Immobel NV

Quarterly Report • Sep 15, 2023

AS AT 30 JUNE 2023

CONTENTS

I.		Intermediate Report1
II.	Interim management report2
	A.	Highlights	2
	B.	Project overview	5
III.		Interim condensed consolidated financial statements8
	A.	Condensed consolidated statement of profit and loss and other comprehensive income (in thousand EUR)	8
	B.	Condensed consolidated statement of the financial position (in thousand EUR)	9
	C.	Condensed consolidated statement of cash flow (in thousand EUR)10
	D.	Condensed consolidated statement of changes in equity (in thousand EUR)11
	E.	Notes to the interim condensed consolidated financial statements 12
IV.		Managers' statement37
V.		Auditor's report 38

II. Interim management report

A. Highlights

IMMOBEL HALF-YEAR RESULTS 2023 IMMOBEL NAVIGATES TURBULENT MARKET

Amid considerable geopolitical and macroeconomic turbulence, alongside a cooldown observed in global real estate markets, Immobel continues to navigate steadily in the evolving market landscape.

• Macroeconomic conditions remained challenging in the first half of 2023, with inflation still high and interest rates continuing to climb.
• These factors led to tightening lending standards and increased financing costs in the global real estate market, resulting in a significant drop in global transaction volumes. However, at the same time, in most European cities, the fundamentals for residential real estate and prime offices with supply and demand in structural imbalance continue to be healthy.
• Despite these macroeconomic headwinds and persisting market pressures, Immobel is navigating these challenges confidently. While the Belgian residential market is cooling down, Immobel's Belgian residential sales have been performing relatively well – other residential markets are more challenging. Also, although the institutional investment market for offices is in a "wait-and-see" mode, Immobel's green offices in prime locations have been gaining momentum in terms of rental activity. Companies continue to gravitate to high-end spaces to create positive employee work experiences and meet heightened sustainability standards.
• In the first half of 2023, underlying net result1 reached EUR 6.5 million and net result EUR -2.8 million. This decline in net result was anticipated and can be primarily attributed to the one-time cost linked to the strategic cost cutting measures taken at the end of 2022.
• Immobel took several strategic measures at the end of 2022 to emphasise its shift from growth to operational excellence. It decided to shift its focus from the development of small residential projects in the suburban areas of Paris to the development of mixed-use projects in the centre of Paris and moved Immobel Capital Partners, its real estate investment management activity, from London to Brussels. This led to a 30% reduction in annual overhead costs, cutting them from EUR 50 million to EUR 35 million. However, these actions incurred a one-time cost of EUR 9.3 million during the first half of 2023, impacting the net result.
• Immobel maintains a solid balance sheet and liquidity position. The slight increase in its gearing ratio² to 58.5% can be mainly attributed to specific completed office projects held in its portfolio, namely Multi (Brussels), Cala (Liège), Central Point (Warsaw), and White Rose Park (Leeds). However, this increase remains well managed owing to EUR 16 million3 of indexed rental income generated by these offices through long-term leases. Moreover, Immobel uses various types of instruments e.g. interest-rate swaps to hedge its exposure to variable interest rates, bringing the average cost of debt

¹ Net profit group share excluding one-time exceptional cost.

² Gearing ratio is calculated by dividing net debt by the sum of net debt and equity group share

³ Immobel share

to 3% over the first half of 2023. Finally, Immobel has always recorded its assets at cost in its balance sheet, reducing the risk of book value impairments when markets suffer.

• Immobel witnessed an improvement in obtaining permits for its projects. To date, it has obtained final permits for EUR 311 million in total gross development value⁴ (GDV), including the prime location projects OXY (70,000 m²) and The Muse5 (9,000 m²) in Brussels. Immobel's total GDV remained stable at EUR 5.7 billion.

Business update | Challenging market conditions

The residential markets in Immobel's core countries are under pressure, mainly due to rising mortgage rates. However, considering this challenging market environment, Immobel's Belgian residential sales are doing relatively well. We successfully launched The Commodore (115 housing units) in Brussels and the second phase of Ilôt Saint-Roch (291 housing units) in Nivelles.

Sales of residential projects have significantly slowed down in France, Luxembourg, and Germany. Although the developments in these markets are mostly sold out, i.e. 86% sold, we are experiencing a significant slowdown in sales. Granary Island (652 housing units) in Gdansk, Poland has been entirely sold.

The institutional investment market for offices is at a standstill. However, Immobel's completed and unsold office buildings are almost fully leased (i.e., Multi (Brussels), Cala (Liège), Central Point (Warsaw), and White Rose Park (Leeds)). They are generating steady rental income, bringing Immobel EUR 16 million in rental income annually. Furthermore, indexation of those rents plays a key role in countering rising yields.

Permitting | New permits obtained for key projects

In the first half of 2023, final permits were obtained for new projects with a total GDV (Gross Development Value) of EUR 311 million.

Immobel has obtained final permits to transform the former Centre Monnaie in the centre of Brussels into a 70,000 m² sustainable mixed-use complex called OXY. Immobel (on behalf of Immobel Belux Office Development Fund) obtained final permits for The Muse, a sustainable office development of 9,000 m² at a prime location in the centre of Brussels, and Saint-Honoré, a mixed-use commercial and office building of approximately 2,700 m² in Rue Saint-Honoré in the 8th arrondissement of Paris. We received final permits for our Immobel Home projects, Domaine du Fort near Liège (13,000 m²) and a new residential neighbourhood in Tielt (29,000 m²). Permits were also obtained for Brouck'R in Brussels (37,000 m²) and both Le Pacifique Issy-Les-Moulineaux (4,000 m²) and Tati Barbès, in Paris (7,980 m²).

In the first half of 2023, Immobel submitted permit applications mainly for Lebeau in Brussels (36,000 m²) and Kiem in Luxembourg (23,460 m²). Kiem is the first real estate project designed in a "circular" approach in Kirchberg. It is the result of a public-private partnership comprising Fonds Kirchberg, among others. The complex will offer 148 quality apartments, mostly affordable housing units, in four apartment buildings.

Sustainability and corporate social responsibility

After the gap analysis conducted in Q4 2022, Immobel implemented its action plan to become fully compliant with the EU Corporate Sustainability Reporting Directive (CSRD) by the end of 2024 in the first

⁴ Gross development value: total expected future turnover (group share) of a project or all projects in the current portfolio (including projects subject to conditions precedent for which the management judges there is a high likelihood of closing

⁵ Owned by Immobel Belux Office Development Fund

half of 2023, one year ahead of the deadline. An assessment of risks and opportunities (financial materiality) as well as the impact we have on society and the environment (impact materiality) has started, based on interviews with key stakeholders.

Our approach regarding ESG led to an award from the Brussels Region for our OXY development, where renovation work started this Summer. At the same time, our own headquarters, Multi, is nominated for the European Awards for Excellence from Urban Land Institute. These projects stand out because of keeping a high proportion of the existing buildings, re-use of materials on site, a fully decarbonised energy concept and a public engagement toward the surrounding pedestrian zone with active ground floors, a green, public walkway and public equipment.

Immobel team and transition

Immobel is known to have and provide the real estate market with the best talent. Its Immobel Academy rigorously follows and stimulates upcoming talent. Our efforts to keep these talented people within our company are working. Our cohesive and motivated Executive Committee is composed of home-grown talent and shares the values, the principles and the excellence Immobel has put in place since the merger. The Board has full confidence in its capacity to navigate this period of volatile markets. Adel Yahia, who will be the successor of our CEO Marnix Galle as of 2025, has taken over the Group supporting divisions while navigating well his native Belgian and Luxembourg waters. Next to that, Marnix has been devolving international responsibilities to our new Exco member Olivier Thiel, who proves that young knives cut better. The two other members of the Exco, Stephanie De Wilde and Karel Breda, are operating at excellent pace and content. These new leaders are equipped and motivated to serve Immobel in the next decade. Younger high potentials throughout the company are getting their shot at next level responsibilities, which allows them to remain motivated and within our company.

B. Project overview

Overview of the main projects in the Immobel Group portfolio as at 30 June 2023 (in order of the project's surface area).

Belgium

Project	Surface (x1000 m²)	Location	Use	Construction	Completion	Share Immobel
Slachthuissite	240	Antwerp	Residential	Q2 2022	2030+	30%
Proximus	119	Brussels	Mixed	Q2 2024	Q1 2027	100%
Oxy	71	Brussels	Mixed	Q1 2024	Q1 2027	50%
Universalis Park 3	68	Brussels	Mixed	Q4 2028	2030+	50%
Key West	61	Brussels	Mixed	Q2 2024	Q4 2028	50%
Panorama	TBD	Brussels	Mixed	Q3 2020	2030+	40%
Ciney	47	Ciney	Residential	Q1 2025	2030+	100%
Multi	46	Brussels	Offices	Q1 2019	Q1 2022	50%
Lebeau	39	Brussels	Mixed	Q4 2024	Q4 2026	100%
Brouck'R	37	Brussels	Mixed	Q2 2024	Q3 2026	50%
Universalis Park 2	34	Brussels	Residential	Q2 2024	Q2 2028	50%
Isala	33	Brussels	Mixed	Q3 2024	Q2 2026	76%
Ilôt Saint-Roch	32	Nivelles	Residential	Q1 2022	Q2 2026	100%
Lalys	31	Astene	Residential	Q3 2020	Q3 2026	100%
Eghezée	30	Eghezée	Residential	Q2 2024	Q3 2029	100%
't Park	27	Tielt	Residential	Q1 2023	Q3 2028	100%
O'Sea (phase 3)	24	Ostend	Residential	Q2 2022	Q1 2025	100%
O'Sea (phase 2)	24	Ostend	Residential	Q3 2019	Q4 2022	100%
Cala	20	Liège	Offices	Q3 2018	Q4 2020	30%
Beveren	15	Beveren	Residential	Q1 2025	Q1 2027	50%
Domaine du Fort	15	Barchon	Residential	Q3 2020	Q1 2026	100%
The Commodore	12	Brussels	Residential	Q4 2023	Q1 2026	100%
The Muse	9	Brussels	Offices	Q1 2024	Q1 2025	20%
Les Cinq Sapins	9	Wavre	Residential	Q1 2019	Q1 2024	100%
Héros	4	Brussels	Residential	Q4 2022	Q1 2025	100%

