Tuesday 31 August 2021 – 7:00 CET regulated information

First half results 2021

9.3% revenue growth
EBITDA at pre-Covid level
EBIT higher than first half of 2019
Order book at record level
Improved prospects for 2021: substantial increase in revenue to a level close to that of 2019. Net result also expected to increase significantly compared with 2020 without yet attaining the pre-Covid level.

1. Key figures in the first half of 2021

For the period ended June 30 (€ millions)	2021	2020	Change
Revenue	1,629.9	1,491.2	+9.3%
Self-financing capacity (EBITDA) (*)	206.5	159.8	+29.2%
% of revenue	12.7%	10.7%
Operating income (EBIT) (*)	64.1	19.3	+232.1%
% of revenue	3.9%	1.3%
Result for the period - share of the group	42.6	8.4	+407.1%
% of revenue	2.6%	0.6%
Earnings per share (share of the group) (in euro)	1.68	0.33	+409.1%

(€ millions)	June 30, 2021	December 31, 2020	Change
Equity - share of the group	1,819.8	1,787.1	+1.8%
Net financial debt (*)	722.8	601.4	+20.2%
Order book (*)	6,262.2	6,049.1	+3.5%

(*) The definitions are included in the 'Consolidated Financial Statements' section of the financial report.

General introduction

Revenue in the first half of 2021 amounted to € 1,629.9 million, up 9.3% compared with last year. The increase in activity was observed in the three operational segments.

EBITDA amounted to € 206.5 million. This represents 12.7% of the revenue and increased by € 46.7 million compared with that of the first half of 2020, which included the capital gain on disposal of the stake in the Merkur wind farm (€ 63.9 million). The EBITDA returned to its level of the first half of 2019 (€ 207 million).

The operating income in the first half of 2021 amounted to € 64.1 million, exceeding the level reached before the pandemic (€ 61.2 million in the first half of 2019).

The net result, share of the group, amounted to € 42.6 million, which is fivefold compared to that of the first half of 2020. The three operational segments contributed to the very strong growth of the net result.

Equity (share of the group) stood at € 1,819.8 million on 30 June 2021, which is up 1.8% compared with 31 December 2020. In May 2021, CFE paid a dividend of € 25.3 million in respect of the 2020 financial year.

The net financial debt amounted to € 722.8 million on 30 June 2021, compared with € 803 million on 31 June 2020 and € 601.4 million on 31 December 2020. All the financial covenants have been complied with on 30 June 2021.

On 30 June 2021, the order book increased compared to 31 December 2020 and reached a record level of € 6.3 billion.

2. Analysis by segment

Dredging, Environment, Offshore and Infra segment

KEY FIGURES

For the period ended June 30 (€ millions)	2021	2020	Change
Revenue	1,063.0	1,047.9	+1.4%
EBITDA () (*)	187.2	153.8	+21.7%
Operating income (EBIT) () (*)	51.0	21.9	+132.9%
Result for the period - share of the group (*)	35.0	15.5	+125.8%

(€ millions)	June 30, 2021	December 31, 2020	Change
Net financial debt (**)	564.0	489.0	+15.3%
Order book (**)	4,737.0	4,500.0	+5.3%

(*) Excluding amounts restated to take account of the recognition at fair value of the identifiable assets and liabilities of DEME following the acquisition of an additional 50% of the DEME shares on 24 December 2013.

(**) The definitions are included in the 'Consolidated Financial Statements' section of the financial report.

REVENUE

DEME's revenue in the first half of 2021 amounted to € 1,063 million, which is slightly up on the first half of last year.

The Dredging division reported a solid growth of revenue in the first half of 2021: +18% compared with the first half of 2020, or € 507.2 million. The main project in progress is the extension of the port of Abu Qir (Egypt), on which several vessels are deployed. In Europe, DEME successfully finalised the project for the widening and deepening of the Elbe, while work on the access channel to the port of Swinoujscie (Poland) is progressing well. Maintenance dredging activity is mainly concentrated in Belgium, Germany and Africa.

The utilisation capacity of the hopper dredger fleet reached a highly satisfactory level (19.2 weeks compared with 16.8 weeks in the first half of 2020). Despite slight progress, the activity level of the cutters remained low in the first half of 2021 (7.4 weeks utilisation). However, this is set to improve significantly in the second half of the year in particular thanks to the Abu Qir project.

DEME Offshore's revenue amounted to € 335 million in the first half of 2021 (€ 434.6 million in the first half of 2020). As was pointed out earlier, the main projects to be realised in 2021 are mostly in the start-up phase, such as Hornsea 2 (United Kingdom) and Saint-Nazaire (France), where the jack-up vessel 'Innovation' successfully installed the first monopiles using an underwater drill. The share of revenue relating to procurement was extremely limited in the first half of 2021.

DEME Offshore will realise a substantially higher revenue in the second half of the year. Nevertheless, as was said before, 2021 and 2022 will be a period of transition for DEME Offshore before a projected strong growth from 2023 onwards with the start of the projects in Taiwan and the United States.

DEME Infra reported € 119.9 million revenue in the first half of 2021. The three Dutch projects (Terneuzen lock, RijnlandRoute and the Blankenburg connection), which represent a substantial part of the business volume, are making satisfactory progress.

BREAKDOWN OF ACTIVITY BY BUSINESS AREA

For the period ended June 30	2021	2020
Capital dredging	36%	28%
Maintenance dredging	12%	13%
Offshore	32%	41%
Infra	11%	10%
Environment	6%	6%
Others	3%	2%

BREAKDOWN OF ACTIVITY BY GEOGRAPHICAL AREA

For the period ended June 30	2021	2020
Europe (EU)	53%	73%
Europe (non-EU) (*)	21%	3%
Africa	20%	7%
Americas	1%	3%
Asia-Pacific	4%	9%
Middle East	0%	1%
Indian subcontinent	1%	4%

* As a result of Brexit, business carried out in the United Kingdom is included under Europe (non-EU) as of 1 January 2021.

EBITDA AND OPERATING INCOME (EXCLUDING RESTATEMENTS)

EBITDA amounted to € 187.2 million in the first half of 2021 (17.6% of revenue), up by 21.7% compared to the first half of 2020, which included a capital gain of € 63.9 million (disposal of the stake in the Merkur wind farm) and was also impacted by the health crisis and the accident with the Orion, the cost of which is estimated at € 60 million.

Nevertheless, the effects of the pandemic continue to disrupt the execution of projects, albeit to a lesser extent than in 2020. It is mainly the activities outside Europe that are most affected due to travel restrictions and quarantine measures that remain in place in many countries.

The improvement of the EBITDA is especially noticeable in the Dredging division, which succeeded in winning some major contracts that have a favourable impact on revenue and fleet utilisation. Conversely, the temporarily lower level of activity in Offshore weighed on the division's results, as does the unavailability of the vessel 'Orion' following the accident in May 2020. The 'Orion' will not be operational until the end of the first quarter of 2022.

