Campine nv

Interim / Quarterly Report • Sep 2, 2021

Interim financial report 06/30/21

under IFRS -27 September 2021 – 18:30

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 06/30/21

Financial results

During the first semester of 2021 Campine's revenue amounted to 106,3 mio €, which is an increase of 29% compared to the first semester of 2020 and 3% higher than the first semester of the 'pre-Corona year' 2019. The EBITDA reached 10,9 mio €, which is a record high result for the first semester. The increase in sales and profit is entirely related to the recovery of the economy following the breakthrough of the Corona pandemic and the increase of the raw material prices. "The demand for all our products was extremely high" explains CEO De Vos "Our concerns today are mainly to find enough raw materials at decent prices, although we can pass on the increased costs fairly easily" he adds. Especially in Campine's Specialty Chemicals division there are shortages for different materials, leading to higher prices.

Campine was also able to extend the efficiency improvements and savings implemented during last year's pandemic. Thanks to adequate measures there have been no negative consequences for Campine's employees related to Covid so far.

To facilitate a better comparison, results of the 'pre-Covid' year 2019 were added to the usual comparison with the prior (Covid) year 2020.

	06/30/21	06/30/20	06/30/19	∆ 21 vs 20	∆ 21 vs 19
Campine consolidated total
Revenue in mio €	106.3	82.7	102.9	29%	3%
EBITDA in mio €	10.9	1.9	5.0	488%	116%
Division Specialty Chemicals
Average antimony price in \$/ton	9,872	5,928	7,340	67%	34%
Turnover in mio €	47.2	34.2	43.7	38%	8%
EBITDA in mio €	6.3	1.7	0.5	278%	1113%
Sales volume in ton	7,959	6,709	7,445	19%	7%
Division Metals Recycling
Average lead price in €/ton	1,719	1,598	1,735	8%	-1%
Turnover in mio €	69.1	54.2	66.5	27%	4%
EBITDA in mio €	4.6	0.2	4.5	2433%	1%
Sales volume in ton	33,913	30,021	34,177	13%	-1%

2019 figures exclude reduction EC fine

2020 figures include maintenance shutdown in S1 2020

Results per division/segment

Division/segment Specialty Chemicals

Market and Operations

• The 2020 year-end rally of the antimony metal price continued at a higher pace in 2021. Antimony is the main raw material for Campine's Specialty Chemicals division. By the end of March prices reached the level of 12,000 USD/ton, which is double of the price level of mid-2020. This fast and steep increase is related to an uptake on the demand side and shortages on the supply side. Covid pandemic closures of antimony mines around the world caused ore supply to drop significantly, leading to shortages in antimony metal and ultimately to a relative scarcity of trioxide. This situation persists until today and is also fuelled by increased maritime transport costs, where prices are fivefold of last year.
• "Thanks to our diversified purchasing network Campine was able to secure enough metal." Explains Hans Vercammen, Division Director Specialty Chemicals "On top of this we were fortunate to start up our antimony recycling factory earlier this year: it already paid off, given the shortages and for sure the interesting price levels." Vercammen adds.
• In the Plastics business unit the main challenges were similar in trying to secure supplies of the different polymers and additives at reasonable prices. Campine is however able to pass on the material price increases to its customers.
• Sales revenue in the Specialty Chemicals division increased to 47.2 mio €, a growth with 38% from 2020 and 8% higher than in 2019. These higher revenues are mainly a result of a strong demand and higher sales prices of the antimony products.
• The EBITDA rose to 6.3 mio €, (compared to 1.7 mio € in 2020 and 0.5 mio € in 2019). This strong result is also supported by a stock value increase resulting from the higher prices.

More detailed info can be found in the previous table and notes 4: Operational segments.

Division/segment Metals Recycling

Market and Operations

• The demand for lead has been consistently high this year. Lead LME prices kept on fluctuating around the 1,650 €/ton level, but rallied to a level of 1,950 €/ton by the end of June.
• The production output of our Lead business unit suffered from advanced wear of a part of our equipment. Due to the increased productivity in recent years this part needs replacement sooner.
• The Metals Recovery activities, in which we recycle other metals, contributed extra to the revenue and profits thanks to high prices for gold, silver and tin.
• Sales volumes reached approx. 34,000 tons, which is 4,000 tons more than last year, but comparable to 2019.
• Sales revenue increased to 69.1 mio € (+27% versus 2020 and +4% versus 2019).
• The EBITDA amounted to 4.6 mio € compared to a break-even in 2020 and almost equal to 2019.

