Campine nv

Interim / Quarterly Report • Aug 28, 2023

Interim financial report 06/30/23

under IFRS -28 August 2023– 08:00

Obligation regarding periodical information as a consequence of the European transparency regulations. Statement regarding the information given in this interim financial report over 6 months 06/30/23

Financial results

During the first half year of 2023, Campine's sales revenue amounted to € 173 million, which is an increase of approximately 11% compared to the first semester of 2022. The EBITDA amounted to € 16.7 million, a rise of 24% compared to last year, which is the best result ever for Campine for the first six months of the year. The 2023 intermediate figures include our French entities that were acquired early July 2022 from the Recylex Group. The growth in sales is mostly contributed by the new French activities.

The rise in EBITDA is also mainly attributable to the French entities, whilst the Beerse plant equalled the good results of 2022. "In addition to the integration work in the new French entities, we were quite agile to steer the business of our Specialty Chemicals division during difficult general economical circumstances with a substantial drop in demand for chemicals and consequently a collapse of the prices" explains CEO De Vos. Campine managed however to maintain its profit margins in this division and was able to benefit from a strong lead price and favourable conditions in the market for scrap batteries in its Circular Metals division. "Compared to last year, profitability is now more coming from lead battery recycling, which shows that our diversification strategy is paying off!" adds De Vos.

Results per division/segment

Specialty Chemicals division

Market and Operations

• The turnover in the Specialty Chemicals division amounted to € 68.3 million, a global decrease of almost 10% compared to 2022 and a reduction of approximately 20% for the Beerse perimeter. This drop is due to reduced sales and lower metal prices. The turnover contribution of the French activities reached approximately € 7.5 million.
• The EBITDA fell to € 3.8 million (2022: € 6.2 million).
• The FR Masterbatches BU, which produces specialized fire-retardant compounds for plastics and textiles, even experienced a drop in demand of more than 30%, but nevertheless continued to contribute positively to the EBITDA.

More detailed info can be found in the previous table and notes 6.4: Operating segments.

Circular Metals- division

Market and Operations

• The turnover augmented to € 125.2 million (+33% compared to 2022), an increase that can be almost fully allocated to the € 34 million turnover of the French activities.
• The EBITDA rose to € 12.9 million compared to € 7.3 million in 2022.

More detailed info can be found in the previous table and notes 6.4: Operating segments.

Outlook 2023

Campine is once again anticipating a particularly good result for 2023, possibly matching the 2022 record figures. This will of course depend on the evolution of metal prices and the revival of the demand for chemical products.

We expect that the drop in demand In the Specialty Chemicals division has reached its bottom. Most safety stocks throughout the supply chain seem back to historical lows and a return to normal demands is expected soon. Antimony prices started to increase again as of mid August.

The price of lead on the London Metal Exchange experienced a small dip in July, but we expect relative stability due to balanced supply and demand. Better commercial conditions make it possible to offset the increased costs due to inflation. So we expect a strong year for the Circular Metals division.

Unaudited condensed consolidated interim financial report

1. Condensed consolidated income statement

'000 eur	Notes	06/30/2023	06/30/2022
Revenue from contracts with customers	6.4	172 762	155 606
Other operating income	6.5	1 179	1 244
Raw materials and consumables used		-135 742	-127 104
Employee benefits expense		-11 499	-8 437
Depreciation and amortisation expense	6.8/9/15	-3 480	-2 458
Changes in restoration provision		-120	-
Other operating expenses	6.5	-10 635	-8 116
Operating result (EBIT)		12 465	10 735
Investment revenues		2	-
Hedging results	6.13	783	334
- Closed Hedges		143	-133
- Change in open position		640	467
Net finance costs		-593	-229
Net financial result		192	105
Result before tax (EBT)		12 657	10 840
Income tax expense	6.6	-3 223	-2 759
Result for the period (EAT)		9 434	8 081
Attributable to: equity holders of the parent
		9 434	8 081
RESULT PER SHARE (in eur) (basic and diluted)		6,29	5,39
Number of shares		1 500 000	1 500 000

2. Condensed consolidated comprehensive income for the period

'000 eur	06/30/2023	06/30/2022
Result for the period	9 434	8 081
Other comprehensive income:
Comprehensive income to be reclassified to the profit or loss statement in the future	-	-
Comprehensive income not to be reclassified to the profit or loss statement in the future (actuarial results of retirement benefit obligations) net of tax	-	-
Total result for the year	9 434	8 081
Attributable to: equity holders of the parent	9 434	8 081

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation)

Adding the EBITDA allows to focus more on the importance of cash and should not influence negatively a decision on investments for future growth.

