Quarterly Report • Aug 30, 2016
Quarterly Report
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MANAGEMENT REPORT OF THE BOARD OF DIRECTORS
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
Condensed consolidated statement of income Condensed consolidated statement of comprehensive income Condensed consolidated statement of financial position Condensed consolidated statement of cash flow Condensed consolidated statement of changes in equity Notes to the interim condensed consolidated financial statements for the period ended June 30, 2016 Auditor's report
The management report should be read together with the interim condensed consolidated financial statements of the group CFE.
The Board of Directors of CFE examined and approved the H1 2016 financial statements at its meeting on August 25, 2016
| In million € | st semester 2016 1 |
1st semester 2015 | Variation |
|---|---|---|---|
| Revenue | 1,224.5 | 1,643.5 | -25.5% |
| Self-financing capacity (EBITDA) | 182.2 | 276.0 | -34.0% |
| % of revenue | 14.9% | 16.8% | |
| Operating income on activities | 70.5 | 143.0 | -50.7% |
| % of revenue | 5.8% | 8.7% | |
| Operating income (*) (EBIT) | 75.5 | 152.7 | -50.6% |
| % of revenue | 6.2% | 9.3% | |
| Net income share of the group | 53.0 | 110.9 | -52.2% |
| % of revenue | 4.3% | 6.7% | |
| Net income share of the group per share (in EUR) | 2.10 | 4.38 | -52.1% |
(*) including earnings from associates and joint ventures.
| In million € | 30 June 2016 |
31 December 2015 | Variation |
|---|---|---|---|
| Equity share of the Group | 1,416.7 | 1,423.3 | -0.5% |
| Net financial debt | 365.2 | 322.7 | +13.2% |
| Order book | 4,472.4 | 4,160.3 | +7.5% |
| In million € | st semester 2016 1 |
st semester 2015 1 |
Variation |
|---|---|---|---|
| Revenue | 802.1 | 1,171.0 | -31.5% |
| EBITDA | 185.3 | 276.3 | -32.9% |
| Operating income (**) | 78.3 | 176.5 | -55.6% |
| Net income share of the group | 54.1 | 120.8 | -55.2% |
(*) Amounts restated to take account of the recognition at fair value of the identifiable assets and liabilities of DEME following the acquisition of an additional 50% of the DEME shares on 24 December 2013.
(**) Including results of associated companies and joint ventures.
| In million € | 30 June 2016 | 31 December 2015 | Variation |
|---|---|---|---|
| Order book | 3,625.0 | 3,185.0 | 13.8% |
| Net financial debt | 329.6 | 275.0 | 19.9% |
The key figures shown below are presented according to the economic approach whereby the jointly controlled companies are proportionally consolidated (accounting rules applicable before 1 January 2014).
| In million € (Excluding restatements for DEME) |
st semester 2016 1 |
st semester 2015 1 |
Variation |
|---|---|---|---|
| Revenue | 803.1 | 1,218.7 | -34.1% |
| EBITDA | 195.2 | 302.6 | -35.5% |
| Income from operating activities | 84.7 | 183.8 | -53.9% |
| Net income share of the group | 54.0 | 119.8 | -54.9% |
| Investments | 112.6 | 291.9 | -61.4% |
DEME realized a turnover of €803.1 million, or less than in the first half of 2015, which was marked by an exceptionally high level of activity, particularly in Egypt (widening of the Suez Canal).
The delayed start of certain major projects weighed on the fleet occupancy level.
In Singapore, the Jurong Island Westward Extension (JIWE) and Tuas Terminal Phase 1 projects are progressing according to schedule. DEME was also actively engaged in Panama (widening of the access to the Canal on the Pacific side), Africa, India and Europe.
In the North Sea, GeoSea finished the transport and installation of the monopile foundations for 54 wind turbines of the German Nordsee One wind farm ahead of schedule.
In the United Kingdom, the Galloper and Race Bank projects were started up. Those two projects will represent a substantial volume of activity in the second half of 2016.
Evolution of activity by business area (economic approach)
| In % | st semester 2016 1 |
1st semester 2015 |
|---|---|---|
| Capital dredging | 44% | 55% |
| Maintenance dredging | 14% | 10% |
| Fallpipe and landfalls | 4% | 5% |
| Environment | 13% | 9% |
| Civil works | 3% | 0% |
| Marine works | 22% | 21% |
| Total | 100% | 100% |
Evolution of activity by geographical area (economic approach)
| En % | st semester 2016 1 |
1st semester 2015 |
|---|---|---|
| Europe (EU) | 50% | 33% |
| Europe (non-EU) | 2% | 0% |
| Africa | 15% | 40% |
| Americas | 7% | 6% |
| Asia-Pacific | 16% | 11% |
| Middle East | 4% | 6% |
| India and Pakistan | 6% | 4% |
| Total | 100% | 100% |
DEME's EBITDA amounted to €195.2 million in the first six months of 2016, or 24.3% of the revenue. Despite the temporary decrease in activity, DEME was able to maintain a high level of profitability partly thanks to the successful completion of several projects.
The order book increased by 13.8% to a record level of €3,625 million during the first six months of 2016.
GeoSea won a contract worth €650 million for the construction of the Merkur wind farm with its 66 wind turbines of 6 MW; the financial close of this contract has been confirmed. Completion is due in March 2019. GeoSea will also be responsible for maintaining the foundations of the wind turbines for a 10-year period. Through its subsidiary DEME Concessions Wind, DEME holds a minority stake (12.5%) in the capital of the company operating the wind farm.
GeoSea also concluded an EPCI contract for the design, construction and installation of 71 monopiles for the Hohe See offshore wind farm situated approximately 90 km north of Borkum Island (Germany) in the North Sea. This contract is not yet included in the order book as at June 30, 2016.
DEME's subsidiary Tideway also won a major Design & Build contract from DONG Energy for the dredging and laying of high-voltage power cables using the new multipurpose vessel 'Living Stone' as part of the HornSea One project (1200 MW), the world's largest offshore wind farm, in the United Kingdom. This contract is not yet included in the order book as at June 30, 2016.
On May 30, the consortium Femern Link Contractors, which includes namely CFE and DEME as partners, signed conditional contracts with the Danish government for the design and construction of the world's longest road tunnel (18 km), the Fehmarnbelt link between Denmark and Germany. This project, worth an estimated €700 million for DEME/CFE, will only begin once the German authorities have delivered the necessary building permits. This contract is not yet included in the order book as at June 30, 2016.
The investments during the period amounted to €112.6 million. This figure primarily consists of the capitalized maintenance costs in pursuance of IAS 16 and down payments (€32 million) on the six vessels under construction : the self-propelled jack-up vessel 'Apollo', the multipurpose vessel 'Living Stone', the crane ship 'DP2 Gulliver' (in joint venture), and three trailing suction hopper dredgers ('Bonny River', 'Scheldt River' and 'Minerva'). Those vessels, worth a total of €500 million, will join DEME's fleet in 2017 and 2018.
The net financial debt amounted to €334.2 million (economic approach), an increase of €67.5 million.
| In million € | st semester 2016 1 |
st semester 2015 (*) 1 |
Variation |
|---|---|---|---|
| Revenue | 400.5 | 332.7 | +20.4 % |
| Operating income (**) | 7.6 | -4.6 | - |
| Net Income share of the group | 4.1 | 0.7 | +485.7% |
(*) Pro forma figures according to the new definition of the segment applicable at 1st of January, 2016.
(**) Including results of associated companies and joint ventures.
Revenue amounted to €400.5 million, or 20.4% up on the first six months of 2015.
Most entities of the Contracting division reported an increase in revenue, particularly in the international operations, with CFE Polska and CLE in Luxembourg recording a high level of activity.
Construction activity in Belgium, which represents just over half the division's revenue, is growing primarily in Flanders, buoyed by the 'Schools of Tomorrow' programme and several major projects such as AZ Sint-Maarten hospital in Mechelen and the Exxon industrial site in Antwerp. In Brussels, work on the 'Docks' shopping centre has entered the final stages, while the 'Grands Prés' project in Mons was completed in June 2016.
| In million € | st semester 2016 1 |
1st semester 2015 (*) | Variation |
|---|---|---|---|
| Construction | 293.5 | 236.1 | +24.3% |
| Buildings, Belgium | 226.6 | 194.7 | +16.4% |
| Buildings, International (**) | 66.9 | 41.4 | +61.6% |
| Multitechnics | 76.2 | 66.5 | +14.6% |
| Rail infra | 30.8 | 30.1 | +2.3% |
| Total Contracting | 400.5 | 332.7 | +20.4% |
(*) Pro forma figures according to the new definition of the segment applicable at 1st of January, 2016.
(**) Exclusively Luxemburg, Poland and Tunisia.
CFE Contracting reported an operating income of €7.6 million, compared to €-4.6 million at June 30, 2015.
The three segments (Construction, Multitechnics and Rail Infra) made a positive contribution to the division's operating income.
The contribution of CFE Bouw Vlaanderen and CFE Polska to the division's operating income increased considerably compared to the first six months of 2015.
The operating margin as a percentage of revenue improved significantly to nearly 2%.
| In million € | 30 June 2016 | 31 December 2015 (*) | Variation |
|---|---|---|---|
| Construction | 571.6 | 671.2 | -14.8% |
| Buildings, Belgium | 415.0 | 494.6 | -16.1% |
| Buildings, International (**) | 156.6 | 176.6 | -11.3% |
| Multitechnics | 120.5 | 115.8 | +4.1% |
| Rail infra | 46.7 | 49.3 | -5.3% |
| Total Contracting | 738.8 | 836.3 | -11.7% |
(*) Pro forma figures according to the new definition of the segment applicable at 1st of January, 2016.
(**) Exclusively Luxemburg, Poland and Tunisia.
The order book of Contracting amounted to €738.8 million, which is €97.5 million down on January 1, 2016.
Market conditions in Belgium and a greater selectivity in the intake of new contracts weighed on the order intake of CFE Bâtiment Brabant Wallonie and CFE Bouw Vlaanderen. Nevertheless, both CFE Bouw Vlaanderen and CFE Polska were able to win some major new contracts in July 2016.
Due to a favourable evolution of the working capital requirement, the division's net cash position stood at €98.2 million, which is €23.4 million up on year-end 2015.
