Monday 8 March 2021 – 5:45 pm CET

2020Full-Year results Solid results driven by a record year at Belron and a resilient Auto business

Full-year 2020 highlights

[All the figures mentioned in this press release are post-IFRS 16]

D'Ieteren Group's results grew in 2020 driven by Belron's excellent performance and by a good resilience at D'Ieteren Automotive. The Group's key performance indicator (KPI) – the adjusted consolidated profit before tax, Group's share1 – rose by 11.2% to €332.7m on a comparable basis (53.75% stake in Belron in 2019 and 2020).

Belron managed to contain the organic5 sales decline to 7.5%. Its adjusted profit before tax, Group's share1 improved significantly by 44.6% reflecting a positive mix effect, improved productivity, and stringent cost containment measures.
D'Ieteren Automotive's share2 improved by 80bps to 23.6% in the Belgian new car market2 (excluding registrations of less than 30 days) which was down 19.7%. The decline in sales (-11.5%) and in the adjusted profit before tax, Group's share1 (-19.9%) mainly reflect lower import volumes, partly mitigated by a positive mix and cost containment.
Moleskine's performance was severely hit in 2020 by the Covid-19 crisis with sales decreasing by 37.6% and the adjustedprofit before tax, Group's share1 ending the year at -€13.5m.
Corporate & Unallocated (including corporate and real estate activities) reported an adjusted profit before tax, Group's share1 of -€4.8m in 2020 compared to -€10.3m in 2019. D'Ieteren Group ends 2020 with a net cash position of €1,455.1m (of which €456.5m inter-segment loans), slightly down from €1,516.4m at the end of 2019.
Strong adjusted free cash-flow6 generation reflects the emphasis put on cash preservation and working capital management during the crisis, with notably an impressive €428.7m generated at Belron (100%) and €171.6m generated by D'Ieteren Automotive.
The Board of Directors proposes a gross ordinary dividend of €1.35 per share related to the financial year 2020 (versus €1.00 in 2019).

Outlook 2021

For 2021, while the timing of the end of the Covid-19 crisis is still unknown, based on the absence of renewed or more severe lockdowns in its main operating regions, D'Ieteren Group expects its adjusted consolidated profit before tax, Group's share1 to grow by at least 25% compared to 2020 result (€332.7m). This improvement is expected to be driven by a recovery of all the activities, and assumes a 53.75% stake in Belron in 2020 and 2021 and average exchange rates that are in line with the rates that prevailed at the end of 2020.

Operationally, for the activities, we expect:

Belron
- o Low double-digit organic sales growth driven by a progressive volume recovery, a positive mix, and the continuation of ADAS recalibration penetration and VAPS contribution, partially offset by a negative YoY FX development.
- o Adjusted operating result growth above 20% (2020: €583.1m) driven by top-line development and further progress on the transformation plan.

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o Adjusted free cash-flow6 is expected to remain high, at the same level as 2020, with better operational results being offset by increased capital expenditures, namely in IT-related projects.
Automotive
- o Market share gain in a Belgian new car market marginally recovering to ~450,000 vehicles.
- o Adjusted operating result growing by more than 15% (2020: €98.9m) primarily driven by the volume recovery, cost improvement following the 2020 restructuring and increased marketing costs to support the brands.
- o VDFin is expected to increase its adjustedPBT.
- o Negative free cash-flow development vs. 2020 due to increased working capital requirements (driven notably by the payment of the acceleration of the transformation plan) and capex returning to normalized levels. Adjustedfree cash-flow6, excluding adjusting items, should however remain positive.
Moleskine
- o Sales are expected to recover from depressed 2020 levels, although being still impacted, especially in the first half, by ongoing Covid-19 measures. We expect sales to grow by at least 20% YoY.
- o Adjustedoperating result is expected to be above €10m.

Key developments

D'Ieteren Group and its activities rapidly took the measure of the Covid-19 crisis and decided to accelerate transformation programmes.
A solidarity programme has been put in place in April 2020, aiming at helping D'Ieteren Group's employees who may suffer hardship following the crisis.
Leadership teams have been strengthened at all the activities, with the arrival in 2020 of a new CEO at Moleskine, Daniela Riccardi, and new CFOs at D'Ieteren Automotive, Reginald Gillet, and Belron, Humphrey Singer.
In October 2020, D'Ieteren Group became a signatory of the United Nations-supported Principles for Responsible Investment (PRI), reflecting its commitment to including environmental, social and governance (ESG) factors in its investment decision-making and active ownership policies. The UN PRI is the world-leading network of investors working together to put principles of responsible investing into practice. The Group will perform its first reporting on a voluntary basis in 2021.
On the 1st of January 2021, D'Ieteren SA carved-out its car distribution arm D'Ieteren Automotive into a separate wholly owned subsidiary.

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Group Summary

Consolidated sales under IFRS amounted to €3,318.0m (-12.7%). This figure excludes Belron. Combined sales (including 100% of Belron) amounted to €7,216.8m (-10.1%).

Consolidated IFRS operating result stood at €10.2m, down from €24.4m in 2019. Combined adjusted operating result, including 100% of Belron, stood at €661.5m, up from €539.1m in 2019.

The consolidated profit before tax under IFRS reached €158.2m (€94.8m in 2019). Our key performance indicator, the adjusted consolidated profit before tax, Group's share1 , amounted to €332.7m, up 11.2% on a comparable basis (53.75% stake in Belron).

Evolution of the adjustedconsolidated profit before tax, Group's share1 (€m)

The Group's share in the net result equalled €141.9m (€66.1m in 2019). The adjusted net profit, Group's share1 , reached €231.9m (53.75% stake in Belron) compared to €211.6m (52.48% stake in Belron) in 2019.

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The Board of Directors proposes a gross ordinary dividend of €1.35 per share. If this dividend is approved by the General Meeting of Shareholders on 27 May 2021, it will be paid on 3 June 2021 (ex-date 1 June and record date 2 June).

The net cash position of "Corporate & Unallocated", which includes Corporate, amounted to €1,455.1m at the end of 2020 (including €456.5m inter-segment loan) compared to €1,516.4m at the end of 2019, mainly as a result of the purchase, in February 2020, of €150m of Belron's preference shares previously held by CD&R, the settlement of the financial contingent liability (€31.9m) towards CD&R, the purchase of treasury shares (€24.4m) and the payment in June 2020 of the dividend (€53.9m) to the shareholders of D'Ieteren, partially offset by the dividend received from D'Ieteren Automotive (€200m).

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Belron

	2019			2020
	APM (non-GAAP measures) 1			APM (non-GAAP measures) 1
€m	Adjusted items	Adjusting items	Total		Adjusted items Adjusting items	Total	% change adjusted items	% change total
VGRR prime jobs (in million)	-	-	12.3	-	-	10.7	-	-12.9%
External sales	4,228.1	-	4,228.1	3,898.8	-	3,898.8	-7.8%	-7.8%
Operating result	416.4	-67.5	348.9	583.1	-94.2	488.9	40.0%	40.1%
Net finance costs	-97.1	-4.8	-101.9	-121.7	-1.9	-123.6	25.3%	-
Result before tax (PBT)	319.4	-72.3	247.1	461.7	-96.1	365.6	44.6%	48.0%
Adjusted PBT, group's share1 (@ 53.75%)	171.7	-	-	248.2	-	-	44.6%	-

Sales and results

Sales

Belron's total sales (at 100%) declined by 7.8% to €3,898.8m in 2020. Sales from continuing operations declined by 7.7%, comprised of:

organic5 decline of 7.5%;
a negative currency translation effect of 1.8% which is primarily due to the depreciation of the US dollar (average EUR/USD FX rate: 1.149 versus 1.118 in 2019);
acquisition growth of 1.6%.

North America (55% of total) sales from continuing operations declined by 5.4%. Organic5 decline of 5.5% reflects the impact of the pandemic on volumes, partially offset by a positive product mix and higher revenues from ADAS recalibration and VAPS (valued added products & services). There was an additional negative effect of 2.8% from adverse currency translation. Regional acquisitions, the largest of which was TruRoad in August 2019, contributed for 2.9% of growth.

Eurozone (31% of total) saw the greatest impact to trading as a result of the pandemic with significant branch closures before summer in France, Italy, Spain and Belgium as a result of governmental restrictions. Sales from continuing operations declined by 11.2% comprising 11.3% organic5 decline, slightly compensated by 0.1% growth from minor acquisitions.

Rest of World (13% of total) sales from continuing operations declined by 8.3%, of which 6.1% organic5 decline, 2.5% adverse currency translation, marginally compensated by acquisitions (+0.3%). The UK has been most impacted with sales in Australia and the Nordics holding up relatively well.

As trading recovered after the initial severe peaks of the pandemic the business recovered in volume and value across all regions and continued to generate higher revenues from ancillary products and recalibrations. North America, France and Germany performed particularly strongly at the end of 2020.

Consumers served in 2020 were 14.9 million (-17.8% YoY) of which 14.4 million were in Vehicle Glass Repair and Replacement (VGRR) and Claims Management. VGRR volumes declined by 12.9% versus 2019.

Results

Operating result (at 100%) rose by 40.1% to €488.9m and the adjusted operating result1 improved by 40.0% (or by €166.7m) to €583.1m. This was driven by a significant cost containment across the board, higher productivity and also by a net positive YoY delta of €63.1m related to the legacy long-term management incentive programme.

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Adjusting items1 at the level of the operating result totalled €94.2m, notably comprising of -€24.5m related to the amortisation of some customer contracts recognised as intangible in the framework of recent acquisitions (-€12.2m in 2019), -€18.6m impairment charge relating to the write-down of assets classified as held-for-sale and other software write offs, and -€46.7m other adjusting items relating to restructurings, integration and disposals-related costs (-€37.5m in 2019) (see pages 41-42 for further details).

Net financial costs increased by €21.7m in 2020 to €123.6m, reflecting the new term loan taken out in October 2019.

The profit before tax reached €365.6m in 2020 (€247.1m in 2019). The result after tax, Group's share, reached €145.9m (€84.6m in 2019).

The adjusted profit before tax, Group's share1 increased by 44.6% to €248.2m on a comparable basis (assuming 53.75% stake in 2019 and 2020). Adjusted income tax expenses1 equalled €130.7m (€97.4m in 2019).

The adjusted result after tax1 , Group's share, rose by 52.8% to €178.0m.

Net debt and free cash flow

Belron's net financial debt3 reached €2,413.0m (100%) at the end of 2020 compared to €2,979.1m at the end of 2019. This reduction in net debt was driven by a strong cash generation. Belron's Senior Secured Net Leverage Ratio (Senior Secured indebtedess3 /proforma EBITDA pre-IFRS 164 multiple) reached 2.36x at the end of 2020.

The adjusted free cash flow6 (after tax and restructuring costs) amounted to €428.7m (€164.8m in 2019 postacquisitions) or €518.4m (€183.8m in 2019) excluding the cash-outflow related to the legacy long-term management incentive programme. The sharp increase is mainly due to:

A higher adjustedEBITDA (€161.3m improvement)
A significantly positive cash flow impact from changes in working capital (€136.1m compared to €28.1m in 2019)
Lower capex (€32.6m compared to €65.8m in 2019)
Lower spending on acquisitions
These elements were partly offset by the payment related to the employee share plan, higher income tax payments, higher interests paid and increased capital paid on lease liabilities (-€20.2m YoY)

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D'Ieteren Automotive

	2019			2020
	APM (non-GAAP measures) 1		APM (non-GAAP measures) 1
€m	Adjusted items	Adjusting items	Total		Adjusted items Adjusting items	Total	% change adjusted items	% change total
New vehicles delivered (in units)	-	-	129,575	-	-	104,710	-	-19.2%
External sales	3,634.9	-	3,634.9	3,215.7	-	3,215.7	-11.5%	-11.5%
Operating result	119.1	-2.5	116.6	98.9	-46.9	52.0	-17.0%	-55.4%
Net finance costs	-2.7	-	-2.7	-4.2	-	-4.2	55.6%	55.6%
Result before tax (PBT)	125.0	-2.5	122.5	100.0	-48.2	51.8	-20.0%	-57.7%
Adjusted PBT, group's share1	128.4	-	-	102.8	-	-	-19.9%	-

Activities and results

Market and deliveries

The Belgian new car market was severely impacted by the Covid-19 crisis. Excluding registrations of less than 30 days2, the number of Belgian new car registrations decreased by 19.7% to 413,373 units. Including registration of less than 30 days, the number reached 431,491 units (-21.6%). The 22.2% decline in demand in the business segment (55.5% of total new car registrations) was slightly higher than that of the private segment (-20.7%). The share of SUV's, aligned with Febiac's segmentation, increased from 39.3% in 2019 to 40.9% in 2020. D'Ieteren Automotive's brands saw a 11.2% decline in the number of SUV registrations which made up 34.9% of the mix. New energy share in the market mix more than doubled from 7.1% in 2019 to 15.3% in 2020. D'Ieteren Automotive is the leader in full electric vehicles in Belgium.

D'Ieteren Automotive's market share continued to increase to 23.6% (versus 22.8% in 2019) if one excludes registrations of less than 30 days. This was mainly driven by Skoda, Audi and Porsche, while VW, which remains the largest brand in Belgium, slightly declined.

Registrations of new light commercial vehicles (0 to 6 tonnes) declined by 12.2% to 71,800 units and D'Ieteren Automotive's market share remained stable at 10.7% (of net registrations).

The total number of new vehicles, including commercial vehicles, delivered by D'Ieteren Automotive in 2020 reached 104,710 units (-19.2%).

Sales

D'Ieteren Automotive's sales decreased by 11.5% to €3,215.7m in 2020 mainly reflecting volume decline partially mitigated by a positive mix due to the continued premiumization of the car park.

New vehicles sales declined by 12.6% to €2,792.0m
Used cars sales increased by 25.5% YoY, reaching €95.5m
Spare parts and accessories sales dropped by 15.5% to €182.3m
Revenues from after-sales activities of the owned dealerships amounted to €83.6m (-14.6% YoY)

Results

The operating result reached €52.0m (-55.4%) and the adjusted operating result1 (€98.9m) declined by 17.0%. This evolution was driven by the lower volumes (new vehicles and spare parts mainly) partially compensated by general cost containment (primarily marketing expenses) and a positive development in Retail also driven by cost rationalization.