France

Project	Surface (x1000 m²)	Location	Use	Construction	Completion	Share Immobel
Rueil-Malmaison	27	Rueil Malmaison	Mixed	TBD	TBD	100%
Aubervilliers Zac Du Fort Îlot A	18	Aubervilliers	Residential	Q4 2021	Q4 2024	50%
Savigny – Sur – Orge -17/27 Rue Chateaubriand	14	Savigny-sur orge	Residential	Q4 2021	Q3 2024	100%
Aubervilliers Zac Du Fort Îlot B	9	Aubervilliers	Residential	Q4 2021	Q2 2024	50%
Paris 14 / Montrouge	9	Paris	Offices	Q3 2025	Q2 2027	100%
Tati	8	Paris	Mixed	Q1 2024	Q4 2025	100%
Bussy St Georges Golf	7	Bussy saint georges	Residential	Q2 2022	Q3 2024	100%
Richelieu	6	Paris	Offices	Q2 2024	Q4 2025	10%
Osny - 1 Rue De Cergy	6	Osny	Residential	Q3 2022	Q3 2025	60%
Avon - 29 Bis Avenue Du Général De Gaulle	5	Avon	Residential	Q3 2022	Q4 2024	100%
Bondy Canal	5	Bondy	Residential	TBD	TBD	40%
Montevrain - 144 Av T De Champagne	5	Montevrain	Residential	Q3 2021	Q4 2023	100%
Paris 19 - Buttes Chaumont	5	Paris	Residential	TBD	TBD	100%
Saint-Antoine	5	Paris	Mixed	Q4 2022	Q3 2024	100%
Nanterre - 48 Boulevard De Pesaro	4	Nanterre	Residential	TBD	TBD	100%
Issy Les Moulineaux	4	Issy les moulineaux	Residential	TBD	TBD	100%
Othis - La Jalaise	4	Othis	Residential	Q3 2022	Q3 2024	100%
St Honoré	3	Paris	Mixed	Q1 2023	Q3 2024	10%
Montlhery 2 - Ch Des Poutils / Route D'Orléans	2	Montlhery	Residential	Q1 2023	Q1 2025	20%

Luxembourg

Project	Surface (x1000 m²)	Location	Use	Construction	Completion Share	Immobel
Kiem	32	Luxembourg	Mixed	Q3 2024	Q3 2027	70%
Polvermillen	27	Luxembourg	Mixed	Q4 2025	Q3 2028	100%
Schoettermarial	22	Luxembourg	Mixed	Q1 2027	Q2 2029	50%
Liewen	14	Mamer	Residential	Q3 2022	Q4 2027	100%
Livingstone - Lot1	13	Luxembourg	Mixed	Q3 2020	Q2 2023	33%
Total (Gasperich)	12	Luxembourg	Residential	Q1 2026	Q3 2027	100%
Cat Club (Rue de Hollerich)	11	Luxembourg	Mixed	Q3 2027	2030+	100%
River Place	8	Luxembourg	Mixed	Q2 2025	Q2 2027	100%
Godbrange	7	Godbrange	Residential	Q4 2025	Q1 2027	100%
Canal 44	6	Esch-sur Alzette	Residential	Q2 2021	Q1 2025	100%
Thomas	6	Strassen	Offices	Q3 2027	Q1 2029	100%
Nova	4	Luxembourg	Offices	Q1 2021	Q2 2023	100%
Scorpio	4	Luxembourg	Offices	Q4 2025	Q1 2028	20%

Poland

Project	Surface (x1000 m²)	Location	Use	Construction	Completion	Share Immobel
Granary Island	76	Gdansk	Mixed	Phase 1: Q1 2017 Phase 2: Q2 2019	Phase 1: Q4 2019 Phase 2: Q3 2024	90%
Central Point	28	Warsaw	Offices	Q2 2018	Q4 2021	50%

Germany

Project	Surface (x1000 m²)	Location	Use	Construction	Completion	Share Immobel
Gutenberg	25	Berlin	Mixed	Q1 2025	Q1 2027	100%
Eden	20	Frankfurt	Residential	Q3 2019	Q2 2023	100%

Spain

Project	Surface (x1000 m²)	Location	Use	Construction	Completion	Share Immobel
Four Seasons Marbella Resort	72	Marbella	Leisure	Q1 2025	2030+	50%

III. Interim condensed consolidated financial statements

A. Condensed consolidated statement of profit and loss and other comprehensive income (in thousand EUR)

	NOTES	30-06-23	30-06-22
OPERATING INCOME		83 638	130 795
Revenues	7	79 086	124 614
Rental income	8	2 569	4 872
Other operating income	9	1 983	1 308
OPERATING EXPENSES		-85 459	-117 745
Cost of sales	10	-67 579	-103 637
Cost of commercialisation		- 19	- 184
Administration costs	11	-17 861	-13 924
OPERATING PROFIT		-1 820	13 050
JOINT VENTURES AND ASSOCIATES		1 359	1 212
Share of result of joint ventures and associates, net of tax	12	1 359	1 212
OPERATING PROFIT AND SHARE OF RESULT OF ASSOCIATES AND JOINT VENTURES, NET OF TAX		- 461	14 262
Interest income		3 796	2 187
Interest expense		-4 272	-3 644
Other financial income		1 311	116
Other financial expenses		-1 523	-2 729
NET FINANCIAL COSTS	13	- 688	-4 070
PROFIT BEFORE TAXES		-1 149	10 192
Income taxes	14	-1 506	-1 293
PROFIT OF THE PERIOD		-2 655	8 899
Share of non-controlling interests		136	- 240
SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY		-2 791	9 139
PROFIT FOR THE PERIOD		-2 655	8 899
Other comprehensive income - items that are or may be reclassified subsequently to profit or loss		5 255	1 690
Currency translation		226	- 204
Cash flow hedging		5 029	1 894
TOTAL OTHER COMPREHENSIVE INCOME		5 255	1 690
COMPREHENSIVE INCOME OF THE PERIOD		2 600	10 589
Share of non-controlling interests		- 211	102
SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY		2 811	10 487
EARNINGS PER SHARE (€) (BASIC/ DILUTED)	10	-0,28	0,92

B. Condensed consolidated statement of the financial position (in thousand EUR)

ASSETS	NOTES	30-06-23	31-12-22
NON-CURRENT ASSETS		373 341	362 294
Intangible assets		1 573	1 357
Property, plant and equipment		3 650	4 122
Right-of-use assets	16	8 655	9 937
Investment property	17	66 990	67 686
Investments in joint ventures and associates	18	148 237	144 891
Advances to joint ventures and associates	18	116 022	111 527
Deferred tax assets	19	23 529	21 733
Other non-current financial assets		3 479
Cash guarantees and deposits		1 207	1 041
CURRENT ASSETS		1 322 867	1 385 733
Inventories	20	1 047 330	985 726
Trade receivables	21	21 019	17 591
Contract assets	22	24 135	42 148
Income Tax receivables		264	988
Prepayments and other receivables	23	47 157	56 217
Advances to joint ventures and associates	18	8 821	3 450
Other current financial assets		5 781	3 687
Cash and cash equivalents	24	168 360	275 926
TOTAL ASSETS		1 696 208	1 748 027

EQUITY AND LIABILITIES	NOTES	30-06-23	31-12-22
TOTAL EQUITY		544 941	573 140
EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY		528 609	556 552
Share capital		97 257	97 257
Retained earnings		428 905	456 249
Reserves		2 448	3 046
NON-CONTROLLING INTERESTS		16 332	16 588
NON-CURRENT LIABILITIES		680 567	744 480
Employee benefit obligations		567	567
Deferred tax liabilities	19	23 834	21 136
Financial debts	24	656 166	722 777
CURRENT LIABILITIES		470 700	430 408
Provisions		4 222	3 829
Financial debts	24	258 752	179 723
Trade payables	25	66 452	98 384
Contract liabilities	26	70 276	51 485
Income Tax liabilities		1 763	13 057
Social debts, VAT and other tax payables		16 550	20 021
Accrued charges and other amount payable		21 143	34 339
Advances from joint venture and associates	18	31 542	29 570
TOTAL EQUITY AND LIABILITIES		1 696 208	1 748 027

C. Condensed consolidated statement of cash flow (in thousand EUR)

	NOTES	30/06/2023	30/06/2022
Operating income		83 638	130 795
Operating expenses		-85 459	-117 745
Amortisation, depreciation and impairment of assets 11		2 297	2 371
Change in provisions		438	567
CASH FLOW FROM OPERATIONS BEFORE CHANGES IN WORKING CAPITAL		914	15 988
Change in working capital 28		-61 128	-29 858
CASH FLOW FROM OPERATIONS BEFORE PAID TAXES		-60 214	-13 870
Paid taxes 14		-13 177	-2 332
CASH FROM OPERATING ACTIVITIES		-73 391	-16 202
Acquisitions of intangible, tangible and other investments		-1 338	-3 034
Sale of intangible, tangible and other investments		364	27
Repayment of capital and advances by joint ventures 18		10 789	105 685
Acquisitions, capital injections and loans to joint ventures and associates 18		-29 605	-144 596
Dividends received from joint ventures and associates 18		7 928	45 501
Interests received 13		3 796	2 187
CASH FROM INVESTING ACTIVITIES		-8 066	5 770
Proceeds from financial debts 24		100 742	234 217
Repayment of financial debts 24		-87 108	-195 180
Paid interests 13		-9 329	-8 061
Proceeds from sale of treasury shares			68
Gross dividends paid		-30 414	-30 409
CASH FROM FINANCING ACTIVITIES		-26 109	635
NET INCREASE OR DECREASE (-) IN CASH AND CASH EQUIVALENTS		-107 566	-9 797
CHANGE OF SCOPE OR CONSOLIDATION METHOD
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF PERIOD		275 926	273 377
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD		168 360	263 580

D. Condensed consolidated statement of changes in equity (in thousand EUR)

	CAPITAL	RETAINED EARNINGS	ACQUISITION RESERVE	TREASURY SHARES RESERVE	CURRENCY TRANSLATION RESERVE	ACCUMULATED ACTUARIAL GAINS AND LOSSES	HEDGING RESERVES	EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY	NON CONTROL LING INTERESTS	TOTAL EQUITY
2023
Balance as at 01-01-2023	97 256	329 163	124 869	-1 137	2 704	545	3 152	556 552	16 588	573 140
Result for the period		-2 791						-2 791	136	-2 655
Other comprehensive income		- 846			247		6 201	5 602	- 347	5 255
Comprehensive income for the period		-3 637			247		6 201	2 811	- 211	2 600
Dividends and other beneficiaries paid		-30 414						-30 414	- 42	-30 456
Other changes		- 339						- 339	- 3	- 342
Transactions with owners of the company		-30 753						-30 753	- 45	-30 798
Changes in the period		-34 391			247		6 201	-27 942	- 256	-28 198
Balance as at 30-06-2023	97 256	294 772	124 869	-1 137	2 951	545	9 353	528 609	16 332	544 941

	CAPITAL	RETAINED EARNINGS	ACQUISITION RESERVE	TREASURY SHARES RESERVE	CURRENCY TRANSLATION RESERVE	ACCUMULATED ACTUARIAL GAINS AND LOSSES	HEDGING RESERVES	EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY	NON CONTROL LING INTERESTS	TOTAL EQUITY
2022
Balance as at 01-01-2022	97 256	349 109	124 869	-1 204	1 326	434	- 223	571 567	11 352	582 919
Result for the period		9 139						9 139	- 240	8 899
Other comprehensive income		- 204			- 299		1 851	1 348	342	1 690
Comprehensive income for the period		8 935			- 299		1 851	10 487	102	10 589
Transactions on treasury shares		- 73		68				- 5		- 5
Dividends and other beneficiaries paid		-30 409						-30 409		-30 409
Scope changes		- 457						- 457	528	71
Other changes		- 27		- 1				- 28		- 28
Transactions with owners of the company		-30 966		67				-30 899	528	-30 371
Changes in the period		-22 031		67	- 299		1 851	-20 412	630	-19 782
Balance as at 30-06-2022	97 256	327 078	124 869	-1 137	1 027	434	1 628	551 155	11 982	563 137

As approved by the General Meeting of 9 May 2023 a gross dividend of EUR 30 414 thousand (or EUR 3.05 per share excluding treasury shares) has been paid out to the shareholders. The share capital of Immobel SA is represented by 9 997 356 ordinary shares, including 25 434 treasury shares.

