Campine nv

Interim / Quarterly Report • Aug 29, 2022

Interim financial report 06/30/22

under IFRS -29 August 2022 – 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 06/30/22

Financial results

During the first half of 2022, Campine realised a turnover of 155.6 mio €, which is an increase of 46% compared to the first semester of 2021. The EBITDA amounted to 13.5 mio €, which is again a record result for Campine for the first six months of the year.

The 46% increase in revenue is almost entirely attributable to the rise in metal prices, while sales volumes were only slightly higher. "Thanks to the continued high demand for our products and the growing profit contribution from the recent investments we continue our strong performance," explains CEO De Vos. "The second half of the year will be more difficult, but we may already expect a positive effect from our acquisition in France," adds De Vos.

Early July, Campine acquired selected assets of 2 battery recycling plants and the plastics recycling company C2P in the context of the insolvency proceedings opened for the French listed Recylex. "Due to the deal structure we were able to leave a lot of risks and liabilities within Recylex and neither did we take over the related overhead organisation. As a result we have to build many systems from scratch, but this forces us to dive immediately into the details of the business processes, a huge advantage!" concludes De Vos.

	06/30/2022	06/30/2021	∆ 22 vs 21
Campine consolidated total
Revenue in mio €	155.6	106.3	46%
EBITDA in mio €	13.5	10.9	24%
Division Specialty Chemicals
Average antimony price in \$/ton	13,918	9,872	41%
Turnover in mio €	75.4	47.2	60%
EBITDA in mio €	6.2	6.3	-2%
Sales volume in ton	8,038	7,959	1%
Division Metals Recycling
Average lead price in €/ton	2,072	1,719	21%
Turnover in mio €	94.2	69.1	36%
EBITDA in mio €	7.3	4.6	60%
Sales volume in ton	36,601	33,913	8%

Results per division/segment

Specialty Chemicals division

Market and Operations

• The turnover of the Specialty Chemicals division increased to 75.4 mio € (an increase of 60% compared to 2021).
• The EBITDA remained almost similar at 6.2 mio € (2021: 6.3 mio €).
• The 60% increase in turnover is mainly due to higher raw material prices, and increased transport and energy costs, which together with high inflation were passed on in the sales prices. Antimony metal prices reached an average of nearly \$14,000/ton in the first semester of the year, compared to less than \$10,000/ton a year earlier.
• The Plastics Masterbatch Activity, which produces specialized flame-retardant compounds for plastics and textiles, is increasingly contributing to profits, thanks to a series of operational improvements and the expansion into PVC mixtures, which starts running at higher volumes.
• The challenge remains to find sufficient raw materials and get them on time.

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

Metals Recycling division

Market and Operations

• Sales turnover rose to 94.2 mio € (+36% compared to 2021).
• The EBITDA increased to 7.3 mio € compared to 4.6 mio € in 2021.
• The 36% increase in turnover is also largely attributable to higher metal prices: LME lead metal cost an average of approx. 2,070 €/ton in the first half of the year, while this was only approx. 1,720 €/ton a year earlier. The high inflation is also here passed on in the sales premiums, although with a certain delay.
• The technical problems, which limited the output of the lead blast furnace in 2021, have been solved, bringing total sales volumes to approximately 36,600 tons, which is 8% more than last year.

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

Outlook 2022

Campine is again expecting a particularly good result for 2022. Depending on the metal price evolution, a similar result to 2021 is anticipated for the Beerse site. This does not take into account the results of the new Campine France in the 2nd half of the year and possible non-recurring costs or revenues resulting from the acquisition on 7 July 2022 of the ex-Recylex sites by Campine.

In the Specialty Chemicals division, pressure on margins is expected in the second semester of the year. Market demand is weakening, also because certain customers are now likely reducing part of their safety stock, which was previously built up for fear of shortages. The antimony price also shows a slight downward trend.

The price of lead on the London Metal Exchange rose again during the summer. In the Metals Recycling division demand remains good, but Campine, like many companies, is struggling with personnel shortages, which may have an impact on output volumes.