Key figures
| In million € | st semester 2016 1 |
st semester 2015 1 |
Variation |
|---|---|---|---|
| Revenue | 7.6 | 13.4 | -43.3% |
| Operating income (*) | 0.5 | 2.7 | -81.5% |
| Net income share of the group | -0.8 | 1.4 | - |
(*) Including results of associated companies and joint ventures.
| In million € | 30 June 2016 | 31 December 2015 |
|---|---|---|
| Unsold units post completion | 16 | 14 |
| Properties under construction | 32 | 34 |
| Properties in development | 75 | 71 |
| Total | 123 | 119 |
The book value of real estate projects stood at €122.8 million at June 30, 2016, which is a 3.4% increase.
In Belgium, BPI successfully continued the marketing of residential units in the projects 'Erasmus Gardens' (Anderlecht), 'Ernest' (Ixelles) and 'Oosteroever' (Ostend). In the European district of Brussels, BPI finalized the acquisition of a land plot at the beginning of July for the development of 5,400 m² residential units.
In Luxemburg, satisfactory progress was made with the construction of the real estate complex 'Kons'; completion and transfer of the project to an institutional investor is scheduled for the end of the year.
In Poland, BPI Polska acquired a new plot of land in Warsaw (residential project of 3,500 m²). The construction and marketing of phases 3 and 4 of the residential project 'Ocean Four' in Gdansk continued at a steady pace.
In the absence of major transactions during the six-month period under review, the net income of the division amounted to €-0.8 million (compared to €+1.4 million in the first six months of 2015). This figure does not reflect the division's expected performance over the whole year.
| In million € | 1st semester 2016 | 1st semester 2015 (*) | Variation |
|---|---|---|---|
| Revenue | 14.4 | 126.4 | -88.6% |
| Operating income (**) | -10.9 | -21.9 | +50.2% |
| Net operating income share of the group | -4.3 | -12.2 | +64.8% |
(*) Pro forma figures according to the new definition of the segment applicable at 1st of January 2016
(**) Including results of associated companies and joint ventures.
Revenue amounted to €29.5 million for the non-transferred operations of CFE SA (€131.6 million in the first half of 2015) and €-15.1 million for interdivisional eliminations.
The substantial decrease in revenue is explained by the transfer of the marine civil engineering operations to DEME at year-end 2015 and by a sharply reduced level of activity in Africa following the completion in 2015 of several large-scale projects, more specifically in Algeria and Chad.
The operating income (€-10.9 million) was adversely affected by the recognition of additional losses on the Brussels-South wastewater treatment plant project, of which the first of three phases was completed in July 2016.
The division's net result amounted to €-4.3 million (€-12.2 million in the first half of 2015).
The operating loss was partly offset by the capital gain realized on the disposal of CFE's stake in Locorail NV, the company responsible for maintaining and financing the Liefkenshoek rail tunnel in Antwerp.
In the first half of 2015, the net result had been favourably influenced by the sale of the road-building activity.
| In million € | 30 June 2016 | 31 December 2015 | Variation |
|---|---|---|---|
| Order book | 101.6 | 132.3 | -23.2% |
The main projects in progress are the Brussels-South wastewater treatment plant and the supply contract for three residential tower blocks in Lagos, Nigeria.
The Chadian government received a proposal during the second quarter for a conditional refinancing of the outstanding receivables relating to the Grand Hotel in N'Djamena. This proposal is currently being examined by the Chadian authorities.
The exposure to this country remains unchanged at €60 million.
Condensed consolidated statement of income
| Year ended at June 30 (in thousands €) |
2016 | 2015 |
|---|---|---|
| Revenue | 1,224,532 | 1,643,545 |
| Revenue from auxiliary activities | 31,227 | 63,755 |
| Purchases | -591,732 | -871,528 |
| Wages, salaries & social charges | -291,942 | -299,650 |
| Other operating charges | -189,388 | -262,744 |
| Depreciations and amortization | -112,178 | -130,353 |
| Goodwill Impairment | 0 | 0 |
| Operating income on activities | 70,519 | 143,025 |
| Earnings from associates and joint ventures | 4,938 | 9,674 |
| Operating income | 75,457 | 152,699 |
| Cost gross financial debt | -13,265 | -13,692 |
| Other financial expenses and income | 1,428 | 5,078 |
| Financial result | -11,837 | -8,614 |
| Result before taxes | 63,620 | 144,085 |
| Income tax expense | -11,373 | -35,804 |
| Net income for the period | 52,247 | 108,281 |
| Attributable to owner of non-controlling interest | 799 | 2,569 |
| Net income share of the group | 53,046 | 110,850 |
| Year ended 30 June (in thousands €) |
2016 | 2015 |
|---|---|---|
| Net income for the period – Share of the group | 53,046 | 110,850 |
| Net income for the period | 52,247 | 108,281 |
| Change in fair values related to the hedging instruments | -5,253 | -178 |
| Currency translation differences | 4,581 | 1,145 |
| Deferred taxes | 1,859 | 60 |
| Other elements of the comprehensive income to be reclassified to profit or loss in subsequent period |
1,187 | 1,027 |
| Remeasurement on defined benefit plans | 0 | 0 |
| Deferred taxes | 0 | 0 |
| Other elements of the comprehensive income not to be reclassified to profit or loss in subsequent period |
0 | 0 |
| Total elements of the comprehensive income directly accounted in equity |
1,187 | 1,027 |
| Comprehensive income | 53,434 | 109,308 |
| - attributable to the group | 54,294 | 111,794 |
| - attributable to non-controlling interests | -860 | -2,486 |
| Net result share of the group per share (€) (basic and diluted) | 2.10 | 4.38 |
| Comprehensive income per share (€) (basic and diluted) | 2.14 | 4.42 |
| Year ended (in thousands €) | 30 June 2016 | 31 December 2015 |
|---|---|---|
| Intangible assets | 97,556 | 97,886 |
| Goodwill | 175,169 | 175,222 |
| Tangible assets | 1,728,040 | 1,727,679 |
| Associates and joint ventures | 152,908 | 151,377 |
| Other non-current financial assets | 106,244 | 129,501 |
| Non-current derivative instruments | 2,190 | 1,381 |
| Other non-current assets | 18,566 | 19,280 |
| Deferred tax assets | 109,225 | 103,345 |
| Total non-current assets | 2,389,898 | 2,405,671 |
| Inventories | 98,524 | 77,946 |
| Trade receivables and other operating receivable | 1,135,129 | 1,192,977 |
| Other current assets | 74,871 | 125,029 |
| Current derivative instruments | 1,330 | 8,514 |
| Current financial assets | 56 | 70 |
| Cash and cash equivalents | 454,556 | 491,952 |
| Total current assets | 1,764,466 | 1,896,488 |
| Total assets | 4,154,364 | 4,302,159 |
| Issued capital | 41,330 | 41,330 |
| Share premium | 800,008 | 800,008 |
| Retained earnings | 599,162 | 607,012 |
| Defined benefits plans | -7,448 | -7,448 |
| Hedging reserves | -14,104 | -10,710 |
| Translation differences | -2,273 | -6,915 |
| Equity – part of the group CFE | 1,416,675 | 1,423,277 |
| Non-controlling interests | 9,927 | 11,123 |
| Equity | 1,426,602 | 1,434,400 |
| Retirement benefit obligations and employee benefits | 41,187 | 41,054 |
| Provisions | 38,694 | 44,854 |
| Other non-current liabilities | 6,296 | 17,145 |
| Bonds | 304,376 | 305,216 |
| Financial debts | 343,869 | 398,897 |
| Non-current derivative instruments | 28,941 | 33,359 |
| Deferred tax liabilities | 142,706 | 150,053 |
| Total non-current liabilities | 906,069 | 990,578 |
| Current provisions | 66,243 | 64,820 |
| Trade & other operating payables | 1,093,451 | 1,184,886 |
| Income tax payable | 53,809 | 88,215 |
| Current financial debts | 171,511 | 110,558 |
| Current derivative instruments | 34,077 | 35,146 |
| Other current liabilities Total current liabilities |
402,602 1,821,693 |
393,556 1,877,181 |
| Total equity and liabilities | 4,154,364 | 4,302,159 |
Condensed consolidated cash flow statement
| Year ended 30 June (in thousands €) |
2016 | 2015 |
|---|---|---|
| Cash flows relating to operating activities | 133,719 | 149,085 |
| Cash flows relating to investing activities | -114,983 | -134,380 |
| Cash flows relating to financing activities | -54,794 | -327,377 |
| Net increase/decrease in cash position | -36,058 | -312,672 |
Figures per share
| 30 June 2016 | 30 June 2015 | |
|---|---|---|
| Total number of shares | 25,314,482 | 25,314,482 |
| Operating result after deduction of the net financial charges per share (in €) | 2.51 | 5.69 |
| Net result share of the group per share (in €) | 2.10 | 4.38 |
Delayed phasing of several major projects will weigh on DEME's revenue in 2016, which will be down on 2015 despite the prospect of a high level of activity in the second half of the year, particularly in offshore wind. Nevertheless, the EBITDA margin as a percentage of revenue is expected to remain above the historical average.
The Contracting division is expected to report an increase in revenue and operating income in 2016.
At 30 June 2016, CFE's share capital was divided into 25,314,482 shares.
Each share confers one vote. There has been no issue of convertible bonds or warrants. Financial institutions with which holders of financial instruments may exercise their financial rights are: BNP Paribas Fortis, Banque Degroof and ING Belgium. Banque Degroof has been appointed as the 'Main Paying Agent'.
Risks related to the sector of activity described in the annual report 2015 are still applicable during the second half year 2016.
In the first half year of 2016, there was no significant variation in the nature of transactions with related parties compared to December 31st, 2015.
The annual general meeting renewed the director's mandate of Philippe Delusinne for a period of four years, ending after the annual general meeting of May 2020. Philippe Delusinne meets the independence criteria defined in Article 526c of the Companies Code and in the 2009 Belgian Corporate Governance Code.
The annual general meeting renewed the director's mandate of Christian Labeyrie for a period of four years, ending after the annual general meeting of May 2020. Christian Labeyrie does not meet the independence criteria defined in Article 526c of the Companies Code and in the 2009 Belgian Corporate Governance Code.
The general meeting appointed Leen Geirnaerdt as director for a period of four years, ending after the general meeting of May 2020. Leen Geirnaerdt meets the independence criteria defined in Article 526c of the Companies Code and in the 2009 Belgian Corporate Governance Code.
The general meeting renewed the auditor's mandate of Deloitte, Reviseurs d'Entreprises, SC s.f.d. SCRL, represented by Michel Denayer and Rik Neckebroeck, for a period of three years, ending after the annual general meeting of 2019.
