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Compagnie d'Entreprises CFE SA

Earnings Release Feb 27, 2015

3929_er_2015-02-27_03919375-1cea-434c-92e1-4ba794b53aae.pdf

Earnings Release

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PRESS RELEASE Embargoed until Friday 27 February 2015 – 07h00 CET

CFE

Results of financial year 2014

  • Strong growth in operating income
  • High net income (group share) : €160 million
  • Substantial decrease in net financial debt
  • Favourable 2015 outlook for the Dredging and Environment division
  • On going recovery of Contracting division
  • Gross dividend per share of €2.00* (74% increase)

CFE's board of directors met on 26 February 2015 to finalize the financial statements for the year ended 31 December 2014, which will be submitted to the forthcoming general meeting of shareholders on 7 May 2015.

1. 2014 key figures

Preliminary note :

The financial statements for the 2014 financial year have been restated to take account of changes in accounting methods following the implementation of IFRS 10 and 11. Following that restatement, DEME's income statement was consolidated using the equity method at 31 December 2013, with CFE owning 50% of its dredging entity until 24 December 2013. For the sake of readability, a pro forma 2013 column shows the key figures of DEME's income statement at 100% for the 2013 financial year.

In million € 2014 2013 (1) Pro Forma
2013 (1)
Change
2014/2013
Pro Forma
DEME
at 50%
DEME
at 100%
Revenue 3,510.5 984.9 3,346.1 +4.9%
Self-financing capacity (EBITDA)
% of revenue
479.5
13.7%
-9.8
-1.0%
460.9
13.8%
+4.0%
Operating income on activities (2)
% of revenue
220.4
6.3%
-35.0
-3.6%
241.2
7.2%
-8.6%
Operating income (including earnings from
associates and joint ventures) (2)
% of revenue
240.5
6.9%
16.3
1.7%
166.4
5.0%
+44.5%
Net result part of the group (2)
% of revenue
159.9
4.6%
7.9
0.8%
61.7
1.8%
+159.2%
Net result share of the group (3)
Earnings per share (in €)
Gross dividend per share (in €)
159.9
6.32
2.00
-81.2
-3.21
1.15
-27.4
-
-
n.s.
n.s.
+73.9%
Order book at 31 December (4) 3,565.8 4,387.9 4,387.9 -18.7%

(*) Amount to be submitted for approval to the annual general meeting of 7 May 2015.

(1) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

(2) Before non-recurrent items incurred in 2013 by the treatment of the consolidation of the additional 50% stake in DEME arising from the

contribution in kind. (3) After non-recurrent items incurred in 2013 by the treatment of the consolidation of the additional 50% stake in DEME arising from the contribution in kind.

(4) Amounts also including the order book of equity accounted companies as of 1 January 2014 following the implementation of IFRS 10 and 11.

2. Analysis by division

Dredging and Environment division

The amounts stated in this section relating to DEME are at 100%.

Key figures

In million € 2014 2013 (*) Change
2014/2013
DEME Restatements
(****)
Total DEME Restatements
(****)
Total
Revenue 2,419.7 - 2,419.7 2,361.2 - 2,361.2 +2.5%
EBITDA 443.6 2.2 445.8 475.4 -4.6 470.7 -5.3%
Operating income (**) 248.9 -7.8 241.1 206.8 -4.6 202.2 +19.2%
Net result share of the
group
168.9 2.4 171.3 109.1 -3.2 105.9 +61.8%
Investments 165.4 - 165.4 98.8 - 98.8 +67.4%
Net financial debt 126.8 7.3 134.1 533.5 9.0 542.5 -75.3%
Order book (***) 2,420.0 - 2,420.0 3,049.0 - 3,049.0 -20.6%

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

(**) Including results of associated companies and joint ventures.

(***) Amounts also including the order book of equity accounted companies as of 1 January 2014 following the implementation of IFRS 10 and 11.

(****) See comments on page 4.

Key figures according to the economic approach

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)
2014 2013 Change
2014/2013
Revenue 2,586.9 2,531.6 +2.2%
EBITDA 501.5 437.8 +14.6%
Operating income on activities 259.1 216.5 +19.7%
Net result share of the group 168.9 109.1 +54.8%
Net financial debt 212.8 711.3 -70.1%

Revenue

DEME's revenue amounted to €2,419.7 million, i.e. up 2.5% on the previous year. According to the economic approach, the revenue would have amounted to €2,586.9 million (+ 2.2%).