Calculation EBITDA:

'000 eur	06/30/2023	06/30/2022
Result before tax (EBT)	12 657	10 840
Finance costs/Investement revenues	591	229
Depreciation and amortisation expense	3 480	2 458
EBITDA	16 728	13 527

3. Condensed consolidated balance sheet

'000 eur	Notes	06/30/2023	12/31/2022
ASSETS
Non-current assets
Property, plant and equipment	6.8	32 151	32 974
Right-of-use assets	6.15	250	392
Intangible assets	6.9	924	568
Deferred tax assets		57	166
Current assets		33 382	34 100
Inventories	6.10	60 254	52 036
Trade receivables	6.11	43 002	35 619
Other receivables	6.12	1 492	2 873
Derivatives	6.13	7	-
Cash paid in escrow	6.14	-	57
Cash and cash equivalents	6.4	2 101	2 908
		106 856	93 493
TOTAL ASSETS		140 238	127 593
EQUITY AND LIABILITIES
Capital and reserves
Share capital		4 000	4 000
Legal reserves		400	400
Retained results		60 744	55 150
Equity attributable to equity holders		65 144	59 550
Total equity		65 144	59 550
Non-current liabilities
Retirement benefit obligation		1 489	1 496
Deferred tax liabilities		587	741
Provisions	6.20	6 355	6 235
Bank loans	6.16	4 500	5 250
Obligations under leases	6.15	96	184
		13 027	13 906
Current liabilities Retirement benefit obligation		13	14
Trade payables	6.17	27 721	23 143
Other payables	6.18	6 450	5 091
Capital grants		1 157	1 249
Provisions for production waste		489	655
Derivatives	6.13	-	632
Current tax liabilities	6.6	2 388	1 200
Obligations under leases	6.15	154	208
Banc loans	6.16	2 250	3 000
Bank overdrafts and loans	6.16	6 066	7 994
Advances on factoring	6.16	15 379	10 951
		62 067	54 137
Total liabilities		75 094	68 043
TOTAL EQUITY AND LIABILITIES		140 238	127 593

4. Condensed consolidated statement of changes in equity

'000 eur	Share capital	Legal reserves	Retained results	Total
Balance on 31 December 2021	4 000	965	43 008	47 973
Total result for the period	-	-	8 081	8 081
Dividends and tantième	-	-	-4 290	-4 290
Balance on 30 June 2022	4 000	965	46 799	51 764
Balance on 31 December 2022	4 000	400	55 150	59 550
Total result for the period	-	-	9 434	9 434
Dividends and tantième	-	-	-3 840	-3 840
(note 6.7)
Balance on 30 June 2023	4 000	400	60 744	65 144

5. Condensed consolidated cash-flow statement

'000 eur	Notes	06/30/2023	06/30/2022
OPERATING ACTIVITIES
Result for the period (EAT)		9 434	8 081
Adjustments for:
Other gains and losses (hedging results)	6.13	-783	-334
Finance costs/Investement revenues		591	229
(Deferred) tax expenses	6.6	3 223	2 759
Depreciations and write-downs		3 480	2 458
Change in provisions (incl. retirement benefit)*		-51	-25
Change in inventory value reduction	6.10	-325	1 599
Operating cash flows before movements in
working capital		15 569	14 767
Change in inventories	6.10	-7 893	-10 126
Change in receivables	6.11/6.12	-6 002	-18 609
Change in trade and other payables	6.17/6.18	5 059	5 008
Cash generated from operations		6 733	-8 960
Hedging results		143	-133
Interest paid		-591	-229
Income taxes paid		-1 255	-112
Net cash (used in) / from operating activities		5 030	-9 434
INVESTING ACTIVITIES
Purchases of property, plant and equipment	6.8	-2 413	-2 871
Purchases of intangible assets	6.9	-499	-303
Net cash (used in) / from investing activities		-2 912	-3 174
FINANCING ACTIVITIES
Dividends paid and tantième paid	6.7	-3 840	-4 290
Repayments of borrowings	6.16	-1 500	-3 681
Repayments of obligations under leases	6.15	-142	-88
New bank loans raised	6.16	-	12 000
Change in cash paid in escrow	6.14	57	-4 280
Change in bank overdrafts	6.16	-1 928	939
Change in advances on factoring	6.16	4 428	12 252
Net cash (used in) / from financing activities		-2 925	12 852
Net change in cash and cash equivalents		-807	244
Cash and cash equivalents at the beginning of the
period		2 908	153
Cash and cash equivalents at the end of the
period		2 101	397