Unaudited condensed consolidated interim financial report

1. Condensed consolidated income statement

'000 €	Notes	06/30/2022	06/30/2021
Revenue from contracts with customers	6.4	155,606	106,325
Other operating income	6.5	1,244	641
Raw materials and consumables used		-127,104	-81,247
Employee benefits expense		-8,437	-7,639
Depreciation and amortisation expense	6.8/9/15	-2,458	-1,967
Other operating expenses	6.5	-8,116	-6,703
Operating result (EBIT)		10,735	9,410
Hedging results	6.13	334	-437
- Closed Hedges		-133	-129
- Change in open position		467	-308
Net finance costs		-229	-151
Net financial result		105	-588
Result before tax (EBT)		10,840	8,822
Income tax expense	6.6	-2,759	-2,226
Result for the period (EAT)		8,081	6,596
Attributable to: equity holders of the parent		8,081	6,596
RESULT PER SHARE (in €) (basic and diluted)		5.39	4.40

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 €	06/30/2022	06/30/2021
Result before tax (EBT)	10,840	8,822
Finance costs	229	151
Depreciation and amortisation expense	2,458	1,967
EBITDA	13,527	10,940

2. Condensed consolidated comprehensive income for the period

'000 €	06/30/2022	06/30/2021
Result for the period	8,081	6,596
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	8,081	6,596
	8,081	6,596

Attributable to: equity holders of the parent

3. Condensed consolidated balance sheet

'000 €		Notes 06/30/2022 12/31/2021
ASSETS
Non-current assets
Property, plant and equipment	6.8	23,327	22,770
Right-of-use assets	6.15	328	373
Intangible assets	6.9	350	103
Deferred tax assets		92	104
		24,097	23,350
Current assets
Inventories	6.1	53,930	45,403
Trade receivables	6.11	41,331	21,754
Other receivables	6.12	947	1,915
Derivatives	6.13	403	-
Cash paid in escrow	6.14	4,280	-
Cash and cash equivalents	6.4	397	153
		101,288	69,225
TOTAL ASSETS		125,385	92,575
EQUITY AND LIABILITIES
Capital and reserves
Share capital		4,000	4,000
Legal reserves		965	965
Retained results		46,799	43,008
Equity attributable to equity holders		51,764	47,973
Total equity		51,764	47,973
Non-current liabilities
Retirement benefit obligation		1,172	1,192
Deferred tax liabilities		292	219
Provisions	6.20	1,185	1,185
Bank loans	6.16	6,750	1,500
Obligations under leases	6.15	168	206
		9,567	4,302
Current liabilities
Retirement benefit obligation		26	31
Trade payables	6.17	29,014	24,251
Other payables	6.17	5,462	5,217
Derivatives	6.13	0	65
Current tax liabilities	6.6	2,684	121
Obligations under leases	6.15	160	167
Bank overdrafts and loans	6.16	6,810	2,802
Advances on factoring	6.16	19,898	7,646
		64,054	40,300
Total liabilities		73,621	44,602
TOTAL EQUITY AND LIABILITIES		125,385	92,575

4. Condensed consolidated statement of changes in equity

Balance on 30 June 2022	4,000	965	46,799	51,764
(note 6.7)	0	-	-4,290	-4,290
Dividends and tantième
Total result of the period	0	-	8,081	8,081
Balance on 31 December 2021	4,000	965	43,008	47,973
Balance on 30 June 2021	4,000	965	36,077	41,042
Dividends and tantième	0	-	-1,065	-1,065
Total result of the period	0	-	6,596	6,596
Balance on 31 December 2020	4,000	965	30,546	35,511
'000 €	capital	reserves	earnings	Total
	Share	Legal	Retained