As at 30 June, 2023, no treasury shares have been sold during the current year.

In accordance with IAS 32, these treasury shares are deducted from equity. These treasury shares have neither voting rights nor dividend rights.

On 30 June 2023 the treasury shares, resulting from the merger with ALLFIN, remain valued at the share price on 29 June 2016, which was the date of the merger.

The acquisition reserve was generated by the merger between ALLFIN and IMMOBEL on 29 June 2016 and remains unchanged since then.

The currency translation adjustments are related to Polish entities for which the functional currency is PLN and to British entities for which the functional currency is GBP.

E. Notes to the interim condensed consolidated financial statements

Note 1. Basis of preparation

Immobel ("the Company") is incorporated in Belgium and its shares are publicly traded (Euronext – IMMO). The interim condensed consolidated financial statements of the Group comprise the Company, its subsidiaries, and the Group's interest in associates and joint arrangements (referred to as "The Group"). The Group is active in the real estate development business, with activities in Belgium, France, Luxemburg, Germany, Poland, Spain and the United Kingdom.

The interim condensed consolidated financial statements as at and for the six months ending 30 June 2023 have been prepared in accordance with accounting standard IAS 34, Interim Financial Reporting, as adopted in the European Union. They should be read in conjunction with the Group's latest annual consolidated financial statements as at and for the year ending 31 December 2022 ('latest annual financial statements'). They do not include all the information required for a complete set of financial statements prepared in accordance with IFRS Standards. However, selected explanatory notes are included to explain events and transactions that are important for understanding the changes in the Group's financial position and performance since the last annual financial statements.

These interim financial statements were authorised for issue by the Company's Board of Directors on 14 September 2023.

Note 2. Accounting principles and methods

Except as described below, the accounting policies applied in these interim financial statements are the same as those applied in the Group's consolidated financial statements as at and for the year ending 31 December 2022.

Standards and interpretations applicable for the year beginning on or after 1 January 2023

A number of new accounting standards and amendments to accounting standards are effective for annual periods beginning after 1 January 2023. There are no new or amended standards or interpretations that are effective for the first time for the interim report for the six month period ended June 30, 2023 that had a significant impact on the condensed consolidated interim financial statements.

The Group has not early adopted any of the forthcoming new or amended accounting standards in preparing these condensed consolidated interim financial statements .The Group is also not planning on early adopting the new or amended accounting standards and the impact of the initial application is not expected to be material.

Amendments to IAS 1 Presentation of Financial Statements:

• Classification of Liabilities as Current or Non-current Date (issued on 23 January 2020);
• Classification of Liabilities as Current or Non-current Deferral of Effective Date (issued on 15 July 2020); and
• Non-current Liabilities with Covenants (issued on 31 October 2022)

Amendments to IAS 1 Presentation of Financial statements: Classification of Liabilities as Current or Noncurrent, issued on 23 January 2020, clarify a criterion in IAS 1 for classifying a liability as non-current: the requirement for an entity to have the right to defer settlement of the liability for at least 12 months after the reporting period.

The amendments:

• specify that an entity's right to defer settlement must exist at the end of the reporting period;
• clarify that classification is unaffected by management's intentions or expectations about whether the entity will exercise its right to defer settlement;
• clarify how lending conditions affect classification; and
• clarify requirements for classifying liabilities an entity will or may settle by issuing its own equity instruments.

On July 15, 2020, the IASB issued Classification of Liabilities as Current or Non-current — Deferral of Effective Date (Amendment to IAS 1) deferring the effective date of the January 2020 amendments with one year.

On October 31, 2022, the IASB issued Non-current liabilities with Covenants, which amends IAS 1 and specifies that covenants (i.e. conditions specified in a loan arrangement) to be complied with after the reporting date do not affect the classification of debt as current or non-current at the reporting date. Instead, the amendments require a company to disclose information about these covenants in the notes to the financial statements.

All of the amendments are effective for annual reporting periods beginning on or after 1 January 2024, with early adoption permitted. The amendments have not yet been endorsed by the EU.

Amendments to IFRS 16 Leases: Lease Liability in a Sale and Leaseback, issued on 22 September 2022, introduce a new accounting model which will impact how a seller-lessee accounts for variable lease payments in a sale-and-leaseback transaction.

Under this new accounting model for variable payments, a seller-lessee will:

• include estimated variable lease payments when it initially measures a lease liability arising from a sale-and-leaseback transaction; and
• after initial recognition, apply the general requirements for subsequent accounting of the lease liability such that it recognizes no gain or loss relating to the right of use it retains.

These amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction.

The amendments apply retrospectively for annual periods beginning on or after 1 January 2024 with early application permitted. These amendments have not yet been endorsed by the EU.

Amendments to IAS 12 Income taxes: International Tax Reform – Pillar Two Model Rules, issued 23 May 2023, provide a temporary mandatory relief from accounting for deferred tax that arises from legislation implementing the GloBE model rules. Under the relief, companies are effectively exempt from providing for and disclosing deferred tax related to top-up tax. However, they need to disclose that they have applied the relief. The relief is effective immediately and applies retrospectively. It will apply until the IASB decides either to remove it or to make it permanent.

The amendments also require new disclosures once tax law is enacted but before top-up tax is effective and after top-up tax is effective. These new disclosures apply from 31 December 2023. The amendments do not introduce new disclosure requirements in the financial statement in interim periods ending on or before 31 December 2023.

These amendments have not yet been endorsed by the EU.

Amendments to IAS 7 Statement of Cash Flows and IFRS 7 Financial Instruments: Disclosures: Supplier Finance Arrangements, issued on 25 May 2023, introduce additional disclosure requirements for companies that enter into supplier finance arrangements. The amendments are effective for periods beginning on or after 1 January 2024, with early application permitted. However, some relief from providing certain information in the year of initial application is available. These amendments have not yet been endorsed by the EU.

The process of determining the potential impacts of these standards and interpretations on the consolidated financial statements of the Group is ongoing. The group does not expect any significant changes resulting from the application of these standards.

Note 3. Main judgements and main sources of uncertainties related to the estimations

The main accounting judgements and estimates as at 30 June 2023 are identical to those given on page 202 (Consolidated Accounts) of the Annual Report 2022. They mainly concern investment properties, deferred tax assets and inventories. Each of these items is addressed in this report under notes 15, 17 and 18 respectively.

Note 4. Main risks and uncertainties

The Immobel Group faces the risks and uncertainties inherent in the property development sector as well as those associated with the general economic and financial climate.

The Board of Directors believes that the main risks and uncertainties included on page 177 and following (Management Report) of the Annual Report 2022 and page 202 are still relevant for the remaining months of 2023.

Note 5. Scope of consolidation

The number of entities included in the scope of consolidation evolves as follow s:		31/12/2022
Subsidiaries - Integral consolidation	158	160
Joint Ventures - Equity method	51	50
Associates - Equity method	8	8
TOTAL	217	218

The following changes have been noted during the first half of 2023:

Entries in the scope of consolidation:

• Kiem 2050 S.à r.l., 70% owned (joint control with partner as per shareholders agreement)

Exit from the scope of consolidation:

• Immobel Carry LP, previously 90% owned
• Immobel GP (Scotland) Ltd, previously 90% owned

Note 6. Operating segment – Financial information by geographical segment

The segment reporting is presented based on the operational segments used by the Board of Directors to monitor the financial performance of the Group, being the geographical segments (by country). The choice made by the Board of Directors to focus on geographical segment rather than on other possible operating segments is motivated by local market characteristics (customers, product, regulation, culture, local network, political environment, etc.) as being the key business drivers.

The core business of the Group, real estate development, is carried out in Belgium, Luxemburg, France, Germany, Poland, Spain and the United Kingdom.

The breakdown of sales by country depends on the country where the activity is carried out.

The results and asset and liability items of the segments include items that can be attributed to a segment, either directly, or allocated through an allocation formula.

In accordance with the IFRS, the Company has been applying IFRS 11 since 1 January 2014, which substantially amends the reading of the Company's financial statements, but does not change the net income and shareholders' equity. However, the Board of Directors believes that the financial data in application of the proportional consolidated method (before IFRS 11) gives a better picture of the activities and financial statements. Therefore, the information reported to the Board of Directors and presented below includes the Group's interest in associates and joint ventures based on the proportionate consolidation method.

INCOME STATEMENT EUR ('000)	30/06/2023	30/06/2022
OPERATING INCOME	111 696	154 262
Revenues	99 733	142 644
Rental income	9 165	7 721
Other operating income	2 798	3 897
OPERATING EXPENSES	-107 206	-137 702
Cost of sales	-86 949	-120 827
Cost of commercialisation	- 18	- 184
Administration costs	-20 238	-16 691
OPERATING PROFIT	4 490	16 560
JOINT VENTURES AND ASSOCIATES	- 2	- 2
Share of result of joint ventures and associates, net of tax	- 2	- 2
OPERATING PROFIT AND SHARE OF RESULT OF ASSOCIATES AND JOINT VENTURES, NET OF TAX	4 488	16 558
Interest income	3 333	1 568
Interest expense	-8 463	-4 833
Other financial income / expenses	- 410	-2 609
NET FINANCIAL COSTS	-5 539	-5 874
PROFIT FROM OPERATIONS BEFORE TAXES	-1 051	10 684
Income taxes	-1 745	-1 777
PROFIT OF THE PERIOD	-2 796	8 907
Share of non-controlling interests	- 5	- 232
SHARE ATTRIBUTABLE TO OWNERS OF THE COMPANY	-2 791	9 139

EUR ('000)	REVENUES	OPERATING RESULT	REVENUES	OPERATING RESULT
	30/06/2023	30/06/2023	30/06/2022	30/06/2022
Belgium	48 034	8 205	78 781	21 263
Luxembourg	11 708	2 997	16 661	2 062
France	30 692	-3 226	32 344	-2 214
Germany	8 451	- 239	14 350	- 943
Poland	548	807	508	- 761
Spain		- 198		- 62
United Kingdom	300	-3 858		-2 787
TOTAL CONSOLIDATED	99 733	4 488	142 643	16 558