Adjusting items include a provision of €41.0m related to the finalization of the project carried out in 2020 for the acceleration of the transformation in response to a rapidly changing automotive market, a charge of €3.2m (€2.5m in

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2019) related to the Market Area network consolidation (optimization of the independent dealer network), and €1.7m costs linked to the carve-out of D'Ieteren Automotive from D'Ieteren SA.

The profit before tax reached €51.8m (-57.7%) or €100.0m (-20.0%) excluding adjusting items1 .

The adjusted profit before tax, Group's share1 , declined by 19.9% to €102.8m. The contribution of the equity accounted entities amounted to €8.1m (€12.0m in 2019).

Income tax expenses reached €15.8m (€36.7m in 2019). Adjusted tax expenses1 equalled €27.5m (compared to €38.8m in 2019). The decline reflects the lower profit before taxes and the lower nominal tax rate (from 29.58% to 25%).

The result after tax, Group's share, amounted to €37.1m (€85.8m in 2019). The adjusted result after tax, Group's share1 , declined by €12.6m to €73.6m.

Net debt and free cash flow

D'Ieteren Automotive's net debt3 increased by €34.0m to €167.7m at the end 2020. This is due to the €200.0m intersegment loan from D'Ieteren Group partly offset by cash generation.

The adjustedfree cash flow6 (after tax) equalled €171.6m in 2020 versus -€38.9m in 2019. The change mainly reflects:

A significant cash inflow from working capital driven by lower inventories and trade receivables;
A lower cash outflow from investing activities with net capex down by €6.0m to -€21.2m and less cash spent on acquisitions;
Less taxes paid on the back of lower operating results (-€28.3m in 2020 versus -€38.1m in 2019);
These elements were partly offset by lower operating results.

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Moleskine

		2019			2020
		APM (non-GAAP measures) 1		APM (non-GAAP measures) 1
€m	Adjusted items	Adjusting items	Total		Adjusted items Adjusting items	Total	% change adjusted items	% change total
External sales	163.9	-	163.9	102.3	-	102.3	-37.6%	-37.6%
Operating result	18.9	-102.3	-83.4	-1.5	-22.0	-23.5	-	-
Net finance costs	-9.4	-	-9.4	-12.0	0.1	-11.9	27.7%	26.6%
Result before tax (PBT)	9.5	-102.3	-92.8	-13.5	-21.9	-35.4	-	-
Adjusted PBT, group's share1	9.5	-	-	-13.5		-	-	-

Sales

Sales fell by €61.6m to €102.3m (-37.6%) mainly due to the Covid-19 pandemic, with a relative resilience from the core notebooks & planners categories.

Sales evolution by region:

EMEA (42% of total): -42%. The region was heavily impacted by various local Covid-19 restrictions.
Americas (36% of total): -39% also impacted by Covid-19 lockdowns, with however a better wholesale performance, mainly driven by online sales.
APAC (22% of total): -23%. APAC was the best performing geography as it came out of the crisis faster than the rest of the world.

Sales evolution by channel:

Wholesale (60% of total): -32%. The decline in offline was widely spread, and this was partially compensated by a very positive performance from online sales of our Wholesale clients.
B2B (22% of total): -46%. The pandemic caused budget cuts and caution from businesses, leading to a reduction in demand. The drop was the most pronounced in the Americas.
E-Commerce (10% of total): +16%. E-commerce benefited by the lockdowns, especially in EMEA, and by a positive end-of-year season.
Retail (8% of total): -64%. Retail was severely down in all regions with closures throughout the year and traffic significantly reduced, especially in Americas. December however showed signs of recovery. The number of stores declined from 77 at the end of 2019 to 59 at the end of 2020.

Results

Reported operating result went from -€83.4m in 2019 to -€23.5m in 2020. The adjusted operating result1 came in at - €1.5m in 2020 compared to €18.9m in 2019. The decline is mainly due to the Covid-19 negative impact on sales and a €4.1m provision reversal in 2019 related to the long-term incentive program of 2016-2021. Significant efforts have been made on costs to contain the decline.

A €21.0m impairment charge ("adjusting item1 ") was booked on goodwill in H1-20 due to the impact of the Covid-19 pandemic on current and expected results. The formal impairment review performed at year-end showed headroom and did not lead to any additional impairment charge.

Net financial charges equalled €11.9m (€9.4m in 2019). The profit before tax amounted to -€35.4 million and the adjusted profit before tax1 amounted to -€13.5 million (€9.5m in 2019). Income tax expenses equalled €0.7m versus €4.8m in 2019.

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Net debt and free cash flow

Moleskine's net debt reached €300.8m - of which €253.9million intra-Group borrowing - at the end of 2020, stable compared to €297.0m at the end of 2019.

The adjusted free cash flow6 amounted to €0.8m in 2020 compared to €21.0 million in 2019. The lower cash-flow generation mainly reflects the lower operational results resulting from the Covid-19 crisis and a lower working capital inflow YoY, partially compensated by lower capital expenditures.

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Corporate and unallocated

	2019			2020
	APM (non-GAAP measures) 1		APM (non-GAAP measures) 1
€m	Adjusted items	Adjusting items	Total		Adjusted items Adjusting items	Total	% change adjusted items	% change total
External sales	-	-	-	-	-	-	-	-
Operating result	-15.3	6.5	-8.8	-19.0	0.7	-18.3	-	-
Net finance costs	5.0	-15.7	-10.7	14.2	-	14.2	184.0%	-
Result before tax (PBT)	-10.3	-9.2	-19.5	-4.8	0.7	-4.1	-	-
Adjusted PBT, group's share1	-10.3	-	-	-4.8	-	-	-	-

Results

The reportable operating segment "Corporate and Unallocated" mainly includes the Corporate and Real Estate activities (D'Ieteren Immo S.A.). The adjusted operating result1 reached -€19.0m in 2020 compared to -€15.3m in 2019 mainly due to the solidarity programme put in place at the beginning of the pandemic outbreak.

Net finance income evolution was mainly due to inter-segment financing interests.

Adjustedprofit before tax, group's share1 reached -€4.8m (-€10.3m in 2019).

Net cash

The net cash position slightly decreased (from €1,516.4m at the end of 2019 to €1,455.1m at the end of 2020 of which €456.5m inter-segment loan), mainly as a result of the purchase, in February 2020, of €150m of Belron's preference shares previously held by CD&R, the settlement of the financial contingent liability (€31.9m) towards CD&R, the purchase of treasury shares (€24.4m) and the payment in June 2020 of the dividend (€53.9m) to the shareholders of D'Ieteren, partially offset by the dividend received from D'Ieteren Automotive (€200m).

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Notes

1 In order to better reflect its underlying performance and assist investors in gaining a better understanding of its financial performance, D'Ieteren uses Alternative Performance Measures ("APMs"). These APMs are non-GAAP measures, i.e. their definitions are not addressed by IFRS. D'Ieteren does not present APMs as an alternative to financial measures determined in accordance with IFRS and does not give to APMs greater prominence than defined IFRS measures. See page 34 for the definition of these performance indicators.

2 In order to provide an accurate picture of the car market, Febiac publishes market figures excluding registrations that have been cancelled within 30 days. Most of them relate to vehicles that are unlikely to have been put into circulation in Belgium by the end customer.

3 The net financial debt is not an IFRS indicator. D'Ieteren uses this Alternative Performance Measure to reflect its indebtedness. This non-GAAP indicator is defined as the sum of the borrowings minus cash, cash equivalents and investments in non-current and current financial assets. See page 41.

4 EBITDA is not an IFRS indicator. This APM (non-GAAP indicator) is defined as earnings before interest, taxes, depreciation and amortization. Since the method for calculating the EBITDA is not governed by IFRS, the method applied by the Group may not be the same as that adopted by others and therefore may not be comparable.

5 "Organic growth" is an Alternative Performance Measure used by the Group to measure the evolution of revenue between two consecutive periods, at constant currency and excluding the impact of change in perimeter of consolidation or business acquisitions.

6 Adjusted free cash-flow is not an IFRS indicator. This APM measure is defined as [Adjusted EBITDA - other non-cash items – change in working capital – capital expenditures – capital paid on lease liabilities – taxes paid – interest paid – acquisitions + disposals – employee share plans – cash-flow from adjusting items + other cash items]

Auditor's Report

"The statutory auditor, KPMG Bedrijfsrevisoren - Réviseurs d'Entreprises, represented by Axel Jorion, has confirmed that the audit procedures, which have been substantially completed, have not revealed any material misstatement in the accounting information included in the Company's annual announcement."

Forward looking statements

This document contains forward-looking information that involves risks and uncertainties, including statements about D'Ieteren's plans, objectives, expectations and intentions. Readers are cautioned that forward-looking statements include known and unknown risks and are subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of D'Ieteren. Should one or more of these risks, uncertainties or contingencies materialise, or should any underlying assumptions prove incorrect, actual results could vary materially from those anticipated, expected, estimated or projected. As a result, D'Ieteren does not assume any responsibility for the accuracy of these forward-looking statements.

Conference Call

D'Ieteren's management will organise a conference call for analysts and investors starting today at 06:00 pm CET.

The conference call can be attended by calling the number +32 2 403 58 16. PIN code: 69778154#.

The presentation slides will be made available online simultaneously to the publication of this press release at the following address: https://www.dieterengroup.com/press-releases (then select the FY 2020 results event)

End of press release

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D'Ieteren Group profile

In existence since 1805, and across family generations, D'Ieteren Group seeks growth and value creation by pursuing a strategy on the long term for its businesses and actively encouraging and supporting them to develop their position in their industry and geographies. The Group currently owns the following activities:

D'Ieteren Automotive distributes Volkswagen, Audi, SEAT, Škoda, Bentley, Lamborghini, Bugatti, and Porsche vehicles in Belgium. It has a market share of more than 23% and 1.2 million vehicles on the road. Its business model is evolving towards improving the lives of citizens with fluid, accessible and sustainable mobility. Sales and adjusted operating result reached respectively €3,216m and €98.9m in FY20.
Belron (54.85% of the voting rights) has a clear purpose: "making a difference by solving people's problems with real care". It is the worldwide leader in vehicle glass repair and replacement and operates in 40 countries, through wholly owned businesses and franchises, with market leading brands – including Carglass®, Safelite® and Autoglass®. In addition, Belron manages vehicle glass and other insurance claims on behalf of insurance customers. Sales and adjusted operating result reached respectively €3,899m and €583.1m in FY20.
Moleskine (100% owned) is a premium and aspirational lifestyle brand which develops and sells iconic branded notebooks and writing, travel and reading accessories through a global multichannel platform. Sales and adjusted operating result reached respectively €102.3m and -€1.5m in FY20.
D'Ieteren Immo (100%) groups together the Belgian real estate interests of D'Ieteren Group. It owns and manages approximately 30 properties which generated €19.5m net rental income in FY20. It also pursues investment projects and carries out studies into possible site renovations.

Financial Calendar

Last five press releases (with the exception of press releases related to the repurchase or sale of own shares)		Next events
10 November 2020	Strong resilience expected in a volatile environment	27 May 2021	General Assembly
27 Augustus 2020	2020 Half-Year Results	1 September 2021	2021 Half-Year Results
3 June 2020	D'Ieteren Auto's project to accelerate the transformation of its activities
28 May 2020	Trading update
27 April 2020	Proposal to allocate the dividend increase to a solidarity program

Contacts

Francis Deprez, Chief Executive Officer Arnaud Laviolette, Chief Financial Officer

Stéphanie Voisin, Investor Relations - Tel: + 32 (0)2 536.54.39 E-mail: [email protected]om – Website: www.dieterengroup.com

Financial Highlights 2020

Consolidated Statement of Profit or Loss

Year ended 31 December

EUR million	Notes	2020	2019(1)
Revenue	3	3,318.0	3,798.8
Cost of sales		-2,877.4	-3,303.3
Gross margin		440.6	495.5
Commercial and administrative expenses		-370.0	-382.2
Other operating income		13.3	21.8
Other operating expenses	2/4	-73.7	-110.7
Operating result		10.2	24.4
Net finance costs		-1.9	-22.8
Finance income		5.1	1.4
Finance costs		-7.0	-24.2
Share of result of equity-accounted investees and long-term interests in equity accounted investees, net of income tax	6	149.9	93.2
Result before tax		158.2	94.8
Income tax expense	7	-17.4	-28.7
Result from continuing operations		140.8	66.1
Discontinued operations		-	-
RESULT FOR THE PERIOD		140.8	66.1
Result attributable to:
Equity holders of the Company		141.9	66.1
Non-controlling interests ("NCI")		-1.1	-
Earnings per share
Basic (EUR)	5	2.62	1.21
Diluted (EUR)	5	2.60	1.21
Earnings per share - Continuing operations
Basic (EUR)	5	2.62	1.21
Diluted (EUR)	5	2.60	1.21

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R – see note 1 for more information on the restatement of comparative information.

The Group uses Alternative Performance Measures (non-GAAP measures) to reflect its financial performance – Refer to the appendix to the press release for more information.