*The revaluation of net liabilities arising from defined benefit pension plans is carried out only once a year in the context of the closing of the financial year. The change in actuarial assumptions related to the inflation rate and discount rate as of June 30, 2023 as compared to December 31, 2022 is not significant and the impact of the change on the net liabilities related to defined benefit pension plans, as recognized as of December 31, 2022 , is intangible.

6. Notes to the condensed consolidated financial statements

6.1. General information

Campine nv (the Company) is a limited liability Company incorporated in Belgium. The addresses of the registered office and principal place of business are disclosed in note 6.4. The principal activities of the Company and its subsidiaries (the Group) are described in note 6.4.

6.2. Basis and significant accounting policies

The condensed financial statements have been prepared in accordance with International Accounting Standard (IAS) 34 Interim Financial Reporting as adopted by the EU.

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2022, except for the adoption of amended standards effective as of 1 January 2023. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Issued but not yet effective on 1 January 2023 Not yet approved by the EU on 17 July 2023:

• Amendments to IAS 1 Presentation of Financial Statements Classification of Liabilities as Current or Non-current (the 2020 amendments and 2022 amendments), effective 1 January 2024
• Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures, effective 1 January 2024
• Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback, effective 1 January 2024

The group is in the process of analysing the standards that will become applicable from 1 January, 2024, and will finalize this in the course of the second half of 2023.

The application of new international accounting standards that have become applicable as from 01/01/23 do not have a material impact:

• Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting policies, effective 1 January 2023
• Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates, effective 1 January 2023
• Amendments to IAS 12 International Tax Reform Pillar Two Model Rules
• Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction, effective 1 January 2023
• Amendments to IFRS 17 Insurance contracts: Initial Application of IFRS 17 and IFRS 9 Comparative Information, effective 1 January 2023
• IFRS 17 Insurance Contracts, effective 1 January 2023

6.3. Significant judgements and estimates

The basis of the estimates is consistent to our annual report 2022 under the heading "5. Notes to the consolidated financial statement for the year ended 12/31/2022 - point 5.3 "Judgements and use of estimates".

6.4. Segment information

6.4.1. Geographical information

The Group's manufacturing operations are located in Belgium, Nijverheidsstraat 2, 2340 Beerse. The group's manufacturing operations are located in Nijverheidsstraat 2, 2340 Beerse, Belgium; 300 avenue de l'Epie, 69400 Arnas France and 20 rue des Prés, 59161 Escaudoeuvres, France.

The following table provides an analysis of the Group's sales by geographical market.

	06/30/2023		06/30/2022
	'000 eur		'000 eur	%
Belgium	5 321	3,1%	5 287	3,4%
Germany	78 355	45,4%	49 885	32,1%
Switzerland	18 557	10,7%	16 859	10,8%
Italy	9 562	5,5%	9 994	6,4%
Romania	2 363	1,4%	6 978	4,5%
France	10 413	6,0%	6 185	4,0%
The Netherlands	3 625	2,1%	6 073	3,9%
Turkey	4 527	2,6%	1 839	1,2%
Poland	3 133	1,8%	3 052	2,0%
United Kingdom	1 998	1,2%	1 373	0,9%
Other European countries	4 923	2,8%	7 534	4,8%
North America	12 169	7,0%	24 277	15,6%
Asia	16 038	9,3%	15 721	10,1%
Others	1 777	1,0%	549	0,4%
	172 762	100%	155 606	100%

87% of the turnover of Circular Metals Segment was realised in Europe whereas 76% of the turnover of Specialty Chemicals was achieved in Europe.

Similar to previous years, turnover is recognized on the basis of the INCO terms stated on the invoice.

The turnover is not subject to seasonal effects.