Luc Bertrand was appointed chairman of the board of directors of CFE with effect from 5 May 2016.
| Capital employed | Intangible assets + goodwill + property, plant and equipment + working capital requirement |
|---|---|
| Working capital requirement | Inventories + trade receivables and other operating receivables + other current assets + non-current assets held for sale - other current provisions - trade payables and other operating liabilities - tax payables - other current liabilities |
| Income from operating activities | Turnover + revenue from auxiliary activities + purchases + wages, salaries and social charges + other operational charges and depreciation and goodwill depreciation |
| Operating income (EBIT) | Income from operating activities + earnings from associates and joint venture |
| EBITDA | Income from operating activities + amortisation and depreciation + other non-cash items |
| For the period from January 1st to June,30th (In thousand Euro) |
Note | June 2016 | June 2015 | |
|---|---|---|---|---|
| Revenue Revenue from auxiliary activities Purchases Remuneration and social security payments Other operating expenses Depreciation and amortization Income from operating activities |
6 | 1,224,532 31,227 (591,732) (291,942) (189,388) (112,178) 70,519 |
1,643,545 63,755 (871,528) (299,650) (262,744) (130,353) 143,025 |
|
| Earnings from associates and joint venture | 4,938 | 9,674 | ||
| Operating income | 75,457 | 152,699 | ||
| Cost of gross financial debt Other financial expenses & income |
7 7 |
(13,265) 1,428 |
(13,692) 5,078 |
|
| Net financial income/expense | (11,837) | (8,614) | ||
| Pre-tax income | 63,620 | 144,085 | ||
| Income tax expense | 9 | (11,373) | (35,804) | |
| Net income for the period | 52,247 | 108,281 | ||
| Attributable to owners of non-controlling interests | 8 | 799 | 2,569 | |
| Net income share of the group | 53,046 | 110,850 | ||
| Net income of the group per share (EUR) (diluted and basic) | 2.10 | 4.38 |
| For the period from January 1st to June,30th (In thousand Euro) |
Note | June 2016 | June 2015 | |
|---|---|---|---|---|
| Net income share of the group Net income for the period |
53,046 52,247 |
110,850 108,281 |
||
| Changes in fair value related to hedging instruments Currency translation differences Deferred taxes Other elements of the comprehensive income to be reclassified to profit or loss in subsequent periods |
(5,253) 4,581 1,859 1,187 |
(178) 1,145 60 1,027 |
||
| Re-measurement on defined benefit plans Deferred taxes Other elements of the comprehensive income not to be reclassified to profit or loss in subsequent periods |
0 0 0 |
0 0 0 |
||
| Other elements of the comprehensive income directly accounted in equity | 1,187 | 1,027 | ||
| Comprehensive income: - Attributable to owners of the parent - Attributable to owners of non-controlling interests |
53,434 54,294 (860) |
109,308 111,794 (2,486) |
||
| Net income attributable to owners of the parent per share (EUR) (diluted and basic) |
2.14 | 4.42 |
| For the period ended to (In thousand Euro) |
Note | June 2016 | December 2015 |
|---|---|---|---|
| Intangible assets | 97,556 | 97,886 | |
| Goodwill | 175,169 | 175,222 | |
| Property, plant and equipment | 10 | 1,728,040 | 1,727,679 |
| Investments in associates and joint ventures | 11 | 152,908 | 151,377 |
| Other non-current financial assets | 106,244 | 129,501 | |
| Derivative instruments – Non-current assets | 2,190 | 1,381 | |
| Other non-current assets | 18,566 | 19,280 | |
| Deferred tax assets | 109,225 | 103,345 | |
| Total non-current assets | 2,389,898 | 2,405,671 | |
| Inventories | 12 | 98,524 | 77,946 |
| Trade and other operating receivables | 13 | 1,135,129 | 1,192,977 |
| Other current assets | 74,871 | 125,029 | |
| Derivative instruments – Current assets | 1,330 | 8,514 | |
| Current financial assets | 56 | 70 | |
| Cash and cash equivalents | 17 | 454,556 | 491,952 |
| Total current assets | 1,764,466 | 1,896,488 | |
| Total assets | 4,154,364 | 4,302,159 | |
| Share capital | 41,330 | 41,330 | |
| Share premium | 800,008 | 800,008 | |
| Retained earnings | 599,162 | 607,012 | |
| Defined benefits pension plans | (7,448) | (7,448) | |
| Hedging reserves | (14,104) | (10,710) | |
| Currency translation differences | (2,273) | (6,915) | |
| Equity attributable to owners of the parent | 1,416,675 | 1,423,277 | |
| Non-controlling interests | 8 | 9,927 | 11,123 |
| Equity | 1,426,602 | 1,434,400 | |
| Retirement benefit obligations and employee benefits | 41,187 | 41,054 | |
| Provisions | 14 | 38,694 | 44,854 |
| Other non-current liabilities | 6,296 | 17,145 | |
| Bonds | 17 | 304,376 | 305,216 |
| Financial liabilities | 17 | 343,869 | 398,897 |
| Derivative instruments – Non-current liabilities | 28,941 | 33,359 | |
| Deferred tax liabilities | 142,706 | 150,053 | |
| Total non-current liabilities | 906,069 | 990,578 | |
| Current provisions | 14 | 66,243 | 64,820 |
| Trade & other operating payables | 1,093,451 | 1,184,886 | |
| Income tax payable | 53,809 | 88,215 | |
| Current financial liabilities | 17 | 171,511 | 110,558 |
| Derivative instruments – Current liabilities | 34,077 | 35,146 | |
| Other current liabilities | 402,602 | 393,556 | |
| Total current liabilities | 1,821,693 | 1,877,181 | |
| Total equity and liabilities | 4,154,364 | 4,302,159 |
| For the period from January 1st to June 30th (In thousand Euro) |
Note | June 2016 | June 2015 | |
|---|---|---|---|---|
| Operating activities | ||||
| Net income share of the group Depreciation and amortization of intangible assets, property, plant & equipment and investment property |
53,046 112,178 |
110,850 130,353 |
||
| Net provision expense | (83) | 11,294 | ||
| Impairment on current and non-current assets | (380) | (8,654) | ||
| Unrealized foreign exchange (gains)/losses Interest income & income from financial assets |
8,834 (15,447) |
5,532 (15,289) |
||
| Interest expense | 18,513 | 18,533 | ||
| Change in fair value of derivative instruments | (2,994) | (3,144) | ||
| Income/(losses) from sales of property, plant & equipment | (723) | (13,052) | ||
| Tax expense | 11,373 | 35,804 | ||
| Income attributable to non-controlling interests Earnings from associates and joint venture |
(799) (4,938) |
(2,569) (9,674) |
||
| Cash flow from operating activities before changes in working capital | 178,580 | 259,984 | ||
| Decrease/(increase) in trade receivables and other current and non-current receivables |
134,638 | (133,960) | ||
| Decrease/(increase) in inventories | (6,751) | 2,891 | ||
| Increase/(decrease) in trade payables and other current and non-current payables | (138,349) | 39,051 | ||
| Cash flow from operating activities | 168,118 | 167,966 | ||
| Interest paid | (18,513) | (18,532) | ||
| Interest received | 6,647 | 3,509 | ||
| Income tax paid/received | (22,533) | (3,858) | ||
| Net cash flow from operating activities | 133,719 | 149,085 | ||
| Investing activities | ||||
| Sales of non-current assets | 1,876 | 21,868 | ||
| Purchases of non-current assets | (109,296) | (133,049) | ||
| Change in percentage held in associates | 5 | 0 | (23,414) | |
| Capital increase in investments in associates Sale of subsidiaries |
5 | (6,300) 0 |
(11,735) 19,860 |
|
| Loans granted | (1,263) | (7,910) | ||
| Cash flow from investing activities | (114,983) | (134,380) | ||
| Financing activities | ||||
| Borrowings | 64,885 | 64,897 | ||
| Reimbursements of borrowings | (58,924) | (341,645) | ||
| Dividends paid | (60,755) | (50,629) | ||
| Cash flow from financing activities | (54,794) | (327,377) | ||
| Net Increase/(Decrease) in cash position | (36,058) | (312,672) | ||
| Cash and cash equivalents at start of the year | 491,952 | 703,501 | ||
| Exchange rate effects | (1,338) | 3,044 | ||
| Cash and cash equivalents at end of period | 454,556 | 393,873 |
Purchases and sales of subsidiaries net of cash acquired do not include entities that are not a business combination (segment real estate and concessions-PPP). They are not considered as investment operations and are directly reflected in cash flows from operating activities.
For the year ended June 30, 2016
| (thousand Euro) | Share Capital | Share premium | Retained earnings | Defined benefits pension plans |
Hedging reserves | Currency Translation differences |
Equity attributable to owners of the parent |
Non-controlling interests |
Total |
|---|---|---|---|---|---|---|---|---|---|
| ----------------- | --------------- | --------------- | ------------------- | ----------------------------------- | ------------------ | ------------------------------------- | ------------------------------------------------ | ------------------------------ | ------- |
| December 2015 | 41,330 | 800,008 | 607,012 | (7,448) | (10,710) | (6,915) | 1,423,277 | 11,123 | 1,434,400 |
|---|---|---|---|---|---|---|---|---|---|
| Comprehensive income for the period |
53,046 | (3,394) | 4,642 | 54,294 | (860) | 53,434 | |||
| Dividends paid to shareholders Dividends from non-controlling interests Other movements |
(60,755) (141) |
(60,755) (141) |
(819) 483 |
(60,755) (819) 342 |
|||||
| June 2016 | 41,330 | 800,008 | 599,162 | (7,448) | (14,104) | (2,273) | 1,416,675 | 9,927 | 1,426,602 |
For the year ended June 30, 2015
| (thousand Euro) | Share Capital | Share premium | Retained earnings | Defined benefits pension plans |
Hedging reserves | Currency Translation differences |
Equity attributable to owners of the parent |
Non-controlling interests |
Total |
|---|---|---|---|---|---|---|---|---|---|
| ----------------- | --------------- | --------------- | ------------------- | ----------------------------------- | ------------------ | ------------------------------------- | ------------------------------------------------ | ------------------------------ | ------- |
| December 2014 | 41,330 | 800,008 | 488,890 | (8,350) | (6,127) | (2,124) | 1,313,627 | 7,238 | 1,320,865 |
|---|---|---|---|---|---|---|---|---|---|
| Comprehensive income for the period |
110,850 | (117) | 1,061 | 111,794 | (2,486) | 109,308 | |||
| Dividends paid to shareholders Dividends from non-controlling interests Other movements |
(50,629) (5,292) |
(50,629) (5,292) |
(2,203) 5,292 |
(50,629) (2,203) 0 |
|||||
| June 2015 | 41,330 | 800,008 | 543,819 | (8,350) | (6,244) | (1,063) | 1,369,500 | 7,841 | 1,377,341 |
The share capital on June 30, 2016 is represented by 25,314,482 ordinary shares. These shares are without any nominal value. The shareholders of ordinary shares have the right to receive dividends and the right of one vote per share at the General Shareholders' Meeting.