DEME Concessions continues to invest large sums of money (€ 13.1 million in the first half of 2021, which have been expensed) in the collection of nodules. In April 2021, GSR, a subsidiary of DEME, deployed its deep-sea robot PATANIA II at a depth of 4,500 metres in the Clarion-Clipperton fracture zone in the South Pacific. The test campaign of the PATANIA II was a success: the deep-sea robot demonstrated its ability to drive, manoeuvre and collect polymetallic nodules on the seabed.

The operating income (EBIT), which includes the results of the equity-accounted companies, amounted to € 51.0 million, up by 132.9% compared with the first half of 2020.

NET RESULT (EXCLUDING RESTATEMENTS)

DEME's net result amounted to € 35.0 million in the first half of 2021 (€ 15.5 million in the first half of 2020).

ORDER BOOK

The order book amounted to € 4,737 million on 30 June 2021, which is up 10.2% and 5.3% respectively compared with 30 June 2020 and 31 December 2020.

The breakdown of the order book between the operating divisions is as follows:

(€ millions)	June 30, 2021	December 31, 2020	Change
Dredging	2,024	2,187	-7.5%
Offshore	1,433	1,131	+26.7%
Infra	842	896	-6.0%
Environment	248	190	+30.5%
Others	190	96	+97.9%
Total	4,737	4,500	+5.3%

In the first half of 2021, DEME won several major contracts, the most important of which are:

the installation of the water intake points of the nuclear power plant of Hinkley Point (United Kingdom). The contract is worth more than € 200 million;
the design, construction, transport and installation of the 28 monopile foundations for the German Arcadis Ost 1 offshore wind farm. The 100-metre long monopiles will weigh more than 2,000 tonnes each. Construction will begin in the second half of 2021; installation is scheduled for the first half of 2022 and will be carried out by the vessel 'Orion'. The contract is worth between € 150 million and € 300 million.

The following contracts are not yet included in the order book on 30 June 2021:

the construction of the Hai Long 2, Hai Long 3 and Zhong Neng offshore wind farms situated off the coast of Taiwan;
the transport and installation of the wind turbines of the Vineyard Wind 1 offshore wind farm with a capacity of 800 MW and situated off the East Coast of the United States. It is the first contract to be won in the United States by the Offshore division;
the realisation of the Scheldt Right Bank project, which is part of the Oosterweel link in Antwerp.

INVESTMENTS

The investments in the first half of 2021 amounted to € 133.6 million, which is virtually unchanged relative to the first half of last year. Docking costs (major maintenance of vessels) account for part of this amount. Those costs were considerable during the first half of the year since in 2020, as part of the measures taken to mitigate the impact of the health crisis, it was decided to postpone certain docking activities to 2021.

Investments will be higher in the second half of the year than in the first half, and are expected to amount to more than € 350 million over the full year.

Two vessels were launched during the first half of 2021:

the 'Groenewind', a SWATH (Small Waterplane Area Twin Hull), which will carry the maintenance crews of the Belgian wind farms SeaMade and Rentel. The vessel is rented on a long-term lease from Siemens Gamesa Renewable Energy;
the 'Spartacus', the world's most powerful cutter suction dredger (Smart Mega Cutter). The vessel can operate down to a depth of 45 metres. At the beginning of August, it was deployed on its first assignment, the Abu Qir project in Egypt where DEME expects to dredge a volume of more than 150 million m³.

The vessels currently under construction are the 'Orion' and the 'Green Jade', two DP3 vessels for the installation of wind turbines that will be delivered in the first quarters of 2022 and 2023 respectively.

Furthermore, DEME Offshore has decided that the 'DP 2 Sea Installer' will be substantially upgraded: the hoisting capacity of its crane will increase from 900 to 1,600 tonnes, enabling it to install wind turbines of 15 MW (instead of 10 MW today). The modernisation of the 'Sea Installer', and the option to also upgrade the 'Sea Challenger', are prompted by DEME's intention to stay ahead in the installation of offshore wind turbines (WTG).

During the first six months, DEME sold some of its oldest vessels for a total sum of around € 25 million. Those vessels were disposed of at a slightly higher value than their net carrying amount.

NET FINANCIAL DEBT

The net financial debt amounted to € 564.0 million, up by 15.3% compared with 31 December 2020 but down by 15.2% compared with 30 June 2020.

The increased debt in the first half of 2021 is explained by the net investments of the period, the payment of a dividend of € 20.4 million, and the increased working capital requirement, chiefly in the Offshore division, partly offset by the operating cash flows of the half-year period.

On 30 June 2021, DEME had € 316.4 million cash available, and € 112 million unused confirmed credit lines. On 30 June 2021, € 5 million was used of the commercial paper programme (€ 125 million).

DEVELOPMENTS IN GREEN HYDROGEN

In July 2021, Hyport Coordination Company LLC, a 50% subsidiary of DEME Concessions based in Oman, signed a cooperation agreement with the German company Uniper. Initially, this company will develop a green hydrogen plant of 250 to 500 MW (HYPORT® Duqm) in the exclusive economic zone of the port of Duqm. The green hydrogen produced with electricity generated by solar panels and onshore wind turbines will then be converted into green ammonia and transported to Europe.

The development of green hydrogen plants is entirely in keeping with DEME's strategy of global energy transition and decarbonisation of the economy.

Contracting segment

KEY FIGURES

For the period ended June 30 (€ millions)	2021	2020	Change
Revenue	521.0	423.2	+23.1%
Operating income (EBIT) (*)	8.5	-5.6	+251.8%
Result for the period - share of the group	4.6	-7.6	+160.4%

(€ millions)	June 30, 2021	December 31, 2020	Change
Net financial surplus (*)	84.2	123.4	-31.8%
Order book (*)	1,468.7	1,492.6	-1.6%

(*) The definitions are included in the 'Consolidated Financial Statements' section of the financial report.

REVENUE

CFE Contracting reported a substantial recovery of its revenue in the first half of 2021, with an increase of 23.1% to € 521 million.

The segment's revenue exceeded the pre-Covid level (+3.9% compared to the first half of 2019).

Construction

In Belgium, business increased by 13.8%, mainly in Wallonia and Brussels where several projects have started up, such as the Zin project.

In Poland, revenue increased significantly, driven by several projects in the logistics sector.

Multitechnics

VMA's revenue amounted to € 104.6 million (€ 78.1 million in the first half of 2020). All business lines in the Multitechnics division reported a strong growth, apart from Automotive, where one of the major projects planned for 2021 was cancelled by the customer.

Rail & Utilities

The vigorous revenue increase at MOBIX is explained by the ramp-up of the LuWa project (public lighting in Wallonia) and a sustained level of activity in signalling (Enves project - automatic train braking system).

For the period ended June 30 (€ millions)	2021	2020	Change
Construction	355.8	300.3	+18.5%
Belgium	245.7	215.9	+13.8%
International	110.1	84.4	+30.5%
Multitechnics (VMA)	104.6	78.1	+33.9%
Rail & Utilities (MOBIX)	60.6	44.8	+35.3%
Total Contracting	521.0	423.2	+23.1%

OPERATING INCOME

The operating income amounted to € 8.5 million, or an increase of € 14.1 million compared to 30 June 2020. The operating margin increased from -1.3% in the first half of 2020 to +1.6% in the first half of 2021.

