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Ackermans & van Haaren NV

Earnings Release Feb 28, 2014

3903_er_2014-02-28_fe12c1e8-cfab-45d1-b3c9-99a6390fba64.pdf

Earnings Release

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Antwerp, February 28, 2014

Regulated information within the meaning of the Royal Decree of 14 November 2007

ANNUAL results 2013

PRESS RELEASE

Ackermans & van Haaren

Ackermans & van Haaren ended the 2013 financial year with a consolidated net profit of 293.9 million euros. This result includes a remeasurement income of 109.4 million euros which AvH had to recognize under the IFRS rules on the contribution of its 50% stake in DEME to CFE when it acquired control over CFE in December 2013.

Excluding that remeasurement income, the net profit amounts to 184.5 million euros (5.51 euros per share), which is a 10% increase on the net profit of 167.3 million euros in 2012.

• The banking segment of AvH reported an outstanding performance in 2013. Delen Private Bank managed to increase its assets under management to a new record level of 29.5 billion euros (2012: 25.9 billion euros) as a result of a substantial inflow of new client assets in Belgium and the United Kingdom. This trend was further strengthened by a positive development in the market value of the client assets of Delen Private Bank. Bank J.Van Breda & C° also saw the volume of assets entrusted by entrepreneurs and liberal professions increase by 1 billion euros to 9.0 billion euros. The increase in commission income, exceptionally low provisions for loan losses, and persistent cost control allowed Bank J.Van Breda & C° to amply offset the decreasing interest margin and realize a higher net profit.

• The particularly high level of activity at DEME was reflected in a turnover that for the first time topped 2.5 billion euros as well as in a higher net profit (109.1 million euros compared to 89.4 million euros in 2012). In 2013, DEME again won several major new contracts in various parts of the world, thereby maintaining its order book, despite the high turnover in 2013, above the three billion euro mark (3,049 million euros at year-end 2013 compared to 3,317 million euros at year-end 2012). As of 24 December 2013, AvH exercises exclusive control over CFE (and therefore over DEME as well) with a 60.4% stake. Since this transaction took place just a

Breakdown of the consolidated net result (part of the group) - IFRS

(€ mio) 2013 2012
Marine Engineering & Infrastructure 59.7 51.7
Private Banking 84.5 71.5
Real Estate, Leisure & Senior Care 15.8 3.6
Energy & Resources 8.7 16.4
Development Capital -6.6 5.9
Result of the participations 162.1 149.1
Capital gains development capital 29.5 22.7
Result of the participations (incl. capital gains) 191.6 171.8
AvH & subholdings -7.2 -3.9
Other non-recurrent results
(mainly remeasurement income on
contribution of 50% DEME to CFE in 2013)
109.5 -0.6
Consolidated net result 293.9 167.3*

* See revised financial statements 2012 (note 7)

few calendar days before the year-end, the impact on the income statement of AvH in 2013 is limited to the remeasurement under IFRS of the 50% stake which AvH contributed to CFE in the amount of 550 million euros. As from the 2014 financial year, AvH will recognize the higher shareholding percentage in DEME (60.4%) in its income statement and report a contribution from the other activities of CFE, which was not the case yet in 2013.

  • • A proactive portfolio management permitted Leasinvest Real Estate to let its real estate portfolio grow to 718 million euros. With the acquisition in the second half of 2013 of two additional shopping centres in Luxembourg and the sale of some smaller properties, 60% of LRE's real estate portfolio is now situated in the Grand Duchy of Luxembourg. The portfolio growth, coupled with a positive trend in the market value of the properties, led to a substantial increase in LRE's contribution to the group result. Extensa was able to make a profit again in 2013 as a result of a recovery in its property development results.
  • • Due to lower output volumes and lower market prices for both palm oil and rubber, Sipef's result decreased to 55.6 million USD (68.4 million USD in 2012). Nevertheless, Sipef is steadily working on the expansion of its production capacity with the construction of two new palm oil extraction plants and the sustainable expansion of its acreages in Indonesia and Papua New Guinea. Lower electricity prices and the changing regulatory framework in Flanders had an adverse effect on the profitability and prospects of the biomass power plant of Max Green in Rodenhuize. The cement activities of Sagar Cements in India, too, were confronted with difficult market conditions.
  • • In the Development Capital segment of AvH, performance is highly varied: in the first months of 2013, the stake in Spano group was sold with a capital gain of 34.0 million euros for AvH. In the case of certain other participations (particularly Hertel and Corelio), the results for 2013 are encumbered by substantial restructuring costs arising from a reorientation of their activities. Consequently, in 2013 the contribution of this segment as a whole fell short of expectations.

Dividend

The board of directors proposes to the ordinary general meeting of 26 May 2014 to increase the dividend per share to 1.70 euros, an increase of 2% compared to the dividend of 1.67 euros that was paid in 2013. This proposal amounts to a total dividend payment of 56.9 million euros.

Outlook 2014

The board of directors is positive about the group's outlook for the current financial year.

General comments on the figures

  • • The equity of AvH (group share) increased to 2,251.5 million euros on 31 December 2013, which corresponds to 67.22 euros per share. As at 31/12/2012, the equity stood at 2,003.3 million euros or 59.80 euros per share.
  • • AvH had a net cash position of -3.1 million euros at the end of 2013, compared to 87.9 million euros at the end of 2012. This decrease is primarily due to the payment to Vinci of 138.0 million euros for the acquisition of half its stake in CFE (3,066,440 shares). In addition, AvH paid out a dividend in June 2013 of 1.67 euros per share, resulting in a decrease in equity by 55.3 million euros. Besides cash and short-term deposits, the cash position consisted of 44.8 million euros in short-term investments (including treasury shares) and 38.9 million euros in short-term debt in the form of commercial paper.
  • • In addition to the acquisition referred to earlier of the 60.4% stake in CFE, for which 138 million euros was paid in cash, AvH made additional investments in several companies in its portfolio, mainly to strengthen their capital: Hertel (37.5 million euros), Anima Care (10.5 million euros), Atenor (0.9 million euros), and LRE (0.5 million euros). Furthermore, the stakes in Corelio, Sipef and Sagar Cements were slightly increased.
  • • AvH further streamlined its portfolio, primarily with the sale of its interest in Spano group (72.92% through Sofinim). The total divestments amounted to 135.3 million euros over the whole financial year.

Events after balance sheet date

  • • On 22 January 2014, CFE announced higher losses over the 2013 financial year for certain companies of the Contracting and Multitechnics divisions than what had been communicated in the publication of the half-year results. Furthermore, additional goodwill impairments were announced in the Multitechnics division. Those developments have no direct impact on the results of AvH, since the acquisition of control over CFE was only reported in the financial statements at year-end 2013.
  • • On 30 January 2014, LRE announced having sold the office building on Louisalaan 66 in Brussels for 10.4 million euros, which will show a limited capital gain in the 2014 accounts. This sale is in line with LRE's strategy of divesting smaller, non-strategic properties.
  • • On 11 February 2014, as a result of exceeding the 30% threshold of voting shares of CFE, AvH launched a mandatory public bid for all publicly held CFE shares. The bid was issued at the same price as the issue price of the capital increase of CFE, or 45 euros per share.

Key figures - consolidated balance sheet

(€ mio) 31.12.2013 31.12.2012
Net equity (part of the group -
before allocation of profit)
2,251.5 2,003.3*
Net cash position of AvH & subholdings -3.1 87.9

* Based on revised 2012 financial statements as a result of the amended IAS 19 Employee Benefits (see Condensed consolidated financial statements)

Key figures per share

(€) 31.12.2013 31.12.2012
Number of shares 33,496,904 33,496,904
Net result per share
Basic 8.87 5.05
Diluted 8.85 5.04
Gross dividend 1.70 1.67
Net dividend 1.2750 1.2525
Net equity per share 67.22 59.80
Stock price
Highest 85.16 65.09
Lowest 62.74 56.50
Closing price 85.16 62.27

MARINE ENGINEERING & Infrastructure

The particularly high level of activity at DEME was reflected in a turnover that for the first time topped 2.5 billion euros as well as in a higher net profit (109.1 million euros).

Contribution to the AvH consolidated net result

DEME

DEME (AvH 60.39% as of 2014; 50% in 2013) experienced a very strong 2013 and reported a turnover of 2,532 million euros (1,915 million euros in 2012). This substantial turnover growth (32%) was realized by a high level of activity, with good fleet occupancy, and was also helped by approx. 230 million euros worth of materials supplied to large-scale wind farm projects of GeoSea. The net result increased from 89 million euros in 2012 to 109 million euros in 2013.

The traditional dredging activities represented 62% of DEME's turnover in 2013. The marine and offshore engineering specialists, in particular GeoSea and Tideway, witnessed a vigorous growth buoyed by the rapidly growing renewable energy market and developments in the oil and gas industry. DEME's large-scale projects in Australia (Gladstone, Wheatstone) progressed in a positive way, and contributed favourably to DEME's turnover and profitability in 2013. In the Middle East, the construction of a new port in Doha (Qatar) is well under way.

DEME - Northwind

DEME

(€ mio) 2013 2012
Turnover 2,531.6 1,914.9
EBITDA 437.8 350.9
Net result 109.1 89.4
Equity 847.7 773.7
Net financial
position
-711.3 -741.9

In Abu Dhabi, an important project was, from a technical point of view, perfectly finished, but the considerable additional work and extra costs involved led to negotiations with the customer. DEME made cautious allowances for this in its figures.

The order book remained at a high level (more than 3 billion euros) thanks to contracts from across all continents and activities. Some major oil and gas related projects were concluded (in Colombia, Venezuela, Australia, Ireland and India), worth a total of 250 million euros. The group also signed a major contract for 148 ha of land reclamation for the extension of Jurong Island (Singapore), worth a total of 625 million euros, of which about half for DEME, and in addition, obtained new contracts in Brazil and Nigeria. GeoSea and Tideway added 200 million euros to the order book with the wind farms Kentish Flats Extension (United Kingdom) and Gode Wind (Germany).

With the payment for the Ambiorix cutter dredger at the beginning of 2013, DEME completed the final instalment of a major investment programme. The total capital expenditure over the year, including large repairs that were activated, amounted to 209 million euros for the whole financial year (2012: 343 million euros).

DEME diversified its long-term sources of funding in 2013 by issuing a retail bond for 200 million euros with six-year maturity.

DEME: Order book

CFE

At the end of 2013, AvH took a strategically important step with the acquisition of exclusive control over DEME, through CFE. The agreement that was entered into with Vinci in September, was completed on 24 December 2013.

As was announced earlier, AvH contributed its 50% stake in DEME to the capital of CFE as part of a capital increase by contribution in kind to the amount of 550 million euros in consideration of 12,222,222 newly issued CFE shares, and acquired 3,066,440 CFE shares (which before capital increase represented 23.42% of the capital of CFE) from Vinci at a price of 45 euros per share, for a total sum of 138 million euros.

As at 31 December 2013, AvH owned 15,288,662 CFE shares (60.39%).

By contributing its 50% stake in DEME to CFE, AvH evolved from a position of joint control to exclusive control. In accordance with IFRS rules, AvH was therefore under the obligation to revalue its 50% stake in the income statement. A remeasurement income of 109.4 million euros was reported in the income statement in respect of the difference between the contribution value of 550 million euros and the consolidated carrying value of DEME.

Apart from this remeasurement income, the acquisition of control over CFE has no impact on the 2013 income statement of AvH, as the new shareholding percentages will only be applied as from 1 January 2014. In the consolidated balance sheet as

per 31 December 2013, the stakes in CFE, DEME, Rent-A-Port and Rent-A-Port Energey are fully consolidated, resulting in a significant increase in the balance sheet total to 10,888 million euros (2012: 6,822 million euros). The acquisition of control over CFE and the reporting thereof as described above lead to the recognition of a goodwill of 252.3 million euros on DEME and a contingent liability of 60.3 million euros with respect to the other activities of CFE. After both transactions were closed, and as a result of exceeding the 30% threshold of

the voting shares of CFE, AvH launched a mandatory public tender offer for all publicly held CFE shares at a price of 45 euros per share. This offer expires on 5 March.

For the 2013 results of CFE we refer to the press release that CFE is issuing today.

A.A. Van Laere

A.A. Van Laere (AvH 100%) in 2013 suffered the consequences of an exceptionally long winter, which was reflected in a decrease in the consolidated turnover to 122 million euros (compared to 161 million euros in 2012). The successful completion of a number of projects allowed the group to report a positive result (0.7 million euros). Van Laere and Thiran made a positive contribution to the result, while Anmeco (steel constructions) and Alfa Park (car park operator) reported a loss. The consolidated order book was worth 169 million euros at year-end 2013, and this figure does not include the A11 project, in which Van Laere is part of the winning consortium. Including this project, Van Laere's order book reaches a record high, despite the difficult market conditions.

DEME - Doha (Qatar) Van Laere - Brussels Department of Environment

Rent-A-Port

For Rent-A-Port (AvH 72.18% as of 2014; 45% in 2013), 2013 was marked by continued growth in Vietnam and Oman, and by strategic reorientation in Nigeria. In Dinh Vu (Vietnam), more major sales transactions were concluded with industrial customers, and contracts were signed for new expansion zones. In Oman, besides the operation of the port of Duqm and the development of the logistics zones, a few complementary projects were started up. In Nigeria, the largest part of the OK Free Trade Zone was sold to the Dangote industrial group, which will carry on developing the project. Rent-A-Port realized a stable net profit in 2013 of 12.3 million euros.

Rent-A-Port Energy (AvH 73.15% as of 2014; 45.61% in 2013) continued to work on a number of renewable energy projects (such as the management of its stake in the three offshore wind farms of Otary, and onand offshore energy storage projects).

NMP

NMP (AvH 75%) in 2013 realized a turnover of 13.9 million euros (2012: 15.9 million euros) and a net result of 2.0 million euros (2012: 1.4 million euros), in line with expectations. The link between the ethylene terminal of Ineos C2T and the ethylene pipeline between Antwerp and Feluy, and the connection between the Antwerp-Geel and Antwerp-Beringen propylene pipelines were brought into service. In 2013, Nitraco (a joint venture with Praxair) acquired a 10.5 km pipeline in the Antwerp port area as part of a larger project that is scheduled to become operational in early 2016.

PRIVATE BANKING

Delen Investments and Bank J.Van Breda & C° reported an outstanding performance in 2013, and managed to grow their assets under management to a new record level.

Contribution to the AvH consolidated net result

Delen Private Bank (Brussels)

Delen Investments

The assets under management of the Delen Investments group (AvH 78.75%) attained a record high of 29,536 million euros at year-end 2013 (2012: 25,855 million euros). Both Delen Private Bank (20,210 million euros) and JM Finn & Co (9,326 million euros) contributed to this growth of 14.2%. The vigorous growth is the result of a positive impact of the financial markets on its client portfolios and of a substantial organic net growth (primarily at Delen Private Bank) in terms of both existing and new private clients. In 2013, the group continued with its strategy of optimizing the quality and efficiency of its asset management by aiming for a bigger share of management mandates. At year-end 2013, 74% (Delen Private Bank) and 63% (JM Finn & Co) of the assets under management were managed through direct discretionary management or through its own financial BEVEKs (openended investment trusts).