Consolidated Statement of Comprehensive Income

Year ended 31 December

EUR million	Notes	2020	2019(1)
Result for the period		140.8	66.1
Other comprehensive income
Items that will never be reclassified to profit or loss (net of tax):		15.7	-4.0
Re-measurements of defined benefit liabilities/assets		-	-5.0
Equity-accounted investees - share of OCI	6	15.7	1.0
Items that may be reclassified subsequently to profit or loss (net of tax)		10.1	-0.4
Translation differences		-0.7	1.2
Cash flow hedges: fair value gains (losses) in equity		0.3	-
Equity-accounted investees - share of OCI	6	10.5	-1.6
Other comprehensive income, net of tax		25.8	-4.4
Total comprehensive income for the period		166.6	61.7
being: attributable to equity holders of the Company		167.7	61.7
attributable to non-controlling interests ("NCI")		-1.1	-

Consolidated Statement of Financial Position

At 31 December

EUR million	Notes	2020	2019(1)
Goodwill	4	76.2	97.1
Intangible assets		451.2	444.8
Property, plant & equipment		262.9	268.7
Investment property		31.7	28.9
Equity-accounted investees & long-term interests in equity-accounted investees	6	675.4	349.3
Deferred tax assets		39.2	41.3
Other receivables		4.4	4.6
Non-current assets		1,541.0	1,234.7
Inventories		457.4	492.8
Current financial investments	2	737.2	597.8
Derivative financial instruments		0.5	0.1
Current tax assets		18.2	10.5
Trade and other receivables		339.3	454.8
Cash & cash equivalents		351.3	667.5
Assets classified as held for sale		2.1	-
Current assets		1,906.0	2,223.5
TOTAL ASSETS		3,447.0	3,458.2

Capital & reserves attributable to equity holders		2,739.4	2,646.3
Non-controlling interests ("NCI")		3.5	0.6
Equity		2,742.9	2,646.9
Employee benefits		31.7	31.6
Provisions		11.6	14.7
Loans & borrowings		85.5	134.4
Deferred tax liabilities		131.1	132.8
Non-current liabilities		259.9	313.5
Provisions		6.5	2.5
Loans & borrowings		17.9	46.5
Derivative financial instruments		-	0.4
Other financial liabilities	2	-	31.9
Current tax liabilities		1.7	5.0
Trade & other payables		413.4	411.5
Liabilities directly associated with the assets held for sale		4.7	-
Current liabilities		444.2	497.8
TOTAL EQUITY AND LIABILITIES		3,447.0	3,458.2

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and to reflect the reclassification of financial investments at FVTPL from "Cash and cash equivalent" to "Current financial investments" in the framework of continuous improvement of the financial reporting presentation – see note 1 for more information on the restatement of comparative information.

Consolidated Statement of Changes in Equity

At 31 December

EUR million	Capital and reserves attributable to equity holders						Total	Non
	Share capital	Share premium	Treasury shares reserve	Hedging reserve	Retained earnings	Cumulative translation differences	Group's share	controlling interests	Equity
At 1 January 2019	160.0	24.4	-38.3	2.6	2,521.2		-14.8 2,655.1		0.3 2,655.4
Adjustment on initial application of IFRS 16 (net of tax)	-	-	-	-	-6.7	-	-6.7	-	-6.7
Restatement(1)	-	-	-	-	4.0	-	4.0	-	4.0
At 1 January 2019 (adjusted and restated)	160.0	24.4	-38.3	2.6	2,518.5		-14.8 2,652.4		0.3 2,652.7
Profit for the period	-	-	-	-	66.1	-	66.1	-	66.1
Other comprehensive income	-	-	-	-10.3	-4.4	10.3	-4.4	-	-4.4
Total comprehensive income for the period	-	-	-	-10.3	61.7	10.3	61.7	-	61.7
Treasury shares reserve	-	-	-18.7	-	-	-	-18.7	-	-18.7
Dividends	-	-	-	-	-54.8	-	-54.8	-	-54.8
Other movements	-	-	-	-	5.7	-	5.7	0.3	6.0
Total contribution and distribution	-	-	-18.7	-	-49.1	-	-67.8	0.3	-67.5
Total change in ownership interests	-	-	-	-	-	-	-	-	-
At 31 December 2019	160.0	24.4	-57.0	-7.7	2,531.1		-4.5 2,646.3		0.6 2,646.9

At 1 January 2020	160.0	24.4	-57.0	-7.7	2,531.1		-4.5 2,646.3		0.6 2,646.9
Profit for the period	-	-	-	-	141.9	-	141.9	-1.1	140.8
Other comprehensive income	-	-	-	-17.0	18.6	24.2	25.8	-	25.8
Total comprehensive income for the period	-	-	-	-17.0	160.5	24.2	167.7	-1.1	166.6
Movement of treasury shares	-	-	-24.4	-	-	-	-24.4	-	-24.4
Dividends	-	-	-	-	-53.9	-	-53.9	-	-53.9
Treasury shares - cancellation (buy-back programme - see note 5)	-	-	43.4	-	-43.4	-	-	-	-
Other movements	-	-	-	-	3.7	-	3.7	4.0	7.7
Total contribution and distribution	-	-	19.0	-	-93.6	-	-74.6	4.0	-70.6
Total change in ownership interests	-	-	-	-	-	-	-	-	-
At 31 December 2020	160.0	24.4	-38.0	-24.7	2,598.0		19.7 2,739.4		3.5 2,742.9

Consolidated Statement of Cash Flows

Year ended 31 December

EUR million	Notes	2020	2019(1)
Cash flows from operating activities - Continuing
Result for the period		140.8	66.1
Income tax expense	7	17.4	28.7
Share of result of equity-accounted investees and long-term interests in equity accounted investees, net of income tax	6	-149.9	-93.2
Net finance costs		1.9	22.8
Operating result from continuing operations		10.2	24.4
Depreciation		38.4	34.8
Amortisation of intangible assets		8.5	7.1
Impairment and write-offs on goodwill and other non-current assets	4	21.4	102.3
Other non-cash items		10.4	1.8
Employee benefits		-4.2	-4.2
Other cash items		0.2	-0.1
Change in net working capital		125.5	-74.9
Cash generated from operations		210.4	91.2
Income tax paid		-32.1	-42.0
Net cash from operating activities		178.3	49.2
Cash flows from investing activities - Continuing
Purchase of property, plant and equipment and intangible assets		-35.0	-50.4
Sale of property, plant and equipment and intangible assets		1.9	8.2
Net capital expenditure		-33.1	-42.2
Acquisition of subsidiaries (net of cash acquired)		-0.4	-13.8
Acquisition of equity-accounted investees and long-term interests in equity-accounted investees	6	-150.0	-
Contribution of cash from / (to) joint ventures		-1.6	-20.7
Proceeds from the sale of / (investments in) financial assets	2	-139.4	-597.8
Interest received		4.3	1.6
Dividends and proceeds from capital reduction received from equity-accounted investees & long-term interests in equity accounted investees		-	460.7
Net investment in other financial assets		-0.1	19.1
Net cash from investing activities		-320.3	-193.1
Cash flows from financing activities - Continuing
Acquisition (-)/Disposal (+) of non-controlling interests		6.0	0.1
Net disposal/(acquisition) of treasury shares		-24.4	-18.7
Repayment of lease liabilities		-15.8	-14.9
Net change in other loans and borrowings		-80.6	-27.1
Interest paid		-5.0	-6.5
Dividends paid by Company		-53.9	-54.8
Net cash from financing activities		-173.7	-121.9

Cash flows from continuing operations		-315.7	-265.8
Cash flows from discontinued operations		-	-
TOTAL CASH FLOW FOR THE PERIOD		-315.7	-265.8

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and to reflect the reclassification of financial investments at FVTPL from "Cash and cash equivalent" to "Current financial assets" in the framework of continuous improvement of the financial reporting presentation – see note 1 for more information on the restatement of comparative information.

Consolidated Statement of Cash Flows (cont'd)

EUR million Notes	2020	2019(1)
Reconciliation with statement of financial position
Cash at beginning of period	495.2	673.4
Cash equivalents at beginning of period	172.3	259.6
Cash and cash equivalents at beginning of period	667.5	933.0
Total cash flow for the period	-315.7	-265.8
Translation differences	-0.5	0.3
Cash and cash equivalents at end of period	351.3	667.5
Included within "Cash and cash equivalents"	351.3	667.5

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and to reflect the reclassification of financial investments at FVTPL from "Cash and cash equivalent" to "Current financial assets" in the framework of continuous improvement of the financial reporting presentation – see note 1 for more information on the restatement of comparative information.

Note 1: General information

s.a. D'Ieteren n.v. (the Company) is a public company incorporated and domiciled in Belgium. The address of the Company's registered office is: Rue du Mail 50, B-1050 Brussels.

In existence since 1805, and across family generations, the Company seeks growth and value creation by pursuing a strategy on the long term for its businesses and actively encouraging and supporting them to develop their position in their industry or in their geographies. The Company, its subsidiaries and its interests in associates and joint ventures (together the Group) form an international group, currently active in four activities:

D'Ieteren Auto distributes Volkswagen, Audi, SEAT, Škoda, Bentley, Lamborghini, Bugatti and Porsche vehicles in Belgium. It has a market share of more than 23% and 1.2 million vehicles on the road. Its business model is evolving towards improving the lives of citizens with fluid, accessible and sustainable mobility;
Belron (equity-accounted investee) has a clear purpose: "making a difference by solving people's problems with real care". It is the worldwide leader in vehicle glass repair and replacement and operates in 40 countries, through wholly owned businesses and franchises, with market leading brands – including Carglass®, Safelite® AutoGlass and Autoglass®. In addition, Belron manages vehicle glass and other insurance claims on behalf of insurance customers;
Moleskine is a premium aspirational lifestyle brand which develops and sells iconic branded notebooks and writing, travel and reading accessories through a global multichannel platform.
D'Ieteren Immo groups together the Belgian real estate interests of D'Ieteren Group. It owns and manages approximately 30 properties. It also pursues investment projects and carries out studies into possible site renovations.

The Company is listed on Euronext Brussels.

Restatement of comparative information

According to IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", the consolidated statement of profit or loss, the consolidated statement of comprehensive income, the consolidated statement of financial position, the consolidated statement of changes in equity, and the consolidated statement of cash flows have been restated in 2019 to take into account the adjustment on the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R (a result of the correction of a past error identified in 2020). As a result, the fair value of the contingent liability in the statement of financial position (included in the line "other financial liabilities") has been reduced by €5.6m at the end of December 2019. Finance income increased by €1.6m for the year ended 31 December 2019. Opening retained earnings have been restated by €4.0m as of 1 January 2019. The contingent liability has been settled during the first semester of 2020 for a total amount of €31.9m.

The consolidated statement of financial position and the consolidated statement of cash flows have also been restated in 2019 in the Corporate & unallocated segment to reflect the reclassification of €54.4m from "Cash and cash equivalent" to "Current financial investments" in the framework of continuous improvement of the financial reporting presentation.

COVID-19

The coronavirus (COVID-19) pandemic has caused an unprecedented and sudden shock to the overall economy and has been affecting all Group's activities throughout the world. The Group's activities experienced underactivity during Q2 2020 and at the end of the year with related decline in sales due the temporary shutdowns of the vast majority of the Group's operations (at the level of D'Ieteren Auto, Belron and Moleskine).

Several measures were launched at the beginning of the pandemic by its activities to preserve cash by reducing costs, optimizing working capital, postponing payments of social expenses in some countries thanks to some national governments initiatives and delay certain non-strategic investments. D'Ieteren Auto, Belron, Moleskine and D'Ieteren Immo rapidly adjusted their capacity where needed in conformity with country specific legal framework and regulations. Taking into account local, regional and national sanitary and health recommendations, the Group implemented strict sanitary and social distancing measures for employees and clients in its locations, to ensure a COVID-proof work environment. Together with the strengthening of personal sanitary measures and other precautionary measures in reopened locations, the Group also expanded throughout its organizations its home-work protocol for its white collars.

A Solidarity Programme has been established to support and help employees of the Group who may suffer hardship as a consequence of the COVID-19 crisis. As announced on 27 April 2020, the Board of Directors of the Company has decided to allocate the initially planned dividend increase compared to last year of €0.15 per share to this Solidarity Programme, leading to an €8m of dedicated provision recognised on the balance sheet. Additional contributions from salary and fee from senior managers and Board members have been added to the programme during the second semester and an amount of approximately €3m has already been used to support the Group's activities and employees. At 31 December 2020, €5.1m remains available in the programme.

Note 1: General information (continued)

The impact of government stimulus is not material to the income statement, except for support related to the temporary unemployment in Europe (ca. €24m at Belron level recognized in the income statement, together with a further €25m directly paid to employees, and ca. €10m of cost savings at D'Ieteren Auto level). The Group was exposed to additional credit risk arising from its customers (distress resulting from the sanitary crisis). Thanks to the intensified focus and tracking throughout the activities, there has been no significant increase in bad debt.

A review was undertaken during Q4 2020 to assess whether the consequences of COVID-19 crisis indicate that some assets could be impaired. Except for the €21m impairment charge already accounted for at Moleskine level at half-year 2020, this review confirmed that there was no other indication of impairment for some cash generating units. See note 4 for additional information on the impairment tests performed and the related consequences on the consolidated income statement.

As a consequence of the current environment, the Group also re-assessed the utilization of tax losses previously recognized as deferred tax assets, based on updated forecasts of taxable income. This review concluded that the recognised deferred tax assets are justified.

The Group also reviewed the valuation as at 31 December 2020 of the assets and liabilities considering the potential impacts of the current uncertainties and concluded that the carrying amounts are currently justified.

Despite the crisis and thanks to its adequate taken measures to preserve cash, the Group has a strong funding and liquidity structure in place as at 31 December 2020, with approximately €1.0bn of net cash sitting on the consolidated balance sheet level and a well-balanced debt profile at Belron level with no near-term significant maturities before 2024. As of 31 December 2020, the Group complied with all requirements of the loan covenants. The Group continues to take measures to minimize the impact of the crisis on cash flows and is ensuring that it has the necessary liquidity structure in place for the foreseeable future. Taking this into account, the Board of Directors has a reasonable expectation that the Group is well placed to manage its business risks, has sufficient funds to continue to meet its liabilities as they fall due and to continue in operational existence for the foreseeable future. The consolidated financial statements are therefore prepared on a going concern basis.

Brexit

The exit of the UK from the European Union (Brexit) could affect estimations or judgments made in the preparation of the financial statements, mostly for the entities with operations in the UK or Europe. Risks and potential exposures to the Brexit are however assessed as reasonable due to the limited exposure of the Group to the UK economic environment and to the measures taken by local management to mitigate the risks.