The operating income in the first half of 2020 had been negatively impacted by the shutdown of building sites in Belgium and Luxembourg from mid-March until the beginning of May. In 2021, the direct impact of the pandemic is relatively limited. However, the indirect impact is affecting the operational entities of Contracting to differing degrees, mainly the sharply rising prices of materials which cannot always be entirely passed on to the customers.

The results of CFE Polska, MOBIX and VMA have evolved positively compared with the first half of 2020. On the other hand, several sources of loss remain in the construction entities in Flanders, and mostly relate to projects in the completion phase.

NET RESULT

The net result amounted to € 4.6 million in the first half of 2021, compared with a net loss of € 7.6 million in the first half of 2020.

ORDER BOOK

The order book amounted to € 1,468.7 million on 30 June 2021, which is virtually stable compared to 31 December 2020.

Order intake was particularly high in Poland and Luxembourg. Conversely, the order book of the Construction Belgium division is decreasing. The persistently difficult market conditions (pressure on prices) necessitate a more selective order intake.

(€ millions)	June 30, 2021	December 31, 2020	Change
Construction	1,055.7	1,058.7	-0.3%
Belgium	804.3	839.8	-4.2%
International	251.4	218.9	+14.8%
Multitechnics (VMA)	219.2	251.1	-12.7%
Rail & Utilities (MOBIX)	193.8	182.8	+6.0%
Total Contracting	1,468.7	1,492.6	-1.6%

NET FINANCIAL SURPLUS

The segment had a net financial surplus of € 84.2 million on 30 June 2021, which is down by 4.4% and 31.8% respectively compared to 30 June 2020 and 31 December 2020, and is essentially explained by an increased working capital requirement.

Real Estate Development segment

KEY FIGURES

For the period ended June 30 (€ millions)	2021	2020	Change
Revenue	52.9	33.4	+58.4%
Operating income (EBIT) (*)	10.8	5.7	+89.5%
Result for the period - share of the group	8.5	3.2	+165.6%

(*) The definitions are included in the 'Consolidated Financial Statements' section of the financial report

EVOLUTION OF THE CAPITAL EMPLOYED (*)

BREAKDOWN BY STAGE OF PROJECT DEVELOPMENT

(€ millions)	June 30, 2021	December 31, 2020
Properties in development	199	156
Properties under construction	17	36
Unsold units post completion	1	0
Total capital employed	217	192

BREAKDOWN BY COUNTRY

(€ millions)	June 30, 2021	December 31, 2020
Belgium	106	104
Grand Duchy of Luxembourg	52	54
Poland	59	34
Total capital employed	217	192

(*) The definitions are included in the 'Consolidated Financial Statements' section of the financial report

The capital employed amounted to € 217 million on 30 June 2021, which is up 13% compared with end of December 2020.

In the Brussels Region, several major residential projects were delivered in the first half of 2021: Ernest The Park (Ixelles), the final phase of Hauts Prés (Uccle), and the Park West residence (European district). Around 90% of the apartments of those projects are sold. Construction of the Patio building (Erasmus Gardens, Anderlecht) has begun: more than 80% of the apartments have already found buyers. Planning permission has been obtained, or will be obtained shortly, for several projects, so that marketing and construction can begin in the second half of 2021.

In Liège, BPI and its partner concluded the sale of the company Ernest 11, which owns a 5,000 m² office building let on a long lease to FOREM. Since the sale was transacted on 1 July 2021, its positive impact will only be reported in the second half of 2021. On the Bavière site, marketing and construction of the first residential building continued. The refurbishment of the Grand Poste building has finished: this landmark building, testifying to the economic redevelopment of Liège, will be officially opened this autumn.

In Luxembourg, four projects are currently in the course of construction and marketing. Take-up rates for the housing units are close to 100%. In June 2021, BPI Luxembourg and its co-development partner won a public call for tenders for the acquisition of a building plot on the Belval site, in the south of Luxembourg City. A mixeduse project will be developed on this site with 2,100 m² of retail space, 7,000 m² of office space, 10,500 m² of housing units, and 260 parking spaces. Construction and marketing are expected to start in 2023 once planning permission has been obtained.

In Poland, BPI sold all the retail space (5,000 m²) of the Bulwary Ksiazece project (Wroclaw), which was delivered at the end of 2020, and continued to renew and expand its real estate development portfolio. Three new sites were acquired during the first half year:

a building plot on which more than 240 housing units will be put up (17,000 m²). This project is ideally situated, very close to the central railway station of Warsaw;
a site situated in the Mokotow neighbourhood, in the centre of one of the main business districts of Warsaw. Planning permission has already been granted for this site, where BPI will develop a microliving concept intended for letting. The programme will comprise around 600 housing units;
a building plot on the edge of the city centre of Wroclaw for the development of 10,000 m² of residential premises, or more than 185 housing units. The planning permission will be submitted in September 2021 with a view to the development of a sustainable project of high architectural quality.

NET FINANCIAL DEBT

The net financial debt amounted to € 127.2 million on 30 June 2021. The increase of € 21 million compared with 31 December 2020 is mainly explained by the acquisitions made in Poland.

NET RESULT

BPI's net result amounted to € 8.5 million compared to € 3.2 million on 30 June 2020. The main contributors to the result of the real estate development segment are the Luxembourg projects under development and the sale of the retail space in Wroclaw.

Holding, non-transferred activities and eliminations between segments

For the period ended June 30 (€ millions)	2021	2020	Change
Revenue excluding eliminations between segments	6.3	10.3	-38.8%
Eliminations between segments	-13.3	-23.6	n.s.
Revenue including eliminations between segments	-7.0	-13.3	n.s.
Operating income (EBIT) (*)	-3.5	0.0	n.s.
Result for the period - share of the group	-3.4	-0.6	-466.7%

(*) The definitions are included in the 'Consolidated Financial Statements' section of the financial report.

REVENUE

The revenue, excluding eliminations between segments, amounted to € 6.3 million in the first half of 2021, down by 38.8% compared to first half of 2020.

Activity is essentially confined to the Brussels-South wastewater treatment plant project, which is in the commissioning phase.

OPERATING INCOME

The operating loss amounted to € -3.5 million. This loss breaks down into a positive contribution of € 0.9 million (CFE share) from Green Offshore, a negative contribution of € 1.0 million (CFE share) from Rent-A-Port, operational losses on completed projects, and an under-coverage of overheads.

Rent-A-Port

Through its subsidiary Infra Asia Investment, Rent-A-Port is continuing the development of its five port concessions in the north of Vietnam, in the provinces of Haiphong and Quang Ninh. The COVID-19 pandemic, from which Vietnam had been relatively spared until the beginning of 2021, has seen a resurgence in the last few months, forcing the authorities to take drastic measures such as lockdowns, border closures and tight travel restrictions between provinces. Those measures prevented prospective investors and customers from travelling to Haiphong, resulting in delays in finalising contracts for the sale of industrial land. Those sales were limited to eight hectares in the first half of 2021. Despite those temporary disruptions, the medium and long-term development potential of the port concessions remains intact.

NET RESULT

The net result amounted to € -3.4 million in the first half of 2021, compared with € -0.6 million in the first half of 2020.

