash flow statement
In H1 2023 AvH realised a consolidated cash flow of 354.9 million euros, an increase with 32.1 million euros (+10%) compared to H1 last year. In absolute numbers, cash flow progressed most in "Marine Engineering & Contracting" (+21.2 million euros), followed by "Private Banking" (+7.4 million euros) and "Real Estate" (+5.6 million euros).
AvH realised a cash flow of 354.9 million euros. This is 32.1 million euros higher than last year, despite a 57.6 million euros lower profit from operating activities. In Note 6.1 Comments on the consolidated income statement, the main components of the operational profit are commented. The main elements that explain this higher cashflow of H1 2023 are:
- The operating profit of H1 2023 includes in total 23.4 million euros of capital gains (a.o. profits on the sale of Telemond, Ogeda and the Treesquare building by Nextensa combined with a loss on disposal of bonds at Bank Van Breda), which is substantially lower than 106.8 million euros of capital gains in H1 2022 (a.o. Manuchar). These capital gains are eliminated from "cash flow" and replaced by their cash impact in "cash flow from investing activities".
- In H1 2023, the consolidated operating profit was impacted by 14.1 million euros of impairment losses and "fair value" adjustments, while this had been a positive effect of 9.5 million euros in H1 2022. Given that these impairments and fair value losses are unrealised and non-cash, they are eliminated from the cash flow.
- Participations accounted for using the equity method distributed 20.8 million euros less dividends to AvH in H1 2023 than previous year. 16.9 million euros of that variance is explained by the lower dividend paid by Delen Private Bank: 63.2 million euros in H1 2023, compared with 80.1 million euros in H1 2022. Delen's 2022 dividend was bigger after a period of dividend bans that had been imposed by the ECB and NBB during the covid-pandemic.
- On a consolidated level, 20.3 million euros more taxes were paid in H1 2023 than in H1 2022.
The higher operating revenues of H1 2023 (+276 million euros) required an increase of working capital of 120.2 million euros. The higher need for working capital was most outspoken in the "Marine Engineering & Contracting" segment (DEME +126.7 million euros; CFE +43.2 million euros and Deep C Holding +19.5 million euros), but also occurred at Nextensa and "AvH & Growth Capital". At Bank Van Breda, the inflow of deposits exceeded the growth of the credit portfolio.
As a result of the higher need in working capital in H1 2023, cash flow from operating activities was reduced to 234.7 million euros in H1 2023.
AvH and its group companies continued investing actively: 542.4 million euros new investments in total, an increase of 92.0 million euros compared to H1 2022. A substantial part of this increase is however explained by the increased acquisition of investments by Bank Van Breda in the context of its ALM-policy. These investments represent a total amount of 215.2 million euros in H1 and are part of the same asset and liability management as the 158.0 million euros disposals of investments in this same period.
Investments in tangible and intangible assets were, as usually, mainly concentrated in the Marine Engineering & Contracting segment, with DEME spending 216.0 million euros mainly on the expansion of its fleet and in particular in the Offshore Energy segment and CFE 12.2 million euros. Nextensa acquired an additional building in Luxembourg, located next to its Monterey-building in view of realising a combined redevelopment project and also continued to invest in its existing investment property and development portfolio. The 25.6 million euros investments in financial fixed assets of H1 2023 were almost totally realised by AvH itself, a.o. by the acquisition of an additional 0.78% stake in SIPEF and by several investments in non-consolidated financial fixed assets. New loans granted mainly correspond with the financing by DEME of jointly controlled entities or of non-consolidated participations (e.g. in DEME's Concession activities). The real estate development activities of CFE are often structured in
specific project companies with partners and these SPV's are typically also financed by loans.
Divestments generated 277.8 million euros in H1 2023 (H1 2022: 344.6 million euros). The main transactions of H1 2023 were the sale of the Treesquare building by Nextensa (investment property) and the sale by AvH of its 50% stake in Telemond (financial fixed assets). Following the realisation of a capital increase in its main operating company Infra Asia Investments, Deep C Holding reimbursed loans from CFE and AvH for 19.4 million euros (eliminated in consolidation).
