Quarterly Report • Aug 28, 2014
Quarterly Report
Open in ViewerOpens in native device viewer
Regulated information within the meaning of the Royal Decree of 14 November 2007
Half-year results 2014
PRESS RELEASE
Ackermans & van Haaren realized a net profit in the first half of 2014 of 96.4 million euros, an increase by 1.6 million euros (+1.6%) over last year. The increase of the half-year profit is primarily thanks to a substantial improvement (+31.9 million euros) in the result of the participations, amounting to 96.0 million euros (1H13: 64.1 million euros). In addition, a capital gain of 4.9 million euros was realized on the sale of the participation in NMC. Last year, capital gains accounted for a greater share of the result thanks to the 34.0 million euros gain on the sale of Spano.
Breakdown of the consolidated net result (part of the group) - IFRS
| (€ mio) | 30.06.2014 | 30.06.2013 |
|---|---|---|
| Marine Engineering & Infrastructure | 42.2 | 20.4 |
| Private Banking | 44.6 | 45.0 |
| Real Estate, Leisure & Senior Care | 3.6 | -0.3 |
| Energy & Resources | 6.9 | 5.6 |
| Development Capital | -1.3 | -6.6 |
| Result of the participations | 96.0 | 64.1 |
| Capital gains development capital | 4.9 | 34.0 |
| Result of the participations (incl. capital gains) | 100.9 | 98.1 |
| AvH & subholdings | -4.5 | -3.3 |
| Other non-recurrent results | 0.0 | 0.0 |
| Consolidated net result | 96.4 | 94.8 |
shares, the investment portfolio of AvH and fully consolidated subholdings.
The board of directors remains positive about the group's outlook for the current financial year, and expects an increase in net profit over last year's result, adjusted for the 109.4 million euros remeasurement income following the acquisition of control over DEME/CFE.
Key figures - consolidated balance sheet
| (€ mio) | 30.06.2014 | 31.12.2013 |
|---|---|---|
| Net equity (part of the group - before allocation of profit) |
2,293.7 | 2,251.5 |
| Net cash position of AvH & subholdings | -14.6 | -3.1 |
| (€) | 30.06.2014 | 31.12.2013 |
|---|---|---|
| Number of shares | 33,496,904 | 33,496,904 |
| Net result per share | ||
| Basic | 2.91 | 8.87 |
| Diluted | 2.90 | 8.85 |
| Gross dividend | 1.70 | |
| Net dividend | 1.2750 | |
| Net equity per share | 68.47 | 67.22 |
| Stock price | ||
| Highest (12/5/14) | 95.53 | 85.16 |
| Lowest (3/2/14) | 78.71 | 62.74 |
| Closing price (30/6/14) | 92.09 | 85.16 |
The substantial improvement in DEME's result is reinforced by the higher shareholding percentage following the CFE transaction at the end of 2013.
Contribution to the AvH consolidated net result
In the first six months of 2014, DEME (AvH 60.40%) was able to successfully carry out its projects. The fleet occupancy of the hoppers increased significantly, whereas that of the cutters decreased slightly. The economic turnover increased further by 99 million euros to 1,306 million euros compared to an already particularly active 1H13; a net profit was recorded of 62.6 million euros (1H13: 34.4 million euros).
The impact of this considerable improvement in DEME's result is reinforced in AvH's consolidated financial statements by the increase in shareholding percentage from 50% to 60.4% following the acquisition of control over DEME/CFE at the end of 2013.
After the major efforts that were made in recent years in the expansion of the fleet, the level of investment, for a net amount of 39.5 million euros, was far lower than in previous years. Partly as a result thereof, DEME was able to reduce its net debt position to 536.1 million euros (31/12/2013: 711.3 million euros). Although DEME is in-
DEME
| (€ mio) | 1H14 | 1H13 | |
|---|---|---|---|
| (1) | (2) | (2) | |
| Turnover | 1,212.3 | 1,305.6 | 1,207.0 |
| EBITDA | 191.7 | 215.4 | 181.1 |
| Net result | 62.6 | 62.6 | 34.4 |
| Equity | 881.7 | 881.7 | 776.1 |
| Net financial position |
-416.3 | -536.1 | -821.8 |
vestigating some new investments for the second half of the year, the net debt position at year-end 2014 is expected to remain below that of year-end 2013.
The order book was kept at a high level and amounted to 2,805 million euros at the end of June 2014. New orders were added during 2014 from various parts of the world and sectors, such as the deepening of the port in Sepetiba (Rio de Janeiro, Brazil), a new LNG terminal on the Yamal peninsula (Russia), and maintenance dredging along the Panama Canal, in Dhamra (India), Tema and Takoradi (Ghana). In Vietnam, the second phase of the Soai Rap project was officially opened. A length of 54 km was dredged to a depth of 9.5 metres.
Tideway won contracts for cable protection works in Canada and for rock dumping in China.
In the first half of 2014, GeoSea installed the foundations for the Westermost Rough wind farm (210 MW), 9 km off the coast of Hull (United Kingdom), and completed works on the Northwind (Belgium), Amrumbank West and Butendiek (Germany) wind farms.
(1) Following the introduction of the new accounting standards IFRS10 and IFRS11, group companies jointly controlled by DEME are accounted for using the equity method with effect from 1 January 2014.
(2) In this presentation, the group companies that are jointly controlled by DEME are still proportionally integrated. Although this is not in accordance with the new IFRS10 and IFRS11 accounting standards, it nevertheless gives a more complete picture of the operations and assets/liabilities of those companies. In the equity accounting as applied under (1), the contribution of the group companies is summarized under one single item on the balance sheet and in the income statement.
DEME - Pallieter on the Seine (France)
| (€ mio) | Turnover | Net result | ||
|---|---|---|---|---|
| 1H14 | 1H13 | 1H14 | 1H13 | |
| Construction | 427.3 | 337.7 | 0.1 | -9.0 |
| Civil engineering | 59.3 | 68.8 | - | - |
| Buildings Benelux | 275.9 | 222.5 | - | - |
| Buildings internationaal | 92.1 | 46.4 | - | - |
| Rail & Road | 51.1 | 44.2 | 1.2 | 0.8 |
| Multitechnics | 86.2 | 77.7 | 0.9 | -6.9 |
| Real Estate | 3.9 | 3.7 | -0.1 | 0.0 |
| PPS-Concessions | 0.3 | 0.6 | 0.0 | 2.1 |
| Holding | -7.6 | 7.8 | -1.2 | -4.0 |
| Total | 561.2 | 471.7 | 0.9 | -17.0 |
The turnover reported by CFE (AvH 60.40%) for the first six months of 2014 increased to 561.2 million euros (excluding the contributions of DEME and Rent-A-Port group, which are shown elsewhere). This increase (+19% compared to 471.7 million euros at 30/06/2013) is the result of a significantly higher level of construction activity, both in the Benelux area and internationally (Poland, Chad), and despite decreasing volumes in civil engineering. The rail & road and multitechnics activities also showed turnover increases by more than 10% over the previous year.
Despite problems at a Nigerian site, CFE achieved a substantial improvement in the operating result of its construction activity, which became positive again. The rail & road and multitechnics divisions witnessed a substantial increase in operating result.
The order book (excl. DEME) decreased to 1,116 million euros, compared to 1,339 million euros at year-end 2013. This decrease, which should also be seen in the light of an exceptionally high order book for buildings at year-end 2013, is primarily due to difficult market conditions in civil engineering and a shrinking order book in Africa following the sale of a contract in Chad.
The contribution of CFE (excl. DEME and Rent-A-Port/Rent-A-Port Energy) to the consolidated result of AvH includes a positive
CFE was selected by the City of Brussels as co-developer of the NEO 1 project. This mixed project comprises 590 residential units, two day nurseries, 3,500 m² of office space, a retirement home and a 112,000 m² leisure, catering and retail complex: the 'Mall of Europe'.
At the beginning of July, CLI (CFE), Immobel and Besix Red sold the Kons Gallery in Luxembourg to Axa Belgium for a total price of around 150 million euros (of which 33.3% for CLI).
A.A. Van Laere (AvH 100%) achieved again a high turnover level in 2014, as opposed to the first months of 2013 that were characterized by an exceptionally long winter. The turnover for the first six months amounted to 88.3 million euros, compared to 48.8 million euros last year. The group recorded a net profit of 1.0 million euros, compared to a net loss of 0.5 million euros in 1H13.
The order book amounted to 239 million euros at the end of June 2014, compared to 169 million euros at year-end 2013.
Rent-A-Port (AvH 72.18%) reported a turnover of 2.2 million euros in 1H14, which is less than in 1H13 (4.7 million euros). 2014 is a transitional year for the project in Dinh Vu (Vietnam), pending the expansion to 1,600 hectares that is planned by the end of the year.
Delen Investments and Bank J.Van Breda & Co performed well again and were both able to realize a further growth in assets under management.
Contribution to the AvH consolidated net result
The assets under management of the Delen Investments group (AvH 78.75%) attained a record level of 31,492 million euros at the end of June 2014, of which 21,703 million euros at Delen Private Bank and 9,789 million euros at JM Finn & Co. The vigorous growth over year-end 2013 (29,536 million euros) is the result of a positive stock market and exchange rate effect and of a persistently high net inflow of assets.
The gross revenues increased to 137.0 million euros (1H13: 127.9 million euros), primarily thanks to the higher level of assets under management. The cost-income ratio remained highly competitive at 53.4% (41.0% for Delen Private Bank, 81.4% for JM Finn & Co). The net profit amounted to 39.6 million euros at the end of June 2014 (compared to 39.4 million euros in 1H13), including the 3.3 million euro contribution of JM Finn & Co, and was influenced by non-recurrent elements connected with obligations undertaken in the context of the acquisition of JM Finn & Co and by the £/€ exchange rate effect on them.
The consolidated equity (after dividend payment) of Delen Investments stood at 477.6 million euros at the end of the first half of
| (€ mio) | 1H14 | 1H13 |
|---|---|---|
| Gross revenues | 137.0 | 127.9 |
| Net result | 39.6 | 39.4 |
| Equity | 477.6 | 448.8 |
| Assets under management |
31,492 | 27,103 |
| Core Tier 1 capital ratio (%) |
24.8 | 24.9 |
| Cost - income ratio (%) |
53.4 | 53.5 |
31,492
Delen Private Bank (Antwerp)
Delen Investments: Assets under management Discretionary mandates
2014 (compared to 464.1 million euros at 31 December 2013). The Core Tier1 capital ratio stood at 24.8% and is well above the industry average.
Bank J.Van Breda & C° (AvH 78.75%), too, reported increased commercial volumes. The client assets increased to 9.6 billion euros (9.0 billion euros at year-end 2013), of which 3.8 billion euros client deposits and 5.8 billion euros entrusted funds. Of these, 3.3 billion euros is managed by Delen Private Bank. Private lending, too, increased further to 3.5 billion euros, while provisions for loan losses remained exceptionally low (0.02%).
The bank realized a consolidated net profit of 17.0 million euros in the first half of 2014. The higher result for the same period last year (17.9 million euros) had been influenced by substantial capital gains on the investment portfolio and by positive hedging results (net effect of 2.3 million euros). The cost-income ratio increased to 60.1% (1H13: 56.5%).
The equity (part of the group) increased from 448 million euros at year-end 2013 to 455 million euros and, as in previous years, was not adversely affected by impairments on financial instruments. Bank J.Van Breda & C° is entirely client-driven in its activities and results, and has extremely solid ratios with a financial leverage (equity-to-assets ratio) of 10.3 and a Core Tier1 capital ratio of 15.0%.
Bank J.Van Breda & C°
| (€ mio) | 1H14 | 1H13 |
|---|---|---|
| Bank product | 60.3 | 60.6 |
| Net result | 17.0 | 17.9 |
| Equity | 455.2 | 430.9 |
| Entrusted funds | 5,766 | 4,976 |
| Client deposits | 3,800 | 3,621 |
| Private loans | 3,536 | 3,409 |
| Core Tier 1 capital ratio (%) |
15.0 | 14.3 |
| Cost - income ratio (%) |
60.1 | 56.5 |
Bank J.Van Breda & C° (Antwerp)
(1) Including ABK (since 2011) and Van Breda Car Finance
The sale by Extensa of the building for the Brussels Department of Environment ensured a significant increase in the result and a positive contribution from the Real Estate, Leisure & Senior Care segment.
Contribution to the AvH consolidated net result
Leasinvest Real Estate (LRE, AvH 30.01%) reported a strong start to the year. The fair value of the real estate portfolio, including project developments, stood at 709 million euros at the end of June (compared to 598 million euros at the end of June 2013 and 718 million euros at year-end 2013). The decrease on the year-end figure is due to the sale of the office building on Louizalaan 66 in Brussels and of the semi-industrial building in Meer. Those sales are in line with the strategy of divesting smaller, nonstrategic properties.
The rental income increased to 25.2 million euros, an increase by 21% over the same period last year (20.8 million euros) or by 10% at constant portfolio. This development is primarily the result of the investments made in 2013 in the Knauf PommerLRE: Real estate portfolio
loch shopping centre and in Hornbach. The average duration of the portfolio was 5.0 years (1H13: 4.4 years) at a virtually constant occupancy rate of 96.3%. The rental yield, calculated on the fair value, stood at 7.28% (1H13: 7.36%).
The net result increased to 13.5 million euros (1H13: 13.0 million euros), mainly as a result of the higher rental income, and partially offset by a negative impact from the fair value of financial assets and liabilities.
At the end of June 2014, the equity amounted to 324.2 million euros (compared to 335.3 million euros at year-end 2013). The decrease is due in part to the dividend distribution for 2013. The debt ratio remained virtually stable at 53.8%.
Leasinvest Real Estate - Royal20 (Luxembourg)
LRE: Portfolio in operation: 32 sites - 418,110 m2
| (€ mio) | 1H14 | 1H13 |
|---|---|---|
| Real estate portfolio fair value (€ mio) |
708.8 | 598.1 |
| Rental yield (%) | 7.28 | 7.36 |
| Occupancy rate (%) |
96.3 | 95.9 |
Leasinvest Real Estate - Knauf Pommerloch shopping centre (Luxembourg) Anima Care - Zemst
Extensa - Brussels Department of Environment
Extensa (AvH 100%) realized a significant improvement in its results with the completion of the building for the Brussels Department of Environment on the Tour&Taxis site and its sale at the beginning of July to the Integrale insurance company for the sum of 72 million euros, based on a yield of approx. 5%.
In May, the Flemish Government decided to award the contract for the construction of a new building of 45,737 m² for the centralized accommodation of the Flemish civil service, coupled with a long-term lease, to Project T&T (Extensa 50%). This project is scheduled for completion by 2017, subject to all the necessary permits being obtained.
In Luxembourg, the financial closing was finalized and allows the actual start of the first phase of the residential development (70,000 m²) as part of the Grossfeld project (Cloche d'Or) during the second half of 2014.
The result of Groupe Financière Duval (AvH 41.14%) was adversely affected during the first six months not only by the seasonal pattern of tourism activities, but also by a delay in the property development activity. The retirement homes segment witnessed a vigorous growth with the new residences that were opened in 2013. The parking activity Park'A was disposed of in April. The turnover amounted to 193.7 million euros (1H13: 218.5 million euros), while the net result came to -13.8 million euros (1H13: -11.1 million euros).
Anima Care (AvH 100%) continued its growth in 2014 and realized a turnover of 17.9 million euros (1H13: 11.3 million euros). Despite the start-up losses associated with the newly built residences, the net result remained positive (0.2 million euros versus 0.6 million euros in 1H13).
In April, the residential care centre 'Zonnesteen' in Zemst (93 beds and 23 service flats) was started up. Work on the other new construction projects is going ahead according to schedule, and the residential care centre in Haut-Ittre (127 beds and 36 service flats) will be brought into use at the end of September. As at 30 June 2014, Anima Care had 922 retirement home beds and 78 service flats in operation, spread over 11 residential care centres.