NET FINANCIAL DEBT

On 30 June 2021, the segment's net financial debt amounted to € 115.8 million, a decrease of 10.6% compared to 31 December 2020. This debt decrease is essentially explained by a receipt of € 11.3 million paid by Credendo relating to the receivables in respect of the Grand Hotel furniture in N'Djamena (Chad).

3. Outlook for 2021

CFE expects a substantial increase in revenue in 2021 to a level close to that of 2019. Its net result is also expected to increase significantly in 2021, without yet attaining the pre-Covid level.

Thanks to a well-filled order book, DEME should realise a substantial increase in revenue and net result in 2021.

CFE Contracting also expects an increase in revenue and net result in 2021.

BPI's net result is expected to decrease slightly in 2021 but should nevertheless remain on a high level.

4. Social responsibility and sustainability commitment

Sustainability lies at the heart of the CFE Group's strategy. By analysing the 17 Sustainable Development Goals of the United Nations, DEME, CFE Contracting and BPI were able to identify their own priority goals. Those goals centre around five key themes: "Build for the future", "Be a great place to work", "Offer innovative solutions", "Drive the energy transition towards climate neutrality" and "Create sustainable shareholder value". This sustainable approach and an effective ESG risk management enabled the CFE Group to achieve remarkable results in the survey carried out by the rating agency Sustainalytics. With a score of 27.8 (Medium Risk), the CFE Group is among the frontrunners in its sector.

Well aware of its social responsibility, the CFE Group is not indifferent to the plight of those hit by this summer's floods in Belgium. CFE supports the Belgian Red Cross by undertaking to double the sum of the donations made by its employees.

But we don't need a disaster to be helpful. The teams of CFE Polska understood this, and recently joined up with the teams of the Majaland theme parks to raise funds to finance school refurbishment projects in the Wiazowna region.

To fulfil their ambition "Build for the future", CFE Contracting and BPI pooled their know-how in the joint venture Wood Shapers at the beginning of 2020. After the iconic Wooden project in Luxembourg, Wood Shapers this time teamed up with BPC for the Monteco project, the tallest wooden building in the Brussels Region.

DEME is making rapid headway in its "Fleet of the future" programme. The 'Spartacus' (the world's most powerful cutter suction dredger and the first in the industry to run on LNG) and the 'Groenewind' (vessel for the maintenance of offshore wind turbines, capable of reducing its fuel consumption by as much as 50%) have joined DEME's fleet and contribute significantly to its greening. Overall, DEME continues its efforts to make its fleet more energy efficient. 30% of the installed capacity of DEME's fleet is technically ready to run on LNG, thereby reducing CO2 emissions by as much as 25% and strongly reducing SOx, NOx and other particulates.

CFE Contracting contributes to its goal "Drive the energy transition towards climate neutrality" by optimising the transportation of materials to its construction sites. Following the highly successful experiences of its pilot projects in Belgium and Luxembourg in 2020, new projects are this year again making use of construction consolidation centres.

For BPI, the carbon goal lies at the very heart of its projects. Renovation, geothermal energy and reuse of materials are important elements of their new developments. The Key West and Arboreto projects are the best examples of this approach. Moreover, BPI seeks to include multimodal transport in its projects so as to integrate them in the heart of the city in a sustainable manner.

Green energy production also enables DEME to meet its objectives of climate neutrality. DEME is still very actively engaged in offshore wind farm projects, and has installed nearly 2,500 wind turbines since their inception in 2000 (Climate & Energy – Explore).

But DEME does not stop there; it also innovates in several green hydrogen initiatives. One particular example is DEME's participation in the HYVE consortium to invest in the production of green hydrogen. This consortium pursues a profitable and sustainable production of hydrogen in gigawatt terms. HYVE empowers the Flemish region to move towards a hydrogen-based economy and the transition to a carbon-neutral industry in Europe. The HYPORT® Duqm and PosHYdron initiatives will also allow DEME to achieve very significant progress in the area of green hydrogen.

A sound management of resources and building materials is an important challenge for the sector and is perfectly in keeping with CFE's ambitions of "Build for the future".

The launch of the ZIN project by the teams of BPC, Van Laere and VMA will accelerate the breakthrough of circular construction. Circularity is at the heart of this ambitious project that endeavours to preserve, reuse or recycle 95% of the materials of existing buildings, as well as the C2C certification of 95% of the new materials. In the Tweewaters project, the teams have found an ingenious way to use pumped water, which is usually discharged into the neighbouring river, by working together with the nearby production plants of the Stella Artois brewery.

The LuWa renovation plan provides for the replacement of the sodium lamps by LED lamps and the modernisation of the infrastructure on a 2,700 kilometre network of motorways and freeways. Thanks to a system for varying the light intensity, energy savings of up to 76% can be achieved in the long term, 166,000 tonnes of CO2 emissions avoided, and light pollution reduced.

Innovation and the protection of the natural capital are at the heart of DEME's business. In order to reduce the impact of rising sea levels and the increased risk of flooding in the estuarine areas, the Bankbusters consortium will investigate and design an artificial tidal marsh, reusing dredged sediments. In this public-private consortium, we work in partnership with, among others, IFLUX, Antwerp University, Ghent University, with the support of the Agency for Innovation & Entrepreneurship and the Blue Cluster.

5. Overview of the financial statements

5.1. Consolidated statement of income

For the period ended June 30 (in € thousands)	2021	2020
Revenue	1,629,903	1,491,229
Other operating income	48,625	112,750
Purchases	(882,460)	(901,428)
Remuneration and social security payments	(357,483)	(343,226)
Other operating expenses	(232,041)	(200,602)
Depreciation and amortisation	(153,630)	(156,168)
Goodwill depreciation	0	0
Income from operating activities	52,914	2,555
Share of profit (loss) of investments accounted for using equity method	11,232	16,786
Operating income	64,146	19,341
Cost of financial debt	(2,434)	(3,164)
Other financial expenses and income	(5,496)	(6,425)
Financial result	(7,930)	(9,589)
Result before tax	56,216	9,752
Income tax expenses	(12,785)	(2,557)
Result for the period	43,431	7,195
Result attributable to non-controlling interests	(809)	1,235
Result for the period - share of the group	42,622	8,430
Earnings per share (share of the group) (EUR) (diluted and basic)	1.68	0.33

For the period ended June 30 (in € thousands)	2021	2020
Result for the period - share of the group	42,622	8,430
Result for the period	43,431	7,195
Changes in fair value related to financial derivatives	12,963	(6,228)
Exchange differences on translation	3,965	(9,059)
Deferred taxes	(1,698)	555
Other elements of the comprehensive income to be reclassified to profit or loss in subsequent periods	15,230	(14,732)
Re-measurement on defined benefit and contribution plans	0	0
Deferred taxes	0	0
Other elements of the comprehensive income not to be reclassified to profit or loss in subsequent periods	0	0
Total other elements of the comprehensive income recognized directly in equity	15,230	(14,732)
Comprehensive income :	58,661	(7,537)
- Share of the group	58,036	(6,216)
- Attributable to non-controlling interests	625	(1,321)
Result for the period (share of the group) per share (EUR) (diluted and basic)	2.29	(0.25)

