Campine nv

Earnings Release • Aug 29, 2022

Results first half 2022

Regulated information – 29 August 2022 – 08:00

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 per division/segment vision/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.

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.

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 nonrecurring 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.

Condensed consolidated income statement

'000 €	06/30/2022	06/30/2021
Revenue from contracts with customers	155,606	106,325
Other operating income	1,244	641
Raw materials and consumables used	-127,104	-81,247
Employee benefits expense	-8,437	-7,639
Depreciation and amortisation expense	-2,458	-1,967
Other operating expenses	-8,116	-6,703
Operating result (EBIT)	10,735	9,410
Hedging results	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	-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

Condensed consolidated balance sheet

'000 €	06/30/2022	12/31/2021
ASSETS
Non-current assets
Property, plant and equipment	23,327	22,770
Right-of-use assets	328	373
Intangible assets	350	103
Deferred tax assets	92	104
	24,097	23,350
Current assets
Inventories	53,930	45,403
Trade receivables	41,331	21,754
Other receivables	947	1,915
Derivatives Cash paid in escrow	403	- -
Cash and cash equivalents	4,280 397	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	1,185	1,185
Bank loans	6,750	1,500
Obligations under leases	168	206
	9,567	4,302
Current liabilities
Retirement benefit obligation	26	31
Trade payables Other payables	29,014 5,462	24,251 5,217
Derivatives	0	65
Current tax liabilities	2,684	121
Obligations under leases	160	167
Bank overdrafts and loans	6,810	2,802
Advances on factoring	19,898	7,646
	64,054	40,300
Total liabilities	73,621	44,602
TOTAL EQUITY AND LIABILITIES	125,385	92,575

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 €	Share capital Legal reserves		Retained earnings	Total

Condensed consolidated statement of changes in equity

Related party transactions

For more information regarding related party transactions, we refer to note 6.21 in the interim financial report.

Risks and uncertainties

During the first semester 2022 no significant changes occurred in the risks and uncertainties Campine is confronted with. We refer to note 6.22 of the interim financial report.

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.

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.

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.

Statutory auditor

The statutory auditor has confirmed that based on his review procedures, which have been finalized, nothing has come to his attention that gives reason to believe that significant adjustments are required to the financial information in the interim financial report.

Approval of interim financial statements

The interim financial statements were approved and authorised for issue by the Board of Directors of 08/26/22.

The full interim financial report is available on our website www.campine.com: Investors/shareholder information/financial reports and calendar/Financial reports/interim financial report 2021.

This information is also available in Dutch and French. Only the Dutch version is the official version. The English and French version are 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).