Alternative Performance Measurement – Non-GAAP measurement

In order to better reflect its underlying performance and assist investors in gaining a better understanding of its financial performance, the Group uses Alternative Performance Measures ("APMs"). These APMs are non-GAAP measures, i.e. their definition is not addressed by IFRS. The Group does not present APMs as an alternative to financial measures determined in accordance with IFRS and does not give to APMs greater prominence than defined IFRS measures.

Note 2: Segment information

The Group's reportable operating segments are D'Ieteren Auto, Belron, Moleskine and Corporate & unallocated. These operating segments are consistent with the Group's organisational and internal reporting structure, and with the requirements of IFRS 8 "Operating Segments".

D'Ieteren Auto comprises the automobile distribution activities of the Group. Belron comprises Belron Group s.a. and its subsidiaries. Despite its classification as an equity-accounted investee, Belron remains a reportable operating segment, reflecting the Group's internal reporting structure. Moleskine includes Moleskine S.p.a. and its subsidiaries. The segment "Corporate & unallocated" comprises the corporate and the real estate activities of the Group.

These operating segments are consistent with the Group's organisational and internal reporting structure.

Segment Statement of Profit or Loss - Operating Segments (Year Ended 31 December)

EUR million	Notes	2020
		D'Ieteren Auto	Belron	(100%) Moleskine	Corp. & unallocated	Eliminations	Group
External revenue	3	3,215.7	3,898.8	102.3	-	-3,898.8	3,318.0
Inter-segment revenue		-	-	-	-	-	-
Segment revenue		3,215.7	3,898.8	102.3	-	-3,898.8	3,318.0
Operating result (being segment result)		52.0	488.9	-23.5	-18.3	-488.9	10.2
Net finance costs		-4.2	-123.6	-11.9	14.2	123.6	-1.9
Finance income		0.2	3.2	0.9	4.0	-3.2	5.1
Finance costs		-1.9	-126.8	-4.9	-0.2	126.8	-7.0
Inter-segment financing interest		-2.5	-	-7.9	10.4	-	-
Share of result of equity-accounted investees and long-term interests in equity accounted investees, net of income tax	6	4.0	0.3	-	-	145.6	149.9
Result before tax		51.8	365.6	-35.4	-4.1	-219.7	158.2
Income tax expense	7	-15.8	-94.2	-0.7	-0.9	94.2	-17.4
Result from continuing operations		36.0	271.4	-36.1	-5.0	-125.5	140.8
Discontinued operations		-	-	-	-	-	-
RESULT FOR THE PERIOD		36.0	271.4	-36.1	-5.0	-125.5	140.8

Attributable to:	D'Ieteren Auto		Belron(*) Moleskine	Corp. & unallocated	Group
Equity holders of the Company(*)	37.1	145.9	-36.1	-5.0	141.9
Non-controlling interests	-1.1	-	-	-	-1.1
RESULT FOR THE PERIOD	36.0	145.9	-36.1	-5.0	140.8

(*) Belron at 53.75% (weighted average percentage for the 2020 period – see note 6).

In 2020, in the Corporate & unallocated segment, the line "Operating result" includes, amongst other amounts, the provision (€8.2m) related to the decision of the Board of Directors, as announced on 27 April 2020, to allocate the initially planned dividend increase of €0.15 per share to a solidarity program that will help employees of D'Ieteren Group who may suffer hardship as a consequence of the Covid-19 crisis. From the initial provision, €3.1m has been used and expensed during the year and the remaining €5.1m is presented in the current provisions in the consolidated statement of financial position.

In 2020, in the D'Ieteren Auto segment, the line "Operating result" includes, amongst other amounts, the liability (€41.0m) related to the finalization of the project carried out in 2020 by D'Ieteren Auto for the acceleration of the transformation of its activities in response to a rapidly changing market. This project entailed measures to adapt internal structures and working methods to the new market realities and transformed or ceased those activities that no longer met the needs of dealers or customers. This non-cash charge is presented in the line "other operating expenses" in the consolidated statement of profit or loss.

In 2020, in the Moleskine segment, the line "Operating result" includes, amongst other amounts, the impairment charge recognised at half-year in the Moleskine segment (€21.0m). This non-cash charge is presented in the line "other operating expenses" in the consolidated statement of profit or loss. The formal impairment review was performed at year-end in accordance with the requirements of IAS 36 and no additional impairment charge was booked as a result of this review. See note 4 for additional information.

In 2020, in the Belron segment, the increase in net finance costs on the same period last year reflects the new term loan taken out in Q4 2019 (issuance of a new seven-year Term Loan B of \$830m - which matures in October 2026 - and a €100m add-onloan to the existing € Term Loan B which matures in November 2024).

Segment Statement of Profit or Loss - Operating Segments (Year Ended 31 December)

EUR million	2019(1)
	D'Ieteren Auto	Belron	(100%) Moleskine	Corp. & unallocated	Eliminations	Group
External revenue	3,634.9	4,228.1	163.9	-	-4,228.1	3,798.8
Inter-segment revenue	-	-	-	-	-	-
Segment revenue	3,634.9	4,228.1	163.9	-	-4,228.1	3,798.8
Operating result (being segment result)	116.6	348.9	-83.4	-8.8	-348.9	24.4
Net finance costs	-2.7	-101.9	-9.4	-10.7	101.9	-22.8
Finance income	0.2	7.1	0.8	0.4	-7.1	1.4
Finance costs	-2.9	-109.0	-5.3	-16.0	109.0	-24.2
Inter-segment financing interest	-	-	-4.9	4.9	-	-
Share of result of equity-accounted investees and long-term interests in equity-accounted investees, net of income tax	8.6	0.1	-	-	84.5	93.2
Result before tax	122.5	247.1	-92.8	-19.5	-162.5	94.8
Income tax expense	-36.7	-85.9	-4.8	12.8	85.9	-28.7
Result from continuing operations	85.8	161.2	-97.6	-6.7	-76.6	66.1
Discontinued operations	-	-	-	-	-	-
RESULT FOR THE PERIOD	85.8	161.2	-97.6	-6.7	-76.6	66.1

Attributable to:	D'Ieteren Auto		Belron(*) Moleskine	Corp. & unallocated	Group
Equity holders of the Company(*)	85.8	84.6	-97.6	-6.7	66.1
Non-controlling interests	-	-	-	-	-
RESULT FOR THE PERIOD	85.8	84.6	-97.6	-6.7	66.1

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and, in the Belron segment, to present the net interest on long-term employee benefit asset as finance income rather than to separately present the interest income on plan assets as finance income and the interest cost on the defined benefit obligation as finance costs – see note 1 for more information on the restatement of comparative information.

(*) Belron at 52.48% (weighted average percentage for the 2019 period – see note 6).

In 2019, in the Corporate & unallocated segment, the line "Operating result" included, among other amounts, the gain (€6.5m) realised on the disposal of a property (recognized in other operating income in the consolidated statement of profit or loss) and the line "net finance costs" mainly included the loss (-€15.7m – as restated; see note 1 for more information) on the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R. The line "income tax expenses" mainly included the deferred tax assets recognized on unused tax losses and credits.

In both periods, the column "Eliminations" reconciles the segment statement of profit or loss (with the 12-month result of Belron presented on all lines under global integration method) to the IFRS Group consolidated statement of profit or loss (with the net result of Belron presented in the line "share of result of equity-accounted investees and long-term interest in equity-accounted investees, net of income tax" representing the share of the Group – 53.75% in 2020; 52.48% in 2019 – in the net result of Belron).

Segment Statement of Financial Position - Operating Segment

EUR million	Notes	31 December 2020
		D'Ieteren Auto		Belron Moleskine	Corp. &	unallocated Eliminations	Group
Goodwill	4	27.4	577.7	48.8	-	-577.7	76.2
Intangible assets		38.8	505.2	411.7	0.7	-505.2	451.2
Property, plant & equipment		63.3	783.6	27.2	172.4	-783.6	262.9
Investment property		0.1	-	-	31.6	-	31.7
Equity-accounted investees & long-term interests in equity-accounted investees	6	88.8	-	-	-	586.6	675.4
Financial investments		-	1.4	-	-	-1.4	-
Employee benefits		-	152.4	-	-	-152.4	-
Deferred tax assets		11.1	63.8	7.1	21.0	-63.8	39.2
Other receivables		2.1	5.0	1.0	1.3	-5.0	4.4
Non-current assets		231.6	2,089.1	495.8	227.0	-1,502.5	1,541.0
Inventories		432.0	299.0	25.4	-	-299.0	457.4
Current financial investments		-	-	-	737.2	-	737.2
Derivative financial instruments		-	1.6	0.5	-	-1.6	0.5
Current tax assets		8.4	6.7	9.8	-	-6.7	18.2
Trade and other receivables		303.9	281.3	30.3	5.1	-281.3	339.3
Cash & cash equivalents		56.0	617.8	30.2	265.1	-617.8	351.3
Assets classified as held for sale		2.1	46.8	-	-	-46.8	2.1
Current assets		802.4	1,253.2	96.2	1,007.4	-1,253.2	1,906.0
TOTAL ASSETS		1,034.0	3,342.3	592.0	1,234.4	-2,755.7	3,447.0

Equity		-	-	-	2,742.9	-	2,742.9
Employee benefits		28.1	7.6	2.4	1.2	-7.6	31.7
Provisions		11.3	32.0	-	0.3	-32.0	11.6
Loans & borrowings		17.9	2,812.3	62.9	4.7	-2,812.3	85.5
Inter-segment loan		202.6	-	253.9	-456.5	-	-
Derivative financial instruments		-	73.2	-	-	-73.2	-
Other payables		-	0.8	-	-	-0.8	-
Deferred tax liabilities		0.6	95.5	110.4	20.1	-95.5	131.1
Non-current liabilities		260.5	3,021.4	429.6	-430.2	-3,021.4	259.9
Provisions		-	49.4	1.4	5.1	-49.4	6.5
Loans & borrowings		3.2	179.3	14.2	0.5	-179.3	17.9
Derivative financial instruments		-	8.3	-	-	-8.3	-
Current tax liabilities		0.8	56.0	0.7	0.2	-56.0	1.7
Trade & other payables		366.8	616.8	28.6	18.0	-616.8	413.4
Liabilities directly associated with the assets held for sale		4.7	30.7	-	-	-30.7	4.7
Current liabilities		375.5	940.5	44.9	23.8	-940.5	444.2
TOTAL EQUITY AND LIABILITIES		636.0	3,961.9	474.5	2,336.5	-3,961.9	3,447.0

Segment Statement of Financial Position - Operating Segment

EUR million	31 December 2019(1)
	D'Ieteren Auto		Belron Moleskine	Corp. &	unallocated Eliminations	Group
Goodwill	27.3	590.1	69.8	-	-590.1	97.1
Intangible assets	31.9	594.0	412.7	0.2	-594.0	444.8
Property, plant & equipment	54.9	938.2	37.7	176.1	-938.2	268.7
Investment property	-	-	-	28.9	-	28.9
Equity-accounted investees & long-term interests in equity-accounted investees	84.8	-	-	-	264.5	349.3
Financial investments	-	1.9	-	-	-1.9	-
Derivative financial instruments	-	0.1	-	-	-0.1	-
Employee benefits	-	105.1	-	-	-105.1	-
Deferred tax assets	11.6	53.1	8.5	21.2	-53.1	41.3
Other receivables	2.1	6.0	1.2	1.3	-6.0	4.6
Non-current assets	212.6	2,288.5	529.9	227.7	-2,024.0	1,234.7
Inventories	462.7	330.4	30.1	-	-330.4	492.8
Current financial investments	-	-	-	597.8	-	597.8
Derivative financial instruments	-	5.0	0.1	-	-5.0	0.1
Current tax assets	0.9	2.5	9.5	0.1	-2.5	10.5
Trade and other receivables	414.2	355.8	35.7	4.9	-355.8	454.8
Cash & cash equivalents	-119.6	282.6	55.2	731.9	-282.6	667.5
Current assets	758.2	976.3	130.6	1,334.7	-976.3	2,223.5
TOTAL ASSETS	970.8	3,264.8	660.5	1,562.4	-3,000.3	3,458.2

Equity	-	-	-	2,646.9	-	2,646.9
Employee benefits	28.4	7.9	2.1	1.1	-7.9	31.6
Provisions	14.2	26.8	-	0.5	-26.8	14.7
Loans & borrowings	8.4	3,055.8	121.1	4.9	-3,055.8	134.4
Inter-segment loan	-	-	190.8	-190.8	-	-
Derivative financial instruments	-	6.5	-	-	-6.5	-
Other payables	-	1.2	-	-	-1.2	-
Deferred tax liabilities	1.3	97.4	111.1	20.4	-97.4	132.8
Non-current liabilities	52.3	3,195.6	425.1	-163.9	-3,195.6	313.5
Provisions	-	138.4	2.5	-	-138.4	2.5
Loans & borrowings	5.7	207.6	40.3	0.5	-207.6	46.5
Derivative financial instruments	-	9.6	0.4	-	-9.6	0.4
Other financial liabilities	-	-	-	31.9	-	31.9
Current tax liabilities	4.3	33.7	0.6	0.1	-33.7	5.0
Trade & other payables	361.7	585.8	37.6	12.2	-585.8	411.5
Current liabilities	371.7	975.1	81.4	44.7	-975.1	497.8
TOTAL EQUITY AND LIABILITIES	424.0	4,170.7	506.5	2,527.7	-4,170.7	3,458.2

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and to reflect the reclassification of financial investments at FVTPL from "Cash and cash equivalent" to "Current financial assets" in the framework of continuous improvement of the financial reporting presentation - see note 1 for more information on the restatement of comparative information.

In 2019 and 2020, in the Corporate & unallocated segment, the line "Current financial Investments" comprises investments in a portfolio of marketable securities (mainly corporate bonds in Europe). These investments are accounted for at FVTPL. Related cash movement of -€139.4m is included in the line "proceeds from the sale of / (investment in) financial assets" in the consolidated statement of cash flows.