6.4.2. Business segments

Campine has two operating segments, the "Speciality Chemicals" and "Circular Metals" divisions, each consisting of two business units (BU's) that reflect the main components of the activities. Most of the information provided to the CODM is prepared at both divisional and business unit level.

The battery breaker activities in France – which were acquired in July 2022 - are hosted in a new business unit called 'recycled Batteries' and are integrated in our Circular Metals division (formerly Metals Recycling division) as it is an upstream addition to its business. The plastics recycling company C2P became Campine 'recycled Polymers' business unit and is hosted in the Specialty Chemicals division, due to its overlap in customers and technology with our Flame Retardant Masterbatches BU (formerly Plastics BU) in Beerse.

The divisions are considered to be the IFRS 8 operating segments as the BU's are very intertwined so that all important decisions related to capital and resources are made at the level of the divisions. The main activities of the two segments are respectively:

Specialty Chemicals hosts all businesses which serve end-markets with chemical products and derivates. The manufacturing of antimony trioxide used as flame-retardant, polymerization catalyst and pigment reagent and the production of different types of polymer and plastic masterbatches. The Specialty Chemicals division comprises the business units (BU's) BU Antimony trioxide, BU FR Masterbatches and BU recycled Polymers.

Turnover in '000	BU Antimony	BU FR	BU recycled	Total Speciality
eur	trioxide	Masterbatches	Polymers	Chemicals
On 30 June 2023	42 523	18 271	7 539	68 333
On 30 June 2022	48 947	26 424	-	75 371
∆	-13,1%	-30,9%		-9,3%

The total (external and cross-business unit) turnover of the Specialty Chemicals Division represents a volume of 11 562 ton (30/06/22: 8 038 ton)(+44%). The split between external sales and cross-business unit sales can be found in the table further down in this section.

Circular Metals hosts the businesses in which metals are being recovered from industrial and postconsumer waste streams. The main activity is the manufacturing of lead alloys. To this business is added the growing activity of the recycling of other metals such as antimony and tin. This division comprises the business units (BU's) BU Lead, BU Metals Recovery and BU recycled Batteries.

Turnover in '000	BU Metals		BU recycled	Total Circular
eur	Recovery	BU Lead	Polymers	Metals
On 30 June 2023	8 995	81 802	34 375	125 172
On 30 June 2022	9 727	84 513	-	94 240
∆	-7,5%	-3,2%		32,8%

The total (external and cross-business unit) of the Circular Metals division represents a volume of 58 082x ton (30/6/22: 36 601 ton)(+59%). The split between external sales and crossbusiness unit sales can be found in the table further in this section.

There are two customers in Circular Metals division who represent more than 10% of the Group's turnover (in total 34%).

The column "unallocated" in the tables below mainly concerns matters related to our corporate activities which cannot be easily allocated to one of the two segments. This mainly concerns the building where our offices are located, the cash and VAT receivables. We also use it to show the elimination of our sales within the segment Circular Metals.

	Specialty	Circular
	Chemicals	Metals	Unallocated	Total
000 eur	06/30/2023	06/30/2023	06/30/2023	06/30/2023
REVENUE
External sales	68 333	104 429	-	172 762
Cross-business unit sales in the same	-	20 743	-20 743	-
segment
Total revenue	68 333	125 172	-20 743	172 762
RESULT
Segment operating result	2 558	9 907	-	12 465
Unallocated expenses				-
Operating result (EBIT)				12 465
Investment revenues			2	2
Hedging results			783	783
Other gains and losses				-
Finance costs			-593	-593
Result before tax				12 657
Income tax expense				-3 223

Result for the period 9 434

	Specialty	Circular
	Chemicals	Metals	Unallocated	Total
000 eur	06/30/2023	06/30/2023	06/30/2023	06/30/2023
OTHER INFORMATION
Capital additions	850	1 529	492	2 871
Depreciation and amortisation (incl.
right-of-use assets)	958	1 955	567	3 480
BALANCE SHEET
Assets
Fixed assets (incl. right-of-use
assets)	7 000	20 908	5 417	33 325
Deferred tax	-	-	57	57
Cash paid in escrow	-	-	-	-
Stocks	28 243	29 472	2 539	60 254
Trade receivables	21 334	20 957	711	43 002
Other receivables	-	-	1 492	1 492
Derivatives	-	7	-	7
Cash and cash equivalent	-	-	2 101	2 101
Total assets	56 577	71 344	12 317	140 238

