Ackermans & van Haaren NV

Earnings Release • Nov 23, 2022

TRADING UPDATE THIRD QUARTER 2022

PRESS RELEASE ANTWERP, NOVEMBER 23, 2022, 7.00

Regulated information within the meaning of the Royal Decree of November 14, 2007. Inside information.

TRADING UPDATE THIRD QUARTER 2022

Ackermans & van Haaren (AvH) also continued in the third quarter on the momentum of the first half of the year.

• • In July 2022, AvH transferred its entire participation in Anima (91.8%) to AG. Over a period of 15 years, Anima - with the active support of AvH - built, from scratch, a high-quality senior care network in Belgium with a capacity of 2,710 beds. This divestment yielded a capital gain of 236.4 million euros. Despite this successful transaction and the earlier successful exit from senior care in France (2019 - Residalya), AvH maintains its interest in investing in care and health.
• • The results of the group's core segments held up well in relation to the record year 2021, despite the worsening economic situation and the deterioration of the geopolitical context.
• • AvH continued to invest during the third quarter as well. As part of AvH's life sciences strategy, the group acquired a new participation of 7.7% (over time) in AstriVax, a spin-off from KU Leuven Rega Institute that plans to develop and produce new vaccines against a variety of viruses on the basis of a revolutionary vaccine technology. The participation in SIPEF was also increased further to 36.36%.
• • Thanks to the major divestments (Manuchar, Anima) and the dividends upstreamed from the participations, AvH's net cash position increased to 511.8 million euros as of September 30, 2022. This will provide the group with substantial financial resources to further expand its portfolio in a disciplined manner, even after the programme announced in October 2022 for the buyback of own shares for up to 70 million euros.

On the basis of these elements, the board of directors confirms its previously formulated outlook for the full year 2022, more specifically a record profit for the full year and a contribution of the core segments in line with that of the previous record year 2021.

Cash position

At the end of September 2022, AvH had a net cash position of 511.8 million euros, compared to 212.7 million euros at the end of June 2022 and 77.7 million euros at the end of 2021. Besides cash and short-term deposits, this cash position consists of short-term debts in the form of commercial paper amounting to 6 million euros, short-term investments amounting to 39 million euros and treasury shares.

Own shares

AvH owned 361,600 treasury shares as of September 30, 2022 (stable compared to June 30, 2022) to hedge present and future stock option plan obligations. In pursuance of the liquidity agreement with Kepler Cheuvreux, 327,453 treasury shares were purchased and 315,369 were sold in the first nine months of 2022.

In October, AvH announced the start of a share buyback programme of up to 70.0 million euros. The programme started on October 5, 2022 and will in principle run until the annual meeting of May 22, 2023, unless the maximum amount has been invested prior to that date. The board of directors considers a share buyback as a meaningful investment of the company's significant financial resources. In pursuance of this plan, 70,633 shares have already been purchased for a total amount of 9,642,943 euros as at November 18.

Composition board of directors

Alexia Bertrand took the oath of office as State Secretary for the Budget and Consumer Protection on November 19 and voluntarily resigned as a director of the company.

The board of directors thanks Alexia Bertrand for her outstanding contribution to the board's deliberations and decision-making over the past 9 years and will nominate a new female candidate director for appointment no later than the next ordinary general meeting.

MARINE ENGINEERING & CONTRACTING

DEME

DEME (AvH 62.12%) realised a turnover increase over the first nine months of 14% to 1,965.2 million euros (Q3 2021: 1,730.8 million euros). The solid growth in the Offshore Energy and Environmental segments was offset by a smaller turnover increase within Dredging & Infra.

The order backlog reached a record level of 5,950.4 million euros (compared to 5,620.0 million euros at the end of the first half of 2022 and 5,905.2 million euros at year-end 2021). This increase confirms the healthy demand, the strong market position and the major new contracts in Offshore Energy and Dredging & Infra, primarily in Southeast Asia (Taiwan, Australia) and Europe.

The turnover of Offshore Energy increased by 27% to 754.7 million euros, thanks to the successful execution of projects. Milestones during the third quarter included the completion of the XL monopile Arcadis Ost 1 project (Germany) and the drilling of monopiles in solid rock for the St Nazaire project (France). The Offshore segment was also actively involved in the Hinkley project (UK) and the Kaskasi project (Germany), while preparations for the Dominion project in the US were started. The Vineyard Wind project (US East Coast) is also under preparation and is scheduled to start in the first quarter of 2023.

