Campine nv

Interim / Quarterly Report • Aug 29, 2016

Interim financial report 30/06/2016

under IFRS

29/08/2016 – 17:01

Obligation regarding periodical information as a consequence of the European transparency regulations.

Statement regarding the information given in this interim financial report over the period of 6 months ending on 30 June 2016.

The Board of Directors declares that to their knowledge

• The interim consolidated financial report for the period of 6 months, ending on 30 June 2016, gives a true and fair view of the financial position, the financial results and cash flow of Campine nv, including its consolidated subsidiary (hereinafter: "the Group").
• The interim financial report for the 6 months, ending on 30 June 2016, gives a true and fair view of the legal and regulatory required information and corresponds with the condensed interim consolidated financial statements.

Condensed consolidated income statement

'000 €	Notes	30/06/2016	30/06/2015
Revenue		85.864	86.250
Other operating income	4	522	718
Raw materials and consumables used		- 71.818	- 71.121
Employee benefits expense		- 6.039	- 5.653
Depreciation and amortisation expense		- 1.304	- 1.402
Other operating expenses	4	- 5.237	- 4.947
Operating result		1.988	3.845
Investment revenues		-	-
Hedging results	11	317	- 421
- Closed hedges		573	- 964
- Change in open position		- 256	543
Finance costs		- 222	- 299
Result before tax		2.083	3.125
Income tax expense	5	- 731	- 926
Result for the period		1.352	2.199
Result for the period		1.352	2.199
Attributable to:
Equity holders of the parent		1.352	2.199
Non-controlling interest		-	-
		1.352	2.199
RESULT PER SHARE (in €)		0,90	1,47
Basic		0,90	1,47
Diluted		0,90	1,47

• During the first semester 2016 the Campine Group achieved a revenue of 85,864 K€, which is almost identical to the one of last year (2015: 86,250 K€).
• The operational result reached 1,988 K€, compared to 3,845 K€ in 2015 (-48 %). The actual result of closed hedge transactions amounted to a profit of 573 K€ (2015: -964 K€). The sum of these two items gives a result on 30 June 2016 almost similar to the one of 2015.
• Including the change in the fair value on the open position of the lead hedging on 30 June 2016 (required by IFRS standards), the total impact of the lead hedging resulted in a profit of 317 K€ (2015: loss of -421 K€).
• The remaining part of the net financial result amounted to a loss of -222 K€ compared to a loss of -299 K€ in 2015.
• Profit after taxes amounted to 1,352 K€, compared with a profit of 2,199 K€ in 2015 (-39 %).

Results per business unit:

• Lead: Turnover increased to 53,097 K€ (49,747 K€ in 2015) (+7 %). Our volume increased significantly to 30,141 mT (27,297 mT in 2015) (+10 %). The LME lead prices, which are the basis of our sales prices, moved between 1.468 €/mT and 1.731 €/mT in the first semester starting from 1.615 €/mT at the beginning of January to end June at 1.602 €/mT with a high around 1.731 €/mT at the beginning of March.
• Antimony: Although the sales volume improved steeply to 5,843 mT (4,575 mT in 2015) (+28 %), turnover declined significantly to 25,277 K€ (27,996 K€ in 2015) (-10 %). This is due to the fact that the metal price of the first quarter 2016 was considerably lower than the one of the year before.

Metal Bulletin prices fluctuated around 4.850 €/mT in the first quarter. As of April they gradually increased to 6.000 €/mT at the end of June 2016.

• Plastics: Turnover rose to 12,111 K€ (11,443 K€ in 2015) (+6 %), while the volume increased considerably to 3,080 mT (2,673 mT in 2015) (+15 %). The higher proportion of toll-work rather than direct sales, was the main reason for the decrease in our average sales price during the first semester.

Perspectives full year 2016

In the first six months, customer demand was in line with budget and we expect this trend to continue in the second semester. Both in antimony and lead the metal price trend is upwards, which normally has a positive effect on the margins.

The combination of these two factors should generate a positive result in the second semester.

Campine expects to achieve a better result in 2016 compared with 2015. The full year result can however be affected by the risks and uncertainties described in the following section.

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.