In 2020, the lines "Assets classified as held-for-sale" and "Liabilities directly associated with the assets held for sale" represent, in the D'Ieteren Auto segment, the fair value of the assets and liabilities of those activities that no longer met the needs of dealers or customers, as a result of the finalization of the project carried out for the acceleration of the transformation of activities in response to a rapidly changing market. These assets and liabilities are going to be ceased in 2021. In the Belron segment, these amounts include the fair value of the activities that are expected to be sold during 2021 (see note 6 for more information).

In 2019 and 2020, the inter-segment loans comprise amounts lent by the Corporate department to the Moleskine segment (nonrecourse loan in the framework of the acquisition) and, in the current period, to the D'Ieteren Auto segment, at arm's length conditions.

In 2020, in the D'Ieteren Auto segment, the trade and other payables include the liability (€41.0m) related to the finalization of the project carried out in 2020 for the acceleration of the transformation of its activities in response to a rapidly changing market

In 2020, in the Corporate & unallocated segment, the current provisions include the €5.1m remaining provision related to the decision of the Board of Directors, as announced on 27 April 2020, to allocate the initially planned dividend increase of €0.15 per share to a solidarity program that will help employees of D'Ieteren Group who may suffer hardship as a consequence of the Covid-19 crisis (see note 1 for more information).

In 2019, the line "Other financial liabilities" of €31.9m represents the fair value of the financial contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R. This contingent liability has been settled in the first semester of 2020. The fair value of this contingent liability has been adjusted in the comparative periods (see note 1 for more information on the restatement of comparative information).

In 2020 and 2019, the column "Eliminations" reconciles the segment statement of financial position (including the assets and liabilities of Belron) to the IFRS consolidated statement of financial position (with Belron presented as an equity-accounted investee – see note 6).

In 2020 and 2019, right-of-use assets recognised under IFRS 16 are included in the line "Property, plant and equipment". The related lease liabilities are accounted for under "Loans and borrowings".

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December)

EUR million	Notes	2020
		D'Ieteren		Auto Belron Moleskine	Corp. &	unallocated Eliminations Group
Cash flows from operating activities - Continuing
Result for the period		36.0	271.4	-36.1	-5.0	-125.5	140.8
Income tax expense	7	15.8	94.2	0.7	0.9	-94.2	17.4
Share of result of equity-accounted investees and long-term interests in equity-accounted investees, net of income tax	6	-4.0	-0.3	-	-	-145.6	-149.9
Net finance costs		4.2	123.6	11.9	-14.2	-123.6	1.9
Operating result from continuing operations		52.0	488.9	-23.5	-18.3	-488.9	10.2
Depreciation		17.7	229.9	10.7	10.0	-229.9	38.4
Amortisation of intangible assets		5.2	65.7	3.3	-	-65.7	8.5
Impairment and write-offs on goodwill and other non current assets	4	0.4	23.9	21.0	-	-23.9	21.4
Other non-cash items		3.1	29.6	0.4	6.9	-29.6	10.4
Employee benefits		-4.2	-	-	-	-	-4.2
Other cash items		-	-	0.2	-	-	0.2
Change in net working capital		158.9	34.1	1.5	-34.9	-34.1	125.5
Cash generated from operations		233.1	872.1	13.6	-36.3	-872.1	210.4
Income tax paid		-28.3	-98.4	-2.2	-1.6	98.4	-32.1
Net cash from operating activities		204.8	773.7	11.4	-37.9	-773.7	178.3
Cash flows from investing activities - Continuing
Purchase of property, plant and equipment and intangible assets		-22.6	-38.1	-2.6	-9.8	38.1	-35.0
Sale of property, plant and equipment and intangible assets		1.4	5.5	-	0.5	-5.5	1.9
Net capital expenditure		-21.2	-32.6	-2.6	-9.3	32.6	-33.1
Acquisition of subsidiaries (net of cash acquired)		-0.4	-13.7	-	-	13.7	-0.4
Acquisition of equity-accounted investees and long term interests in equity-accounted investees	6	-	-	-	-150.0	-	-150.0
Disposal of subsidiaries (net of cash disposed of)		-	-0.4	-	-	0.4	-
Contribution of cash from/(to) joint venture		-1.6	-	-	-	-	-1.6
Proceeds from the sale of / (investments in) financial assets		-	-	-	-139.4	-	-139.4
Interest received		0.3	1.6	-	4.0	-1.6	4.3
Dividends and proceeds from capital reduction received from /(paid by) equity-accounted investees & long-term interests in equity accounted investees		-	-8.8	-	-	8.8	-
Net investment in other financial assets		-0.1	-	-	-	-	-0.1
Net cash from investing activities		-23.0	-53.9	-2.6	-294.7		53.9 -320.3

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December – continued)

EUR million	2020
	D'Ieteren		Auto Belron Moleskine	Corp. &	unallocated Eliminations Group
Cash flows from financing activities - Continuing
Acquisition (-)/Disposal (+) of non-controlling interests	6.0	-	-	-	-	6.0
Net disposal/(acquisition) of treasury shares	-	-	-	-24.4	-	-24.4
Purchase of own shares (buyback from MRP participants)	-	-39.9	-	-	39.9	-
Repayment of lease liabilities	-10.3	-172.8	-5.1	-0.4	172.8	-15.8
Net change in other loans and borrowings	-	-16.6	-80.5	-0.1	16.6	-80.6
Inter-segment loans	200.0	-	55.2	-255.2	-	-
Interest paid	-1.9	-127.2	-2.9	-0.2	127.2	-5.0
Dividends received from/(paid to) other segment	-200.0	-	-	200.0	-	-
Dividends paid by the Company	-	-	-	-53.9	-	-53.9
Net cash from financing activities		-6.2 -356.5	-33.3	-134.2		356.5 -173.7
Cash flows from continuing operations	175.6	363.3	-24.5	-466.8		-363.3 -315.7
Cash flows from discontinued operations	-	-	-	-	-	-
TOTAL CASH FLOW FOR THE PERIOD	175.6	363.3	-24.5	-466.8		-363.3 -315.7

Reconciliation with statement of financial position
Cash at beginning of period	-190.9	282.6	55.2	630.9	-282.6	495.2
Cash equivalents at the beginning of the period	71.3	-	-	101.0	-	172.3
Cash and cash equivalents at beginning of period	-119.6	282.6	55.2	731.9	-282.6	667.5
Total cash flow for the period	175.6	363.3	-24.5	-466.8	-363.3	-315.7
Translation differences	-	-24.2	-0.5	-	24.2	-0.5
Cash and cash equivalents at end of period	56.0	621.7	30.2	265.1	-621.7	351.3
Included within "Cash and cash equivalents	56.0	617.8	30.2	265.1	-617.8	351.3
Included within "Non-current assets held for sale"	-	3.9	-	-	-3.9	-

The line "impairment and write-offs on goodwill and other non-current assets" includes the impairment charges recognized in the Belron segment (€23.9m – see note 6) and in the Moleskine segment (€21m, fully allocated to goodwill – see note 4).

In the Belron segment, the line "Other non-cash items" includes, among other amounts, the losses on disposal of businesses in 2020. The cash outflow (€93m) related to the settlement of long-term management incentive program is included in the change in net working capital.

In the D'Ieteren Auto segment, the line "Change in net working capital" mainly reflects the lower level of inventories and a significant cash inflow from trade receivables.

In the Corporate & unallocated segment, the line "Acquisition of equity-accounted investees and long-term interests in equityaccounted investees" represents the non-voting preference shares acquired by the Group in February 2020, previously held by CD&R (see note 6 for more information)

The line "inter-segment loans" represents the additional amount lent by the Corporate department to the Moleskine and D'Ieteren Auto segments, at arm's length conditions.

The line "Dividends received from / (paid to) other segments" relates to the intra-group dividend paid by the D'Ieteren Auto segment to the Corporate & unallocated segment.

The line "Dividends paid by the Company" includes the distribution to shareholders of the ordinary dividend (€1.00 per share).

The column "Eliminations" reconciles the segment statement of cash flows (with Belron presented on all lines under global integration method) to the IFRS Group consolidated statement of cash flows (with Belron consolidated under equity-accounting method).

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December)

EUR million	2019(1)
	D'Ieteren Auto		Belron Moleskine	Corp. &	unallocated Eliminations Group
Cash flows from operating activities - Continuing
Result for the period	85.8	161.2	-97.6	-6.7	-76.6	66.1
Income tax expense	36.7	85.9	4.8	-12.8	-85.9	28.7
Share of result of equity-accounted investees and long-term interests in equity-accounted investees, net of income tax	-8.6	-0.1	-	-	-84.5	-93.2
Net finance costs	2.7	101.9	9.4	10.7	-101.9	22.8
Operating result from continuing operations	116.6	348.9	-83.4	-8.8	-348.9	24.4
Depreciation	12.4	237.9	13.0	9.4	-237.9	34.8
Amortisation of intangible assets	3.7	49.9	3.4	-	-49.9	7.1
Impairment and write-offs on goodwill and other non-current assets	-	21.3	102.3	-	-21.3	102.3
Other non-cash items	9.2	57.9	-3.0	-4.4	-57.9	1.8
Employee benefits	-3.6	-	-0.6	-	-	-4.2
Other cash items	-	-	-	-0.1	-	-0.1
Change in net working capital	-83.7	14.5	9.9	-1.1	-14.5	-74.9
Cash generated from operations	54.6	730.4	41.6	-5.0	-730.4	91.2
Income tax paid	-38.1	-41.8	-2.1	-1.8	41.8	-42.0
Net cash from operating activities	16.5	688.6	39.5	-6.8	-688.6	49.2
Cash flows from investing activities - Continuing
Purchase of property, plant and equipment and intangible assets	-28.1	-70.4	-7.5	-14.8	70.4	-50.4
Sale of property, plant and equipment and intangible assets	0.9	4.6	-	7.3	-4.6	8.2
Net capital expenditure	-27.2	-65.8	-7.5	-7.5	65.8	-42.2
Acquisition of subsidiaries (net of cash acquired)	-13.6	-199.9	-0.2	-	199.9	-13.8
Acquisition of equity-accounted investees and long-term interests in equity-accounted investees	-	-	-	-	-	-
Disposal of subsidiaries (net of cash disposed of)	-	-6.3	-	-	6.3	-
Contribution of cash from/(to) joint venture	-20.7	-	-	-	-	-20.7
Proceeds from the sale of / (investments in) financial assets	-	-	-	-597.8	-	-597.8
Interest received	1.1	4.2	0.1	0.4	-4.2	1.6
Dividends and proceeds from capital reduction received from /(paid by) equity-accounted investees & long-term interests in equity accounted investees	-	-839.9	-	460.7	839.9	460.7
Net investment in other financial assets	-0.9	-	-	20.0	-	19.1
Net cash from investing activities		-61.3 -1,107.7	-7.6	-124.2	1,107.7 -193.1

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and to reflect the reclassification of financial investments at FVTPL from "Cash and cash equivalent" to "Current financial assets" in the framework of continuous improvement of the financial reporting presentation – see note 1 for more information on the restatement of comparative information.

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December – continued)

EUR million	2019(1)
	D'Ieteren		Auto Belron Moleskine	Corp. &	unallocated Eliminations Group
Cash flows from financing activities - Continuing
Acquisition (-)/Disposal (+) of non-controlling interests	0.1	-	-	-	-	0.1
Share capital increase	-	0.6	-	-	-0.6	-
Net disposal/(acquisition) of treasury shares	-	-	-	-18.7	-	-18.7
Repayment of lease liabilities	-6.2	-156.4	-8.3	-0.4	156.4	-14.9
Net change in other loans and borrowings	-7.8	826.5	-19.2	-0.1	-826.5	-27.1
Inter-segment loans	-	-	30.0	-30.0	-	-
Interest paid	-3.0	-99.1	-3.3	-0.2	99.1	-6.5
Dividends paid by the Company	-	-	-	-54.8	-	-54.8
Net cash from financing activities	-16.9	571.6	-0.8	-104.2		-571.6 -121.9
Cash flows from continuing operations	-61.7	152.5	31.1	-235.2		-152.5 -265.8
Cash flows from discontinued operations	-	-	-	-	-	-
TOTAL CASH FLOW FOR THE PERIOD	-61.7	152.5	31.1	-235.2		-152.5 -265.8

Reconciliation with statement of financial position
Cash at beginning of period	-59.0	124.2	23.8	708.6	-124.2	673.4
Cash included in non-current assets held for sale	-	0.8	-	-	-0.8	-
Cash equivalents at the beginning of the period	1.1	-	-	258.5	-	259.6
Cash and cash equivalents at beginning of period	-57.9	125.0	23.8	967.1	-125.0	933.0
Total cash flow for the period	-61.7	152.5	31.1	-235.2	-152.5	-265.8
Translation differences	-	5.1	0.3	-	-5.1	0.3
Cash and cash equivalents at end of period	-119.6	282.6	55.2	731.9	-282.6	667.5
Included within "Cash and cash equivalents	-119.6	282.6	55.2	731.9	-282.6	667.5

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and to reflect the reclassification of financial investments at FVTPL from "Cash and cash equivalent" to "Current financial assets" in the framework of continuous improvement of the financial reporting presentation – see note 1 for more information on the restatement of comparative information.

The line "impairment and write-offs on goodwill and other non-current assets" included the impairment charges recognized in the Belron segment (€21.3 m) and in the Moleskine segment (€102.3m fully allocated to goodwill) following the impairment exercise performed at the end of 2019.

In the Belron segment, the line "Other non‐cash items" included, among other amounts, the provision for long‐term management incentive program.

In the Belron segment, the line "acquisition of subsidiaries (net of cash acquired) included, among other amounts, the US TruRoad acquisition.

The line "Dividends and proceeds from capital reduction received from / (paid by) equity‐accounted investees and long-term interests in equity-accounted investees" represented the share of the Group in the distribution of the dividend (€60.5m) and the share capital reduction (€400.2m) operated by the Belron segment in December 2019.

The inter‐segment loans represented additional amount lent by the Corporate department to the Moleskine segment, at arm's length conditions.