In H1 2023 AvH acquired additional treasury shares. In H1 2023 91,885 treasury shares have been purchased as part of a 70 million euros total program that has been extended till year end 2023. In H1 2023 80,000 treasury shares have been allocated to the covering of outstanding options on AvH shares. As a result of the exercise of stock options in H1 2023, 28,000 own shares have been sold. The total of all transactions involving treasury shares (including the liquidity program as well) resulted in a cash outflow of 11.8 million euros.
At June 30, 2023 FinAx had already received the dividends from Bank Van Breda and Delen Private Bank. As the distribution by FinAx of its own dividend only will take place in Q3 2023, an amount of 81.9 million euros has been deposited with AvH. This amount is eliminated in the AvH consolidated financial statements at June 30, 2023.
Investments and divestments in controlling interests resulted in a net cash inflow of 23.1 million euros. This positive flow has been realised in the "Marine Engineering & Contracting" segment as a result of the cash part of Transocean's capital increase in DEME's affiliate GSR and of the capital increase subscribed by third parties at IAI, the main operating company of Deep C Holding. CFE and AvH each subscribed 50% of the capital of the new holding company GreenStor that acquired the battery project formerly held by Deep C Holding. In AvH & Growth Capital, the outflow amounted to 9.7 million euros, mainly explained by the 8.9 million euros disbursed for the increase of the participation in Nextensa with 2.12%.
Evolution of the financial debts (cash & non -cash)
| (€ 1,000) | |
|---|---|
| Financial debts at 31 -12 -2022 |
2,034,489 |
| Movements in the Cashflow statement (Cash flow from financial activities) | |
| Increase of financial debts | 247,260 |
| (Decrease) of financial debts | -226,626 |
| Non -cash movements |
|
| - Changes in consolidation scope - acquisitions | 0 |
| - Changes in consolidation scope - divestments | 0 |
| - IFRS 16 Leases - tangible assets | 36,041 |
| - IFRS 16 Leases - investment property | 0 |
| - Impact of exchange rates | -113 |
| - Others | 0 |
| Financial debts at 30 -06 -2023 |
2,091,051 |
6.8. Segment information – Consolidated cash flow statement 30-06-2022
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | ||
|---|---|---|---|---|---|---|---|
| Marine Engineering & Contracting |
Private Banking |
Real Estate & Senior Care |
Energy & Resources |
AvH & Growth Capital |
Eliminations between segments |
Total 30-06-2022 |
|
| I. Cash and cash equivalents - opening balance | 726,526 | 45,362 | 73,327 | 576 | 37,938 | 0 | 883,730 |
| Profit (loss) from operating activities | 54,051 | 35,828 | 22,155 | -17 | 100,091 | 70 | 212,179 |
| Reclassification 'Profit (loss) on disposal of assets' to cash flow from divestments |
-4,190 | -34 | -5,342 | 0 | -97,244 | -106,811 | |
| Dividends from participations accounted for using the equity method |
18,438 | 80,145 | 0 | 0 | 16,479 | 115,062 | |
| Other non-operating income (expenses) | 0 | 0 | 0 | 0 | 0 | 0 | |
| Income taxes (paid) | -35,112 | -9,218 | -4,927 | 0 | -464 | -49,721 | |
| Non-cash adjustments | |||||||
| Depreciation | 165,445 | 3,559 | 499 | 0 | 2,385 | 171,888 | |
| Impairment losses | -3,860 | 895 | 175 | 0 | -21 | -2,812 | |
| Share based payment | 0 | -6,157 | 0 | 0 | 688 | -5,469 | |
| Profit (loss) on assets/liabilities designated at | |||||||
| fair value through profit and loss | 0 | 0 | 6,941 | 0 | -13,598 | -6,657 | |
| (Decrease) increase of provisions | 2,353 | -3,253 | 3 | 0 | -15 | -912 | |
| Other non-cash expenses (income) | -3,265 | -921 | -116 | 0 | 303 | -3,999 | |
| Cash flow | 193,859 | 100,845 | 19,388 | -17 | 8,604 | 70 | 322,749 |
| Decrease (increase) of working capital | -101,005 | 4,778 | 16,785 | 43 | -9,116 | 94,900 | 6,386 |
