Palmboomen Cultuur Maatschappij Mopoli (Palmeraies De Mopoli) N.V.

Business and Financial Review • Jul 2, 2020

PALMBOOMEN CULTUUR MAATSCHAPPIJ MOPOLI N.V.

DIRECTORS' INTERIM REPORT

IFRS Result as at 31/12/2019 (unaudited)

(Period from 01/07/2019 to 31/12/2019)

BUSINESS ACTIVITIES

Mopoli is a holding company with its main activity is currently granting several loans in related companies. The company is listed on the Belgium stock exchange.

The general meeting of shareholders has authorized the company to buy back its own shares. This program has been active for several years, however the availability of shares is limited. The strategy of the company remains to buy back their own shares in case any shares are offered to the market.

Mopoli has an outstanding loan to Socfinaf, Afico and Socfin.

As such, management recognizes that the main risk is credit risk regarding the recoverability of the loans.

For this risk, management is willing to accept the risk and does not hedge or mitigate these factors.

No formal risk procedures are implemented to mitigate the identified risks.

RESULTS

The financial half-year ended at 31 December 2019 with a profit of 246,979 Euros versus a profit of 332,015 Euros as at 31 December 2018.

The decrease of the half-year result is mainly due to the increase of the administrative costs.

BALANCE SHEET

At 31 December 2019, the total of the Mopoli IFRS Balance Sheet is 55.4 million Euros against 54.8 million Euros as at 31 December 2018. The Mopoli's asset is composed mainly of a non-current receivables for 9.0 million Euros, short-term receivables for 20.4 million Euros and a cash deposit of 26.0 million Euros. At 31 December 2019, the equity is 55.2 million Euros against 54.7 million Euros a year ago.

TREASURY SHARES

The Extraordinary General Meeting hold on the 10th June 2008 authorized the company to buy back its own shares pursuant article 2:98 of the Dutch Civil code. A fifth renewal was approved by the General Meeting on 18th December 2018 for 12 months from 10th Decembre 2018. At the year end, the company holds 5.904 ordinary and 219 founders shares.

FORECAST

Earnings will depend on the remuneration of loans and cash deposits.

RISKS – UNCERTAINTIES

The management do not foresee any specific or noted any new uncertainties that the company should have to face for the remaining six months of the financial year.

TRUE AND FAIR VIEW STATEMENT

With reference to section 5.25c paragraph 2c of the Financial Markets Supervision Act, the Board of Directors states that, to the best of its knowledge:

• · the financial statements which have been prepared in accordance with IFRS adopted by the European Union and with Part 9 of Book 2 of the Dutch Civil Code gives a true and fair view of the assets, liabilities, financial position and profit or loss of Mopoli;
• · the directors' report provides a fair review of the situation on the balance sheet date and of developments during the financial year of Mopoli whose information has been included in the financial statements, together with a description of the main risks the company faces.

MOPOLI BOARD OF DIRECTORS

Daniel Haas Philippe de Traux Director Director

AFICO represented by Luc Boedt Hubert Fabri Director Director

STATEMENT OF FINANCIAL POSITION at 31st December 2019

ASSETS

	Notes	31 December 2019	31 December 2018
		9 000	9 000
Available for sale investments		0	0
Other receivables	1	9 000	9 000
		46 438	45 785
Other receivables	1	20 400	20 380
Cash and short-term deposits	2	26 037	25 405
Other current assets		1	0
		55 438	54 785
	(in thousands of Euro) NON-CURRENT ASSETS CURRENT ASSETS TOTAL ASSETS

EQUITY AND LIABILITIES

(in thousands of Euro)	Notes	31 December 2019	31 December 2018
EQUITY		55 236	54 673
I. Share capital	3	2 314	2 314
II. Revaluation reserves	3	0	0
III. Statutory reserves	3	231	231
IV. Available reserves	3	523	523
V. Result for the year	3	247	332
VI. Retained earnings	3	55 295	54 647
VII. Treasury Shares	3	-3 374	-3 374
NON-CURRENT LIABILITIES		0	0
VIII. Deferred tax		0	0
IX. Other long-term payables		0	0
CURRENT LIABILITIES		202	112
X. Trade and other payables		202	112
XI. Other current liabilities		0	0
TOTAL EQUITY AND LIABILITIES		55 438	54 785