5.2. Consolidated statement of financial position

(in € thousands)	June 2021	December 2020
Intangible assets	112,584	111,259
Goodwill	172,127	172,127
Property, plant and equipment	2,503,457	2,515,052
Investments accounted for using equity method	226,766	204,095
Other non-current financial assets	89,789	89,196
Non-current financial derivatives	509	1,433
Other non-current assets	15,341	15,052
Deferred tax assets	132,260	127,332
Non-current assets	3,252,833	3,235,546
Inventories	209,210	184,565
Trade and other operating receivables	954,353	867,761
Other current operating assets	86,757	57,454
Other current non-operating assets	26,062	21,731
Current financial derivatives	8,143	7,831
Current financial assets	22,411	2,900
Assets held for sale	0	0
Cash and cash equivalents	420,064	759,695
Current assets	1,727,000	1,901,937
Total assets	4,979,833	5,137,483
Share capital	41,330	41,330
Share premium	800,008	800,008
Retained earnings	1,076,714	1,059,406
Defined benefit and contribution pension plans	(41,783)	(41,783)
Reserves related to financial derivatives	(38,332)	(49,715)
Exchange differences on translation	(18,102)	(22,133)
Equity – share of the group	1,819,835	1,787,113
Non-controlling interests	18,054	17,835
Equity	1,837,889	1,804,948
Employee benefit obligations	77,176	76,686
Non-current provisions	11,923	13,239
Other non-current liabilities	33,881	32,287
Non-current bonds	29,846	29,794
Non-current financial liabilities	830,790	918,681
Non-current financial derivatives	10,852	10,095
Deferred tax liabilities	93,335	96,961
Non-current liabilities	1,087,803	1,177,743
Current provisions	39,464	44,163
Trade and other operating payables	1,214,190	1,178,012
Current tax liabilities	81,114	75,283
Current bonds	0	0
Current financial liabilities	282,202	412,649
Current financial derivatives	7,189	7,750
Other current operating liabilities	199,837	192,424
Other current non-operating liabilities	230,145	244,511
Current liabilities	2,054,141	2,154,792
Total equity and liabilities	4,979,833	5,137,483

5.3. Consolidated cash-flow statement

For the period ended June 30 (in € thousands)	2021	2020

Operating activities
Income from operating activities	52,914	2,555
Depreciation and amortisation of (in)tangible assets and investment property	153,630	156,168
(Decrease)/increase of provisions	(4,350)	1,202
Impairments on assets and other non-cash items	7,498	(151)
Loss/(profit) on disposal of tangible and financial fixed assets	(3,291)	(64,605)
Dividends received from investments accounted for using equity method	11,103	14,779
Cash flows from (used in) operating activities before changes in working capital	217,504	109,948
Decrease/(increase) in trade receivables and other current and non-current receivables	(121,273)	(999)
Decrease/(increase) in inventories	(28,114)	(46,700)
Increase/(decrease) in trade payables and other current and non-current payables	18,194	18,123
Income tax paid/received	(17,708)	(12,117)
Cash flows from (used in) operating activities	68,603	68,255
Investment activities
Proceeds from sales of intangible assets and property, plant and equipment	28,155	3,886
Purchases of intangible assets and of property, plan and equipment	(142,338)	(134,206)
Acquisition of subsidiaries net of cash acquired	0	0
Variation of the investment percentage in investment accounted for using equity method	0	0
Capital decrease/(increase) of investments accounted for using equity method	(14,727)	(5,088)
Proceeds from sales of subsidiaries	0	88,898
Repayment of borrowings (new borrowings) given to investments accounted for using equity method	(1,273)	(3,463)
Cash flows from (used in) investing activities	(130,183)	(49,973)
Financing activities
Interest paid	(5,961)	(7,217)
Interest received	4,059	4,156
Other financial expenses and income	(5,638)	(5,486)
Receipts from new borrowings	15,402	327,826
Repayment of borrowings	(261,518)	(139,650)
Dividends paid	(25,314)	0
Cash flows from (used in) financing activities	(278,970)	179,629
Net increase/(decrease) in cash position	(340,550)	197,911
Cash and cash equivalents, opening balance	759,695	612,206
Effects of exchange rate changes on cash and cash equivalents	919	(4,792)
Cash and cash equivalents, closing balance	420,064	805,325

5.4. Figures per share

For the period ended June 30	2021	2020
Total number of shares	25,314,482	25,314,482
Earnings per share (share of the group) (in euro)	1.68	0.33
Equity per share (share of the group) (in euro)	71.89	68.83

6. Information related to the share

On 30 June 2021, CFE's share capital amounted to € 41,329,482.42, divided into 25,314,482 shares, with no declared par value. The Company's shares are registered or in electronic form.

CFE's equity base as of 30 June 2021 was as follows:

Shares with no par value	25,314,482
Registered shares	19,010,407
Shares in electronic form	6,304,075

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

Ackermans & van Haaren NV Begijnenvest 113

VINCI Construction SAS 5, cours Ferdinand-de-Lesseps F-92851 Rueil-Malmaison Cedex (France) 3,066,460 shares or 12.11%

B-2000 Antwerp (Belgium) 15,720,684 shares or 62.10%

7. Corporate governance

The ordinary general meeting of 6 May 2021 renewed the directors' mandates of Luc Bertrand, Piet Dejonghe, Jan Suykens, John-Eric Bertrand and Koen Janssen for a period of four years, ending after the general meeting of May 2025.

Mr Luc Bertrand was reappointed as Chairman of the Board of Directors and also becomes Chairman of the Nomination and Remuneration Committee.

Mr Piet Dejonghe was reappointed as Managing Director.

The ordinary general meeting of 6 May 2021 appointed Mrs Hélène Bostoen as independent director for a period of four years, ending after the general meeting of May 2025.

Mrs Hélène Bostoen becomes a member of the Audit Committee and of the Nomination and Remuneration Committee in replacement of Mr Philippe Delusinne, who remains a director but lost his status as independent director on 7 May 2021 due to the fact that he has been on the Board of Directors of CFE for more than 12 years.

MucH SRL, represented by Mrs Muriel De Lathouwer, becomes a member of the Nomination and Remuneration Committee.

8. Shareholders' agenda

Publication of interim statements	23 November 2021 (before opening of the stock market)
Publication of 2021 annual financial statements	28 February 2022 (before opening of the stock market)
Publication of interim statements	19 May 2022 (before opening of the stock market)
Publication of 2022 half-year financial statements	31 August 2022 (before opening of the stock market)

* * *

About CFE

CFE, founded in 1880, is a Belgian industrial group active in three different segments. The Dredging, Environment, Offshore & Infra segment is carried out by its wholly owned subsidiary DEME, one of the world leaders in the field. DEME has a modern fleet of multipurpose vessels equipped with the latest technologies. The Contracting segment encompasses the group's construction, multitechnics and rail activities in Belgium, Luxembourg and Poland. The third, Real Estate Development segment, covers the real estate projects developed by BPI in Belgium, Luxembourg and Poland.

The CFE group currently employs more than 8,000 people and is active on every continent. CFE is listed on Euronext Brussels and is 62.10% owned by Ackermans & van Haaren.