5. Condensed consolidated cash-flow statement

'000 €	Notes	06/30/2022	06/30/2021
OPERATING ACTIVITIES
Result for the period (EAT)		8,081	6,596
Adjustments for:
Other gains and losses (hedging results)	6.13	-334	437
Finance costs		229	151
(Deferred) tax expenses	6.6	2,759	2,226
Depreciations and write-downs		2,458	1,967
Change in provisions (incl. retirement benefit)		-25	-34
Change in inventory value reduction	6.1	1,599	146
Operating cash flows before movements in
working capital		14,767	11,489
Change in inventories	6.1	-10,126	-9,061
Change in receivables	6.11/6.12	-18,609	-11,204
Change in trade and other payables	6.17/6.18	5,008	4,679
Cash generated from operations		-8,960	-4,097
Hedging results		-133	-129
Interest paid		-229	-151
Income taxes paid		-112	-634
Net cash (used in) / from operating activities		-9,434	-5,011
INVESTING ACTIVITIES
Purchases of property, plant and equipment	6.8	-2,871	-3,081
Purchases of intangible assets	6.9	-303	-
Investment grants - not included in the result		-	703
Investment grants - deferred tax obligations		-	234
Net cash (used in) / from investing activities		-3,174	-2,144
FINANCING ACTIVITIES
Dividends paid and tantième paid	6.7	-4,290	-1,065
Repayments of borrowings	6.16	-3,681	-1,500
Repayments of obligations under leases	6.15	-88	-70
New bank loans raised	6.16	12,000	-
Change in cash paid in escrow	6.14	-4,280	-
Change in bank overdrafts	6.16	939	1,261
Change in advances on factoring	6.16	12,252	9,282
Net cash (used in) / from financing activities		12,852	7,908
Net change in cash and cash equivalents		244	753
Cash and cash equivalents at the beginning of the
period		153	190
Cash and cash equivalents at the end of the
period		397	943

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 its 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 2021, except for the adoption of amended standards effective as of 1 January 2022. 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 2022:

• Amendments to IAS 1 Presentation of Financial Statements Classification of Liabilities as Current or Non-current, effective 1 January 2023
• 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 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 20232
• IFRS 17 Insurance Contracts, effective 1 January 2023

The group is in the process of analysing the standards that will become applicable from 1 January, 2023, and will finalize this in the course of the second half of 2022.

The application of new international accounting standards that have become applicable as from 01/01/21 do not have a material impact.

• Amendments to IAS 16 Property, plant and equipment Proceeds before intended use, effective 1 January 2022
• Amendments to IAS 37 Provisions, contingent liabilities and contingent assets onerous contracts—cost of fulfilling a contract, effective 1 January 2022
• Amendments to IFRS 3 Business combinations References to the conceptual framework, effective 1 January 2022
• Annual Improvements Cycle 2018-2020, effective 1 January 2022

6.3. Significant judgements and estimates

The basis of the estimates is consistent to our annual report 2021 under the heading "5. Notes to the consolidated financial statement for the year ended 12/31/2021 - 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 following table provides an analysis of the Group's sales by geographical market.

	06/30/2022		06/30/2021
	'000 €	%	'000 €	%
Belgium	5,287	3.4%	3,417	3.2%
Germany	49,885	32.1%	39,488	37.1%
Switzerland	16,859	10.8%	9,786	9.2%
Italy	9,994	6.4%	9,034	8.5%
Romania	6,978	4.5%	5,393	5.1%
France	6,185	4.0%	4,553	4.3%
The Netherlands	6,073	3.9%	3,532	3.3%
United Kingdom	1,373	0.9%	776	0.7%
Other European countries	12,424	8.0%	8,252	7.8%
North America	24,277	15.6%	10,440	9.8%
Asia	15,721	10.1%	10,650	10.0%
Others	549	0.4%	1,004	0.9%
	155,606	100%	106,325	100%

88% of the turnover of Metals Recycling Segment was realised in Europe whereas 59% of the turnover of Specialty Chemicals was achieved in Europe.