The line "Dividends paid by the Company" included the distribution to shareholders of the ordinary dividend (€1.00 per share).

In the period, the column "Eliminations" reconciled the segment statement of cash flows (with Belron presented on all lines under global integration method) to the IFRS Group consolidated statement of cash flows (with Belron consolidated under equity‐accounting method).

Note 3: Revenue

Disaggregation of revenue issued from contracts with customers for the year ended 31 December 2020 and 31 December 2019 is presented in the table below:

EUR million	2020	2019(1)
D'Ieteren Auto
New vehicles	2,792.0	3,193.5
Used cars	95.5	76.1
Spare parts and accessories	182.3	215.7
After-sales activities by D'Ieteren Car Centers	83.6	97.9
D'Ieteren Sport	32.2	31.4
Other revenue	30.1	20.3
Subtotal D'Ieteren Auto	3,215.7	3,634.9
Moleskine
Europe, Middle-East and Africa (EMEA)	43.6	74.9
America	37.0	60.9
Asia-Pacific (APAC)	21.7	28.1
Subtotal Moleskine	102.3	163.9
Total Revenue	3,318.0	3,798.8

(1) As restated in the framework of continuous improvement of the financial reporting presentation

Note 4: Impairment

In accordance with the requirements of IAS 36 "Impairment of Assets", the Group completed a review of the carrying value of goodwill and of the intangible assets with indefinite useful lives. The impairment review is based on the value in use calculation and is carried out to ensure that the carrying value of the assets are stated at no more than their recoverable amount, being the higher of fair value less costs to sell and value in use.

As a result of its classification as an equity-accounted investee, information on the impairment tests performed in the Belron segment are provided in note 6.

The Group completed the annual impairment test for goodwill and intangible assets with indefinite useful lives and concluded that, based on the assumptions described below, no additional impairment charge was required. Impairment testing relies on a number of critical judgments, estimates and assumptions. Management believes that all of its estimates are reasonable since they are consistent with the Group's internal reporting and reflect management best estimates. Projected revenue growth rates, competitive and consumer trends, operating margins, discount rates and terminal growth rates are assumptions and estimates that may be revised in future periods. Should these vary adversely in the future, the value in use of goodwill and intangible assets with indefinite useful lives may reduce below their carrying amounts.

Moleskine's operations were affected by the Covid-19 pandemic and the measures taken to contain it. These measures, which included lockdown periods imposed by local governments, constituted a triggering event leading to an impairment test in the interim condensed financial statements for the six months ended 30 June 2020, The interim impairment test resulted in an impairment charge of €21.0m, fully allocated to the goodwill of the Moleskine segment, and included in the other operating expenses in the consolidated statement of profit or loss. The calculation was based on a revised version of the Moleskine's five‐ year business plan (over the period H2-2020 to 2023) taking into account the expected impacts over the years of the Covid-19 crisis.

Despite the level of uncertainty inherent to the duration and full extent of the Covid-19 pandemic's impact on Moleskine's operation, the Group chose not to consider a scenario-based approach in estimating the future cash flows. To calculate the recoverable amount of the CGU, the Group used a single cash flow scenario that appropriately considers the uncertainty surrounding the Covid-19 pandemic on the projected cash flows of the CGU.

At year-end 2020 the Board of Directors of the Company reviewed the carrying amount of the Moleskine cash-generating unit. In determining the value in use of the CGU, the Company calculated the present value of the estimated future cash flows, based on Moleskine's new five-year strategic plan (2021 – 2025) prepared by management in the second half of the year, reviewed and approved by the Board of Directors. This strategic plan has been prepared under the assumptions that the Covid-19 pandemic will continue to adversely impact the performance in 2021 and part of 2022, reflected in the revenue growth rates and margins. As from 2023 and beyond, the revenue growth rates and underlying margins have been estimated based on historical values achieved during the pre-crisis situation. The terminal growth rate applied to the model is 1.5% (2019: 2%). The terminal growth rate was determined based on management's estimate of the long-term compound annual EBITDA growth rate, consistent with the assumptions that a market participant would make. The pre-tax discount rate applied amounts to 7.0% (2019: 7.9%; 30 June 2020: 7.9%) and is based upon the weighted average cost of capital of the Moleskine segment, considering appropriate adjustments for the relevant risks associated with investing in equities, with the business and with the underlying country (country risk premium).

The Board of Directors of the Company is satisfied that the carrying amount of the Moleskine cash-generating unit is stated at no more than its value in use. Sensitivity analyses prepared by management revealed that an individual 1% adverse movement in either the terminal growth rate or the discount rate would not lead to further impairment. The individual change required for carrying amount to equal recoverable amount is 2.8% for the discount rate or -3.8% for the terminal growth rate. At 31 December 2019 and 30 June 2020, the recoverable amount of the CGU was equal to its carrying amount (taking respectively into account the €102.3m and the €21.0m impairment charges accounted for).

Note 5: Earnings per share

Earnings per share ("EPS") and earnings per share from continuing operations ("Continuing EPS") are shown on the face of the consolidated statement of profit or loss. Basic and diluted EPS are based on the result for the period attributable to equity holders of the Company (based on the result from continuing operations attributable to equity holders of the Company for the continuing EPS), after adjustment for participating shares (each participating share confers one voting right and gives right to a dividend equal to one eighth of the dividend of an ordinary share).

The weighted average number of ordinary shares in issue for the period is shown in the table below.

The Group has granted options to employees over ordinary shares of the Company. Such shares constitute the only category of potentially dilutive ordinary shares.

The weighted average number of ordinary shares outstanding during the period is 53,587,252 (53.965.827 in the prior period) and the weighted average number of ordinary shares taken into account for diluted EPS is 53,966,984 (54,255,218 in the prior period). The decrease in the average number of ordinary shares outstanding is the result of the destruction, in May 2020, of 934,692 treasury shares held by the Company as part of the programme approved by the Board on 28 August 2019 to repurchase the Company's own shares.

The options over ordinary shares of the Company increased the weighted average number of shares of the Company taken into account for diluted earnings per share in 2019 and 2020 as some option exercise prices were below the average market share price.

The computation of basic and diluted EPS is set out below:

	2020	2019(1)
Result for the period attributable to equity holders	141.9	66.1
Adjustment for participating shares	-1.6	-0.7
Numerator for EPS (EUR million) (a)	140.3	65.4

Result from continuing operations	140.8	66.1
Share of non-controlling interests in result from continuing operations	1.1	-
Result from continuing operations attributable to equity holders	141.9	66.1
Adjustment for participating shares	-1.6	-0.7
Numerator for continuing EPS (EUR million) (b)	140.3	65.4

Weighted average number of ordinary shares outstanding during the period (c)	53,587,252	53,965,827
Adjustment for stock option plans	379,732	289,391
Weighted average number of ordinary shares taken into account for diluted EPS (d)	53,966,984	54,255,218

Result for the period attributable to equity holders
Basic EPS (EUR) (a)/(c)	2.62	1.21
Diluted EPS (EUR) (a)/(d)	2.60	1.21

Result from continuing operations attributable to equity holders
Basic continuing EPS (EUR) (b)/(c)	2.62	1.21
Diluted continuing EPS (EUR) (b)/(d)	2.60	1.21

(1) As restated – refer to note 1 for further information on the restatement of comparative information.

Note 6: Equity-accounted investees

In 2020 and 2019, two group entities are accounted for using the equity method.

EUR million	2020			2019
	D'Ieteren Auto	Belron	Group	D'Ieteren Auto	Belron	Group
Interests in joint ventures	88.8	586.6	675.4	84.8	264.5	349.3
Total of equity-accounted investees and long-term interests in equity-accounted investees	88.8	586.6	675.4	84.8	264.5	349.3
Share of profit in joint ventures	4.0	145.9	149.9	8.6	84.6	93.2
Total of share of result after tax of equity accounted investees and long-term interests in equity-accounted investees	4.0	145.9	149.9	8.6	84.6	93.2

Belron

In 2020 and in 2019, the largest equity-accounted investee is Belron Group s.a. ("BGSA"), being the joint venture holding the Belron activities (see note 1 for more information), owned 54.85% in voting rights by the Group. The Group has joint control over BGSA as a result of some reserved matters being shared with Clayton, Dubilier & Rice ("CD&R").

At inception (February 2018), the capital structure of BGSA was composed of voting ordinary shares (ca. 3 % of total equity) and non-voting preference shares (ca. 97% of total equity), in the same proportion between shareholders (the Group, CD&R, and the family holding company of Belron's CEO). For the year 2020, preference shares bear a fixed annual compounding dividend rate of 10% (any distribution being first allocated to the preference shares in order to satisfy the accumulated dividend and to redeem the subscription amount of preference shares).

A new Management Reward Plan (MRP) involving about 250 key employees was set up on 15 June 2018. The participants of the MRP acquired non-voting equity instruments in BGSA (representing the fair value of various classes of equity instruments, being all treated as equity under IFRS). Part of the issued equity consists of "ratchet shares" which will allow management to enjoy additional returns if certain performance hurdles (IRR and Cash on Cash) are satisfied at exit, which will result in additional dilution for existing shareholders. Note that the MRP does not impact the Group's percentage voting rights (54.85%).

The detailed statement of financial position of Belron as included in its own financial statements is disclosed in note 2 "Segment information".

Belron carried out a full impairment review for each of its cash generating units (being the different countries where it operates). There was no impairment recognised as part of the review carried out. However, a total impairment charge of €11m is recognised and relates to the write-down of assets classified as held for sale at the year-end to reflect the disposal fair value. In addition, Belron recognised other disposal-related costs of €30.6m. These costs relate to the Italy ADRR business, which was sold during the reporting period, and certain Group businesses (France, Belgium and UK) classified as held for sale at 31 December 2020. These costs in the Belron segment however have no impact on the Group operating result since Belron is an equity-accounted investee (the share of the Group in the impairment charge and disposal costs of Belron is included in the line "share of result of equity-accounted investees and long-term interest in equity-accounted investees, net of tax").

In 2020, based on IAS28, the Board of Directors of the Company did not identify any indication of possible impairment (a triggering event) on its investment in Belron (equity-accounted investee) and therefore did not perform an impairment test.

A shareholders' agreement was signed in May 2018 between the Group and the family holding company of the Belron's CEO, including put options (with related call options) related to the interest held by the family holding company of the Belron's CEO. Based on IFRS requirements, the (financial) obligation to buy the equity instruments in an equity-accounted investee does not give rise to a financial liability in the consolidated statement of financial position (because equity-accounted investees are not part of the Group). This contract is a derivative that is in the scope of IFRS 9 "Financial Instruments", measured at fair value through profit or loss and categorised within the fair value hierarchy as level 3. The fair value of this derivative amounts to nil as at 31 December 2020; the value of the Belron's share based on the put formula being equal to the recent fair market value of Belron (recent MRP valuation).

In the consolidated statement of comprehensive income, the lines "Equity-accounted investees – share of OCI" mainly relate to the remeasurements of defined benefit assets/liabilities (primarily due to the UK pension scheme recording an actuarial gain with return on scheme assets less than offset by an actuarial loss due to a decrease in the discount rate), to the cash flow hedges (interest rate swaps and cross currency interest rate swaps used to partially hedge the debt) and translation differences of Belron.

Note 6: Equity-accounted investees (continued)

The table below presents the revenue, profit before tax, the net result, and the other comprehensive income for the year ended 31 December 2020 and 31 December 2019. The Group's share in net result is computed based on a weighted average percentage of 53.75% in 2020 and 52.48% in 2019.

EUR million	2020	2019
Revenue	3,898.8	4,228.1
Profit before tax	365.6	247.1
Result for the period (100%)	271.4	161.2
Other comprehensive income (100%)	54.8	-0.8
Profit (or loss) and total comprehensive income (100%)	326.2	160.4
Group's share of profit (or loss) and comprehensive income	172.1	84.2
Group's share of profit (or loss)	145.9	84.6
Group's share of comprehensive income	26.2	-0.4

Given the equity structure described above, the Group's share in the net result of Belron for period ended 31 December 2020 and 31 December 2019 was determined based on the Group's percentage of ownership in the preference shares (for the fixed annual compounding dividend rate of 10% which benefits to preference shares) and based on the Group's percentage of ownership in the ordinary shares (for the net result in surplus, after deduction of the fixed dividend of the preference shares). This calculation resulted in a Group's share in the net result of Belron computed based on a weighted average percentage of 53.75% (52.48% in 2019), corresponding to a Group's share in the profit of Belron of €145.9m (out of which €42.6m relate to preference shares and €103.3m relate to ordinary shares). The 2020 calculation took into account the €150m non-voting preference shares acquired by the Group in February 2020 (these shares were previously held by CD&R).

The reconciliation of the Group's share in the net assets of BGSA from 31 December 2019 to 31 December 2020 is presented below:

EUR million
Group's share of net assets at 31 December 2019	264.5
Group's share of profit (or loss) and comprehensive income	172.1
Other movements, Group's share	150.0
Group's share of net assets at 31 December 2020	586.6

As at 31 December 2020, BGSA owns €39.9m of its own shares previously held by MRP participants. As the repurchase transaction took place at fair value (the fair value of the own shares repurchased corresponds to the cash-out made to acquire these shares at transaction date), the transaction did not impact the carrying amount of the equity-accounted investee that the Group owns in BGSA as at 31 December 2020. These shares will be re-purchased in the future by existing and new participants of the MRP.

D'Ieteren Auto

In 2020 and 2019, the second largest equity-accounted investee is the joint venture Volkswagen D'Ieteren Finance (VDFin), owned 50% minus one share by the Group and 50% plus one share by Volkswagen Financial Services (a subsidiary of the Volkswagen group), active in a full range of financial services related to the sale of the Volkswagen group vehicles on the Belgian market.

The following table summarises the financial information of VDFin as included in its own financial statements, adjusted for differences in accounting policies, and also reconciles this summarised financial information to the carrying amount of the Group's interest in VDFin.