More detailed info can be found in the previous table and notes 4: Operational segments.

Outlook 2021

We can already mention that 2021 will be a strong year for Campine, surely if raw material prices remain on a high level. In all of our businesses we expect the positive market situation to extend "Market demand remains high, so we expect to run at full capacity for the remainder of 2021" according to CEO De Vos.

LME stocks in Europe and the USA continue to diminish, which keeps the lead LME price at a reasonable high level: it has been fluctuating around the 2,000 €/ton mark in recent weeks. It is expected that there will be a lead deficit this year on the world market. The price and high demand situation is also supported by the temporary fall out of Europe's largest lead producer in West Germany due to the flooding of early July.

In Campine's Specialty Chemicals the demand is also expected to remain high, as Asian (mainly Chinese) competitors have supply issues related to logistical limitations and high shipping costs.

Condensed consolidated interim financial report (non-audited)

Condensed consolidated income statement

'000 €	Notes	06/30/21	06/30/20
Revenue from contracts with customers	4	106,325	82,733
Other operating income	5	641	517
Raw materials and consumables used		-81,247	-69,724
Employee benefits expense		-7,639	-6,660
Depreciation and amortisation expense		-1,967	-1,530
Other operating expenses	5	-6,703	-5,229
Operating result (EBIT)		9,410	107
Hedging results:	13	-437	209
- Closed hedges		-129	585
		-308
- Change in open position			-376
Finance costs		-151	-119
Net financial result		-588	90
Result before tax (EBT)		8,822	197
Income tax expense	6	-2,226	-94
Result for the period (EAT)		6,596	103
Attributable to: Equity holders of the parent		6,596	103
RESULT PER SHARE (in €) basic & diluted		4.40	0.07

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

Adding the financial target 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 €	06/30/21	06/30/20
Result before tax (EBT)	8,822	197
Finance costs	151	119
Depreciation and amortisation expense	1,967	1,530
EBITDA	10,940	1,846

Condensed consolidated overview of the total result for the period

'000 €	06/30/21	06/30/20
Result for the period Other comprehensive income:	6,596	103
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)	-	-
Total result for the period	6,596	103

Attributable to: Equity holders of the parent 6,596 103

Condensed consolidated balance sheet

'000 €	Notes	06/30/21	12/31/20
ASSETS
Non-current assets
Property, plant and equipment	8	19,016	18,514
Right-of-use assets	15	425	402
Intangible assets Deferred tax assets	9	109 44	130 86
		19,594	19,132
Current assets
Inventories	10	35,260	26,345
Trade receivables	11	27,531	17,173
Other receivables	12	2,044	1,198
Derivatives	13	126	93
Cash and cash equivalents	4	943	190
		65,904	44,999
TOTAL ASSETS		85,498	64,131
EQUITY AND LIABILITIES
Capital and reserves
Share capital		4,000	4,000
Legal reserves		965	965
Other reserves and retained results		36,077	30,546
Equity attributable to equity holders of the parent		41,042	35,511
Total equity		41,042	35,511
Non-current liabilities
Retirement benefit obligation		1,166	1,176
Deferred tax liabilities		234	0
Provisions	18	1,135	1,135
Bank loans	14	2,625	4,125
Obligations under leases	15	250	234
		5,410	6,670
Current liabilities
Retirement benefit obligation		27	52
Trade payables	16	16,985	12,921
Other payables		3,588	2,973
Derivatives	13	340	0
Current tax liabilities		1,648	96
Obligations under leases	15	175	168
Bank overdrafts and loans	14	4,346	3,085
Advances on factoring	14	11,937	2,655
		39,046	21,950
Total liabilities		44,456	28,620
TOTAL EQUITY AND LIABILITIES		85,498	64,131