Campine pays particular attention to the company risks related and inherent to the sector:

• Fluctuations of the prices of raw materials and metal. Prices fluctuate as a result of a changing supply and/or demand of raw materials and end products, but also because of pure speculation.
• Fluctuations in availability and cost of the energy.
• Changes in regulations (Flemish, Belgian, European and global) in the field of environment and safety/health including legislation related to sale (REACH) and storage (SEVESO) of chemical products.
• Market risks include: interest risk, foreign exchange rate, price risk and credit risk.

Campine nv and Campine Recycling nv, hereinafter referred to as Campine, are subject to a proceeding initiated by the European Commission concerning alleged anti-competitive practices in the lead recycling sector. The European Commission has addressed a Statement of Objections to Campine, to which Campine has responded in writing and orally in 2015. The European Commission has asked further information in July 2016. Campine is expected to reply by Sep 1, 2016. Campine expects a decision before year end 2016. The European Commission has – at this stage – not imposed any financial penalty on Campine. As a consequence no provision was set up in June 30, 2016 accounts. It is our view that Campine has always acted in line with the European Commission's law and regulations implementing the circular economy strategy.

Chief Operating Decision Maker

Our Managing Director, Geert Krekel, is CODM (Chief Operating Decision Maker) of Campine.

'000 €	Notes	30/06/2016	30/06/2015
Result for the period		1.352	2.199
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
Total result for the period		1.352	2.199
Attributable to:
Equity holders of the parent		1.352	2.199
Non-controlling interest		-	-

Condensed consolidated overview of the total result for the period

Condensed consolidated balance sheet

'000 €	Notes	30/06/2016	31/12/2015
ASSETS
Non-current assets
Property, plant and equipment	7	6.608	6.688
Intangible assets	8	571	671
Deffered tax assets	5	101	56
Cash restricted in its use		275	275
		7.555	7.690
Current assets
Inventories	9	26.994	20.375
Trade and other receivables	10	30.363	25.634
Derivatives	11	99	-
Deferred tax assets		-	470
Cash and cash equivalents		171	80
		57.627	46.559
TOTAL ASSETS		65.182	54.249
EQUITY AND LIABILITIES
Capital and reserves
Share capital		4.000	4.000
Translation reserves		-	-
Retained earnings*		20.547	19.480
Equity attributable to equity holders of the parent		24.547	23.480
Total equity		24.547	23.480
Non-current liabilities
Retirement benefit obligation		852	892
Deferred tax liabilities	5	66	-
Bank loans	12	-	-
Provisions	15	1.125	1.125
		2.043	2.017
Current liabilities
Retirement benefit obligation		100	97
Trade and other payables	13	17.746	16.099
Derivatives	11	835	479
Current tax liabilities		240	-
Bank overdrafts and loans	12	6.065	3.293
Advances on factoring	12	13.606	8.784
Provisions		-	-
		38.592	28.752
Total liabilities		40.635	30.769
TOTAL EQUITY AND LIABILITIES		65.182	54.249

* Retained earnings consist of legal reserves (965 K€) and other reserves and retained results (19.582 K€).

Condensed consolidated cash-flow statement

'000 €	Notes	30/06/2016	30/06/2015
OPERATING ACTIVITIES
Result for the period		1.352	2.199
Adjustments for:
Other gains and losses (investment grants)		-	-
Investment revenues		-	-
Other gains and losses (hedging results)	11	- 317	421
Finance costs		222	299
(Deferred) tax expenses of the total result	5	731	926
Depreciation of property, plant and equipment		1.304	1.402
Gain on disposal of property, plant and equipment		-	-
Change in provisions (incl. retirement benefit)		- 37	33
Change in inventory value reduction		- 43	445
Change in trade receivables value reduction		-	257
Others		3	- 1
Operating cash flows before movements in working capital		3.215	5.981
Change in inventories		- 6.576	- 1.012
Change in receivables		- 4.729	- 6.271
Change in trade and other payables		1.647	- 678
Cash generated from operations		- 6.443	- 1.980
Hedging results		573	- 964
Interest paid		- 222	- 299
Income taxes paid		-	-
Net cash (used in) / from operating activities		- 6.092	- 3.243
INVESTING ACTIVITIES
Interest received		-	-
Proceeds on disposal of property, plant and equipment		-	-
Purchases of property, plant and equipment	7	- 1.126	- 685
Purchases of intangible assets	8	-	-
Net cash (used in) / from investing activities		- 1.126	- 685
FINANCING ACTIVITIES
Dividends and tantièmes paid	6	- 285	-
Repayments of borrowings	12	- 375	- 375
New bank loans raised
Change in cash restricted in its use
Change in bank overdrafts	12	3.147	699
Change in advances on factoring	12	4.822	3.621
Net cash (used in) / from financing activities		7.309	3.945
Net increase / (decrease) in cash and cash equivalents		91	17
Cash and cash equivalents at the beginning of the year Effect of foreign exchange rate changes		80 -	676 -
Cash and cash equivalents at the end of the period		171	693
Bank balances and cash		171	693