Favourable weather conditions boosted Sipef's production and its contribution to the group result.
Contribution to the AvH consolidated net result
At the Sipef plantation group (AvH 26.78%), favourable agronomic conditions boosted palm oil production (+9%) on the mature plantations as well as at the young plants. Palm oil production in the first half of 2014 totalled 131,415 tonnes. The rubber operations, too, witnessed a positive trend in output. In combination with higher sales prices for palm oil, this resulted in a turnover increase to 157.7 million USD (1H13: 149.5 million USD).
At Sipef, as a result of the implementation of the new IFRS11 standard, the stake in Agro Muko, in which Sipef holds a 45% interest and which is governed by Sipef, is accounted for using the equity method with effect from 2014 (previously proportionally). The 1H13 figures were restated to allow comparison with the figures for 1H14.
Thanks to the higher volumes, better sales prices for palm oil and a depreciation of the local currencies, the net result increased significantly (+60%) from 20.5 million USD to 32.7 million USD in the first half of 2014.
Sipef continued to steadily expand its plantation operations with the completion in 2014 of two palm oil extraction plants in Indonesia and Papua New Guinea, and the planting of oil palms in Papua New Guinea and as part of the new project in South Sumatra. Taking into account the positive production outlook and the forward sales, Sipef expects the 2014 result to be higher than in 2013.
Sipef
| Sipef - Harvested palm fruits | ||
|---|---|---|
| (USD mio) | 1H14 | 1H13 |
|---|---|---|
| Group production (in T) (1) |
||
| Palm oil | 131,415 | 120,616 |
| Rubber | 5,547 | 5,276 |
| Tea | 1,369 | 1,400 |
| Turnover | 157.7 | 149.5 |
| EBIT | 36.3 | 28.9 |
| Net result | 32.7 | 20.5 |
| Equity | 526.1 | 472.4 |
| Net cash position | -20.1 | -12.0 |
(1) Own + outgrowers
Sipef - Plantation with young, not yet mature oilpalms Sipef - New UMW (Umbul Mas Wisesa) oil
extraction mill
Fierce competition had a considerable negative impact on the results of Sagar Cements (AvH 18.55%) in the first half of the year. Despite the fact that volumes were kept up, the turnover decreased to 33.8 million euros (1H13: 35.8 million euros). Due to the large pressure on prices, the net result decreased to -2.4 million euros (1H13: -1.2 million euros).
In July, Sagar Cements decided to sell its 47% stake in the joint venture Vicat Sagar Cement to the Vicat group for a total price of Rs 435 crore (around 53 million euros). In doing so, Sagar Cements increased the amount invested in that joint venture since 2008 fivefold.
Oriental Quarries & Mines (AvH 50%) managed to successfully complete the transfer to the new site in Bilaua, doubling sales volumes and improving profitability in the process. The turnover amounted to 3.9 million euros (1H13: 1.9 million euros), while the net result came to 0.4 million euros (1H13: -0.3 million euros).
Telemond Group (AvH 50%) experienced a lower order book during the first six months of 2014, causing a decrease in turnover to 38.6 million euros (1H13: 43.8 million euros) and in net result to 1.7 million euros (1H13: 3.0 million euros). Meanwhile, the group continues to invest in the development of its new site in Poland.
Oriental Quarries & Mines
A distinct, albeit early, improvement in results was recorded in the Development Capital segment. AvH realized a capital gain of 4.9 million euros on Sofinim's sale of its participation in NMC.
Contribution to the AvH consolidated net result
The comparison with the results at 30/06/2013 is distorted by the capital gain of 34.0 million euros that was realized in the first half of 2013 on the sale by Sofinim of its participation in Spano Group.
At the beginning of April, Distriplus (Sofinim 50%) reached an agreement with Standaard Boekhandel on the sale of the shares of Club. This transaction will yield considerable synergies for both retailers. Distriplus will now focus exclusively on the world of beauty (Di and Planet Parfum) and wants to speed up its development on this market in Belgium.
The shareholders of Euro Media Group (Sofinim 22%) received a binding offer in April 2014 from PAI Partners in view of the acquisition of a majority shareholding in Euro Media Group. This shareholder's change will not have an impact on the cash position of AvH, as Sofinim will maintain its shareholding percentage in the new shareholders' structure.
Sofinim sold its 30% stake in NMC at the end of June. Sofinim will receive 38 million euros in cash, which corresponds to a capital gain of around 6.6 million euros (AvH share: 4.9 million euros) and an IRR of 14.8% over 12 years. The closing of the transaction is expected at the beginning of October 2014.
The figures of Corelio (Sofinim 22%) in the first six months were to a considerable degree influenced by extraordinary elements: the provisions for the redundancy plan in the context of the establishment of Mediahuis, the capital gain on the sale of Editions de l'Avenir, and impairments recognized following the sale of HUMO and in the light of the planned entry of Telenet in the capital of De Vijver Media (subject to approval from the competition authority). Corelio recognized part of that in its 2013 figures. As AvH's annual figures for 2013 had already been communicated, AvH recognized this item in 1H14. In terms of circulation, the Mediahuis newspapers (De Standaard, Het Nieuwsblad, Gazet van Antwerpen, Belang van Limburg) held their own very well in a highly challenging market. Advertising income increased slightly in a highly competitive market.
Under the leadership of a new management team, Hertel (Sofinim 47.98%) achieved an encouraging increase in its result, albeit still negative due to restructuring costs and non-recurring elements in its offshore division.
Adjusted net asset value
| (€ mio) | 1H14 | 2013 |
|---|---|---|
| Sofinim | 495.2 | 493.2 |
| Unrealised capital gains Atenor |
10.6 | 8.2 |
| Market value Groupe Flo/Trasys |
9.8 | 10.0 |
| Total | 515.6 | 511.4 |
| Consolidated Income statement (by nature) (€ 1,000) | 1H14 | 1H13 |
|---|---|---|
| Revenue | 2,141,354 | 245,103 |
| Rendering of services | 27,028 | 19,108 |
| Lease revenue | 4,849 | 5,593 |
| Real estate revenue | 30,055 | 21,339 |
| Interest income - banking activities | 62,107 | 63,516 |
| Fees and commissions - banking activities | 17,801 | 15,514 |
| Revenue from construction contracts | 1,951,766 | 108,494 |
| Other operating revenue | 47,748 | 11,538 |
| Other operating income | 1,344 | 1,798 |
| Interest on financial fixed assets - receivables | 394 | 868 |
| Dividends | 858 | 880 |
| Government grants | 0 | 0 |
| Other operating income | 91 | 50 |
| Operating expenses (-) | -2,003,311 | -211,192 |
| Raw materials and consumables used (-) | -1,206,801 | -67,182 |
| Changes in inventories of finished goods, raw materials & consumables (-) | 1,890 | 842 |
| Interest expenses Bank J.Van Breda & C° (-) | -25,818 | -29,458 |
| Employee expenses (-) | -374,620 | -59,497 |
| Depreciation (-) | -115,084 | -6,183 |
| Impairment losses (-) | -130 | -1,221 |
| Other operating expenses (-) | -282,120 | -48,400 |
| Provisions | -628 | -93 |
| Profit (loss) on assets/liabilities designated at fair value through profit and loss | -780 | 423 |
| Development capital | 0 | 12 |
| Financial assets held for trading | 0 | 32 |
| Investment property | -780 | 379 |
| Profit (loss) on disposal of assets | 12,526 | 49,289 |
| Realised gain (loss) on intangible and tangible assets | 3,896 | 29 |
| Realised gain (loss) on investment property | 1,918 | 1,347 |
| Realised gain (loss) on financial fixed assets | 6,712 | 46,024 |
| Realised gain (loss) on other assets | 0 | 1,889 |
| Profit (loss) from operating activities | 151,133 | 85,421 |
| Finance income | 20,851 | 2,330 |
| Interest income | 7,693 | 1,641 |
| Other finance income | 13,158 | 689 |
| Finance costs (-) | -42,804 | -9,288 |
| Interest expenses (-) | -26,695 | -5,445 |
| Other finance costs (-) | -16,109 | -3,843 |
| Derivative financial instruments designated at fair value through profit and loss | -62 | 2,848 |
| Share of profit (loss) from equity accounted investments | 53,599 | 53,198 |
| Other non-operating income | 0 | 38 |
| Other non-operating expenses (-) | 0 | -23 |
| Profit (loss) before tax | 182,717 | 134,525 |
| Income taxes | -36,866 | -8,107 |
| Deferred taxes | 3,431 | -1,768 |
| Current taxes | -40,297 | -6,339 |
| Profit (loss) after tax from continuing operations | 145,851 | 126,418 |
| Profit (loss) after tax from discontinued operations | ||
| Profit (loss) of the period | 145,851 | 126,418 |
| Minority interests | 49,464 | 31,571 |
| Share of the group | 96,387 | 94,847 |
| EARNINGS PER SHARE (€) | ||
| 1. Basic earnings per share | ||
| 1.1. from continued and discontinued operations | 2.91 | 2.86 |
| 1.2. from continued operations | 2.91 | 2.86 |
| 2. Diluted earnings per share | ||
| 2.1. from continued and discontinued operations | 2.90 | 2.86 |
| 2.2. from continued operations | 2.90 | 2.86 |
The half-yearly financial report for the period 01/01/14-30/06/14, 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.
diversified group active in 5 key sectors: Infrastructure & Marine Engineering (DEME, one of the largest dredging companies in the world - CFE and A.A. Van Laere, two construction groups 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 J. Van Breda & C°, niche bank for entrepreneurs and liberal professions in Belgium), Real Estate, Leisure & Senior Care (Leasinvest Real Estate, a listed real-estate investment trust - Extensa, an important land and real estate developer focused on Belgium, Luxembourg and Central Europe), Energy & Resources (Sipef, an agro-industrial group in tropical agriculture) and Development Capital (Sofinim and GIB). In 2013, through its share in its participations (incl. CFE), the AvH group represented a turnover of 5.7 billion euro and employed 22.706 people. The group concentrates on a limited number of strategic participations with significant potential for growth. AvH is quoted on the BEL20 index, the Private Equity NXT index of Euronext Brussels and the European DJ Stoxx 600.
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.
For further information please contact:
Luc Bertrand CEO - President Executive Committee Tel. +32.3.897.92.42
Jan Suykens Member Executive Committee Tel. +32.3.897.92.36
Tom Bamelis Member Executive Committee Tel. +32.3.897.92.42
e-mail: [email protected]
| 28 August 2015 | Half-year results 2015 |
|---|---|
| 26 May 2015 | Ordinary general meeting |
| 20 May 2015 | Interim statement Q1 2015 |
| 27 Februari 2015 | Annual results 2014 |
| 18 November 2014 | Interim statement Q3 2014 |
Ackermans & van Haaren NV Begijnenvest 113 2000 Antwerp, Belgium Tel. +32 3 231 87 70 [email protected] - www.avh.be
Antwerp, 28 August 2014
The half-yearly financial report was issued in accordance with article 13 of the Royal Decree of 14 November 2007.
This report contains:
| 11. | Events after balance sheet date |
|---|---|
| 10. | Overview of the major related party transactions |
| 9. | Main risks and uncertainties |
| 8. | Explanatory notes to the fi nancial statements |
| 7. | Restated fi nancial statements 30-06-2013 |
| Consolidated cash flow statement per segment | |
| Consolidated balance sheet per segment | |
| Consolidated income statement per segment | |
| 6. | Segment reporting |
| 5. | Statement of changes in consolidated equity |
| 4. | Consolidated cash fl ow statement |
| 3. | Consolidated balance sheet |
| 2. | Consolidated statement of comprehensive income |
| 1. | Consolidated income statement |
| (€ 1,000) | 30-06-2014 | 30-06-2013 * |
|---|---|---|
| Revenue | 2,141,354 | 245,103 |
| Rendering of services | 27,028 | 19,108 |
| Lease revenue | 4,849 | 5,593 |
| Real estate revenue | 30,055 | 21,339 |
| Interest income - banking activities | 62,107 | 63,516 |
| Fees and commissions - banking activities | 17,801 | 15,514 |
| Revenue from construction contracts | 1,951,766 | 108,494 |
| Other operating revenue | 47,748 | 11,538 |
| Other operating income | 1,344 | 1,798 |
| Interest on fi nancial fi xed assets - receivables | 394 | 868 |
| Dividends | 858 | 880 |
| Government grants | 0 | 0 |
| Other operating income | 91 | 50 |
| Operating expenses (-) | -2,003,311 | -211,192 |
| Raw materials and consumables used (-) | -1,206,801 | -67,182 |
| Changes in inventories of fi nished goods, raw materials & consumables (-) | 1,890 | 842 |
| Interest expenses Bank J.Van Breda & C° (-) | -25,818 | -29,458 |
| Employee expenses (-) | -374,620 | -59,497 |
| Depreciation (-) | -115,084 | -6,183 |
| Impairment losses (-) | -130 | -1,221 |
| Other operating expenses (-) | -282,120 | -48,400 |
| Provisions | -628 | -93 |
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss | -780 | 423 |
| Development capital | 0 | 12 |
| Financial assets held for trading | 0 | 32 |
| Investment property | -780 | 379 |
| Profi t (loss) on disposal of assets | 12,526 | 49,289 |
| Realised gain (loss) on intangible and tangible assets | 3,896 | 29 |
| Realised gain (loss) on investment property | 1,918 | 1,347 |
| Realised gain (loss) on fi nancial fi xed assets | 6,712 | 46,024 |
| Realised gain (loss) on other assets | 0 | 1,889 |
| Profi t (loss) from operating activities | 151,133 | 85,421 |
| Finance income | 20,851 | 2,330 |
| Interest income | 7,693 | 1,641 |
| Other fi nance income | 13,158 | 689 |
| Finance costs (-) | -42,804 | -9,288 |
| Interest expenses (-) | -26,695 | -5,445 |
| Other fi nance costs (-) | -16,109 | -3,843 |
| Derivative fi nancial instruments designated at fair value through profi t and loss | -62 | 2,848 |
| Share of profi t (loss) from equity accounted investments | 53,599 | 53,198 |
| Other non-operating income | 0 | 38 |
| Other non-operating expenses (-) | 0 | -23 |
| Profi t (loss) before tax | 182,717 | 134,525 |
| Income taxes | -36,866 | -8,107 |
| Deferred taxes | ||
| 3,431 | -1,768 | |
| Current taxes | -40,297 | -6,339 |
| Profi t (loss) after tax from continuing operations | 145,851 | 126,418 |
| Profi t (loss) after tax from discontinued operations | ||
| Profi t (loss) of the period | 145,851 | 126,418 |
| Minority interests | 49,464 | 31,571 |
| Share of the group | 96,387 | 94,847 |
| EARNINGS PER SHARE (€) | ||
| 1. Basic earnings per share | ||
| 1.1. from continued and discontinued operations | 2.91 | 2.86 |
| 1.2. from continued operations | 2.91 | 2.86 |
| 2. Diluted earnings per share | ||
| 2.1. from continued and discontinued operations | 2.90 | 2.86 |
| 2.2. from continued operations | 2.90 | 2.86 |
*We refer to Section 7 for more details regarding the Restated fi nancial statements 30-06-2013.
| (€ 1,000) | 30-06-2014 | 30-06-2013 * |
|---|---|---|
| Profi t (loss) of the period | 145,851 | 126,418 |
| Minority interests | 49,464 | 31,571 |
| Share of the group | 96,387 | 94,847 |
| Other comprehensive income | 2,966 | 6,614 |
| Elements to be reclassifi ed to profi t or loss in subsequent periods | ||
| Changes in revaluation reserve: fi nancial assets available for sale | 10,946 | -1,934 |
| Changes in revaluation reserve: hedging reserves | -10,686 | 13,106 |
| Changes in revaluation reserve: translation differences | 6,830 | -5,510 |
| Elements not to be reclassifi ed to profi t or loss in subsequent periods | ||
| Changes in revaluation reserve: actuarial gains (losses) defi ned benefi t pension plans | -4,124 | 952 |
| Total comprehensive income | 148,817 | 133,032 |
| Minority interests | 47,459 | 35,149 |
| Share of the group | 101,358 | 97,882 |
*We refer to Section 7 for more details regarding the Restated fi nancial statements 30-06-2013.