6.4.2. Business segments

The Campine Group has two operating segments, the "Speciality Chemicals" and "Metals Recycling" 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 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 division manufactures antimony trioxide used as flame-retardant, polymerization catalyst and pigment reagent and different types of polymer and plastic masterbatches. The Specialty Chemicals Division comprises the BU Antimony and BU Plastics.

Turnover in '000 €	BU Antimony	BU Plastics	Total Speciality Chemicals
On 30 June 2022	48,947	26,424	75,371
On 30 June 2021	31,151	16,078	47,229
∆	57.1%	64.3%	59.6%

The total (external and cross-business unit) turnover of the Specialty Chemicals Division represents a volume of 8,038 ton (06/30/21: 7,959 ton) (+1%).The split between external sales and cross-business unit sales can be found in the table further down in this section.

• Metals Recycling hosts the businesses in which metals are being recovered from industrial and post-consumer 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 now comprises the BU Lead and BU Metals Recovery

Turnover in '000 €	BU Metals Recovery	BU Lead	Total Metals Recycling
On 30 June 2022	9,727	84,513	94,240
On 30 June 2021	6,927	62,180	69,107
∆	40.4%	35.9%	36.4%

The total (external and cross-business unit) of the Metals Recycling Division represents a volume of 36,601 ton (06/30/21: 33,913 ton)(+8%). The split between external sales and crossbusiness unit sales can be found in the table further in this section.

There is one customer in Metals Recycling Division who represents more than 10% of the Group's turnover.

	Specialty	Metals
	Chemicals	Recycling	Unallocated	Total
'000 €		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
segment	-	14,005	-14,005	-
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 €		06/30/2022 06/30/2022	06/30/2022	06/30/2022
OTHER INFORMATION
Capital additions	599	1,299	1,276	3,174
Depreciation and amortisation (incl.
right-of-use assets)	578	1,410	470	2,458
BALANCE SHEET
Assets
Fixed assets (incl. right-of-use
assets)	4,093	14,704	5,208	24,005
Deferred tax	-	-	92	92
Cash paid in escrow	-	-	4,280	4,280
Stocks	34,071	19,859	-	53,930
Trade receivables	26,390	14,941	-	41,331
Other receivables	-	-	947	947
Derivatives	-	403	-	403
Cash and cash equivalent	-	-	397	397
Total assets	64,554	49,907	10,924	125,385

	Specialty	Metals
	Chemicals	Recycling	Unallocated	Total
'000 €		06/30/2021 06/30/2021	06/30/2021 06/30/2021
REVENUE
External sales	47,229	59,096	-	106,325
Cross-business unit sales in the same
segment	-	10,011	-10,011	-
Total revenue	47,229	69,107	-10,011	106,325
RESULT
Segment operating result	5,600	3,810	-	9,410
Unallocated expenses				-
Operating result (EBIT)				9,410
Investment revenues				-
Hedging results		-437		-437
Other gains and losses				-
Finance costs			-151	-151
Result before tax				8,822
Income tax expense				-2,226
Result for the period				6,596

	Specialty	Metals
	Chemicals	Recycling	Unallocated	Total
'000 €	06/30/2021 06/30/2021		06/30/2021 06/30/2021
OTHER INFORMATION
Capital additions	351	2,230	500	3,081
Depreciation and amortisation (incl.
right-of-use assets)	576	1,025	366	1,967
BALANCE SHEET
Assets
Fixed assets (incl. right-of-use
assets)	4,034	11,973	3,543	19,550
Deferred tax	-	-	44	44
Cash paid in escrow	-	-	-	-
Stocks	18,342	16,918	-	35,260
Trade receivables	17,417	10,114	-	27,531
Other receivables	-	-	2,044	2,044
Derivatives	-	126	-	126
Cash and cash equivalent	-	-	943	943
Total assets	39,793	39,131	6,574	85,498

The column "unallocated" 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 Metals Recycling, and for 30 June 2022, the payment into a special escrow account in anticipation of the French acquisition post 30 June 2022 (see also note 6.14), has also been included in the column "Unallocated".