Condensed consolidated statement of changes in equity

	Share		Attributable to equityholders of the
'000 €	capital	Retained earnings	parent	Total
Balance on 31 December 2014	4.000	18.599	22.599	22.599
Total result of the period	-	2.199	2.199	2.199
Dividends and tantièmes (see note 6)	-	-	-	-
Balance on 30 June 2015	4.000	20.799	24.799	24.799
Total result of the period	-	- 1.034	- 1.034	1.034 -
Dividends and tantièmes (see note 6)	-	-	-	-
Balance on 31 December 2015	4.000	19.480	23.480	23.480
Total result of the period	-	1.352	1.352	1.352
Dividends and tantièmes (see note 6)	-	- 285	- 285	285 -
Balance on 30 June 2016	4.000	20.547	24.547	24.547

Notes to the condensed consolidated financial statements

1. Basis of preparation

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

2. Significant accounting policies

The same accounting policies, presentation and methods of computation are followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended on 31 December 2015.

There were no relevant changes in Standards and Interpretations applicable since 1 January 2016 that had a significant impact for the Group.

3. Segment information

For management purposes, the Group is organised into three operating divisions: Antimony, Plastics and Lead. These divisions are the basis on which the Group reports its primary segment information. Principal activities as follows:

• Antimony trioxide (Sb2O3) is used as a fire retardant in the textile, plastics, cable and pigment industries and is also applied as a high efficiency catalyst in PET-production.
• Our plastics activities enable us to offer predispersed and ready to use flame retardant masterbatches for processors and compounders to provide a dust-free handling and increase production efficiency.
• Our lead recycling business is based on converting lead from used car and truck batteries and industrial scrap into lead bullion and alloys that are marketed to battery and lead sheet producers (a.o. X-ray protection).

				Eliminations /
'000 €	Antimony	Plastics	Lead	others	Total
	30/06/2016	30/06/2016	30/06/2016	30/06/2016	30/06/2016
REVENUE
External sales inc. Sales to entities
within the Group	25.277	12.111	53.097	-	90.485
Sales to entities within the Group				- 4.621	-
Total revenue	25.277	12.111	53.097	- 4.621	85.864
Inter-segment sales are charged at
prevailing market prices
RESULT
Segment operating result	1.412	578	1.533	-	3.523
Unallocated expenses					- 1.535
Operating result					1.988
Investment revenues					-
Hedging results			317		317
Other gains and losses					-
Finance costs					- 222
Result before tax					2.083
Income tax expense					- 731
Result for the period					1.352
'000 €	Antimony	Plastics	Lead	Others	Total
	30/06/2016	30/06/2016	30/06/2016	30/06/2016	30/06/2016
OTHER INFORMATION
Capital additions 2016	383	116	307	318	1.124
Depreciation and amortisation	421	91	569	223	1.304
BALANCE SHEET
Assets
Fixed assets	2.436	430	2.637	1.676	7.179
Deffered tax				101	101
Cash restricted in its use			275		275
Stocks	8.631	3.558	13.888	917	26.994
Trade and other receivables	8.292	4.523	17.226	322	30.363
Derivatives Cash and cash equivalent			99	171	99 171
Total assets	19.359	8.511	34.125	3.187	65.182

The unallocated expenses concern mainly remuneration for general services, insurances, IT, costs for safety, health and environment, maintenance and depreciation of general intangible assets.