| Decrease (increase) of inventories and construction contracts | -37,594 | 0 | 14,300 | 0 | -5,131 | -28,425 | |
| Decrease (increase) of amounts receivable | -221,404 | -98,552 | 12,263 | 33 | -8,587 | 94,900 | -221,346 |
| Decrease (increase) of receivables from credit institutions and clients (banks) |
0 | 274,169 | 0 | 0 | 0 | 274,169 | |
| Increase (decrease) of liabilities (other than financial debts) | 155,792 | 8,033 | -10,953 | 10 | 4,139 | 0 | 157,020 |
| Increase (decrease) of debts to credit institutions, clients & securities (banks) |
0 | -179,665 | 0 | 0 | 0 | -179,665 | |
| Decrease (increase) other | 2,201 | 793 | 1,175 | 0 | 463 | 4,633 | |
| Cash flow from operating activities | 92,854 | 105,623 | 36,173 | 26 | -511 | 94,970 | 329,135 |
| Investments | -245,734 | -149,313 | -18,338 | -5,282 | -50,899 | 19,119 | -450,447 |
| Acquisition of intangible and tangible assets | -236,528 | -1,913 | -2,026 | 0 | -1,326 | -241,793 | |
| Acquisition of investment property | 0 | 0 | -16,312 | 0 | 0 | -16,312 | |
| Acquisition of financial fixed assets (business combinations included) | -1,900 | 0 | 0 | -5,282 | -15,201 | -22,383 | |
| Cash acquired through business combinations | 4,433 | 0 | 0 | 0 | 0 | 4,433 | |
| New loans granted | -11,739 | -529 | 0 | 0 | -19,344 | 19,119 | -12,493 |
| Acquisition of investments | 0 | -146,872 | 0 | 0 | -15,028 | -161,900 | |
| Divestments | 27,493 | 79,292 | 63,242 | 0 | 177,727 | -3,147 | 344,607 |
| Disposal of intangible and tangible assets | 5,875 | 7 | 0 | 0 | 34 | 5,916 | |
| Disposal of investment property | 0 | 0 | 63,242 | 0 | 0 | 63,242 | |
| Disposal of financial fixed assets (business disposals included) | 101 | 0 | 0 | 0 | 159,487 | 159,587 | |
| Cash disposed of through business disposals | 26 | 0 | 0 | 0 | 0 | 26 | |
| Reimbursements of loans | 21,491 | 0 | 0 | 0 | 3,147 | -3,147 | 21,491 |
| Disposal of investments | 0 | 79,285 | 0 | 0 | 15,059 | 94,344 | |
| Cash flow from investing activities | -218,241 | -70,021 | 44,904 | -5,282 | 126,828 | 15,973 | -105,841 |
| Financial operations | |||||||
| Dividends received | 0 | 1,320 | 0 | 0 | 825 | 2,145 | |
| Interest received | 4,624 | 7 | 1,558 | 0 | 765 | -508 | 6,447 |
| Interest paid | -11,035 | -32 | -5,093 | 0 | -259 | 508 | -15,912 |
| Other financial income (costs) | 6,763 | -7 | -5,981 | 0 | -166 | -70 | 539 |
| Decrease (increase) of treasury shares - AvH | 0 | 0 | 0 | 0 | -5,748 | -5,748 | |
| Decrease (increase) of treasury shares - affiliates | 0 | 0 | -3,974 | 0 | 0 | -3,974 | |
| Increase of financial debts | 487,768 | 0 | 98,164 | 0 | 106,900 | -114,019 | 578,813 |
| (Decrease) of financial debts | -222,357 | -1,402 | -172,896 | 0 | 573 | 3,147 | -392,935 |
| (Investments) and divestments in controlling interests | -144 | 0 | -6,067 | 0 | -30 | -6,240 | |
| Dividends paid by AvH | 0 | 0 | 0 | 0 | -91,085 | -91,085 | |
| Dividends paid intra group | -2,400 | 0 | -14,635 | 0 | 17,035 | 0 | |
| Dividends paid to minority interests Cash flow from financial activities |
0 263,219 |
-5,525 -5,639 |
-10,212 -119,136 |
0 0 |
0 28,810 |
-110,943 | -15,737 56,311 |
| II. Net increase (decrease) in cash and cash equivalents Transfer between segments |
137,832 0 |
29,963 0 |
-38,059 0 |
-5,256 5,282 |
155,126 -5,282 |
0 | 279,606 |
| Impact of exchange rate changes on cash and cash equivalents | 2,261 | 0 | 0 | -36 | -15 | 2,210 | |
| III. Cash and cash equivalents - ending balance | 866,619 | 75,325 | 35,269 | 566 | 187,767 | 0 | 1,165,546 |
7. Notes to the financial statements
7.1. Basis for the presentation of the condensed financial statements
The condensed consolidated financial statements of AvH as of June 30, 2023 are issued in accordance with IAS 34. These condensed financial statements do not contain all the information that is required for full reporting and should be read in conjunction with the 2022 financial statements.