	Specialty	Circular
	Chemicals	Metals	Unallocated	Total
000 eur	06/30/2022	06/30/2022	06/30/2022	06/30/2022
REVENUE
External sales	75 371	80 235	-	155 606
Cross-business unit sales in the same	-	14 005	-14 005	-
segment
Total revenue	75 371	94 240	-14 005	155 606
RESULT
Segment operating result	5 433	5 302		10 735
Unallocated expenses				-
Operating result (EBIT)				10 735
Investment revenues				-
Hedging results		334		334
Other gains and losses				-
Finance costs			-229	-229
Result before tax				10 840
Income tax expense				-2 759

Result for the period 8 081

	Specialty	Metals
	Chemicals	Recycling	Unallocated	Total
000 eur	12/31/2022	12/31/2022	12/31/2022	12/31/2022
OTHER INFORMATION
Capital additions	4 542	9 813	2 092	16 447
Depreciation and amortisation (incl.
right-of-use assets)	-1 506	-3 294	-959	-5 759
BALANCE SHEET
Assets
Fixed assets (incl. right-of-use
assets)	7 108	21 334	5 492	33 934
Deferred tax	-	-	166	166
Cash paid in escrow	-	-	57	57
Stocks	25 625	24 250	2 161	52 036
Trade receivables	19 382	17 850	- 1 613	35 619
Other receivables	-	-	2 873	2 873
Cash and cash equivalent	-	-	2 908	2 908
Total assets	52 115	63 434	12 044	127 593

6.5. Other operating expense and income

'000 eur	06/30/2023	06/30/2022
OTHER OPERATING EXPENSE
Office expenses & IT	858	596
Fees	1 252	1 044
Insurances	633	287
Interim personnel	161	229
Expenses related to personnel	180	73
Carry-off of waste	2 056	2 153
Travel expenses	216	94
Transportation costs	3 785	2 224
Other purchase and sales expenses	321	376
Negative operating hedge result	146	428
Research & development	177	27
Renting	150	125
Subscriptions	161	149
Advertising - publicity	77	45
Other taxes (unrelated to result)	124	108
Financial costs (other than interest)	215	139
Others	124	19
	10 636	8 116

The other operating costs for the first half of the year also include the costs related to our French sites that have been part of the Campine group since 07/07/2022. As a result, various costs have also increased sharply.

'000 eur	06/30/2023	06/30/2022
OTHER OPERATING INCOME
Positive operating hedge result	114	543
Finance income (other than interest)	142	379
Renting	6	40
Claims	418	3
Subsidies	270	96
Produced assets - own construction	101	103
Recuperation of costs from third parties	80	61
Others	48	19
	1 179	1 244

Finance income is the net result of the + and – foreign exchange rates. If the net result is negative, it will be integrated in the table Other operating expense in the line Financial costs.

6.6. Income tax expense

'000 eur	06/30/2023	06/30/2022
Current tax	-3 268	-2 617
Deferred tax	45	-142
Income tax expense for the year	-3 223	-2 759

Domestic income tax is calculated at 25% (30/06/22: 25%) of the estimated assessable result for the financial year. On the balance sheet, this translates to a current tax debt of € 2 388K.

6.7. Dividend paid during the period

In 2023 a total dividend of € 3.750 mio (which is € 2.5 gross per share) - as well as a tantième of € 0.09 mio - were distributed related to the financial year 2022. In 2022 a total dividend of € 4.200 mio (which is € 2.8 € gross per share) and a tantième of € 0.09 mio were distributed based on the 2021 result.

6.8. Property, plant and equipment

	Land	Properties	Fixtures
	and	under	and
'000 eur	buildings	construction	equipment	Total
COST OR VALUATION
On 31 December 2022	23 473	246	93 313	117 032
Additions	151	157	2 105	2 413
Transfers	-	-222	222	-
Disposals	-	-	-	-
On 30 June 2023	23 624	181	95 640	119 445
ACCUMULATED DEPRECIATION
On 31 December 2022	13 805	-	70 253	84 058
Depreciation charge for the period	317		2 919	3 236
Eliminated on disposals	-	-	-	-
On 30 June 2023	14 122	-	73 172	87 294
CARRYING AMOUNT
On 30 June 2023	9 502	181	22 468	32 151
On 31 December 2022	9 668	246	23 060	32 974

The investments in fixtures and equipment are mainly the result of replacement investments in various departments

6.9. Intangible assets

	Patents, trademarks
'000 eur	and software
COST
On 31 December 2022	2 531
Additions	499
On 30 June 2023	3 030
ACCUMULATED DEPRECIATION
On 31 December 2022	1 963
Charge for the period	143
On 30 June 2023	2 106
CARRYING AMOUNT
On 30 June 2023	924
On 31 December 2022	568

The additions are mainly related to new IT infrastructure and systems in our French sites.