New contracts were added to the order backlog during the third quarter, including major projects in Australia and Taiwan.

DEME Offshore Energy continues to expand and strengthen its organisation and fleet (including the offshore installation vessel Orion and an extra DP fallpipe vessel) in anticipation of an acceleration of activities in the coming years.

The turnover of Dredging & Infra amounted to 1,097.4 million euros, a 3% increase compared to the same period last year. The turnover was influenced by a high number of dockings for extensive maintenance in combination with the reallocation of the fleet to new projects in Europe, Africa and Asia as a result of the conflict between Russia and Ukraine. Major projects in progress at Infra include the start-up phase of the Fehmarnbelt Fixed Link project (Denmark), the first phase of Port La Nouvelle (France) and the Blankenburg project in the Netherlands.

Projects added to the order backlog in the third quarter include the new container terminal in the port of Gdansk (Poland) and land reclamation works at the container terminal in Sri Lanka.

Environmental continued its steady growth as well and increased its turnover by 14% to 138.6 million euros. The group was engaged on several projects, such as the soil remediation and water treatment projects Condé-Pommeroeul (France), Blue Gate (Belgium), GoWa (The Netherlands) and in the UK.

DEME: Turnover

(€ million)	3Q22	3Q21	2021
Offshore Energy	754.7	596.5	916.4
Dredging & Infra	1,097.4	1,064.6	1,478.3
Environmental	138.6	121.3	166.2
Concessions	0.3	1.2	1.5
Eliminations	-25.8	-52.8	-51.8
Total	1,965.2	1,730.8	2,510.6

The order backlog also kept growing steadily with new contracts in Norway and France and follow-up projects in Belgium.

The Concessions segment is involved in offshore concessions 'in operation' representing more than 1 gigawatt in wind energy that generate stable recurring income, and at the same time is building up more than 2 gigawatt in projects in Scotland, Europe, Asia and Latin America. Concessions in the dredging segment continue to be focused on projects in the portfolio and under construction for Blankenburg (The Netherlands) and Port La Nouvelle (France), while at the same time the scope of the port of Duqm (Oman) is being expanded. The long-term green hydrogen projects, with the flagship project in Oman, also continue to advance.

DEME remains on track to achieve its outlook for the full year 2022: a slightly higher turnover than in 2021, an EBITDA similar to 2021 and a slightly lower net result. Investments over the full year 2022 are expected to amount to approximately 500 million euros.

DEME - Orion - Arcadis Ost 1

CFE

CFE: Turnover

(€ million)	3Q22	3Q21	2021
Real Estate Development	55.1	72.4	106.3
Multitechnics	250.5	240.6	321.4
Construction & Renovation	570.7	523.7	723.7
Investments & Holding (incl. eliminations)	-34.2	-17.7	-26.1
Total	842.1	819.0	1,125.3

CFE (AvH 62.12%) realised a slight turnover increase to 842.1 million euros, compared to 819.0 million euros over the same period last year. The group's order book increased significantly (+6.4%) to 1,725 million euros, compared to 1,621 million euros at the end of 2021. The net financial debt remained stable at 112 million euros.

In the Real Estate Development segment, the total real estate portfolio amounted to 198 million euros, a 4.2% increase compared to 190 million euros at year-end 2021.

In Belgium, sales and construction began of the residential projects Tervurenplein in Sint-Pieters-Woluwe and Arboreto in Tervuren; sales of the residential projects are going well. Also in Luxembourg, sales of residential projects under construction remain satisfactory. In Poland, construction has begun of three residential projects, more particularly Bernardovo in Gdynia, Panoramikqa in Poznan, and Czysta in Wroclaw. In September, BPI acquired 26 ares of land in the Mokotow district of Warsaw. A property of more than 7,500 m² with 103 apartments and shops can be developed on this site. Planning permission and the start of construction are expected early 2024.

The turnover of Multitechnics increased to 250.5 million euros, compared to 240.6 million euros over the same period last year. This increase is primarily attributable to VMA and HVAC in particular. MOBIX, on the other hand, reported a 5% decrease of its turnover.