Note 6: Equity-accounted investees (continued)

EUR million	2020	2019
Non-current assets	1,607.3	1,556.3
Current assets (excluding cash and cash equivalents)	966.9	927.9
Cash and cash equivalents	54.8	66.0
Non-current liabilities (excluding financial liabilities)	-8.5	-10.2
Non-current financial liabilities	-954.9	-886.2
Current liabilities (excluding financial liabilities)	-147.5	-170.0
Current financial liabilities	-1,340.5	-1,314.2
Net assets (100%)	177.6	169.6
Group's share of net assets (49.99%) and carrying amount of interest in joint
venture	88.8	84.8

EUR million	2020	2019
Revenue	658.6	636.3
Depreciation and amortization	-120.3	-117.9
Net finance costs	26.1	24.9
Profit before tax	12.7	24.0
Tax expense	-4.7	-6.8
Result for the period (100%)	8.0	17.2
Other comprehensive income (100%)	-	-0.8
Profit (or loss) and total comprehensive income (100%)	8.0	16.4
Group's share of profit (or loss) and comprehensive income (49.99%)	4.0	8.2

Note 7: Income tax expense

The Group's consolidated effective tax rate for the year ended 31 December 2020 is 11.0% (year ended 31 December 2019: 30.3% - as restated, see note 1). The decrease in effective tax rate is primarily the result of the lower impairment charge in the Moleskine segment (€21.0m in 2020 versus €102.3m in 2019) for which no tax relief is available.

Alternative Performance Measurement (APM) ---Non-Gaap Measurement

Framework and definitions

In order to better reflect its underlying performance and assist investors, securities analysts and other interested parties in gaining a better understanding of its financial performance, the Group uses Alternative Performance Measures ("APMs"). These alternative performance metrics are used internally for analysing the Group's results as well as its business units.

These APMs are non-GAAP measures, i.e. their definition is not addressed by IFRS. They are derived from the audited IFRS accounts. The APMs may not be comparable to similarly titled measures of other companies and have limitations as analytical tools and should not be considered in isolation or as a substitute for analysis of the Group's performance or liquidity under IFRS. The Group does not present APMs as an alternative to financial measures determined in accordance with IFRS and does not give to APMs greater prominence than defined IFRS measures.

Each line of the statement of profit or loss (see below), and each subtotal of the segment statement of profit or loss (see below), is broken down in order to provide information on the adjusted result and on the adjustingitems.

The adjusting items are identified by the Group in order to present comparable figures, giving to the investors a better view on the way the Group is measuring and managing its financial performance. They comprise the following items, but are not limited to:

(a) Recognised fair value gains and losses on financial instruments (i.e. change in fair value between the opening and the end of the period, excluding the accrued cash flows of the derivatives that occurred during the period), where hedge accounting may not be applied under IAS 39/IFRS 9 (in this case recognised fair value gains and losses being directly accounted for in the Consolidated Statement of Comprehensive Income);
(b) Exchange gains and losses arising upon the translation of foreign currency loans and borrowings at the closing rate;
(c) Impairment of goodwill and other non-current assets;
(d) Amortisation of intangible assets with finite useful lives recognised in the framework of the allocation as defined by IFRS 3 of the cost of a business combination;
(e) Other material items that derive from events or transactions that fall within the ordinary activities of the Group, and which individually or, if of a similar type, in aggregate, are separately disclosed by virtue of their size or incidence.

Adjusted result consists of the IFRS reported result, excluding adjustingitems as listed above.

The Group uses as key performance indicator the adjusted consolidated result before tax, Group's share (Adjusted PBT, Group's share). This APM consists of the segment reported result before tax (PBT), taking into account the result before tax of the discontinued operations, and excluding adjustingitems and the share of minority shareholders.

Presentation of APMs in the consolidated statement of profit or loss for the year ended 31 December

€m		2020			2019(1)
		Of which					Of which
	Total	Adjusted result	Adjusting items	Total	Adjusted result	Adjusting items
Revenue	3,318.0	3,318.0	-	3,798.8	3,798.8	-
Cost of sales	-2,877.4	-2,877.3	-0.1	-3,303.3	-3,303.3	-
Gross margin	440.6	440.7	-0.1	495.5	495.5	-
Commercial and administrative expenses	-370.0	-364.4	-5.6	-382.2	-379.7	-2.5
Other operating income	13.3	13.0	0.3	21.8	15.3	6.5
Other operating expenses	-73.7	-10.9	-62.8	-110.7	-8.4	-102.3
Operating result	10.2	78.4	-68.2	24.4	122.7	-98.3
Net finance costs	-1.9	-2.0	0.1	-22.8	-7.1	-15.7
Finance income	5.1	5.0	0.1	1.4	1.4	-
Finance costs	-7.0	-7.0	-	-24.2	-8.5	-15.7
Share of result of equity-accounted investees and long-term interests in equity-accounted investees, net of income tax	149.9	183.3	-33.4	93.2	125.1	-31.9
Result before tax	158.2	259.7	-101.5	94.8	240.7	-145.9
Income tax expense	-17.4	-28.9	11.5	-28.7	-29.1	0.4
Result from continuing operations	140.8	230.8	-90.0	66.1	211.6	-145.5
Discontinued operations	-	-	-	-	-	-
RESULT FOR THE PERIOD	140.8	230.8	-90.0	66.1	211.6	-145.5
Result attributable to:					-	-
Equity holders of the Company	141.9	231.9	-90.0	66.1	211.6	-145.5
Non-controlling interests	-1.1	-1.1	-	-	-	-
Earnings per share
Basic (EUR)	2.62	4.28	-1.66	1.21	3.88	-2.67
Diluted (EUR)	2.60	4.25	-1.65	1.21	3.86	-2.65
Earnings per share -Continuing operations
Basic (EUR)	2.62	4.28	-1.66	1.21	3.88	-2.67
Diluted (EUR)	2.60	4.25	-1.65	1.21	3.86	-2.65

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R – see note 1 of the 2020 full-year results press release for more information on the restatement of comparative information.

Presentation of APMs in the segment statement of profit or loss for the year ended 31 December

The Group's reportable operating segments are D'Ieteren Auto, Belron, Moleskine and Corporate & Unallocated (corporate and real estate activities). These operating segments are consistent with the Group's organisational and internal reporting structure, and with the requirements of IFRS 8 "Operating Segments".

Despite its classification as an equity-accounted investee, Belron remains a reportable operating segment, reflecting the Group's internal reporting structure.

The Group had initially adopted IFRS 16 at 1 January 2019 (using the modified retrospective approach). The Group currently presents in both periods the results of its operating segments on a post-IFRS 16 basis, reflecting the Group's internal reporting structure.

€m Notes	2020
	D'Ieteren Auto	Belron	(100%) Moleskine	Corp. & unallocated	Eliminations	Group
External revenue	3,215.7	3,898.8	102.3	-	-3,898.8	3,318.0
Inter-segment revenue	-	-	-	-	-	-
Segment revenue	3,215.7	3,898.8	102.3	-	-3,898.8	3,318.0
Operating result (being segment result)	52.0	488.9	-23.5	-18.3	-488.9	10.2
Of which Adjusted result	98.9	583.1	-1.5	-19.0	-583.1	78.4
Adjusting items	-46.9	-94.2	-22.0	0.7	94.2	-68.2
Net finance costs	-4.2	-123.6	-11.9	14.2	123.6	-1.9
Finance income	0.2	3.2	0.9	4.0	-3.2	5.1
Finance costs	-1.9	-126.8	-4.9	-0.2	126.8	-7.0
Inter-segment financing interest	-2.5	-	-7.9	10.4	-	-
Share of result of equity-accounted investees and long-term interests in equity accounted investees, net of income tax	4.0	0.3	-	-	145.6	149.9
Result before tax	51.8	365.6	-35.4	-4.1	-219.7	158.2
Of which Adjusted result	100.0	461.7	-13.5	-4.8	-283.7	259.7
Adjusting items	-48.2	-96.1	-21.9	0.7	64.0	-101.5
Income tax expense	-15.8	-94.2	-0.7	-0.9	94.2	-17.4
Result from continuing operations	36.0	271.4	-36.1	-5.0	-125.5	140.8
Of which Adjusted result	72.5	331.0	-14.1	-5.6	-153.0	230.8
Adjusting items	-36.5	-59.6	-22.0	0.6	27.5	-90.0
Discontinued operations	-	-	-	-	-	-
RESULT FOR THE PERIOD	36.0	271.4	-36.1	-5.0	-125.5	140.8

Attributable to:	D'Ieteren Auto		Belron(*) Moleskine	Corp. & unallocated	Group
Equity holders of the Company(*)	37.1	145.9	-36.1	-5.0	141.9
Of which Adjusted result	73.6	178.0	-14.1	-5.6	231.9
Adjusting items	-36.5	-32.1	-22.0	0.6	-90.0
Non-controlling interests	-1.1	-	-	-	-1.1
RESULT FOR THE PERIOD	36.0	145.9	-36.1	-5.0	140.8

(*) Belron at 53.75% (weighted average percentage for the 2020 period – see note 6 of the 2020 full-year results press release).

Presentation of APMs in the segment statement of profit or loss for the year ended 31 December (continued)

€m		2019(1)
	D'Ieteren Auto	Belron	(100%) Moleskine	Corp. & unallocated	Eliminations	Group
External revenue	3,634.9	4,228.1	163.9	-	-4,228.1	3,798.8
Inter-segment revenue	-	-	-	-	-	-
Segment revenue	3,634.9	4,228.1	163.9	-	-4,228.1	3,798.8
Operating result (being segment result)	116.6	348.9	-83.4	-8.8	-348.9	24.4
Of which Adjusted result	119.1	416.4	18.9	-15.3	-416.4	122.7
Adjusting items	-2.5	-67.5	-102.3	6.5	67.5	-98.3
Net finance costs	-2.7	-101.9	-9.4	-10.7	101.9	-22.8
Finance income	0.2	7.1	0.8	0.4	-7.1	1.4
Finance costs	-2.9	-109.0	-5.3	-16.0	109.0	-24.2
Inter-segment financing interest	-	-	-4.9	4.9	-	-
Share of result of equity-accounted investees and long-term interests in equity-accounted investees, net of income tax	8.6	0.1	-	-	84.5	93.2
Result before tax	122.5	247.1	-92.8	-19.5	-162.5	94.8
Of which Adjusted result	125.0	319.4	9.5	-10.3	-202.9	240.7
Adjusting items	-2.5	-72.3	-102.3	-9.2	40.4	-145.9
Income tax expense	-36.7	-85.9	-4.8	12.8	85.9	-28.7
Result from continuing operations	85.8	161.2	-97.6	-6.7	-76.6	66.1
Of which Adjusted result	86.2	222.0	4.7	4.2	-105.5	211.6
Adjusting items	-0.4	-60.8	-102.3	-10.9	28.9	-145.5
Discontinued operations	-	-	-	-	-	-
RESULT FOR THE PERIOD	85.8	161.2	-97.6	-6.7	-76.6	66.1

Attributable to:	D'Ieteren Auto		Belron(*) Moleskine	Corp. & unallocated	Group
Equity holders of the Company(*)	85.8	84.6	-97.6	-6.7	66.1
Of which Adjusted result	86.2	116.5	4.7	4.2	211.6
Adjusting items	-0.4	-31.9	-102.3	-10.9	-145.5
Non-controlling interests	-	-	-	-	-
RESULT FOR THE PERIOD	85.8	84.6	-97.6	-6.7	66.1

(1) As restated to reflect the adjustment of the fair value of the contingent liability relating to the disposal in 2018 of the 40% stake of Belron to CD&R and, in the Belron segment, to present the net interest on long-term employee benefit asset as finance income rather than to separately present the interest income on plan assets as finance income and the interest cost on the defined benefit obligation as finance costs – see note 1 of the 2020 full-year results press release for more information on the restatement of comparative information.

(*) Belron at 52.48% (weighted average percentage for the 2019 period – see note 6 of the 2020 full-year results press release).

In both periods, the column "Eliminations" reconciles the segment statement of profit or loss (with the 12-month result of Belron presented on all lines under global integration method) to the IFRS Group consolidated statement of profit or loss (with the net result of Belron presented in the line "share of result of equity-accounted investees and long-term interest in equity-accounted investees, net of income tax", representing the share of the Group in the 12-month net result of Belron).

Explanations and details of the figures presented as adjusting items

In 2020 and 2019, the Group identified the following items as adjusting items throughout the four operating segments:

€m	2020
	D'Ieteren Auto		Belron		Moleskine		Corp. & unallocated	Total (segment)*
Adjusting items
Included in operating result	-46.9		-94.2		-22.0		0.7	-162.4
Re-measurements of financial instruments	-		-0.7	(c)	0.3	(i)	-	-0.4
Amortisation of customer contracts	-		-24.5	(d)	-		-	-24.5
Amortisation of brands with finite useful life	-		-3.7	(e)	-		-	-3.7
Impairment of goodwill and of non-current assets	-		-18.6	(f)	-21.0	(j)	-	-39.6
Other adjusting items	-46.9	(a)	-46.7	(g)	-1.3	(k)	0.7	-94.2
Included in net finance costs	-		-1.9		0.1		-	-1.8
Re-measurements of financial instruments	-		-		0.1	(i)	-	0.1
Other adjusting items	-		-1.9	(h)	-		-	-1.9
Included in equity accounted result	-1.3 (b)		-		-		-	-1.3
Included in segment result before taxes (PBT)	-48.2		-96.1		-21.9		0.7	-165.5

* Total of the adjusting items at the level of each segment. The adjusting items presented in the Belron segment should be deducted from this total to reconcile with the Group figures reported in the segment statement of profit or loss.