6.10. Inventories

'000 eur	06/30/2023	12/31/2022
Raw materials	15 533	15 060
Work-in-progress	19 942	12 314
Finished goods	24 779	24 662
	60 254	52 036

The inventory per 06/30/23 includes a value reduction of € 1 177K (31/12/22: € 1 502K) to value inventory at the lower of cost or market value. These value reductions are integrated in the income statement in Raw materials and consumables used.

6.11. Trade receivables

'000 eur	06/30/2023	12/31/2022
Amounts receivable from the sale of goods	43 002	35 619
	43 002	35 619

The total receivables amount from sales of goods of € 43 002K includes € 26 700K subject to commercial factoring by a credit institute. Based on these receivables, the credit institute deposits advances on the account of Campine € 15 379K per 06/30/23, see note 6.15. Bank borrowings) and afterwards collects the receivables itself. The credit risk stays at Campine and is covered by a credit insurance contract.

6.12. Other receivables

'000 eur	06/30/2023	12/31/2022
Other receivables	1 492	2 873
	1 492	2 873

Other receivables principally comprise amounts reclaimed V.A.T.

6.13. Derivatives

The table below summarises the fair value –unrealised – of the positions on the LME lead futures market where Campine purchases and sells forward lead via future contracts.

'000 eur	Fair value of current instruments	Underlying lead volumes (in ton)
On 30 June 2022 On 31 December 2022	403 -632	5 175 5 150
On 30 June 2023	7	4 775

The change in fair value in income statement amounts to (€ +783K (06/30/2022: € +334K). The fair value of current instruments is included in the balance sheet in derivatives assets for an amount of € 7K.

The classification of the fair value of the derivative instruments is level 1 (unadjusted quoted prices in an active market for identical assets or liabilities) in the "fair value hierarchy" of IFRS 13.

6.14. Cash paid in escrow

All accounts related to the acquisition of Recylex SA have been settled.

6.15. Lease obligations

Roll forward of right-of-use assets:

'000 eur	Company cars
On 31 December 2021	373
Additions	43
Depreciation charge for the period	-88
Disposals	-
On 30 June 2022	328
On 31 December 2022	392
Additions	37
Depreciation charge for the period	-101
Disposals	-78
On 30 June 2023	250
The related lease liabilities on the balance sheet consist of:
- Non-current lease liabilities	96
- Current lease liabilities	154

Leased assets relate to company cars. The repayments of operating lease liabilities during the first semester 2023 amount to € 107K. The depreciation charges reached € 101K and the financial charges amounted to € 7K.

6.16. Bank borrowings (lease obligations excluded)

'000 eur	06/30/2023	12/31/2022
Bank loans - investment credit	6 750	8 250
Bank overdrafts	6 066	7 994
Advances on factoring	15 379	10 951
	28 195	27 195
Repayable borrowings
Bank loans after more than one year	4 500	5 250
Bank loans within one year	2 250	3 000
Bank overdrafts	6 066	7 994
Advances on factoring	15 379	10 951
	28 195	27 195
Average interest rates paid
Bank loans - investment credit	2,09%	1,99%
Bank overdrafts	5,30%	2,86%
Advances on factoring	4,06%	1,73%

Bank loans are arranged at fixed interest rates. Other borrowings (bank overdrafts and advances on factoring for an amount of € 15 379K (31/12/22: € 10 951K) are arranged at floating rates, thus exposing the Group to an interest rate risk.

Op 30/06/23 the Group had € 20 497K of undrawn committed borrowing facilities (31/12/22: € 22 455K).