STATEMENT OF FINANCIAL POSITION	EUR ('000)	30/06/2023	31/12/2022
NON-CURRENT ASSETS		268 875	258 956
Intangible assets and property, plant and equipment		5 223	5 479
Right-of-use assets		8 655	9 937
Investment property		132 852	133 520
Investments and advances to joint ventures and associates		75 043	70 728
Deferred tax assets		29 253	27 008
Other non-current assets		17 850	12 284
CURRENT ASSETS		1 771 685	1 840 242
Inventories		1 441 527	1360 703
Trade receivables		24 473	24 309
Contract assets		24 369	45 128
Tax receivables and other current assets		77 676	88 252
Advances to joint ventures and associates		7 531	6 588
Cash and cash equivalents		196 109	315 262
TOTAL ASSETS		2 040 559	2 099 198
TOTAL EQUITY	EUR ('000)	544 346	572 644
NON-CURRENT LIABILITIES		786 298	847 078
Financial debts		760 374	824 153
Deferred tax liabilities		25 357	22 358
Other non-current liabilities		567	567
CURRENT LIABILITIES		709 915	679 476
Financial debts		395 630	318 445
Trade payables		76 875	113 780
Contract liabilities		78 025	61 470
Tax payables and other current liabilities		142 122	168 699
Advances from joint venture and associates		17 262	17 083
TOTAL EQUITY AND LIABILITIES		2 040 559	2 099 198

As at 30 June 2023:

FINANCIAL POSITION ITEMS	EUR ('000)	NON-CURRENT SEGMENT ASSETS	CURRENT SEGMENT ASSETS	UNALLOCATED ITEMS ¹	CONSOLIDATED
Belgium		12 652	1 072 287		1 084 939
Luxembourg		27 573	185 322		212 895
France		44 149	223 204		267 353
Germany		2	37 114		37 116
Poland		12	100 351		100 363
Spain		310	27 790		28 100
United Kingdom		62 051	- 1 822		60 229
Unallocated items1				249 564	249 564
TOTAL ASSETS		146 749	1 644 246	249 564	2 040 559

FINANCIAL POSITION ITEMS	EUR ('000)	SEGMENT LIABILITIES	UNALLOCATED ITEMS ¹	CONSOLIDATED
Belgium		936 824		936 824
Luxembourg		123 971		123 971
France		189 541		189 541
Germany		52 810		52 810
Poland		102 042		102 042
Spain		5 525		5 525
United Kingdom		50 753		50 753
Unallocated items1			34 747	34 747
TOTAL LIABILITIES		1 461 466	34 747	1 496 213

As at 31 December 2022:

FINANCIAL POSITION ITEMS	EUR ('000)	NON-CURRENT SEGMENT ASSETS	CURRENT SEGMENT ASSETS	UNALLOCATED ITEMS ¹	CONSOLIDATED
Belgium		13 481	994 168		1 007 649
Luxembourg		28 017	201 771		229 788
France		44 982	237 635		282 617
Germany		2	44 369		44 371
Poland		29	82 317		82 346
Spain		383	27 163		27 546
United Kingdom		62 065	3 550		65 615
Unallocated items1				359 265	359 265
TOTAL ASSETS		148 959	1 590 974	359 265	2 099 198

FINANCIAL POSITION ITEMS	EUR ('000)	SEGMENT LIABILITIES	UNALLOCATED ITEMS ¹	CONSOLIDATED
Belgium		973 358		973 358
Luxembourg		128 411		128 411
France		198 079		198 079
Germany		59 144		59 144
Poland		66 454		66 454
Spain		5 949		5 949
United Kingdom		52 227		52 227
Unallocated items1			42 932	42 932
TOTAL LIABILITIES		1 483 622	42 932	1 526 554

(1) Unallocated items: Assets: Deferred tax assets - Other non-current financial assets - Other non-current assets - Tax receivables - Other current financial assets - Cash and equivalents - Liabilities: Provisions - Deferred tax liabilities - Financial debts - Tax liabilities - Derivative financial instruments.

To have a view on the size of the portfolio of projects in development by geographical segment, both inventories and investment properties should be taken into consideration, since the latter contain leased out property acquired with a view to being redeveloped.

INVENTORIES AND INVESTMENT PROPERTY EUR ('000)	Offices	Residential	Landbanking	30/06/2023
Belgium	354 016	320 392	71 628	746 036
Luxembourg	27 833	197 627		225 460
France	232 629	61 563		294 192
Germany		105 656		105 656
Poland	41 046	81 846		122 892
Spain		18 904		18 904
United Kingdom	61 239			61 239
TOTAL INVENTORIES AND INVESTMENT PROPERTY	716 763	785 988	71 628	1 574 379

INVENTORIES AND INVESTMENT PROPERTY EUR ('000)	Offices	Residential	Landbanking	31/12/2022
Belgium	352 681	306 298	80 192	739 171
Luxembourg	27 625	151 098		178 723
France	220 397	59 922		280 319
Germany		112 465		112 465
Poland	38 739	65 463		104 202
Spain		18 254		18 254
United Kingdom	61 089			61 089
TOTAL INVENTORIES AND INVESTMENT PROPERTY	700 531	713 500	80 192	1 494 223

The main movements in inventories and investment property are driven by the ongoing development of all projects in the portfolio with main movements coming from Granaria in Poland and Saint Antoine in France and by the acquisition of Gasperich in Luxembourg.

EUR ('000)	30/06/2023
	Operating	Adjustments	Published
	Segment		Information
Revenues	99 733	-20 647	79 086
Operating result	4 488	-4 949	- 461
Total balance sheet	2 040 559	-344 352	1 696 208

For segment information, joint ventures are consolidated using the proportional method. The adjustments arise from the application of IFRS 11, resulting in the consolidation of joint ventures using the equity method.

Note 7. Revenues

The Group generates its revenues through commercial contracts for the transfer of goods and services in the following main revenue categories:

Cross-analysis by type of project and by geographical zone - EUR (000)	Offices	Residential	Landbanking	30/06/2023
Belgium	6 649	31 311	639	38 599
Luxembourg	429	5 117		5 546
France	152	25 193		25 345
Germany		8 451		8 451
Poland		548		548
United Kingdom	597			597
Total	7 827	70 620	639	79 086
Cross-analysis by type of project and by geographical zone - EUR (000)	Offices	Residential	Landbanking	30/06/2022
Belgium	40 106	29 578	2 393	72 077
Luxembourg	1 004	11 840		12 844
France	10	24 921		24 931
Germany		14 350		14 350
Poland		412		412
Total	41 120	81 101	2 393	124 614

Revenues for Belgium are mainly driven by Lalys, O'Sea, Barchon and St Roch for Residential and by Guimard for Offices, for Germany by Eden, for Luxembourg by Canal, for France by several smaller residential projects. Revenues from residential projects are lower mainly due to fewer projects in sales as a result of the lower permitting activity over recent years and revenues from office projects are lower mainly due to limited office transactions in the first half of 2023.

The contractual analysis of the Group's sales contracts resulted in the application of the following recognition principles:

Sales of office buildings

In accordance with IFRS 15, Immobel assesses on a case-by-case basis:

• Whether the agreement, the contract or the transaction meets the definition of a contract with a customer, considering the probability of the Group recovering the consideration to which it is entitled;
• Whether, under a contract, the sale of the land, the development and the commercialisation represent distinct performance obligations;
• Whether, for each obligation, the revenue is subject to a gradual transfer of control, particularly for projects which may satisfy the third criterion defined by IFRS 15.35 ("Performance creating a specific asset and giving rise to an enforceable right to payment for performance completed to date"), and must be recognised over time.

Payment terms for office sales are negotiated and stipulated in the individual contracts.

Residential project sales

For "Residential" projects, the analysis has distinguished revenue from contracts for which the contractual provisions and the legal context (Breyne Act in Belgium or equivalent in Luxembourg, France and Germany) establish a gradual transfer of control of the asset to the purchaser as the construction progresses from other revenue linked to contracts with customers for which control is transferred at a point in time.

Projects involving residential units - Breyne Act contracts (Belgium, Luxembourg, France and Germany)

Legally foreseen by the legal framework in Belgium and Luxembourg, the ownership of a residential unit is gradually transferred to the purchaser during the construction period as such as the revenue is recognized over time for residential properties when the entity's performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date.

Revenue (with no distinction between "land" and "development") is recognised over time for each residential project based on progress of works measured by incurred and budgeted costs.

In Poland revenue is recognised upon the signing of the final deed, i.e. once the unit being sold is delivered, because there is no enforceable right to payment for performance completed to date according to the regulatory framework.

Landbanking

Revenues are recorded when the asset is transferred and due at the time the notarial deed is issued.

The breakdown of sales according to these different principles of recognition is as follows:

EUR ('000)	Timing of revenue recognition
	Point in time	Over time	30/06/2023
	7 827		7 827
	548	70 072	70 620
		70 072	70 072
	548		548
	639		639
	9 014	70 072	79 086
EUR ('000)			30/06/2022
		Point in time	Timing of revenue recognition Over time

	Point in time	Over time	30/06/2022
OFFICES	18 584	22 536	41 120
RESIDENTIAL	412	80 689	81 101
Residential unit per project - Breyne Act or equivalent		80 689	80 689
Residential unit per project - Other	412		412
LANDBANKING	2 393		2 393
TOTAL REVENUE	21 389	103 225	124 614

The sale of Guimard has been recognised at a certain point in time.

The transaction price relating to performance obligations unrealized or partially realized at 30 June 2023 amounted to EUR 113 million.

It mainly concerns the sales of residential units of which construction is in progress (for the totality of their value or the unrecognized part based on progress of completion).

The Group's management estimates that 86 % of the price allocated to these outstanding performance obligations as at 30 June 2023 will be recognized as revenue in the following year.

Note 8. Rental income

Break down is allocated as follows by geographical segment:

EUR ('000)	30/06/2023	30/06/2022
Belgium	218	2 592
France	1 447	1 455
Luxembourg	904	825
TOTAL RENTAL INCOME	2 569	4 872

The main contributors are Rueil Malmaison in France and Thomas in Luxembourg. The project Isala is no longer subject to rental income.

The lease terms depend on the investment properties agreements and are to be considered between 3 to 10 years for the ongoing contracts.

Note 9. Other operating income

Break-down as follows:

EUR ('000)	30/06/2023	30/06/2022
Other income	1 983	1 308
TOTAL OTHER OPERATING INCOME	1 983	1 308

The increase compared to the previous financial year is mainly driven by recoveries of taxes and withholdings and miscellaneous reinvoicing.