Condensed consolidated cash-flow statement

'000 €	Notes	06/30/21	06/30/20
OPERATING ACTIVITIES
Result for the period		6,596	103
Adjustments for:
Other gains and losses (hedging results)	13	437	-209
Finance costs		151	119
(Deferred) tax expenses of the total result	6	2,226	94
Depreciations		1,967	1,530
Change in provisions (incl. retirement benefit)		-34	-91
Change in inventory value reduction	10	146	-41
Operating cash-flows before movements in		11,489	1,505
Change in inventories	10	-9,061	-2,593
Change in receivables	11/12	-11,204	-708
Change in trade and other payables	16/17	4,679	496
Cash generated from operations		-4,097	-1,300
Hedging results		-129	585
Interest paid		-151	-119
Income taxes paid		-634	-358
Net cash (used in) / from operating activities		-5,011	-1,192
INVESTING ACTIVITIES Purchases of property, plant and equipment	8	-3,081	-3,381
Investment grants	8	703	-
Investment grants - deferred tax obligations		234	-
Net cash (used in) / from investing activities		-2,144	-3,381
FINANCING ACTIVITIES
Dividends and tantièmes paid	7	-1,065	-2,715
Repayments of borrowings	14	-1,500	-1,345
Repayments of obligations under leases	15	-70	-60
New bank loans raised		-	1,700
Change in bank overdrafts	14	1,261	-120
Change in advances on factoring	14	9,282	4,635
Net cash (used in) / from financing activities		7,908	2,095
Net change in cash and cash equivalents		753	-2,478
Cash and cash equivalents at the beginning of the year		190	2,685
Cash and cash equivalents at the end of the
period		943	207

'000 €	Share capital	Retained earnings	Attributable to equity holders of the parent	Total
Balance on 31 December 2019	4,000	31,491	35,491	35,491
Total result of the period	-	103	103	103
Dividends and tantièmes	-	-2,715	-2,715	-2,715
Balance on 30 June 2020	4,000	28,879	32,879	32,879
Balance on 31 December 2020	4,000	31,511	35,511	35,511
Total result of the period	-	6,596	6,596	6,596
Dividends and tantièmes
(see note 7)	-	-1,065	-1,065	-1,065
Balance on 30 June 2021	4,000	37,042	41,042	41,042

Condensed consolidated statement of changes in equity

Notes to the condensed consolidated financial statements

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 4. The principal activities of the Company and its subsidiaries (the Group) are described in note 4.

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 2020, except for the adoption of amended standards effective as of 1 January 2021. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

Became applicable for 2021:

• Amendments to IFRS 4 Insurance Contracts deferral of IFRS 9, effective 1 January 2021
• Amendments to IFRS 9 Financial Instruments, IFRS 7 Financial Instruments: Disclosures, IAS 39 Financial Instruments: Recognition and measurement, IFRS 4 Insurance contracts and IFRS 16 Leases- Interest Rate Benchmark Reform – Phase 2, effective 1 January 2021
• Amendments to IFRS 16 Leases Covid-19 related rent concessions beyond 30 June 2021, effective 1 April 2021

Issued but not yet effective on 1 January 2020:

• 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 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
• IFRS 17 Insurance Contracts, effective 1 January 2023
• Annual Improvements Cycle 2018-2020, effective 1 January 2022

The application of new international accounting standards that have become applicable as from 01/01/21 do not have a material impact. For the already approved new standards or interpretations which will become applicable afterwards, the management does not expect a material impact on the figures.

3. Significant judgements and estimates

The basis of the estimates is consistent to our annual report 2020 under the heading "5. Notes to the consolidated financial statement for the year ended 12/31/2020 - point 5.3 "Judgements and use of estimates".

4. Segment information

The Group's manufacturing operations are located in Belgium, Nijverheidsstraat 2, 2340 Beerse.

Geographical information

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

	06/30/21		06/30/20
	'000 €	%	'000 €	%
Belgium	3,417	3.2%	2,801	3.4%
Germany	39,488	37.2%	28,572	34.5%
Switzerland	9,786	9.2%	6,444	7.8%
Italy	9,034	8.5%	6,256	7.6%
France	4,553	4.3%	4,306	5.2%
Romania	5,393	5.1%	3,148	3.8%
The Netherlands	3,532	3.3%	2,871	3.5%
United Kingdom	776	0.7%	413	0.5%
Other European countries	8,252	7.8%	4,149	5.0%
North America	10,440	9.8%	7,193	8.7%
Asia	10,650	10.0%	16,128	19.5%
Others	1,003	0.9%	451	0.5%
	106,324	100.0%	82,732	100.0%

95% of the turnover of Metals Recycling Segment was realised in Europe whereas 69% of the turnover of Specialty Chemicals was achieved in Europe.

Business segments

Campine has two operational segments, called divisions. The main activities are:

• 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 BU Antimony and BU Plastics.