On February 24, 2016 the Board of Directors proposed a dividend of 60,755 thousand Euro, corresponding to 2.40 Euro gross per share. The proposal has been approved by the General Shareholders Meeting on May 4, 2016. The dividend has been paid.
The basic income per share is the same as the diluted income per share due to the absence of potential dilutive ordinary shares in circulation.
It is calculated as follows :
| NET RESULT PER SHARE | |||
|---|---|---|---|
| (In thousand Euro) | 2016 | 2015 | |
| Net income attributable to shareholders | 53,046 | 110,850 | |
| Comprehensive income attributable to owners of the parent | 54,294 | 111,794 | |
| Number of ordinary shares at closing date | 25,314,482 | 25,314,482 | |
| Basic (diluted) income by share in Euro | 2.10 | 4.38 | |
| Comprehensive income attributable to owners of parent by share in Euro | 2.14 | 4.42 |
4.1 CONDENSED CONSOLIDATED STATEMENT OF INCOME HIGHLIGHTS – COMPARATIVE PRO FORMA INFORMATION AT JUNE 30, 2015
4.2 CONDENSED CONSOLIDATED STATEMENT OF INCOME HIGHLIGHTS – COMPARATIVE PUBLISHED INFORMATION AND PRO FORMA INFORMATION AT JUNE 30, 2015
The Board of Directors authorized the issue of the interim condensed consolidated financial statements on August 25, 2016.
MAIN TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2016 AND THE FIRST SIX MONTHS OF 2015 WITH EFFECT ON THE SCOPE OF THE GROUP CFE
During the first half year 2016, DEME acquired :
Moreover, the companies Geka Bouw BV and CFE Nederland BV, which are 100% held by DEME Group have been merged and renamed "Dimco BV".
On June 29, 2016 CFE Group, through its subsidiary CFE Contracting, increased its stake in Groep Terryn NV from 77.5% to 100%. Groep Terryn remains fully integrated.
On April 7, 2016 CFE Group, through its subsidiary BPI, acquired a 100% stake in BPI Barska sp z.o.o. which is fully integrated.
On May 20, 2016 CFE Group, through its subsidiary BPI, increased its stake in Foncière Sterpenich from 50% to 100%. This entity is now fully integrated.
On June 30, 2016 the company Sogesmaint Luxembourg, 100% held by Sogesmaint SA was sold.
The companies C.I.W. and P.R.N.E., 100% held by BPI Luxembourg were dissolved.
The company Immomax, a 47% subsidiary of BPI, bought 100% of the shares in Immomax II where 47% were bought from CFE Polska and 53% from a third party. Immomax II remains integrated under the equity method.
On June 29, 2016 CFE SA sold its 25% stake in Locorail NV.
During the first half year 2015, DEME acquired :
On March 2, 2015 the subsidiary IFCC SA was renamed CFE Contracting SA. In the near future, this company will become the leading company of the Contracting Division.
On February 10, 2015 the company BPC Design & Engineering ("BDE") was created. This company is owned by CFE Bâtiment Brabant Wallonie – CFE BBW SA (99%) and CFE Bouw Vlaanderen NV (1%). CFE group has a 100% stake in both companies. BDE is fully consolidated.
On April 16, 2015 CFE Contracting SA, subsidiary of CFE group, acquired a 100% stake in the newly created company CFE Infra NV. This company is fully consolidated.
On June 30, 2015 CFE acquired a 50% stake of the non-controlling interests of the group Terryn at December 2014. The stake of CFE group increases therefore from 55.04% to 77.51%.
On June 12, 2015 VMA NV, a 100% subsidiary of CFE group, acquired 100% of the newly created company VMA Midlands Limited. This company is fully consolidated.
On February 25, 2015 the sale of the road activity in Aannemingen Van Wellen NV was finalised and the stake (100%) is fully transferred to Aswebo, subsidiary of Group Willemen.
On March 25, 2015 the company "Société de Gestion de Chantiers" (SOGECH SA), subsidiary of CFE group at 100% is dissolved.
Given that BPI will become the leading company of the Real Estate Division, during the first semester of 2015, the stakes in the group real estate companies and the real estate assets owned by CFE Immo, branch of CFE SA are progressively transferred to BPI SA. For this purpose, the share capital of BPI was increased on June 25, 2015.
On March 31, 2015 through its subsidiaries BPI and Espace Midi, CFE group sold its stake in the company South City Hotel (20%). This company was integrated under the equity method.
On May 22, 2015 BPI, subsidiary of CFE group, acquired a 31.2% stake in the company Goodways BVBA with the purpose to develop a real estate project in Anderlecht. This entity is integrated under the equity method.
On June 25, 2015 BPI, subsidiary of CFE group, acquired 50% of the newly created companies in Luxemburg M1 SA and M7 SA. These companies are integrated under the equity method.
During the first six month of 2015, the stake of PPP Branch in Bizerte Cap 3000 SA was diluted from 25% to 20.01%.
The retained accounting principles are the same that the principles used for the yearly consolidated financial statement at December 31, 2015.
STANDARDS AND INTERPRETATIONS APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON JANUARY 1 ST , 2016
The Company decided not to anticipate the application standards and interpretations here below that are not mandatory on June 30, 2016:
The potential impacts of these standards and interpretations on the group's consolidated financial statements are being determined. The group does not expect any material changes resulting from the application of the standards and interpretations except for IFRS 9, IFRS 15 and IFRS 16.
Companies in which the Group holds, whether directly or indirectly, the majority of voting rights enabling control to be exercised, are fully consolidated. Companies over which the Group exercises a joint control with others shareholders are integrated under equity method. This mainly concerns Rent-A-Port and some companies in the segments Dredging and environment and real estate. Companies over which the Group exercises a significant influence are integrated under equity method. This mainly concerns Coentunnel Company BV, PPP Schulen Eupen SA, Van Maerlant Property I & II SPRL, Van Maerlant Residential SA and C-Power NV, Rentel NV and Otary NV in DEME Group.
| Number of entities | June 2016 | December 2015 |
|---|---|---|
| Full consolidation Equity method |
177 124 |
177 108 |
| Total | 301 | 285 |
Reciprocal operations and transactions relating to assets and liabilities and income and expenses between companies that are consolidated are eliminated in the consolidated financial statements. This is done:
In main cases, the functional currency of companies and establishments correspond to the currency of the related country.
Financial statements of foreign companies whereas the functional currency is different from the consolidated accounts reporting currency of the group are translated at the closing rate for the balance sheet elements, and at the average rate of the period for the results elements. Exchange differences are recorded in "translation differences" in the consolidated reserves.
Goodwill related to foreign companies is considered to be included in the acquired assets and liabilities and are therefore translated at the closing rate.
Foreign currencies transactions are converted into Euro using the conversion rate at the date of the operation. At closing period, the financial assets and monetary liabilities denominated in foreign currencies are converted into Euro at the exchange closing rate of the period. The exchange losses and gains coming from these operations are recognized in the section "exchange result" and are presented in other financial revenues and other financial expenses in the income statement.
The exchange gains and losses on loans denominated in foreign currencies or on exchange derivative instruments used for hedging investments in foreign subsidiaries are recorded under translation differences in equity.
The preparation of financial statements under IFRS requires estimates to be used and assumptions to be made that affect the amounts shown in those financial statements, particularly with regards the following items:
These estimates assume the operation is a going concern and are made on the basis of the information available at the time. Estimates may be revised if the circumstances on which they were based alter or if new information becomes available. Actual results may be different from these estimates.
Segment reporting is presented in respect of the group's operating segments. Segment profits, losses, assets and liabilities include items that can be attributed directly to a segment or allocated on a reasonable basis.
During the second semester 2015, the activities Multitechnics, Rail-infra and Building Belgium, Luxemburg, Poland and Tunisia were transferred under CFE Contracting SA, a 100% subsidiary of CFE SA and head of the segment. This internal reorganization goes with a change of scope within the segment Contracting as from January 1st , 2016. This segment only includes the activities performed by CFE Contracting SA and its subsidiaries.
CFE Group is made of four operating segments, which are :
The Dredging & Environment division – through DEME – operates in dredging (investment dredging and maintenance dredging), the treatment of polluted earth, installation of off-shore wind turbines and sludge, and marine civil engineering.
The construction activities reported in the Contracting Segment include :
The Real Estate segment develops real estate projects in Belgium, Luxemburg and Poland.