The order book amounted to 357.4 million euros (year-end 2021: 401.0 million euros). VMA's order book remained at a high level. At MOBIX, however, the order book decreased by 25% as a result of the smaller number of new tenders launched by Infrabel.

The turnover of Construction & Renovation increased by 9% to 570.7 million euros, compared to 523.7 million euros over the same period last year. In Belgium, business remained stable overall, with an increase in Brussels thanks to the ZIN project, and a decrease in Flanders. In Luxembourg, turnover increased substantially, thanks in particular to the projects for BPI and its partners. In Poland, the projects for logistics centres remain important, while several residential projects for BPI have been started up.

The order book increased by 9.8% to 1,280.2 million euros (year-end 2021: 1,166.0 million euros). New contracts were signed mainly in Belgium and Poland. The high level of the order book is a valuable asset in an uncertain economic environment.

In its Investments & Holding segment, CFE has a 50% stake in Green Offshore and in Rent-A-Port. 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 Rent-A-Port.

CFE confirms the outlook it had communicated at the time of publication of the half-year results. Thanks to a well-filled order book, CFE expects a turnover increase in 2022. The net result should remain at a high level, close to that of 2021, which was positively impacted by the partial disposal of a major real estate project. The return on equity should exceed the long-term target of 15%.

Rent-A-Port

Rent-A-Port (AvH 81.06%) increased its stake in IAI by 33% to 94% in the first quarter of 2022. IAI continues the development of its activities in the north of Vietnam and expect to be able to sell more hectares in 2022 than in 2021 (64 hectares).

Green Offshore

At Green Offshore (AvH 81.06%), the SeaMade and Rentel wind farms together produced more than 1,600 GWh of green electricity in the first nine months of 2022. Wind conditions this summer were not ideal, with lower than expected wind speeds.

CFE - ZIN Brussels

PRIVATE BANKING

In the third quarter of 2022, the positive net inflow at both Delen Private Bank (AvH 78.75%) and Bank Van Breda (AvH 78.75%) couldn't offset the negative impact of the market effect (as a result of decreasing financial markets). The total client assets decreased to 56.6 billion euros at September 30, 2022, compared to 57.6 billion euros at June 30, 2022 and 63.9 billion euros at December 31, 2021.

At Delen Private Bank, the assets under management on a consolidated basis (Delen Private Bank, JM Finn) amounted to 46.7 billion euros at the end of September 2022, compared to 47.8 billion euros at the end of June 2022 and 54.3 billion euros at the end of December 2021. Of those assets, 86% is managed under discretionary mandates. Despite the current circumstances, the net inflow remained positive in Belgium, the Netherlands and the United Kingdom.

At the end of August, Delen Private Bank announced the acquisition of Groenstate Vermogensbeheer. Groenstate is an established player in the Twente region (The Netherlands) with around 225 million euros assets under management. Pending the final approval, these assets under management are not yet included in the figures of Delen Private Bank Netherlands. With this acquisition, Delen Private Bank forges ahead with its ambition to be a leading player in the Dutch private banking market.

Despite the unfavourable stock market climate and in a context of increasing interest rates, the total client assets at Bank Van Breda increased modestly to 20.4 billion euros at the end of September 2022, compared to 20.3 billion euros at June 30, 2022 (21.1 billion euros at year-end 2021). These client assets include 13.7 billion euros off-balance sheet products and 6.7 billion euros client deposits. The loan portfolio amounted to 6.1 billion euros.

With effect from December 1, René Havaux will hand over his position as CEO of Delen Private Bank to Michel Buysschaert, who has been a member of the bank's executive committee for the past two years.

Total client assets

(€ million)	3Q22	1H22	2021
Delen Private Bank (AuM)	46,703	47,752	54,346
of which discretionary	86%	86%	85%
Delen Private Bank	35,384	35,888	40,340
Delen Private Bank (1) Netherlands	1,026	1,046	1,154
JM Finn	11,319	11,864	14,006
Bank Van Breda
Off-balance sheet products	13,734	13,708	14,720
Client deposits	6,657	6,598	6,368
AuM at Delen(1)	-10,506	-10,496	-11,502
Delen and Van Breda combined (100%)	56,588	57,562	63,932
Gross inflow AuM	3,632	2,803	5,598

(1) Already included in AuM Delen Private Bank

Delen Private Bank - René Havaux and Michel Buysschaert

REAL ESTATE & SENIOR CARE

Nextensa

Nextensa (AvH 58.5%) realised a net result over the first nine months of 2022 of 41.5 million euros, compared to 35.7 million euros over the same period last year.