While the first phase of the dredging works in Yamal were successfully completed in October 2014, the Wheatstone and New Doha Port projects are progressing steadily and are due to finish at the beginning of the 2015 financial year.

In Egypt, DEME started work on widening and deepening the Suez Canal. Activity in the rest of Africa was also particularly buoyant with several projects in progress, more particularly in Ghana and Nigeria.

In the field of renewable energy, GeoSea continued to work on numerous projects, including the installation of 80 wind turbines in the Baltic Sea.

embargoed until Friday 27 February 2015 – 07h00 CET - 3 regulated information

Evolution of activity by business area (economic approach)

In % 2014 2013
Capital dredging 55% 50%
Maintenance dredging 11% 11%
Fallpipe and landfalls 9% 9%
Environnement 7% 7%
Marine works 18% 23%
Total 2,587 2,532

Evolution of activity by geographical area (economic approach)

In % 2014 2013
Europe (EU) 34% 43%
Europe (non-EU) 7% 2%
Africa 14% 9%
Americas 6% 5%
Asia-Pacific 30% 31%
Middle East 8% 8%
India and Pakistan 1% 2%
Total 2,587 2,532

EBITDA and operating income

EBITDA in 2014 amounted to €443.6 million, compared to €475.4 million in 2013. According to the economic approach, EBITDA would have been up 14.6%, reaching €501.5 million, or 19.4% of economic revenue.

Operating income soared to €248.9 million, compared to €206.8 million in 2013.

Order book

The contraction of DEME's order book was expected due to the very high level of activity in Australia and Qatar. Nevertheless, DEME won several major contracts during the year, such as in Russia (Yamal), Egypt (Suez Canal), South America, as well as offshore wind projects.

DEME also won around €1.6 billion worth of new orders in the first two months of 2015 (not included in the order book as of 31 December 2014). Those contracts are primarily for phase 1 of the Tuas terminal in Singapore, maintenance dredging of the river Scheldt in Belgium, extension of the EKO Atlantic peninsula in Nigeria, and several contracts in India and La Réunion.

Investments and net financial debt

Investments in 2014 amounted to €165.4 million. Apart from capitalized expenses connected with major ship repairs and maintenance (according to IAS 16), this amount includes the conversion of an operating lease into a finance lease for one of the vessels.

In the second half of 2014, GeoSea concluded an agreement with the German company Hochtief for the acquisition of its offshore assets. The transaction, which is to be finalized in the first half of 2015, will give GeoSea 100% ownership of Innovation I, one of the biggest jack-up vessels in the world. GeoSea has also undertaken to take over certain commitments relating to staff and other assets. Those commitments will have only a limited impact on DEME's balance sheet.

DEME also decided to invest in two new green vessels for the offshore energy market, which will be operational in 2017. The Living Stone is a multipurpose vessel that will be used for deep-sea rock dumping and for laying submarine cables.

embargoed until Friday 27 February 2015 – 07h00 CET - 4 regulated information

The second investment is a self-propelled jack-up vessel (Apollo) which will join the GeoSea fleet for the installation of offshore wind turbines and for contracts for the oil and gas industry, such as the decommissioning of oil platforms.

No disbursements were made in 2014 for the Living Stone, the Apollo or the acquisition of the offshore assets of Hochtief.

Other investments are currently being investigated.

It should also be pointed out that DEME continues to invest, while at the same time selling off older vessels.

The substantial decrease in working capital requirement, coupled with a high operating cash flow, allowed to reduce the net financial debt (€126.8 million compared to €533.5 million at year-end 2013). According to the economic approach, DEME's net financial debt would have stood at €212.8 million, or €498.5 million down on year-end 2013. However, bearing in mind the investments decided in 2014, DEME's net financial debt will be higher at year-end 2015.

Restatements DEME

DEME's net income (group share) of €168.9 million was adjusted by €2.4 million in CFE's consolidated accounts. This adjustment primarily concerns:

  • the taking into result of the unwinding of the existing hedges resulting from the discontinued hedge relation due to the acquisition of the additional 50% of the shares in DEME;
  • partially offset by the additional depreciation following the valuation at fair value of DEME's identifiable assets and liabilities as part of the Purchase Price Allocation due to the acquisition of the additional 50% of the shares in DEME.