Besides the usual holding activities, this segment includes:
| At June 30 | Revenue | Income from operating activities | Operating income (EBIT) | Financial income | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016 | 2015 Pro forma (*) |
2016 | %Turnover | 2015 Pro forma (*) |
%Turnover | 2016 | %Turnover | 2015 Pro forma (*) |
%Turnover | 2016 | 2015 Pro forma (*) |
|
| Dredgind and environment |
802,069 | 1,171,037 | 79,361 | 9.89% | 168,689 | 14.41% | 81,402 | 10.15% | 180,269 | 15.39% | (20,790) | (23,018) |
| Correction DEME | (2,638) | (3,273) | (3,127) | (3,762) | 3,515 | 5,510 | ||||||
| Contracting | 400,490 | 332,706 | 7,609 | 1.90% | (4,631) | (1.39%) | 7,609 | 1.90% | (4,631) | (1.39%) | (331) | (225) |
| Real Estate | 7,592 | 13,382 | (390) | (5.14%) | 1,051 | 7.85% | 518 | 6.82% | 2,720 | 20.33% | (1,290) | (1,137) |
| Holding & non transferred activities |
29,514 | 131,630 | (13,548) | (18,687) | (11,070) | (21,773) | 7,059 | 10,256 | ||||
| Eliminations between segments |
(15,133) | (5,210) | 125 | (124) | 125 | (124) | ||||||
| Total consolidated | 1,224,532 | 1,643,545 | 70,519 | 5.76% | 143,025 | 8.70% | 75,457 | 6.16% | 152,699 | 9.29% | (11,837) | (8,614) |
| At June 30 | Taxes | Net income of the group | Non-cash items | EBITDA | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016 | 2015 Pro forma (*) |
2016 | %Turnover | 2015 Pro | forma (*) %Turnover | 2016 | 2015 Pro forma (*) |
2016 | %Turnover 2015 Pro | forma (*) | %Turnover | |
| Dredgind and environment | (7,051) | (37,556) | 54,009 | 6.73% | 119,828 | 10.23% | 105,944 | 107,600 | 185,305 | 23.10% | 276,289 | 23.59% |
| Correction DEME | (335) | (704) | 53 | 1,044 | 2,638 | 3,273 | ||||||
| Contracting | (3,597) | 3,059 | 4,068 | 1.02% | 746 | 0.22% | 5,028 | 21,108 | 12,637 | 3.16% | 16,477 | 4.95% |
| Real Estate | (33) | (143) | (805) | (10.60%) | 1,439 | 10.75% | 1,429 | (314) | 1,039 | 13.69% | 737 | 5.51% |
| Holding & non-transferred activities |
(324) | (495) | (4,371) | (12,117) | (3,324) | 1,326 | (16,872) | (17,361) | ||||
| Eliminations between segments | (33) | 35 | 92 | (90) | 125 | (124) | ||||||
| Total consolidated | (11,373) | (35,804) | 53,046 | 4.33% | 110,850 | 6.74% | 111,715 | 132,993 | 182,234 | 14.88% | 276,018 | 16.79% |
(*) Amounts adjusted in accordance with the internal organisation as of January 1st, 2016 as described here above.
| At June 30 | Revenue | Income from operating activities | Operating income (EBIT) | Financial income | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 Pro forma (*) |
2015 | 2015 Pro forma (*) |
%Turnover | 2015 | %Turnover | 2015 Pro forma (*) |
%Turnover | 2015 | %Turnover | 2015 Pro forma (*) |
2015 | |
| Dredging and environment |
1,171,037 | 1,171,037 | 168,689 | 14.41% | 168,689 | 14.41% | 180,269 | 15.39% | 180,269 | 15.39% | (23,018) | (23,018) |
| Correction DEME | (3,273) | (3,273) | (3,762) | (3,762) | 5,510 | 5,510 | ||||||
| Contracting | 332,706 | 463,668 | (4,631) | (1.39%) | (19,775) | (4.26%) | (4,631) | (1.39%) | (23,254) | (5.02%) | (225) | (669) |
| Real estate | 13,382 | 13,382 | 1,051 | 7.85% | 1,051 | 7.85% | 2,720 | 20.33% | 2,720 | 20.33% | (1,137) | (1,137) |
| PPP-Concessions | n.a. | 668 | n.a. | (2,058) | n.a. | (1,665) | n.a. | 3,532 | ||||
| Holding & non transferred activities |
131,630 | n.a. | (18,687) | n.a. | (21,773) | n.a. | 10,256 | n.a. | ||||
| Holding | n.a. | 0 | n.a. | (1,485) | n.a. | (1,485) | n.a. | 7,168 | ||||
| Eliminations between segments |
(5,210) | (5,210) | (124) | (124) | (124) | (124) | ||||||
| Total consolidated | 1,643,545 | 1,643,545 | 143,025 | 8.70% | 143,025 | 8.70% | 152,699 | 9.29% | 152,699 | 9.29% | (8,614) | (8,614) |
| At June 30 | Taxes | Net income of the group | Non-cash items | EBITDA | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2015 Pro forma (*) |
2015 | 2015 Pro forma (*) |
%Turnover | 2015 | %Turnover | 2015 Pro forma (*) |
2015 | 2015 Pro forma (*) |
%Turnover | 2015 | %Turnover | |
| Dredging and environment | (37,556) | (37,556) | 119,828 | 10.23% | 119,828 | 10.23% | 107,600 | 107,600 | 276,289 | 23.59% | 276,289 | 23.59% |
| Correction DEME | (704) | (704) | 1,044 | 1,044 | 3,273 | 3,273 | ||||||
| Contracting | 3,059 | 2,613 | 746 | 0.22% | (18,871) | (4.07%) | 21,108 | 18,666 | 16,477 | 4.95% | (1,109) | (0.24%) |
| Real estate | (143) | (143) | 1,439 | 10.75% | 1,439 | 10.75% | (314) | (314) | 737 | 5.51% | 737 | 5.51% |
| PPP-Concessions | n.a. | 0 | n.a. | 1,866 | n.a. | 3,407 | n.a. | 1,349 | ||||
| Holding & non-transferred activities |
(495) | n.a. | (12,117) | n.a. | 1,326 | n.a. | (17,361) | n.a. | ||||
| Holding | n.a. | (49) | n.a. | 5,634 | n.a. | 361 | n.a. | (1,124) | ||||
| Eliminations between segments |
35 | 35 | (90) | (90) | (124) | (124) | ||||||
| Total consolidated | (35,804) | (35,804) | 110,850 | 6.74% | 110,850 | 6.74% | 132,993 | 132,993 | 276,018 | 16.79% | 276,018 | 16.79% |
(*) Amounts adjusted in accordance with the internal organisation as of January 1st, 2016 as described here above.
| At June 30th, 2016 | Dredging and environment |
Contracting Real Estate Holding & non transferred |
Eliminations between |
Total consolidated |
||
|---|---|---|---|---|---|---|
| (thousand euro) | activities | segments | ||||
| ASSETS | ||||||
| Goodwill | 155,960 | 19,209 | 0 | 0 | 0 | 175,169 |
| Property, plant and equipment | 1,694,615 | 31,715 | 227 | 1,483 | 0 | 1,728,040 |
| Non-current loans to consolidated group companies |
0 | 0 | 0 | 40,000 | (40,000) | 0 |
| Other non-current financial assets | 64,666 | 176 | 33,466 | 7,936 | 0 | 106,244 |
| Other non-current assets | 305,074 | 6,527 | 54,481 | 1,261,617 | (1,247,254) | 380,445 |
| Inventories | 28,606 | 20,640 | 49,857 | 1,022 | (1,601) | 98,524 |
| Cash and cash equivalents | 369,730 | 49,085 | 3,446 | 32,295 | 0 | 454,556 |
| Internal cash position - cash pooling - assets |
0 | 59,526 | 0 | 55,714 | (115,240) | 0 |
| Other current assets | 740,161 | 302,952 | 32,970 | 178,952 | (43,649) | 1,211,386 |
| Total assets | 3,358,812 | 489,830 | 174,447 | 1,579,019 | (1,447,744) | 4,154,364 |
| EQUITY AND LIABILITIES | ||||||
| Equity | 1,373,665 | 61,204 | 20,932 | 1,218,686 | (1,247,885) | 1,426,602 |
| Non-current borrowings from consolidated group companies |
0 | 0 | 40,000 | 0 | (40,000) | 0 |
| Bonds | 204,418 | 0 | 0 | 99,958 | 0 | 304,376 |
| Non-current financial liabilities | 324,602 | 9,269 | (1) | 9,999 | 0 | 343,869 |
| Other non-current liabilities | 203,272 | 9,877 | 21,573 | 23,977 | (875) | 257,824 |
| Current financial liabilities | 170,331 | 1,170 | 0 | 10 | 0 | 171,511 |
| Internal cash position - cash pooling - liabilities |
0 | 0 | 65,858 | 49,429 | (115,287) | 0 |
| Other current liabilities | 1,082,524 | 408,310 | 26,085 | 176,960 | (43,697) | 1,650,182 |
| Total equity and liabilities | 3,358,812 | 489,830 | 174,447 | 1,579,019 | (1,447,744) | 4,154,364 |
| At December 31st, 2015 - Pro Forma (*) (thousand euro) |
Dredging and Contracting Real Estate environment Transferred activities |
Holding & Non | Eliminations between segments |
Total consolidated |
||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Goodwill | 155,959 | 19,210 | 53 | 0 | 0 | 175,222 |
| Property, plant and equipment | 1,693,799 | 31,573 | 207 | 2,100 | 0 | 1,727,679 |
| Non-current loans to consolidated group companies |
0 | 875 | 0 | 40,000 | (40,875) | 0 |
| Other non-current financial assets | 58,058 | 176 | 43,986 | 27,281 | 0 | 129,501 |
| Other non-current assets | 299,100 | 7,284 | 52,430 | 1,260,637 | (1,246,182) | 373,269 |
| Inventories | 11,259 | 23,268 | 44,965 | 55 | (1,601) | 77,946 |
| Cash and cash equivalents | 378,405 | 37,116 | 4,473 | 71,958 | 0 | 491,952 |
| Internal cash position - cash pooling - assets |
0 | 49,798 | 0 | 49,751 | (99,549) | 0 |
| Other current assets | 837,265 | 290,309 | 16,580 | 236,663 | (54,227) | 1,326,590 |
| Total assets | 3,433,845 | 459,609 | 162,694 | 1,688,445 | (1,442,434) | 4,302,159 |
| EQUITY AND LIABILITIES | ||||||
| Equity | 1,381,998 | 58,899 | 21,769 | 1,219,422 | (1,247,688) | 1,434,400 |
| Non-current borrowings from consolidated group companies |
0 | 0 | 40,875 | 0 | (40,875) | 0 |
| Bonds | 205,257 | 0 | 0 | 99,959 | 0 | 305,216 |
| Non-current financial liabilities | 339,249 | 9,653 | (5) | 50,000 | 0 | 398,897 |
| Other non-current liabilities | 225,416 | 9,073 | 18,179 | 33,797 | 0 | 286,465 |
| Current financial liabilities | 108,901 | 1,644 | 4,732 | 13 | (4,732) | 110,558 |
| Internal cash position - cash pooling - liabilities |
0 | 777 | 48,974 | 45,113 | (94,864) | 0 |
| Other current liabilities | 1,173,024 | 379,563 | 28,170 | 240,141 | (54,275) | 1,766,623 |
| Total equity and liabilities | 3,433,845 | 459,609 | 162,694 | 1,688,445 | (1,442,434) | 4,302,159 |
(*) Amounts adjusted in accordance with the internal organisation as of January 1st, 2016 as described here above.