Primarily as a result of the higher level of assets under management, the gross revenues increased to 255.2 million euros (2012:

Delen Investments:

Assets under management

214.8 million euros). The cost-income ratio remained highly competitive at 54.8% (42.4% for Delen Private Bank, 84.5% for JM Finn & Co) but was slightly down on 2012 (55.2%). The net profit amounted to 76.0 million euros in 2013 (compared to 62.6 million euros in 2012), which includes the contribution of JM Finn & Co of 4.6 million euros.

Delen Investments

Discretionary mandates Advisory clients

(€ mio) 2013 2012
Gross revenues 255.2 214.8
Net result 76.0 62.6
Equity 464.1 414.5
Assets under
management
29,536 25,855
Core Tier 1
capital ratio (%)
25.3 23.1
Cost - income
ratio (%)
54.8 55.2

29,536 (€ mio)

The consolidated equity of Delen Investments stood at 464.1 million euros as at 31 December 2013 (compared to 414.5 million euros as at 31 December 2012). The group is more than adequately capitalized and amply satisfies the Basel II and Basel III criteria with respect to equity. The Core Tier 1 capital ratio stood at 25.3% at year-end 2013 and is well above the industry average.

In 2013, Delen Private Bank reopened its fully renovated offices in Ghent and Brussels.

Bank J.Van Breda & C°

2013 was another highly successful year for Bank J.Van Breda & C° (AvH 78.75%). The bank's sustained prudent approach and the high level of client satisfaction led to a steady growth in the commercial volumes. The total client assets increased by 13% to 9.0 billion euros, of which 3.7 billion euros client deposits (+8%) and 5.3 billion euros entrusted funds (+16%). This amount includes 3.0 billion euros managed by Delen Private Bank. Private lending continued to grow as well (+5%) to 3.5 billion euros, while provisions for loan losses were exceptionally low (0.04%).

This commercial success is reflected in a consolidated net profit of 31.5 million euros, which is a 14% increase on 2012, and this despite a difficult market environment. Notwithstanding continuous investment in new IT applications, in the commercial organization and renovation of offices, the cost-income ratio was 59% (2012: 58%). This puts the bank among the best performing Belgian banks.

The equity (group share) increased in 2013 from 427 million euros to 448 million euros and, as in previous years, was not adversely affected by impairments on financial instruments. This equity solidifies the bank's position to sustain its steady growth on a sound financial footing. By year-end 2010, Bank J.Van Breda & C° already amply satisfied all the tightened solvency criteria for the fu-

Bank J.Van Breda & C° (Antwerp)

ture, and in 2013 had a financial leverage (equity-to-assets ratio) of 10, and a Core Tier 1 capital ratio of 13.7%.

Bank J.Van Breda & C°

(€ mio) 2013 2012
Bank product 117.7 113.9
Net result 31.5 27.7
Equity 447.9 427.3
Entrusted funds 5,335 4,586
Client deposits 3,683 3,424
Private loans 3,455 3.306
Core Tier 1
capital ratio (%)
13.7 14.2
Cost - income ratio
(%)
58.9 58.3

The participation of Bank J.Van Breda & C° in ABK bank increased end 2013 from 91.8% to 99.9%.

ASCO-BDM

Insurance subsidiary ASCO-BDM (AvH 50%) continued in 2013 to focus on the selective underwriting of damage insurance policies, resulting in a slight premium decrease for BDM but an improvement in the technical result for ASCO.

* Including ABK (since 2011) and Van Breda Car Finance (private loans 2013: € 300 mio)

Real Estate & Leisure

A proactive portfolio management permitted Leasinvest Real Estate to let its real estate portfolio grow to 718 million euros. Extensa was able to make a profit again by a recovery in its real estate development results.

Contribution to the AvH consolidated net result

Leasinvest Real Estate

Leasinvest Real Estate (LRE, AvH 30.01%) consistently carried on its strategic reorientation in 2013. The significant retail investments in the Grand Duchy of Luxembourg (primarily the Knauf Pommerloch shopping centre) made Luxembourg the main investment market for LRE (60% of the real estate portfolio, compared to 40% in Belgium); retail thus became the principal asset class in the overall portfolio (retail 42%, offices 36%, and logistics 22%).

At year-end 2013, the fair value of this consolidated real estate portfolio, including project developments, stood at 718 million euros (compared to 618 million euros as at 31/12/2012). This 16% increase is primarily the result of the investments in the second Knauf shopping centre, the retail property leased to Hornbach, and further investments in the Royal20 project in Luxembourg. As a result of those investments, rental income increased to 45 million euros (38 million euros at year-end 2012).

LRE - Knauf Pommerloch shopping center

LRE: Portfolio in operation: 34 sites - 429,579 m2

(€ mio) 2013 2012
Real estate
portfolio fair value
(€ million)
718.2 617.8
Rental yield (%) 7.31 7.30
Occupancy rate
(%)
96.9 94.9

LRE: Real estate portfolio

  • Retail
  • Offices
  • Logistics/semi-industrial

As a result of the new (re)lettings and the fully let investments, the average duration of the portfolio increased from 4.9 years to 5.2 years. The occupancy rate rose from 95% (2012) to 97%. The rental yield, calculated on the fair value, was comparable to the previous year, namely 7.31% (2012: 7.30%).

LRE successfully implemented a capital increase in 2013 of 60.7 million euros, which for its share (30.01%) was backed by the AvH group, and issued 95 million euros worth of bonds on the public (75 million euros) and private (20 million euros) bond markets. Partly as a result of this, LRE's equity increased to 335 million euros (2012: 256 million euros), and the debt ratio decreased to 53.53%.

Leasinvest Real Estate - Motstraat (Mechelen)

Anima Care - Château d'Awans

Extensa - Brussels Department of Environment

LRE ended its 2013 financial year with a 31% increase in the net result to 27 million euros (21 million euros at year-end 2012).

Extensa

The net result of Extensa (AvH 100%) increased in 2013 to 4.5 million euros (compared to a loss of 5.3 million euros in 2012). Thus Extensa leaves behind it a few difficult years that were due to delays in obtaining permits and impairments on minority interests.

The developments and residential projects in Hasselt (Cederpark), Ghent (De Lange Velden) and Roeselare (De Munt) proceeded according to schedule. Sales of the remaining houses, apartments and building lots are planned for 2014.

On the Tour & Taxis site, the building for the Brussels Department of Environment was further finished and is scheduled for completion in the first half of 2014. The historical Post Office building was renovated and brought into use for events. Another project of 105 apartments and an office building of 48,000 m² is also planned on the site. The earthworks for the Cloche d'Or project (Luxembourg) have been started as well, and sales of the first phase of the residences are expected to begin in 2014.

Groupe Financière Duval

Groupe Financière Duval (AvH 41.14%) made every effort in 2013 to achieve further growth in its real estate and exploitation activities in a French context that continued to be marked by an economic slowdown. The turnover decreased from 514.1 million euros in 2012 to 500.7 million euros in 2013 (-3%) due to the timing of the real estate activities. The operating cash flow (EBITDA) increased from 25.9 million euros to 29.9 million euros (+15%), primarily as a result of growth in the Health division and the profitability of the Construction & Promotion division.

Anima Care

Anima Care (AvH 100%) realized a turnover in 2013 of 27.4 million euros, which is 34% up on 2012. This increase is primarily due to the acquisitions of 'Résidence St. James' in La Hulpe (59 beds) and 'Château d'Awans' in Liège (168 beds), which in the second half of 2013 began to contribute to the results. The profit of 0.6 million euros is in line with the 2012 result and was influenced by the extra costs in the inception phase of the new construction projects.

Anima Care also developed various new construction projects in 2013. The new residential care centre 'Les Comtes de Méan' in Blegny (150 beds) opened in October, and construction work began for the residential care centres 'Au Privilège' in Haut-Ittre (127 beds and 36 service flats), Kasterlee (133 beds and 63 service flats), and 'Zonnesteen' in Zemst (93 beds and 23 service flats). Those centres will open in 2014.

At year-end 2013, Anima Care had a portfolio of more than 1,300 retirement home beds and service flats, of which 834 retirement home beds and 60 service flats were in operation.

Energy & Resources

Due to lower output volumes and lower market prices for palm oil and rubber, Sipef's result decreased in 2013. Sagar Cements and Max Green were confronted with difficult market conditions.

Contribution to the AvH consolidated net result

Sipef

Plantation group Sipef (AvH 26.78%) was confronted in 2013 with lower production volumes and decreasing prices for palm oil, rubber and tea; consequently, the turnover was down 12.3% to 291.7 million USD (2012: 332.5 million USD). The gross margin, however, remained above 32%. The net result decreased by 18.7% to 55.6 million USD (2012: 68.4 million USD).

Disappointing agronomic indicators in Southeast Asia caused annual palm oil production to remain 4.5% below the record volumes of 2012, so that 2013 was a relatively poor production year. Extra output growth was only reported in the newly developed acreages in the UMW project in

Sipef

(USD mio) 2013 2012
Group production
(in T) (1)
Palm oil 253,912 265,778
Rubber 10,403 10,641
Tea 2,850 2,923
Turnover 291.7 332.5
EBIT 79.0 94.2
Net result 55.6 68.4
Equity 508.1 472.6
Net cash position -31.9 18.2

(1) Own + outgrowers

North Sumatra. The increasing yield from the gradually maturing new plantations could not make up for the poor production of the neighbouring farms in Papua New Guinea. The output volumes for rubber also fell short of expectations.

The market prices of palm oil witnessed relatively little volatility in 2013. Due to high production levels at the end of 2012, world stocks were too high at the start of the new year. With increased demand from the biodiesel industry and lower output volumes of palm oil, the balance could be gradually restored. In the second half of the year, high production volumes of soya beans weighed on market prices, but the announcement that Indonesia would impose an obligatory admixture of biodiesel in 2014 gave enough boost to the market price towards the yearend.

Weather conditions, sustainability procedures and technical limitations caused a delay in the implementation of the expansion plans in Papua New Guinea and Indonesia. Nevertheless, 1,459 hectares were added to the planted acreage of the group, which now stands at 66,942 hectares, of which 17.6% has not yet reached the production stage.

Sagar Cements

Sagar Cements (AvH 18.55%) in 2013 still had to contend with overcapacity and low demand in the southern part of India, resulting in lower prices and sales volumes. At the end of the year, capacity utilization even reached a record low of 49%. The general profitability was also affected by significant

Sipef

Sipef - Oil palm pre-nursery in Hargy Oil Palms (Papua New Guinea)

increases in electricity and coal prices, the impact of which could only partially be mitigated by switching to cheaper local coal. As a result, Sagar Cements ended the year with a loss of 2.4 million euros (net profit 2012: 2.2 million euros).

The construction of a railway line to link the production plant to the nearby national railway network is progressing satisfactorily and is expected to be completed in 2014.

Oriental Quarries & Mines

Oriental Quarries & Mines (AvH 50%) was confronted in 2013 with a weak construction market and with changes in the regulatory framework of the mining industry, which led to the temporary closure of the stone crushers in Bilaua and Bangalore. By focusing on the stimulation of sales in

Bangalore, the streamlining of production processes at the new quarry in Moth, and the start-up of operations in Bilaua in June, OQM realized a turnover in 2013 of 4.9 million euros, which is 54% up on the previous year. The net result is positive again, compared to a loss in 2012 (which was then adversely affected by the relocation of two stone crushers).

Max Green

The Rodenhuize biomass power plant of Max Green (AvH 18.9%) was subjected to a scheduled major overhaul in 2013. Due to technical complications, the original planning had to be changed, resulting in lower availability. The technical performance of the power plant, however, increased slightly. Due to that lower availability, the plant generated 1.26 TWh green sustainable

Oriental Quarries & Mines Max Green - Rodenhuize (Ghent)

electricity in the past year compared to 1.46 TWh in 2012.

Besides low availability and decreasing market prices for electricity and green power certificates, new changes in the regulatory framework also had a negative impact on the company's result. The turnover amounted to 157 million euros (193 million euros in 2012), and the EBITDA to 0.4 million euros (11.0 million euros in 2012).

Telemond

Telemond Group (AvH 50%) exceeded its targets in 2013, among other things by extending its product range. Teleskop has now become the leading European player in the processing of high-grade steel. The turnover amounted to 79 million euros (74 million euros in 2012) and the net result was 6.6 million euros (3.1 million euros in 2012).

The difficult market conditions which Max Green (decreasing electricity prices and changes in the regulatory framework) and Sagar Cements (market overcapacity resulting in low capacity utilization) are facing, forced AvH to revise the book value of those group companies downward.

DEVElopment Capital

Performance in the Development Capital segment is mixed: a substantial capital gain was realized on the sale of the stake in Spano, while restructuring costs and impairments continued to depress the contribution from the other companies in 2013.

Contribution to the AvH consolidated net result

Adjusted net asset value

(€ mio) 2013 2012
Sofinim 493.2 466.4
Unrealised capital
gains Atenor
8.2 6.2
Market value
Groupe Flo/Trasys
10.0 8.4
Total 511.4 481.0

In 2013, Sofinim sold its 72.92% stake in Spano group to the Unilin group. A capital gain of 34.0 million euros (AvH share) was realized on this sale, as well as an annual return (IRR) of 19% (since the investment in 2007).

The result of Atenor Group (Sofinim 11.8%) was primarily influenced by the sale of apartments in the tower block UP-site in Brussels, the start-up of the Trébel project, which was sold to the European Parliament, and the construction of the Port du Bon Dieu project in Namur. Atenor will announce its results on 3 March 2014.

In 2013, the Corelio (Sofinim 22.01%) and Concentra media groups brought together their Flemish newspapers and digital publishing operations in a new company, Mediahuis (Corelio 62%, Concentra 38%). The final implementation, which besides the social aspect also involves the relocation of the Nieuwsblad editorial office to the Mediahuis site in Antwerp, is now in progress. Corelio also reached an agreement with the Tecteo group on the transfer of its Frenchlanguage publishing activities. This will probably be finalized in the spring of 2014, subject to the approval of the competition authorities. The impairment within De Vijver Media (Corelio 33%) and the non-recurring costs resulting from restructuring and strategic initiatives had a significant negative impact on the annual results of the Corelio group. The net result amounted to -26.7 million euros, compared to -3.9 million euros in 2012.

Although Distriplus (Sofinim 50%) still experienced a difficult economic environment in 2013, it nevertheless realized a stable turnover of 247 million euros. The three chains each developed their own commercial strategy. Planet Parfum now also offers its gift cards through Colruyt and Presshop. The repositioning of Di led to a growth in market share, an increase in turnover and better margins. Club implements a new organizational model to respond more effectively to market trends. The group delivered a breakeven result, due in part to extraordinary costs.

Egemin Automation (Sofinim 60.86%), managed to surpass planned sales in all divisions, despite the postponement of new projects and longer decision cycles of its customers. Nevertheless, Egemin. The total order intake came to 115 million euros. Efforts to optimize sales and operational processes yielded positive results in 2013. A better selection of orders by a stronger focus on particular target markets and a tighter control over the execution of assignments led to a marked margin improvement, allowing Egemin to close the year with a net profit of 2.4 million euros (2012: 1.8 million euros).