* * *

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

Note to editors

For further information, please contact, at CFE:

Piet Dejonghe, Managing Director, tel. +32.2.661.13.19, [email protected] Fabien De Jonge, Chief Financial Officer, tel. +32 2 661 13 12, [email protected]

INTERIM REPORT

AS OF JUNE 30, 2021

	DEFINITIONS 4
	CONSOLIDATED FINANCIAL STATEMENTS5
	CONSOLIDATED STATEMENT OF INCOME 5
	CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 5
	CONSOLIDATED STATEMENT OF FINANCIAL POSITION 6
	CONSOLIDATED STATEMENT OF CASH FLOWS 7
	CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 8
	SHARE CAPITAL AND RESERVES 8
	EARNINGS PER SHARE 8
	NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS9
1.	GENERAL POLICIES 11
2.	CONSOLIDATION METHODS11
	SCOPE OF CONSOLIDATION 11
	INTRA-GROUP TRANSACTIONS 11
	TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN COMPANIES AND ESTABLISHMENTS 12
	FOREIGN CURRENCY TRANSACTIONS 12
3.	ACCOUNTING RULES AND METHODS 12
4.	SEGMENT REPORTING12
	OPERATING SEGMENTS 12
	CONSOLIDATED STATEMENT OF INCOME 13
	BREAKDOWN OF REVENUE OF DEME 13
	BREAKDOWN OF REVENUE IN THE CONTRACTING SEGMENT 13
	CONSOLIDATED STATEMENT OF FINANCIAL POSITION 14
	CONSOLIDATED STATEMENT OF CASH FLOWS 15
	OTHER INFORMATION 15
	GEOGRAPHICAL INFORMATION 15
5.	ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES16
6.	OTHER OPERATING INCOME AND EXPENSES 16
7.	FINANCIAL RESULT 16
8.	NON-CONTROLLING INTERESTS 16
9.	INCOME TAX 16
10.	PROPERTY, PLANT AND EQUIPMENT17
11.	INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD 18
12.	INVENTORIES 18
13.	TRADE RECEIVABLES AND OTHER OPERATING RECEIVABLES18
14.	PROVISIONS OTHER THAN THOSE RELATING TO NON-CURRENT EMPLOYEE BENEFIT OBLIGATIONS18
15.	CONTINGENT ASSETS AND LIABILITIES 19
16.	DERIVATIVE FINANCIAL INSTRUMENTS 19

17.	NET FINANCIAL DEBT19
18.	FINANCIAL RISK MANAGEMENT 21
19.	OTHER COMMITMENTS GIVEN 23
20.	OTHER COMMITMENTS RECEIVED23
21.	LITIGATION23
22.	RELATED PARTIES23
23.	SUBSEQUENT EVENTS 24
24.	IMPACT OF FOREIGN CURRENCIES24
25.	SEASONAL NATURE OF THE BUSINESS 24
	ALTERNATIVE PERFORMANCE MEASURES RECONCILIATION25
	STATEMENT ON THE TRUE AND FAIR NATURE OF THE FINANCIAL STATEMENTS AND THE TRUE AND FAIR NATURE OF THE PRESENTATION IN THE MANAGEMENT REPORT 27
	GENERAL INFORMATION ABOUT THE COMPANY27
	STATUTORY AUDITOR'S REPORT ON THE REVIEW OF THE CONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION AS AT 30 JUNE 2021 AND FOR THE SIX-MONTH PERIOD THEN ENDED28

DEFINITIONS

Working capital requirement	Inventories + trade receivables and other operating receivables + other current assets - trade payables and other operating liabilities - tax payables - other current liabilities
Capital employed	Equity of real estate segment + net financial debt of real estate segment
Net financial debt (NFD)	Non-current bonds + non-current financial liabilities + current bonds + current financial liabilities - cash and cash equivalents
Income from operating activities	Revenue + other operating income + purchases + remunerations and social security payments + other operating expenses + depreciation and amortisation + goodwill depreciation
Operating income (EBIT)	Income from operating activities + share of profit (loss) of investments accounted for using equity method
EBITDA	Income from operating activities + depreciation and amortisation + goodwill depreciation
Return on equity (ROE)	Net income, share of the group / equity, share of the group
Order book	Revenue to be generated by the projects for which the contract has been signed and has come into effect (after notice to proceed has been given or conditions precedent have been fulfilled) and for which project financing

is in place.

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME

For the period ended June 30 (in € thousands)	Notes	2021	2020
Revenue		1,629,903	1,491,229
Other operating income	6	48,625	112,750
Purchases		(882,460)	(901,428)
Remuneration and social security payments		(357,483)	(343,226)
Other operating expenses		(232,041)	(200,602)
Depreciation and amortisation		(153,630)	(156,168)
Goodwill depreciation		0	0
Income from operating activities		52,914	2,555
Share of profit (loss) of investments accounted for using equity method	11	11,232	16,786
Operating income		64,146	19,341
Cost of financial debt	7	(2,434)	(3,164)
Other financial expenses and income	7	(5,496)	(6,425)
Financial result		(7,930)	(9,589)
Result before tax		56,216	9,752
Income tax expenses	9	(12,785)	(2,557)
Result for the period		43,431	7,195
Result attributable to non-controlling interests	8	(809)	1,235
Result for the period - share of the group		42,622	8,430
Earnings per share (share of the group) (EUR) (diluted and basic)		1.68	0.33

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the period ended June 30	2021	2020
(in € thousands)
Result for the period - share of the group	42,622	8,430
Result for the period	43,431	7,195
Changes in fair value related to financial derivatives	12,963	(6,228)
Exchange differences on translation	3,965	(9,059)
Deferred taxes	(1,698)	555
Other elements of the comprehensive income to be reclassified to profit or loss in subsequent periods	15,230	(14,732)
Re-measurement on defined benefit and contribution plans	0	0
Deferred taxes	0	0
Other elements of the comprehensive income not to be reclassified to profit or loss in subsequent periods	0	0
Total other elements of the comprehensive income recognized directly in equity	15,230	(14,732)
Comprehensive income :	58,661	(7,537)
- Share of the group	58,036	(6,216)
- Attributable to non-controlling interests	625	(1,321)
Result for the period (share of the group) per share (EUR) (diluted and basic)	2.29	(0.25)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(in € thousands)	Notes	June 2021	December 2020
Intangible assets		112,584	111,259
Goodwill		172,127	172,127
Property, plant and equipment	10	2,503,457	2,515,052
Investments accounted for using equity method	11	226,766	204,095
Other non-current financial assets		89,789	89,196
Non-current financial derivatives	16	509	1,433
Other non-current assets		15,341	15,052
Deferred tax assets	11	132,260	127,332
Non-current assets		3,252,833	3,235,546
Inventories	12	209,210	184,565
Trade and other operating receivables	13	954,353	867,761
Other current operating assets		86,757	57,454
Other current non-operating assets		26,062	21,731
Current financial derivatives	16	8,143	7,831
Current financial assets		22,411	2,900
Assets held for sale	5	0	0
Cash and cash equivalents	17	420,064	759,695
Current assets		1,727,000	1,901,937
Total assets		4,979,833	5,137,483
Share capital		41,330	41,330
Share premium		800,008	800,008
Retained earnings		1,076,714	1,059,406
Defined benefit and contribution pension plans		(41,783)	(41,783)
Reserves related to financial derivatives	16	(38,332)	(49,715)
Exchange differences on translation		(18,102)	(22,133)
Equity – share of the group		1,819,835	1,787,113
Non-controlling interests		18,054	17,835
Equity		1,837,889	1,804,948
Employee benefit obligations		77,176	76,686
Non-current provisions	14	11,923	13,239
Other non-current liabilities		33,881	32,287
Non-current bonds	17	29,846	29,794
Non-current financial liabilities	17	830,790	918,681
Non-current financial derivatives	16	10,852	10,095
Deferred tax liabilities		93,335	96,961
Non-current liabilities		1,087,803	1,177,743
Current provisions	14	39,464	44,163
Trade and other operating payables		1,214,190	1,178,012
Current tax liabilities		81,114	75,283
Current bonds	17	0	0
Current financial liabilities	17	282,202	412,649
Current financial derivatives	16	7,189	7,750
Other current operating liabilities		199,837	192,424
Other current non-operating liabilities		230,145	244,511
Current liabilities		2,054,141	2,154,792
Total equity and liabilities		4,979,833	5,137,483

CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended June 30 (in € thousands)	Notes	2021	2020
Operating activities
Income from operating activities		52,914	2,555
Depreciation and amortisation of (in)tangible assets and investment property		153,630	156,168
(Decrease)/increase of provisions		(4,350)	1,202
Impairments on assets and other non-cash items		7,498	(151)
Loss/(profit) on disposal of tangible and financial fixed assets		(3,291)	(64,605)
Dividends received from investments accounted for using equity method		11,103	14,779
Cash flows from (used in) operating activities before changes in working capital		217,504	109,948
Decrease/(increase) in trade receivables and other current and non-current receivables		(121,273)	(999)
Decrease/(increase) in inventories		(28,114)	(46,700)
Increase/(decrease) in trade payables and other current and non-current payables		18,194	18,123
Income tax paid/received		(17,708)	(12,117)
Cash flows from (used in) operating activities		68,603	68,255
Investment activities
Proceeds from sales of intangible assets and property, plant and equipment		28,155	3,886
Purchases of intangible assets and of property, plan and equipment		(142,338)	(134,206)
Acquisition of subsidiaries net of cash acquired		0	0
Variation of the investment percentage in investment accounted for using equity method		0	0
Capital decrease/(increase) of investments accounted for using equity method	15	(14,727)	(5,088)
Proceeds from sales of subsidiaries	5	0	88,898
Repayment of borrowings (new borrowings) given to investments accounted for using equity method		(1,273)	(3,463)
Cash flows from (used in) investing activities		(130,183)	(49,973)
Financing activities
Interest paid		(5,961)	(7,217)
Interest received		4,059	4,156
Other financial expenses and income		(5,638)	(5,486)
Receipts from new borrowings	17.3	15,402	327,826
Repayment of borrowings	17.3	(261,518)	(139,650)
Dividends paid		(25,314)	0
Cash flows from (used in) financing activities		(278,970)	179,629
Net increase/(decrease) in cash position		(340,550)	197,911
Cash and cash equivalents, opening balance		759,695	612,206
Effects of exchange rate changes on cash and cash equivalents		919	(4,792)
Cash and cash equivalents, closing balance	20	420,064	805,325

Acquisitions and disposals of subsidiaries net of cash acquired do not include entities that are not a business combination (real estate development segment). They are not considered as investment operations and are directly reflected in cash flows from operating activities.

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Share capital	Share premium	Retained earnings	contribution pension plans Defined benefit and	Reserves related to financial derivatives	Exchange differences on translation	share of the group Equity –	Non-controlling interests	Total
	800,008	1,059,406	(41,783)	(49,715)	(22,133)	1,787,113	17,835	1,804,948
		42,622	0	11,383	4,031	58,036	625	58,661
		(25,314)				(25,314)		(25,314)
							(424)	(424)
		-				-	18	18
	800,008	1,076,714	(41,783)	(38,332)	(18,102)	1,819,835	18,054	1,837,889
Share capital	Share premium	Retained earnings	contribution pension plans Defined benefit and	Reserves related to financial derivatives	Exchange differences on translation	share of the group Equity –	Non-controlling interests	Total
	800,008	995,786	(37,089)	(40,892)	(10,440)	1,748,703	11,607	1,760,310
		8,430	0	(5,699)	(8,947)	(6,216)	(1,321)	(7,537)
		-				-		-
							50	50
		(57)				(57)	2,373	2,316 1,755,139
	41,330 41,330 41,330 41,330	800,008					1,004,159 (37,089) (46,591) (19,387) 1,742,430	12,709

SHARE CAPITAL AND RESERVES

The share capital on 30 June 2021 was divided into 25,314,482 ordinary shares. These shares are without nominal value. The owners of ordinary shares have the right to receive dividends and have one vote per share in shareholders' general meetings.

A dividend of € 25,314 thousand, corresponding to € 1.00 gross per share, was proposed by the Board of Directors and approved by the shareholders' general meeting of 6 May 2021. This dividend was made payable in May 2021.

EARNINGS PER SHARE

Basic earnings per share are the same as diluted earnings per share due to the absence of any potentially dilutive ordinary shares in circulation. It is calculated as follows:

Earnings per share for the period ended June 30 (in € thousands)	2021	2020
Result for the period - share of the group	42,622	8,430
Comprehensive income - share of the group	58,036	(6,216)
Number of ordinary shares at balance sheet date	25,314,482	25,314,482
Earnings per share, based on the number of ordinary shares at the end of the period (basic) :
Result for the period (share of the group) per share (in euro)	1.68	0.33
Comprehensive income (share of the group) per share (in euro)	2.29	(0.25)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

Compagnie d'Entreprises CFE SA (hereinafter referred to as the "Company" or "CFE") is a company incorporated and headquartered in Belgium. The consolidated financial statements for the period ended 30 June 2021 include the financial statements of the company, its subsidiaries (the "CFE group") and its interests in companies accounted for using equity method.

The Board of Directors authorised the publication of the CFE group's consolidated financial statements on 25 August 2021.

MAIN TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2021 AND OF 2020 WITH EFFECT ON THE SCOPE OF THE CFE GROUP

TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2021

1. Dredging, environment, offshore and infra segment – « DEME »

During the first semester of 2021, the main changes in the consolidation scope with effect on the DEME segment of the CFE group are the following:

DEME acquired 70% of the shares in the newly created Hyport Oostende Holdco NV company. This company has been fully consolidated;
DEME acquired a 46.6% stake in the Nou Vela SA company, as well as a 23.77% stake in its subsidiary Port La Nouvelle SEMOP. These companies have been integrated under the equity method;
DEME acquired a 37.45% stake in the newly created Wérisol SA company. This company was integrated under the equity method;
DEME acquired a 16.67% stake in the Hyve BV consortium. This company was integrated under the equity method;
DEME acquired a 28% stake in the Rhama Port Hub SRL company. This company was integrated under the equity method;
DEME acquired a 50% stake in the Hyport Coordination Company LLC. This company was integrated under the equity method;
DEME acquired a 14.7% stake in the Asyad Terminals DUQM LLC company. This company was integrated under the equity method;
DEME acquired a 26% stake in the DUQM Logistic Land Company LLC. This company was integrated under the equity method;
DEME liquidated all of its shares (100%) in the DEME Concessions Infrastructure NV company. This company was fully consolidated;
DEME liquidated all of its shares (100%) in the Mascarenes Dredging & Management Ltd company. This company was fully consolidated;
DEME liquidated all of its shares (100%) in the DEME Shipping Company Ltd. This company was fully consolidated;
The Agroviro NV and Purazur NV companies, which were 74.9% subsidiaries and fully consolidated, have been integrated into the DEME Environmental Contractors NV company, itself a 74.9% and fully consolidated subsidiary.