New and amended standards and interpretations:
Following new standards and amendments to existing standards published by the IASB, are applied as from January 1, 2023:
• Amendments to IAS 1 presentation of financial statements and IFRS practice statement 2: disclosure of accounting policies. As required by Amendments to IAS 1 presentation of financial statements and IFRS practice statement 2, a detailed review of AvH's accounting policies will be done for year-end 2023 financials.
7.2. Financial assets and liabilities per category
- Amendments to IAS 8 accounting policies, changes in accounting estimates and errors: definition of accounting estimates
- Amendments to IAS 12 income taxes: deferred tax related to assets and liabilities arising from a single transaction
- IFRS 17 insurance contracts
The application of those new and amended standards and interpretations has no significant impact on the group's financial statements.
• Amendments to IAS 12 income taxes: Pillar Two Model Rules International Tax Reform (not yet endorsed by the EU). The Group is currently assessing Pillar Two Impacts.
| (€ 1,000) | Fair value | Book value | |||
|---|---|---|---|---|---|
| 30-06-2023 | 31-12-2022 | 30-06-2023 | 31-12-2022 | ||
| Financial assets | |||||
| Financial assets : shares - Fair value through P/L (FVPL) | 261,351 | 249,656 | 261,351 | 249,656 | |
| Financial assets : bonds - Fair value through OCI (FVOCI) | 501,577 | 502,908 | 501,577 | 502,908 | |
| Financial assets : shares - Fair value through OCI (FVOCI) | 110 | 263 | 110 | 263 | |
| Financial assets - at amortised cost | 64,837 | 0 | 64,837 | 0 | |
| Receivables and cash | |||||
| Financial fixed assets - receivables and warranties | 211,875 | 189,875 | 211,875 | 189,875 | |
| Other receivables | 182,197 | 127,871 | 182,197 | 127,871 | |
| Trade debtors | 761,444 | 719,214 | 761,444 | 719,214 | |
| Cash and cash equivalents | 1,021,128 | 1,160,972 | 1,021,128 | 1,160,972 | |
| Banks - receivables from credit institutions & clients | 7,340,775 | 6,780,990 | 7,476,062 | 6,940,242 | |
| Banks - changes in fair value of the hedged credit portfolio | -81,039 | -89,733 | -81,039 | -89,733 | |
| Hedging instruments | 169,555 | 183,270 | 169,555 | 183,270 | |
| (€ 1,000) | Fair value | Book value | ||
|---|---|---|---|---|
| 30-06-2023 | 31-12-2022 | 30-06-2023 | 31-12-2022 | |
| Financial liabilities | ||||
| Financial liabilities valued at amortised cost | ||||
| Financial debts | ||||
| Bank loans | 1,556,419 | 1,577,488 | 1,591,770 | 1,613,885 |
| Bonds | 133,339 | 139,348 | 140,131 | 139,348 |
| Surbordinated loans | 677 | 677 | 677 | 677 |
| Lease debts | 165,863 | 151,959 | 165,863 | 151,959 |
| Other financial debts | 192,609 | 128,621 | 192,609 | 128,621 |
| Other debts | ||||
| Trade payables | 1,165,660 | 1,136,241 | 1,165,660 | 1,136,241 |
| Advances received | 95,378 | 72,539 | 95,378 | 72,539 |
| Amounts payable regarding remuneration and social security | 183,054 | 210,608 | 183,054 | 210,608 |
| Other amounts payable | 114,802 | 110,391 | 114,802 | 110,391 |
| Banks - debts to credit institutions, clients & securities | 7,463,160 | 6,792,663 | 7,510,974 | 6,834,644 |
| Hedging instruments | 67,362 | 85,785 | 67,362 | 85,785 |
| (€ 1,000) | 30-06-2023 | 31-12-2022 | ||||
|---|---|---|---|---|---|---|
| Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |
| Financial assets | ||||||
| Financial assets : shares - Fair value through P/L (FVPL) | 164,119 | 97,232 | 152,405 | 97,251 | ||
| Financial assets : bonds - Fair value through OCI (FVOCI) | 501,577 | 502,908 | ||||