For Euro Media Group (Sofinim 22.2%), 2013 was essentially characterized by the acquisition of the technical facilities of Alfacam, which specializes in the broadcasting and international wireless transmission of pictures. The group thus consolidated its leading position in this activity and has become world leader in wireless transmission facilities. The group once again played an important part in the broadcasting of major sporting events (such as the UEFA Champions League, the centenary edition of the

Tour de France), media events (such as the coronation of King Willem-Alexander) and miscellaneous television shows (such as The Voice, the BAFTA Awards). The decrease in net result to 9.4 million euros (2012: 21.6 million euros) was influenced by restructuring costs in the French operations, an impairment on part of the French operations specializing in the rental of equipment, and a substantial capital gain on the sale of the real estate that EMG owned in Bry-sur-Marne. In view of the losses made in the French operations of EMG, Sofinim recorded an impairment against the 2013 result.

The turnover of Groupe Flo (GIB 47.13%) decreased in 2013 to 347 million euros (-5.2% or -4.6% on a like-for-like basis). Groupe Flo recorded a decline in consumption and in turnover for all brands, although Tablapizza and the more upmarket segment of brasseries were able to stand firm. The group continued to focus on strengthening its leading Hippopotamus brand by opening nine new restaurants (of which six franchises) during the year. The net result decreased to 8.0 million euros (compared to 12.5 million euros in 2012). The group also carried on reducing its debt burden in 2013 and maintains a sound financial structure, with a leverage of 1.6 (net financial debt/EBITDA).

The turnover of Hertel (Sofinim 46.55%) decreased in 2013 by 15% to 767 million euros as a result of the sale of the subsidiaries Temati and Hertel Solutions in 2012, the closing down of operations (Kazakhstan in 2012, France in 2013), and the more selective acceptance of new projects. These initiatives were in line with the strategy of Hertel to shift focus to the execution of its core activities. Nevertheless, 2013 was financially a very disappointing year, with Hertel ending the year with a net loss of 34.4 million euros as a result of restructuring costs (such as the closure costs in France), goodwill impairments on certain earlier acquisitions, and other non-recurring elements. Despite the loss, the various improvement programmes strengthen the company's operational processes, and this is reflected in the stable positive results of the activities in its key markets in Europe. The capital injection carried out by its shareholders (NPM Capital and Sofinim) substantially bolstered Hertel's financial structure, which was further reinforced by intensive working capital management, and led to a reduction in the net financial debt to 36 million euros at year-end 2013 (2012: -102 million euros).

Manuchar (Sofinim 30%) is now well on the way to winning a top three position on the chemicals distribution market in the growth markets. By investing in several new warehouses, Manuchar wants to gain better control over the quality of service, a leaner cost structure, and more long-term certainty for customers. 2013 was also a very positive year for steel and non-ferrous trading operations, with a vigorous growth in turnover. As part of its trading activities in other commodities, Manuchar also took over the operations of one of its main suppliers to become the main exporter of hardwood in Europe. Manuchar realized a net profit in 2013 of 4.6 million euros (2012: 3.6 million euros).

NMC (Sofinim 29.82%) reported a slight turnover increase in 2013 by 0.8% (to 197 million euros), primarily by the mid-year acquisition of Sundquist Components in Sweden and the adjustment of sale prices in line with higher raw materials prices. The Drive3 internal improvement programme led to a marked productivity increase and an 17% growth in the net result to 11.9 million euros.

Trasys (GIB 83.9%) renewed a substantial number of contracts in a highly competi-

tive IT market. New customers were also won among the European institutions, the federal and regional authorities, the manufacturing industry, and the financial services sector. As a result, Trasys achieved a 5.6% turnover growth to 73 million euros, and a 47% increase in net result to 2.8 million Manuchar Hertel

euros.

Turbo's Hoet Groep (Sofinim 50%): In Europe, about 8.3% more new trucks were registered in 2013 than in 2012, but in the markets (Belgium, France, Bulgaria) where Turbotrucks is active, a 1% decrease was recorded. In Russia and Belarus, there was even a significant decline in the market. Turbotrucks sold about 19% less new trucks in 2013 than in 2012, a decrease that is virtually entirely attributable to the shrinking Russian and Belarusian markets. Following reorganizations in 2011 and 2012, Turboparts was again able to increase its turnover in 2013. The leasing and renting operations remained stable and highly profitable. The group realized a turnover in 2013 of 406 million euros (2012: 471 million euros) and a net result of 5.6 million euros (2012: 7.8 million euros). THG has a total of 25 sites in Belgium, France, Russia, Bulgaria and Belarus. In 2013, a big new garage was opened in Moscow, the garage in Namur was thoroughly refurbished, and the site in Torhout was sold.

Consolidated Income statement (by nature) (€ 1,000) 2013 2012
Revenue 521,752 556,128
Rendering of services 42,550 37,756
Lease revenue 10,500 10,021
Real estate revenue 55,028 40,393
Interest income - banking activities 125,958 139,642
Fees and commissions - banking activities 31,601 26,772
Revenue from construction contracts 240,269 287,340
Other operating revenue 15,845 14,204
Other operating income 4,356 5,382
Interest on financial fixed assets - receivables 1,297 2,837
Dividends 2,978 2,427
Government grants 0 0
Other operating income 81 118
Operating expenses (-) -457,187 -490,955
Raw materials and consumables used (-) -151,456 -196,490
Changes in inventories of finished goods, raw materials & consumables (-) -369 1,142
Interest expenses Bank J.Van Breda & C° (-) -57,951 -68,836
Employee expenses (-) -126,172 -118,440
Depreciation (-) -13,663 -11,722
Impairment losses (-) -16,945 -6,090
Other operating expenses (-) -90,887 -92,359
Provisions 257 1,841
Profit (loss) from operating activities 68,921 70,555
Profit (loss) on assets/liabilities designated at fair value through profit and loss 4,525 923
Development capital 12 5,493
Financial assets held for trading 64 467
Investment property 883 -239
Derivative financial instruments 3,565 -4,799
Profit (loss) on disposal of assets 48,894 36,710
Realised gain (loss) on intangible and tangible assets 622 66
Realised gain (loss) on investment property 256 220
Realised gain (loss) on financial fixed assets 46,011 30,110
Realised gain (loss) on other assets 2,005 6,314
Finance income 5,145 5,209
Interest income 3,665 3,138
Other finance income 1,480 2,071
Finance costs (-) -21,542 -18,030
Interest expenses (-) -11,966 -10,677
Other finance costs (-) -9,576 -7,352
Share of profit (loss) from equity accounted investments 153,333 133,761
Other non-operating income 109,399 60
Other non-operating expenses (-) 0 -60,125
Profit (loss) before tax 368,676 169,063
Income taxes -20,985 41,616
Deferred taxes -7,491 55,131
Current taxes -13,495 -13,515
Profit (loss) after tax from continuing operations 347,690 210,679
Profit (loss) after tax from discontinued operations 0 0
Profit (loss) of the period 347,690 210,679
Minority interests 53,790 43,336
Share of the group 293,901 167,343
EARNINGS PER SHARE (€)
1. Basic earnings per share
1.1. from continued and discontinued operations 8.87 5.05
1.2. from continued operations 8.87 5.05
2. Diluted earnings per share
2.1. from continued and discontinued operations 8.85 5.04
2.2. from continued operations 8.85 5.04

Declaration by the auditor

The auditor has confirmed that his review of the consolidated annual accounts has been completed and that no meaningful corrections have come to its attention that would require an adjustment to the accounting information included in this press release.

Antwerp, February 27, 2014 Ernst & Young Bedrijfsrevisoren BCVBA represented by Marnix Van Dooren Partner

The complete version of the annual results, including the financial statements, is available on the website www.avh.be.

Ackermans & van Haaren is a

diversified group active in 5 key sectors: Infrastructure & Marine Engineering (DEME, one of the largest dredging companies in the world - CFE and A.A. Van Laere, two construction groups with headquarters in Belgium), Private Banking (Delen Private Bank, one of the largest independent private asset managers in Belgium, and asset manager JM Finn in the UK - Bank J. Van Breda & C°, niche bank for entrepreneurs and liberal professions in Belgium), Real Estate, Leisure & Senior Care (Leasinvest Real Estate, a listed real-estate investment trust - Extensa, an important land and real estate developer focused on Belgium, Luxembourg and Central Europe), Energy & Resources (Sipef, an agro-industrial group in tropical agriculture) and Development Capital (Sofinim and GIB). In 2013, through its share in its participations (incl. CFE), the AvH group represented a turnover of 5.7 billion euro and employed 22.706 people. The group concentrates on a limited number of strategic participations with significant potential for growth. AvH is quoted on the BEL20 index, the Private Equity NXT index of Euronext Brussels and the European DJ Stoxx 600.

Website

All press releases issued by AvH and its most important group companies as well as the 'Investor Presentation' can also be consulted on the AvH website: www.avh.be. Anyone who is interested to receive the press releases via email has to register to this website.

Contact

For further information please contact:

Luc Bertrand CEO - President Executive Committee Tel. +32.3.897.92.42

Jan Suykens Member Executive Committee Tel. +32.3.897.92.36

Tom Bamelis Member Executive Committee Tel. +32.3.897.92.42

e-mail: [email protected]

Financial calendar

31 March 2014 Annual report
2013
16 May 2014 Interim statement
Q1 2014
26 May 2014 Ordinary general
meeting
28 August 2014 Half-year results
2014
18 November 2014 Interim statement
Q3 2014
27 February 2015 Annual report
2014

AvH Strategic business segments

Ackermans & van Haaren NV Begijnenvest 113 2000 Antwerp, Belgium Tel. +32 3 231 87 70 [email protected] - www.avh.be

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Consolidated income statement
2. Consolidated statement of comprehensive income
3. Consolidated balance sheet
4. Consolidated cash fl ow statement
5. Statement of changes in equity
6. Segment reporting
Consolidated income statement per segment
Consolidated balance sheet per segment
Consolidated cash flow statement per segment
7. Restated fi nancial statements 2012
8. Explanatory notes to the fi nancial statements
9. Events after balance sheet date
(€ 1,000) 2013 2012 *
Revenue 521,752 556,128
Rendering of services 42,550 37,756
Lease revenue 10,500 10,021
Real estate revenue 55,028 40,393
Interest income - banking activities 125,958 139,642
Fees and commissions - banking activities 31,601 26,772
Revenue from construction contracts 240,269 287,340
Other operating revenue 15,845 14,204
Other operating income 4,356 5,382
Interest on fi nancial fi xed assets - receivables 1,297 2,837
Dividends 2,978 2,427
Government grants 0 0
Other operating income 81 118
Operating expenses (-) -457,187 -490,955
Raw materials and consumables used (-) -151,456 -196,490
Changes in inventories of fi nished goods, raw materials & consumables (-) -369 1,142
Interest expenses Bank J.Van Breda & C° (-) -57,951 -68,836
Employee expenses (-) -126,172 -118,440
Depreciation (-) -13,663 -11,722
Impairment losses (-) -16,945 -6,090
Other operating expenses (-) -90,887 -92,359
Provisions 257 1,841
Profi t (loss) from operating activities 68,921 70,555
Profi t (loss) on assets/liabilities designated at fair value through profi t and loss 4,525 923
Development capital 12 5,493
Financial assets held for trading 64 467
Investment property 883 -239
Derivative fi nancial instruments 3,565 -4,799
Profi t (loss) on disposal of assets 48,894 36,710
Realised gain (loss) on intangible and tangible assets 622 66
Realised gain (loss) on investment property 256 220
Realised gain (loss) on fi nancial fi xed assets 46,011 30,110
Realised gain (loss) on other assets 2,005 6,314
Finance income 5,145 5,209
Interest income 3,665 3,138
Other fi nance income 1,480 2,071
Finance costs (-) -21,542 -18,030
Interest expenses (-) -11,966 -10,677
Other fi nance costs (-) -9,576 -7,352
Share of profi t (loss) from equity accounted investments 153,333 133,761
Other non-operating income 109,399 60
Other non-operating expenses (-) 0 -60,125
Profi t (loss) before tax 368,676 169,063
Income taxes -20,985 41,616
Deferred taxes -7,491 55,131
Current taxes -13,495 -13,515
Profi t (loss) after tax from continuing operations 347,690 210,679
Profi t (loss) after tax from discontinued operations 0 0
Profi t (loss) of the period 347,690 210,679
Minority interests 53,790 43,336
Share of the group 293,901 167,343
EARNINGS PER SHARE (€)
1. Basic earnings per share
1.1. from continued and discontinued operations 8.87 5.05
1.2. from continued operations 8.87 5.05
2. Diluted earnings per share
2.1. from continued and discontinued operations 8.85 5.04
2.2. from continued operations 8.85 5.04
2. Consolidated statement of comprehensive income
(€ 1,000) 2013 2012 *
Profi t (loss) of the period 347,690 210,679
Minority interests 53,790 43,336
Share of the group 293,901 167,343
Other comprehensive income 25,703 4,413
Items that may be reclassifi ed to profi t or loss in subsequent periods
Net changes in revaluation reserve: fi nancial assets available for sale 6,588 19,128
Net changes in revaluation reserve: hedging reserves 28,445 -14,959
Net changes in revaluation reserve: translation differences -14,653 1,141
Items that cannot be reclassifi ed to profi t or loss in subsequent periods
Net changes in revaluation reserve: actuarial gains (losses) defi ned benefi t pension plans 5,324 -896
Total comprehensive income 373,393 215,092
Minority interests 60,211 39,173
Share of the group 313,182 175,919

The recognition at fair value of securities available for sale had a positive impact of 6.6 million euros in 2013. It involves unrealized (i.e. only in the accounts) adjustments to the value of assets that were still in portfolio as at 31 December 2013 but are available for sale. The positive adjustments are primarily explained by the positive evolution of the investment portfolio and of the financial assets available for sale. Value adjustments have also been made in the portfolios of Delen Investments, Leasinvest Real Estate and Bank J.Van Breda & C°.

Hedging reserves arise from fluctuations in the fair value of hedging instruments taken out by several group companies to hedge against certain risks. Several companies in which AvH has a stake (such as DEME, Leasinvest Real Estate) have hedged against a potential rise in interest rates. As a result of the acquisition of control over CFE (and therefore over DEME), the hedges which were taken out by DEME were treated as realized in the consolidated financial statements. Consequently, the entire negative value that was calculated on the basis of the remaining term of the instruments is now all at once treated as realized, and the corresponding amount is eliminated from the unrealized results. Apart from this effect with respect to DEME, the hedging instruments of Leasinvest Real Estate and Bank J.Van Breda & C° evolved positively.

The explanation for the negative trend in the item 'Translation differences' is partly the same as for the change in the hedging reserve: by the acquisition of control over CFE (and DEME), the translation differences that were accumulated at DEME are treated as realized and are consequently eliminated from this item. For the rest, the movement is explained by exchange rate fluctuations in relation to the Euro of several currencies connected with the stakes in Sipef, Sagar Cements, Oriental Quarries, Rent-A-Port, etc.