Contracting division

Preliminary note

CFE's board of directors decided to set up a Contracting division, which contains the construction, multitechnics and rail activities.

Key figures

In million € 2014 2013 (*) Change
2014/2013
Revenue 1,073.3 971.0 +10.5%
Operating income (**) -7.5 -29.5 +74.6%
Net result share of the group -14.5 -37.7 +61.5%
Order book (***) 1,127.2 1,310.3 -14.0%

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

(**) Including results of associated companies and joint ventures.

(***) Amounts also including the order book of equity accounted companies as of 1 January 2014 following the implementation of IFRS 10 and 11.

embargoed until Friday 27 February 2015 – 07h00 CET - 5 regulated information

Revenue

In million € 2014 2013 (*) Change in %
Construction 805.3 705.4 +14.2%
Civil Engineering 116.3 137.2 -15.2%
Buildings, Benelux 523.1 442.5 +18.2%
Buildings, International 165.9 125.7 +32.0%
Multitechnics and Rail Infra 268.0 265.6 +0.9%
Total Contracting 1,073.3 971.0 +10.5%

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

Revenue saw a marked increase in 2014. However, performance varied within the division:

  • decline in civil engineering,
  • buildings revenue in the Benelux area increased at most subsidiaries, in particular CLE, BPC Brabant, and BPC Wallonia,
  • growth of activity in Poland and Chad, partly offset by a decrease in Hungary and Algeria, and
  • increase in revenue for VMA and Nizet/Ecotech

Operating income

The division's operating income (€-7.5 million compared to €-29.5 million in 2013) made a substantial recovery, but is still negative.

The loss resulted from:

  • restructuring of operations in Hungary,
  • problems encountered on a Nigerian project,
  • execution of some difficult projects in Brussels,
  • shortage of work in civil engineering.

Nevertheless, buoyed by VMA, Engema and Stevens, the Multitechnics & Rail Infra activity turned back to profit despite the reorganization of two loss-making subsidiaries.

Concerning the Antwerp ring road project (Oosterweel), the Flemish Region eventually decided not to award the contract for the Left Bank and the tunnel under the Scheldt to Noriant. In line with that decision, Noriant was paid a lump-sum indemnity of €42.3 million in February 2015.

Sale of road operations of Aannemingen Van Wellen

On 25 February 2015, CFE sold its interest in Aannemingen Van Wellen NV to ASWEBO, the road construction subsidiary of the Willemen Group. Prior to this sale, the Building division of Aannemingen Van Wellen was transferred to a subsidiary of the group and has been operating in Flanders since 1 December 2014 under the name 'Atro Bouw'.

The capital gain, estimated at around €10 million, will be recognized during the first half of 2015.

embargoed until Friday 27 February 2015 – 07h00 CET - 6 regulated information

Order book

In million € 31 December 2014 31 December 2013 Change in %
Construction 945.3 1.077.4 -12.3%
Civil Engineering 169.3 200.6 -15.6%
Buildings, Benelux 651.0 640.0 +1.7%
Buildings, International 125.1 236.8 -47.2%
Multitechnics and Rail Infra 181.8 232.9 -21.9%
Total Contracting 1,127.2 1,310.3 -14.0%

The main trends observed are as follows:

  • difficulty renewing the order book in civil engineering in a shrinking market where prices remain extremely competitive;
  • slight growth in the order book of Buildings Benelux after an all-time high in 2013. The division won many contracts in 2014, such as the 'Docks Bruxsel' and 'Grand Pré' shopping centres (BPC Brabant and BPC Hainaut), Galerie Kons in Luxembourg (CLE), the Axa office in Brussels (CFE Brabant), and several schools as part of the PPP 'Ecoles de demain' initiated by the Flemish Region (MBG and Atro Bouw);
  • substantial decrease in the order book for Africa due to greater selectivity in the choice of projects, and the sale of the Toukra II (Chad) contract to our local partner. CFE wants to limit its exposure on that country as long as there has been no significant reduction in the outstanding receivables on the Chadian government. The recovery of those receivables will be a major challenge for 2015;
  • shrinking order book of the Multitechnics and Rail Infra division following the sale of the roadbuilding operations of Aannemingen Van Wellen.