6.5. Other operating expense and income

'000 €	06/30/2022	06/30/2021
OTHER OPERATING EXPENSE
Office expenses & IT	596	395
Fees	1,044	994
Insurances	287	187
Interim personnel	229	227
Expenses related to personnel	73	50
Carry-off of waste	2,153	2,078
Travel expenses	94	28
Transportation costs	2,224	1,427
Other purchase and sales expenses	376	338
Negative operating hedge result	428	205
Research & development	27	39
Renting	125	91
Subscriptions	149	238
Advertising - publicity	45	14
Other taxes (unrelated to result)	108	128
Financial costs (other than interest)	139	150
Others	19	114
	8,116	6,703

The additional increase in transport costs is a result of augmented prices as well as increased sea transport rates. These additional costs are passed on in our sales prices.

'000 €	06/30/2022	06/30/2021
OTHER OPERATING INCOME
Positive operating hedge result	543	379
Finance income (other than interest)	379	-
Renting	40	-
Claims	3	-
Subsidies	96	63
Produced assets - own construction	103	156
Recuperation of costs from third parties	61	20
Others	19	23
	1,244	641

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 €	06/30/2022	06/30/2021
Current tax	-2,617	-2,184
Deferred tax	-142	-42
Income tax expense for the year	-2,759	-2,226

Domestic income tax is calculated at 25% (06/30/21: 25%) of the estimated assessable result for the financial year. On the balance sheet, this translates to a current tax debt of 2.684 K€.

6.7. Dividend paid during the period

In 2022 a total dividend of 4.200 mio € (which is 2.8 € gross per share)- as well as a tantième of 0.09 mio € - were distributed related to the financial year 2021. In 2021 a total dividend of 0.975 mio € (which is 0.65 € gross per share) and a tantième of 0.09 mio € were distributed based on the 2020 result.

6.8. Property, plant and equipment

	Land	Properties	Fixtures
	and	under	and
'000 €	buildings	construction	equipment	Total
COST OR VALUATION
On 31 December 2021	16,951	386	83,946	101,283
Additions	30	1,003	1,838	2,871
Transfers	-	-17	17	-
Disposals	-	-	-	-
On 30 June 2022	16,981	1,372	85,801	104,154
ACCUMULATED DEPRECIATION
On 31 December 2021	13,338	-	65,176	78,514
Depreciation charge for the period	155	-	2,159	2,314
Eliminated on disposals	-	-	-	-
On 30 June 2022	13,493	-	67,335	80,828
CARRYING AMOUNT
On 30 June 2022	3,488	1,372	18,466	23,326
On 31 December 2021	3,613	386	18,770	22,769

6.9. Intangible assets

		Patents, trademarks
'000 €		and software
COST
On 31 December 2021		1,940
Additions
On 30 June 2022	303 2,243
ACCUMULATED DEPRECIATION
On 31 December 2021		1,837
Charge for the period		56
On 30 June 2022		1,893
CARRYING AMOUNT
On 30 June 2022		350
On 31 December 2021		103
Inventories
'000 €	06/30/2022	12/31/2021
Raw materials	14,546	12,738
Work-in-progress	11,563	9,603
Finished goods	27,821	23,062
	53,930	45,403

The inventory per 06/30/22 includes a value reduction of 2,235 K€ (12/31/21: 636 K€) 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 €	06/30/2022	12/31/2021
Amounts receivable from the sale of goods	41,331	21,754
	41,331	21,754

An allowance has been recorded for estimated irrecoverable amounts from the sale of goods of 1,011 K€ (12/31/21: 1,011 K€). This allowance has been determined on a case-by-case basis. The Board of Directors confirms that the carrying amount of trade and other receivables approximates their fair value as those balances are of a short-term nature.

The total receivables amount from sales of goods of 41,331 K€ includes 27,060 K€ subject to commercial factoring by a credit institute. Based on these receivables, the credit institute deposits advances on the account of Campine 19,899 K€ per 06/30/22, 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 €	06/30/2022	12/31/2021
Other receivables	947	1,915
	947	1,915

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.