3. Consolidated balance sheet - Assets
(€ 1,000) 2013 2012 *
I. Non-current assets 6,936,411 4,763,268
Intangible assets 33,437 13,227
Goodwill 436,967 142,239
Tangible assets 1,680,703 135,416
Land and buildings 188,853 96,287
Plant, machinery and equipment 1,446,946 17,836
Furniture and vehicles 23,048 8,343
Other tangible assets 2,858 2,000
Assets under construction and advance payments 18,606 5,514
Operating lease - as lessor (IAS 17) 392 5,436
Investment property 700,247 584,481
Participations accounted for using the equity method 1,136,991 1,356,041
Financial fi xed assets 299,280 141,362
Development capital participations 0 0
Available for sale fi nancial fi xed assets 83,184 63,594
Receivables and warranties 216,096 77,768
Non-current hedging instruments 2,340 1,195
Amounts receivable after one year 122,010 117,133
Trade debtors 44 0
Finance lease receivables 113,106 111,039
Other receivables 8,860 6,093
Deferred tax assets 58,146 25,165
Banks - receivables from credit institutions and clients after one year 2,466,291 2,247,010
II. Current assets 3,939,559 1,978,000
Inventories 137,466 22,644
Amounts due from customers under construction contracts 177,964 39,708
Investments 665,262 540,491
Available for sale fi nancial assets 664,908 537,971
Financial assets held for trading 354 2,520
Current hedging instruments 12,150 2,437
Amounts receivable within one year 1,239,296 205,832
Trade debtors 1,101,082 89,403
Finance lease receivables 42,007 40,720
Other receivables 96,207 75,709
Current tax receivables 1,782 2,151
Banks - receivables from credit institutions and clients within one year 903,709 986,063
Banks - loans and advances to banks 59,706 63,521
Banks - loans and receivables (excluding fi nance leases) 841,457 919,546
Banks - cash balances with central banks 2,546 2,996
Geldmiddelen en kasequivalenten 767,009 171,784
Time deposits for less than three months 115,192 100,977
Cash 651,817 70,807
Deferred charges and accrued income 34,921 6,889
III. Assets held for sale 11,544 80,618
TOTAL ASSETS 10,887,514 6,821,885
Consolidated balance - Equity and liabilities
(€ 1,000) 2013 2012 *
I. Total equity 3,277,362 2,514,231
Equity - group share 2,251,539 2,003,267
Issued capital 113,907 113,907
Share capital 2,295 2,295
Share premium 111,612 111,612
Consolidated reserves 2,140,707 1,905,870
Revaluation reserves 15,616 145
Financial assets available for sale 39,780 33,626
Hedging reserves -6,361 -28,121
Actuarial gains (losses) defi ned benefi t pension plans -3,582 -5,196
Translation differences -14,220 -165
Treasury shares (-) -18,692 -16,655
Minority interests 1,025,823 510,964
II. Non-current liabilities 2,272,138 1,118,198
Provisions 81,388 5,884
Pension liabilities 44,535 4,195
Deferred tax liabilities 37,664 11,211
Financial debts 1,168,098 296,321
Bank loans
Bonds
838,211
295,405
284,794
0
Subordinated loans 3,173 1,190
Finance leases 26,746 10,131
Other fi nancial debts 4,563 207
Non-current hedging instruments 38,933 37,781
Other amounts payable after one year 107,411 6,360
Banks - non-current debts to credit institutions, clients & securities 794,108 756,445
Banks - deposits from credit institutions 832 0
Banks - deposits from clients 715,368 670,444
Banks - debt certifi cates including bonds 8 5,206
Banks - subordinated liabilities 77,900 80,795
III. Current liabilities 5,338,014 3,189,456
Provisions 34,658 114
Pension liabilities 208 180
Financial debts 596,218 273,057
Bank loans 212,091 131,958
Bonds 100,000 0
Finance leases 5,393 1,270
Other fi nancial debts 278,733 139,829
Current hedging instruments 18,376 9,506
Amounts due to customers under construction contracts 194,181 25,398
Other amounts payable within one year 1,295,027 103,894
Trade payables 1,052,723 66,025
Advances received on construction contracts 1,837 2,130
Amounts payable regarding remuneration and social security 154,750 23,172
Other amounts payable 85,717 12,567
Current tax payables 16,701 9,860
Banks - current debts to credit institutions, clients & securities 3,123,241 2,745,651
Banks - deposits from credit institutions 105,488 68,647
Banks - deposits from clients 2,883,169 2,657,500
Banks - debt certifi cates including bonds 128,011 12,994
Banks - subordinated liabilities 6,573 6,510
Accrued charges and deferred income 59,403 21,795
IV. Liabilities held for sale 0 0
4. Consolidated cash flow statement (indirect method)
(€ 1,000) 2013 2012 *
I. Cash and cash equivalents, opening balance 171,784 284,896
Profi t (loss) from operating activities 68,921 70,555
Dividends from participations accounted for using the equity method 46,980 46,984
Other non-operating income (expenses) 0 -60,057
Income taxes -20,985 41,616
Non-cash adjustments
Depreciation 13,663 11,722
Impairment losses 16,958 6,799
Share based payment 1,362 149
(Decrease) increase of provisions -23 -2,133
(Decrease) increase of deferred taxes 7,491 -55,131
Other non-cash expenses (income) 8,003 6,955
Cash fl ow 142,369 67,460
Decrease (increase) of working capital 258,873 -238,609
Decrease (increase) of inventories and construction contracts 6,593 -4,537
Decrease (increase) of amounts receivable -12,695 -17,401
Decrease (increase) of receivables from credit institutions and clients (banks) -139,703 -224,207
Increase (decrease) of liabilities (other than fi nancial debts) -1,322 -14,079
Increase (decrease) of debts to credit institutions, clients & securities (banks) 411,402 21,391
Decrease (increase) other -5,402 224
CASH FLOW FROM OPERATING ACTIVITIES 401,242 -171,149
Investments -884,575 -770,361
Acquisition of intangible and tangible assets -39,879 -25,570
Acquisition of investment property -101,873 -107,761
Acquisition of fi nancial fi xed assets -165,265 -49,357
New amounts receivable -52,712 -138
Acquisition of investments -524,846 -587,536
Divestments 554,683 782,229
Disposal of intangible and tangible assets 1,608 1,214
Disposal of investment property 28,915 4,119
Disposal of fi nancial fi xed assets 107,067 55,958
Reimbursements of amounts receivable 28,325 5,243
Disposal of investments 388,768 715,695
CASH FLOW FROM INVESTING ACTIVITIES -329,892 11,868
Financial operations
Interest received 3,665 2,842
Interest paid -11,966 -9,389
Other fi nancial income (costs) -8,551 -5,747
Decrease (increase) of treasury shares -3,048 403
(Decrease) increase of fi nancial debts 131,644 117,031
Distribution of profi ts -55,349 -54,349
Dividends paid to minority interests -23,290 -19,347
CASH FLOW FROM FINANCIAL ACTIVITIES 33,106 31,444
II. Net increase (decrease) in cash and cash equivalents 104,456 -127,836
Change in consolidation scope or method 448,334 14,854
Capital increase Leasinvest Real Estate (minority interests) 41,976
Impact of exchange rate changes on cash and cash equivalents 459 -129
III. Cash and cash equivalents - ending balance 767,009 171,784

5. Statement of changes in equity

Revaluation reserves
(€ 1,000) Issued capital & share
premium
Consolidated reserves available for sale
Financial assets
Hedging reserves defi ned benefi t pension
Actuarial gains (losses)
plans
Translation differences Treasury shares Equity - group share Minority interests Total equity
Opening balance, 1 January 2012 113,907 1,788,930 16,112 -20,875 0 1,930 -17,375 1,882,631 482,364 2,364,994
Restatement IAS 19 Employee benefi ts 766 -3,374 -2,608 -57 -2,666
Restatement Development Capital 1,971 2,392 -521 -926 -3,176 -261 5,243 4,982
Restated opening balance,
1 January 2012
113,907 1,791,666 18,504 -21,396 -4,300 -1,245 -17,375 1,879,761 487,549 2,367,311
Profi t 167,343 167,343 43,336 210,679
Non-realised results 15,122 -6,725 -896 1,076 8,577 -4,163 4,413
Total of realised and
unrealised results
0 167,343 15,122 -6,725 -896 1,076 0 175,919 39,173 215,092
Distribution of dividends of
the previous fi nancial year
-54,349 -54,349 -18,384 -72,733
Operations with treasury shares 720 720 720
Other (a.o. changes in consol,
scope / benefi cial interest %)
1,211 5 1,216 2,626 3,842
Ending balance, 31 December 2012 113,907 1,905,870 33,626 -28,121 -5,196 -165 -16,655 2,003,267 510,964 2,514,231
Revaluation reserves
(€ 1,000) Issued capital & share
premium
Consolidated reserves available for sale
Financial assets
Hedging reserves defi ned benefi t pension
Actuarial gains (losses)
plans
Translation differences Treasury shares Equity - group share Minority interests Total equity
Opening balance, 1 January 2013 113,907 1,905,870 33,626 -28,121 -5,196 -165 -16,655 2,003,267 510,964 2,514,231
Profi t 293,901 293,901 53,790 347,690
Non-realised results 6,154 21,973 5,106 -13,951 19,281 6,422 25,703
Total of realised and
unrealised results
0 293,901 6,154 21,973 5,106 -13,951 0 313,182 60,211 373,393
Distribution of dividends of
the previous fi nancial year
-55,349 -55,349 -21,982 -77,331
Operations with treasury shares -2,037 -2,037 -2,037
Change in consolidation scope (CFE) -212 -3,492 -105 -3,809 452,584 448,774

In 2013, AvH purchased 75,000 treasury shares to cover present and future option obligations of the Group. During the same period, 72,000 treasury shares were sold following the exercise of stock options. On balance, AvH holds, either directly or through its subsidiary Brinvest, a total of 358,500 treasury shares, which is 3,000 more than at year-end 2012. At year-end 2013, AvH has outstanding option obligations on 330,500 shares.

Other -3,716 -3,716 24,046 20,330 Ending balance, 31 December 2013 113,907 2,140,707 39,780 -6,361 -3,582 -14,220 -18,692 2,251,539 1,025,823 3,277,362

In 2013, AvH concluded a liquidity agreement with Kepler Cheuvreux. Under that agreement, in which Kepler Cheuvreux acts entirely autonomously, yet on behalf of Ackermans & van Haaren, 183,287 treasury shares were bought and 180,262 treasury shares sold, giving a balance of 3,025 treasury shares at year-end 2013.

The other changes concern items which in accordance with IFRS standards must be reported directly in the equity. Besides the revaluation reserves that were explained on p.20, the inclusion of CFE by full consolidation leads to the recognition of a substantial item 'Minority interests', as AvH has a 60.39% stake in CFE.

The minority interests were also influenced by the capital increase of 60.7 million euros which Leasinvest Real Estate carried out in mid-2013, and which is backed 30.01% by the AvH group and for the rest by the minority interests. ABK Bank made use in 2013 of the facility offered by the law to exclude inactive partners. As ABK Bank exited from the Beroepskrediet network in 2012, exiting partners can now be remunerated at carrying value rather than at the much lower par value. As a result, the interest of Bank J.Van Breda & C° in ABK Bank increased from 91.76% to 99.9% at year-end 2013.

6. Segment reporting

Segment 1 – Marine Engineering & Infrastructure: DEME (global integration balance sheet 60.39%, equity method result 50%), CFE (global integration balance sheet 60.39%, no result contribution in 2013), Rent-A-Port (global integration balance sheet 72.18%, equity method result 45%), Rent-A-Port Energy (global integration balance sheet 73.15%, equity method result 45.6%), Van Laere (global integration 100%) and NMP (global integration 75%)

Segment 2 – Private Banking: Delen Investments CVA (equity method 78.75%), Bank J.Van Breda & C° (global integration 78.75%), Finaxis (global integration 78.75%), Promofi (equity method 15%) and ASCO-BDM (equity method 50%)

Segment 3 – Real Estate, Leisure & Senior Care: Extensa (global integration 100%), Leasinvest Real Estate (global integration 30%), Holding Groupe Duval (equity method 50%), Groupe Financière Duval (equity method 41.1%) and Anima Care (global integration 100%)

Segment 4 – Energy & Resources: Sipef (equity method 26.8%), Telemond Holding (equity method 50%), Telehold (equity method 50%), Henschel Engineering (equity method 50%), AvH India Resources (global integration 100%), Sagar Cements (equity method 18.6%), Oriental Quarries and Mines (equity method 50%), Ligno Power (global integration 70%) and Max Green (equity method 18.9%)

Segment 5 – Development Capital:

  • Sofinim & subholdings (global integration 74%)

  • Participations accounted for using the equity method (percentages AvH share) : Atenor (8.8%), Axe Investments (35.8%), Amsteldijk Beheer (37%), Corelio (16.3%), Distriplus (37%), EMG (16,3%), Groupe Flo (23.6%), Hertel (34.4%), NMC (22.5%), Manuchar (22.2%), MediaCore (36.9%), Trasys (41.9%), Turbo's Hoet Groep (37%)

  • Participations accounted for using global integration : Egemin (52.9%)

Segment 6 – AvH & subholdings: global integration and GIB (equity method 50%)

6. Segment information - income statement 2013 (€ 1,000) Segment 1 Marine Engineering & Infrastructure Segment 2 Private Banking Segment 3 Real Estate, Leisure & Senior Care Segment 4 Energy & Resources Segment 5 Development Capital Segment 6 AvH & subholdings Eliminations between segments Total 2013 Revenue 141,725 170,926 99,879 168 107,630 4,747 -3,324 521,752 Rendering of services 13,870 27,409 156 4,293 -3,178 42,550 Lease revenue 8,759 1,741 10,500 Real estate revenue 347 54,681 55,028 Interest income - banking activities 125,958 125,958 Fees and commissions - banking activities 31,601 31,601 Revenue from construction contracts 124,527 10,702 105,040 240,269 Other operating revenue 2,982 4,608 5,344 12 2,590 454 -146 15,845 Other operating income 174 155 1,753 801 2,680 -1,206 4,356 Interest on fi nancial fi xed assets - receivables 174 62 787 429 -156 1,297 Dividends 155 1,690 14 1,119 2,978 Government grants 0 Other operating income 1,131 -1,050 81 Operating expenses (-) -136,999 -128,934 -62,816 -5,636 -114,570 -12,605 4,374 -457,187 Raw materials and consumables used (-) -83,630 -15,098 -52,728 -151,456 Changes in inventories of fi nished goods, raw materials & consumables (-) 8 -756 379 -369 Interest expenses Bank J.Van Breda & C° (-) -57,951 -57,951 Employee expenses (-) -26,207 -39,718 -20,011 -36,692 -3,545 -126,172 Depreciation (-) -4,391 -4,332 -1,857 -2,443 -640 -13,663 Impairment losses (-) -284 -1,501 -3,543 -5,537 -6,081 -16,945 Other operating expenses (-) -22,496 -25,438 -21,241 -98 -17,567 -8,420 4,374 -90,887 Provisions 6 -311 561 257 Profi t (loss) from operating activities 4,901 42,147 38,815 -5,469 -6,138 -5,178 -156 68,921 Profi t (loss) on assets/liabilities designated at fair value through profi t and loss 0 2,652 1,861 0 12 0 0 4,525 Development capital 12 12 Financial assets held for trading 64 64 Investment property 883 883 Derivative fi nancial instruments 2,588 977 3,565 Profi t (loss) on disposal of assets 197 1,933 752 0 45,927 85 0 48,894 Realised gain (loss) on intangible and tangible assets 197 -49 473 2 -1 622 Realised gain (loss) on investment property 256 256 Realised gain (loss) on fi nancial fi xed assets 45,925 86 46,011 Realised gain (loss) on other assets 1,982 23 2,005 Finance income 367 25 3,259 13 1,276 520 -315 5,145 Interest income 143 25 2,404 13 875 520 -315 3,665 Other fi nance income 224 854 401 1,480 Finance costs (-) -983 0 -16,223 -4 -1,213 -3,589 470 -21,542 Interest expenses (-) -854 -10,139 -894 -549 470 -11,966 Other fi nance costs (-) -129 -6,084 -4 -319 -3,040 -9,576 Share of profi t (loss) from equity accounted investments 62,094 76,501 8,527 13,377 -8,093 928 153,333 Other non-operating income 0 0 0 0 0 109,399 109,399 Other non-operating expenses (-) 0 0 0 0 0 0 0 Profi t (loss) before tax 66,576 123,257 36,990 7,917 31,771 102,165 0 368,676 Income taxes -1,712 -15,255 -2,724 -6 -1,414 125 0 -20,985 Deferred taxes -236 -5,361 -1,883 -188 177 -7,491 Current taxes -1,476 -9,894 -841 -6 -1,226 -51 -13,495 Profi t (loss) after tax from continuing operations 64,864 108,002 34,266 7,911 30,357 102,290 0 347,690 Profi t (loss) after tax from discontinued operations 0 0 0 0 0 0 0 Profi t (loss) of the period 64,864 108,002 34,266 7,911 30,357 102,290 0 347,690 Minority interests 5,122 23,549 18,503 -796 7,411 0 53,790

Share of the group 59,742 84,453 15,763 8,707 22,946 102,290 293,901

Comments on the segment information - income statement 2013

At 68.9 million euros, the 'Profit from operating activities' is at about the same level as the previous year (70.6 million euros). The vigorous increase in revenue in the "Private Banking" and "Real Estate, Leisure & Senior Care" segments is worth noting, and reflects the good performance of Bank J.Van Breda & C° and Leasinvest Real Estate, coupled with the recovery in profitability of Extensa's property development activities. The contributions of the "Energy & Resources" and "Development Capital" segments, however, are more disappointing, primarily as a result of certain impairments that were recognized on Max Green, Sagar Cements and Euro Media Group.