Note 10. Cost of sales

Cost of sales is allocated as follows by geographical segment:

EUR ('000)	30/06/2023	30/06/2022
Belgium	-30 376	-53 792
Luxembourg	-5 420	-12 155
France	-22 554	-21 974
Germany	-8 507	-15 162
Poland	- 542	- 554
Spain	- 62
United Kingdom	- 119
TOTAL COST OF SALES	-67 579	-103 637

Cost of sales for Belgium are mainly driven by Lalys, O'Sea, Barchon, St Roch and Guimard, for Germany by Eden, for Luxembourg by Canal, for France by other residential projects. Cost of sales from residential projects are lower mainly due to fewer projects in sales as a result of the lower permitting activity over recent years.

Note 11. Administration costs

Break-down as follows:

EUR ('000)	30/06/2023	30/06/2022
Personnel expenses	-9 551	-4 546
Amortisation, depreciation and impairment of assets	-2 297	-2 371
Other operating expenses	-6 013	-7 007
TOTAL ADMINISTRATION COSTS	-17 861	-13 924

In general, Administration costs have increased as a result of the closing of Immobel Capital Partners' activities in London and the restructuring of Immobel France.

Personnel expenses:

EUR ('000)	30/06/2023	30/06/2022
Salaries and fees of personnel and members of the Exectuive Committee	-18 088	-7 069
Project monitoring costs capitalized under "inventories"	10 126	5 756
Social security charges	-1 573	-1 703
Pension costs		- 30
Other	- 16	- 963
TOTAL PERSONNEL EXPENSES	-9 551	-4 546

The increase in salaries and fees of personnel and members of the Executive Committee is mainly driven by the exceptional costs related to the severance payments paid following the closing of Immobel Capital Partners and the restructuring of Immobel France. The increase in project monitoring costs capitalized under 'inventories' is the result of a more accurate allocation of costs to the different projects.

Amortisation, depreciation and impairment of assets:

EUR ('000)	30/06/2023	30/06/2022
Amortisation of intangible and tangible assets, and of investment property	-2 297	-2 223
Write dow n on trade receivables		- 148
TOTAL AMORTISATION, DEPRECIATION AND IMPAIRMENT OF ASSETS	-2 297	-2 371

Other operating expenses:

EUR ('000)	30/06/2023	30/06/2022
Services and other goods	-4 475	-6 237
Other operating expenses	-1 101	- 203
Provisions	- 437	- 567
TOTAL OTHER OPERATING EXPENSES	-6 013	-7 007

Main components of services and other goods:

EUR ('000)	30/06/2023	30/06/2022
Service charges of the registered offices	- 949	- 796
Third party payment, including in particular the fees paid to third parties	-2 497	-4 577
Other services and other goods, including company supplies, advertising, maintenance and repair expense of properties available for sale aw aiting for development	-1 029	- 864
TOTAL SERVICES AND OTHER GOODS	-4 475	-6 237

Note 12. Share in the result of joint ventures and associates, net of tax

The share in the net result of joint ventures and associates' breakdown is as follows:

EUR ('000)	30/06/2023	30/06/2022
Operating result	6 964	3 500
Financial result	-4 851	-1 804
Income taxes	- 754	- 484
RESULT OF THE PERIOD	1 359	1 212

The decrease in the share of the result of joint ventures and associates is mainly driven by the higher financial expenses from project Multitower in Belgium, Central point in Poland and White rose park in United Kingdom.

Further information relating to joint ventures and associates is provided in note 18.

Note 13. Net financial costs

The financial result breaks down as follows:

EUR ('000)	30/06/2023	30/06/2022
Interest expense under the effective interest method	-9 329	-8 061
Capitalised interests on projects in development	5 057	4 513
Interest income	3 796	2 187
Other financial income and expenses	- 212	-2 709
FINANCIAL RESULT	- 688	-4 070

The interest income increased mainly thanks to the proceeds of short term placements of excess cash and higher interest income in advances to joint ventures and associates.

Note 14. Income tax

Income tax is as follows:

EUR ('000)	30/06/2023	30/06/2022
Current income taxes for the current year	-1 943	-2 405
Current income taxes for the previous financial years	- 664	336
Deferred taxes on temporary differences	1 101	776
TOTAL OF TAX EXPENSES RECOGNIZED IN THE STATEMENT OF COMPREHENSIVE INCOME	-1 506	-1 293
Current taxes	-2 607	-2 069
Change in tax receivables / tax payables	-10 570	- 263
PAID INCOME TAXES ( STATEMENT OF CASH FLOW)	-13 177	-2 332

Recognised tax expenses are higher, mainly driven by the lower recognition of deferred tax assets partially offset by a lower net result for the period.

Note 15. Earnings per share

The basic result per share is obtained by dividing the year's result (net result and comprehensive income) by the average number of shares. Computing the average number of shares is defined by IAS 33.

Basic earnings per share are determined using the following information:

		30/06/2023	30/06/2022
Net result of the period attributable to owners of the company	EUR ('000)	-2 791	9 139
Comprehensive income of the period	EUR ('000)	2 811	10 487
Weighted average share outstanding
Ordinary shares as at 1 January		9 997 356	9 997 356
Treasury shares as at 1 January		- 25 434	- 26 965
Treasury shares disposed			1 531
Ordinary shares outstanding as at 30 June		9 971 922	9 971 922
Weighted average share outstanding (basic)		9 970 986	9 970 986
Net result per share		-0,280	0,917

Note 16. Right-of-use assets

The right-of-use assets evolve as follows:

EUR ('000)	30/06/2023	31/12/2022
ACQUISITION COST AT THE END OF THE PREVIOUS PERIOD	12 553	6 708
Acquisitions		10 115
Disposals	-2 814	-4 270
ACQUISITION COST AT THE END OF THE PERIOD	9 739	12 553
DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PREVIOUS PERIOD	-2 616	-2 936
Depreciations	-1 071	-2 747
Depreciation cancelled on disposals	2 603	3 067
DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PERIOD	-1 084	-2 616
NET CARRYING AMOUNT AS AT 30 JUNE 2023 / 31 DECEMBER 2022	8 655	9 937

Note 17. Investment property

This heading includes leased-out property acquired with a view to redevelopment and generates rental income in anticipation of their future development. The investment property evolves as follows:

EUR ('000)	30/06/2023	31/12/2022
ACQUISITION COST AT THE END OF THE PREVIOUS YEAR	72 327	178 741
Disposal/exit from the consolidation scope		-2 952
Net carrying value of investment property transferred from/to inventories		-103 462
ACQUISITION COST AT THE END OF THE PERIOD	72 327	72 327
DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PREVIOUS YEAR	-4 641	-4 742
Depreciations	- 696	-2 810
Depreciations and impairment cancelled follow ing disposal/exit from the consolidation scope		2 911
DEPRECIATIONS AND IMPAIRMENT AT THE END OF THE PERIOD	-5 337	-4 641
NET CARRYING AMOUNT AS AT 30 JUNE 2023 / 31 DECEMBER 2022	66 990	67 686

The key projects included in investment property are Rueil Malmaison in France and Thomas in Luxembourg.

The useful lifetime of the Investment properties is based on the contract lease duration. The average useful life is 2.5 years. Investment property comprises a number of commercial properties that are leased to third parties. At the end of rental period, the development phase of the project starts. There are no indications of significant changes in fair value (both upward and downward), the fair value of the investment property is in line with the carrying amount.

Note 18. Investments in joint ventures and associates

The contributions of joint ventures and associates in the statement of the financial position and the statement of comprehensive income are as follows:

Investments in joint ventures 137 768 135 495 Investments in associates 10 469 9 396 TOTAL INVESTMENTS INCLUDED IN THE STATEMENT OF FINANCIAL POSITION 148 237 144 891 EUR ('000) 30/06/2023 31/12/2022 Advances from joint ventures - current liabilities -31 542 -29 570 TOTAL ADVANCES FROM JOINT VENTURES -31 542 -29 570 Advances to joint ventures - non-current assets 113 962 110 097 Advances to joint ventures - current assets 2 060 1 430 TOTAL ADVANCES TO JOINT VENTURES 116 022 111 527 Advances to associates - non-current assets 8 821 3 450 Advances to associates - current assets TOTAL ADVANCES TO ASSOCIATES 8 821 3 450 EUR ('000) 30/06/2023 31/12/2022 Share in the net result of joint ventures 1 413 67 657 Share in the net result of associates - 54 - 476	EUR ('000)	30/06/2023	31/12/2022
SHARE OF JOINT VENTURES AND ASSOCIATES IN THE CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 1 359 67 181

In accordance with the agreement under which the joint ventures and associates are established, the Group and the other investors have agreed to make additional contributions in proportion to their interests to make up any losses, if required, up to a maximum amount of EUR 33 876 thousand. No commitments have been recognised in these consolidated financial statements neither in associates nor for joint ventures in which the Group has joint control.

The book value of investments in joint ventures and associates has evolved as follows:

EUR ('000)	30/06/2023	31/12/2022
VALUE AS AT 1 JANUARY	144 891	156 532
Share in result	1 359
Acquisitions and capital injections	18 330	40 233
Scope changes		82 637
Dividends received from joint ventures and associates	-8 245	-43 587
Disposals or liquidation of joint ventures and associates		-83 680
Repayment of capital	-9 925	-8 827
Other changes	1 827	1 583
CHANGES FOR THE PERIOD	3 346	-11 641
VALUE AS AT 30 JUNE 2023 / 31 DECEMBER 2022	148 237	144 891

	ASSETS - EUR ('000)			LIABILITIES - EUR ('000)
	30/06/2023	31/12/2022		30/06/2023	31/12/2022
VALUE AS AT 1 JANUARY	114 977	114 833		-29 570	-38 824
Acquisitions and capital injections	10 306	79 217		-3 825	-99 848
Repayment of capital	- 669	-67 291		2 477	90 174
Scope changes		-12 800			17 005
Currency translation					2 202
Other changes	229	1 018		- 624	- 279
CHANGES FOR THE PERIOD	9 866	144		-1 972	9 254
VALUE AS AT 30 JUNE 2023 / 31 DECEMBER 2022	124 843	114 977		-31 542	-29 570

As there have been no indicators of impairment, no impairment testing has been carried out for the equity accounted investees.

The weighted average interest rate on loans to/from joint ventures and associates is 5.08% as at 30 June 2023 and 3.58% as at 30 June 2022. The repayment schedule for loans is defined at the end date of the projects.

The table below shows the contribution of joint ventures and associates in the statement of the financial position and the statement of comprehensive income.