The subdivision by segment of the share of minority interests in the result of the financial year is shown on pages 25 and 27 of this report. It should be noted that, following the acquisition of control over CFE (and therefore over DEME) at the end of 2013, the results of the holdings in CFE and DEME are fully consolidated with effect from the financial year 2014, including the minority interests. In the half-year financial statements of 30/06/2013, the holding in DEME was still reported using the equity method (without minority interests) and AvH was not yet a shareholder of CFE.
The most significant results of minority interests are realized at CFE/DEME, Finaxis, Leasinvest Real Estate and Sofinim.
The increase in the fair value of financial assets available for sale had a positive impact of 10.9 million euros on the other comprehensive income at 30 June 2014. The main contribution comes from the increase in fair value of the Belfimas shares by 2.3 million euros (in line with the evolution of the AvH share price), the portfolio of Leasinvest Real Estate (consisting primarily of Retail Estates shares) by 6.6 million euros, and the investment portfolio held by Bank J.Van Breda & C° by 2.4 million euros.
The hedging reserves, arising from fluctuations in the fair value of hedging instruments, made a negative contribution of 10.7 million euros to the other comprehensive income in the first half of 2014. This figure is largely accounted for (11.1 million euros) by the negative evolution in the value of the instruments employed by Leasinvest Real Estate to hedge against a rise in interest rates.
Translation differences stem from exchange rate fluctuations. In the first half of 2014, this gave an unrealized positive translation difference of 6.8 million euros, deriving primarily from group companies carrying out major activities outside the euro zone (DEME, Sipef, Delen Investments, etc).
Since the introduction of the amended IAS 19 accounting standard in 2013, actuarial gains and losses on certain pension plans are directly recognized in the other comprehensive income. The main negative adjustments as at 30/06/2014 concern DEME (2.7 million euros) and CFE (0.8 million euros).
| (€ 1,000) | 30-06-2014 | 31-12-2013 * |
|---|---|---|
| I. Non-current assets | 7,035,202 | 7,016,929 |
| Intangible assets | 30,480 | 33,437 |
| Goodwill | 434,465 | 436,967 |
| Tangible assets | 1,638,591 | 1,680,703 |
| Land and buildings | 201,189 | 188,853 |
| Plant, machinery and equipment | 1,391,718 | 1,446,946 |
| Furniture and vehicles | 21,075 | 23,048 |
| Other tangible assets | 4,128 | 2,858 |
| Assets under construction and advance payments | 20,110 | 18,606 |
| Operating lease - as lessor (IAS 17) | 371 | 392 |
| Investment property | 698,824 | 700,247 |
| Participations accounted for using the equity method | 1,125,358 | 1,136,991 |
| Financial fi xed assets | 281,424 | 299,280 |
| Available for sale fi nancial fi xed assets | 94,043 | 83,184 |
| Receivables and warranties | 187,381 | 216,096 |
| Non-current hedging instruments | 2,104 | 2,340 |
| Amounts receivable after one year | 151,886 | 122,010 |
| Trade receivables | 44 | 44 |
| Finance lease receivables | 112,971 | 113,106 |
| Other receivables | 38,871 | 8,860 |
| Deferred tax assets* | 137,995 | 138,663 |
| Banks - receivables from credit institutions and clients after one year | 2,534,076 | 2,466,291 |
| II. Current assets | 4,072,292 | 3,939,559 |
| Inventories | 146,210 | 137,466 |
| Amounts due from customers under construction contracts | 221,118 | 177,964 |
| Investments | 689,402 | 665,262 |
| Available for sale fi nancial assets | 689,389 | 664,908 |
| Financial assets held for trading | 13 | 354 |
| Current hedging instruments | 3,959 | 12,150 |
| Amounts receivable within one year | 1,387,710 | 1,239,296 |
| Trade debtors | 1,117,888 | 1,101,082 |
| Finance lease receivables | 43,735 | 42,007 |
| Other receivables | 226,086 | 96,207 |
| Current tax receivables | 7,058 | 1,782 |
| Banks - receivables from credit institutions and clients within one year | 950,032 | 903,709 |
| Banks - loans and advances to banks | 80,748 | 59,706 |
| Banks - loans and receivables (excluding leases) | 860,725 | 841,457 |
| Banks - cash balances with central banks | 8,559 | 2,546 |
| Geldmiddelen en kasequivalenten | 617,644 | 767,009 |
| Time deposits for less than three months | 121,849 | 115,192 |
| Cash | 495,795 | 651,817 |
| Deferred charges and accrued income | 49,161 | 34,921 |
| III. Assets held for sale | 3,809 | 11,544 |
| TOTAL ASSETS | 11,111,303 | 10,968,032 |
*The breakdown of deferred taxes by entity of DEME was restated (effect is limited to an increase in the balance sheet items 'Deferred tax assets and liabilities' to the amount of 80 million euros).
| Consolidated balance sheet - Equity and liabilities | ||
|---|---|---|
| (€ 1,000) | 30-06-2014 | 31-12-2013 * |
| I. Total equity | 3,338,760 | 3,277,362 |
| Equity - group share | 2,293,654 | 2,251,539 |
| Issued capital | 113,907 | 113,907 |
| Share capital Share premium |
2,295 111,612 |
2,295 111,612 |
| Consolidated reserves | 2,177,342 | 2,140,707 |
| Revaluation reserves | 20,587 | 15,616 |
| Financial assets available for sale | 45,641 | 39,780 |
| Hedging reserves | -9,555 | -6,361 |
| Actuarial gains (losses) defi ned benefi t pension plans Translation differences |
-6,273 -9,225 |
-3,582 -14,220 |
| Treasury shares (-) | -18,183 | -18,692 |
| Minority interests | 1,045,106 | 1,025,823 |
| II. Non-current liabilities | 2,409,518 | 2,352,656 |
| Provisions | 97,865 | 81,388 |
| Pension liabilities | 49,077 | 44,535 |
| Deferred tax liabilities* | 107,561 | 118,182 |
| Financial debts | 1,131,814 | 1,168,098 |
| Bank loans | 705,627 | 838,211 |
| Bonds | 398,037 | 295,405 |
| Subordinated loans | 3,068 | 3,173 |
| Finance leases | 23,798 | 26,746 |
| Other fi nancial debts | 1,283 | 4,563 |
| Non-current hedging instruments | 52,673 | 38,933 |
| Other amounts payable after one year | 89,365 | 107,411 |
| Banks - non-current debts to credit institutions, clients & securities | 881,163 | 794,108 |
| Banks - deposits from credit institutions | 635 | 832 |
| Banks - deposits from clients | 814,682 | 715,368 |
| Banks - debt certifi cates including bonds | 8 | 8 |
| Banks - subordinated liabilities | 65,838 | 77,900 |
| III. Current liabilities | 5,363,025 | 5,338,014 |
| Provisions | 33,998 | 34,658 |
| Pension liabilities | 241 | 208 |
| Financial debts | 589,563 | 596,218 |
| Bank loans | 316,029 | 212,091 |
| Bonds | 0 | 100,000 |
| Finance leases | 4,833 | 5,393 |
| Other fi nancial debts | 268,700 | 278,733 |
| Current hedging instruments | 18,424 | 18,376 |
| Amounts due to customers under construction contracts | 246,257 | 194,181 |
| Other amounts payable within one year | 1,322,751 | 1,295,027 |
| Trade payables | 1,096,142 | 1,052,723 |
| Advances received on construction contracts | 1,727 | 1,837 |
| Amounts payable regarding remuneration and social security | 135,136 | 154,750 |
| Other amounts payable | 89,746 | 85,717 |
| Current tax payables | 63,475 | 16,701 |
| Banks - current debts to credit institutions, clients & securities | 3,040,264 | 3,123,241 |
| Banks - deposits from credit institutions | 11,147 | 105,488 |
| Banks - deposits from clients | 2,902,014 | 2,883,169 |
| Banks - debt certifi cates including bonds | 110,139 | 128,011 |
| Banks - subordinated liabilities | 16,964 | 6,573 |
| Accrued charges and deferred income | 48,052 | 59,403 |
| IV. Liabilities held for sale | 0 | 0 |
| TOTAL EQUITY AND LIABILITIES | 11,111,303 | 10,968,032 |
*The breakdown of deferred taxes by entity of DEME was restated (effect is limited to an increase in the balance sheet items 'Deferred tax assets and liabilities' to the amount of 80 million euros).
| (€ 1,000) | 30-06-2014 | 30-06-2013 * |
|---|---|---|
| I. Cash and cash equivalents, opening balance | 767,009 | 171,784 |
| Profi t (loss) from operating activities | 151,133 | 85,421 |
| Reclassifi cation 'Profi t (loss) on disposal of assets' to cash fl ow from divestments | -12,526 | -49,289 |
| Dividends from participations accounted for using the equity method | 27,753 | 25,693 |
| Other non-operating income (expenses) | 0 | 15 |
| Income taxes | -28,683 | -8,107 |
| Non-cash adjustments | ||
| Depreciation | 115,084 | 6,183 |
| Impairment losses | 74 | 1,215 |
| Share based payment | 181 | 646 |
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss | 780 | -423 |
| (Decrease) increase of provisions | -462 | -50 |
| (Decrease) increase of deferred taxes | -3,431 | 1,768 |
| Other non-cash expenses (income) | 2,590 | 4,113 |
| Cash fl ow | 252,493 | 67,185 |
| Decrease (increase) of working capital | -198,938 | 59,709 |
| Decrease (increase) of inventories and construction contracts | -36,551 | -108 |
| Decrease (increase) of amounts receivable | -123,628 | -10,777 |
| Decrease (increase) of receivables from credit institutions and clients (banks) | -108,144 | -106,978 |
| Increase (decrease) of liabilities (other than fi nancial debts) | 84,898 | -24,163 |
| Increase (decrease) of debts to credit institutions, clients & securities (banks) | 3,378 | 203,492 |
| Decrease (increase) other | -18,891 | -1,758 |
| CASH FLOW FROM OPERATING ACTIVITIES | 53,555 | 126,894 |
| Investments | -451,394 | -209,587 |
| Acquisition of intangible and tangible assets Acquisition of investment property |
-70,875 | -18,072 |
| Acquisition of fi nancial fi xed assets | -1,304 -5,649 |
-3,567 -49,344 |
| New amounts receivable | -11,897 | -6,281 |
| Acquisition of investments | -361,670 | -132,323 |
| Divestments | 394,932 | 259,129 |
| Disposal of intangible and tangible assets | 6,163 | 252 |
| Disposal of investment property | 11,906 | 25,926 |
| Disposal of fi nancial fi xed assets | 38,384 | 105,796 |
| Reimbursements of amounts receivable | 1 | 23,046 |
| Disposal of investments | 338,479 | 104,110 |
| CASH FLOW FROM INVESTING ACTIVITIES | -56,462 | 49,542 |
| Financial operations | ||
| Interest received | 7,693 | 1,549 |
| Interest paid | -26,695 | -4,882 |
| Other fi nancial income (costs) | -3,215 | -3,247 |
| Decrease (increase) of treasury shares | 357 | -947 |
| (Decrease) increase of fi nancial debts | -46,878 | -54,860 |
| Distribution of profi ts | -56,361 | -55,349 |
| Dividends paid to minority interests | -27,860 | -15,536 |
| CASH FLOW FROM FINANCIAL ACTIVITIES | -152,959 | -133,273 |
| II. Net increase (decrease) in cash and cash equivalents | -155,866 | 43,163 |
| Change in consolidation scope or method | ||
| Capital increase Leasinvest Real Estate (minorities) | 2,389 | 30 41,976 |
| Impact of exchange rate changes on cash and cash equivalents | 4,112 | -313 |
| III. Cash and cash equivalents - ending balance | 617,644 | 256,641 |
*We refer to Section 7 for more details regarding the Restated fi nancial statements 30-06-2013.
Other (a.o. changes in consol. scope /
| Revaluation reserves | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| (€ 1,000) | Issued capital & share premium |
Consolidated reserves | available for sale Financial assets |
Hedging reserves | defi ned benefi t pension Actuarial gains (losses) plans |
Translation differences | Treasury shares | Equity - group share | Minority interests | Total equity |
| Opening balance, 1 january 2013 | 113,907 1,905,872 | 33,626 | -28,122 | -5,196 | -165 | -16,655 2,003,268 | 510,964 | 2,514,233 | ||
| Profi t | 94,847 | 94,847 | 31,571 | 126,418 | ||||||
| Non-realised results | -1,227 | 7,962 | 946 | -4,646 | 3,036 | 3,579 | 6,614 | |||
| Total of realised and unrealised results |
0 | 94,847 | -1,227 | 7,962 | 946 | -4,646 | 0 | 97,883 | 35,149 | 133,032 |
| Distribution of dividends of the previous fi nancial year |
-55,349 | -55,349 | -15,537 | -70,887 | ||||||
| Operations with treasury shares | -274 | -274 | -274 | |||||||
| Other (a.o. changes in consol. scope / benefi cial interest %) |
-4,121 | -4,121 | 40,797 | 36,675 | ||||||
| Ending balance, 30 June 2013 | 113,907 1,941,248 | 32,399 | -20,159 | -4,250 | -4,811 | -16,929 2,041,407 | 571,372 | 2,612,779 | ||
| Revaluation reserves | ||||||||||
| (€ 1,000) | Issued capital & share premium |
Consolidated reserves | Financial assets available for sale |
Hedging reserves | defi ned benefi t pension Actuarial gains (losses) plans |
Translation differences | Treasury shares | Equity - group share | Minority interests | Total equity |
| Opening balance, 1 january 2014 | 113,907 2,140,707 | 39,780 | -6,361 | -3,582 | -14,220 | -18,692 2,251,539 | 1,025,823 | 3,277,362 | ||
| Profi t | 96,387 | 96,387 | 49,464 | 145,851 | ||||||
| Non-realised results | 5,861 | -3,194 | -2,691 | 4,995 | 4,971 | -2,005 | 2,966 | |||
| Total of realised and unrealised results |
0 | 96,387 | 5,861 | -3,194 | -2,691 | 4,995 | 0 | 101,358 | 47,459 | 148,817 |
| Distribution of dividends of the previous fi nancial year |
-56,361 | -56,361 | -27,860 | -84,221 | ||||||
The note on the revaluation reserves which, in accordance with IFRS rules, are recognized directly in the equity can be found under section 2 on page 19 of this report.
benefi cial interest %) -3,390 -3,390 -316 -3,706 Ending balance, 30 June 2014 113,907 2,177,342 45,641 -9,555 -6,273 -9,225 -18,183 2,293,654 1,045,106 3,338,760
During the first half of 2014, AvH sold 15,000 treasury shares as part of the stock option plan for the staff. As at 30 June 2014, a total of 365,000 stock options were outstanding. To hedge this commitment, AvH (together with subsidiary Brinvest) had 343,500 treasury shares in portfolio.
Furthermore, 313,589 AvH shares were bought and 309,836 sold during the first six months of 2014 as part of the agreement that AvH had concluded with Kepler Cheuvreux to support the liquidity of the AvH share. Those transactions are directed entirely independently by Kepler Cheuvreux, but as they are carried out on behalf of AvH, the net purchase of 3,753 AvH shares in this context has an impact on AvH's equity.