Turnover in '000 €	BU Antimony	BU Plastics	Total Speciality Chemicals
On 30 June 2021	31,151	16,078	47,229
On 30 June 2020	22,442	11,786	34,228
∆	39%	36%	38%

The total (external and cross-business unit) turnover of the Specialty Chemicals Division represents a volume of 7,959 ton (06/30/20: 6,709 ton) (+19%).The split between external sales and cross-business unit sales can be found in the table on the next page.

• 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 2021	6,927	62,180	69,107
On 30 June 2020	4,149	50,004	54,153
∆	67%	24%	28%

The total (external and cross-business unit) of the Metals Recycling Division represents a volume of 33,913 ton (06/30/20: 30,021 ton)(+13%). The split between external sales and cross-business unit sales can be found in the table on the next page.

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

	Specialty	Metals		Total
	Chemicals	Recycling	Unallocated
'000 €	06/30/21	06/30/21	06/30/21	06/30/21
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 Chemicals	Metals Recycling	Unallocated	Total
'000 €	06/30/21	06/30/21	06/30/21	06/30/21
OTHER INFORMATION
Capital additions	351	2,230	500	3,081
Depreciation and amortisation (incl.
right-of-use assets)	576	1,025	296	1,897
BALANCE SHEET
Assets
Fixed assets (incl. right-of-use assets)	4,034	11,973	3,543	19,550
Deferred tax	-	-	44	44
Cash restricted in its use	-	-	-	-
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

	Specialty	Metals
	Chemicals	Recycling	Unallocated	Total
'000 €	06/30/20	06/30/20	06/30/20	06/30/20
REVENUE
External sales	34,228	48,505	-	82,733
Cross-business unit sales in the same
segment	-	5,648	-5,648	-
Total revenue	34,228	54,153	-5,648	82,733
RESULT
Segment operating result	1,077	-970	-	107
Unallocated expenses				-
Operating result				107
Investment revenues				-
Hedging results		209		209
Other gains and losses				-
Finance costs			-119	-119
Result before tax				197
Income tax expense				-94
Result for the period				103

	Specialty	Metals
	Chemicals	Recycling	Unallocated	Total
'000 €	06/30/20	06/30/20	06/30/20	06/30/20
OTHER INFORMATION
Capital additions	857	1,961	643	3,461
Depreciation and amortisation (incl.
right-of-use assets)	449	772	309	1,530
BALANCE SHEET
Assets
Fixed assets (incl. right-of-use assets)	3,908	8,450	3,076	15,434
Deferred tax	-	-	459	459
Cash restricted in its use	-	-	-	-
Stocks	16,227	12,349	-	28,576
Trade receivables	7,678	7,530	-	15,208
Other receivables	-	-	731	731
Derivatives	-	22	-	22
Cash and cash equivalent	-	-	207	207
Total assets	27,813	28,351	4,473	60,637

5. Other operating expense and income

'000 €	06/30/21	06/30/20
OTHER OPERATING EXPENSE
Office expenses & IT	395	368
Fees	994	804
Insurances	187	169
Interim personnel	227	88
Expenses related to personnel	50	70
Carry-off of waste	2,078	1,559
Travel expenses	28	76
Transportation costs	1,427	1,013
Other purchase and sales expenses	338	260
Expenses on operational hedges	205	143
Trade receivables value reduction	-	-
Research and development	39	28
Renting	91	95
Subscriptions	238	253
Advertising - publicity	14	40
Other taxes (unrelated to the result)	128	73
Financial costs (other than interest)	150	126
Others	114	64
	6,703	5,229

The 'carry-off of waste' cost is reduced by the recovery of waste streams and often only a toll conversion fee is charged.

Some of these waste streams are now also sold externally. Consequently the carry-off cost increases while on the other hand these external sales generate additional income.

'000 €	06/30/21	06/30/20
OTHER OPERATING INCOME
Operating hedge results	379	162
Finance income (other than interest)	-	-
Production Assets - own constructions	156	197
Claims	-	52
Subsidies	63	94
Others	43	12
	641	517

6. Income tax expense

'000 €	06/30/21	06/30/20
Current tax	-2,184	-460
Deferred taxes	-42	366
Income tax expense for the period	-2,226	-94

Domestic income tax is calculated at 25% (06/30/20: 25%) of the estimated assessable result for the financial year.

7. Dividend paid during the period

In 2021 a total dividend of 0.975 mio € - as well as a tantième of 0.09 mio € - were distributed related to the financial year 2020. In 2020 a total dividend of 2.625 mio € and a tantième of 0.09 mio € were distributed based on the 2019-result.