The fair value of Nextensa's real estate portfolio remained stable at 1.4 billion euros relative to year-end 2021. The result realised on the sale of buildings (The Crescent (Anderlecht), Monnet 4 (Kirchberg, Luxembourg)) in H1 2022 remained unchanged at 5.3 million euros. A substantial positive effect is still expected in the fourth quarter of 2022 from the sale of the Titanium building in Luxembourg.

The rental income increased by 3.9 million euros to 51.6 million euros, thanks to the addition of the heritage buildings on Tour & Taxis and a like-for-like rental increase of 1.03% on the existing portfolio as a result of the steadily increasing indexation of leases. The occupancy rate increased to 91.2%, compared to 89.1% at the end of 2021. A lease was concluded with CD&V for 1,500 m² of office space in Gare Maritime in Brussels. The operating result of the real estate portfolio increased to 44.5 million euros (Q3 2021: 36.8 million euros).

The development projects (Tour & Taxis and Cloche d'Or) contributed 15.7 million euros in the first nine months of 2022 (Q3 2021: 5.6 million euros).

More than 100 apartments of the Park Lane phase II project on the Tour & Taxis site have already been reserved. In mid-September, a 20 year lease was concluded with B&B HOTELS for the development of a hotel with 150 rooms on Cloche d'Or. The Darwin I - 'Bronze Gate' building, also on Cloche d'Or, was delivered in September and sold in October for 65 million euros.

The financial debt ratio decreased from 48.56% at year-end 2021 to 45.70% at September 30, 2022. The sale of the Titanium building (in December 2022) will lead to a further reduction of this debt ratio, and at the same time result in a higher coverage ratio due to the lower debt take-up. The rising interest rate curve also led to a positive revaluation of the derivatives portfolio at September 30, 2022. This positive effect is partly offset by the decrease in value of the participation in Retail Estates, which according to the IFRS standards must be valued at the market price on balance sheet date.

Barring exceptional circumstances, the net result over the full year 2022 will largely exceed the published net result of 2021.

Nextensa

(€ million)	3Q22	3Q21	2021
Rental income	51.6	47.7	65.2
Result from developments	15.7	5.6	15.4
Net result	41.5	35.7	53.2
(€ million)	3Q22	3Q21	2021
Real estate portfolio	1,354.4	1,414.0	1,407.9
Rental yield	5.34%	5.19%	5.20%
Occupancy rate	91.2%	88.8%	89.1%
Shareholders' equity	801.6	761.2	780.0
Net financial position	-807.1	-886.5	-853.3
Debt ratio	45.7%	49.8%	48.6%
Loan to value (investment portfolio)	53.1%	55.6%	54.3%

Anima

The previously announced sale of Anima (AvH 91.8%) to AG was closed in July 2022. This transaction generated more than 300 million euros in cash for AvH and a capital gain of more than 235 million euros. AvH is particularly proud to have built, together with the staff of Anima and the management team, from scratch and within a matter of 15 years a high-quality and respected operator of residential care centres in Belgium with 2,710 beds.

Nextensa - Tour & Taxis - Park Lane

ENERGY & RESOURCES

SIPEF

At SIPEF (AvH 36.36%), the total group production of RSPO compliant, certified 'segregated' sustainable palm oil amounted to 302,322 tonnes (Q3 2021: 291,668 tonnes). The increasing palm oil production in the second and third quarters (+5.4% and +11.7% respectively) turned the volume decrease (-7.0%) of the first quarter into a 3.7% growth over the first nine months of 2022. Palm oil production over the full year 2022 could reach the projected growth of more than 4%, barring exceptional weather conditions.