STATEMENT OF COMPREHENSIVE INCOME

At 31st December 2019 (in thousands of Euro)	Notes	31 December 2019	31 December 2018
I. Revenue		0	0
A. Dividends B. Other operating revenues		0 0	0 0
II. Other operating expenses		-197	-110
A. Administrative costs		-197	-110
Operating profit		-197	-110
III. Profit/Loss from non-current assets		0	0
IV. Financial income		601	623
V. Financial expenses		-67	-54
Profit before tax		337	459
VI. Income tax expense		-90	-127
Profit for the year		247	332
Other comprehensive income		31 December 2019	31 December 2018
Net loss/(gain) on available-for-sale financial Assets		0	0
Deferred taxes liabilities on unrealized gain on AFS		0	0
Net other comprehensive income to be reclassi fied to profit or loss in subsequent periods		0	0
Total comprehensive income for the year, net of tax	247	332
Profit attributable to equity holders of the parent		247	332
Total comprehensive income attributable to equity holders of the parent		247	332
Earnings per share (profit for the year attributable to common shares):
Basic earnings per share Diluted earnings per share	4 4	1.90 1.90	2.35 2.35
Earnings per share (profit for the year attributable to founder shares):
Basic earnings per share Diluted earnings per share	23.94 23.94	39.53 39.53

CASH FLOW STATEMENT at 31st December 2019

(in thousands of Euro)	Notes	31 December 2019	31 December 2018
Cash flows from operating activities		1 232	1 204
Profit for the year		247	332
Capital Gain on sale of available-for-sales investments		0	0
Variation of trade and other receivables		903	924
Variation of trade and other payables		82	-52
Cash flows from investing activities		0	0
Purchase of available-for-sale investments		0	0
Sales of available-for-sale investments		0	0
Cash flows from financing activities		0	0
Dividends paid		0	0
Purchase of treasury shares		0	0
Other long-term payables		0	0
Net increase in cash and cash equivalents		1 232	1 204
Cash and cash equivalents as at beginning of year		24 805	24 201
Cash and cash equivalents as at 31th December		26 037	25 405

STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY

As at 31st December 2019

( in ho ds f Eu ) t us an o ro	Nu be f m r o ha s re s	S ha re i l ta ca p E U R	Re lu t io va a n re se rv e E U R	S ta tu to ry re se rv es E U R	Av i la b le a re se rv es E U R	Re ta in d e in ea rn g s E U R	Pr f i t fo o r he t y ea r E U R	Tr ea su ry ha s re s E U R	To l ta E U R
Ba lan 3 0 Ju 2 0 1 7 t ce a s a ne	1 0 0 1 0 0	2 3 1 4	-	2 3 1	5 2 3	4 1 5 6 0	1 2 6 1 3	2 - 3 3 2	5 3 9 1 9
O t he he ive inc r c om p re ns om e									-
f fo Pr i t t he o r y ea r							4 8 1		4 8 1
To ta l c he ive inc for t he om p re ns om e y ea r		-	-	-	-	-	4 8 1	-	4 8 1
D iv i de ds n						3 -			3 -
fe fro Tr t iou an s r m p rev s y ea r						1 2 6 1 2	1 2 6 1 3 -		1 -
S Tr ha ea su ry re s								5 2 -	5 2 -
Ba lan t 3 0 Ju 2 0 1 8 ce a s a ne	1 0 0 1 0 0	2 3 1 4	-	2 3 1	5 2 3	5 4 1 6 9	4 8 1	4 - 3 3 7	5 4 3 4 4
O t he he ive inc r c om p re ns om e									-
f fo Pr i t t he o r ea r y							6 5 1		6 5 1
for To ta l c he ive inc t he om p re ns om e y ea r		-	-	-	-	-	6 5 1	-	6 5 1
D iv i de ds n						3 -			3 -
Tr fe fro iou t an s r m p rev s y ea r						4 8 1	4 8 1 -		-
Tr S ha ea su ry re s								-	-
Ba lan t 3 0 Ju 2 0 1 9 ce a s a ne	1 0 0 1 0 0	2 3 1 4	-	2 3 1	5 2 3	5 4 6 4 7	6 5 1	4 - 3 3 7	5 4 9 9 2
O he he ive inc t r c om p re ns om e									-
Pr f i fo he t t o r ea r y							2 4 7		2 4 7
for To ta l c he ive inc t he om p re ns om e y ea r		-	-	-	-	-	2 4 7	-	2 4 7
D iv i de ds n						3 -			3 -
Tr fe fro iou t an s r m p rev s y ea r						6 5 1	6 5 1 -		-
Tr S ha ea su ry re s								-	-
Ba lan 3 1 De be 2 0 1 9 t ce a s a ce m r	1 0 0 1 0 0	2 3 1 4	-	2 3 1	5 2 3	5 5 2 9 5	2 4 7	4 - 3 3 7	5 5 2 3 6

Note 1 : Other receivables

(in thousands of euro)	31 Dec 2019	30 June 2019
Loans granted Other receivables Interest to be received on loan granted	29 000 108 292	30 000 0 299
Total of Trade and other receivables	29 400	30 299
Trade and other receivables whose recovery is awaited 1 year at the most	20 400	21 299
Trade and other receivables whose recovery is awaited between 1 and 5 years	9 000	9 000
Trade and other receivables whose recovery is

The loan of Socfinaf is unchanged to EUR 20 000 000.