Real Estate division

Key figures

In million € 2014 2013 (*) Change
2014/2013
Revenue 45.6 18.8 +142.6%
Operating income (including earnings from associates
and joint ventures)
7.1 3.7 +91.9%
Net result share of the group 4.3 1.8 +138.9%

Evolution of real estate projects

In million € 31 December 2014 31 December 2013 (*)
Properties being marketed 16 18
Properties under construction 57 61
Properties in development 61 77
Total 134 156

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

embargoed until Friday 27 February 2015 – 07h00 CET - 7 regulated information

Real Estate projects

The sale of the office building in the Belview project and the on going sales of the residential projects Belview and Oosteroever in Belgium, Greenhill and Evergreen in Luxembourg, and Ocean's Four and Wola in Poland led to a reduction in the real estate portfolio.

In Poland, BPI acquired a first position in Wroclaw city centre for the development of a residential and retail project.

2014 was also marked by the start of the marketing of the Ernest project in Ixelles and by the granting of allotment permits for two major projects (Erasmus Gardens in Anderlecht and phase 2 of Les Hauts Prés in Uccle).

In July 2014, CFE and its partners announced the sale of the Luxembourg project 'Galerie Kons' to an institutional investor. The transfer has no impact on the 2014 income statement as it is conditional upon the delivery of the building, scheduled for 2016.

Net result

Despite the recognition of an impairment on a position in the Grand Duchy of Luxembourg, the net income (group share) was up 138.9% on the previous year.

PPP – Concessions division

Key figures

In million € 2014 2013 (*) Change
2014/2013
Revenue 0.8 0.7 +14.3%
Operating income (including earnings from associates
and joint ventures)
2.5 0.7 +257.1%
Net result share of the group 2.2 0.9 +144.4%
Order book 2.6 0.0 -

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

Operating income

The operating income of this division has grown as a result of the good performance of Rent-A-Port, which is continuing to develop its activities in Vietnam by securing, together with its partners, several extensions of the concession in the port area of Dinh Vu.

In the Benelux area, the four DBFM projects in portfolio have now entered the maintenance phase and are making a positive contribution to the division's results. The stake which CFE held in the Turnhout car park was sold to our partner at year-end 2014.

Several projects are under study, such as the Renaix ring road in Belgium and the Ijmuiden lock in the Netherlands.

3. Overview of the results

3.A.1 Condensed consolidated statement of financial position

Year ended 31 December
(in thousands €)
2014 2013 (*)
(DEME at 100%) (DEME at 50%)
Revenue 3,510,548 984,883
Revenue from auxiliary activities 80,518 71,641
Purchases -2,093,355 -739,730
Wages, salaries & social charges -583,211 -209,278
Other operating charges -449,834 -124,327
Depreciations -243,746 -14,439
Business combination - acquisition DEME - 111,624
Goodwill Impairment - DEME - -207,411
Goodwill Impairment - Others -521 -3,795
Operating income on activities 220,399 -130,832
Earnings from associates and joint ventures 20,124 51,356
Operating income 240,523 -79,476
Gross financial cost -31,909 -143
Other financial expenses and income 16,156 -2,551
Financial result -15,753 -2,694
Result before taxes 224,770 -82,170
Income tax expense -65,249 -5,793
Result of the year 159,521 -87,963
Non-controlling interests 357 6,728
Result – share of the group 159,878 -81,235
Year ended 31 December
(in thousands €)
2014
(DEME at 100%)
2013 (*)
(DEME at 50%)
Result of the year 159,521 -87,963
Financial instruments – change in fair values -8,750 10,397
Currency translation differences -2,126 -3,590
Deferred taxes 2,974 -3,534
Acquisition DEME – reserves to be reclassified 0 7,902
Other elements of the comprehensive income to be
reclassified to profit or loss in subsequent period
-7,902 11,175
Remeasurement on defined benefit plans -2,676 -3,538
Other elements of the comprehensive income not to be
reclassified to profit or loss in subsequent period
-2,676 -3,538
Total elements of the comprehensive income directly
accounted in equity
-10,578 7,637
Comprehensive income
- attributable to the group
- attributable to non-controlling interests
148,943
149,586
-643
-80,326
-73,544
-6,782
Net result per share (€) (basic and diluted)
Comprehensive income per share (€) (basic and diluted)
6.32
5.91
-3.21
-2.91