By changes in the valuation rules for the portfolio companies of Sofinim in the "Development Capital" segment, which as of 2013 are accounted for using the equity method and no longer on the basis of a fair value approach, the contribution of this segment is now mainly reported under the equity method, unlike by fair value adjustments as was done before. The fair value adjustment of derivative financial instruments was positive in 2013. Those instruments are used to hedge interest rate risks at Bank J.Van Breda & C° and Leasinvest Real Estate.

The realized capital gains are much higher in 2013 than the previous year. This is primarily due to the capital gain of 46.0 million euros that Sofinim realized on the sale of its stake in Spano Group in the first quarter of 2013.

The share in the profit of companies accounted for using the equity method continues in 2013 to make a very substantial contribution to the result. This item brings together the contributions from group companies such as DEME, Delen Investments, Sipef, Rent-A-Port, etc. As of 2013, the contribution of all portfolio companies in the "Development Capital" segment is also reported here, except for Egemin International, over which AvH has exclusive control and which is therefore fully consolidated.

'Other non-operating income' in 2013 includes 109.4 million euros representing the effect of the revaluation of the 50 % stake which AvH held in DEME. By acquiring control over CFE as of 24 December 2013, whereby that stake was contributed to CFE, AvH evolved from a situation of joint control over DEME to one of exclusive control. In accordance with IFRS rules, AvH was obliged at that moment to revalue its stake in DEME, which it did on the basis of the 550 million euro value (which is also the contribution value of the DEME stake that was transferred to CFE) set in the transaction with Vinci.

Marine Engineering & Infrastructure: contribution to AvH group results: 59.7 million euros

With 53.7 million euros, DEME (AvH 50%) provided the largest contribution to this segment. DEME's contribution was still accounted for in 2013 using the equity method as DEME is a group company over which AvH exercised joint control until the end of 2013. Accordingly, DEME's entire contribution to the result was grouped under the item 'Share of profi t (loss) from equity accounted investments'. With effect from 2014, the stake in DEME will be fully consolidated following the acquisition of exclusive control over DEME at the end of 2013. The same applies to Rent-A-Port (45%) and Rent-A-Port Energy (45.6%), which will also be fully reported following the acquisition of control over CFE. The consolidated accounts of Algemene Aannemingen Van Laere (AvH 100%) and Nationale Maatschappij der Pijpleidingen (AvH 75%) are consolidated in full.

Private Banking: contribution to AvH group results: 84.5 million euros

Finaxis group (AvH 78.75%), which includes the contributions from Delen Investments and Bank J.Van Breda & C°, represents the lion's share of this segment. Bank J.Van Breda & C° was fully consolidated via Finaxis while the results of Delen Investments were processed in accordance with the equity accounting method. The insurance group ASCO-BDM (AvH 50%) was also entered in the books using the equity accounting method.

Real Estate, Leisure & Senior Care: contribution to AvH group results: 15.8 million euros

Pursuant to the shareholders' agreement between Axa Belgium and Extensa, the real estate investment trust Leasinvest Real Estate - LRE (AvH 30.01%) is under the exclusive control of AvH and is therefore fully included in consolidation. In this segment also Extensa (AvH 100%), and Anima Care (AvH 100%) are fully consolidated while Groupe Financière Duval (AvH 41.1%) is entered in the books using the equity method.

Energy & Resources: contribution to AvH group results: 8.7 million euros

Sipef (26.8%), Oriental Quarries & Mines (50%), Max Green (18.9%) and the Telemond group (50%) are all jointly controlled participations, and are therefore included according to the equity accounting method. The minority interest of 18.6% in Sagar Cements is also listed in this way in AvH's consolidated accounts.

Development Capital: contribution to AvH group results: 22.9 million euros

AvH is active in "Development Capital" via Sofi nim (26% minority stake held by NPM-Capital) on the one hand, and via GIB (jointly controlled subsidiary with Nationale Portefeuille Maatschappij) on the other.

AvH & subholdings: contribution to AvH group results: 102.3 million euros

Besides operating expenses, the contribution of AvH & subholdings is to a large extent affected by the realization or not of capital gains on sales of shares and by transaction costs.

Further to the above please refer to the separate enclosure 'Key fi gures 2013' in which results by segment are discussed in detail.

Segment information - income statement 2012
(€ 1,000) Segment 1
Marine
Engineering &
Infrastructure
Segment 2
Private
Banking
Segment 3
Real Estate,
Leisure &
Senior Care
Segment 4
Energy &
Resources
Segment 5
Development
Capital
Segment 6
AvH &
subholdings
Eliminations
between
segments
Total
2012
Revenue 184,400 178,337 82,088 178 109,790 4,635 -3,300 556,128
Rendering of services 15,929 20,522 178 4,288 -3,161 37,756
Lease revenue 8,338 1,683 10,021
Real estate revenue 244 40,148 40,393
Interest income - banking activities 139,642 139,642
Fees and commissions - banking activities 26,772 26,772
Revenue from construction contracts 165,581 14,238 107,521 287,340
Other operating revenue 2,646 3,585 5,496 2,268 348 -139 14,204
Other operating income 174 178 1,187 0 2,203 2,973 -1,333 5,382
Interest on fi nancial fi xed assets - receivables
Dividends
174 178 71
1,116
2,148
14
694
1,119
-250 2,837
2,427
Government grants 0
Other operating income 41 1,161 -1,083 118
Operating expenses (-) -180,769 -140,141 -53,623 -107 -110,769 -9,930 4,384 -490,955
Raw materials and consumables used (-) -123,189 -16,282 -57,019 -196,490
Changes in inventories of fi nished goods,
raw materials & consumables (-)
979 131 32 1,142
Interest expenses Bank J.Van Breda & C° (-) -68,836 -68,836
Employee expenses (-) -27,386 -38,531 -15,767 -33,772 -2,984 -118,440
Depreciation (-) -3,868 -3,290 -1,680 -2,185 -699 -11,722
Impairment losses (-) -102 -4,683 -824 -481 -6,090
Other operating expenses (-) -27,343 -24,795 -18,812 -107 -17,940 -7,747 4,384 -92,359
Provisions 139 -6 -389 596 1,500 1,841
Profi t (loss) from operating activities 3,805 38,374 29,652 72 1,223 -2,322 -249 70,555
Profi t (loss) on assets/liabilities designated
at fair value through profi t and loss
0 -1,868 -2,720 0 5,510 0 923
Development capital 5,493 5,493
Financial assets held for trading 467 467
Investment property -239 -239
Derivative fi nancial instruments -2,335 -2,481 17 -4,799
Profi t (loss) on disposal of assets 60 6,097 94 0 31,267 -808 36,710
Realised gain (loss) on intangible and
tangible assets
60 6 -1 7 -6 66
Realised gain (loss) on investment property 220 220
Realised gain (loss) on fi nancial fi xed assets -137 30,833 -586 30,110
Realised gain (loss) on other assets 6,091 11 427 -216 6,314
Finance income 437 21 3,006 4 830 1,305 -394 5,209
Interest income 260 21 1,871 4 520 856 -394 3,138
Other fi nance income 177 1,135 310 449 2,071
Finance costs (-) -873 0 -13,669 -362 -1,622 -2,147 644 -18,030
Interest expenses (-) -818 -8,135 -355 -1,239 -775 644 -10,677
Other fi nance costs (-) -56 -5,534 -7 -383 -1,372 -7,352
Share of profi t (loss) from equity
accounted investments
49,654 63,507 1,550 17,173 1,935 -58 133,761
Other non-operating income 0 0 0 0 60 0 60
Other non-operating expenses (-) 0 -60,112 -3 0 -10 0 -60,125
Profi t (loss) before tax 53,083 46,019 17,911 16,886 39,192 -4,029 169,063
Income taxes -986 44,789 -784 0 -877 -527 41,616
Deferred taxes 157 55,037 31 387 -481 55,131
Current taxes -1,143 -10,248 -815 -1,265 -45 -13,515
Profi t (loss) after tax from
continuing operations
52,097 90,808 17,127 16,886 38,315 -4,556 210,679
Profi t (loss) after tax from
discontinued operations
Profi t (loss) of the period 52,097 90,808 17,127 16,886 38,315 -4,556 0 210,679
Minority interests 349 19,357 13,538 512 9,580 0 43,336
Share of the group 51,748 71,451 3,589 16,374 28,736 -4,556 167,343
Segment information - assets 2013
(€ 1,000) Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 Segment 6 Total
Marine
Engineering &
Private
Banking
Real Estate,
Leisure &
Energy &
Resources
Development
Capital
AvH &
subholdings
Eliminations
between
2013
Infrastructure Senior Care segments
I. Non-current assets 2,154,096 3,232,222 957,985 152,153 385,068 63,044 -8,157 6,936,411
Intangible assets 12,989 9,502 9,903 947 96 33,437
Goodwill 293,805 137,103 6,058 436,967
Tangible assets 1,542,457 33,156 72,745 21,198 11,147 1,680,703
Investment property 2,749 697,498 700,247
Participations accounted for using
the equity method
135,998 479,396 97,867 152,153 268,132 3,445 1,136,991
Financial fi xed assets 126,533 87 47,212 89,373 44,232 -8,157 299,280
Development capital participations
Available for sale fi nancial fi xed assets 4,895 1 47,188 28 31,072 83,184
Receivables and warranties 121,638 86 24 89,345 13,160 -8,157 216,096
Non-current hedging instruments 612 961 767 2,340
Amounts receivable after one year 1,441 88,163 25,105 5,040 2,261 122,010
Trade debtors 44 44
Finance lease receivables 88,163 24,943 113,106
Other receivables 1,397 162 5,040 2,261 8,860
Deferred tax assets 37,512 17,563 829 378 1,863 58,146
Banks - receivables from credit institutions
and clients after one year
2,466,291 2,466,291
II. Current assets 1,876,690 1,791,440 128,358 3,762 204,611 88,639 -153,940 3,939,559
Inventories 119,221 16,227 2,017 137,466
Amounts due from customers
under construction contracts
155,015 15,658 7,291 177,964
Investments 354 640,773 30 495 23,609 665,262
Available for sale fi nancial assets 640,773 30 495 23,609 664,908
Financial assets held for trading 354 354
Current hedging instruments 11,160 990 12,150
Amounts receivable within one year 1,100,388 60,541 72,201 3,697 143,194 13,075 -153,801 1,239,296
Trade debtors 1,065,343 19,176 16,428 3,444 -3,310 1,101,082
Finance lease receivables 41,582 425 42,007
Other receivables 35,045 18,959 52,600 3,697 126,766 9,631 -150,491 96,207
Current tax receivables 16 1,154 130 482 1,782
Banks - receivables from credit institutions
and clients within one year
903,709 903,709
Banks - loans and advances to banks 59,706 59,706
Banks - loans and receivables (excl. fi nance leases) 841,457 841,457
Banks - cash balances with central banks 2,546 2,546
Cash and cash equivalents 463,754 180,936 20,784 64 50,476 50,994 767,009
Time deposits for less than three months 26,476 10,881 31,423 46,412 115,192
Cash 437,278 180,936 9,904 64 19,053 4,581 651,817
Deferred charges and accrued income 26,781 4,490 2,303 1 1,007 479 -139 34,921
III. Assets held for sale 11,544 11,544
TOTAL ASSETS 4,030,786 5,023,662 1,097,887 155,915 589,679 151,683 -162,097 10,887,514

Segment information - equity and liabilities 2013

(€ 1,000) Segment 1
Marine
Engineering &
Infrastructure
Segment 2
Private
Banking
Segment 3
Real Estate,
Leisure &
Senior Care
Segment 4
Energy &
Resources
Segment 5
Development
Capital
Segment 6
AvH &
subholdings
Eliminations
between
segments
Total
2013
I. Total equity 1,214,559 1,055,162 448,792 155,905 533,532 -130,589 3,277,362
Shareholders' equity - group share 750,480 862,213 214,081 154,793 400,565 -130,593 2,251,539
Issued capital 113,907 113,907
Share capital 2,295 2,295
Share premium 111,612 111,612
Consolidated reserves 755,878 855,721 213,732 164,782 403,678 -253,084 2,140,707
Revaluation reserves -5,398 6,493 349 -9,989 -3,113 27,276 15,616
Securities available for sale 6,325 4,477 46 2,577 26,355 39,780
Hedging reserves -327 -1,157 -4,591 -286 -6,361
Actuarial gains (losses) defi ned benefi t pension
plans
-3,674 -62 -180 -587 921 -3,582
Translation differences -1,397 1,386 463 -9,855 -4,817 -14,220
Treasury shares (-) -18,692 -18,692
Minority interests 464,079 192,949 234,711 1,112 132,968 4 1,025,823
II. Non-current liabilities 970,570 808,291 401,425 11,133 88,876 -8,157 2,272,138
Provisions 75,552 33 4,919 885 81,388
Pension liabilities 41,356 3,020 42 118 44,535
Deferred tax liabilities 23,469 1,228 11,540 658 769 37,664
Financial debts 715,290 364,116 8,861 87,990 -8,157 1,168,098
Bank loans 489,756 260,465 87,990 838,211
Bonds 199,639 95,767 295,405
Subordinated loans 483 7,690 -5,000 3,173
Finance leases 17,881 5 8,861 26,746
Other fi nancial debts 7,531 189 -3,157 4,563
Non-current hedging instruments 16,427 3,938 18,568 38,933
Other amounts payable after one year 98,476 5,964 2,283 687 107,411
Banks - debts to credit institutions,
clients & securities
794,108 794,108
Banks - deposits 832 832
Banks - deposits from clients 715,368 715,368
Banks - debt certifi cates including bonds 8 8
Banks - subordinated liabilities 77,900 77,900
III. Current liabilities 1,845,657 3,160,208 247,670 9 45,014 193,396 -153,940 5,338,014
Provisions 34,571 88 34,658
Pension liabilities 208 208
Financial debts 340,089 215,656 1,380 188,584 -149,491 596,218
Bank loans 134,407 77,684 212,091
Bonds 100,000 100,000
Finance leases 4,006 7 1,380 5,393
Other fi nancial debts 101,675 137,965 188,584 -149,491 278,733
Current hedging instruments 16,499 1,877 18,376
Amounts due to customers under 180,073 14,109 194,181
construction contracts
Other amounts payable within one year 1,221,232 24,823 20,773 7 26,179 3,993 -1,980 1,295,027
Trade payables 1,025,726 5 10,094 7 17,092 778 -980 1,052,723
Advances received 1,837 1,837
Amounts payable regarding remuneration
and social security
132,709 8,478 3,029 7,975 2,559 154,750
Other amounts payable 60,960 16,340 7,650 1,112 655 -1,000 85,717
Current tax payables 9,072 6,365 905 350 8 16,701
Banks - debts to credit institutions,
clients & securities
3,123,241 3,123,241
Banks - deposits from credit institutions 105,488 105,488
Banks - deposits from clients 2,883,169 2,883,169
Banks - debt certifi cates including bonds 128,011 128,011
Banks - subordinated liabilities 6,573 6,573
Accrued charges and deferred income 44,121 3,694 10,248 3 2,996 811 -2,469 59,403
IV. Liabilities held for sale 0
TOTAL EQUITY AND LIABILITIES 4,030,786 5,023,662 1,097,887 155,915 589,679 151,683 -162,097 10,887,514