The credit agreements with our bankers contain a number of covenants – which are tested on an ongoing basis - based on equity, solvability and stock rotation. On 06/30/23 the Group complied adequately with all covenants:

• The equity (corrected for other assets and deferred taxes) amounted to 64 749 K€ as to a required minimum of € 22 000K.
• The solvency ratio (46%) complied to the imposed ratio of 30 %.
• With a stock rotation of 64 days Campine complied to the stock rotation ratio (< 90 days).

6.17. Trade payables

'000 eur	06/30/2023	12/31/2022
Trade creditors and accruals	27 721	23 143
	27 721	23 143

Trade creditors principally comprise amounts outstanding for trade purchases. The Board of Directors considers that the carrying amount of trade payables approximates their fair value as those balances are of a short-term nature. There are no trade payables older than 60 days (with exception of disputes), hence an age analysis is irrelevant.

6.18. Other payables and accruals

'000 eur	06/30/2023	12/31/2022
Other payables and accruals	6 450	5 091
	6 450	5 091

Other payables and accruals principally comprises amounts outstanding for ongoing costs.

6.19. Financial instruments

The major financial instruments of the Group are financial and trade receivables and payables, investments, cash and cash equivalents as well as derivatives.

Categories in the overview of the financial instruments below correspond with the following financial instruments:

• A. Financial assets or liabilities (including receivables and loans) held until maturity, at the amortised cost.
• B. Investments held until maturity, at the amortised cost.
• C. Assets or liabilities, held at the fair value through the profit and loss account.

The aggregate financial instruments of the Group correspond with levels 1 and 2 in the fair values hierarchy. Fair value valuation is carried out regularly.

• Level 1: unadjusted quoted prices in an active market for identical assets or liabilities.
• Level 2: the fair value based on other information, which can, directly or indirectly, be determined for the relevant assets or liabilities.
• Level 3 Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The valuation techniques regarding the fair value of the level 2 financial instruments are the following:

• The fair value of the other level 2 financial assets and liabilities is almost equal to their book value:
  • o either because they have a short-term maturity (like trade receivables and debts),
  • o or because they have a variable interest rate.
• For fixed-income payables, the fair value was determined using interest rates that apply to active markets.

The valuation techniques are unchanged compared to 12/31/22. There were no transfers between fair value levels in the first 6 months of 2023.

Overview of the financial instruments on 06/30/23:

'000 eur	Categories	Book value	Fair value	Level
II. Current assets
Trade receivables	A	43 002	43 002	2
Other receivables	A	1 492	1 492	3
Cash and cash equivalents	B	2 101	2 101	1
Derivatives	C	7	7	1
Total financial instruments on the
assets side of the balance sheet		46 602	46 602
I. Non-current liabilities
Interest-bearing liabilities	A	4 500	4 535	2
Obligations under leases	A	96	96	2
II. Current liabilities
Interest-bearing liabilities	A	23 695	23 695	2
Current trade debts	A	27 721	27 721	2
Current other debts	A	6 450	6 450	3
Obligations under leases	A	154	154	2
Derivatives	C	-	-	1
Total financial instruments on the
liabilities side of the balance sheet		62 616	62 651

Overview of the financial instruments as on 12/31/22:

'000 eur	Categories	Book value	Fair value	Level
II. Current assets
Trade receivables	A	41 331	41 331	2
Other receivables	A	947	947	3
Cash and cash equivalents	B	397	397	1
Derivatives	C	403	403	1
Total financial instruments on the
assets side of the balance sheet		43 078	43 078
I. Non-current liabilities
Interest-bearing liabilities	A	6 750	6 750	2
Obligations under leases	A	168	168	2
II. Current liabilities
Interest-bearing liabilities	A	26 708	26 708	2
Current trade debts	A	29 014	29 014	2
Current other debts	A	5 462	5 462	3
Obligations under leases	A	160	160	2
Derivatives	C	-	-	1
Total financial instruments on the
liabilities side of the balance sheet		68 262	68 262

6.20. Provisions and claims

'000 eur	Soil sanitation cost	Other	Total
On 31 December 2022	6 065	170	6 235
Additional provision	120	-	120
On 30 June 2023	6 185	170	6 355
'000 eur		06/30/2023	12/31/2022
Analysed as:
Current liabilities		-	-
Non-current liabilities		6 355	6 235
		6 355	6 235

Per 30/06/23 the provisions amounted to € 6 355K (12/31/22: € 6 235K). These relate mainly to the soil sanitation obligation on and around the site of the Group and to other environmental items. They were determined in compliance with the requirements of OVAM – by an independent study bureau.