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

embargoed until Friday 27 February 2015 – 07h00 CET - 9 regulated information

3.A.2 Consolidated statement of financial position

Year ended 31 December 2014 2013 (*)
(in thousands €) (DEME at 100%) (DEME at 100%)
Intangible assets 98,491 105,500
Goodwill 177,082 177,003
Property, plant and equipment 1,503,275 1,563,351
Property investments 0 0
Associates and joint ventures 159,290 155,877
Other non-current financial assets 109,341 115,396
Non-current derivative instruments 674 612
Other non-current assets 20,006 10,725
Deferred tax assets 115,322 120,428
Total non-current assets 2,183,481 2,248,892
Inventories 105,278 116,012
Trade receivables and other operating receivable 1,082,504 1,106,034
Other current assets 104,554 100,781
Current derivative instruments 0 0
Current financial assets 4,687 6,447
Assets held for sale 31,447 0
Cash and cash equivalents 703,501 437,334
Total current assets 2,031,971 1,766,608
Total assets 4,215,452 4,015,500
Issued capital 41,330 41,330
Share premium 800,008 800,008
Retained earnings 488,890 358,124
Defined benefits plans -8,350 -5,782
Consolidated reserves and reserve related to hedging -6,127 -351
instruments
Translation differences -2,124 -176
Equity – part of the group CFE 1,313,627 1,193,153
Non-controlling interests 7,238 8,064
Equity 1,320,865 1,201,217
Pensions and employee benefits 41,806 40,543
Provisions 40,676 25,655
Other non-current liabilities 80,665 92,898
Bond 306,895 208,621
Financial debts 378,065 496,654
Non-current derivative instruments 12,922 16,352
Deferred tax liabilities 139,039 144,505
Total non-current liabilities 1,000,068 1,025,228
Provisions for other current risks 48,447 48,181
Trade payables & other operating liabilities 1,099,309 983,806
Tax liability due for payment 80,264 65,855
Current financial debts 206,671 346,118
Current derivative instruments 24,948 16,499
Liabilities held for sale 19,164 0
Other current liabilities 415,716 328,596
Total current liabilities 1,894,519 1,789,055
Total equity and liabilities 4,215,452 4,015,500

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11, and restated following the allocation of goodwill arising from the acquisition of an additional 50% stake in DEME, in pursuance of IFRS 3 – Business combinations.

3.A.3 Notes to the consolidated financial statements, cash flow and capex tables

CFE's financial structure was further strengthened in 2014, with equity after payment of the dividend for the 2013 financial year (€29.1 million) amounting to €1,320.9 million compared to €1,201.2 million at year-end 2013.

The net financial debt(*) amounted to €188.1 million at 31 December 2014 or, on a like-for-like basis, down €426 million on 31 December 2013. This debt breaks down into a long-term debt of €685 million and a positive net cash position of €497 million.

CFE has, for its part, confirmed medium-term credit facilities for its general financing needs totalling €125 million, of which €65 million had not been drawn down at year-end 2014. Both CFE and DEME are in compliance with the 'banking covenants'.

(*) Net financial debt does not include the fair value of derivative instruments which at 31 December 2014 amounted to a liability of €37.2 million.

Year ended 31 December
(in thousands €)
2014
(DEME at 100%)
2013 (*)
(DEME at 50%)
Cash flows relating to operating activities 606,725 -104
Cash flows relating to investing activities -163,607 -18,360
Cash flows relating to the acquisition of DEME 0 317,911
Cash flows relating to financing activities 177,548 -6,420
Net increase/decrease in cash position 265,570 293,027
Shareholders' equity (excluding non-controlling interests) at start of
period
1,193,153 524,612
Shareholders' equity (excluding non-controlling interests) at end of period 1,313,627 1,193,153
Net result share of the group for the period 159,878 7,929 (**)
ROE 13.4% 1.5% (***)

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

(**) Net income (group share) before items specific to the capital increase of 2013 and the treatment of goodwill arising from the consolidation of the additional 50% stake in DEME arising from the contribution in kind and capital increase.