The item 'Other' in the statement of changes in consolidated equity contains a.o. -4.8 million euros representing the periodical value adjustment of the commitment which Delen Investments has undertaken to purchase the minority share in JM Finn & Co. The other changes represent movements in the equity of Corelio, Hertel and Groupe Financière Duval following adjustments to their group structure.
Segment 1 – Marine Engineering & Infrastructure: DEME (global integration 60.40%), CFE (global integration 60.40%), Rent-A-Port (global integration 72.18%), Rent-A-Port Energy (global integration 73.15%), Van Laere (global integration 100%) and NMP (global integration 75%)
Segment 2 – Private Banking: Delen Investments CVA (equity method 78.75%), Bank J.Van Breda & C° (global integration 78.75%), Finaxis (global integration 78.75%), Promofi (equity method 15%) and ASCO-BDM (equity method 50%)
Segment 3 – Real Estate, Leisure & Senior Care: Extensa (global integration 100%), Leasinvest Real Estate (global integration 30%), Holding Groupe Duval (equity method 50%), Groupe Financière Duval (equity method 41.1%) and Anima Care (global integration 100%)
Segment 4 – Energy & Resources: Sipef (equity method 26.8%), Telemond Holding (equity method 50%), Telehold (equity method 50%), Henschel Engineering (equity method 50%), AvH India Resources (global integration 100%), Sagar Cements (equity method 18.6%), Oriental Quarries and Mines (equity method 50%), Ligno Power (global integration 70%) and Max Green (equity method 18.9%)
Sofinim & subholdings (global integration 74%)
Participations accounted for using the equity method (percentages AvH share) : Atenor (8.0%), Axe Investments (35.8%), Amsteldijk Beheer (37%), Corelio (16.3%), Distriplus (37%), EMG (16.3%), Groupe Flo (23.6%), Hertel (35.5%), Manuchar (22.2%), MediaCore (36.9%), Trasys (41.9%), Turbo's Hoet Groep (37%)
Participations accounted for using global integration : Egemin (52.9%)
Segment 6 – AvH & subholdings: global integration and GIB (equity method 50%)
| (€ 1,000) | Segment 1 Marine Engineering & Infrastructure |
Segment 2 Private Banking |
Segment 3 Real Estate, Leisure & Senior Care |
Segment 4 Energy & Resources |
Segment 5 Development Capital |
Segment 6 AvH & subholdings |
Eliminations between segments |
30-06-2014 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1,946,512 | 85,552 | 50,204 | 148 | 58,889 | 2,314 | -2,266 | 2,141,354 |
| Rendering of services | 8,989 | 17,934 | 148 | 2,148 | -2,192 | 27,028 | ||
| Lease revenue | 3,990 | 859 | 4,849 | |||||
| Real estate revenue | 4,080 | 25,975 | 30,055 | |||||
| Interest income - banking activities | 62,107 | 62,107 | ||||||
| Fees and commissions - banking activities | 17,801 | 17,801 | ||||||
| Revenue from construction contracts | 1,891,558 | 2,674 | 57,534 | 1,951,766 | ||||
| Other operating revenue | 41,885 | 1,654 | 2,762 | 1,355 | 166 | -74 | 47,748 | |
| Other operating income | 44 | 160 | 0 | 0 | 234 | 1,717 | -811 | 1,344 |
| Interest on fi nancial fi xed assets - receivables | 44 | 200 | 361 | -210 | 394 | |||
| Dividends | 160 | 14 | 684 | 858 | ||||
| Government grants | 0 | |||||||
| Other operating income | 20 | 672 | -601 | 91 | ||||
| Operating expenses (-) | -1,848,275 | -62,584 | -29,527 | -118 | -58,894 | -6,779 | 2,866 | -2,003,311 |
| Raw materials and consumables used (-) | -1,173,147 | -4,602 | -29,051 | -1,206,801 | ||||
| Changes in inventories of fi nished goods, raw materials & consumables (-) |
2,060 | -18 | -152 | 1,890 | ||||
| Interest expenses Bank J.Van Breda & C° (-) | -25,818 | -25,818 | ||||||
| Employee expenses (-) | -320,172 | -20,102 | -13,069 | -20,057 | -1,220 | -374,620 | ||
| Depreciation (-) | -109,518 | -2,526 | -1,425 | -1,288 | -327 | -115,084 | ||
| Impairment losses (-) | 346 | -387 | -27 | -50 | -1 | -11 | -130 | |
| Other operating expenses (-) | -247,387 | -13,451 | -10,367 | -68 | -8,491 | -5,221 | 2,866 | -282,120 |
| Provisions | -457 | -300 | -18 | 147 | -628 | |||
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss |
0 | 0 | -780 | 0 | 0 | 0 | 0 | -780 |
| Financial assets held for trading | 0 | |||||||
| Investment property | -780 | -780 | ||||||
| Profi t (loss) on disposal of assets | 4,041 | 0 | 1,905 | 0 | 6,580 | 0 | 0 | 12,526 |
| Realised gain (loss) on intangible and tangible assets |
3,909 | -13 | 3,896 | |||||
| Realised gain (loss) on investment property | 1,918 | 1,918 | ||||||
| Realised gain (loss) on fi nancial fi xed assets | 132 | 6,580 | 6,712 | |||||
| Realised gain (loss) on other assets | 0 | |||||||
| Profi t (loss) from operating activities | 102,322 | 23,128 | 21,802 | 30 | 6,809 | -2,748 | -210 | 151,133 |
| Finance income | 17,905 | 18 | 2,460 | 5 | 548 | 118 | -203 | 20,851 |
| Interest income | 5,765 | 18 | 1,511 | 5 | 478 | 118 | -203 | 7,693 |
| Other fi nance income | 12,140 | 948 | 70 | 13,158 | ||||
| Finance costs (-) | -30,887 | 0 | -9,999 | 0 | -539 | -1,792 | 413 | -42,804 |
| Interest expenses (-) | -19,148 | -6,730 | -328 | -902 | 413 | -26,695 | ||
| Other fi nance costs (-) | -11,739 | -3,269 | -211 | -889 | -16,109 | |||
| Derivative fi nancial instruments designated at fair value through profi t and loss |
0 | 356 | -418 | 0 | 0 | 0 | -62 | |
| Share of profi t (loss) from equity accounted investments |
7,774 | 40,230 | -17 | 6,825 | -1,197 | -17 | 53,599 | |
| Other non-operating income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Other non-operating expenses (-) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profi t (loss) before tax | 97,114 | 63,732 | 13,828 | 6,859 | 5,621 | -4,438 | 0 | 182,717 |
| Income taxes | -28,209 | -7,179 | -806 | -8 | -621 | -44 | 0 | -36,866 |
| Deferred taxes | 4,669 | -1,335 | 491 | 0 | -355 | -38 | 3,431 | |
| Current taxes | -32,878 | -5,844 | -1,297 | -8 | -265 | -5 | -40,297 | |
| Profi t (loss) after tax from continuing operations |
68,905 | 56,554 | 13,022 | 6,851 | 5,000 | -4,481 | 0 | 145,851 |
| Profi t (loss) after tax from discontinued operations |
0 | 0 | 0 | 0 | 0 | 0 | 0 | |
| Profi t (loss) of the period | 68,905 | 56,554 | 13,022 | 6,851 | 5,000 | -4,481 | 0 | 145,851 |
| Minority interests | 26,687 | 11,940 | 9,443 | 0 | 1,395 | 0 | 49,464 | |
| Share of the group | 42,218 | 44,614 | 3,579 | 6,852 | 3,605 | -4,481 | 96,387 |
When comparing the income statement at 30/06/2014 with that of the previous year, account must be taken once again of the impact of the acquisition of control over CFE (and therefore over DEME, Rent-A-Port and Rent-A-Port Energy) which AvH effected at the end of 2013. As a result, the participating interests in those companies are fully consolidated in the half-year results of 2014, which was not the case at 30 June 2013.
The full consolidation of those interests led to an increase in profit from operating activities by 101.4 million euros for the "Marine Engineering & Infrastructure" segment. All holdings in this segment are fully consolidated with effect from 2014. The contribution of companies accounted for using the equity method is therefore limited to the holdings that are reported by DEME, CFE, Rent-A-Port, Van Laere and NMP using the equity method.
The operating result in the "Private Banking" segment is on the same level as the previous year, despite the absence of capital gains on the investment portfolio of Bank J.Van Breda & C° (1H 2013: 1.9 million euros).
The 4.2 million euro increase in operating result in the "Real Estate, Leisure & Senior Care" segment reflects the good business performance at Leasinvest Real Estate buoyed by the expansion of the real estate portfolio that was realized in previous periods.
In the "Development Capital" segment, the operating result of 6.8 million euros is substantially less than the previous year (46.4 million euros). This is explained by the capital gain of 46.0 million euros which Sofinim was able to realize in 2013 on the disposal of its stake in Spano. In 1H 2014, those capital gains amounted to 6.6 million euros (NMC).
Apart from the effect that has already been explained above as a result of the full consolidation of DEME, CFE, Rent-A-Port and Rent-A-Port Energy, no significant movements are to be reported in terms of financial results.
On balance, the contribution of companies accounted for using the equity method amounts to roughly the same (53.6 million euros) as the previous year. This is due to the impact of the CFE transaction at the end of 2013 on the consolidation methods applied to certain group companies, as well as to the improved results in the "Real Estate, Leisure & Senior Care" and "Development Capital" segments.
The increased tax expense is also explained by the above-mentioned change in consolidation method applied to DEME, among others, which means that the tax expense of those companies can now be seen in the consolidated financial statements of AvH, unlike the tax expense of the equity accounted companies which at 30/06/2014 still represent a contribution to the result (after tax) of 53.6 million euros.
With 37.8 million euros, DEME (AvH 60.4%) provided the largest contribution to this segment, which also includes the contributions of the fully consolidated holdings in CFE (60.4%), Rent-A-Port (72.2%), Rent-A-Port Energy (73.2%), Algemene Aannemingen Van Laere (100%) and Nationale Maatschappij der Pijpleidingen (75%).
Finaxis group (AvH 78.75%), which includes the contributions from Delen Investments and Bank J.Van Breda & C°, represents the lion's share of this segment. Bank J.Van Breda & C° was fully consolidated via Finaxis while the results of Delen Investments were processed in accordance with the equity accounting method. The insurance group ASCO-BDM (AvH 50%) was also entered in the books using the equity accounting method.
The real estate investment trust Leasinvest Real Estate - LRE (AvH 30.01%) is under the exclusive control of AvH and is therefore fully included in consolidation. In this segment also Extensa (AvH 100%), and Anima Care (AvH 100%) are fully consolidated while Groupe Financière Duval (AvH 41.1%) is entered in the books using the equity method.
Sipef (26.8%), Oriental Quarries & Mines (50%), Max Green (18.9%) and the Telemond group (50%) are all jointly controlled participations, and are therefore included according to the equity accounting method. The minority interest of 18.6% in Sagar Cements is also listed in this way in AvH's consolidated accounts.
AvH is active in "Development Capital" via Sofi nim (26% minority stake held by NPM-Capital) on the one hand, and via GIB (jointly controlled subsidiary with Nationale Portefeuille Maatschappij) on the other.
Besides operating expenses, the contribution of AvH & subholdings is to a large extent affected by the realization or not of capital gains on sales of shares and by transaction costs.
| (€ 1,000) | Segment 1 Marine Engineering & Infrastructure |
Segment 2 Private Banking |
Segment 3 Real Estate, Leisure & Senior Care |
Segment 4 Energy & Resources |
Segment 5 Development Capital |
Segment 6 AvH & subholdings |
Eliminations between segments |
30-06-2013 * |
|---|---|---|---|---|---|---|---|---|
| Revenue | 57,182 | 86,092 | 47,820 | 163 | 53,193 | 1,891 | -1,238 | 245,103 |
| Rendering of services | 7,107 | 11,341 | 163 | 1,647 | -1,149 | 19,108 | ||
| Lease revenue | 4,354 | 1,239 | 5,593 | |||||
| Real estate revenue | 165 | 21,174 | 21,339 | |||||
| Interest income - banking activities | 63,516 | 63,516 | ||||||
| Fees and commissions - banking activities | 15,514 | 15,514 | ||||||
| Revenue from construction contracts | 49,279 | 6,898 | 52,317 | 108,494 | ||||
| Other operating revenue | 631 | 2,708 | 7,167 | 876 | 245 | -89 | 11,538 | |
| Other operating income | 90 | 155 | 0 | 0 | 640 | 1,465 | -553 | 1,798 |
| Interest on fi nancial fi xed assets - receivables | 90 | 626 | 154 | -3 | 868 | |||
| Dividends | 155 | 14 | 711 | 880 | ||||
| Government grants | 0 | |||||||
| Other operating income | 600 | -550 | 50 | |||||
| Operating expenses (-) | -56,419 | -65,001 | -31,941 | -74 | -53,413 | -6,133 | 1,788 | -211,192 |
| Raw materials and consumables used (-) | -31,966 | -7,868 | -27,349 | -67,182 | ||||
| Changes in inventories of fi nished goods, raw materials & consumables (-) |
146 | 696 | 842 | |||||
| Interest expenses Bank J.Van Breda & C° (-) | -29,458 | -29,458 | ||||||
| Employee expenses (-) | -11,947 | -19,652 | -8,711 | -17,210 | -1,977 | -59,497 | ||
| Depreciation (-) | -1,904 | -2,047 | -814 | -1,101 | -317 | -6,183 | ||
| Impairment losses (-) | -60 | -1,100 | 99 | -160 | -1,221 | |||
| Other operating expenses (-) | -10,542 | -12,744 | -14,669 | -74 | -8,321 | -3,839 | 1,788 | -48,400 |
| Provisions | -125 | 32 | -93 | |||||
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss |
0 | 32 | 379 | 0 | 12 | 0 | 423 | |
| Development capital | 12 | 12 | ||||||
| Financial assets held for trading | 32 | 32 | ||||||
| Investment property | 379 | 379 | ||||||
| Profi t (loss) on disposal of assets | 64 | 1,840 | 1,360 | 0 | 45,956 | 68 | 49,289 | |
| Realised gain (loss) on intangible and tangible assets |
64 | -49 | 13 | 2 | -1 | 29 | ||
| Realised gain (loss) on investment property | 1,347 | 1,347 | ||||||
| Realised gain (loss) on fi nancial fi xed assets | 45,955 | 69 | 46,024 | |||||
| Realised gain (loss) on other assets | 1,889 | 1,889 | ||||||
| Profi t (loss) from operating activities | 918 | 23,118 | 17,617 | 89 | 46,389 | -2,708 | -3 | 85,421 |
| Finance income | 87 | 8 | 1,559 | 8 | 551 | 229 | -112 | 2,330 |
| Interest income | 53 | |||||||
| Other fi nance income | 8 | 1,073 | 8 | 384 | 228 | -112 | 1,641 | |
| 35 | 486 | 168 | 689 | |||||
| Finance costs (-) | -464 | 0 | -7,389 | 0 | -577 | -973 | 115 | -9,288 |
| Interest expenses (-) | -414 | -4,443 | -482 | -221 | 115 | -5,445 | ||
| Other fi nance costs (-) | -50 | -2,946 | -95 | -752 | -3,843 | |||
| Derivative fi nancial instruments designated at fair value through profi t and loss |
0 | 1,959 | 889 | 0 | 0 | 0 | 2,848 | |
| Share of profi t (loss) from equity accounted investments |
20,207 | 39,915 | -3,281 | 5,594 | -9,221 | -16 | 53,198 | |
| Other non-operating income | 0 | 0 | 21 | 0 | 17 | 0 | 38 | |
| Other non-operating expenses (-) | 0 | 0 | 0 | 0 | -23 | 0 | -23 | |
| Profi t (loss) before tax | 20,749 | 65,000 | 9,417 | 5,692 | 37,136 | -3,469 | 0 | 134,525 |
| Income taxes | -88 | -7,394 | -532 | -6 | -308 | 221 | -8,107 | |
| Deferred taxes | 171 | -2,052 | -79 | -35 | 227 | -1,768 | ||
| Current taxes | -259 | -5,342 | -453 | -6 | -273 | -6 | -6,339 | |
| Profi t (loss) after tax from continuing operations |
20,660 | 57,606 | 8,884 | 5,685 | 36,829 | -3,247 | 0 | 126,418 |
| Profi t (loss) after tax from discontinued operations |
||||||||
| Profi t (loss) of the period | 20,660 | 57,606 | 8,884 | 5,685 | 36,829 | -3,247 | 0 | 126,418 |
| Minority interests | 230 | 12,568 | 9,191 | 90 | 9,493 | 31,571 |
*We refer to Section 7 for more details regarding the Restated fi nancial statements 30-06-2013.