Segment information - cash fl ow statement 2013

(€ 1,000) Segment 1 Segment 2 Segment 3 Segment 4 Segment
5 & 6
Total
2013
Marine
Engineering &
Infrastructure
Private
Banking
Real Estate,
Leisure &
Senior Care
Energy &
Resources
AvH, subhold.
& Develop
ment Capital
Eliminations
between
segments
I. Cash and cash equivalents, opening balance 18,646 24,607 26,743 243 101,546 171,784
Profi t (loss) from operating activities 4,901 42,147 38,815 -5,469 -11,316 -156 68,921
Dividends from participations accounted for using the equity method 183 20,546 1,661 24,591 46,980
Other non-operating income (expenses) 0
Income taxes -1,712 -15,255 -2,724 -6 -1,288 -20,985
Non-cash adjustments
Depreciation 4,391 4,332 1,857 3,083 13,663
Impairment losses 284 1,514 3,543 5,537 6,081 16,958
Share based payment 29 683 221 428 1,362
(Decrease) increase of provisions 220 318 -561 -23
(Decrease) increase of deferred taxes 236 5,361 1,883 11 7,491
Other non-cash expenses (income) -93 7,328 382 386 8,003
Cash fl ow 8,218 66,876 44,294 1,724 21,414 -156 142,369
Decrease (increase) of working capital 208 264,856 -12,334 2,066 4,113 -37 258,873
Decrease (increase) of inventories and construction contracts -1,104 8,015 -318 6,593
Decrease (increase) of amounts receivable -80 -4,331 -14,334 2,107 3,980 -37 -12,695
Decrease (increase) of receivables from credit institutions
and clients (banks)
-139,703 -139,703
Increase (decrease) of liabilities (other than fi nancial debts) 1,514 -2,441 149 -38 -506 -1,322
Increase (decrease) of debts to credit institutions,
clients & securities (banks)
411,402 411,402
Decrease (increase) other -121 -71 -6,164 -3 958 -5,402
Cash fl ow from operating activities 8,426 331,732 31,960 3,790 25,527 -193 401,242
Investments -144,631 -532,508 -147,060 -1,433 -63,943 5,000 -884,575
Acquisition of intangible and tangible assets -6,454 -6,867 -24,323 -2,235 -39,879
Acquisition of investment property -101,873 -101,873
Acquisition of fi nancial fi xed assets -137,990 -1,160 -20,864 -1,433 -3,818 -165,265
New amounts receivable -187 -34 -1 -57,490 5,000 -52,712
Acquisition of investments -524,447 -399 -524,846
Divestments 385 388,274 30,367 135,657 554,683
Disposal of intangible and tangible assets 361 126 1,011 110 1,608
Disposal of investment property 28,915 28,915
Disposal of fi nancial fi xed assets 24 99 106,944 107,067
Reimbursements of amounts receivable 28,325 28,325
Disposal of investments 388,148 342 278 388,768
Cash fl ow from investing activities -144,246 -144,234 -116,693 -1,433 71,715 5,000 -329,892
Financial operations
Interest received 143 25 2,404 13 1,148 -68 3,665
Interest paid -854 -10,139 -1,197 224 -11,966
Other fi nancial income (costs) 96 -5,684 -4 -2,958 -8,551
Decrease (increase) of treasury shares -3,048 -3,048
(Decrease) increase of fi nancial debts -2,372 50,064 88,915 -4,963 131,644
Distribution of profi ts -55,349 -55,349
Dividends paid to minority interests -1,174 -31,193 -12,491 -3,800 25,367 -23,290
Cash fl ow from fi nancial activities -4,161 -31,168 24,155 -3,791 52,879 -4,807 33,106
II. Net increase (decrease) in cash and cash
equivalents
-139,981 156,330 -60,578 -1,435 150,120 104,456
Transfer between segments 137,990 10,942 1,264 -150,196 0
Change in consolidation scope or method 447,099 1,235 448,334
Capital increase Leasinvest Real Estate (minority interest) 41,976 41,976
Impact of exchange rate changes on cash and cash equivalents 467 -8 459
III. Cash and cash equivalents - ending balance 463,754 180,936 20,784 64 101,470 767,009

Comments on the consolidated balance sheet

On 24 December 2013, AvH acquired control over CFE and therefore over DEME. This has a significant impact on AvH's consolidated balance sheet for 2013, since the stakes in DEME, CFE, Rent-A-Port and Rent-A-Port Energy are fully consolidated as a result. Consequently, the contribution of this segment to the balance sheet total increased by 3,499.2 million euros compared to 2012. The full consolidation of DEME (and to a lesser extent CFE, Rent-A-Port and Rent-A-Port Energy) has a substantial impact on most balance sheet items of the consolidated financial statements. This is for instance also the case with the item 'Goodwill', which increased to 437 million euros. This increase is caused by the revaluation on 24 December 2013 of the interest in DEME by AvH (resulting in 109.4 million euros profit in the 2013 results) and by the first consolidation of CFE (no impact on the income statement of AvH as the results of CFE will only begin to contribute to the group results of AvH in 2014).

The share of the "Private Banking" segment in the balance sheet total increased as well (+468.5 million euros). Apart from the increase in the equity value of Delen Investments as a result of the 2013 result, this growth reflects the increased deposits entrusted by clients of Bank J.Van Breda & C° and which the bank reports under several items on the assets side of its balance sheet.

An active portfolio management enabled Leasinvest Real Estate to expand its real estate portfolio to 718 million euros, which is approximately 100 million euros more than in the previous year. Anima Care, too, extended its operations by acquiring new residences and by several new building projects.

In the "Energy & Resources" segment, the stakes in Sipef and Sagar Cements have been slightly increased.

The contribution of the "Development Capital" segment to the balance sheet total increased to 589.7 million euros. As a result of changes in the valuation rules, Sofinim's portfolio companies are no longer accounted for using a fair value approach, but by the equity method or by full consolidation, depending on the size of the shareholding. In the financial statements as at 31/12/2013, the stake in Egemin was fully consolidated, whereas all others were accounted for using the equity method.

Comments on the consolidated cash flow statement

The cash flow in 2013 stood at 142.4 million euros, which is a substantial increase on the 67.5 million euros in 2012. The increase is essentially situated in the "Private Banking" and "Real Estate, Leisure & Senior Care" segments, and reflects the good performance in those segments. Moreover, in 2012 the cash flow of Bank J.Van Breda & C° was negatively affected by the one-off extraordinary charge that was paid for the exit of ABK Bank from the Beroepskrediet network.

The increase in the net working capital is due to the increase in financial debt in the form of deposits received and interbank debts at Bank J.Van Breda & C°, which exceeded the increase in loans.

The investments in 2013 amounted to 884.6 million euros and are spread across many parts of the Group. Leasinvest Real Estate extended its real estate portfolio by acquiring more retail property in the Grand Duchy of Luxembourg. Those investments were financed by a capital increase and by long-term debts in the form of a retail bond. Anima Care grew by acquiring the shares of two retirement homes and by four new building projects that were in progress in 2013. As was already announced at the beginning of 2013, Sofinim and NPM Capital jointly boosted the equity of Hertel by 75 million euros. In the "Marine Engineering & Infrastructure" segment, the acquisition of 3,066,440 CFE shares from Vinci is reported for an amount of 138.0 million euros. This acquisition was financed to an amount of 50 million euros from available cash at AvH & Subholdings; for the remaining balance of 88 million euros, a medium-term financial debt was contracted.

The main divestments were the sale by Sofinim of its stake in Spano Group in the first quarter. Leasinvest Real Estate continued its strategy in 2013 of selling off certain less strategic properties.

The acquisition and disposal of short-term investments by Bank J.Van Breda & C° are part of the bank's normal portfolio management.

Following the acquisition of control over DEME and CFE, the cash position increased by 447 million euros as a result of the change in consolidation method and scope.

Segment information - assets 2012
(€ 1,000) Segment 1
Marine
Engineering &
Infrastructure
Segment 2
Private
Banking
Segment 3
Real Estate,
Leisure &
Senior Care
Segment 4
Energy &
Resources
Segment 5
Development
Capital
Segment 6
AvH &
subholdings
Eliminations
between
segments
Total
2012
I. Non-current assets 433,360 2,959,533 785,796 155,342 382,646 46,591 4,763,268
Intangible assets 23 7,106 5,093 1,005 13,227
Goodwill 1,890 137,770 2,579 142,239
Tangible assets 27,597 31,764 42,714 21,584 11,756 135,416
Investment property 2,749 581,732 584,481
Participations accounted for using
the equity method
395,512 428,667 89,470 155,342 284,551 2,499 1,356,041
Financial fi xed assets 4,815 52 37,014 70,339 29,142 141,362
Development capital participations 0
Available for sale fi nancial fi xed assets 459 1 36,993 76 26,066 63,594
Receivables and warranties 4,356 51 21 70,263 3,076 77,768
Non-current hedging instruments 548 647 1,195
Amounts receivable after one year 132 85,671 25,506 4,500 1,323 117,133
Finance lease receivables 85,671 25,368 111,039
Other receivables 132 138 4,500 1,323 6,093
Deferred tax assets 642 20,945 1,040 667 1,870 25,165
Banks - receivables from credit institutions
and clients after one year
2,247,010 2,247,010
II. Current assets 98,211 1,595,588 127,623 6,048 134,103 111,860 -95,433 1,978,000
Inventories 2,628 16,823 3,192 22,644
Amounts due from customers
under construction contracts
3,397 23,078 13,233 39,708
Investments 519,759 304 414 20,014 540,491
Available for sale fi nancial assets 517,239 304 414 20,014 537,971
Financial assets held for trading 2,520 2,520
Current hedging instruments 2,437 2,437
Amounts receivable within one year 73,456 58,417 58,967 5,804 91,972 12,637 -95,422 205,832
Trade debtors 49,729 14,673 30 24,269 3,265 -2,564 89,403
Finance lease receivables 40,323 397 40,720
Other receivables 23,727 18,094 43,897 5,774 67,703 9,372 -92,858 75,709
Current tax receivables 12 209 1,116 582 232 2,151
Banks - receivables from credit institutions
and clients within one year
986,063 986,063
Banks - loans and advances to banks 63,521 63,521
Banks - loans and receivables (excl. fi nance leases) 919,546 919,546
Banks - cash balances with central banks 2,996 2,996
Cash and cash equivalents 18,646 24,607 26,743 243 23,018 78,528 171,784
Time deposits for less than three months 1,733 17,361 9,193 72,690 100,977
Cash 16,913 24,607 9,382 243 13,825 5,838 70,807
Deferred charges and accrued income 71 4,096 592 1 1,692 449 -11 6,889
III. Assets held for sale 21,701 58,917 80,618
TOTAL ASSETS 531,572 4,555,121 935,120 161,390 575,666 158,451 -95,433 6,821,885

Segment information - assets 2012

(€ 1,000) Segment 1 Segment 2 Segment 3 Segment 4 Segment 5 Segment 6 Total
Marine Private Real Estate, Energy & Development AvH & Eliminations 2012
Engineering &
Infrastructure
Banking Leisure &
Senior Care
Resources Capital subholdings between
segments
I. Total equity 455,727 1,002,041 362,501 161,339 509,721 22,902 2,514,231
Shareholders' equity - group share 449,061 807,039 183,311 158,324 382,633 22,899 2,003,267
Issued capital 113,907 113,907
Share capital 2,295 2,295
Share premium 111,612 111,612
Consolidated reserves 464,579 797,723 187,552 161,882 385,172 -91,038 1,905,870
Revaluation reserves -15,518 9,316 -4,241 -3,558 -2,539 16,684 145
Securities available for sale 10,674 3,789 46 2,392 16,726 33,626
Hedging reserves -17,426 -2,862 -7,120 -713 -28,121
Actuarial gains (losses) defi ned benefi t pension
plans
-3,751 -361 -1,042 -42 -5,196
Translation differences 5,660 1,865 -910 -3,604 -3,176 -165
Treasury shares (-) -16,655 -16,655
Minority interests 6,666 195,002 179,189 3,015 127,088 4 510,964
II. Non-current liabilities 22,172 774,996 307,920 12,477 633 1,118,198
Provisions 203 289 3,945 1,446 5,884
Pension liabilities 846 3,180 12 157 4,195
Deferred tax liabilities 4,277 1,207 4,535 735 457 11,211
Financial debts 16,246 269,960 10,097 19 296,321
Bank loans 16,243 268,551 284,794
Subordinated loans 1,190 1,190
Finance leases 3 12 10,097 19 10,131
Other fi nancial debts
Non-current hedging instruments
284 9,580 207
27,917
207
37,781
Other amounts payable after one year 316 4,295 1,562 187 6,360
Banks - debts to credit institutions,
clients & securities 756,445 756,445
Banks - deposits from clients 670,444 670,444
Banks - debt certifi cates including bonds 5,206 5,206
Banks - subordinated liabilities 80,795 80,795
III. Current liabilities 53,673 2,778,084 264,699 51 53,468 134,915 -95,433 3,189,456
Provisions 114 114
Pension liabilities 180 180
Financial debts 3,882 228,850 1,246 130,937 -91,858 273,057
Bank loans 3,881 128,077 131,958
Finance leases 1 6 1,246 17 1,270
Other fi nancial debts 100,766 130,920 -91,858 139,829
Current hedging instruments 9,506 9,506
Amounts due to customers under 3,854 21,544 25,398
construction contracts
Other amounts payable within one year 44,999 9,896 19,325 46 27,669 3,578 -1,618 103,894
Trade payables 39,734 9,138 45 17,251 475 -618 66,025
Advances received 2,058 72 2,130
Amounts payable regarding remuneration
and social security
2,715 8,685 2,705 1 6,841 2,225 23,172
Other amounts payable 492 1,211 7,410 3,577 877 -1,000 12,567
Current tax payables 590 8,317 666 281 7 9,860
Banks - debts to credit institutions, 2,745,651 2,745,651
clients & securities
Banks - deposits from credit institutions 68,647 68,647
Banks - deposits from clients 2,657,500 2,657,500
Banks - debt certifi cates including bonds 12,994 12,994
Banks - subordinated liabilities 6,510 6,510
Accrued charges and deferred income 348 4,534 15,744 5 2,727 394 -1,958 21,795
IV. Liabilities held for sale 0
TOTAL EQUITY AND LIABILITIES 531,572 4,555,121 935,120 161,390 575,666 158,451 -95,433 6,821,885