(***) ROE based on net income (group share) before items specific to the capital increase of 2013 and the treatment of goodwill arising from the consolidation of the additional 50% stake in DEME arising from the contribution in kind and capital increase.

3.A.4 Consolidated statement of changes in equity as of 31 December 2014

(Thousands €) Share capital Share premium Retained earnings Defined benefits
plans
Reserves related to
hedging instruments
Translation
differences
Equity attributable
to owners of the
parent
Equity attributable to
non-controlling
interests
Total
December 2013 (*) 41,330 800,008 358,124 (5,782) (351) (176) 1,193,153 8,064 1,201,217
Comprehensive
income for the
period
159,878 (2,568) (5,776) (1,948) 149,586 (643) 148,943
Dividends paid to
shareholders
(29,112) (29,112) (29,112)
Dividends paid to non
controlling interests
(2,329) (2,329)
Change in
consolidation scope
2,146 2,146
December 2014 41,330 800,008 488,890 (8,350) (6,127) (2,124) 1,313,627 7,238 1,320,865

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

3.A.5 Key figures per share

31 December 2014 31 December 2013 (*)
Total number of shares 25,314,482 25,314,482
Operating result after deduction of the net
financial charges per share
8.88 0.54 (**)
Net result part of the group per share 6.32 -3.21 (***)

(*) Amounts restated in accordance with changes in accounting methods following the implementation of IFRS 10 and 11.

(**) Amounts before items specific to the capital increase and the treatment of goodwill arising from the consolidation of the additional 50% stake in DEME arising from the contribution in kind and capital increase.

(***) Amounts after items specific to the capital increase and the treatment of goodwill arising from the consolidation of the additional 50% stake in DEME arising from the contribution in kind and capital increase.

3.B.1 Profit and loss account CFE SA (Belgian standards)

(in thousands €) 2014 2013
Turnover and other income 376,996 381,040
Operational result 505 -32,389
Net financial result 47,561 16,974
Current result 48,066 -15,415
Exceptional revenues 4 124
Exceptional costs -11,131 -9,376
Result before taxes 36,939 -24,667
Taxes 113 -33
Result of the year 37,052 -24,700

3.B.2 Balance sheet CFE NV after appropriation (Belgian standards)

(in thousands €) 31 December 2014 31 December 2013
Assets
Fixed assets 1,408,686 1,403,091
Current assets 330,753 289,147
Total assets 1,739,439 1,692,238
(in thousands €) 31 December 2014 31 December 2013
Equity and liabilities
Equity 1,129,891 1,148,532
Provisions and deferred taxes 61,553 54,738
Non-current liabilities 113,439 308
Current liabilities 434,556 488,660
Total equity and liabilities 1,739,439 1,692,238

4. Information on business trends

The outlook remains favourable for the Dredging and Environment division, while recovery of the Contracting activities is expected to continue in 2015.

5. New organisation

CFE's board of directors has decided to set up a Contracting division, which will contain all the construction, multitechnics and rail activities. A similar restructuring process will be undertaken for the real estate development activities, which will be headed by BPI.

CFE's board of directors has also decided, in agreement with Renaud Bentégeat, to appoint Piet Dejonghe as second managing director.

Renaud Bentégeat, who will continue to represent CFE in all external relations, will oversee DEME, Rent-A-Port and the real estate development activities, and will head the operations of CFE International in Central Europe, Africa and Sri Lanka.

Piet Dejonghe will be in charge of the Contracting division. In that capacity, he will take charge of several cross-divisional projects aimed at improving the operational excellence of the Contracting activities.

6. Capital remuneration

At the general meeting of shareholders on 7 May 2015, CFE's board of directors will propose a gross dividend of €2.00 per share, representing a net dividend of €1.50, or a total distribution of €50,628,964.

7. Information related to share

At the end of the financial year, CFE's share capital amounted to €41,329,482.42, divided into 25,314,482 shares, with no declared par value. The Company's shares are registered or in electronic form.

The shares are registered until fully paid up. Once fully paid up, they may be converted into shares in electronic form, at the choice and expense of the shareholder.

The registry of registered shares is kept in electronic form and in hard copy. Management of the electronic registry has been entrusted to Euroclear Belgium (CIK SA).

Registered shares may be converted into shares in electronic form and vice-versa on request by their holder and at their expense.