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 | Segment 6 | ||
|---|---|---|---|---|---|---|---|---|
| Marine Engineering & |
Private Banking |
Real Estate, Leisure & |
Energy & Resources |
Development Capital |
AvH & subholdings |
Eliminations between |
30-06-2014 | |
| Infrastructure | Senior Care | segments | ||||||
| I. Non-current assets | 2,179,503 | 3,314,914 | 976,143 | 157,278 | 350,393 | 65,185 | -8,214 | 7,035,202 |
| Intangible assets | 9,465 | 9,396 | 10,599 | 926 | 93 | 30,480 | ||
| Goodwill | 291,239 | 137,103 | 6,123 | 434,465 | ||||
| Tangible assets | 1,487,320 | 36,420 | 83,138 | 20,836 | 10,878 | 1,638,591 | ||
| Investment property | 2,749 | 696,074 | 698,824 | |||||
| Participations accounted for using the equity method |
139,784 | 493,321 | 97,543 | 157,278 | 233,676 | 3,754 | 1,125,358 | |
| Financial fi xed assets | 98,411 | 142 | 55,263 | 89,416 | 46,406 | -8,214 | 281,424 | |
| Available for sale fi nancial fi xed assets | 5,609 | 1 | 55,222 | 28 | 33,183 | 94,043 | ||
| Receivables and warranties | 92,802 | 141 | 41 | 89,388 | 13,223 | -8,214 | 187,381 | |
| Non-current hedging instruments | 63 | 429 | 1,612 | 2,104 | ||||
| Amounts receivable after one year | 31,522 | 88,028 | 25,105 | 5,040 | 2,191 | 151,886 | ||
| Trade receivables | 44 | 44 | ||||||
| Finance lease receivables | 88,028 | 24,943 | 112,971 | |||||
| Other receivables | 31,478 | 162 | 5,040 | 2,191 | 38,871 | |||
| Deferred tax assets | 118,950 | 15,999 | 685 | 498 | 1,863 | 137,995 | ||
| Banks - receivables from credit institutions and clients after one year |
2,534,076 | 2,534,076 | ||||||
| II. Current assets | 2,019,468 | 1,768,409 | 135,519 | 3,834 | 245,497 | 75,184 | -175,619 | 4,072,292 |
| Inventories | 127,712 | 16,287 | 2,211 | 146,210 | ||||
| Amounts due from customers under construction contracts |
190,526 | 11,977 | 18,615 | 221,118 | ||||
| Investments | 13 | 662,324 | 30 | 2,873 | 24,162 | 689,402 | ||
| Available for sale fi nancial assets | 662,324 | 30 | 2,873 | 24,162 | 689,389 | |||
| Financial assets held for trading | 13 | 13 | ||||||
| Current hedging instruments | 3,433 | 526 | 3,959 | |||||
| Amounts receivable within one year | 1,208,266 | 92,220 | 71,658 | 3,802 | 173,336 | 13,898 | -175,471 | 1,387,710 |
| Trade debtors | 1,086,527 | 14,379 | 110 | 16,778 | 2,279 | -2,185 | 1,117,888 | |
| Finance lease receivables | 43,522 | 213 | 43,735 | |||||
| Other receivables | 121,739 | 48,698 | 57,065 | 3,693 | 156,557 | 11,619 | -173,286 | 226,086 |
| Current tax receivables | 5,446 | 730 | 323 | 558 | 7,058 | |||
| Banks - receivables from credit institutions and clients within one year |
950,032 | 950,032 | ||||||
| Banks - loans and advances to banks | 80,748 | 80,748 | ||||||
| Banks - loans and receivables (excl. fi nance leases) | 860,725 | 860,725 | ||||||
| Banks - cash balances with central banks | 8,559 | 8,559 | ||||||
| Cash and cash equivalents | 443,897 | 58,268 | 32,583 | 31 | 46,778 | 36,087 | 617,644 | |
| Time deposits for less than three months | 51,220 | 8,536 | 29,656 | 32,438 | 121,849 | |||
| Cash | 392,677 | 58,268 | 24,048 | 31 | 17,122 | 3,649 | 495,795 | |
| Deferred charges and accrued income | 40,175 | 5,038 | 2,255 | 1,361 | 479 | -148 | 49,161 | |
| III. Assets held for sale | 3,809 | 3,809 | ||||||
| TOTAL ASSETS | 4,198,971 | 5,083,323 | 1,115,471 | 161,112 | 595,890 | 140,369 | -183,833 | 11,111,303 |
| (€ 1,000) | Segment 1 Marine Engineering & Infrastructure |
Segment 2 Private Banking |
Segment 3 Real Estate, Leisure & Senior Care |
Segment 4 Energy & Resources |
Segment 5 Development Capital |
Segment 6 AvH & subholdings |
Eliminations between segments |
30-06-2014 |
|---|---|---|---|---|---|---|---|---|
| I. Total equity | 1,253,584 | 1,107,951 | 444,332 | 161,060 | 535,641 | -163,807 | 3,338,760 | |
| Shareholders' equity - group share | 774,016 | 904,052 | 217,407 | 159,947 | 402,042 | -163,811 | 2,293,654 | |
| Issued capital | 113,907 | 113,907 | ||||||
| Share capital | 2,295 | 2,295 | ||||||
| Share premium | 111,612 | 111,612 | ||||||
| Consolidated reserves | 779,445 | 895,307 | 218,502 | 168,743 | 404,276 | -288,930 | 2,177,342 | |
| Revaluation reserves | -5,429 | 8,746 | -1,094 | -8,796 | -2,234 | 29,395 | 20,587 | |
| Securities available for sale | 7,578 | 6,452 | 46 | 2,970 | 28,595 | 45,641 | ||
| Hedging reserves | -244 | -1,006 | -7,919 | -386 | -9,555 | |||
| Actuarial gains (losses) defi ned benefi t pension | ||||||||
| plans | -5,865 | -62 | -265 | -881 | 800 | -6,273 | ||
| Translation differences | 680 | 2,236 | 373 | -8,577 | -3,937 | -9,225 | ||
| Treasury shares (-) | -18,183 | -18,183 | ||||||
| Minority interests | 479,568 | 203,899 | 226,925 | 1,112 | 133,598 | 4 | 1,045,106 | |
| II. Non-current liabilities | 1,001,818 | 901,776 | 415,131 | 10,155 | 88,852 | -8,214 | 2,409,518 | |
| Provisions | 91,589 | 333 | 5,212 | 732 | 97,865 | |||
| Pension liabilities | 45,738 | 3,186 | 35 | 118 | 49,077 | |||
| Deferred tax liabilities | 92,439 | 2,122 | 11,110 | 1,145 | 745 | 107,561 | ||
| Financial debts | 674,685 | 369,110 | 8,243 | 87,990 | -8,214 | 1,131,814 | ||
| Bank loans | 354,891 | 262,746 | 87,990 | 705,627 | ||||
| Bonds | 299,631 | 98,406 | 398,037 | |||||
| Subordinated loans | 300 | 7,768 | -5,000 | 3,068 | ||||
| Finance leases | 15,554 | 1 | 8,243 | 23,798 | ||||
| Other fi nancial debts | 4,309 | 189 | -3,214 | 1,283 | ||||
| Non-current hedging instruments | 16,047 | 9,460 | 27,166 | 52,673 | ||||
| Other amounts payable after one year | 81,320 | 5,512 | 2,533 | 89,365 | ||||
| Banks - debts to credit institutions, | ||||||||
| clients & securities | 881,163 | 881,163 | ||||||
| Banks - deposits from credit institutions | 635 | 635 | ||||||
| Banks - deposits from clients | 814,682 | 814,682 | ||||||
| Banks - debt certifi cates including bonds | 8 | 8 | ||||||
| Banks - subordinated liabilities | 65,838 | 65,838 | ||||||
| III. Current liabilities | 1,943,569 | 3,073,596 | 256,008 | 53 | 50,095 | 215,324 | -175,619 | 5,363,025 |
| Provisions | 33,922 | 77 | 33,998 | |||||
| Pension liabilities | 241 | 241 | ||||||
| Financial debts | 327,793 | 221,273 | 1,408 | 211,875 | -172,786 | 589,563 | ||
| Bank loans | 227,240 | 88,789 | 316,029 | |||||
| Bonds | 0 | |||||||
| Finance leases | 3,418 | 7 | 1,408 | 4,833 | ||||
| Other fi nancial debts | 97,134 | 132,477 | 211,875 | -172,786 | 268,700 | |||
| Current hedging instruments | 16,124 | 1,246 | 1,054 | 18,424 | ||||
| Amounts due to customers under | ||||||||
| construction contracts | 222,663 | 23,595 | 246,257 | |||||
| Other amounts payable within one year | 1,256,021 | 21,171 | 20,632 | 41 | 23,361 | 3,115 | -1,591 | 1,322,751 |
| Trade payables | 1,072,204 | 43 | 8,922 | 41 | 15,141 | 882 | -1,091 | 1,096,142 |
| Advances received | 1,727 | 1,727 | ||||||
| Amounts payable regarding remuneration | 116,172 | 6,674 | 4,027 | 7,583 | 679 | 135,136 | ||
| and social security Other amounts payable |
65,918 | 14,454 | 7,683 | 636 | 1,554 | -500 | 89,746 | |
| Current tax payables | 53,668 | 7,883 | 1,680 | 8 | 225 | 12 | 63,475 | |
| Banks - debts to credit institutions, | ||||||||
| clients & securities | 3,040,264 | 3,040,264 | ||||||
| Banks - deposits from credit institutions | 11,147 | 11,147 | ||||||
| Banks - deposits from clients | 2,902,014 | 2,902,014 | ||||||
| Banks - debt certifi cates including bonds | 110,139 | 110,139 | ||||||
| Banks - subordinated liabilities | 16,964 | 16,964 | ||||||
| Accrued charges and deferred income | 33,379 | 2,791 | 11,293 | 4 | 1,506 | 322 | -1,242 | 48,052 |
| IV. Liabilities held for sale | 0 | |||||||
| TOTAL EQUITY AND LIABILITIES | 4,198,971 | 5,083,323 | 1,115,471 | 161,112 | 595,890 | 140,369 | -183,833 | 11,111,303 |
The shareholdings in CFE, DEME, Rent-A-Port and Rent-A-Port Energy had already been accounted for by full consolidation in the balance sheet at 31/12/2013. This does not produce any significant differences when comparing the balance sheet figures of 30 June 2014 with those of 31/12/2013 (unlike when comparing the income statement at 30 June 2014 with those of previous periods).
The balance sheet total of AvH increased during the first six months to 11,111.3 million euros, an increase by 143.3 million euros (+1.3%). Most of this increase is to be found in the "Marine Engineering & Infrastructure" segment and is explained by the progress of activities (inventories, construction contracts and amounts receivable).
The goodwill as at 30 June 2014 amounted to 434.5 million euros, which is virtually unchanged in relation to the 437.0 million euros at the end of 2013. The acquisition of control over CFE (and therefore over DEME) led to the recognition in the balance sheet at 31/12/2013 of goodwill on DEME worth 252.3 million euros. As the work of determining the fair value of the identifiable assets and liabilities in accordance with IFRS 3 has not been completed yet, this has no impact on the balance sheet picture as at 30/06/2014. The other goodwill primarily relates to the "Private Banking" segment. That amounts to 137.1 million euros and has remained unchanged in relation to last year. As far as goodwill is concerned, it should also be noted that an amount of 94.0 million euros is contained in the item 'Participations accounted for using the equity method', and that the balance sheet of Delen Investments, an equity accounted group company, contains a 'Clients' item of 240.3 million euros.
For the changes in equity, reference is made to the note on page 23.
Of the provision of 60.3 million euros which AvH had recognized at 31 December 2013 by way of contingent liability for potential risks of CFE, an amount of 3.6 million euros was reversed in the first half of 2014, since those liabilities were incorporated in the financial statements of CFE at 30 June 2014.
The decrease in net financial debt at DEME can also be seen in the long-term debts. The issued bonds maturing in more than one year amount to 398.0 million euros in total. They involve bond issues of originally 200 million euros by DEME (2013-2019), 100 million euros by CFE (2012-2017) and 95 million euros by Leasinvest Real Estate (2013 – 2019/2020). At 31/12/2013, the 100 million euros bond debt of CFE was still reported under short-term debts as the bondholders had the right to request early redemption of the loan in view of the change of control over CFE. Eventually, only 41.000 euros (or 0.041%) worth of bonds was redeemed early in 2014, while the balance at 30/06/2014 could once more be reported under long-term debts.
The balance sheet of Bank J.Van Breda & C° shows an increase in deposits by clients of the bank, more particularly with a maturity of more than one year. This allows Bank J.Van Breda & C° to fully finance its lending without having to depend on financial markets.
As is explained on page 26 in the commentary on the consolidated income statement of AvH, the impact of the acquisition of control over CFE at the end of 2013 must be taken into account in the analysis of the consolidated cash flow statement and its comparison with those of previous periods. Since, as a result of that transaction, control was acquired over CFE, DEME, Rent-A-Port and Rent-A-Port Energy, the results of those companies are fully consolidated with effect from 1 January 2014. This gives substantial differences compared with the situation as at 30 June 2013 when there was no question yet of a stake in CFE nor of a controlling interest in DEME, Rent-A-Port and Rent-A-Port Energy.
After the first six months of 2014, the cash flow realized by AvH stands at 252.5 million euros, which is a significant increase compared with 67.2 million euros at 30 June 2013. In that cash flow, the contributions of DEME, CFE, Rent-A-Port and Rent-A-Port Energy collectively account for 176.2 million euros. Even without those new contributions, the cash flow would have shown an increase on the previous year, which suggests a favourable development of the cash flows at most of the group's companies.
In the first half of 2014, the consolidated working capital increased by 198.9 million euros. Most of that increase is to be found in the Private Banking segment with a higher level of lending by Bank J.Van Breda & C° to its clients, and in the Development Capital segment with the sale of the stake in NMC, the proceeds of which will only be collected at the beginning of October 2014, as NMC is bound by the legal procedures governing the acquisition of treasury shares. Since the increase in receivables and contracts in progress at DEME and CFE is to a large extent offset by an increase in short-term (non-financial) debt, their impact on the evolution of the working capital is limited in relation to the size of the operations.
On a consolidated basis, the AvH group has recorded 451.4 million euros worth of investments and 394.9 million euros worth of divestments. After adjusting those amounts for the acquisition and disposal of short-term investments by Bank J.Van Breda & C° as part of its normal portfolio management, this leaves 91.3 million euros in investments and 56.8 million euros in divestments.