Segment information - equity and liabilities 2012

Segment information - cash fl ow statement 2012
(€ 1,000) Segment 1 Segment 2 Segment 3 Segment 4 Segment
5 & 6
Total
2012
Marine
Engineering &
Infrastructure
Private
Banking
Real Estate,
Leisure &
Senior Care
Energy &
Resources
AvH, subhold.
& Develop
ment Capital
Eliminations
between
segments
I. Cash and cash equivalents, opening balance 33,093 157,044 20,770 302 73,686 284,896
Profi t (loss) from operating activities 3,805 38,374 29,652 72 -1,099 -249 70,555
Dividends from participations accounted for using the equity method 183 15,182 272 1,606 29,741 46,984
Other non-operating income (expenses) -60,112 -3 58 -60,057
Income taxes -986 44,789 -784 -1,404 41,616
Non-cash adjustments
Depreciation 3,868 3,290 1,680 2,885 11,722
Impairment losses 102 4,949 824 925 6,799
Share based payment 89 -1,022 346 737 149
(Decrease) increase of provisions -139 -311 389 -2,071 -2,133
(Decrease) increase of deferred taxes -157 -55,037 -31 94 -55,131
Other non-cash expenses (income) 14 7,115 2 -177 6,955
Cash fl ow 6,779 -2,783 32,348 1,678 29,688 -249 67,460
Decrease (increase) of working capital -14,096 -226,770 -1,644 -5,825 3,806 5,920 -238,609
Decrease (increase) of inventories and construction contracts -6,495 -527 2,485 -4,537
Decrease (increase) of amounts receivable 1,863 -27,247 -7,356 -5,765 15,184 5,920 -17,401
Decrease (increase) of receivables from credit institutions
and clients (banks)
-224,207 -224,207
Increase (decrease) of liabilities (other than fi nancial debts) -9,551 1,966 5,548 33 -12,074 -14,079
Increase (decrease) of debts to credit institutions, 21,391 21,391
clients & securities (banks)
Decrease (increase) other 87 1,327 691 -93 -1,789 224
Cash fl ow from operating activities -7,318 -229,553 30,704 -4,147 33,494 5,671 -171,149
Investments -14,137 -594,420 -130,742 -235 -30,826 -770,361
Acquisition of intangible and tangible assets -4,948 -7,307 -11,399 -1,916 -25,570
Acquisition of investment property -9,075 -98,685 -107,761
Acquisition of fi nancial fi xed assets -82 -20,656 -235 -28,384 -49,357
New amounts receivable -32 -2 -103 -138
Acquisition of investments -587,113 -423 -587,536
Divestments 853 712,308 4,613 8,800 58,735 -3,080 782,229
Disposal of intangible and tangible assets 187 941 53 34 1,214
Disposal of investment property 4,119 4,119
Disposal of fi nancial fi xed assets 1 318 8,800 46,840 55,958
Reimbursements of amounts receivable 666 64 7,593 -3,080 5,243
Disposal of investments 711,366 60 4,269 715,695
Cash fl ow from investing activities -13,284 117,888 -126,129 8,565 27,909 -3,080 11,868
Financial operations
Interest received 260 21 1,871 4 1,080 -394 2,842
Interest paid -818 -8,135 -355 -726 644 -9,389
Other fi nancial income (costs) 121 -4,423 -7 -1,437 -5,747
Decrease (increase) of treasury shares 403 403
(Decrease) increase of fi nancial debts -8,047 129,362 -4,400 2,956 -2,840 117,031
Distribution of profi ts -54,349 -54,349
Dividends paid to minority interests -3,019 -20,793 -11,781 16,246 -19,347
Cash fl ow from fi nancial activities
II. Net increase (decrease) in cash and cash equiva
-11,502 -20,773 106,894 -4,758 -35,826 -2,590 31,444
lents -32,104 -132,438 11,470 -341 25,576 -127,836
Transfer between segments 17,658 -6,399 300 -11,559 0
Change in consolidation scope or method 998 13,856 14,854
Impact of exchange rate changes on cash and cash equivalents -95 -19 -14 -129
III. Cash and cash equivalents - ending balance 18,646 24,607 26,743 243 101,546 171,784
(€ 1,000) 2012 Amended
IAS 19
Change
valuation rule
Development
Capital
Reclassifi cations
Banking
items
2012
Restated
Revenue 432,498 109,778 13,852 556,128
Rendering of services 37,756 37,756
Lease revenue 10,021 10,021
Real estate revenue 40,393 40,393
Interest income - banking activities 125,765 13,877 139,642
Fees and commissions - banking activities 28,671 -1,899 26,772
Revenue from construction contracts 179,819 107,521 287,340
Other operating revenue 10,073 2,257 1,874 14,204
Other operating income 10,983 -5,601 5,382
Interest on fi nancial fi xed assets - receivables 2,837 2,837
Dividends 8,027 -5,601 2,427
Government grants 0 0
Other operating income 118 118
Operating expenses (-) -381,335 -106,003 -3,617 -490,955
Raw materials and consumables used (-) -139,471 -57,019 -196,490
Changes in inventories of fi nished goods, raw materials &
consumables (-)
1,110 32 1,142
Interest expenses Bank J.Van Breda & C° (-) -65,194 -3,642 -68,836
Employee expenses (-) -84,895 -33,772 227 -118,440
Depreciation (-) -9,538 -2,184 -11,722
Impairment losses (-) -5,743 -347 -6,090
Other operating expenses (-) -78,973 -13,185 -202 -92,359
Provisions 1,370 471 1,841
Profi t (loss) from operating activities 62,146 -1,826 10,235 70,555
Profi t (loss) on assets/liabilities designated at fair
value through profi t and loss
-4,099 5,022 923
Development capital 488 5,005 5,493
Financial assets held for trading 467 467
Investment property -239 -239
Derivative fi nancial instruments -4,816 17 -4,799
Profi t (loss) on disposal of assets 36,719 -9 36,710
Realised gain (loss) on intangible and tangible assets 66 66
Realised gain (loss) on investment property 220 220
Realised gain (loss) on fi nancial fi xed assets 30,119 -9 30,110
Realised gain (loss) on other assets 6,314 6,314
Finance income 18,747 339 -13,877 5,209
Interest income 16,986 29 -13,877 3,138
Other fi nance income 1,761 310 2,071
Finance costs (-) -20,279 -1,393 3,642 -18,030
Interest expenses (-) -13,298 -1,021 3,642 -10,677
Other fi nance costs (-) -6,981 -371 -7,352
Share of profi t (loss) from equity accounted invest
ments
134,735 -974 133,761
Negative goodwill 0 0
Other non-operating income 0 60 60
Other non-operating expenses (-) -60,115 -10 -60,125
Profi t (loss) before tax 167,854 1,209 169,063
Income taxes 42,491 -875 41,616
Deferred taxes 54,743 387 55,131
Current taxes -12,253 -1,262 -13,515
Profi t (loss) after tax from continuing operations
Profi t (loss) after tax from discontinued operations
210,345 334 210,679
Profi t (loss) of the period
210,345 334 0 210,679
Minority interests 42,876 460 43,336
Share of the group 167,469 -126 0 167,343

7. Restated financial statements 2012 - income statement

2012 Amended
IAS 19
Development
Capital
2012 Restated
210,345 334 210,679
42,876 460 43,336
167,469 -126 167,343
5,309 -896 0 4,413
23,337 23,337
-4,209 -4,209
19,128 19,128
-15,236 -15,236
277 277
-14,959 -14,959
1,141 1,141
-1,306 -1,306
410 410
-896 -896
215,654 -896 334 215,092
38,713 0 460 39,173
176,941 -896 -126 175,919

Restated financial statements 2012 - statement of comprehensive income

Notes to the restated financial statements

Amended IAS 19 standard - 'Employee Benefits'

As of 1 January 2013, the amended IAS 19 standard 'Employee Benefits' became effective, resulting in a revision of the 2012 financial statements. The most important change introduced by the amended IAS 'Employee Benefits' is the direct recognition in the equity of 'Unrecognized actuarial gains and losses' instead of the corridor approach. The comparative figures for 2012 have been adjusted accordingly, with a negative impact on equity (group share) as of 1 January 2012 of -2.6 million euros. The change primarily affects DEME (accounted for using the equity method) and, to a lesser extent, the fully consolidated entities AvH and ABK (subsidiary of Bank J.Van Breda & C°).

Amendment of valuation rule for Development Capital

The jointly controlled subsidiaries (Amsteldijk Beheer, Distriplus, Hertel, Manuchar, Turbo's Hoet Group) and the associated companies (Atenor, Axe Investments, Corelio, EuroMediaGroup, NMC and Mediacore) were accounted for using the equity method as of 1 January 2012 instead of the 'fair value' approach that had been used before. This explains the shift from the item 'Development Capital investments' to 'Companies accounted for using the equity method'. The full consolidation of the controlling interest in Egemin International has a major impact on the presentation of the "Development Capital" segment, which previously only contained the Sofinim subholdings as fully consolidated components. Spano Group is reported as "Assets held for sale" following the disposal of this investee company at the beginning of 2013. In terms of results, however, the impact on the 2012 results is limited. For reasons of simplicity and materiality, the impact on the revaluation reserves was allocated entirely to the opening balance, so that this valuation rule change has no impact on the unrealized results of 2012.

Reclassifications in banking items

By carrying out certain reclassifications in the balance sheet and income statement, the presentation of Bank J.Van Breda & C° in the consolidated financial statements of AvH has been brought into line with the published statements of the bank. In the balance sheet, the accrued interest is allocated to the relevant items (previously in the item 'Accruals and deferrals'). In the same way as deposits of clients and credit institutions, subordinated loans make up one of the bank's sources of funding; consequently, a reclassification from 'Financial debts' was carried out. Interest charges on subordinated loans and interest income on the investment portfolio form part of the bank's operating income, having previously been reported as financial income (charges).

(€ 1,000) 2012 Amended
IAS 19
Change
valuation rule
Development
Capital
Reclassifi cations
Banking
items
2012
Restated
I. Non-current assets 4,815,539 -1,712 -50,559 0 4,763,268
Intangible assets 12,222 1,005 13,227
Goodwill 142,239 142,239
Tangible assets 113,832 21,583 135,416
Investment property 584,481 584,481
Participations accounted for using
the equity method
1,112,713 -3,345 246,674 1,356,041
Financial fi xed assets 461,850 -320,488 141,362
Development capital participations 351,246 -351,246 0
Available for sale fi nancial fi xed assets 63,518 76 63,594
Receivables and warranties 47,086 30,682 77,768
Non-current hedging instruments 1,195 1,195
Amounts receivable after one year 115,810 1,323 117,133
Finance lease receivables 111,039 111,039
Other receivables 4,770 1,323 6,093
Deferred tax assets 24,187 311 667 25,165
Banks - receivables from credit institutions and clients
after one year
2,247,010 2,247,010
II. Current assets 1,922,243 -683 56,439 0 1,978,000
Inventories 19,451 3,192 22,644
Amounts due from customers
under construction contracts
26,475 13,233 39,708
Investments 531,097 414 8,980 540,491
Available for sale fi nancial assets 528,577 414 8,980 537,971
Financial assets held for trading 2,520 2,520
Current hedging instruments 2,309 128 2,437
Amounts receivable within one year 181,431 -683 25,083 205,832
Trade debtors 65,134 24,269 89,403
Finance lease receivables 40,720 40,720
Other receivables 75,578 -683 814 75,709
Current tax receivables 1,578 573 2,151
Banks - receivables from credit institutions and clients
within one year
978,934 7,129 986,063
Cash and cash equivalents 158,213 13,571 171,784
Time deposits for less than three months 100,905 72 100,977
Cash 57,308 13,500 70,807
Deferred charges and accrued income 22,754 372 -16,237 6,889
III. Assets held for sale 21,701 58,917 80,618
TOTAL ASSETS 6,759,483 -2,395 64,797 0 6,821,885

Restated financial statements 2012 - balance sheet - assets

(€ 1,000) 2012 Amended
IAS 19
Change
valuation rule
Development
Capital
Reclassifi cations
Banking
items
2012
Restated
I. Total equity 2,512,473 -3,669 5,428 0 2,514,231
Shareholders' equity - group share 2,007,154 -3,505 -382 0 2,003,267
Issued capital 113,907 113,907
Share capital 2,295 2,295
Share premium 111,612 111,612
Consolidated reserves 1,903,256 766 1,849 1,905,870
Revaluation reserves 6,646 -4,270 -2,231 145
Securities available for sale 31,235 2,392 33,626
Hedging reserves -27,600 -521 -28,121
Actuarial gains (losses) defi ned benefi t pension plans -4,270 -926 -5,196
Translation differences 3,011 -3,176 -165
Treasury shares (-) -16,655 -16,655
Minority interests 505,318 -164 5,810 510,964
II. Non-current liabilities 1,104,634 1,274 12,290 0 1,118,198
Provisions 4,437 1,446 5,884
Pension liabilities 3,053 1,130 12 4,195
Deferred tax liabilities 10,332 144 735 11,211
Financial debts 367,019 10,097 -80,795 296,321
Bank loans 284,794 284,794
Subordinated loans 81,985 -80,795 1,190
Finance leases 34 10,097 10,131
Other fi nancial debts 207 207
Non-current hedging instruments 37,781 37,781
Other amounts payable after one year 6,360 6,360
Banks - debts to credit institutions,
clients & securities
675,650 80,795 756,445
III. Current liabilities 3,142,377 0 47,079 0 3,189,456
Provisions 114 114
Pension liabilities 180 180
Financial debts 276,570 1,246 -4,759 273,057
Bank loans 131,958 131,958
Subordinated loans 4,759 -4,759 0
Finance leases 24 1,246 1,270
Other fi nancial debts 139,829 139,829
Current hedging instruments 6,493 3,013 9,506
Amounts due to customers under
construction contracts
3,854 21,544 25,398
Other amounts payable within one year 80,081 23,813 103,894
Trade payables 48,995 17,031 66,025
Advances received on construction contracts 2,130 2,130
Amounts payable regarding remuneration and social security 16,466 6,706 23,172
Other amounts payable 12,490 77 12,567
Current tax payables 9,588 272 9,860
Banks - debts to credit institutions,
clients & securities
2,721,168 24,483 2,745,651
Accrued charges and deferred income 44,328 203 -22,737 21,795
IV. Liabilities held for sale 0 0
TOTAL EQUITY AND LIABILITIES 6,759,483 -2,395 64,797 0 6,821,885