				Eliminations /
'000 €	Antimony	Plastics	Lead	others	Total
	30/06/2015	30/06/2015	30/06/2015	30/06/2015	30/06/2015
REVENUE
External sales incl. sales to entities
within the Group	27.996	11.443	49.747	- 397	88.789
Sales to entities within the Group				- 2.539	-
Total revenue	27.996	11.443	49.747	- 2.936	86.250
Inter-segment sales are charged at
prevailing market prices
RESULT
Segment operating result	1.399	451	3.775	-	5.625
Unallocated expenses					- 1.780
Operating result					3.845
Investment revenues					-
Hedging results			- 421		- 421
Other gains and losses					-
Finance costs					- 299
Result before tax					3.125
Income tax expense					- 926
Result for the period					2.199
'000 €	Antimony	Plastics	Lead	Others	Total
	30/06/2015	30/06/2015	30/06/2015	30/06/2015	30/06/2015
OTHER INFORMATION
Capital additions 2015	162	29	333	161	685
Depreciation and amortisation	354	108	650	290	1.402
BALANCE SHEET
Assets
Fixed assets	1.466	451	2.900	2.109	6.926
Deffered tax				196	196
Cash restricted in its use			275		275
Stocks	8.587	4.246	10.170	784	23.787
Trade and other receivables	8.546	5.099	16.149	1.205	30.999
Derivatives			1.060		1.060
Cash and cash equivalent				693	693
Total assets	18.599	9.796	30.554	4.987	63.936

4. Other operating expense and income

Other operating expense:

'000 €	30/06/2016	30/06/2015
Office expenses & IT	280	244
Fees	625	685
Insurances	236	255
Interim personnel	294	325
Carry-off of waste	1.222	677
Travel expenses	103	123
Transportation costs	1.331	1.112
Other purchase and sales expenses	306	627
Trade receivables value reduction	-	257
Renting	77	79
Subscriptions	116	112
Other taxes (unrelated to the result)	195	86
Financial costs (other than interest)	104	83
Others	348	282
	5.237	4.947

On 30/06/2015 a positive result in Finance income (other than interest) of 258K€ has been recorded in Other operating expense. These were now recorded in Other operating income.

Other operating income:

'000 €	30/06/2016	30/06/2015
Operating hedge results	49	41
Finance income (other than interest)	60	262
Recuperation of waste materials	395	387
Claims	-	7
Others	18	21
	522	718

On 30/06/2015 a positive result in Personnel related income of 369K€ has been recorded in Other operating income. These were now deducted from the costs for personnel.

5. Income tax expense

		Period
'000 €		30/06/2016	30/06/2015
Current tax	-	240
Deferred tax	-	491	- 926
Income tax expense for the period	-	731	- 926

On 30/06/2016 the deferred tax amounted to 731 K€, consisting of 470 K€ for the use of the deferred tax asset for unused tax losses, 21 K€ for the movement in other deferred tax and 240 K€ for the setting up of a tax provision, since the tax losses were fully used and therefore the corresponding deferred tax asset was fully used on 30 June 2016.

6. Dividends paid during the period

On 31 May 2016, a dividend of 0.15 € per share (total dividend € 0.225 million) was paid to shareholders. No dividend was paid to shareholders in 2015.

An amount of 60 K€ was paid as tantièmes to the Board members.

7. Significant movements in property, plant and equipment

		Properties
	Land and	under	Fixtures and
'000 €	buildings	construction	equipment	Total
COST OR VALUATION
On 31 December 2015	13.177	828	54.035	68.040
Additions	161	-	1.791	1.952
Transfers	-	- 828	-	828 -
Disposals	-	-	-	-
On 30 June 2016	13.338	-	55.826	69.164
ACCUMULATED DEPRECIATION AND IMPAIRMENT
On 31 December 2015	11.834	-	49.518	61.352
Depreciation charge for the year	195	-	1.009	1.204
Eliminated on disposals	-	-	-	-
On 30 June 2016	12.029	-	50.527	62.556
CARRYING AMOUNT
On 30 June 2016	1.309	-	5.299	6.608
On 31 December 2015	1.343	828	4.517	6.688

8. Significant movements in other assets

'000 €	Licences, patents and trademarks
COST
On 31 December 2015	1.722
Additions	-
On 30 June 2016	1.722
CUMULATED DEPRECIATION AND AMORTISATION
On 31 December 2015	1.051
Charge for the year	100
On 30 June 2016	1.151
CARRYING AMOUNT
On 30 June 2016	571
On 31 December 2015	671

9. Inventories

'000 €	30/06/2016	31/12/2015
Raw materials	10.581	8.627
Work-in-progress	8.221	2.543
Finished goods	8.192	9.205
	26.994	20.375

The inventory per 30 June 2016 includes a value reduction of 406 K€ (31/12/2015: 449 K€) to value inventory at the lower of cost and net realisable value.