The main investments to be reported are 44.9 million euros at DEME (primarily in connection with the fleet) and 6.7 million euros at CFE. Anima Care invested an extra 11.5 million euros in the expansion of its retirement home portfolio, primarily in the newly built residences in Zemst, Haut-Ittre and Kasterlee. Bank J.Van Breda & C° continued to consolidate its commercial network and invested a total of 5.7 million euros in the further development of software and its network of branches. The divestments in the first six months of 2014 essentially involved the sale by Sofinim of its stake in NMC and the disposal by Leasinvest Real Estate of properties in Brussels (Louizalaan 66) and in Meer.
The financial cash flow over the first six months of 2014 was negative at 152.9 million euros. AvH paid out dividends worth 56.4 million euros, while subsidiaries (CFE, LRE, Sofinim, etc) paid 27.8 million euros to third parties, which is 84.2 million euros in total. The balance consists for the most part of interest paid and repayment of financial debts.
| (€ 1,000) | Segment 1 Marine |
Segment 2 Private |
Segment 3 Real Estate, |
Segment 4 Energy & |
Segment 5 Development |
Segment 6 AvH & |
Eliminations | 31-12-2013* |
|---|---|---|---|---|---|---|---|---|
| Engineering & | Banking | Leisure & | Resources | Capital | subholdings | between | ||
| Infrastructure | Senior Care | segments | ||||||
| I. Non-current assets | 2,234,613 | 3,232,222 | 957,985 | 152,153 | 385,068 | 63,044 | -8,157 | 7,016,929 |
| Intangible assets | 12,989 | 9,502 | 9,903 | 947 | 96 | 33,437 | ||
| Goodwill | 293,805 | 137,103 | 6,058 | 436,967 | ||||
| Tangible assets | 1,542,457 | 33,156 | 72,745 | 21,198 | 11,147 | 1,680,703 | ||
| Investment property | 2,749 | 697,498 | 700,247 | |||||
| Participations accounted for using the equity method |
135,998 | 479,396 | 97,867 | 152,153 | 268,132 | 3,445 | 1,136,991 | |
| Financial fi xed assets | 126,533 | 87 | 47,212 | 89,373 | 44,232 | -8,157 | 299,280 | |
| Available for sale fi nancial fi xed assets | 4,895 | 1 | 47,188 | 28 | 31,072 | 83,184 | ||
| Receivables and warranties | 121,638 | 86 | 24 | 89,345 | 13,160 | -8,157 | 216,096 | |
| Non-current hedging instruments | 612 | 961 | 767 | 2,340 | ||||
| Amounts receivable after one year | 1,441 | 88,163 | 25,105 | 5,040 | 2,261 | 122,010 | ||
| Trade receivables | 44 | 44 | ||||||
| Finance lease receivables | 88,163 | 24,943 | 113,106 | |||||
| Other receivables | 1,397 | 162 | 5,040 | 2,261 | 8,860 | |||
| Deferred tax assets* | 118,030 | 17,563 | 829 | 378 | 1,863 | 138,663 | ||
| Banks - receivables from credit institutions and clients after one year |
2,466,291 | 2,466,291 | ||||||
| II. Current assets | 1,876,690 | 1,791,440 | 128,358 | 3,762 | 204,611 | 88,639 | -153,940 | 3,939,559 |
| Inventories | 119,221 | 16,227 | 2,017 | 137,466 | ||||
| Amounts due from customers under construction contracts |
155,015 | 15,658 | 7,291 | 177,964 | ||||
| Investments | 354 | 640,773 | 30 | 495 | 23,609 | 665,262 | ||
| Available for sale fi nancial assets | 640,773 | 30 | 495 | 23,609 | 664,908 | |||
| Financial assets held for trading | 354 | 354 | ||||||
| Current hedging instruments | 11,160 | 990 | 12,150 | |||||
| Amounts receivable within one year | 1,100,388 | 60,541 | 72,201 | 3,697 | 143,194 | 13,075 | -153,801 | 1,239,296 |
| Trade debtors | 1,065,343 | 19,176 | 16,428 | 3,444 | -3,310 | 1,101,082 | ||
| Finance lease receivables | 41,582 | 425 | 42,007 | |||||
| Other receivables | 35,045 | 18,959 | 52,600 | 3,697 | 126,766 | 9,631 | -150,491 | 96,207 |
| Current tax receivables | 16 | 1,154 | 130 | 482 | 1,782 | |||
| Banks - receivables from credit institutions and clients within one year |
903,709 | 903,709 | ||||||
| Banks - loans and advances to banks | 59,706 | 59,706 | ||||||
| Banks - loans and receivables (excl. fi nance leases) |
841,457 | 841,457 | ||||||
| Banks - cash balances with central banks | 2,546 | 2,546 | ||||||
| Cash and cash equivalents | 463,754 | 180,936 | 20,784 | 64 | 50,476 | 50,994 | 767,009 | |
| Time deposits for less than three months | 26,476 | 10,881 | 31,423 | 46,412 | 115,192 | |||
| Cash | 437,278 | 180,936 | 9,904 | 64 | 19,053 | 4,581 | 651,817 | |
| Deferred charges and accrued income | 26,781 | 4,490 | 2,303 | 1 | 1,007 | 479 | -139 | 34,921 |
| III. Assets held for sale | 11,544 | 11,544 | ||||||
| TOTAL ASSETS | 4,111,303 | 5,023,662 | 1,097,887 | 155,915 | 589,679 | 151,683 | -162,097 | 10,968,032 |
*The breakdown of deferred taxes by entity of DEME was restated (effect is limited to an increase in the balance sheet items 'Deferred tax assets and liabilities' to the amount of 80 million euros).
| (€ 1,000) | Segment 1 Marine Engineering & Infrastructure |
Segment 2 Private Banking |
Segment 3 Real Estate, Leisure & Senior Care |
Segment 4 Energy & Resources |
Segment 5 Development Capital |
Segment 6 AvH & subholdings |
Eliminations between segments |
31-12-2013* |
|---|---|---|---|---|---|---|---|---|
| I. Total equity | 1,214,559 | 1,055,162 | 448,792 | 155,905 | 533,532 | -130,589 | 3,277,362 | |
| Shareholders' equity - group share | 750,480 | 862,213 | 214,081 | 154,793 | 400,565 | -130,593 | 2,251,539 | |
| Issued capital | 113,907 | 113,907 | ||||||
| Share capital | 2,295 | 2,295 | ||||||
| Share premium | 111,612 | 111,612 | ||||||
| Consolidated reserves | 755,878 | 855,721 | 213,732 | 164,782 | 403,678 | -253,084 | 2,140,707 | |
| Revaluation reserves | -5,398 | 6,493 | 349 | -9,989 | -3,113 | 27,276 | 15,616 | |
| Securities available for sale | 6,325 | 4,477 | 46 | 2,577 | 26,355 | 39,780 | ||
| Hedging reserves Actuarial gains (losses) defi ned benefi t pension |
-327 | -1,157 | -4,591 | -286 | -6,361 | |||
| plans | -3,674 | -62 | -180 | -587 | 921 | -3,582 | ||
| Translation differences | -1,397 | 1,386 | 463 | -9,855 | -4,817 | -14,220 | ||
| Treasury shares (-) | -18,692 | -18,692 | ||||||
| Minority interests | 464,079 | 192,949 | 234,711 | 1,112 | 132,968 | 4 | 1,025,823 | |
| II. Non-current liabilities | 1,051,087 | 808,291 | 401,425 | 11,133 | 88,876 | -8,157 | 2,352,656 | |
| Provisions | 75,552 | 33 | 4,919 | 885 | 81,388 | |||
| Pension liabilities | 41,356 | 3,020 | 42 | 118 | 44,535 | |||
| Deferred tax liabilities* | 103,987 | 1,228 | 11,540 | 658 | 769 | 118,182 | ||
| Financial debts | 715,290 | 364,116 | 8,861 | 87,990 | -8,157 | 1,168,098 | ||
| Bank loans | 489,756 | 260,465 | 87,990 | 838,211 | ||||
| Bonds | 199,639 | 95,767 | 295,405 | |||||
| Subordinated loans | 483 | 7,690 | -5,000 | 3,173 | ||||
| Finance leases | 17,881 | 5 | 8,861 | 26,746 | ||||
| Other fi nancial debts | 7,531 | 189 | -3,157 | 4,563 | ||||
| Non-current hedging instruments | 16,427 | 3,938 | 18,568 | 38,933 | ||||
| Other amounts payable after one year | 98,476 | 5,964 | 2,283 | 687 | 107,411 | |||
| Banks - debts to credit institutions, clients & securities |
794,108 | 794,108 | ||||||
| Banks - deposits from credit institutions | 832 | 832 | ||||||
| Banks - deposits from clients | 715,368 | 715,368 | ||||||
| Banks - debt certifi cates including bonds | 8 | 8 | ||||||
| Banks - subordinated liabilities | 77,900 | 77,900 | ||||||
| III. Current liabilities | 1,845,657 | 3,160,208 | 247,670 | 9 | 45,014 | 193,396 | -153,940 | 5,338,014 |
| Provisions | 34,571 | 88 | 34,658 | |||||
| Pension liabilities | 208 | 208 | ||||||
| Financial debts | 340,089 | 215,656 | 1,380 | 188,584 | -149,491 | 596,218 | ||
| Bank loans | 134,407 | 77,684 | 212,091 | |||||
| Bonds | 100,000 | 100,000 | ||||||
| Finance leases | 4,006 | 7 | 1,380 | 5,393 | ||||
| Other fi nancial debts | 101,675 | 137,965 | 188,584 | -149,491 | 278,733 | |||
| Current hedging instruments | 16,499 | 1,877 | 18,376 | |||||
| Amounts due to customers under | 180,073 | 14,109 | 194,181 | |||||
| construction contracts Other amounts payable within one year |
1,221,232 | 24,823 | 20,773 | 7 | 26,179 | 3,993 | -1,980 | 1,295,027 |
| Trade payables | 1,025,726 | 5 | 10,094 | 7 | 17,092 | 778 | -980 | 1,052,723 |
| Advances received | 1,837 | 1,837 | ||||||
| Amounts payable regarding remuneration | ||||||||
| and social security | 132,709 | 8,478 | 3,029 | 7,975 | 2,559 | 154,750 | ||
| Other amounts payable | 60,960 | 16,340 | 7,650 | 1,112 | 655 | -1,000 | 85,717 | |
| Current tax payables | 9,072 | 6,365 | 905 | 350 | 8 | 16,701 | ||
| Banks - debts to credit institutions, | 3,123,241 | 3,123,241 | ||||||
| clients & securities Banks - deposits from credit institutions |
105,488 | 105,488 | ||||||
| Banks - deposits from clients | 2,883,169 | 2,883,169 | ||||||
| Banks - debt certifi cates including bonds | 128,011 | 128,011 | ||||||
| 6,573 | 6,573 | |||||||
| Banks - subordinated liabilities | ||||||||
| Accrued charges and deferred income | 44,121 | 3,694 | 10,248 | 3 | 2,996 | 811 | -2,469 | 59,403 |
| IV. Liabilities held for sale | 0 | |||||||
| TOTAL EQUITY AND LIABILITIES | 4,111,303 | 5,023,662 | 1,097,887 | 155,915 | 589,679 | 151,683 | -162,097 | 10,968,032 |
*The breakdown of deferred taxes by entity of DEME was restated (effect is limited to an increase in the balance sheet items 'Deferred tax assets and liabilities' to the amount of 80 million euros).