Restated fi nancial statements 2012 - balance sheet - equity and liabilities

(€ 1,000) 2012 Changed
valuation rule
Development
Capital
Reclassifi cations
Banking
items
2012
Restated
I. Cash and cash equivalents, opening balance 284,896 284,896
Profi t (loss) from operating activities 62,146 -1,826 10,235 70,555
Dividends from participations accounted for using the equity method 41,695 5,289 46,984
Other non-operating income (expenses) -60,115 58 -60,057
Income taxes 42,491 -875 41,616
Non-cash adjustments
Depreciation 9,538 2,184 11,722
Impairment losses 6,009 790 6,799
Share based payment 97 52 149
(Decrease) increase of provisions -1,687 -446 -2,133
(Decrease) increase of deferred taxes -54,743 -387 -55,131
Other non-cash expenses (income) -24 -2 6,981 6,955
Cash fl ow 45,407 4,837 17,216 67,460
Decrease (increase) of working capital -230,007 -2,150 -6,452 -238,609
Decrease (increase) of inventories and construction contracts -7,022 2,485 -4,537
Decrease (increase) of amounts receivable -21,345 3,944 -17,401
Decrease (increase) of receivables from credit institutions and clients (banks) -224,207 -224,207
Increase (decrease) of liabilities (other than fi nancial debts) -6,844 -7,235 -14,079
Increase (decrease) of debts to credit institutions, clients & securities (banks) 27,843 -6,452 21,391
Decrease (increase) other 1,568 -1,344 224
CASH FLOW FROM OPERATING ACTIVITIES -184,600 2,687 10,764 -171,149
Investments -768,440 -1,921 0 -770,361
Acquisition of intangible and tangible assets -23,759 -1,811 -25,570
Acquisition of investment property -107,761 -107,761
Acquisition of fi nancial fi xed assets -49,357 -49,357
New amounts receivable -136 -2 -138
Acquisition of investments -587,428 -108 -587,536
Divestments 782,229 0 0 782,229
Disposal of intangible and tangible assets 1,214 1,214
Disposal of investment property 4,119 4,119
Disposal of fi nancial fi xed assets 55,958 55,958
Reimbursements of amounts receivable 5,243 5,243
Disposal of investments 715,695 715,695
CASH FLOW FROM INVESTING ACTIVITIES 13,789 -1,921 0 11,868
Financial operations
Interest received 23,700 -20,858 2,842
Interest paid -13,031 3,642 -9,389
Other fi nancial income (costs) -5,686 -61 -5,747
Decrease (increase) of treasury shares 403 403
(Decrease) increase of fi nancial debts 111,371 -792 6,452 117,031
Distribution of profi ts -54,349 -54,349
Dividends paid to minority interests -19,164 -183 -19,347
CASH FLOW FROM FINANCIAL ACTIVITIES 43,245 -1,036 -10,764 31,444
II. Net increase (decrease) in cash and cash equivalents -127,566 -270 0 -127,836
Transfer between segments 0 0
Change in consolidation scope or method 998 13,856 14,854
Impact of exchange rate changes on cash and cash equivalents -114 -15 -129
III. Cash and cash equivalents - ending balance 158,213 13,571 0 171,784

Restated fi nancial statements 2012 - cash fl ow statement

8. Notes to the financial statements

8.1. Basis for the presentation of the financial statements

The consolidated financial statements of Ackermans & van Haaren are prepared in accordance with the International Financial Reporting Standards (IFRS) and IFRIC intepretations effective on 31 December 2013 as approved by the European Commission. With reference to Note 7 for more information with respect to the Restated financial statements 2012.

8.2. Business combinations

In pursuance of the agreement that AvH and Vinci concluded on 19 September 2013, AvH acquired exclusive control over CFE, and therefore also over DEME, on 24 December 2013. AvH acquired 15,288,662 CFE shares, representing 60.39% of the capital, by:

  • the acquisition from Vinci by private transaction of 3,066,440 CFE shares at a price of 45 euros per share; and

  • a capital increase in kind to the amount of 550 million euros, as part of which AvH contributed 2,269,050 DEME shares to CFE, in exchange for 12,222,222 newly issued CFE shares, each new share being subscribed for at an issue price of 45 euros.

Following those two transactions, AvH acquired a 60.39% controlling interest in CFE. As a result of those transactions, AvH's joint controlling interest in DEME (50%) also evolved to a controlling interest of 60.39%. Vinci retained a 12.1% interest in CFE after the above-mentioned transactions.

As a result of the acquisition of control as of 24 December 2013, AvH will fully consolidate the balance sheets of CFE, DEME, Rent-A-Port and Rent-A-Port Energy in its financial statements for 2013. Given the fact that the acquisition of control took place just a few calendar days before the year-end, the increased shareholding percentage in those companies will only affect the income statement from 1 January 2014 onwards.

This acquisition of control complies with the definition of a business combination in accordance with IFRS 3 "Business combinations". The historical 50% interest in DEME is revalued, with a positive impact in the income statement, i.e. the difference between the carrying value and 550 million euros, which is the value at which the stake in DEME is contributed to CFE. The goodwill on that transaction must then be allocated as much as possible to the identifiable assets of CFE, DEME, Rent-A-Port and Rent-A-Port Energy.

The implementation of this IFRS standard involves:

  • The (re)valuation of the historical 50% interest in DEME at 550 million euros in accordance with the agreement concluded with Vinci: this revaluation of the initial 50% interest in DEME at 550 million euros results in a book profit of 109 million euros in the consolidated income statement of AvH for the financial year 2013.
Impact on result (€ 1,000)
Revaluation of the initial 50% in DEME 550,000
Carrying value DEME year-end 2013 440,601
109,399
  • Since the fair value of the net assets of Rent-A-Port (45%) and Rent-A-Port Energy (45.6%) is deemed to correspond to their carrying value in the consolidated financial statements of AvH, no revaluation result was recognized on these two group companies.

The transaction price of 687.9 million euros comprises 550 million euros as the contribution value of 50% DEME shares to CFE (no cash expenditure) and 138 million euros paid to Vinci for the purchase of 3,066,440 CFE shares at 45 euros per share.

The full consolidation of CFE, DEME, Rent-A-Port and Rent-A-Port Energy results in the recognition of a goodwill of 252.3 million euros on DEME and a provision for contingent liabilities of 60.3 million euros in connection with the other activities of CFE.

As the transaction took place at the end of December, the valuation process of the identifiable assets and liabilities is not yet finalized. IFRS 3 provides for a timeframe of one year for this.

For the sake of completeness, it should be noted that, as a result of this transaction, the joint controlling interests of AvH and CFE in Rent-A-Port and Rent-A-Port Energy have evolved to controlling interests of AvH (72.18% and 73.15% respectively).

The full consolidation of CFE (including DEME) and the increased stakes in Rent-A-Port and Rent-A-Port Energy were reported as follows, based on figures of CFE on 31 December 2013 which were adapted to the AvH valuation rules with respect to the presentation (equity method) of joint controlling interests :

Business combinations (€ 1,000) CFE

Non-current assets 2,109,212
Current assets 1,766,608
Total assets 3,875,820
Equity - group share 1,193,154
Minority interests 8,064
Non-current liabilities 885,549
Current liabilities 1,789,054
Total equity and liabilities 3,875,820
Total assets 3,875,820
Total liabilities -2,674,602
Minority interests -8,064
Net assets 1,193,154
Exclusion of actuarial losses Defi ned Benefi t Pension Plans, translation differences & CF hedging reserves (1) 6,308
Adjusted net assets 1,199,461
Benefi cial interest % 60.39%
724,414
DEME
Net assets DEME per 31-12-2013 847,701
Benefi cial interest % 60.39%
511,968
Rent-A-Port
Net assets Rent-A-Port per 31-12-2013 23,792
Increase benefi cial interest % 27.18%
6,466
Rent-A-Port Energy
Net assets Rent-A-Port Energy per 31-12-2013 2,439
Increase benefi cial interest % 27.54%
672
Other activities CFE
Net assets CFE 1,199,461
Exclusion of DEME -1,100,000
Net assets CFE 99,461
60.39%
60,069
Exclusion RAP / RAP Energy -7,138
Net assets CFE Construction 52,931
Total net assets (AvH share) 572,038
- Goodwill DEME in consolidated balance sheet CFE (252.300 x 60.39%) 152,376
- Provision for contingent liabilities in connection with CFE's construction activities (-60,309 x 60.39%) -36,424
Transaction price 687,990

(1) Translation differences, actuarial losses on 'Defined benefit pension plans' and hedging reserves are excluded. This does not give rise to a material misstatement of the goodwill.

8.3. Other changes in consolidation scope

In 2013, AvH increased its stake in Sipef (to 26.8 %), Sagar Cements (to 18.6 %), Atenor (to 8.8 %) and Corelio (to 16.3 %).

Since AvH and Extensa subscribed to the capital increase of Leasinvest Real Estate for their share, the shareholding percentage of the AvH group remained unchanged at 30.01%.

On 2 December 2013 Leasinvest Real Estate, via its 100% subsidiary Leasinvest Immo Lux, acquired 100% of the shares of a company owning a retail building of more than 12,000 m² with 475 parking spaces, located in the periphery of the city of Luxemburg which is leased for a fixed term of 10 years to the German DIY group Hornbach.

Anima Care acquired two retirement homes (in La Hulpe and Awans) by taking over 100 % of the shares of Résidence St James SPRL and Château d'Awans SA respectively.

In July 2013, Bank J.Van Breda & C° also acquired the company Axemia NV, an application development company employing seven people.

Participations accounted for using the equity method

(€ 1,000) 2013 2012
Participations accounted for using the equity method
Marine Engineering & Infrastructure 135,998 395,512
Private Banking 479,396 428,667
Real Estate, Leisure & Senior Care 97,867 89,470
Energy & Resources 152,153 155,342
Development Capital 268,132 284,551
AvH & subholdings 3,445 2,499
Total 1,136,991 1,356,041

8.4. Seasonality or cyclicality of operations

Ackermans & van Haaren is active in several segments, each (more or less) cyclically sensitive : dredging & infrastructure, oil & energy markets (DEME, Rent-A-Port), construction (CFE, Van Laere), evolution on the stock exchange and interest rates (Delen Private Bank, JM Finn & Co and Bank J.Van Breda & C°), real estate and interest rates evolution (Extensa & Leasinvest Real Estate), seasonal patterns (Groupe Financière Duval) and evolution of commodity prices (Sipef, Sagar Cements). Also the segments in which the Development Capital participations are active (ICT & Engineering, Real Estate Development & Building Materials, Retail & Distribution en Media & Printing), are confronted with seasonal or cyclical activities.

8.5. Earnings per share

I. Continued and discontinued operations 2013 2012
Net consolidated profi t, share of the group (€ 1,000) 293,901 167,343
Weighted average number of shares (1) 33,138,392 33,134,654
Basic earnings per share (€) 8.87 5.05
Net consolidated profi t, share of the group (€ 1,000) 293,901 167,343
Weighted average number of shares (1) 33,138,392 33,134,654
Impact stock options 63,128 51,892
Adjusted weighted average number of shares 33,201,520 33,186,546
Diluted earnings per share (€) 8.85 5.04
II. Continued activities 2013 2012
Net consolidated profi t from continued activities, share of the group (€ 1,000) 293,901 167,343
Weighted average number of shares (1) 33,138,392 33,134,654
Basic earnings per share (€) 8.87 5.05
Net consolidated profi t from continued activities, share of the group (€ 1,000) 293,901 167,343
Weighted average number of shares (1) 33,138,392 33,134,654
Impact stock options 63,128 51,892
Adjusted weighted average number of shares 33,201,520 33,186,546

(1) Based on number of shares issued, adjusted for treasury shares in portfolio.

8.6. Number of treasury shares

Treasury shares as part of the stock option plan 2013 2012
Opening balance 355,500 369,000
Acquisition of treasury shares 75,000
Disposal of treasury shares -72,000 -13,500
Ending balance 358,500 355,500
Treasury shares as part of the liquidity contract 2013 2012
Opening balance 0
Acquisition of treasury shares 183,287
Disposal of treasury shares -180,262
Ending balance 3,025

As part of AvH's stock option plan, 72,000 shares were sold in 2013 following the exercise of an equal number of stock options. In order to hedge current & future option commitments, AvH also purchased 75,000 treasury shares. The total number of treasury shares held by AvH & subholdings was 358,500 at the end of 2013.

Ackermans & van Haaren concluded a liquidity contract with Kepler Chevreux to improve the liquidity of the AvH share. This agreement ame into effect on 1 July 2013. Kepler Chevreux now trades AvH shares fully independently yet for the account of Ackermans & van Haaren. These transactions are reported on a weekly basis.

8.7. Impairments

Impairments for a total amount of 16.9 million euros were charged against the 2013 results, which is substantially more than in 2012 (6.1 million euros). Those impairments were recognized over several companies across the segments. The main impairments concern Max Green (in view of worsening market conditions and changes in the regulatory framework over the years), Sagar Cements, whose profitability is under pressure from a continuing period of overcapacity on the South Indian cement market, and Euro Media Group, which is facing poor results in France. Impairments recognized by companies accounted for using the equity method are obviously not visible individually, as they are reported in the total contribution of those group companies.

8.8. Contingent liabilities or contingent assets

The contingent liabilities or assets have not changed significantly in relation to the situation set out in the annual report for the 2012 financial year, except for the following:

1) Following the acquisition on 24 December 2013 of more than 30 % of the voting shares of CFE, AvH launched a mandatory public bid (the "Bid") on 11 February 2014 for the CFE shares that are not yet in its possession (more specifically 10,025,820 shares or 39.61 %) at the price of € 45 per share. This bid expires on 5 March 2014. It should be pointed out, however, that Vinci has undertaken not to tender its 3,066,460 CFE shares under the Bid. Consequently, under the Bid, AvH can acquire up to 6,959,360 CFE shares (27.5 %) for a total amount of € 313.2 million. Since the launch of the Bid on 11 February 2014, the CFE share price has consistently been quoted much higher than the € 45 per share in the Bid. AvH has secured sufficient credit lines to meet its financial commitments under the Bid.

2) Also as a result of the change of control over CFE, holders of CFE bonds are entitled to request early redemption of their bonds until the end of March 2014. Although this does primarily create an obligation on the part of CFE, AvH has nevertheless secured sufficient credit lines to enable CFE to meet any demands for early redemption.

3) As a result of the acquisition of control over CFE and the consequent full consolidation of CFE and its subsidiaries in the balance sheet as at 31 December 2013, the contingent liabilities or contingent assets of the CFE group must now also be added to this overview. For a description of those items, we refer to the last financial report and press release of CFE.

9. Events after balance sheet date

• On 22 January 2014, CFE announced higher losses over the 2013 financial year for certain companies of the Contracting and Multitechnics divisions than what had been communicated in the publication of the half-year results. Furthermore, additional goodwill impairments were announced in the Multitechnics division. Those developments have no direct impact on the results of AvH, since the acquisition of control over CFE was only reported in the financial statements at year-end 2013.

• On 30 January 2014, LRE announced having sold the office building on Louisalaan 66 in Brussels for 10.4 million euros, which will show a limited capital gain in the 2014 accounts. This sale is in line with LRE's strategy of divesting smaller, non-strategic properties.

• On 11 February 2014, pursuant to exceeding the 30% threshold of voting shares of CFE, AvH launched a mandatory public bid for all publicly held CFE shares. The bid was issued at the same price as the issue price of the capital increase of CFE, or 45 euros per share.

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