Afico reimburse in June 2018 EUR 1 000 000 for a remaining balance of EUR 9 000 000. A new loan of EUR 2 000 000 was granted to Socfin but is already reimbursed. These 3 loans are receivables on related parties. Also, the loan granted to Afico is a loan issued to a statutory director.

There is due interest on the loan to Socfinaf, Afico and Socfin for the last quarter.

Note 4 : Cash and cash equivalents

(in thousands of Euro)	31 Dec 2019	30 June 2019
Cash at banks and in hand	26 027	25 244
Short-term deposits	10	161
Cash and cash equivalents	26 037	25 405

Cash and cash-equivalents consist of cash in hand, bank balances and

short-term deposits in money market instruments. There are not undrawn borrowing facilities.

There is no restriction to the availability of cash and cash equivalents.

Note 3 : Equity

Capital (in units) Common shares Preferred shares Founder shares

Number of shares as at 30 June 2018	100 000	100	2 400
Changes during the year	0	0	0
Number of shares as at 30 June 2019	100 000	100	2 400
Changes during the year	0	0	0
Number of shares as at 31 December 2019	100 000	100	2 400
Number of shares issued, fully paid	100 000	100	2 400

The subscribed and fully paid capital of EUR 2,314,279 is represented as follows: 100,000: Common shares of a nominal value of Nlg 50 (EUR 22.69) (listed on Euronext Brussels) 100: Preferred stock of a nominal value of Nlg 1,000 (EUR 453.78) (not listed in the stock exchange) 2,400: Founders' shares with no nominal value. (listed on Euronext Brussels)

Shares outstanding (in units)	Common shares	Preferred shares	Founder shares
Number of shares outstanding as at 30 June 2018	94 096	100	2 181
Changes during the year	0	0	0
Number of shares as at 30 June 2019	94 096	100	2 181
Changes during the year	0	0	0
Number of shares as at 31 December 2019	94 096	100	2 181

At 31 December, the company owned 5.904 (2018: 5.904) of its own common shares, and 219 (2018: 219) of its founders shares.

The extraordinary general meeting as at 10th june 2008 authorised the company to acquire its own shares. The General Meeting as at 18th December 2019 renewed the authorization

for 12 months from 10th December 2019.

At 31 December, 219 founder's shares and 5.904 ordinary shares have been bought back for a total of 3 374 thousands euros, deducted from the Shareholder's equity.

Reserves (in thousands of Euro)	Statutory reserves	Available reserves
	Not distributable	Distributable
30 June 2018	231	523
Changes during the year	0	0
30 June 2019	231	523
Changes during the year	0	0
31 December 2019	231	523

The statutory reserves are relative to article 12,3. a) of the company statutes. These reserves are no more funded as they reached 10% of the capital.

Distribution of profit (in thousands of euro)	Retained earnings	Result for the year
30 June 2018	54 169	481
Profit of the year	0	651
Dividends	-3	0
Transfer from previous year	481	-481
30 June 2019	54 647	651
Profit of the year	0	247
Dividends	-3	0
Transfer from previous year	651	-651
31 December 2019	55 295	247

Note 4 : Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to common equity holders of the parent by the weighted average number of common shares outstanding during the year and by dividing net profit for the year attributable to founder shares by the weighted average number of founder shares outstanding during the year.

The group did not issue any financing instrument requiring to disclose a diluted earnings per share.

(in thousands of euro)	31 Dec 2018	31 Dec 2018
Numerator
Net profit from continuing operations Preference dividends Net profit	247 -3 244	332 -3 329
Net profit attributable to common shares Net profit attributable to founder shares	179 52	221 86
Denominator
Weighted average number of common shares Weighted average number of founder shares	94 096 2 181	94 096 2 181
Net profit attributable to common shares per common share (in euro)	1.90	2.35
Net profit attributable to founder shares per founder share (in euro)	23.94	39.53