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 & 6 |
30-06-2014 | |
|---|---|---|---|---|---|---|---|
| Marine | Private | Real Estate, | Energy & | AvH, subhold. | Eliminations | ||
| Engineering & Infrastructure |
Banking | Leisure & Senior Care |
Resources | & Development Capital |
between segments |
||
| I. Cash and cash equivalents, opening balance | 463,754 | 180,936 | 20,784 | 64 | 101,470 | 767,009 | |
| Profi t (loss) from operating activities | 102,322 | 23,128 | 21,802 | 30 | 4,061 | -210 | 151,133 |
| Reclassifi cation 'Profi t (loss) on disposal of assets' to cash fl ow from divestments |
-4,041 | -1,905 | -6,580 | -12,526 | |||
| Dividends from participations accounted for using the equity method | 1,357 | 20,261 | 6,136 | 27,753 | |||
| Other non-operating income (expenses) | 0 | ||||||
| Income taxes | -20,026 | -7,179 | -806 | -8 | -664 | -28,683 | |
| Non-cash adjustments | |||||||
| Depreciation | 109,518 | 2,526 | 1,425 | 1,615 | 115,084 | ||
| Impairment losses | -346 | 381 | 27 | 12 | 74 | ||
| Share based payment | 35 | -452 | 249 | 349 | 181 | ||
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss |
780 | 780 | |||||
| (Decrease) increase of provisions | -825 | 498 | 18 | -153 | -462 | ||
| (Decrease) increase of deferred taxes | -4,669 | 1,335 | -491 | 394 | -3,431 | ||
| Other non-cash expenses (income) | -2,085 | 4,398 | 295 | -18 | 2,590 | ||
| Cash fl ow | 181,239 | 44,896 | 21,395 | 22 | 5,152 | -210 | 252,493 |
| Decrease (increase) of working capital | -48,944 | -139,665 | 5,850 | -62 | -47,946 | 31,830 | -198,938 |
| Decrease (increase) of inventories and construction contracts | -38,140 | 3,622 | -2,032 | -36,551 | |||
| Decrease (increase) of amounts receivable | -83,244 | -31,543 | 935 | -106 | -41,501 | 31,830 | -123,628 |
| Decrease (increase) of receivables from credit institutions and clients (banks) |
-108,144 | -108,144 | |||||
| Increase (decrease) of liabilities (other than fi nancial debts) | 89,922 | -2,224 | 475 | 34 | -3,309 | 84,898 | |
| Increase (decrease) of debts to credit institutions, | 3,378 | 3,378 | |||||
| clients & securities (banks) | |||||||
| Decrease (increase) other | -17,481 | -1,132 | 817 | 9 | -1,105 | -18,891 | |
| Cash fl ow from operating activities | 132,295 | -94,769 | 27,244 | -40 | -42,795 | 31,620 | 53,555 |
| Investments | -67,176 | -366,055 | -15,311 | 0 | -2,853 | -451,394 | |
| Acquisition of intangible and tangible assets | -52,544 | -5,684 | -11,657 | -991 | -70,875 | ||
| Acquisition of investment property | -1,304 | -1,304 | |||||
| Acquisition of fi nancial fi xed assets | -2,897 | -181 | -2,351 | -221 | -5,649 | ||
| New amounts receivable | -11,735 | -55 | -107 | -11,897 | |||
| Acquisition of investments | -360,135 | -1,535 | -361,670 | ||||
| Divestments | 6,438 | 338,138 | 11,943 | 0 | 38,413 | 394,932 | |
| Disposal of intangible and tangible assets | 6,097 | 35 | 30 | 6,163 | |||
| Disposal of investment property | 11,906 | 11,906 | |||||
| Disposal of fi nancial fi xed assets | 1 | 38,382 | 38,384 | ||||
| Reimbursements of amounts receivable | 1 | 1 | |||||
| Disposal of investments | 341 | 338,138 | 338,479 | ||||
| Cash fl ow from investing activities | -60,738 | -27,917 | -3,368 | 0 | 35,560 | 0 | -56,462 |
| Financial operations | |||||||
| Interest received | 5,765 | 18 | 1,511 | 5 | 437 | -43 | 7,693 |
| Interest paid | -19,148 | -6,730 | -1,071 | 254 | -26,695 | ||
| Other fi nancial income (costs) | 401 | -2,585 | -1,031 | -3,215 | |||
| Decrease (increase) of treasury shares | 357 | 357 | |||||
| (Decrease) increase of fi nancial debts | -54,491 | 8,206 | 31,237 | -31,830 | -46,878 | ||
| Distribution of profi ts | -56,361 | -56,361 | |||||
| Dividends paid to minority interests | -30,590 | -14,321 | 17,051 | -27,860 | |||
| Cash fl ow from fi nancial activities | -98,063 | 18 | -13,919 | 5 | -9,380 | -31,620 | -152,959 |
| II. Net increase (decrease) in cash and cash equivalents | -26,506 | -122,668 | 9,958 | -35 | -16,615 | -155,866 | |
| Transfer between segments | 39 | 2,000 | -2,039 | 0 | |||
| Change in consolidation scope or method | |||||||
| 2,377 | 12 | 2,389 | |||||
| Impact of exchange rate changes on cash and cash equivalents III. Cash and cash equivalents - ending balance |
4,233 443,897 |
58,268 | -171 32,583 |
2 31 |
48 82,864 |
4,112 617,644 |
| (€ 1,000) | Segment 1 | Segment 2 | Segment 3 | Segment 4 | Segment 5 & 6 |
30-06-2013* | |
|---|---|---|---|---|---|---|---|
| Marine | Private | Real Estate, | Energy & | AvH, subhold. | Eliminations | ||
| Engineering & Infrastructure |
Banking | Leisure & Senior Care |
Resources | & Development Capital |
between segments |
||
| I. Cash and cash equivalents, opening balance | 18,646 | 24,607 | 26,743 | 243 | 101,546 | 171,784 | |
| Profi t (loss) from operating activities Reclassifi cation 'Profi t (loss) on disposal of assets' to cash fl ow |
918 | 23,118 | 17,617 | 89 | 43,681 | -3 | 85,421 |
| from divestments | -64 | -1,840 | -1,360 | -46,024 | -49,289 | ||
| Dividends from participations accounted for using the equity method | 183 | 1,620 | 23,891 | 25,693 | |||
| Other non-operating income (expenses) | 21 | -6 | 15 | ||||
| Income taxes | -88 | -7,394 | -532 | -6 | -86 | -8,107 | |
| Non-cash adjustments | |||||||
| Depreciation | 1,904 | 2,047 | 814 | 1,418 | 6,183 | ||
| Impairment losses | 60 | 1,094 | -99 | 160 | 1,215 | ||
| Share based payment | 9 | 109 | 149 | 379 | 646 | ||
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss |
-32 | -379 | -12 | -423 | |||
| (Decrease) increase of provisions | 105 | 125 | -280 | -50 | |||
| (Decrease) increase of deferred taxes | -171 | 2,052 | 79 | -192 | 1,768 | ||
| Other non-cash expenses (income) | 42 | 3,146 | 350 | 575 | 4,113 | ||
| Cash fl ow | 2,793 | 22,406 | 16,784 | 1,703 | 23,502 | -3 | 67,185 |
| Decrease (increase) of working capital | -1,187 | 81,205 | -3,371 | -1,752 | -26,235 | 11,048 | 59,709 |
| Decrease (increase) of inventories and construction contracts | -891 | 3,399 | -2,615 | -108 | |||
| Decrease (increase) of amounts receivable | 13,187 | -14,463 | -2,300 | -1,755 | -16,494 | 11,048 | -10,777 |
| Decrease (increase) of receivables from credit institutions and clients (banks) |
-106,978 | -106,978 | |||||
| Increase (decrease) of liabilities (other than fi nancial debts) | -13,460 | -4,379 | 1,032 | -4 | -7,352 | -24,163 | |
| Increase (decrease) of debts to credit institutions, | 203,492 | 203,492 | |||||
| clients & securities (banks) Decrease (increase) other |
-22 | 3,533 | -5,501 | 7 | 226 | -1,758 | |
| Cash fl ow from operating activities | 1,606 | 103,611 | 13,413 | -49 | -2,733 | 11,046 | 126,894 |
| Investments | -5,260 | -136,185 | -23,360 | -318 | -49,463 | 5,000 | -209,587 |
| Acquisition of intangible and tangible assets | -4,173 | -3,830 | -9,187 | -882 | -18,072 | ||
| Acquisition of investment property | -3,567 | -3,567 | |||||
| Acquisition of fi nancial fi xed assets | -32 | -10,604 | -318 | -38,389 | -49,344 | ||
| New amounts receivable | -1,087 | -1 | -10,193 | 5,000 | -6,281 | ||
| Acquisition of investments | -132,323 | -132,323 | |||||
| Divestments | 88 | 104,215 | 25,975 | 0 | 128,851 | 0 | 259,129 |
| Disposal of intangible and tangible assets | 64 | 126 | 28 | 33 | 252 | ||
| Disposal of investment property | 25,926 | 25,926 | |||||
| Disposal of fi nancial fi xed assets | 24 | 105,772 | 105,796 23,046 |
||||
| Reimbursements of amounts receivable Disposal of investments |
104,089 | 21 | 23,046 | 104,110 | |||
| Cash fl ow from investing activities | -5,172 | -31,970 | 2,616 | -318 | 79,387 | 5,000 | 49,542 |
| Financial operations | |||||||
| Interest received | 53 | 8 | 1,073 | 8 | 520 | -112 | 1,549 |
| Interest paid | -414 | -4,443 | -140 | 115 | -4,882 | ||
| Other fi nancial income (costs) | -16 | -2,632 | -599 | -3,247 | |||
| Decrease (increase) of treasury shares | -947 | -947 | |||||
| (Decrease) increase of fi nancial debts | 862 | -48,504 | 8,829 | -16,048 | -54,860 | ||
| Distribution of profi ts | -55,349 | -55,349 | |||||
| Dividends paid to minority interests | -1,174 | -12,491 | -1,872 | -15,536 | |||
| Cash fl ow from fi nancial activities | -688 | 8 | -66,997 | 8 | -49,558 | -16,046 | -133,273 |
| II. Net increase (decrease) in cash and cash equivalents | -4,254 | 71,649 | -50,968 | -359 | 27,096 | 43,163 | |
| Transfer between segments | 7,192 | 318 | -7,511 | 0 | |||
| Change in consolidation scope or method | 30 | 30 | |||||
| Capital increase Leasinvest Real Estate (minorities) | 41,976 | 41,976 | |||||
| Impact of exchange rate changes on cash and cash equivalents | -332 | -13 | 32 | -313 | |||
| III. Cash and cash equivalents - ending balance | 14,392 | 96,255 | 24,642 | 189 | 121,162 | 256,641 |
*We refer to Section 7 for more details regarding the Restated fi nancial statements 30-06-2013.
| (€ 1,000) | 30-06-2013 | Change valuation rule Development Capital |
Reclassifi cations banking items |
30-06-2013 Restated |
|---|---|---|---|---|
| Revenue | 186,934 | 53,157 | 5,012 | 245,103 |
| Rendering of services | 19,108 | 19,108 | ||
| Lease revenue | 5,593 | 5,593 | ||
| Real estate revenue | 21,339 | 21,339 | ||
| Interest income - banking activities | 58,498 | 5,018 | 63,516 | |
| Fees and commissions - banking activities | 16,491 | -977 | 15,514 | |
| Revenue from construction contracts | 56,178 | 52,317 | 108,494 | |
| Other operating revenue | 9,727 | 840 | 971 | 11,538 |
| Other operating income | 6,433 | -4,635 | 1,798 | |
| Interest on fi nancial fi xed assets - receivables | 868 | 868 | ||
| Dividends | 5,515 | -4,635 | 880 | |
| Government grants | 0 | 0 | ||
| Other operating income | 50 | 50 | ||
| Operating expenses (-) | -158,116 | -51,353 | -1,723 | -211,192 |
| Raw materials and consumables used (-) | -39,834 | -27,349 | -67,182 | |
| Changes in inventories of fi nished goods, raw materials & consumables (-) | 146 | 696 | 842 | |
| Interest expenses Bank J.Van Breda & C° (-) | -27,729 | -1,729 | -29,458 | |
| Employee expenses (-) | -42,474 | -17,210 | 187 | -59,497 |
| Depreciation (-) | -5,088 | -1,095 | -6,183 | |
| Impairment losses (-) | -1,061 | -160 | -1,221 | |
| Other operating expenses (-) | -41,952 | -6,267 | -181 | -48,400 |
| Provisions | -125 | 32 | -93 | |
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss |
-13,922 | 14,345 | 423 | |
| Development capital | -14,333 | 14,345 | 12 | |
| Financial assets held for trading | 32 | 32 | ||
| Investment property | 379 | 379 | ||
| Profi t (loss) on disposal of assets | 49,289 | 0 | 49,289 | |
| Realised gain (loss) on intangible and tangible assets | 29 | 29 | ||
| Realised gain (loss) on investment property | 1,347 | 1,347 | ||
| Realised gain (loss) on fi nancial fi xed assets | 46,024 | 46,024 | ||
| Realised gain (loss) on other assets | 1,889 | 1,889 | ||
| Profi t (loss) from operating activities | 70,618 | 11,514 | 3,289 | 85,421 |
| Finance income | 7,169 | 179 | -5,018 | 2,330 |
| Interest income | 6,649 | 11 | -5,018 | 1,641 |
| Other fi nance income | 521 | 168 | 689 | |
| Finance costs (-) | -10,442 | -575 | 1,729 | -9,288 |
| Interest expenses (-) | -6,693 | -481 | 1,729 | -5,445 |
| Other fi nance costs (-) | -3,749 | -94 | -3,843 | |
| Derivative fi nancial instruments designated at fair value through profi t and loss |
2,848 | 2,848 | ||
| Share of profi t (loss) from equity accounted investments | 63,675 | -10,477 | 53,198 | |
| Other non-operating income | 21 | 17 | 38 | |
| Other non-operating expenses (-) | 0 | -23 | -23 | |
| Profi t (loss) before tax | 133,890 | 635 | 134,525 | |
| Income taxes | -7,800 | -307 | -8,107 | |
| Deferred taxes | -1,733 | -35 | -1,768 | |
| Current taxes | -6,067 | -272 | -6,339 | |
| Profi t (loss) after tax from continuing operations | 126,090 | 328 | 126,418 | |
| Profi t (loss) after tax from discontinued operations | ||||
| Profi t (loss) of the period | 126,090 | 328 | 0 | 126,418 |
| Minority interests | 31,243 | 328 | 31,571 | |
| Share of the group | 94,847 | 0 | 94,847 |
| (€ 1,000) | 30-06-2013 | Development Capital | 30-06-2013 Restated |
|---|---|---|---|
| Profi t (loss) of the period | 126,090 | 328 | 126,418 |
| Minority interests | 31,243 | 328 | 31,571 |
| Share of the group | 94,847 | 0 | 94,847 |
| Other comprehensive income | 8,548 | -1,934 | 6,614 |
| Items that may be reclassifi ed to profi t or loss in subsequent periods | |||
| Changes in revaluation reserve: fi nancial assets available for sale | -1,924 | -10 | -1,934 |
| Changes in revaluation reserve: hedging reserves | 12,752 | 354 | 13,106 |
| Changes in revaluation reserve: translation differences | -3,208 | -2,302 | -5,510 |
| Items that cannot be reclassifi ed to profi t or loss in subsequent periods | |||
| Changes in revaluation reserve: actuarial gains (losses) defi ned benefi t pension plans | 928 | 24 | 952 |
| Total comprehensive income | 134,638 | -1,606 | 133,032 |
| Minority interests | 35,315 | -166 | 35,149 |
| Share of the group | 99,323 | -1,441 | 97,882 |
We refer to the Annual Report 2013 - Note 2 Restated financial statements for more details.
The jointly controlled subsidiaries (Amsteldijk Beheer, Distriplus, Hertel, Manuchar, Turbo's Hoet Groep) and the associated companies (Atenor, Axe Investments, Corelio, Euro Media Group, NMC and MediaCore) were accounted for using the equity method as of 1 January 2012 instead of the previously applied 'fair value' approach. This explains the shift from the item 'Development capital participations' to 'Participations accounted for using the equity method'. The full consolidation of the controlling interest in Egemin International has a major impact on the presentation of the "Development Capital" segment.
By carrying out certain reclassifications in the balance sheet and income statement, the presentation of Bank J.Van Breda & C° in the consolidated financial statements of AvH was brought into line with the published statements of the bank. In the balance sheet, the accrued interest is allocated to the relevant items (previously in the item 'Accruals and deferrals'). In the same way as deposits of clients and credit institutions, subordinated debts make up one of the bank's sources of funding. Consequently, a reclassification from 'Financial debts' was carried out. Interest charges on subordinated debts and interest income on the investment portfolio form part of the bank's operating income, having previously been reported as financial income (charges).