On 30 June 2022	403	5,175
On 31 December 2021	-65	3,650
On 30 June 2021	-340	3,875
'000 €	current instruments	volumes (in ton)
	Fair value of	Underlying lead

The change in fair value in income statement amounts to (334 K€ (06/30/2021: -437 K€). The fair value of current instruments is included in the balance sheet in derivatives assets for an amount of 403 K€.

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

This is related to the provisional price paid for the selected assets of Recylex SA. (see note 7).

6.15. Lease obligations

Roll forward of right-of-use assets:

'000 €	Company cars
On 31 December 2020	402
Additions	93
Depreciation charge for the period	-70
Disposals	-
On 30 June 2021	425
On 31 December 2021	373
Additions	43
Depreciation charge for the period	-88
Disposals	-
On 30 June 2022	328
The related lease liabilities on the balance sheet consist of:
- Non-current lease liabilities	168
- Current lease liabilities	160

Leased assets relate to company cars. The repayments of operating lease liabilities during the first semester 2022 amount to 93 K€. The depreciation charges reached 88 K€ and the financial charges amounted to 5K€.

6.16. Bank borrowings (lease obligations excluded)

'000 €	06/30/2022	12/31/2021
Bank loans - investment credit	12,444	4,125
Bank overdrafts	1,116	177
Advances on factoring	19,898	7,646
	33,458	11,948
Repayable borrowings
Bank loans after more than one year	6,750	1,501
Bank loans within one year	5,694	2,625
Bank overdrafts	1,116	177
Advances on factoring	19,898	7,646
	33,458	11,948
Average interest rates paid
Bank loans - investment credit	1.77%	1.50%
Bank overdrafts	1.65%	1.58%
Advances on factoring	1.32%	1.32%

In the first semester 2022 Campine contracted new investment credits for an amount of 7,500 K€, repayable over a period of 5 years. In 2022, Campine also financed the prepayment of taxes over the 2021 result for an amount of 4.5 mio €. On 06/30/22, 2,319 K€ was in use, which will be repaid in the 2nd half of 2022. This additional financing needs to be seen in relation to the need for additional working capital.

Bank loans are arranged at fixed interest rates. Other borrowings (bank overdrafts and advances on factoring for an amount of 21,014 K€ (12/31/21: 7,823 K€) are arranged at floating rates, thus exposing the Group to an interest rate risk.

On 06/30/22 the Group had available 21,528 K€ of undrawn committed borrowing facilities (12/31/21: 17,359 K€).

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 06/30/22 the Group complied adequately with all covenants:

• The equity (corrected for other assets and deferred taxes) amounted to 51,614 K€ as to a required minimum of 22,000 K€.
• The solvency ratio (41%) complied to the imposed ratio of 30 %.
• With a stock rotation of 63 days Campine complied to the stock rotation ratio (< 90 days).

6.17. Trade payables

'000 €	06/30/2022	12/31/2021
Trade creditors and accruals	29,014	24,251
	29,014	24,251

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 €	06/30/2022	12/31/2021
Other payables and accruals	5,462	5,217
	5,462	5,217

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 12/31/21. There were no transfers between fair value levels in the first 6 months of 2022.

Overview of the financial instruments as on 06/30/22:

'000 €	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

Overview of the financial instruments as on 12/31/21:

'000 €	Categories	Book value	Fair value	Level
II. Current assets
Trade receivables	A	21,754	21,754	2
Other receivables	A	1,915	1,915	3
Cash and cash equivalents	B	153	153	1
Derivatives	C	-	-	1
Total financial instruments on the
assets side of the balance sheet		23,822	23,822
I. Non-current liabilities
Interest-bearing liabilities	A	1,500	1,500	2
Obligations under leases	A	206	206	2
II. Current liabilities
Interest-bearing liabilities	A	10,448	10,448	2
Current trade debts	A	24,251	24,251	2
Current other debts	A	5,217	5,217	3
Obligations under leases	A	167	167	2
Derivatives	C	65	65	1
Total financial instruments on the
liabilities side of the balance sheet		41,854	41,854