€m	2019(1)
	D'Ieteren Auto	Belron		Moleskine	Corp. & unallocated		Total (segment)*
Adjusting items
Included in operating result	-2.5	-67.5		-102.3	6.5		-165.8
Re-measurements of financial instruments	-	4.9	(c)	-	-		4.9
Amortisation of customer contracts	-	-12.2	(d)	-	-		-12.2
Amortisation of brands with finite useful life	-	-1.4	(e)	-	-		-1.4
Impairment of goodwill and of non-current assets	-	-21.3	(f)	-102.3	(j) -		-123.6
Other adjusting items	-2.5 (a)	-37.5	(g)	-	6.5	(l)	-33.5
Included in net finance costs	-	-4.8		-	-15.7		-20.5
Re-measurements of financial instruments	-	-		-	-15.7	(m)	-15.7
Other adjusting items	-	-4.8	(h)	-	-		-4.8
Included in equity accounted result	-	-		-	-		-
Included in segment result before taxes (PBT)	-2.5	-72.3		-102.3	-9.2		-186.3

Explanations and details of the figures presented as adjusting items (continued)

D'Ieteren Auto

(a) In the current period, other adjusting items in operating result (-€46.9m) mainly includes a charge of -€3.2m (-€2.5m in the prior period) in the framework of the "Market Area" project (optimization of the independent dealer network), costs of - €1.7m incurred in relation to the carve-out of the automobile distribution activities (D'Ieteren Auto) into new fully owned subsidiaries (up to the end of December 2020 D'Ieteren Auto's activities were included at D'Ieteren SA's level) and a provision of €41.0m (mainly severance costs) related to the finalization of the project carried out in 2020 by D'Ieteren Auto for the acceleration of the transformation of its activities in response to a rapidly changing market. This project entailed measures to adapt internal structures and working methods to the new market realities and transformed or ceased those activities that no longer met the needs of dealers or customers.
(b) In the current period, adjusting items included in equity-accounted result relates to the share of the Group's in the provision related to the project for accelerating the transformation of D'Ieteren Auto's activities (see (a) above).

Belron

(c) Fair value of fuel hedge instruments amounts to -€0.7m (€4.9m in the prior period) and arises from changes in the "clean" fair value of derivatives. Change in "clean" fair value of derivatives corresponds to the change of "dirty" fair value (i.e. the change of value between the opening and the end of the period) excluding the accrued cash flows of the derivatives that occurred during the period.
(d) In the framework of the recent acquisitions (mainly TruRoad acquired in August 2019 in the United States), certain customer contracts were recognised as intangible assets with a finite useful life. The amortisation amounts to -€24.5m (-€12.2m in the prior period).
(e)The amortisation of brands with finite useful lives (certain brands are no longer considered to be intangibles with indefinite useful lives since there is now a limit to the period over which these assets are expected to generate cash inflows) amounts to -€3.7m (-€1.4m in the prior period).
(f) In the current period, a total impairment charge of -€18.6m is recognized and relates to the write-down of assets classified as held for sale at the year end to reflect the disposal fair value, and other software write offs. At year-end, Belron undertook a full impairment review of all cash generating units in accordance with the requirements of IAS 36 and no impairments were booked as a result of this review.

In the prior period, a total impairment charge of -€21.3m was recognized in Italy (-€21.0m on goodwill, brands and other intangible assets) and in the Netherlands (-€0.3m on other intangible assets).

(g) In the current period, other adjusting items of -€46.7m include -€16.0m in relation to restructurings and integrations (mostly resulting from integration of US TruRoad acquisition in 2019 and restructuring costs in the US, Canada and Italy), and - €30.6m in relation to the disposal of several "other services" businesses in France, Belgium, Italy, United Kingdom and Canada. These disposal-related costs comprise provisions for restructuring, costs to sell and obligations in signed sale agreements. There are also assets impairments in relation to these disposals (see f) above).

In the prior period, other adjusting items of -€37.5m included -€30.7m in relation to restructurings and integrations (the majority of which was spent on the integration of the US TruRoad acquisition with some costs on Eurozone projects and restructurings), -€3.7m for acquisition costs and -€3.0m due to disposal costs.

(h) In the period, other adjusting items in net finance costs are mainly costs incurred to increase the amount of the committed syndicated revolving credit facility.

In the prior period, other adjusting items in net finance costs were costs incurred in relation to the additional financing undertaken in Q4 2019 (new 7-year Term Loan B of \$830m maturing in 2026 and "add-on-loan" to existing EUR Term Loan B of €100m maturing in 2024. Proceeds were used to pay a dividend to shareholders).

Moleskine

(i) In the period, a total amount of €0.4m (€0.3m in operating result and €0.1m in net finance costs) has been recognised to reflect the change in the fair value of a forward contract used to hedge transactional and financial exposure against the fluctuation of the USD.
(j) At half-year, an impairment charge of -€21.0m was recognized on the Moleskine cash-generating unit (fully allocated to goodwill) following the impairment calculation performed at half-year. The formal impairment review was performed at yearend in accordance with the requirements of IAS 36 and no additional impairment charge was booked as a result of this review. See specific information in note 4 of the financial highlights section. In the prior period, an impairment charge of - €102.3m was recognized and fully allocated to goodwill.
(k) In the period, other adjustingitems of -€1.3m mainly include sunk costs and severance costs.

Corporate & Unallocated

(l) In the prior period, the €6.5m adjustingitem in operating result related to the consolidated gain on the disposal of a property.

(m)In the prior period, the re-measurement of financial instruments represented the loss on the fair value of a contingent liability relating to the disposal of the 40% stake of Belron to CD&R. The re-measurement has been adjusted in the comparative information (refer to note 1 of the 2020 full-year results press release for more information).

Adjusted result before tax, Group's share (adjustedPBT, Group's share)

All results in both periods are on a post-IFRS 16 basis.

€m	2020					2019(1)
	D'Ieteren Auto	Belron	(53.75%) Moleskine	Corp. & unallocated	Total (segment)	D'Ieteren Auto	Belron	(52.48%) Moleskine	Corp. & unallocated	Total (segment)
Segment reported PBT	51.8	365.6	-35.4	-4.1	377.9	122.5	247.1	-92.8	-19.5	257.3
Less: Adjusting items in PBT	48.2	96.1	21.9	-0.7	165.5	2.5	72.3	102.3	9.2	186.3
Segment adjusted PBT	100.0	461.7	-13.5	-4.8	543.4	125.0	319.4	9.5	-10.3	443.6
Share of the group in tax on adjusted results of equity accounted investees	2.8	-	-	-	2.8	3.4	-	-	-	3.4
Share of non controlling interests in adjusted PBT	-	-213.5	-	-	-213.5	-	-151.8	-	-	-151.8
Segment adjusted PBT, Group's share	102.8	248.2	-13.5	-4.8	332.7	128.4	167.6	9.5	-10.3	295.2

In the period, the weighted average percentage used for computing the segment adjusted PBT, Group's share of Belron amounts to 53.75% (52.48% in the prior period).

All results in both periods are on a post-IFRS 16 basis.

€m			2020					2019(1)
	D'Ieteren Auto	Belron	(53.75%) Moleskine	Corp. & unallocated	Total (segment)	D'Ieteren Auto	Belron	(53.75%) Moleskine	Corp. & unallocated	Total (segment)
Segment adjusted PBT, Group's share	102.8	248.2	-13.5	-4.8	332.7	128.4	167.6	9.5	-10.3	295.2
Adjustment of the share of the Group (comparable basis with 2020)	-	-	-		-	-	4.1	-		4.1
Adjusted PBT, Group's share (key performance indicator)	102.8	248.2	-13.5	-4.8	332.7	128.4	171.7	9.5	-10.3	299.3

The column Belron has also been restated based on the weighted average percentage used for computing the segment adjusted PBT in 2020 (53.75% in 2020 vs 52.48% in 2019) to make both periods comparable.

Net debt

In order to better reflect its indebtedness, the Group uses the concept of net debt. This non-GAAP measure, i.e. its definition is not addressed by IFRS, is an Alternative Performance Measure ("APM") and is not presented as an alternative to financial measures determined in accordance with IFRS.

Net debt is based on loans and borrowings less cash, cash equivalents and non-current and current asset investments. It excludes the fair value of derivative debt instruments. The hedged loans and borrowings (i.e. those that are accounted for in accordance with the hedge accounting rules of IAS 39) are translated at the contractual foreign exchange rates of the related cross currency swaps. The other loans and borrowings are translated at closing foreign exchange rates.

€m	31 December 2020				31 December 2019 (1)
	D'Ieteren Auto	Belron	(100%) Moleskine	Corp. & unallocated	D'Ieteren Auto	Belron	(100%) Moleskine	Corp. & unallocated
Non-current loans and borrowings	17.9	2,812.3	62.9	4.7	8.4	3,055.8	121.1	4.9
Current loans and borrowings	3.2	179.3	14.2	0.5	5.7	207.6	40.3	0.5
Inter-segment financing	202.6	-	253.9	-456.5	-	-	190.8	-190.8
Adjustment for hedged borrowings	-	26.9	-	-	-	-1.7	-	-
Gross debt		223.7 3,018.5	331.0	-451.3		14.1 3,261.7	352.2	-185.4
Less: Cash and cash equivalents	-56.0	-617.8	-30.2	-265.1	119.6	-282.6	-55.2	-731.9
Less: Current financial assets	-	-	-	-737.2	-	-	-	-597.8
Less: Other non-current receivables	-	-	-	-1.5	-	-	-	-1.3
Net debt from continuing activities excluding assets and liabilities classified as held for sale		167.7 2,400.7	300.8	-1,455.1		133.7 2,979.1	297.0	-1,516.4
Net debt in assets and liabilities classified as held for sale	-	12.3	-	-	-	-	-	-
Total net debt		167.7 2,413.0	300.8	-1,455.1		133.7 2,979.1	297.0	-1,516.4

(1) As restated, in the Corporate & unallocated segment, to reflect the reclassification of €54,4m from "Cash and cash equivalent" to "Current financial assets" in the framework of continuous improvement of the financial reporting presentation.

In both periods, the inter-segment loans comprise amounts lent by the Corporate department to the Moleskine segment (nonrecourse loan, increased by €63.1m during the period – of which €55.2m are an increase of the nominal loan and €7.9m are capitalized interests) and, in the current period, to the D'Ieteren Auto segment, at arm's length conditions.

D'Ieteren Auto's net debt reached €167.7m at the end of December 2020 (€133.7m at the end of December 2019). The increase of €34.0m on the year-end net debt mainly reflects the new €200m inter-segment financing put in place during the first semester of the year, partially offset by the positive free cash flow generation during the period thanks to the cash inflow from working capital (€158.9m) despite reduction of the EBITDA. Under IFRS 16, €20.6m of lease liabilities are recognised on the balance sheet and therefore included in the net debt calculation (€13.5m at the end of December 2019).

Belron's net financial debt reached €2,413.0m at the end of December 2020. This compares with €2,979.1m at the end of December 2019. The decrease of €566.1m on the year-end net debt is primarily the result of strong cash generation during the year as a result of actions taken by Belron amid COVID-19 crisis and the strong recovery of the business.

Under IFRS 16, €580.6m of lease liabilities are recognised on the balance sheet and therefore included in the net debt calculation (€654.7m at the end of December 2019).

Moleskine's net debt reached €300.8m (of which €253.9m of inter-segment financing) at the end of December 2020 (€297.0m at the end of December 2019, of which €190.8m of inter-segment financing). Moleskine operated a refinancing of its existing debt at the end of December 2020 with a new €53m bank term loan maturing in December 2023 (with possible extension) and an additional €55m in shareholder loan. Under IFRS 16, €24.8m of lease liabilities are recognised on the balance sheet and therefore included in the net debt calculation (€29.5m at the end of December 2019).

The net cash position of the Corporate & unallocated segment decreased from €1,516.4m to €1,455.1m at 31 December 2020 mainly as a result of the purchase, in February 2020, of €150m of Belron's preference shares previously held by CD&R, the settlement of the financial contingent liability (€31.9m) towards CD&R, the purchase of treasury shares (€24.4m), the payment in June 2020 of the dividend (€53.9m) to the shareholders of D'Ieteren, partially offset by the dividend received from D'Ieteren Auto (€200m).

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D'Ieteren Group

3937_er_2021-03-08_194b8cbb-a681-45e4-b78c-9107f1a73c24.pdf

2020Full-Year results Solid results driven by a record year at Belron and a resilient Auto business

Full-year 2020 highlights

Outlook 2021

Key developments

Group Summary

Evolution of the adjustedconsolidated profit before tax, Group's share1 (€m)

Belron

Sales and results

Sales

Results

Net debt and free cash flow

D'Ieteren Automotive

Activities and results

Market and deliveries

Sales

Results

Net debt and free cash flow

Moleskine

Sales

Sales evolution by region:

Sales evolution by channel:

Results

Net debt and free cash flow

Corporate and unallocated

Results

Net cash

Notes

Auditor's Report

Forward looking statements

Conference Call

D'Ieteren Group profile

Financial Calendar

Contacts

Financial Highlights 2020

Consolidated Statement of Profit or Loss

Year ended 31 December

Consolidated Statement of Comprehensive Income

Year ended 31 December

Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Year ended 31 December

Consolidated Statement of Cash Flows (cont'd)

Note 1: General information

Restatement of comparative information

COVID-19

Note 1: General information (continued)

Brexit

Alternative Performance Measurement – Non-GAAP measurement

Note 2: Segment information

Segment Statement of Profit or Loss - Operating Segments (Year Ended 31 December)

Segment Statement of Profit or Loss - Operating Segments (Year Ended 31 December)

Segment Statement of Financial Position - Operating Segment

Segment Statement of Financial Position - Operating Segment

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December)

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December – continued)

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December)

Segment Statement of Cash Flows - Operating Segments (Year Ended 31 December – continued)

Note 3: Revenue

Note 4: Impairment

Note 5: Earnings per share

Note 6: Equity-accounted investees

Belron

Note 6: Equity-accounted investees (continued)

D'Ieteren Auto

Note 6: Equity-accounted investees (continued)

Note 7: Income tax expense

Alternative Performance Measurement (APM) ---Non-Gaap Measurement

Framework and definitions

Presentation of APMs in the segment statement of profit or loss for the year ended 31 December

Explanations and details of the figures presented as adjusting items

Explanations and details of the figures presented as adjusting items (continued)

D'Ieteren Auto

Belron

Moleskine

Corporate & Unallocated

Adjusted result before tax, Group's share (adjustedPBT, Group's share)