Despite the sharp decrease in vegetable oil prices on the international markets, palm oil prices remain historically high with quotations again around 1,000 USD CIF Rotterdam per tonne. In total, as at October 20, 2022, SIPEF sold 88% of budgeted palm oil production, at an average price of 1,035 USD per tonne ex-mill gate equivalent, premiums for sustainability and origin included. This is 33% higher than the average price of 778 USD, at the same time last year.

SIPEF can look forward to a record year with very satisfactory recurring annual results. In all likelihood, these will exceed the historic mark of 100 million USD, barring unfavourable changes in export taxes and levies imposed by the Indonesian government. This positive evolution is the result of the combination of increasing annual production volumes, already realised sales at higher prices, and an expected continuing, relatively strong palm oil market.

The company is heading towards a positive net financial position, despite continuing the planned expansion in South Sumatra. These concern the further expansion of planted hectares and infrastructure in Musi Rawas and replanting and infrastructure improvements in Dendymarker.

SIPEF: Production (Tonnes)(1)

(1) Own + outgrowers

In terms of sustainability, over 3,600 smallholders working with Hargy Oil Palms in Papua New Guinea have successfully been recertified to the Roundtable on Sustainable Palm Oil (RSPO) standards, following audits by an independent certification body in August 2022.

In the course of the third quarter, AvH increased its participation in SIPEF from 35.94% to 36.36%.

Papua New Guinea Hargy Oil Palms - Papua New Guinea

AvH & GROWTH CAPITAL

At the end of July, Van Moer Logistics (AvH 21.7%) completed the acquisition of Broekman Logistics Belgium Antwerp (after recent name change 'Van Moer Chemicals'). Van Moer Chemicals offers integrated logistics solutions for the chemical bulk industry. With this acquisition, Van Moer completes its one-stop shop service on both the Antwerp Left and Right Bank.

• Fair value investments

In August 2022, AvH announced its investment in AstriVax (AvH 5.8%), as part of the capital round that was organised by the spin-off from KU Leuven. Over time, AvH will acquire a shareholding of 7.7% in AstriVax. AstriVax has raised a total of 30 million euros of seed capital. The company will develop new vaccines that are easier to produce, have less cold chain requirements, and offer broad and long-lasting protection against various viruses and other pathogens.

• Events after balance sheet date

At the end of October, AvH announced a partnership with Convergent Finance, a Mumbai-based investment management and advisory partnership that focuses on investments in well-established and listed companies in India. AvH will commit 6 million euros in the partnership. In addition, a representative of AvH will assume the chairman position of the advisory council of Convergent. Convergent focuses on various sectors such as food & beverages, specialty chemicals, clean technology and healthcare.

In October, Van Moer Logistics (AvH 21.7%) completed the acquisition of Rhenus Terminal Brussels, which has a surface area of approximately 21,000 m², a quay of 250 metres with rail connection, and is situated next to the existing inland terminal of the logistics group Trimodal Terminal Brussels (TTB), the trimodal inland terminal acquired by Van Moer Logistics in March 2021. Along with the terminal operations, the in-house forwarding service of Rhenus Terminal Brussels has been acquired as well. In this way, Van Moer Logistics expands its presence in the Port of Brussels and thus also strengthens its position as a provider of intermodal logistics solutions.

Also in October, Biotalys (AvH 11.85%) and Novozymes announced a successful feasibility study for Evoca™. Novozymes obtained proof of concept for a new production process that potentially offers substantial cost savings and economies of scale, thereby expanding the commercial potential of Evoca as a new biofungicide.

AstriVax Van Moer Logistics - Rhenus Terminal Brussels

ACKERMANS & VAN HAAREN

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 & Senior Care (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 2021 a turnover of 6.0 billion euros and employed 22,653 people through its share in the participations. AvH is listed on Euronext Brussels and is included in the BEL20 index and the European DJ Stoxx 600 index.

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.

Financial calendar

February 28, 2023	Annual results 2022
May 17, 2023	Interim statement Q1 2023
August 31, 2023	Half-year results 2023
November 23, 2023	Interim statement Q3 2023

Contact

For further information please contact:

John-Eric Bertrand co-CEO - Chairman executive committe - Tel. +32.3.897.92.08

Piet Dejonghe co-CEO - Chairman executive committe - Tel. +32.3.897.92.36

Tom Bamelis CFO - Member executive committe - Tel. +32.3.897.92.42

e-mail: dirsec@avh.be