| At June 30th, 2016 (In thousand Euro) |
Dredging & environ ment |
Contracting | Real Estate | Holding, non transferred activities and eliminations |
Total consolidated |
|---|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital |
182,205 | (2,170) | 1,087 | (2,542) | 178,580 |
| Cash flow from operating activities | 117,762 | 17,603 | 1,427 | (3,073) | 133,719 |
| Cash flow from investing activities | (112,493) | (3,448) | 1,497 | (539) | (114,983) |
| Cash flow from financing activities | (13,183) | (5,790) | (3,908) | (31,913) | (54,794) |
| Net increase/(decrease) of cash | (7,914) | 8,365 | (984) | (35,525) | (36,058) |
| At June 30th, 2015 (In thousand Euro) |
Dredging & environ ment |
Contracting | Real Estate | PPP Concessions |
Holding and eliminations |
Total consolidated |
|---|---|---|---|---|---|---|
| Cash flow from operating activities before changes in working capital |
259,913 | (1,407) | 738 | 2,230 | (1,490) | 259,984 |
| Cash flow from operating activities | 179,414 | (2,761) | (253) | (7,194) | (20,121) | 149,085 |
| Cash flow from investing activities | (149,401) | (4,120) | (375) | (2,646) | 22,162 | (134,380) |
| Cash flow from financing activities | (286,190) | (8,664) | 2,479 | 9,169 | (44,171) | (327,377) |
| Net increase/(decrease) of cash | (256,177) | (15,545) | 1,851 | (671) | (42,130) | (312,672) |
Cash flows from financing activities include cash pooling loans and borrowing with other segments. A positive amount means a use of liquidities in the cash pooling. This section is also influenced by external financing, especially and primarily in the segments Real Estate, Holding, and Dredging and environment. The dredging and environment segment is not part of the cash pooling of the group CFE.
| At June 30th, 2016 (In thousand Euro) |
Dredging & environment |
Contracting | Real Estate |
Holding & non transferred activities |
Total consolidated |
|---|---|---|---|---|---|
| Amortizations Investments |
(108,582) 108,904 |
(3,824) 4,006 |
(57) 161 |
285 16 |
(112,178) 113,087 |
| At June 30th, 2015 | Dredging & environment |
Contracting | Real Estate |
Holding & non transferred |
Total consolidated |
| (In thousand Euro) | activities | ||||
| Amortizations Investments |
(110,869) 179,786 |
(17,173) 4,757 |
(27) 75 |
(2,284) 1,176 |
(130,353) 185,794 |
The investments include the acquisitions done for the purpose of the group investments and the acquisitions done by the segments Real Estate and PPP-concessions for their operational activities. Acquisitions through business combinations are not disclosed in those amounts.
| (In thousand Euro) | June 2016 | June 2015 | |
|---|---|---|---|
| Capital dredging | 356,584 | 638,863 | |
| Environmental contracting | 103,791 | 101,875 | |
| Fall pipe and landfalls | 32,804 | 56,755 | |
| Maintenance dredging | 112,260 | 125,844 | |
| Marine works | 173,272 | 247,700 | |
| Civil works | 23,358 | 0 | |
| Total | 802,069 | 1,171,037 |
| (In thousand Euro) | June 2016 | June 2015 | |
|---|---|---|---|
| Construction Multitechnics Railway |
293,468 76,246 30,776 |
236,070 66,526 30,110 |
|
| Total | 400,490 | 332,706 |
(*) Amounts adjusted in accordance with the internal organisation as of January 1st, 2016 as described here above.
| REVENUE OF CFE GROUP AT JUNE 30 | ||
|---|---|---|
| (In thousand Euro) | June 2016 | June 2015 |
| Belgium | 464,304 | 476,660 |
| Other Europe | 344,382 | 346,642 |
| Middle East | 34,215 | 40,163 |
| Asia | 170,216 | 108,755 |
| Oceania | 10,471 | 81,172 |
| Africa | 141,399 | 527,528 |
| Americas | 59,545 | 62,625 |
| Total consolidated | 1,224,532 | 1,643,545 |
On June 29th, 2016 through its subsidiary CFE Contracting SA, CFE increased its stake in Groep Terryn from 77.5% to 100%. Groep Terryn remains fully integrated.
DISPOSALS AS OF JUNE 30, 2016
On June 29th ,2016 CFE SA sold its 25% stake in Locorail NV.
Revenues from auxiliary activities amount to 31,227 thousand Euro (June 2015 : 63,755 thousand Euro) and include gains on disposals of property, plant and equipment for 783 thousand Euro (June 2015: 13,052 thousand Euro), as well as rent income, recharges of costs and other compensation for 30,444 thousand Euro (June 2015 : 50,703 thousand Euro). The substantial decrease in the revenue of auxiliary activities is mainly due to the decrease of revenues from auxiliary activities in the segment Dredging and environment.
| As of June 30 | |||
|---|---|---|---|
| (in thousand Euro) | 2016 | 2015 | |
| Cost of financial debt | (13,265) | (13,692) | |
| Derivative instruments - fair value adjustments through profit and loss | 183 | 154 | |
| Derivative instruments used as hedging instruments | 0 | 0 | |
| Assets measured at fair value | 0 | 0 | |
| Available-for-sale financial instruments | 0 | 0 | |
| Assets and liabilities at amortized cost - income from availabilities | 5,249 | 4,686 | |
| Assets and liabilities at amortized cost - interest charges | (18,697) | (18,532) | |
| Other financial income and expense | 1,428 | 5,078 | |
| Realized / unrealized translation gains/(losses) | (8,834) | (1,184) | |
| Dividends received from non-consolidated companies | 64 | 3,628 | |
| Impairment of financial assets | 0 | (1,393) | |
| Other | 10,198 | 4,027 | |
| Financial result | (11,837) | (8,614) |
The evolution of the exchange gain/(loss) realized/not realized in the first half year of 2016 compared to the same period in 2015 is mostly explained by the valuation of the Euro against other foreign currencies in DEME.
The caption "Other" includes the capital gain related to the sale of CFE's participation in the company Locorail NV, in charge for the maintenance and the financing of the railway connection Liefkenshoek in Antwerp.
As of June 30, 2016 the part of non-controlling interests in the result amounts to 799 thousand Euro (June 2015 : 2,569 thousand Euro).
The tax expense amounts to 11,373 thousand Euro for the first half year 2016 (June 2015 : 35,804 thousand Euro). The effective tax rate amounts to 19.38 % (June 2015 : 26.64%). The effective tax rate is defined as the income tax expense over the pre-tax income from which the earnings from associates and joint ventures are deducted.
| As of June 30, 2016 (In thousand Euro) |
Land & buildings |
Installations & equipments |
Furniture & fittings |
Under construction |
Total |
|---|---|---|---|---|---|
| Acquisition cost | |||||
| Balance at the end of the previous period | 113,239 | 3,070,912 | 58,355 | 90,422 | 3,332,928 |
| Effect of foreign currency fluctuations | (382) | (799) | (526) | 55 | (1,652) |
| Acquisitions | 4,169 | 74,644 | 1,530 | 31,025 | 111,368 |
| Transfers from one asset to another | 12,994 | 17,984 | (180) | (28,096) | 2,702 |
| Disposals | (1,690) | (10,359) | (1,437) | (9) | (13,495) |
| Acquisitions through business combinations |
0 | (5) | (1) | 0 | (6) |
| Balance at the end of the year | 128,330 | 3,152,377 | 57,741 | 93,397 | 3,431,845 |
| Depreciations & impairment | |||||
| Balance at the end of the previous period | (54,244) | (1,503,845) | (47,160) | 0 | (1,605,249) |
| Effect of foreign currency fluctuations | 308 | 1,042 | 391 | 0 | 1,741 |
| Depreciations | (1,478) | (106,011) | (2,462) | 0 | (109,951) |
| Transfers from one asset to another | (2,924) | 51 | 173 | 0 | (2,700) |
| Disposals | 1,261 | 9,694 | 1,394 | 0 | 12,349 |
| Acquisitions through business - | 0 | 4 | 1 | 0 | 5 |
| combinations | |||||
| Balance at the end of the period | (57,077) | (1,599,065) | (47,663) | 0 | (1,703,805) |
| Net carrying amount | |||||
| At January 1st, 2016 At June 30, 2016 |
58,995 71,253 |
1,567,067 1,553,312 |
11,195 10,078 |
90,422 93,397 |
1,727,679 1,728,040 |
The net carrying amount of tangible assets amounts to 1,728,040 thousand Euro on June 30, 2016 ( December 31, 2015: 1,727,679 thousand Euro).
On June 30, 2016, the acquisitions of tangible assets amount to 111,368 thousand Euro, and are mainly related to DEME (107,517 thousand Euro).
The net value of the fixed assets held in leasing amounts to 124,125 thousand Euro (December 31 2015: 123,542 thousand Euro). Those contracts relate mainly to the vessels held by DEME, the building of the subsidiary Louis Stevens & Co NV, the building of the subsidiary Engema, the trucks of the subsidiary ETEC and the buildings and equipment of Groep Terryn and its subsidiaries.
The amount of property, plant, and equipment constituting a guarantee for some borrowing amounts to 264,919 thousand Euro (December 31, 2015 : 313,244 thousand Euro).
| As of June 30, 2015 (In thousand Euro) |
Land & buildings |
Installations & equipments |
Furniture & fittings |
Under construction |
Total |
|---|---|---|---|---|---|
| Acquisition cost | |||||
| Balance at the end of the previous period | 123,862 | 2,802,541 | 57,561 | 2,274 | 2,986,238 |
| Effect of foreign currency fluctuations | 132 | 6,089 | 57 | 60 | 6,338 |
| Acquisitions | 792 | 128,475 | 4,288 | 51,906 | 185,461 |
| Transfers from one asset to another | (3,882) | 106 | (268) | (345) | (4,389) |
| Disposals | (9,044) | (80,107) | (3,126) | (108) | (92,385) |
| Acquisitions through business combinations |
0 | 254,607 | (84) | 0 | 254,523 |
| Balance at the end of the year | 111,860 | 3,111,711 | 58,428 | 53,787 | 3,335,786 |
| Depreciations & impairment | |||||
| Balance at the end of the previous period | (50,613) | (1,385,290) | (47,060) | 0 | (1,482,963) |
| Effect of foreign currency fluctuations | (230) | (5,943) | (56) | 0 | (6,229) |
| Depreciations | (9,382) | (115,825) | (2,458) | 0 | (127,665) |
| Transfers from one asset to another | 2,965 | 258 | 268 | 0 | 3,491 |
| Disposals | 5,589 | 75,297 | 2,715 | 0 | 83,601 |
| Acquisitions through business - | 0 | (50,706) | 30 | 0 | (50,676) |
| combinations | |||||
| Balance at the end of the period | (51,671) | (1,482,209) | (46,561) | 0 | (1,580,441) |
| Net carrying amount | |||||
| At January 1st, 2015 At June 30th, 2015 |
73,249 60,189 |
1,417,251 1,629,502 |
10,501 11,867 |
2,274 53,787 |
1,503,275 1,755,345 |
On June 30, 2016 investments in associates amount to 152,908 thousand Euro (December 2015: 151,377 thousand Euro) in the statement of financial position. The decrease is mainly explained by the earnings from associates and joint ventures which amounts to 4,938 thousand Euro (June 2015: 9,674 thousand Euro).