| Financial assets : shares - Fair value through OCI (FVOCI) | 110 | 263 | ||||
| Financial assets - at amortised cost | 30,015 | 34,822 | 0 | |||
| Receivables and cash | ||||||
| Banks - receivables from credit institutions & clients | 1,205,688 | 6,135,086 | 751,761 | 6,029,229 | ||
| Banks - changes in fair value of the hedged credit portfolio | -81,039 | -89,733 | ||||
| Hedging instruments | 169,555 | 183,270 | ||||
| Financial liabilities | ||||||
| Financial debts | ||||||
| Bank loans | 1,556,419 | 1,577,488 | ||||
| Bonds | 133,339 | 0 | 139,348 | |||
| Surbordinated loans | 677 | 677 | ||||
| Lease debts | 165,863 | 151,959 | ||||
| Banks - debts to credit institutions, clients & securities | 7,463,160 | 6,792,663 | ||||
| Hedging instruments | 67,362 | 85,785 |
There are no significant changes compared to year end 2022.
7.3. Seasonality or cyclicality of operations
Ackermans & van Haaren is active in several segments, each (more or less) cyclically sensitive: dredging & infrastructure, energy markets (DEME, Deep C Holding, Green Offshore), construction (CFE), evolution on the financial markets and interest rates (Delen Private Bank and Bank Van Breda), real estate and interest rates
evolution (Nextensa) and the evolution of commodity prices (SIPEF, Sagar Cements). The segments in which the Growth Capital participations are active, are also confronted with seasonal or cyclical activities.
7.4. Earnings per share
| (€ 1,000) | 30-06-2023 | 30-06-2022 |
|---|---|---|
| Net consolidated result, group share (€ 1,000) | 170,696 | 278,365 |
| Weighted average number of shares (1) | 33,068,792 | 33,132,548 |
| Earnings per share (€) | 5.16 | 8.40 |
| Net consolidated result, group share (€ 1,000) | 170,696 | 278,365 |
| Weighted average number of shares (1) | 33,068,792 | 33,132,548 |
| Impact stock options | 30,788 | 57,216 |
| Adjusted weighted average number of shares | 33,099,580 | 33,189,764 |
| Diluted earnings per share (€) | 5.16 | 8.39 |
| (€ 1,000) | 30-06-2023 | 30-06-2022 |
| Net consolidated result from continuing operations, group share (€ 1,000) | 170,696 | 275,315 |
| Weighted average number of shares (1) | 33,068,792 | 33,132,548 |
| Earnings per share (€) | 5.16 | 8.31 |
|---|---|---|
| Net consolidated result from continuing operations, group share (€ 1,000) | 170,696 | 275,315 |
| Weighted average number of shares (1) | 33,068,792 | 33,132,548 |
| Impact stock options | 30,788 | 57,216 |
| Adjusted weighted average number of shares | 33,099,580 | 33,189,764 |
| Diluted earnings per share (€) | 5.16 | 8.30 |
(1) Based on number of shares issued, adjusted for treasury shares in portfolio
7.5. Treasury shares
| Treasury shares as part of the stock option plan | 30-06-2023 | 30-06-2022 |
|---|---|---|
| Opening balance | 317,100 | 345,250 |
| Acquisition of treasury shares | 80,000 | 20,350 |
| Disposal of treasury shares | -28,000 | -4,000 |
| Ending balance | 369,100 | 361,600 |
| Treasury shares as part of the liquidity contract | 30-06-2023 | 30-06-2022 |
|---|---|---|
| Opening balance | 3,506 | 1,842 |
| Acquisition of treasury shares | 105,892 | 237,545 |
| Disposal of treasury shares | -96,031 | -219,366 |
| Ending balance | 13,367 | 20,021 |
| Treasury shares as part of the share buyback programme | 30-06-2023 | 30-06-2022 |
|---|---|---|
| Opening balance | 70,633 | 0 |
| Acquisition of treasury shares | 11,885 | 0 |
| Disposal of treasury shares | 0 | 0 |
| Ending balance | 82,518 | 0 |