	% INTEREST		BOOK VALUE OF THE INVESTMENTS - EUR (000)		SHARE IN THE COMPREHENSIVE INCOME - EUR (000)
NAME	30/06/2023	31/12/2022	30/06/2023	31/12/2022	30/06/2023	31/12/2022
Bella Vita	50%	50%	75	76	- 1	28
BONDY CANAL	40%	40%	- 37	- 37
Boralina Investments, S.L.	50%	50%	53	86	- 32	- 24
Brouckère Tow er Invest	50%	50%	37 616	35 981	385	3 424
CBD International	50%	50%	1 772	2 310	85	- 243
Château de Beggen	50%	50%	12	13	- 2	- 3
Cityzen Holding	50%	50%	77	1 699	- 4	- 9
Cityzen Hotel	50%	50%	4 955	3 017	- 2	- 179
Cityzen Office	50%	50%	12 697	8 180	- 5	- 625
Cityzen Residence	50%	50%	2 908	2 756	- 23	- 192
CP Development Sp. z o.o.	50%	50%	-1 225	-1 424	- 30	- 577
CSM Development	50%	50%	1		- 57	-1 603
CSM Properties		50%				62 023
Debrouckère Development	50%	50%	396	452	- 56	- 45
Debrouckère Land (ex-Mobius I)	50%	50%	62	83	- 20	- 7
Debrouckère Leisure	50%	50%	2 212	2 253	- 41	- 30
Debrouckère Office	50%	50%	3 732	3 736	- 3	- 4
Gatew ay		50%				- 3
Goodw ays SA	50%	50%	3 141	3 168	- 27	- 67
HOUILLES JJ ROUSSEAU	50%	50%
Ilot Ecluse	50%	50%	145	150	- 5	- 13
Immo Marial SàRL	50%	50%			- 101	- 121
Immo PA 33 1	50%	50%	1 382	1 350	32	36
Immo PA 44 1 Immo PA 44 2	50% 50%	50% 50%	514 1 468	504 1 430	9 38	- 177 - 993
Key West Development	50%	50%	241	292	- 51	- 95
Kiem 2050 SàRL	70%		71		1
Les Deux Princes Develop.	50%	50%	240	170	69	3 109
M1 M7	33% 33%	33% 33%	- 12	2 034 - 12	1 187 - 1	1 426 - 4
Mobius II	50%	50%	674	686	- 12	19
Munroe K Luxembourg SA	50%	50%	8 892	8 085	- 560	- 311
NP_AUBER	50%	50%				- 10
NP_AUBER_VH	50%	50%				- 34
NP_AUBERVIL	50%	50%	1 546	1 022	525	698
NP_BESSANC2	50%	50%				86
NP_BESSANCOU	50%	50%				- 56
NP_CHARENT1	50%	50%			- 48	- 263
NP_CRETEIL		50%		- 1		- 3
NP_EPINAY	33%	33%				- 34
NP_VAIRES	33%	33%				- 131
ODD Construct	50%	50%	587	1 292	- 205	128
Oxy Living	50%	50%	2 021	1 047	5	- 3
PA_VILLA	51%	51%	131	107	24	147
Plateau d'Erpent	50%	50%	808	2 290	18	467
RAC3	40%	40%	3 605	3 536	69	133
RAC4	40%	40%	1 342	1 317	24	- 3
RAC4 Developt	40%	40%	1 522	1 544	- 22	- 23
RAC5	40%	40%	5 963	5 858	106	207
RAC6	40%	40%	1 745	4 223	- 77	2 040
Surf Club Hospitality Group SL	50%	50%	5 480	5 485	- 5	- 15
Surf Club Marbella Beach, S.L.	50%	50%	21 307	21 312	- 5	- 83
TRELAMET	40%	40%	117	94	24	46
ULB Holding	60%	60%	-5 886	-5 782	- 104	- 210
Unipark	50%	50%	4 185	4 108	77	42
Universalis Park 2	50%	50%			- 70	- 133
Universalis Park 3	50%	50%			- 149	- 280
Universalis Park 3AB	50%	50%	2 014	1 988	26	14
Universalis Park 3C	50%	50%	423	418	4	1
Urban Living Belgium	30%	30%	8 798	8 600	423	189
TOTAL JOINT VENTURES			137 768	135 495	1 413	67 657
277 SH	10%	10%	5 324	4 423	141	- 22
Arlon 75	20%	20%	2 520	1 364	- 1	- 5
Beiestack SA	20%	20%	1 293	1 308	- 16	- 16
Belux Office Development Feeder CV	26%	26%	27	64	- 3	- 6
DHR Clos du Château	33%	33%	21	23	- 2	- 3
Immobel Belux Office Development Fund SCSP	19%	19%	- 40	1 213	- 169	- 399
MONTLHERY 2 BIS	20%	20%			9	- 25
RICHELIEU	10%	10%	1 324	1 001	- 13
TOTAL ASSOCIATES			10 469	9 396	- 54	- 476
TOTAL JOINT VENTURES AND ASSOCIATES			148 237	144 891	1 359	67 181

The table below shows the advances from and to the joint ventures and associates in the statement of financial position.

	ADVANCES FROM JOINT VENTURES AND ASSOCIATES - EUR (000) CURRENT LIABILITIES		ADVANCES TO JOINT VENTURES AND ASSOCIATES - EUR (000) NON-CURRENT ASSETS		ADVANCES TO JOINT VENTURES AND ASSOCIATES - EUR (000) CURRENT ASSETS
NAME	30/06/2023	31/12/2022	30/06/2023	31/12/2022	30/06/2023	31/12/2022
Bella Vita
BONDY CANAL			3 626
Boralina Investments, S.L.
Brouckère Tow er Invest			1 000
CBD International			28 579	24 388
Château de Beggen
Cityzen Holding				522
Cityzen Hotel				2 612
Cityzen Office		1 575	31	3 543
Cityzen Residence			2 697	2 633
CP Development Sp. z o.o.
CSM Development		50	1 025	57		844
CSM Properties
Debrouckère Development			4 757	2 957		63
Debrouckère Land (ex-Mobius I)		494	1 641	349		486
Debrouckère Leisure	99		2 446	2 260
Debrouckère Office	-3 641	-2 881		138		180
Gatew ay
Goodw ays SA		125	3 674	3 256		30
HOUILLES JJ ROUSSEAU
Ilot Ecluse
Immo Marial SàRL					2 955	2 514
Immo PA 33 1	-1 633	-1 601
Immo PA 44 1	- 492	- 419				- 50
Immo PA 44 2	-1 413	-1 185				- 150
Key West Development			6 953	6 644
Les Deux Princes Develop.	- 887	-1 001				- 300
M1	-3 676	-6 061
M7
Mobius II			504
Munroe K Luxembourg SA			14 914	14 752		226
NP_AUBER				251
NP_AUBER_VH				158
NP_AUBERVIL			2 950	2 945
NP_BESSANC2				1 329
NP_BESSANCOU NP_CHARENT1			351	60 475
NP_CRETEIL				405
NP_EPINAY				1 176
NP_VAIRES
ODD Construct			8	584
Oxy Living
PA_VILLA	- 534			31
Plateau d'Erpent				47		1 701
RAC3	-3 062	-2 990
RAC4	-1 877	-2 165		200
RAC4 Developt		320	1 103	57		507
RAC5	-6 252	-6 107
RAC6	-1 669	-1 337		1 320		-3 983
Surf Club Hospitality Group SL
Surf Club Marbella Beach, S.L.
TRELAMET
Unipark						206
ULB Holding	-4 218	-4 141			5 866
Universalis Park 2			6 504	5 869
Universalis Park 3			9 386	9 305
Universalis Park 3AB	-1 936	-1 901
Universalis Park 3C	- 352	- 346
Urban Living Belgium			21 814	21 773		1 178
TOTAL JOINT VENTURES	-31 542	-29 570	113 962	110 097	8 821	3 450
277 SH			60
Arlon 75
Beiestack SA
Belux Office Development Feeder CV
DHR Clos du Château
Immobel Belux Office Development Fund SCSP
MONTLHERY 2 BIS			373
RICHELIEU			1 627	1 430
TOTAL ASSOCIATES			2 060	1 430
TOTAL JOINT VENTURES AND ASSOCIATES	-31 542	-29 570	116 022	111 527	8 821	3 450

Note 19. Deferred Taxes

Deferred tax assets or liabilities are recorded in the balance sheet on deductible or taxable temporary differences, tax losses and tax credits carried forward. Changes in deferred taxes on the balance sheet that have occurred over the financial year are recorded on the statement of income unless they refer to items directly recognised under other comprehensive income.

Deferred taxes on the balance sheet refer to the following temporary differences:

EUR ('000)		DEFERRED TAX ASSETS		DEFERRED TAX LIABILITIES
	30/06/2023	31/12/2022	30/06/2023	31/12/2022
Tax losses	37 353	34 501
Timing difference on projects valuation	4 216	2 151	40 188	36 164
Derivative instruments			2 003
Fair value of financial instruments			- 154	- 61
Other items	83	55	- 80	7
Netting (net tax position per entity)	-18 123	-14 974	-18 123	-14 974
TOTAL	23 529	21 733	23 834	21 136
VALUE AS AT 1 JANUARY	21 733		21 136
Deferred tax recognised in the equity attributable to ow ners of the company			2 003
Deferred tax recognised in the consolidated statement of comprehensive income	1 796		695
VALUE AS AT 30 JUNE 2023	23 529		23 834

Immobel France remains the main contributor to the deferred tax assets with a number of projects still in development that will still generate sufficient profit to recover the tax losses. In view of the decision taken by management to focus on large mixed use and office projects, management challenged the existing deferred tax assets and assessed that it is still recoverable.

Immobel and Infinito contribute for the most part to the deferred tax liabilities.

Note 20. Inventories

Inventories consist of buildings and land acquired for development and resale.

Allocation of inventories by geographical segment is as follows:

EUR ('000)	30/06/2023	31/12/2022
Belgium	435 199	436 740
Luxembourg	194 084	152 357
France	229 478	218 021
Germany	105 656	112 465
Poland	80 612	64 229
Spain	2 301	1 914
TOTAL INVENTORIES	1 047 330	985 726

Cross-analysis by type of project and by geographical zone - EUR (000)	Offices	Residential	Landbanking	30/06/2023
Belgium	142 020	221 551	71 628	435 199
Luxembourg	1 865	192 219		194 084
France	171 532	57 946		229 478
Germany		105 656		105 656
Poland		80 612		80 612
Spain		2 301		2 301
Total	315 417	660 285	71 628	1 047 330

Cross-analysis by type of project and by geographical zone - EUR (000)	Offices	Residential	Landbanking	31/12/2022
Belgium	144 431	212 117	80 192	436 740
Luxembourg	1 335	151 022		152 357
France	159 962	58 059		218 021
Germany		112 465		112 465
Poland		64 229		64 229
Spain		1 914		1 914
Total	305 728	599 806	80 192	985 726

The main changes on inventory are mainly driven by Gasperich in Luxembourg.

The main projects in inventories include O'Sea, Isala and Lebeau Sablon in Belgium, Gasperich, Polvermillen and Cat Club in Luxembourg, Saint-Antoine, Tati and Reuil Malmaison in France, Eden in Germany and Granaria Gdansk in Poland.

The weighted average interest rate on borrowing costs capitalised on Project Financing Credits and on Bonds was 3,0% as at 30 June 2023 and 2,7% as at 30 June 2022.