8. Property, plant and equipment

		Properties
	Land &	under	Fixtures &
'000 €	buildings	construction	equipment	Total
COST OR VALUATION
On 31 December 2020	15,777	1,919	75,223	92,919
Additions	283	563	2,235	3,081
Transfers	-			0
Investment grants	-	-	-703	-703
On 30 June 2021	16,060	2,482	76,755	95,297
ACCUMULATED DEPRECIATION AND IMPAIRMENT
On 31 December 2020	13,045	-	61,360	74,405
Depreciation charge for the year	286	-	1,590	1,876
Eliminated on disposals	-	-	-	-
On 30 June 2021	13,331	-	62,950	76,281
CARRYING AMOUNT
On 31 December 2020	2,732	1,919	13,863	18,514
On 30 June 2021	2,729	2,482	13,805	19,016

9. Intangible assets

	Licences, patents &
'000 €	trademarks
COST
On 31 December 2020	1,927
Additions	-
On 30 June 2021	1,927
ACCUMULATED DEPRECIATION AND AMORTISATION
On 31 December 2020	1,797
Charge for the year	21
On 30 June 2021	1,818
CARRYING AMOUNT
On 31 December 2020	130
On 30 June 2021	109

10. Inventories

'000 €	06/30/21	12/31/20
Raw materials	11,650	9,252
Work-in-progress	5,418	6,409
Finished goods	18,192	10,684
	35,260	26,345

The inventory per 06/30/21 includes a value reduction of 449 K€ (12/31/20: 303 K€) to value inventory at the lower of cost and market value.

11. Trade receivables

'000 €	06/30/21	12/31/20
Amounts receivable from the sale of goods	27,531	17,173
	27,531	17,173

An allowance has been recorded for estimated irrecoverable amounts from the sale of goods of 1,011 K€ (12/31/20: 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 short-term.

The total amount from sales of goods of 27,531 K€ includes 19,771 K€ subject to commercial factoring by a credit institute. Based on these receivables, the credit institute deposits advances on the account of Campine 11,937 K€ per 06/30/21, see note 14. Bank borrowings) and afterwards collects the receivables itself. The credit risk stays at Campine and is covered by a credit insurance.

12. Other receivables

'000 €	06/30/21	12/31/20
Other receivables	2,044	1,198
	2,044	1,198

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

13. Derivatives

The table below summarises the net change in fair value – realised and unrealised – of the positions on the LME lead / tin futures market where Campine sells forward lead and tin via future contracts.

'000 €	Fair value of current instruments	Underlying open positions (tons)	Change in fair value in income statement
On 30 June 2020	-85	1,400	209
On 31 December 2020	93	1,600	300
On 30 June 2021	-214	1,600	437

The fair value of current instruments is included in the balance sheet in derivatives assets for an amount of 126 K€ and in derivatives liabilities for 340 K€.

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

14. Bank borrowings (lease obligations excluded)

'000 €	06/30/21	12/31/20
Bank loans - investment credit	5,625	7,125
Bank loans - tax financing	0	0
Bank overdrafts	1,346	85
Advances on factoring	11,937	2,655
	18,908	9,865
REPAYABLE BORROWINGS
Bank loans after more than one year	2,625	4,125
Bank loans within one year	3,000	3,000
Bank overdrafts	1,346	85
Advances on factoring	11,937	2,655
	18,908	9,865
AVERAGE INTREST RATES PAID
Bank loans - investment credit	1.50%	1.50%
Bank overdrafts	1.55%	1.57%
Advances on factoring	1.33%	1.33%

Bank loans are arranged at fixed interest rates. Other borrowings (bank overdrafts and advances on factoring for an amount of 13,283 K€ (12/31/20: 2,740 K€) are arranged at floating rates, thus exposing the Group to an interest rate risk.

On 06/30/21 the Group had available 16,669 K€ of undrawn committed borrowing facilities (12/31/20: 17,539 K€).

The credit agreements with our bankers contain a number of covenants, based on equity, solvability and stock rotation. On 06/30/21 the Group complied adequately with all covenants:

• The equity (corrected for other assets and deferred taxes) amounted to 41,926 K€ as to a required minimum of 22,000 K€.
• The solvency ratio (48.5%) complied to the imposed ratio of 30 %.
• With a stock rotation of 60 days Campine complied to the stock rotation ratio (< 90 days).