In October 2022, AvH announced the start of a share buyback programme of up to 70.0 million euros. The programme started on October 5, 2022 and its duration was extended by the Board of Directors until year end 2023. Since the start of this programme, 162,518 treasury shares have been bought, for a total amount of 23.5 million euros. Meanwhile 80.000 of these shares have been allocated to cover stock option plan obligations. As of June 30, 2023, all outstanding option obligations are fully covered by these 369,100 treasury shares.
In addition, 105,892 AvH shares were purchased and 96,031 shares were sold in H1 2023 in the context of the contract that AvH entered into with Kepler Cheuvreux in order to support the liquidity of the AvH share. These transactions are initiated entirely autonomously by Kepler Cheuvreux, but as they take place on behalf of AvH, the net purchase of 9,861 AvH shares has an impact on AvH's equity. On June 30, 2023, the number of treasury shares in the portfolio in the context of this liquidity agreement amounts to 13,367.
In total, on June 30, 2023, the total number of treasury shares amounts to 464,985 (1.39%. of the shares issued). In accordance with IFRS, the carrying amount of these treasury shares of 52.6 million euros is deducted from equity (see Note 5. Statement of changes in consolidated equity).
7.6. Impairments
Each group company of AvH is treated as a distinct cash generating unit (CGU). Where there are indications of an impairment loss, and as part of an impairment test, a fair value is determined for each CGU on the basis of publicly available market valuations (market price of listed companies / recent transactions / broker reports). If after this first step on the basis of a fair value approach it turns out that additional justification is required, a value in use will also be determined from the perspective of AvH, based on a discounted cash flow (DCF) model or market multiples. If, after this second step, still no adequate justification can be given for the carrying amount in the balance sheet, an 'impairment' will be recognised. In addition, AvH subjects the goodwill in its balance sheet to an impairment test at least each year.
At AvH level there were no such indications that led to an impairment test in the first half of 2023 and consequently no impairment loss on a CGU. Both positive and negative fair value adjustments are recognised on certain financial assets designated at fair value (see Note 6.1 Segment information - income statement).
7.7. Contingent liabilities or contingent assets
- In H1 2023, AvH further reduced the provision for contingent liabilities which it had accounted for at year-end 2013 in respect of its stake in CFE by 2.5 million euros (AvH share: 1.5 million euros) to 10 million euros (AvH share: 6.0 million euros). This reversal is justified by the disappearance of the underlying risks for which the provision had been constituted at year-end 2013.
- With regard to the contingent liabilities related to DEME (we refer to Note 18. Provisions in the annual report of 2022): since 2018, DEME has been involved in discussions with Rijkswaterstaat in the Netherlands related to the execution by one of its subsidiaries of the Juliana Canal widening project. Following intense discussions, a settlement (included in the H1 2023 result of DEME) has been reached with Rijkswaterstaat in the Netherlands whereby Rijkswaterstaat will pay De Vries & Van De Wiel Kust-en Oeverwerken BV and Rijkswaterstaat fully and finally releases De Vries & Van De Wiel Kust- en Oeverwerken BV from all and any liabilities in relation to the project. As such this matter can be closed.