6.20. Provisions and claims

'000 €	Soil sanitation cost	Other	Total
Depreciation charge for the period Additional provision	995 -	190 -	1,185 -
On 30 June 2022	995	190	1,185
'000 €		06/30/2022	12/31/2021
Analysed as:
Current liabilities		-	-
Non-current liabilities		1,185	1,185
		1,185	1,185

Per 06/30/22 the provisions amounted to 1,185 K€ (12/31/21: 1,185 K€). 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 2021 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 384 K€ (06/30/21: 525 K€).

Other transactions

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

• F.W. Hempel Metallurgical: 166 K€ (06/30/21: 151 K€).
• F.W. Hempel & Co Erze und Metalle: 81 K€ (06/30/21: 88 K€).

The Campine Group passed through personnel and IT expenses to:

• F.W. Hempel & Co Erze und Metalle: 8 K€ (06/30/21: 8 K€).

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 2021 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 2022.

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 €	06/30/2022	12/31/2021
Commercial commitments for metals purchased (to be received)	15,860	10,026
Commercial commitments for metals sold (to be delivered)	17,685	18,378

7. Important events after balance sheet date

By a judgement dated 6 July 2022, the commercial court of Paris approved the purchase offer submitted by Campine to acquire selected assets of the French entity Recylex SA ("the Seller"). The judgement needs to be seen in light of the bankruptcy proceedings of the legal entity Recylex SA which was announced on 28 April 2022. As a result of the decision by the commercial court of Paris on 6 July 2022, Campine obtained full control of the aforementioned assets as from 7 July 2022. These consists primarily of the lead battery recycling plants located in Escaudoeuvres (near Cambrai) and Villefranche-sur-Saône (near Lyon), France, as well as the plastics recycling company C2P, a subsidiary of Recylex SA, operating on the same site in Villefranche, as well as selected related intangibles, inventory, and employees. Following the requirements of the commercial court of Paris, Campine was required to pay a provisional amount of 4.3 mio € in escrow on 10 June 2022 (we also refer to note 6.14 for more information in this respect). This is a provisional amount and although the Company does not expect a significant difference with the final price, the latter will depend on the adjustment negotiations with the Seller, which are expected to be finalized before the end of the calendar year.

The Company started with the purchase price allocation exercise and the identification of identifiable assets and liabilities, including any contingent liabilities. This exercise will be finished by the end of the calendar year. As a result, the Company cannot yet determine any goodwill or negative goodwill amount at this moment.

The acquisition is a substantial upstream expansion of Campine's battery recycling scope and adds recycled plastics as an additional material output. With the addition of the breaker activities in France, the Group also realizes a next step towards a higher material recovery rate in the waste recycling processes. For more information we refer to our press release of July 6th 2022 which can be found on our website.

Between 06/30/22 and the date these interim financial statements were authorised for issue, no other 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 06/30/22, 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 06/30/22, 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 08/26/22.

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).

Statutory auditor's report on the review of the condensed consolidated interim financial report as at 30 June 2022 and for the six-month period then ended

Introduction

We have reviewed the accompanying condensed consolidated balance sheet of Campine NV as at 30 June 2022, the condensed consolidated income statement, the condensed consolidated comprehensive income for the period, the condensed consolidated statement of changes in equity and the condensed consolidated cash-flow statement for the six-month period then ended, and notes ("the condensed consolidated interim financial report"). The board of directors is responsible for the preparation and presentation of this condensed consolidated interim financial report in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on the condensed consolidated interim financial report 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 report as at 30 June 2022 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.

Antwerp, 26 August 2022

EY Réviseurs d'Entreprises SRL/EY Bedrijfsrevisoren BV Statutory auditor represented by

Harry Everaerts* Partner *Acting on behalf of a BV/SRL

Ref: 23HEV0027