.
On June 30, 2016 the inventories amount to 98,524 thousand Euro (December 2015: 77,946 thousand Euro) and are detailed as follows:
| (In thousand Euro) | June 30, 2016 | December 31, 2015 |
|---|---|---|
| Raw materials and consumables | 53,835 | 31,543 |
| Raw material and consumables (impairment losses) | 0 | (91) |
| Finished products and goods purchased for resale | 46,657 | 47,873 |
| Finished products (impairment losses) | (1,968) | (1,379) |
| Inventories | 98,524 | 77,946 |
On June 30, 2016, the trade and other receivables amount to 1,135,129 thousand Euro (December 2015: 1,192,977 thousand Euro). The decrease during the 1st half year 2016 is mainly due to DEME's activities.
In order to reduce the current risk, the group CFE monitors regularly its outstanding clients and adapts its position towards them. Regarding this matter, it should be noted that CFE is involved in two projects in Chad. One project consists of the construction of the "Grand Hôtel" which was delivered in 2016 to client's satisfaction; the other project consists in the building for the Ministry of Finance. The Chadian government received a proposal during the second quarter for a conditional refinancing of the outstanding receivables relating to the Grand Hôtel in N'Djamena. This proposal is currently being examined by the Chadian authorities.
The exposure to this country remains unchanged at €60 million.
On June 30, 2016 these provisions amount 104,937 thousand Euro, which represents a decrease of 4,737 thousand Euro compared to the end of December 2015 (109,674 thousand Euro).
| After - sale service |
Other current risks |
Negative equity method |
Other non current risks |
Total | |
|---|---|---|---|---|---|
| 14,012 | 50,808 | 30,258 | 14,596 | 109,674 | |
| (182) | |||||
| 0 | |||||
| (4,342) | |||||
| 25,058 | |||||
| (25,120) | |||||
| 0 | (151) | 0 | 0 | (151) | |
| 15,061 | 51,182 | 26,419 | 12,275 | 104,937 | |
| (80) 0 20 2,038 (929) |
(102) 0 (1,519) 21,692 (19,546) |
0 0 (3,839) 0 0 |
0 0 996 1,328 (4,645) |
The provision for after-sale service increased by 1,049 thousand Euro to reach 15,061 thousand Euro on June 30, 2016.
The other non-current risks which amount 12,275 thousand Euro at the end of June 2016 include, among others, provisions for restructuring.
If the share of CFE group in the economic losses of associates and joint ventures exceeds the carrying amount of investment, the carrying amount is limited to zero. Losses higher than the carrying amount are not recognised, except for the amount of commitments of CFE as regards to some of those associates and joint ventures. The amounts of those commitments are accounted as non-current provisions to the extent that the group considers it has an obligation to support those subsidiaries and their projects.
Based on available information at the date on which the financial statements were approved by the Board of Directors, we are not aware of any contingent assets or liabilities, with the exception of contingent assets or liabilities related to construction contracts (for example, the group's claims against customers or claims by subcontractors) that can be described as normal in the construction and the dredging sector and which are treated by applying the percentage-of-completion method during the recognition of revenue.
CFE group uses derivatives financial instruments mainly in order to reduce the risks linked to unfavourable movements of interests rates, exchange rate, price of commodities and other market risks. The company does not hold or does not sell any financial instruments for trading purposes. However, derivatives which are not eligible to be considered as hedging instruments are disclosed as financial instruments held for trading.
On June 30, 2016 the derivative financial instruments have been estimated at their fair values.
| 30/06/2016 | 31/12/2015 | |||||||
|---|---|---|---|---|---|---|---|---|
| (In thousand Euro) | Non-current | Current | Total | Non-current | Current | Total | ||
| Bank loans and other financial debt | (281,862) | (120,410) | (402,272) | (253,749) | (95,406) | (349,155) | ||
| Bonds | (304,376) | 0 | (304,376) | (305,216) | 0 | (305,216) | ||
| Drawings on credit facilities | (10,000) | 0 | (10,000) | (50,000) | 0 | (50,000) | ||
| Borrowings under finance leases | (52,007) | (51,090) | (103,097) | (95,148) | (15,136) | (110,284) | ||
| Total long-term financial debt | (648,245) | (171,500) | (819,745) | (704,113) | (110,542) | (814,655) | ||
| Short-term financial debt | 0 | (11) | (11) | 0 | (16) | (16) | ||
| Cash equivalents | 0 | 9,705 | 9,705 | 0 | 13,863 | 13,863 | ||
| Cash | 0 | 444,851 | 444,851 | 0 | 478,089 | 478,089 | ||
| Net short-term financial debt/(cash) | 0 | 454,545 | 454,545 | 0 | 491,936 | 491,936 | ||
| Total net financial debt | (648,245) | 283,045 | (365,200) | (704,113) | 381,394 | (322,719) | ||
| Derivative instruments used as interest-rate hedges |
(12,178) | (7,102) | (19,280) | (8,517) | (7,611) | (16,128) |
| Less than 1 year |
Between 1 and 2 years |
Between 2 and 3 years |
Between 3 and 5 years |
Between 5 and 10 years |
More than 10 |
Total | |
|---|---|---|---|---|---|---|---|
| (In thousand Euro) | years | ||||||
| Bank loans and other financial debt | (120,410) | (133,167) | (55,680) | (56,915) | (36,100) | 0 | (402,272) |
| Bonds | (1,752) | (101,710) | (200,914) | 0 | 0 | 0 | (304,376) |
| Drawings on credit facilities | 0 | (10,000) | 0 | 0 | 0 | 0 | (10,000) |
| Borrowings under finance leases | (51,090) | (9,983) | (7,305) | (12,576) | (18,713) | (3,430) | (103,097) |
| Total long-term financial debt | (173,252) | (254,860) | (263,899) | (69,491) | (54,813) | (3,430) | (819,745) |
| Short-term financial debt | (11) | 0 | 0 | 0 | 0 | 0 | (11) |
| Cash equivalents | 9,705 | 0 | 0 | 0 | 0 | 0 | 9,705 |
| Cash | 444,851 | 0 | 0 | 0 | 0 | 0 | 444,851 |
| Net short-term financial debt | 454,545 | 0 | 0 | 0 | 0 | 0 | 454,545 |
| Change in net financial debt | 281,293 | (254,860) | (263,899) | (69,491) | (54,813) | (3,430) | (365,200) |
At June 30th, 2016 the CFE group had confirmed long-term bank credit facilities of 125 million Euro, of which 10 million Euro were drawn at the end of June 2016.
On June 2012, 21st CFE issued 100 million Euro of bond maturing on June 21st, 2018 and paying a coupon of 4.75%. On February 14th, 2013 DEME issued 200 million Euro of bond maturing on February 14th, 2019 and paying a coupon of 4.145%.
Bank loans and other financial debts mainly concern DEME and loans relating to real-estate projects and are without recourse against CFE.
Bilateral loans are subject to specific covenants that take into account factors such as financial debt and the ratio of debt to equity or non-current assets, as well as cash flow. The group complied with all these covenants.
The policy and the risk management procedures defined by the group are the same as the one's declared in the 2015 annual report.