| (€ 1,000) | 30-06-2013 | Change valuation rule Development Capital |
Reclassifi cations banking items |
30-06-2013 Restated |
|---|---|---|---|---|
| I. Non-current assets | 4,982,441 | 5,302 | 0 | 4,987,742 |
| Intangible assets | 14,581 | 972 | 15,552 | |
| Goodwill | 142,409 | 142,409 | ||
| Tangible assets | 128,040 | 21,333 | 149,373 | |
| Investment property | 574,186 | 574,186 | ||
| Participations accounted for using the equity method |
1,147,975 | 231,123 | 1,379,098 | |
| Financial fi xed assets | 418,462 | -248,126 | 170,336 | |
| Development capital participations | 316,374 | -316,374 | 0 | |
| Available for sale fi nancial fi xed assets | 71,749 | 76 | 71,824 | |
| Receivables and warranties | 30,340 | 68,172 | 98,511 | |
| Non-current hedging instruments | 2,108 | 2,108 | ||
| Amounts receivable after one year | 122,589 | 122,589 | ||
| Finance lease receivables | 115,517 | 115,517 | ||
| Other receivables | 7,072 | 7,072 | ||
| Deferred tax assets | 24,347 | 24,347 | ||
| Banks - receivables from credit institutions and clients after one year |
2,407,744 | 2,407,744 | ||
| II. Current assets | 1,981,820 | 43,657 | 0 | 2,025,477 |
| Inventories | 19,722 | 2,789 | 22,511 | |
| Amounts due from customers under construction contracts |
22,670 | 7,225 | 29,894 | |
| Investments | 552,402 | 414 | 9,060 | 561,875 |
| Available for sale fi nancial assets | 549,800 | 414 | 9,060 | 559,273 |
| Financial assets held for trading | 2,602 | 2,602 | ||
| Current hedging instruments | 2,185 | 243 | 2,428 | |
| Amounts receivable within one year | 191,776 | 21,694 | 213,470 | |
| Trade debtors | 52,756 | 20,807 | 73,563 | |
| Finance lease receivables | 41,618 | 41,618 | ||
| Other receivables | 97,401 | 887 | 98,289 | |
| Current tax receivables | 1,879 | 1,052 | 2,931 | |
| Banks - receivables from credit institutions and clients within one year |
920,598 | 7,566 | 928,164 | |
| Cash and cash equivalents | 246,741 | 9,899 | 256,641 | |
| Time deposits for less than three months | 119,095 | 119,095 | ||
| Cash | 127,646 | 9,899 | 137,545 | |
| Deferred charges and accrued income | 23,847 | 584 | -16,869 | 7,562 |
| III. Assets held for sale | 11,264 | 0 | 11,264 | |
| TOTAL ASSETS | 6,975,524 | 48,959 | 0 | 7,024,483 |
| (€ 1,000) | 30-06-2013 | Change valuation rule Development Capital |
Reclassifi cations banking items |
30-06-2013 Restated |
|---|---|---|---|---|
| I. Total equity | 2,608,911 | 3,867 | 0 | 2,612,779 |
| Shareholders' equity - group share | 2,043,046 | -1,640 | 0 | 2,041,407 |
| Issued capital | 113,907 | 113,907 | ||
| Share capital | 2,295 | 2,295 | ||
| Share premium | 111,612 | 111,612 | ||
| Consolidated reserves | 1,939,216 | 2,032 | 1,941,248 | |
| Revaluation reserves | 6,851 | -3,672 | 3,180 | |
| Securities available for sale | 30,022 | 2,377 | 32,399 | |
| Hedging reserves | -19,900 | -259 | -20,159 | |
| Actuarial gains (losses) defi ned benefi t pension plans | -3,342 | -908 | -4,250 | |
| Translation differences | 71 | -4,882 | -4,811 | |
| Treasury shares (-) | -16,929 | -16,929 | ||
| Minority interests | 565,865 | 5,507 | 571,372 | |
| II. Non-current liabilities | 1,167,432 | 10,885 | 0 | 1,178,317 |
| Provisions | 5,094 | 1,368 | 6,462 | |
| Pension liabilities | 4,296 | 9 | 4,305 | |
| Deferred tax liabilities | 11,282 | 11,282 | ||
| Financial debts | 350,943 | 9,508 | -81,301 | 279,149 |
| Bank loans | 266,969 | 266,969 | ||
| Subordinated loans | 83,741 | -81,301 | 2,440 | |
| Finance leases | 16 | 9,508 | 9,523 | |
| Other fi nancial debts | 217 | 217 | ||
| Non-current hedging instruments | 25,778 | 25,778 | ||
| Other amounts payable after one year | 7,540 | 7,540 | ||
| Banks - debts to credit institutions, clients & securities |
762,500 | 81,301 | 843,801 | |
| III. Current liabilities | 3,199,181 | 34,206 | 0 | 3,233,387 |
| Provisions | 77 | 77 | ||
| Pension liabilities | 184 | 184 | ||
| Financial debts | 239,940 | 1,268 | -3,202 | 238,006 |
| Bank loans | 93,444 | 93,444 | ||
| Subordinated loans | 3,202 | -3,202 | 0 | |
| Finance leases | 7 | 1,268 | 1,275 | |
| Other fi nancial debts | 143,287 | 143,287 | ||
| Current hedging instruments | 3,683 | 3,951 | 7,634 | |
| Amounts due to customers under construction contracts |
2,887 | 12,517 | 15,404 | |
| Other amounts payable within one year | 62,669 | 18,556 | 81,226 | |
| Trade payables | 34,987 | 11,535 | 46,522 | |
| Advances received on construction contracts | 2,017 | 0 | 2,017 | |
| Amounts payable regarding remuneration and social security | 13,556 | 6,922 | 20,478 | |
| Other amounts payable | 12,109 | 99 | 12,208 | |
| Current tax payables | 8,163 | 1,256 | 9,419 | |
| Banks - debts to credit institutions, | 2,838,861 | 28,171 | 2,867,032 | |
| clients & securities | ||||
| Accrued charges and deferred income | 42,717 | 609 | -28,920 | 14,406 |
| IV. Liabilities held for sale | 0 | 0 | ||
| TOTAL EQUITY AND LIABILITIES | 6,975,524 | 48,959 | 0 | 7,024,483 |
| (€ 1,000) | 30-06-2013 | Changed valuation rule Development Capital |
Reclassifi cations banking items |
30-06-2013 Restated |
|---|---|---|---|---|
| I. Cash and cash equivalents, opening balance | 158,213 | 13,571 | 171,784 | |
| Profi t (loss) from operating activities | 70,618 | 11,514 | 3,289 | 85,421 |
| Reclassifi cation 'Profi t (loss) on disposal of assets' to cash fl ow from divestments |
-34,944 | -14,345 | -49,289 | |
| Dividends from participations accounted for using the equity method | 21,370 | 4,323 | 25,693 | |
| Other non-operating income (expenses) | 21 | -6 | 15 | |
| Income taxes | -7,800 | -307 | -8,107 | |
| Non-cash adjustments | ||||
| Depreciation | 5,088 | 1,095 | 6,183 | |
| Impairment losses | 1,055 | 160 | 1,215 | |
| Share based payment | 620 | 26 | 646 | |
| Profi t (loss) on assets/liabilities designated at fair value through profi t and loss |
-423 | -423 | ||
| (Decrease) increase of provisions | 230 | -280 | -50 | |
| (Decrease) increase of deferred taxes | 1,733 | 35 | 1,768 | |
| Other non-cash expenses (income) | 858 | -93 | 3,348 | 4,113 |
| Cash fl ow | 58,426 | 2,123 | 6,637 | 67,185 |
| Decrease (increase) of working capital | 65,090 | -4,330 | -1,051 | 59,709 |
| Decrease (increase) of inventories and construction contracts | 2,507 | -2,615 | -108 | |
| Decrease (increase) of amounts receivable | -14,364 | 3,587 | -10,777 | |
| Decrease (increase) of receivables from credit institutions and clients (banks) | -106,978 | -106,978 | ||
| Increase (decrease) of liabilities (other than fi nancial debts) | -19,137 | -5,026 | -24,163 | |
| Increase (decrease) of debts to credit institutions, clients & securities (banks) | 204,543 | -1,051 | 203,492 | |
| Decrease (increase) other | -1,482 | -276 | -1,758 | |
| CASH FLOW FROM OPERATING ACTIVITIES | 123,516 | -2,207 | 5,586 | 126,894 |
| Investments | -208,784 | -803 | 0 | -209,587 |
| Acquisition of intangible and tangible assets | -17,269 | -803 | -18,072 | |
| Acquisition of investment property | -3,567 | -3,567 | ||
| Acquisition of fi nancial fi xed assets | -49,344 | -49,344 | ||
| New amounts receivable | -6,281 | -6,281 | ||
| Acquisition of investments | -132,323 | -132,323 | ||
| Divestments | 259,118 | 11 | 0 | 259,129 |
| Disposal of intangible and tangible assets | 252 | 252 | ||
| Disposal of investment property | 25,926 | 25,926 | ||
| Disposal of fi nancial fi xed assets | 105,796 | 105,796 | ||
| Reimbursements of amounts receivable | 23,035 | 11 | 23,046 | |
| Disposal of investments | 104,110 | 104,110 | ||
| CASH FLOW FROM INVESTING ACTIVITIES | 50,334 | -792 | 0 | 49,542 |
| Financial operations | ||||
| Interest received | 9,915 | -8,366 | 1,549 | |
| Interest paid | -6,611 | 1,729 | -4,882 | |
| Other fi nancial income (costs) | -3,307 | 60 | -3,247 | |
| Decrease (increase) of treasury shares | -947 | -947 | ||
| (Decrease) increase of fi nancial debts | -55,343 | -568 | 1,051 | -54,860 |
| Distribution of profi ts | -55,349 | -55,349 | ||
| Dividends paid to minority interests | -15,351 | -185 | -15,536 | |
| CASH FLOW FROM FINANCIAL ACTIVITIES | -126,994 | -693 | -5,586 | -133,273 |
| II. Net increase (decrease) in cash and cash equivalents | 46,856 | -3,693 | 0 | 43,163 |
| Change in consolidation scope or method | 30 | 30 | ||
| Capital increase Leasinvest Real Estate (minorities) | 41,976 | 41,976 | ||
| Impact of exchange rate changes on cash and cash equivalents | -334 | 21 | -313 | |
| III. Cash and cash equivalents - ending balance | 246,741 | 9,900 | 0 | 256,641 |
The consolidated financial statements of Ackermans & van Haaren are prepared in accordance with the International Financial Reporting Standards (IFRS) and IFRIC interpretations effective on 30 June 2014, as approved by the European Commission. The applied accounting principles have not changed since the end of 2013, except for IFRS 10, 11 and 12. IFRS 10 "Consolidated Financial Statements", IFRS 11 "Joint Arrangements" and IFRS 12 "Disclosure of Interests in Other Entities" became effective as of 1 January 2014. The application of IFRS 10 and IFRS 11 has no impact on the consolidation scope of AvH, since the control or joint control defined by AvH is already in line with the amended IFRS rules. Furthermore, from the first-time application of IFRS, AvH has always used the equity method to account for the jointly controlled subsidiaries, based on the option offered by IAS 31.
On 11 February 2014, as a result of exceeding the 30% threshold of the voting shares of CFE, AvH launched a mandatory public bid for all publicly held CFE shares. The public bid was launched at the same price as the issue price of the capital increase of CFE, i.e. 45 euros per share. As was expected, only a limited number of shares were offered at the closing of the bid on 5 March 2014.
On 30 June 2014, Sofinim entered into an agreement with NMC to sell (to NMC) Sofinim's entire stake in that company. Accordingly, the stake in NMC was deconsolidated as of 30/06/2014.
Following the acquisition of treasury shares by Hertel, Sofinim's shareholding percentage increased by 1.45% to 47.99% of the ordinary shares.
As in 2013, Sofinim opted to acquire new Atenor shares as part of Atenor's choice dividend. These newly acquired shares are not included in the consolidation, and are reported under financial assets available for sale.
| (€ 1,000) | 30-06-2014 | 30-06-2013 |
|---|---|---|
| Participations accounted for using the equity method | ||
| Marine Engineering & Infrastructure | 139,784 | 402,576 |
| Private Banking | 493,321 | 463,268 |
| Real Estate, Leisure & Senior Care | 97,543 | 85,520 |
| Energy & Resources | 157,278 | 154,802 |
| Development Capital | 233,676 | 270,430 |
| AvH & subholdings | 3,754 | 2,502 |
| Total | 1,125,358 | 1,379,098 |
Ackermans & van Haaren is active in several segments, each (more or less) cyclically sensitive : dredging & infrastructure, oil & energy markets (DEME, Rent-A-Port), construction (CFE, Van Laere), evolution on the stock exchange and interest rates (Delen Private Bank, JM Finn & Co and Bank J.Van Breda & C°), real estate and interest rates evolution (Extensa & Leasinvest Real Estate), seasonal patterns (Groupe Financière Duval) and evolution of commodity prices (Sipef, Sagar Cements). Also the segments in which the Development Capital participations are active (ICT & Engineering, Real Estate Development, Retail & Distribution en Media & Printing), are confronted with seasonal or cyclical activities.
| I. Continued and discontinued operations | 30-06-2014 | 30-06-2013 |
|---|---|---|
| Net consolidated profi t, share of the group (€ 1,000) | 96,387 | 94,847 |
| Weighted average number of shares (1) | 33,141,003 | 33,142,404 |
| Basic earnings per share (€) | 2.91 | 2.86 |
| Net consolidated profi t, share of the group (€ 1,000) | 96,387 | 94,847 |
| Weighted average number of shares (1) | 33,141,003 | 33,142,404 |
| Impact stock options | 130,854 | 57,970 |
| Adjusted weighted average number of shares | 33,271,856 | 33,200,374 |
| Diluted earnings per share (€) | 2.90 | 2.86 |
| II. Continued activities | 30-06-2014 | 30-06-2013 |
| Net consolidated profi t from continued activities, share of the group (€ 1,000) | 96,387 | 94,847 |
| Weighted average number of shares (1) | 33,141,003 | 33,142,404 |
| Basic earnings per share (€) | 2.91 | 2.86 |
| Net consolidated profi t from continued activities, share of the group (€ 1,000) | 96,387 | 94,847 |
| Weighted average number of shares (1) | 33,141,003 | 33,142,404 |
| Impact stock options | 130,854 | 57,970 |
| Adjusted weighted average number of shares | 33,271,856 | 33,200,374 |
(1) Based on number of shares issued, adjusted for treasury shares in portfolio.
During the first half of 2014, AvH sold 15,000 treasury shares as part of the stock option plan for the staff. As at 30 June 2014, a total of 365,000 stock options were outstanding. To hedge this commitment, AvH (together with subsidiary Brinvest) had 343,500 treasury shares in portfolio.
Furthermore, 313,589 AvH shares were bought and 309,836 sold during the first six months of 2014 as part of the agreement that AvH had concluded with Kepler Cheuvreux to support the liquidity of the AvH share. Those transactions are directed entirely independently by Kepler Cheuvreux, but as they are carried out on behalf of AvH, the net purchase of 3,753 AvH shares in this context has an impact on AvH's equity.
| 30-06-2014 | 30-06-2013 | Treasury shares as part of the liquidity contract |
30-06-2014 | 30-06-2013 |
|---|---|---|---|---|
| 358,500 | 355,500 | Opening balance | 3,025 | 0 |
| 0 | 30,000 | Acquisition of treasury shares | 313,589 | |
| -15,000 | -32,000 | Disposal of treasury shares | -309,836 | |
| 343,500 | 353,500 | Ending balance | 6,778 | 0 |
In the first six months of 2014, Ackermans & van Haaren and its fully consolidated group companies recognized only limited impairments.
As at 30/06/2014, AvH has a shareholding in Groupe Flo with a higher carrying value than the value determined on the basis of the market price at 30/06/2014. In this case this is a long-term investment, with AvH being represented in the governing body. AvH believes that, based on its estimation, there is no question of impairment.
AvH holds a 48% stake in Hertel through its (Development Capital) subsidiary Sofinim. Hertel reported negative results in recent years. In the first quarter of 2014, a new management team was appointed under a new CEO. Based on the progress that can be observed, AvH believes that no impairment is necessary at the moment.
AvH derecognized 3.6 million euros (group share 2.2 million euros) worth of contingent liabilities in respect of its stake in CFE, given that these were contingent liabilities that have since been recognized by CFE itself.
For a description of the main risks and uncertainties, please refer to our annual report for the financial year ended 31/12/2013. The composition of Ackermans & van Haaren's portfolio changed only slightly during the first half of the 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.
The investments made by the group in the first six months are fairly limited in comparison to previous years: after having invested substantially in its fleet over the past few years, DEME moderated its capital spending in the first half of 2014, giving priority instead to a further reduction of its debt position.
By participating in risk committees, audit committees, technical committees etc. at DEME, CFE and Van Laere, AvH monitors the risks in its contracting division from a very early stage.
Once AvH will have collected the proceeds of the sale of NMC, the net financial position will become positive once more. In addition, AvH has access to confirmed and unused credit lines worth 272 million euros.
In the current market context, Ackermans & van Haaren is focusing more than ever on its role as proactive shareholder in the companies in which it has a stake.
No transactions with related parties took place during the first half of 2014 that have any material impact on Ackermans & van Haaren's results.
Furthermore, during the first six months there were no changes in the transactions with affiliated parties as described in the annual report for the 2013 financial year which could have material consequences for Ackermans & van Haaren's financial position or results.
On 29 July 2014, the restructuring was completed of the shareholding of Euro Media Group with the entry of PAI as new controlling shareholder. Sofinim has opted to retain its 22.5% stake in EMG and to work alongside PAI on the further development of that company. This transaction has had no cash impact, as Sofinim has simply maintained its position.
On 15 July 2014, Sagar Cements announced the sale of its shareholding in JV Vicat Sagar Cement for INR 4.35 billion to majority partner Vicat. This will earn Sagar Cements a substantial capital gain of around 33 million euros (AvH share: 6 million euros) in the third quarter.
Report of the statutory auditor to the shareholders of Ackermans & van Haaren NV on the review of the interim condensed consolidated financial statements as of 30 June 2014 and for the 6 month period then ended.
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 2014 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 11,111 million euros and a consolidated profit for the 6 month period then ended of 96 million euros. Management 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 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 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 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.
Based on our 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 2014, and of its financial performance and its cash flows for the 6 month period then ended in accordance with IAS 34.
Ernst & Young Reviseurs d'Entreprises SCCRL/Bedrijfsrevisoren BCVBA
Statutory auditor represented by
Marnix Van Dooren Partner
28 August 2014 On behalf of the company
Luc Bertrand Chairman of the Executive Committee Tom Bamelis Member of the Executive Committee
Piet Dejonghe Member of the Executive Committee Koen Janssen Member of the Executive Committee Piet Bevernage Member of the Executive Committee
Jan Suykens Member of the Executive Committee André-Xavier Cooreman Member of the Executive Committee
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.