15. Lease obligations

'000 €
On 31 December 2019	355
Additions	80
Depreciation charge for the period	-60
Disposals	-
On 30 June 2020
On 31 December 2020	402
Additions	93
Depreciation charge for the period	-70
Disposals	-
On 30 June 2021	425
The related lease liabilities on the balance sheet consist of:
- Non-current lease liabilities	250
- Current lease liabilities	175

16. Trade payables

'000 €	06/30/21	12/31/20
Trade creditors	16,985	12,921
	16,985	12,921

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 short-term. There are no trade payables older than 60 days (with exception of disputes), hence an age analysis is irrelevant.

17. Other payables and accruals

'000 €	06/30/21 12/31/20
Other payables and accruals	3,588 2,973
	3,588 2,973

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

18. Provisions and claims

	Soil sanitation
'000 €	cost	Other	Total
On 31 December 2020	945	190	1,135
Additional provision	0	0	0
On 30 June 2021	945	190	1,135
'000 €		06/30/21	12/31/20
Analysed as:
Current liabilities		-	-
Non-current liabilities		1,135	1,135
		1,135	1,135

Per 06/30/21 The provisions amounted to 1,135 K€ (31/12/20: 1,135 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.

We are 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.

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.

Overview of the financial instruments as on 06/30/21:

'000 €	Category	Book value	Fair value	Level
II. Current Assets
Trade and other receivables	A	29,575	29,575	2
Cash and cash equivalents	B	943	943	2
Derivatives	C	126	126	1
Total financial instruments on the
assets side of the balance sheet		30,644	30,644
I. Non-current liabilities
Interest-bearing liabilities	A	2,625	2,625	2
Other non-current liabilities	A	-	-	2
Obligations under leases	A	250	250	2
Other financial liabilities	C	-	-	2
II. Current liabilities
Interest-bearing liabilities	A	16,283	16,283	2
Current trade and other debts	A	20,573	20,573	2
Obligations under leases	A	175	175	2
Derivatives	C	340	340	1
Total financial instruments on the
liabilities side of the balance sheet		40,246	40,246

Overview of the financial instruments as on 12/31/20:

'000 €	Category	Book value	Fair value	Level
II. Current Assets
Trade and other receivables	A	18,371	18,371	2
Cash and cash equivalents	B	190	190	2
Derivatives	C	93	93	1
Total financial instruments on the
assets side of the balance sheet		18,654	18,654
I. Non-current liabilities
Interest-bearing liabilities	A	4,125	4,125	2
Other non-current liabilities	A	-	-	2
Obligations under leases	A	234	234	2
Other financial liabilities	C	-	-	2
II. Current liabilities
Interest-bearing liabilities	A	5,740	5,740	2
Current trade and other debts	A	15,894	15,894	2
Obligations under leases	A	168	168	2
Derivatives	C	-	-	1
Total financial instruments on the
liabilities side of the balance sheet		26,161	26,161

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.

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.

20.Related party transactions

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

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 to Hempel Legierungsmetalle GmbH for 525 K€ (06/30/20: 621 K€).

Other transactions

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

• F.W. Hempel Metallurgical: 151 K€ (06/30/20: 121 K€).
• F.W. Hempel & Co Erze und Metalle: 88 K€ (06/30/20: 88 K€).

The Campine Group passed through personnel and IT expenses to:

• F.W. Hempel & Co Erze und Metalle: 8 K€ (30/06/19: 8 K€).

21. 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 2020 under the heading 5.2 "Risk analysis and control activities".

No significant changes occurred in the risks and uncertainties during the first semester 2021.

22. 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 €	06/30/21	12/31/20
Commercial commitments for metals purchased (to be received)	10,067	8,077
Commercial commitments for metals sold (to be delivered)	13,537	12,547

23. Important events after balance sheet date

Between 06/30/21 and the date these interim financial statements were authorised for issue, no important events occurred.

24. 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 06/30/21, 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 06/30/21, gives a true and fair view of the legal and regulatory required information and corresponds with the condensed interim consolidated financial statements.

25. Approval of interim financial statements

The interim financial statements were approved and authorised for issue by the Board of Directors of 09/02/21.

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 to the board of directors of Campine NV on the review of the condensed consolidated interim financial information as at 30 June 2021 and for the sixmonth period then ended (the original text of this report is in Dutch)

Introduction

We have reviewed the accompanying condensed consolidated balance sheet of Campine NV as at 30 June 2021, the condensed consolidated income statement, the condensed consolidated overview of the total result 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 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 2021 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, 2 September 2021

EY Bedrijfsrevisoren BV Statutory auditor Represented by

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