| Fixed rate | Floating rate | Total | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Type of debts | Amounts | Quota | Rate | Amounts | Quota | Rate | Amounts | Quota | Rate | ||
| Bank loans and other financial debts |
274 | 0.07% | 1.32% | 401,998 | 97.12% | 0.62% | 402,272 | 49.07% | 0.62% | ||
| Bonds | 304,376 | 75.00% | 4.34% | 0 | 0.00% | 0.00% | 304,376 | 37.13% | 4.34% | ||
| Credit line used | 0 | 0.00% | 0.00% | 10,000 | 2.42% | 1.45% | 10,000 | 1.22% | 1.45% | ||
| Loans related to finance lease |
101,178 | 24.93% | 0.29% | 1,919 | 0.46% | 0.07% | 103,097 | 12.58% | 0.29% | ||
| Total | 405,828 | 100% | 3.33% | 413,917 | 100% | 0.64% | 819,745 | 100% | 1.97% |
| Fixed rate | Floating rate Floating rate capped + inflation |
Total | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Type of debts | Amounts | Quota | Rate | Amounts | Quota | Rate | Amounts | Quota | Rate | Amounts | Quota | Rate |
| Bank loans and other financial debts |
400,594 | 49.69% | 1.89% | 1,678 | 12.34% | 1.69% | 0 | 0.00% | 0.00% | 402,272 | 49.07% | 1.89% |
| Bonds | 304,376 | 37.76% | 4.34% | 0 | 0.00% | 0.00% | 0 | 0.00% | 0.00% | 304,376 | 37.13% | 4.34% |
| Credit line used | 0 | 0.00% | 0.00% | 10,000 | 73.54% | 1.45% | 0 | 0.00% | 0.00% | 10,000 | 1.22% | 1.45% |
| Loans related to finance lease |
101,178 | 12.55% | 0.29% | 1,919 | 14.12% | 0.07% | 0 | 0.00% | 0.00% | 103,097 | 12.58% | 0.29% |
| Total | 806,148 | 100% 2.62% | 13,597 | 100% | 1.29% | 0 | 0.00% | 0.00% | 819,745 | 100% | 2.60% |
The outstanding debts by currency are:
| (In thousand Euro) | June 2016 | December 2015 | ||
|---|---|---|---|---|
| Euro | 819,745 | 814,655 | ||
| US Dollar | 0 | 0 | ||
| Other currencies | 0 | 0 | ||
| Total long term debts | 819,745 | 814,655 |
| June 30, 2016 (In € thousands) |
Financial instruments not designated as hedging instruments |
Derivatives designated as hedging instruments |
Financial instruments available for sales |
Loans and trade receivables at amortised costs |
Total of carrying amount |
Fair value measurements of financial assets by level |
Fair value of the class |
|---|---|---|---|---|---|---|---|
| Non-current financial assets |
2,190 | 4,672 | 101,572 | 108,434 | 108,434 | ||
| Investments (1) | 4,672 | 4,672 | Level 2 | 4,672 | |||
| Financial loans and receivables (1) |
101,572 | 101,572 | Level 2 | 101,572 | |||
| Interest rate | 2,190 | 2,190 | Level 2 | 2,190 | |||
| derivatives – cash | |||||||
| flow hedges | |||||||
| Current financial | 1,330 | 1,589,685 | 1,591,015 | 1,591,015 | |||
| assets | |||||||
| Interest rate derivatives – non |
|||||||
| hedge | |||||||
| Trade and other | 1,135,129 | 1,135,129 | Level 2 | 1,135,129 | |||
| receivables | |||||||
| Cash management | 1,330 | 1,330 | Level 2 | 1,330 | |||
| financial assets | |||||||
| Cash equivalents (2) | 9,705 | 9,705 | Level 2 | 9,705 | |||
| Cash at bank and in hand (2) |
444,851 | 444,851 | Level 2 | 444,851 | |||
| Total assets | 3,520 | 4,672 | 1,691,257 | 1,699,449 | 1,699,449 | ||
| Non-current | 28,941 | 648,245 | 677,186 | 703,138 | |||
| financial debts | |||||||
| Bonds | 304,376 | 304,376 | Level 1 | 314,899 | |||
| Financial debts Interest rate |
28,941 | 343,869 | 343,869 | Level 2 Level 2 |
359,298 | ||
| derivatives – cash | 28,941 | 28,941 | |||||
| flow hedges | |||||||
| Current financial | 26,975 | 7,102 | 1,264,962 | 1,299,039 | 1,307,046 | ||
| liabilities | |||||||
| Interest rate | 104 | 104 | Level 2 | 104 | |||
| derivatives – highly | |||||||
| probable projected cash flow hedges |
|||||||
| Interest rate | 6,998 | 6,998 | Level 2 | 6,998 | |||
| derivatives – cash | |||||||
| flow hedges | |||||||
| Exchange rate | 14,485 | 14,485 | Level 2 | 14,485 | |||
| derivatives – non cash | |||||||
| flow hedges | |||||||
| Other derivatives | 12,490 | 12,490 | Level 2 | 12,490 | |||
| instruments – non hedge |
|||||||
| Trade payables and | 1,093,451 | 1,093,451 | Level 2 | 1,093,451 | |||
| other operating debts | |||||||
| Financial debts | 171,511 | 171,511 | Level 2 | 179,518 | |||
| Total liabilities | 26,975 | 36,043 | 1,913,207 | 1,976,225 | 2,010,184 |
| December 31st, 2015 | Financial | Derivatives | Financial | Loans and | Total of | Fair value | Fair value |
|---|---|---|---|---|---|---|---|
| (In € thousands) | instruments not designated |
designated as hedging |
instruments available for |
trade receivables at |
carrying amount |
measurements of financial |
of the class |
| as hedging | instruments | sales | amortised | assets by | |||
| instruments | costs | level | |||||
| Non-current financial assets | 1,381 | 2,811 | 126,690 | 130,882 | 130,882 | ||
| Investments (1) | 2,811 | 2,811 | Level 2 | 2,811 | |||
| Financial loans and receivables (1) | 126,690 | 126,690 | Level 2 | 126,690 | |||
| Interest rate derivatives – cash flow | 1,381 | 1,381 | Level 2 | 1,381 | |||
| hedges | |||||||
| Current financial assets | 8,514 | 1,684,929 | 1,693,443 | 1,693,443 | |||
| Interest rate derivatives – non hedge | |||||||
| Trade and other receivables | 1,192,977 | 1,192,977 | Level 2 | 1,192,977 | |||
| Cash management financial assets | 8,514 | 8,514 | Level 2 | 8,514 | |||
| Cash equivalents (2) | 13,863 | 13,863 | Level 2 | 13,863 | |||
| Cash at bank and in hand (2) | 478,089 | 478,089 | Level 2 | 478,089 | |||
| Total assets | 9,895 | 2,811 | 1,811,619 | 1,824,325 | 1,824,325 | ||
| Non-current financial debts | 33,359 | 704,113 | 737,472 | 762,424 | |||
| Bonds | 305,216 | 305,216 | Level 1 | 315,824 | |||
| Financial debts | 398,897 | 398,897 | Level 2 | 413,241 | |||
| Interest rate derivatives – cash flow | 33,359 | 33,359 | Level 2 | 33,359 | |||
| hedges | |||||||
| Current financial liabilities | 27,535 | 7,611 | 1,295,444 | 1,330,590 | 1,346,326 | ||
| Interest rate derivatives – highly | 288 | 288 | Level 2 | 288 | |||
| probable projected cash flow hedges | |||||||
| Interest rate derivatives – cash flow | 7,323 | 7,323 | Level 2 | 7,323 | |||
| hedges | |||||||
| Exchange rate derivatives – non cash | 4,795 | 4,795 | Level 2 | 4,795 | |||
| flow hedges | |||||||
| Other derivatives instruments – non | 22,740 | 22,740 | Level 2 | 22,740 | |||
| hedge | |||||||
| Trade payables and other operating debts | 1,184,886 | 1,184,886 | Level 2 | 1,184,886 | |||
| Financial debts | 110,558 | 110,558 | Level 2 | 126,294 | |||
| Total liabilities | 27,535 | 40,970 | 1,999,557 | 2,068,062 | 2,108,750 |
(1) Included in items "Other non-current financial assets" and "Other noncurrent assets".
(2) Included in item "Cash and cash equivalents".
The fair value of financial instruments can be classified into three levels based on the degree to which the inputs to the fair value measurements are observable:
The fair value of financial instruments have been determined using the following methods :
The total amount of commitments granted other than guarantees for the period ended June 30th, 2016 is 992,408 thousand Euro (December 2015: 1,268,387 thousand Euro) and is detailed by nature as follows:
| (In thousand Euro) | ||
|---|---|---|
| June 2016 | December 2015 | |
| Performance guarantees and performance bonds (a) | 690,016 | 905,798 |
| Bid bonds (b) | 17,630 | 11,292 |
| Repayment of advance payments (c) | 20,224 | 21,241 |
| Retentions (d) | 25,112 | 41,985 |
| Deferred payments to subcontractors and suppliers (e) | 51,016 | 77,405 |
| Other commitments given - including 132,866 thousand Euro of corporate guarantees at | 188,410 | 210,666 |
| DEME | ||
| Total | 992,408 | 1,268,387 |
a) Guarantees given in relation to the performance of works contracts. If the construction entity fails to perform, the bank (or insurance company) undertakes to compensate the customer to the extent of the guarantee.
b) Guarantees provided as part of tenders relating to work contracts.
c) Guarantees provided by a bank to a customer guaranteeing the repayment of advance payments in relation to contracts (mainly at DEME).
d) Security provided by a bank to a client to replace the use of retention money.
e) Guarantee covering the settlement of a liability to a supplier or subcontractor.
| (In thousand Euro) | June 2016 | December 2015 |
|---|---|---|
| Performance guarantees and performance bonds Other commitments received |
109,700 2,634 |
102,720 2,110 |
| Total | 112,334 | 104,830 |
The CFE group has a number of claims that we qualify as normal for the construction and the dredging industry. In most of the cases, the group CFE expects to conclude a transactional convention with the counterparty, which substantially reduces the number of procedures. Currently, negotiations are on-going regarding some receivables. At the moment, it is not possible to assess the potential asset.
| (In thousand Euro) | June 30, 2016 | December 31, 2015 |
|---|---|---|
| Assets with related parties | 333,763 | 333,963 |
| Non-current financial assets | 103,705 | 129,966 |
| Trade receivables and other operating trades | 206,306 | 195,383 |
| Other current assets | 23,752 | 8,614 |
| Liabilities with related parties | 102,721 | 121,433 |
| Other non-current liabilities | 5,550 | 11,461 |
| Trade payables and other operating trades | 97,171 | 109,972 |
| (In thousand Euro) | June 30, 2016 | June 30, 2015 |
|---|---|---|
| Expenses and incomes with related parties | 85,602 | 34,164 |
| Turnover and incomes from auxiliary activities | 90,715 | 69,946 |
| Purchases and other operating expenses | (4,881) | (37,788) |
| Expenses and financial incomes | (232) | 2,006 |
None.
The international activities of the group CFE for the contracting and real estate segments are mainly within the Euro zone. As a consequence, the exposure to exchange risk and the impact on financial statements are limited. However, the dredging and environment segment realize a large part of its business internationally. These activities are mainly in US Dollars or in currencies strictly related to the US Dollar. DEME uses financial instruments to hedge exchange rate risk.
For DEME, the research and development relate to the improvement of the efficiency of the maritime-equipment. This company also lead a program in partnership with Belgian universities and the Flemish Region in order to develop the production of eco-friendly energy in the maritimeenvironment.
The activity of construction is seasonal and depends on the climatic conditions of the winter.
Turnover and results achieved in the first half year cannot be extrapolated over the full year. The seasonal effect on the business is reflected in a higher use of cash in the first half year.
No adjustments were made to take account of the impact of seasonal factors on the group's financial statements for the first half year.
Income and expenses of the group from normal business operations which are subject to a seasonal, cyclical or occasional nature were recognized following the same valuation as at year end. They were therefore neither anticipated nor deferred in the interim financial statements.
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 statement of financial position 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 26.
We have reviewed the consolidated interim financial information of Compagnie d'Entreprises CFE SA ("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 statement of financial position shows total assets of 4.154.364 (000) EUR and the consolidated condensed income statement shows a consolidated profit (group share) for the period then ended of 53.046 (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.
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.
Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information of Compagnie d'Entreprises CFE SA has not been prepared, in all material respects, in accordance with IAS 34 – Interim Financial Reporting as adopted by the European Union.
Without modifying the unqualified opinion expressed above, we draw your attention to the Note 13 of the consolidated interim financial information which describes the uncertainties regarding the amount due by the State of Chad and the undertaken actions in order to facilitate its payment.
Diegem, 26 August 2016
BV o.v.v.e. CVBA / SC s.f.d. SCRL BV o.v.v.e. CVBA / SC s.f.d. SCRL Represented by Michel Denayer Represented by Rik Neckebroeck
__ DELOITTE Bedrijfsrevisoren / Reviseurs d'Entreprises DELOITTE Bedrijfsrevisoren / Reviseurs d'Entreprises
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