Campine is subject to proceedings, lawsuits and other claims related to products and other matters. We are required to assess the likelihood of any adverse judgments or outcomes to these matters as well as potential ranges of probable and reasonably possible losses. A determination of the amount of liability to be recorded, if any, for these contingencies is made after careful analysis of each individual issue. There are currently no claims for which the probability of a cash outflow is considered possible or probable.

6.21. Related party transactions

All related party transactions are conducted on a business and arm's length base and in accordance with all legal requirements and the Corporate Governance Charter.

The remuneration policy as well as the effective remuneration of the directors of the previous financial year are stated in our annual report 2022 under the chapter "Remuneration report".

Trading transactions

During the period, group entities entered into the following trading transactions with related parties that are not members of the Campine Group:

• Purchase of lead waste from Hempel Legierungsmetalle GmbH for € 1 242K (06/30/22: € 384K).

Other transactions

The companies below passed through personnel and IT expenses to the Campine Group:

• F.W. Hempel Metallurgical: € 182K (06/30/22: € 166K).
• F.W. Hempel & Co Erze und Metalle: € 81K (06/30/22: € 81K).

In the first semester the Campine Group did not pass through personnel and IT expenses to:

• F.W. Hempel & Co Erze und Metalle: € 0K (06/30/22: € 8K).

6.22. Risks and uncertainties

Campine, together with all other companies, is confronted with a number of uncertainties as a consequence of worldwide developments. The management aims to tackle these in a constructive way.

Major risks and uncertainties inherent to the sector

Campine pays particular attention to the Company risks related and inherent to the sector as mentioned in the Corporate Governance Statement in our annual report 2022 under the heading 5.2 "Risk analysis and control activities".

With the exception of the macroeconomic impact Campine is not experiencing any considerable problem due to the war between Russia and Ukraine.

No significant changes occurred in the risks and uncertainties during the first semester 2023.

6.23. Rights and obligations not included in the balance sheet

Commercial commitments: There are firm commitments to deliver or receive metals to customers or from suppliers at fixed prices.

'000 eur	06/30/2023	12/31/2022
Commercial commitments for metals purchased (to be received)	11 563	6 729
Commercial commitments for metals sold (to be delivered)	14 935	17 336

7. Significant events after the close of the interim financial statements.

Between 06/30/23 and the date these interim financial statements were authorised for issue, important events occurred.

8. Declaration true and fair view

The Board of Directors declares that to their knowledge

• The non-audited interim consolidated financial report for the period of 6 months, ending on 06/30/23 gives a true and fair view of the financial position, the financial results of Campine nv, including its consolidated subsidiary ("the Group").
• The interim financial report for the 6 months, ending on 06/30/23, gives a true and fair view of the legal and regulatory required information and corresponds with the condensed interim consolidated financial statements.

9. Approval of interim financial statements

The interim financial statements were approved and authorised for issue by the Board of Directors of 08/25/23.

This information is also available in Dutch. Only the Dutch version is the official version. The English version is a translation of the original Dutch version.

For further information you can contact Karin Leysen (tel. no +32 14 60 15 49) (email: Karin.Leysen@campine.com).

EY Bedrijfsrevisoren EY Réviseurs d'Entreprises Borsbeeksebrug 26 B - 2600 Antwerpen (Berchem) Tel: +32 (0) 3 270 12 00 ey.com

Statutory auditor's report to the board of directors of Campine NV on the review of the condensed consolidated interim financial report as at 30 June 2023 and for the six-month period then ended

Introduction

We have reviewed the accompanying condensed consolidated statement of financial position of Campine NV as at 30 June 2023, the condensed consolidated statements of profit or loss, comprehensive income, changes in equity and cash flows for the six-month period then ended, and notes ("the condensed consolidated interim financial information"). The board of directors is responsible for the preparation and presentation of this condensed consolidated interim financial information in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this condensed consolidated interim financial information based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". 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 International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying condensed consolidated interim financial information as at 30 June 2023 and for the six-month period then ended is not prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.

Diegem, 25 August 2023 EY Bedrijfsrevisoren BV Statutory auditor represented by

Ludovic Deprez * Partner *Acting on behalf of a BV

24LDP0001