10. Trade and other receivables

'000 €	30/06/2016	31/12/2015
Amounts receivable from the sale of goods	29.131	24.455
Other receivables	1.232	1.179
	30.363	25.634

This increase of 4.729 K€ is mainly due to the higher turnover realised in the 2nd quarter of 2016 compared to the 4th quarter of 2015.

An allowance has been recorded for estimated irrecoverable amounts from the sale of goods of 923 K€ (31/12/2015: 923 K€). This allowance has been determined on a case-by-case basis. Balances are written-off when sufficiently certain that the receivable is definitely lost. 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 29.131 K€ includes 23.456 K€ subject to commercial factoring by a credit institute. Based on these receivables the credit institute deposits advances on the account of Campine (13.606 K€ per 30/06/2016, see note 12. Bank borrowings) and afterwards collects the receivables itself. The credit risk stays at Campine and is covered by a credit insurance.

11. Derivatives

The table below summarises the net change in fair value – realised and unrealised – of the positions on the LME lead futures where it sells forward lead via future contracts of 317 K€ included in the income statement during the half year ended 30 June 2016 (31 December 2015: -714 K€).

	Fair value of Underlying open		Change in fair value
'000 €	current instruments	positions (tons)	in income statement
On 30 June 2015	1.046	5.775	- 421
On 31 December 2015	- 479	5.950	- 714
On 30 June 2016	- 735	8.800	317

On 30 June the fair value of the derivatives are included in the balance sheet as current liabilities – derivatives for 835 K€ and current assets – derivatives for 99 K€. The amount of 99 K€ is related to the open position of the fixed price and sale contracts on 30 June 2016.

On the financial side this open position represents a loss of 99 K€ on 30 June 2016 whereas on the operational side the transaction represents a profit of 99 K€ on 30 June 2016.

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.

12. Bank borrowings (finance lease obligations not included)

'000 €	30/06/2016	31/12/2015
Bank loans	-	375
Bank overdrafts	6.065	2.918
Advances on factoring	13.606	8.784
	19.671	12.077
The borrowings are repayable as follows:
'000 €	30/06/2016	31/12/2015
Bank loans after more than one year	-	-
Bank loans within one year	-	375
Bank overdrafts	6.065	2.918
Advances on factoring	13.606	8.784
	19.671	12.077

The average interest rates paid were as follows:
	30/06/2016	31/12/2015
Bank overdrafts	1,84%	2,08%
Advances on factoring	1,73%	1,92%
Bank loans	-	4,65%

Bank loans are arranged at fixed interest rates. Other borrowings (bank overdrafts and advances on factoring for an amount of 19.671 K€ (31/12/2016: 11.702 K€)) are arranged at floating rates, thus exposing the Group to an interest rate risk.

On 30 June 2016, the Group had available 8.999 K€ (31/12/2015: 12.030 K€) of undrawn committed borrowing facilities.

The credit agreements with our bankers contain a number of covenants, based on equity, solvability and stock rotation. On 30 June 2016 the Group complied adequately with the covenants.

13. Trade and other payables

'000 €	30/06/2016	31/12/2015
Trade creditors and accruals	15.154	13.893
Other payables and accruals	2.592	2.206
	17.746	16.099

Trade creditors and accruals principally comprises amounts outstanding for trade purchases and ongoing costs. 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.

14. 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.