The inventories break down as follows:

EUR ('000)	30/06/2023	31/12/2022
INVENTORIES AS AT 1 JANUARY	985 726	698 623
Net book value of investment property transferred from/to inventories		103 462
Purchases of the year	47 528	37 857
Developments	81 083	340 856
Disposals of the year	-72 064	-208 866
Borrow ing costs	5 057	15 553
Scope changes		-1 759
Write-off
CHANGES FOR THE PERIOD	61 604	287 103
INVENTORIES AS AT 30 JUNE 2023 / 31 DECEMBER 2022	1 047 330	985 726

Management has considered the current Real Estate market environment in its net realisable value assessment and estimates that current book value of inventory can be recoverable by future sales.

Break dow n of the movements by EUR ('000) geographical area :	Purchases/ Developments		Disposals Borrowing costs	Scope changes	Net book value of investment property transferred from/to inventories	Net
Belgium	24 186	-30 391	4 664			-1 541
Luxembourg	49 364	-8 142	505			41 727
France	13 324	-1 625	- 242			11 457
Germany	436	-7 529	284			-6 809
Poland	16 548	- 11	- 154			16 383
Spain	387					387
Total	104 245	-47 698	5 057			61 604

The value of the stock to be recovered in:

	EUR ('000)	30/06/2023	31/12/2022
Within 12 months		136 633	175 902
Beyond 12 months		905 290	809 824
Breakdw on of the stock by type:
Without permit		662 746	617 759
In development		379 177	367 967

The book value of the Group's assets pledged for debt securities related to investment property and inventory as a whole was EUR 936 million compared to EUR 893 million at the end of 2022, representing an increase of EUR 43 million.

As at 30 June 2023, Immobel acknowledged a capital commitment for an amount of EUR 143 million for projects.

Note 21. Trade receivables

Trade receivables refer to the following geographical segments:

EUR ('000)	30/06/2023	31/12/2022
Belgium	3 690	7 737
Luxembourg	2 294	1 050
France	7 094	5 133
Germany	7 153	3 072
Poland	107	179
Spain	420	420
United Kingdom	261
TOTAL TRADE RECEIVABLES	21 019	17 591
The analysis of the delay of payment arises as follow s: EUR ('000)	30/06/2023	31/12/2022
Due < 3 months	2 150	1 609
Due > 3 months < 6 months	376	710
Due > 6 months < 12 months	174	333
Due > 1 year	1 209	1 230

CREDIT RISK

Trade receivables mainly relate to receivables either for equity accounted investees or for customers. The credit risk for both types of receivables is considered as immaterial. Receivables towards equity accounted investees are typically backed by an asset under development. Receivables for customers are typically backed by the asset sold which serves as collateral.

Impairments recorded on trade receivables evolve as follows:

EUR ('000)	30/06/2023	31/12/2022
BALANCE AT 1 JANUARY	708	627
Additions	2	81
MOVEMENTS OF THE PERIOD	2	81
BALANCE AS AT 30 JUNE 2023 / 31 DECEMBER 2022	710	708

Note 22. Contract assets

Contract assets arising from the application of IFRS 15 refer to the following geographical segments:

EUR ('000)	30/06/2023	31/12/2022
Belgium	2 597	5 493
Luxembourg	1 893	1 867
France	16 964	25 755
Germany	2 681	9 033
TOTAL CONTRACT ASSETS	24 135	42 148
EUR ('000)	30/06/2023	31/12/2022
BALANCE AT 1 JANUARY	42 148	117 953
Additions	8 820	4 952
Discounts	-26 833	-80 757
MOVEMENTS OF THE PERIOD	-18 013	-75 805
BALANCE AS AT 30 JUNE 2023 / 31 DECEMBER 2022	24 135	42 148

Contract assets include the amounts to which the entity is entitled in exchange for goods or services that it already has provided for a customer, but for which payment is not yet due or is subject to fulfilment of a specific condition provided for in the contract. When an amount becomes due, it is transferred to the receivables account. A trade receivable is recognised as soon as the entity has an unconditional right to collect a payment. This unconditional right exists from the moment in time when the payment becomes due.

Trade receivables, other receivables and contract assets are similarly subject to an impairment test in accordance with the provisions of IFRS 9 on expected credit losses. This test does not show any significant potential impact since these contract assets (and their related receivables) are generally covered by the underlying assets represented by the building to be transferred.

As at 30 June 2023, the change in contract assets is mainly due to the decrease in operational activity.

Note 23. Prepayments and other receivables

EUR ('000)	30/06/2023	31/12/2022
Other receivables	39 824	51 304
of w hich : advances and guarantees paid
taxes (other than income taxes) and VAT receivable	23 939	33 567
prepayments and dividends receivable	15 885	17 737
Deferred charges and accrued income on projects in development	7 333	4 913
deferred charges	4 086	4 550
accrued income	3 247	363
TOTAL OTHER CURRENT ASSETS	47 157	56 217

Those receivables are mainly related to VAT receivables on the project Polvermillen in Luxembourg and to accrued income in Immobel S.A.

Note 24. Information relating to net financial debt

The Group's net financial debt is the balance between cash and cash equivalents and financial debts (current and non-current). It amounts to EUR -746 557 thousand as at 30 June 2023 compared to EUR -625 274 thousand as at 31 December 2022.

EUR ('000)	30/06/2023	31/12/2022
Cash and cash equivalents	168 360	275 926
Non current financial debts	656 166	722 777
Current financial debts	258 752	179 723
NET FINANCIAL DEBT	-746 557	-626 574

The Group's gearing ratio6 is 58,5% (64,5% in internal view) as at 30 June 2023, compared to 52,9% (58,9% in internal view) as at 31 December 2022.

CASH AND CASH EQUIVALENTS

Cash deposits and cash at bank and in hand amount to EUR 168 360 thousand compared to EUR 275 926 thousand at the end of 2022, representing a decrease of EUR 107 566 thousand.

The breakdown of cash and cash equivalents is as follows:

EUR ('000)	30/06/2023	31/12/2022
Term deposits w ith an initial duration of maximum 3 months	53 093	137 804
Cash at bank and in hand	114 804	138 122
Cash pledged	463
AVAILABLE CASH AND CASH EQUIVALENTS	168 360	275 926

The explanation of the change in available cash is provided in the consolidated cash-flow statement. Cash and cash equivalents are available in full, either for distribution to the shareholders or to finance projects owned by the different companies.

FINANCIAL DEBTS

Financial debts increased by EUR 12 418 thousand, from EUR 902 500 thousand as at 31 December 2022 to EUR 914 918 thousand as at 30 June 2023. The components of financial debts are as follows:

	EUR ('000)	30/06/2023	31/12/2022
Bond issues:
Bond issue maturity 17-10-2025 at 3.50% - nominal amount 50 MEUR		50 000	50 000
Bond issue maturity 14-04-2027 at 3.00% - nominal amount 75 MEUR		75 000	75 000
Bond issue maturity 12-05-2028 at 3.00% - nominal amount 125 MEUR		125 000	125 000
Bond issue maturity 29-06-2026 at 4,75% - nominal amount 125 MEUR		125 000	125 000
Lease contracts		7 943	8 536
Credit institutions		273 223	339 241
NON CURRENT FINANCIAL DEBTS		656 166	722 777
Bond issues:
Bond issue maturity 17-10-2023 at 3.00% - nominal amount 50 MEUR		50 000	50 000
Credit institutions		202 976	119 843
Lease contracts		1 997	2 316
Bonds - not yet due interest		3 779	7 564
CURRENT FINANCIAL DEBTS		258 752	179 723
TOTAL FINANCIAL DEBTS		914 918	902 500
Financial debts at fixed rates		425 000	425 000
Financial debts at variable rates		486 139	469 936
Not yet due interest		3 779	7 564
Amount of debts guaranteed by securities		476 199	409 558
Book value of Group's assets pledged for debt securities		936 112	893 009

Financial debts evolve as follows:

EUR ('000)	30/06/2023	31/12/2022
FINANCIAL DEBTS AS AT 1 JANUARY	902 500	866 690
Liabilities related to lease contracts	- 912
Contracted debts	100 742	397 909
Repaid debts	-85 574	-353 659
Scope changes	- 304	-8 536
Movements bonds - - not yet due interest	-5 313	-7 468
Not yet due interest on other loans	3 779	7 564
CHANGES FOR THE PERIOD	12 418	35 810
FINANCIAL DEBTS AS AT 30 JUNE 2023 / 31 DECEMBER 2022	914 918	902 500

All financial debts are denominated in EUR.

⁶ Gearing ratio is calculated by dividing net financial debt by the sum of net financial debt and equity group share with goodwill subtracted from the equity group share

Except for the bonds, financing for the Group and financing for the Group's projects are provided based on a short-term rate, the 1 to 12-month Euribor, plus a commercial margin.

As at the end of June 2023, IMMOBEL is entitled to use EUR 538 million of confirmed project finance lines of which EUR 426 million were used. These credit lines (Project Financing Credits) are specific for the development of certain projects.

To further secure its liquidity position, Immobel entered into a bridge financing line amounting to EUR 135 million, to secure the EUR 50 million bond reimbursement in October as well as potential cashflow shortfall.

As at 30 June 2023, the book value of the Group's assets pledged to secure corporate credit and the project financing credits amounted to EUR 936 million.

The table below is a summary of the Group's financial debts as they mature:

DUE IN THE PERIOD - EUR (000)	UP TO 1 YEAR	1 TO 2 YEARS	2 TO 3 YEARS	3 TO 4 YEARS	4 TO 5 YEARS	AFTER 5 YEARS	Total
Bonds	50 000		175 000	75 000	125 000		425 000
Project Financing Credits	179 530	133 426	98 132	15 365			426 454
Corporate Credit lines		26 300					26 300
Commercial paper	23 445						23 445
Lease contracts	2 000	1 832	1 680	1 079	792	2 557	9 940
Interests not yet due and amortized
costs	3 779						3 779
TOTAL AMOUNT OF DEBTS	258 754	161 558	274 813	91 444	125 792	2 557	914 918

The table below summarises the maturity of interests on the financial liabilities of the Group:

DUE IN THE PERIOD - EUR (000)	UP TO 1 YEAR	1 TO 2 YEARS	2 TO 3 YEARS	3 TO 4 YEARS	4 TO 5 YEARS	AFTER 5 YEARS	Total
Bonds	14 135	13 688	12 402	5 513	3 236		48 974
Project Financing Credits	20 882	12 098	2 317	69			35 366
Corporate Credit lines	1 401	677					2 078
Commercial paper	134						134
Lease contracts	64	59	54	22	14	43	256
TOTAL AMOUNT OF DEBTS	36 616	26 522	14 772	5 604	3 250	43	86 807

INTEREST RISK

To hedge its variable interest-rate exposure, the company uses various types of financial instruments.