8. Main risks and uncertainties
For a description of the main risks and uncertainties, please refer to the AvH annual report for the financial year ended December 2022. The composition of AvH's portfolio changed only slightly during the first half year. Accordingly, the risks and the spread of those risks have not changed fundamentally in relation to the situation at the end of the previous year.
Several group companies of AvH (such as DEME, CFE, Deep C Holding, SIPEF, Turbo's Hoet Groep, Agidens,...) are also internationally active and are therefore exposed to related political and credit risks.
When disposing of participating interests and/or activities, AvH and its subholdings are regularly required to provide certain warranties and representations. These may give rise to claims - legitimate or otherwise - from buyers for compensation on that basis. AvH and its subholdings received no such claims in H1 2023.
Several fully consolidated companies have agreed on certain ratios (covenants) in their credit agreements and these were respected on June 30, 2023.
Several group companies of AvH (such as DEME, CFE, Agidens...) are actively involved in the execution of projects. This always entails a certain operational risk, but also means that certain estimates of profitability need to be made at the end of such a project. This risk is inherent to the activity, as well as the risk of disagreements with customers over divergent costs or changes in execution and the collection of these receivables. DEME is involved, both as claimant and as defendant, in discussions with customers about the financial consequences of deviations in the execution of contracting projects. In a small number of cases they may result in lawsuits. In so far as the consequences of such lawsuits can be reliably estimated, provisions are made for this in the accounts.
In the current market context, AvH is focusing more than ever on its role as proactive shareholder in its portfolio companies. By participating in risk committees, audit committees, technical committees etc. at DEME, CFE, Deep C Holding and Agidens, AvH specifically monitors the risks in its contracting division from a very early stage.
As regards to the risk of value adjustments on assets, reference is made to section 7.6 Impairments.
In its role as proactive shareholder, AvH also sees to it that the companies in which it participates organize themselves in such a way as to comply with current laws and regulations, including all kinds of international and compliance rules.
9. Overview of the major related party transactions
No new transactions with related parties took place in H1 2023 that have any material impact on AvH's results. Furthermore, in H1 2023 there were no changes in the transactions with affiliated parties as they are described in the annual report for the 2022 financial year and which could have material consequences for AvH's financial position or results.
10. Events after balance sheet date
• AvH, through its wholly owned subsidiary AvH Growth Capital NV, entered into an agreement with HAL Investments to acquire 40% of IQIP Holding B.V. ('IQIP') for c. 100 million euros. Simultaneously, MerweOord B.V will acquire 20% of IQIP. MerweOord has the option to increase its shareholding to 33.33% in the course of 2024, which upon exercise would result in a shareholding with HAL, AvH and MerweOord each owning 1/3 of IQIPs shares. This transaction is subject to various closing conditions, including regulatory approvals. IQIP, AvH, HAL and MerweOord will work together to obtain all necessary merger clearances. It is expected that completion of the transaction will occur early 2024.
IQIP, headquartered in Sliedrecht in the Netherlands, designs and assembles hydraulic hammers and other (sets of) piling, handling, lifting and subsea guiding equipment that are leased or sold globally across three core markets: Offshore Wind, Coastal & Civil and Oil & Gas. In addition, the company has growth ambitions in related (innovative) offshore markets such as decommissioning of oil & gas platforms. In the challenging year 2022, the company realized a turnover of 102 million euros (159 million euros in 2021) and an operating cash flow (EBITDA) of 30 million euros (56 million euros in 2021).
• In April 2023, AvH announced its participation in an open offer on Camlin Fine Sciences, a specialty chemicals company headquartered in Mumbai, India and listed on the BSE. Camlin's key products include vanillin (the taste and aroma behind the vanilla flavour), shelf life solutions (antioxidants used in food preservation) and performance chemicals (specialty chemicals used in specific industrial applications). Camlin closed its fiscal year ended March 2023 with a consolidated revenue of 17 billion INR and 768 employees.