Shares in electronic form are converted into registered shares by making the corresponding entry in the register of CFE shareholders.

Registered shares are converted into shares in electronic form by entering them into an account in the name of their owner or holder opened with an approved account-keeper or clearing house.

In accordance with the Act of 14 December 2005 on the abolition of bearer shares, CFE shares that had not yet been converted by law or by their holders on 1 January 2014 were automatically converted into shares in electronic form and registered in a securities account by CFE in its own name.

As of that date, the rights attached to the shares have been suspended until the holders of those shares come forward and arrange for them to be entered in their name in the registry of registered shares or in a securities account held by an approved account-keeper or clearing house.

The law requires that, as of 1 January 2015, shares of which the holder has not made himself known to the issuer should be sold automatically. The terms and conditions of those sales have been set forth in an implementing decree of 25 July 2014. There were 19,695 'unacknowledged' CFE shares as of 1 January 2015.

A notice prior to the sale calling upon the holder to assert his rights will be published in the 'Moniteur Belge' and on the Internet site of Euronext Brussels on which the shares will be sold.

The proceeds of the sale will immediately be deposited with the Caisse des Dépôts et Consignations on a voluntary basis and less certain minor costs incurred by CFE.

The owners of the shares may make themselves known to the Caisse des Dépôts et Consignations. The Caisse will start repaying the proceeds of the sale on 1 January 2016 at the earliest. Persons requesting repayment will be liable for a fine of 10% of the sum or value of the shares in question per year overdue from 1 January 2016. This means that after 2025 the shares in question will have lost all their value for their owners.

embargoed until Friday 27 February 2015 – 07h00 CET - 14 regulated information

CFE's equity base as of 31 December 2014 was as follows :

Shares with no par value 25,314,482
- registered shares 18,404,946
- shares in electronic form 6,909,536

Shareholders owning 3% or more of the voting rights relating to the shares they hold :

Ackermans & van Haaren NV Begijnenvest, 113 B-2000 Antwerp (Belgium) 15,289,521 share or 60.40%

VINCI Construction SAS 5, cours Ferdinand-de-Lesseps F-92851 Rueil-Malmaison Cedex (France) 3,066,440 shares or 12.11%

There has been no issue of convertible bonds or warrants.

Banque Degroof has been appointed as the 'Main Paying Agent'.

Financial institutions with whom holders of financial instruments may exercise their financial rights are : Banque Degroof, BNP Paribas Fortis en ING België.

8. Corporate governance

The board of directors will propose to the general meeting of shareholders to renew the director's mandate of Ciska Servais SPRL, represented by Ciska Servais, for a period of four (4) years, ending after the annual general meeting of May 2019. Ciska Servais SPRL, represented by Ciska Servais, meets the independence criteria defined in Article 526c of the Companies Code and in the 2009 Belgian Corporate Governance Code.

9. Shareholders' agenda

ordinary shareholders meeting: 7 May 2015
publication of interim statements: 20 May 2015 (before opening of the stock market)
dividend payment: 28 May 2015
publication of half-year financial statements: 28 August 2015 (before opening of the stock market)
publication of interim statements: 20 November 2015 (before opening of the stock market)

embargoed until Friday 27 February 2015 – 07h00 CET - 15 regulated information

The Statutory Auditor, Deloitte, Reviseurs d'Entreprises, represented by Pierre-Hugues Bonnefoy, has confirmed that he has no reservations as to the accounting information reported in this press release and that it is in line with the financial statements as approved by the Board of Directors.

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CFE is an industrial Belgian Group active in 4 different activities : Dredging and Offshore Solutions, Contracting, Real Estate Development and PPP-Concessions.

The group is worldwide active, mainly across its dredging and marine activities executed by DEME, a 100% subsidiary, one of the world's leading dredging contractors. CFE is listed on Euronext Brussels and is 60.40% owned by Ackermans & van Haaren.

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This press release is available on our website at www.cfe.be

Note to editors

For further information, please contact, at CFE:

  • Renaud Bentégeat, Chief Executive Officer, tel.: +32 2 661 13 27, mobile: +32 497 514 445, [email protected]; or
  • Fabien De Jonge, Chief Financial Officer, tel. +32 2 661 13 12 - Mobile +32 497 514 406 [email protected]

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