Interest CAP

• In March 2019, the Company entered into agreements to cap the interest rate at 3% on part of the financial debt related to a notional amount of EUR 18 million for the period from 22 May 2019 to 22 August 2026.
• In May 2021, the Company entered into another agreement to cap the interest rate at 1.5% on part of the financial debt related to a notional amount of EUR 225 million for the period from 1 July 2023 to 1 July 2024.
• In January 2023, the Company entered into two agreements to cap the interest rate at 4% on part of the financial debt related to a notional amount of EUR 100 million for the period from 1 January 2024 to 31 December 2024 and to another of EUR 100 million for the period from 1 January 2025 to 31 December 2025

Interest rate swap

The Company uses interest-rate swap agreements to convert a portion of its interest-rate exposure from floating rates to fixed rates to reduce the risk of an increase in the EURIBOR interest rate. The interest swaps replace the Euribor rate with a fixed interest rate each year on the outstanding amount.

Immobel has entered into the following various interest rate swap:

Interest rate swaps - EUR (000) Company	OUTSTANDING AMOUNT	FIXED INTEREST RATE	START DATE	END DATE
Immobel S.A.	25 500	5 bps	29-01-21	31-01-25
Infinito S.A.	19 550	9.4 bps	30-09-21	30-04-24
Infinito S.A.	5 000	9.4 bps	30-09-21	30-04-24
Infinito Holding S.R.L.	19 550	9.4 bps	30-09-21	30-04-24
Infinito Holding S.R.L.	5 000	9.4 bps	30-09-21	30-04-24
Arlon 75 S.A.	20 400	320 bps	27-06-23	27-12-25
CP Developments SP. Z O.O.	15 585	370.5 bps	28-02-23	10-03-25
Munroe K Luxembourg SA	56 927	240.8 bps	31-05-22	31-05-25
North Living SA	11 367	301.5 bps	29-12-23	31-12-25
North Offices SA	19 433	301.5 bps	29-12-23	31-12-25
North Student Housing SA	1 467	301.5 bps	29-12-23	31-12-25
North Retail SA	1 467	301.5 bps	29-12-23	31-12-25
North Public SA	2 933	301.5 bps	29-12-23	31-12-25
North Living SA	11 367	301.5 bps	29-12-23	31-12-25
North Offices SA	19 433	301.5 bps	29-12-23	31-12-25
North Student Housing SA	1 467	301.5 bps	29-12-23	31-12-25
North Retail SA	1 467	301.5 bps	29-12-23	31-12-25
North Public SA	2 933	301.5 bps	29-12-23	31-12-25
North Living SA	11 367	301.5 bps	29-12-23	31-12-25
North Offices SA	19 433	301.5 bps	29-12-23	31-12-25
North Student Housing SA	1 467	301.5 bps	29-12-23	31-12-25
North Retail SA	1 467	301.5 bps	29-12-23	31-12-25
North Public SA	2 933	301.5 bps	29-12-23	31-12-25

Both the interest CAPs and Interest rate swaps are formally designated and qualify as a cash-flow hedge and are recorded on the consolidated balance sheet under other current and non-current financial assets for a total amount of EUR 9 260 thousand.

An increase of 1% interest rate would result in an annual increase of the interest charge on debt of EUR 1715 thousand.

Information on the fair value of financial instruments

The following table lists the different classes of financial assets and liabilities with their carrying amounts in the balance sheet and their respective fair value and analysed by their measurement category.

The fair value of financial instruments is determined as follows:

• If their maturity is short-term (e.g.: trade receivables and payables), the fair value is assumed to be close to the amortised cost,

• For fixed-rate debts, based on discounted future cash flow, estimated based on market rates at closing,
• For variable-rate debts, the fair value is assumed to be close to the amortised cost,
• For derivative financial instruments, the fair value is determined on the basis of discounted future cash flows estimated based on curves of forward interest rates. This value is referred to by the counterparty financial institution,
• For quoted bonds, on the basis of the quotation at closing.

The fair value measurement of financial assets and financial liabilities can be characterised in one of the following ways:

• Level 1: the fair values of financial assets and liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices on active markets for identical assets and liabilities,
• Level 2: the fair values of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models based on discounted cash-flow analysis using prices from observable current market transactions and dealer quotes for similar instruments. This mainly relates to derivative financial instruments,
• Level 3: the fair values of the remaining financial assets and financial liabilities are derived from valuation techniques which include inputs not based on observable market data.

		Amounts recognized in accordance with IFRS 9
EUR ('000)	Level of the fair value	Carrying amount 30/06/2023		Amortized cost Fair value trough profit or loss	Fair value 30/06/2023	Cash flow hedging 30/06/2023
ASSETS
Cash and cash equivalents		168 360	168 360		168 360
Other current financial assets	Level 2	5 781			5 127	654
Other current financial assets	Level 2	3 479			3 085	394
Advances to joint ventures and associates	Level 2	124 843	124 843		124 843
TOTAL		298 984	293 203		298 330	654
LIABILITIES
Interest-bearing debt	Level 1	425 000	425 000		414 915
Interest-bearing debt	Level 2	489 918	489 918		489 918
Advances from joint ventures and associates	Level 2	31 542	31 542		31 542
TOTAL		946 460	946 460		936 375

		Amounts recognized in accordance with IFRS 9 (represented)
EUR ('000)	Level of the fair value	Carrying amount 31/12/2022		Amortized cost Fair value trough profit or loss	Fair value 31/12/2022	Cash flow hedging 31/12/2022
ASSETS
Cash and cash equivalents		275 926	275 926		275 926
Other current financial assets	Level 2	3 450			3 247	203
Advances to joint ventures and associates	Level 2	114 977	114 977		114 977
TOTAL		394 353	390 903		394 150	203
LIABILITIES
Interest-bearing debt	Level 1	425 000	425 000		405 127
Interest-bearing debt	Level 2	477 500	477 500		477 500
Advances from joint ventures and associates	Level 2	29 570	29 570		29 570

The company did not make any changes to its financial risk management policy in the first half of 2023.

TOTAL 932 070 932 070 912 197

INVESTMENT GRADE

All bank accounts are held by investment grade banks (minimum Baa3/BBB- rating).

LIQUIDITY RISK

Immobel uses largely centralised structures for pooling cash and cash equivalents at Group level. The central liquidity position is calculated monthly using a bottom-up method over a rolling twelve-month period. The liquidity planning is supplemented by monthly stress tests.

FINANCIAL COMMITMENTS

The Group is subject, for bonds and credit lines mentioned hereabove, to a number of financial commitments.

These covenants are taking into account the equity, the net financial debt and its relation with the equity and the inventories. As at 30 June 2023, as for the previous years, the Group was in conformity with all these financial commitments and no effect of the covenants has to be considered. Immobel has sufficient headroom before being in breach.

RISK OF FLUCTUATION IN FOREIGN CURRENCIES

The Group has limited hedging on the foreign exchange rates risks on its activities. The functional currency of projects currently being developed in Poland and of the activities in the UK are converted respectively from PLN to EUR (except for the Central Point managed in EUR) and from GBP to EUR, with an impact on other comprehensive income.

Note 25. Trade payables

This account is allocated by geographical segment as follows:

EUR ('000)	30/06/2023	31/12/2022
Belgium	20 817	41 955
Luxembourg	3 444	3 889
France	27 257	27 534
Germany	10 311	16 044
Poland	252	2 202
Spain	4 085	4 175
United Kingdom	286	2 585
TOTAL TRADE PAYABLES	66 452	98 384

The trade payables are mainly related to the projects O'sea and St Roch in Belgium, Saint Antoine Paris Lannelongue, Issy-Les-Molineaux in France and Eden in Germany.

Note 26. Contract liabilities

Contract liabilities arising from the application of IFRS 15 relate to the following geographical segments:

EUR ('000)	30/06/2023	31/12/2022
Belgium	8 228	10 254
Luxembourg	5 452	7 778
France	10 381	4 987
Poland	46 215	28 466
TOTAL CONTRACT LIABILITIES	70 276	51 485

The increase in contract liabilities is mainly due to the Bussy in France and Granaria in Poland.

Contract liabilities include amounts received by the entity as compensation for goods or services that have not yet been provided for the customer. Contract liabilities are settled by "future" recognition of the revenue when the IFRS 15 criteria for revenue recognition have been met.

All amounts reflected in contract liabilities relate to residential activities for which revenue is recognised over time, except for Poland where revenue will be recognized upon delivery, thus creating discrepancies between payments and the realisation of benefits.

Note 27. Social debts, VAT, accrued charges and other amount payable

The components of this account are:

EUR ('000)	30/06/2023	31/12/2022
Payroll related liabilities	2 041	3 015
Taxes (other than income taxes) and VAT payable	14 510	17 005
Accrued charges	3 846	13 026
Dividends payable	50	163
Other	4 956	2 732
Other liability w ith business partners	12 290	18 419
TOTAL OTHER CURRENT LIABILITIES	37 693	54 360

Other current liabilities mainly consist of taxes (other than income taxes) as well as accrued charges and deferred income in Belgium and France.

Note 28. Change in working capital

The change in working capital by nature is established as follows:

EUR ('000)	30/06/2023	31/12/2022
Inventories, including the acquisition and sales of subsidiaries holding a dedicated project	-61 604	-183 641
Amounts receivable w ithin one year	26 205	96 330
Deferred charges and accrued income	-2 420	-19 977
Trade debts	-13 140	44 353
Amounts payable regarding taxes and social security	-3 470	3 591
Accrued charges and deferred income	-13 114	-9 254
Other payable w ith business partners	6 415	-4 585
CHANGE IN WORKING CAPITAL	-61 128	-73 183

Changes in drivers for working capital are addressed in the respective notes earlier in this report.

Note 30. Seasonal nature of the results

Due to the intrinsic nature of its activity, real estate development, the results of the first half of 2023 cannot be extrapolated over the whole year. These results depend on the final transactions before 31 December 2023.

Note 31. Going concern

Actuals relating to the first half of 2023 and forecast for 2023 show that the management assessment relating to the company's going concern remains appropriate and confirms the Group's good prospects.

Note 32. Major events that took place after the end of the interim reporting date

No significant event that may change the financial statements occurred from the reporting date on 30 June 2023 up to 14 September 2023 when the financial statements were approved by the Board of Directors.

Note 33. Related parties

The related party transactions described in Note 32 of the Notes to the Consolidated Financial Statements as at 31 December 2022 did not change significantly at the end of June 2023.

IV. Managers' statement

A³ Management bv, represented by Mr. Marnix Galle in his capacity as Executive Chairman of the Board of Directors and KB Financial Services bv, represented by Mr. Karel Breda in his capacity as Chief Financial Officer state that, to the best of their knowledge:

• the interim report provides a true representation of the major events and, where appropriate, of the main transactions between the parties involved that took place during the first 6 months of the financial year and of their impact on the set of summarised accounts, as well as a description of the main risks and uncertainties for the remaining months of the financial year.
• the set of summarised financial statements, which have been drawn up in accordance with applicable accounting regulations, and which have been the subject of a review by the auditor, give a true representation of the financial situation and profits and losses of the Immobel Group and of its subsidiaries.

V. Auditor's report

June 2023 38 / 39 Immobel – Intermediate Report