This open offer is undertaken in accordance with applicable SEBI (Securities and Exchange Board of India) regulations and has started on August 18, 2023. The offer concerns 26% of the shares of Camlin Fine Sciences at a price of 160 INR per share, implying a total offer size of roughly 79 million euros, of which AvH is committing up to 53 million euros. Although AvH has announced this intended transaction already in April 2023, it will only materialise in Q3 2023.
AUDITOR'S REPORT
Report of the statutory auditor to the shareholders of Ackermans & van Haaren NV on the limited review of the interim condensed consolidated financial statements as of 30 June 2023 and for the 6 month period then ended.
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Ackermans & van Haaren NV (the "Company"), and its subsidiaries (collectively referred to as "the Group") as at 30 June 2023 and the related interim condensed consolidated statements of income, the consolidated statement of comprehensive income, the statements of changes in consolidated equity and cash flows for the six month period then ended, and explanatory notes, collectively, the "Interim Condensed Consolidated Financial Statements".
These statements show a consolidated statement of financial position total of 18,581.4 million euros and a consolidated profit (share of the group) for the 6 month period then ended of 170.7 million euros. The board of directors is responsible for the preparation and presentation of these Interim Condensed Consolidated Financial Statements in accordance with International Financial Reporting Standard IAS 34 Interim Financial Reporting ("IAS 34") as adopted for use in the European Union. Our responsibility is to express a conclusion on these Interim Condensed Consolidated Financial Statements based on our limited review.
Scope of Review
We conducted our review in accordance the International Standard on Review Engagements 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" applicable to review engagements. A limited review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A limited review is substantially less in scope than an audit conducted in accordance with the International Standards on Auditing and, consequently, does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our limited review, nothing has come to our attention that causes us to believe that the accompanying Interim Condensed Consolidated Financial Statements do not give a true and fair view of the financial position of the Group as at 30 June 2023, and of its financial performance and its cash flows for the 6 month period then ended in accordance with IAS 34.
Antwerp, August 30, 2023 EY Bedrijfsrevisoren BV Statutory auditor Represented by Christel Weymeersch Partner*
* Acting on behalf of a BV
DECLARATION
To our knowledge:
(i) the condensed financial statements, drafted in accordance with the applicable standards for annual accounts, present a true and fair view of the assets, financial situation and the results of Ackermans & van Haaren and the companies included in the consolidation;
(ii) the half yearly report provides a true and fair view of the main events and major transactions with related parties that took place in the first six months of the
John-Eric Bertrand Piet Dejonghe Tom Bamelis Piet Bevernage Executive Committee Executive Committee Executive Committee Executive Committee
financial year and their effect on the condensed financial statements, as well as a description of the main risks and uncertainties for the remaining months of the financial year.
August, 30 2023 On behalf of the company
Co-chairman of the Co-chairman of the Member of the Member of the
André-Xavier Cooreman An Herremans Koen Janssen Member of the Member of the Member of the Executive Committee Executive Committee Executive Committee
LEXICON
- Cost-income ratio: The relative cost efficiency (cost versus income) of the banking activities (EBA definition).
- Common Equity Tier1 capital ratio: A capital ratio of the liquidity buffers held by banks to offset any losses, seen from the regulator's perspective. The equity of a bank consists of share capital and undistributed profits. This equity is necessary to offset losses on loans.
- EBIT: Earnings before interest and taxes.
- EBITDA: EBIT plus depreciation and amortization on fixed assets
- ESEF: the European Single Electronic Format is an electronic reporting format in which issuers on EU regulated markets shall prepare their annual financial reports.
- KPI: Key Performance Indicator
- Net financial position: Cash & cash equivalents and investments minus short and long term financial debt.
- Rental yield based on fair value: Rental yield is only calculated on buildings in operation, excluding the projects and the assets held for sale.
- Return on equity (ROE): The relative proftability of the group, more particularly the amount of net income returned as a percentage of shareholders' equity
- SDG: Sustainable Development Goals
- EU taxonomy: regulation that determines which investments can be classified as 'green' and play an important role to implement the EU Green Deal. The classification is based on technical screening criteria (TSC) and minimum criteria based on the do not significant harm principle (DNSH).
- XBRL: An electronical language, specifically designed for the exchange of financial reporting over internet.