Below is an overview of the financial instruments as on 30 June 2016:

'000 €	Categories	Book value	Fair value	Level
I. Fixed assets
II. Current Assets
Trade and other receivables	A	30.363	30.363	2
Cash and cash equivalents	B	171	171	2
Derivatives	C	99	99	1
Total financial instruments on the assets side
of the balance sheet		30.633	30.633
I. Non-current liabilities
Interest-bearing liabilities	A	-	-	2
Other non-current liabilities	A	-	-	2
Other financial liabilities	C	-	-	2
II. Current liabilities
Interest-bearing liabilities	A	19.671	19.671	2
Current trade and other debts	A	17.746	17.746	2
Derivatives	C	835	835	1
Total financial instruments on the
liabilities side of the balance sheet		38.252	38.252

Below is an overview of the financial instruments as on 31 December 2015:

'000 €	Categories	Book value	Fair value	Level
I. Fixed assets
II. Current Assets
Trade and other receivables	A	25.634	25.634	2
Cash and cash equivalents	B	80	80	2
Derivatives	C	-	-	1
Total financial instruments on the assets side
of the balance sheet		25.714	25.714
I. Non-current liabilities
Interest-bearing liabilities	A	-	-	2
Other non-current liabilities	A	-	-	2
Other financial liabilities	C	-	-	2
II. Current liabilities
Interest-bearing liabilities	A	12.077	12.077	2
Current trade and other debts	A	16.099	16.113	2
Derivatives	C	479	479	1
Total financial instruments on the
liabilities side of the balance sheet		28.655	28.669

Categories 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.

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.

15. Provisions

The provisions remained almost equal in the first semester of 2016. These mainly relate to the soil sanitation obligation on and around the site of the Group and were determined in compliance with the requirements of OVAM – by an independent study bureau.

16. 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 Group:

• Purchase of antimony metal from F.W. Hempel Intermétaux SA for an amount of 3.567 K€ (30/06/2015: 7.864 K€).
• Sales of antimony metal to F.W. Hempel Intermétaux SA for an amount of 0 K€. (30/06/2015: 263 K€).
• Sales of antimony metal to F.W. Hempel Metallurgical for an amount of 109 K€. (30/06/2015: 0 K€)

Other transactions

• Camhold performed certain administrative/management services for the Campine Group, for which a management fee of 9 K€ (30/06/2015: 9 K€) was charged and paid, being an appropriate allocation of costs incurred by relevant administrative departments.
• DELOX BVBA performed certain administrative/management services for the Campine Group, for which a management fee of 9,2 K€ (30/06/2015: 15,4 K€) was charged and paid, being an appropriate allocation of costs incurred by relevant administrative departments.

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

• Hempel Special Metals Asia: 27 K€
• F.W. Hempel Metallurgical: 128K€
• F.W. Hempel & Co Erze und Metalle: 50K€

17. Significant events after balance sheet date

Between 30 June 2016 and the date these interim financial statements were authorised for issue, no important events occurred.

18. Approval of interim financial statements

The interim financial statements were approved and authorised for issue by the Board of Directors of 25 August 2016.

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.be)

Report on review of the consolidated interim financial information for the six-month period ended 30 June 2016

To the board of directors

In the context of our appointment as the company's statutory auditor, we report to you on the consolidated interim financial information. This consolidated interim financial information comprises the consolidated condensed balance sheet as at 30 June 2016, the consolidated condensed income statement, the consolidated condensed statement of comprehensive income, the consolidated condensed statement of changes in equity and the consolidated condensed statement of cash flows for the period of six months then ended, as well as selective notes 1 to 18.

Report on the consolidated interim financial information

We have reviewed the consolidated interim financial information of Campine NV ("the company") and its subsidiaries (jointly "the group"), prepared in accordance with International Financial Reporting Standard IAS 34 – Interim Financial Reporting as adopted by the European Union.

The consolidated condensed balance sheet shows total assets of 65.182 (000) EUR and the consolidated condensed income statement shows a consolidated profit (group share) for the period then ended of 1.352 (000) EUR.

The board of directors of the company is responsible for the preparation and fair presentation of the 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 consolidated interim financial information based on our review.

Scope of review

We conducted our review of the consolidated interim financial information in accordance with International Standard on Review Engagements (ISRE) 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 performed in accordance with the International Standards on Auditing (ISA) 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 on the consolidated interim financial information.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information of Campine NV has not been prepared, in all material respects, in accordance with IAS 34 – Interim Financial Reporting as adopted by the European Union.

Antwerp, 26 August 2016

The statutory auditor

DELOITTE Bedrijfsrevisoren BV o.v.v.e. CVBA Represented by Kathleen De Brabander