2. Contracting segment

During the first semester of 2021, the main changes in the consolidation scope with effect on the Contracting segment of the CFE group are the following:

The Mobix Coghe NV company, a 100% subsidiary and fully consolidated, has been integrated into the Mobix Remacom NV company, itself a 100% and fully consolidated subsidiary, with retroactive effect from 1 January 2021.
The Procool SA company, a 100% subsidiary and fully consolidated, has been integrated into the VMA Druart SA company, itself a 100% and fully consolidated subsidiary, with retroactive effect from 1 January 2021.

3. Real estate development segment

During the first semester of 2021, the main changes in the consolidation scope with effect on the real estate development segment of the CFE group are the following:

The BPI Real Estate Poland Sp. z o.o. company acquired:
- o 100% of the newly created BPI Project VIII Sp. z o.o. company;
- o 100% of the newly created BPI Project IX Sp. z o.o. company.
- The acquired entities listed above have been fully consolidated;
The BPI Real Estate Luxembourg SA company acquired:
- o a 50% stake in the newly created The Roots Real Estate S.à r.l. company;
- o a 50% stake in the newly created The Roots Office S.à r.l. company.

The acquired entities listed above have been integrated under the equity method.

The BPI Real Estate Poland Sp. z o.o. company has disposed of all its shares (100%) in the Immo Wola Sp. z o.o. company. This company was fully consolidated;
The company name of the BPI Project VII Sp. z o.o. company has been changed to BPI Chmielna Sp. z o.o. ;
The BPI Real Estate Luxembourg SA company has acquired 100% of the shares of the Livingstone Retail S.à r.l. company, previously held by the M1 SA company, a 33.33% subsidiary of the CFE group. Following this transfer, the name of this company was changed to Mimosas Real Estate S.à r.l. This company, which was integrated under the equity method, is now fully consolidated.

4. Wood Shapers – Partnership between the Contracting segment and the Real estate development segment

During the first half of 2021, the Wood Shapers SA company has acquired a 50% stake in the newly created Wood Gardens SA company. This company was integrated under the equity method.

5. Holding and non-transferred activities segment

During the first semester of 2021, the main change in the consolidation scope with effect on the Holding and non-transferred activities segment of the CFE group is the following:

The CFE Tchad SA company, a 100% subsidiary of the CFE group, has been sold. This company was fully consolidated.

TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2020

1. Dredging, environment, offshore and infra segment – « DEME »

During the first semester of 2020, the main changes in the consolidation scope with effect on the DEME segment of the CFE group are the following:

DEME acquired 100% of the shares in the newly created Dredging International Argentina SA company. This company has been fully consolidated;
DEME acquired a stake of 37.45% and 19.47% in the companies Blue Site SA and Feluy M2M SA respectively. These companies have been integrated under the equity method.
DEME increased its stake in the CBD SAS company from 50% to 100%. This company, which was integrated under the equity method, is now fully consolidated;
DEME increased its stake in the International Seaport Dredging PVT LTD company from 89.61% to 93.64%. This company remains fully integrated;
DEME increased its stake in the DIAP Thailand Co LTD company from 49% to 98%. This company, which was integrated under the equity method, is now fully consolidated;
DEME decreased its stake in the Terranova NV company from 43.73% to 24.96%. This company remains integrated under the equity method;
DEME disposed of its entire stake (12.5%) in the Merkur Offshore GmbH company. This company was shown as an asset held for sale at December 31, 2019.

2. Contracting segment

During the first semester of 2020, the main changes in the consolidation scope with effect on the Contracting segment of the CFE group are the following:

The VMA Vanderhoydoncks NV company was absorbed by VMA NV, a 100% subsidiary of CFE Contracting, with retroactive effect from 1 January 2020;
The Bâtiments et Ponts Construction SA (BPC SA) company, a 100% subsidiary of CFE Contracting, transferred on 1 April 2020, with retroactive effect to 1 January 2020, the business lines BPC Hainaut, BPC Liège and BPC Namur to the Thiran SA company, which is also a 100% subsidiary of CFE Contracting. Following this partial demerger without dissolution of the demerged company, the Thiran SA company was renamed as BPC Wallonie SA;
The Algemeen Bouw-en Betonbedrijf NV (ABEB NV) company, a 100% subsidiary of CFE Contracting, was liquidated. This company was fully consolidated.

3. Real estate development segment

During the first semester of 2020, the main changes in the consolidation scope with effect on the real estate development segment of the CFE group are the following:

During the first half of 2020, the BPI Real Estate Belgium SA (BPI) company acquired the following:
- o 100% of the newly created BPI Serenity Valley SA company;
- o 100% of the newly created Samaya Development SA company.

The acquired entities listed above have been fully consolidated;

o a 50% stake in the newly created Arlon 53 SA company;
o a 50% stake in the Mobius I SA company.

The acquired entities listed above have been integrated under the equity method.

The BPI Real Estate Poland Sp. z o.o. company increased its stake in the BPI Wolare Sp. z o.o. company from 90% to 100%. This company remains fully consolidated;
The BPI Project VII Sp. z o.o. company has been established. This company is 100% owned by BPI Real Estate Poland Sp. z o.o., and has been fully consolidated;
The BPI Real Estate Luxembourg SA company reduced its stake in the Gravity SA company from 100% to 50%. This company, which was fully consolidated, is now integrated under the equity method.
The Pourpelt SA company has been established. This company is 100% owned by BPI Real Estate Luxembourg SA. This company has been fully consolidated;
The companies Bedford Finance SRL and Bayside Finance SRL, 40% subsidiaries of BPI, liquidated their stakes in the companies VM Property I SA and VM Property II SA. They were integrated under the equity method.

1. GENERAL POLICIES

IFRS AS ENDORSED BY THE EUROPEAN UNION

The interim report for the period ended 30 June 2021 has been prepared in accordance with IAS 34 Interim Financial Reporting. The interim report does not include all the information of the annual report and its annexes, and should be read in conjunction with the CFE's annual report of 31 December 2020.

The accounting principles used on 30 June 2021 are the same as those used for the consolidated financial statements as at 31 December 2020, except for the standards and/or amendments to standards described below as endorsed by the European Union, mandatorily applicable as of 1 January 2021.

STANDARDS AND INTERPRETATIONS APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON OR AFTER 1 JANUARY 2021

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform Phase 2
Amendements à IFRS 16 Leases : COVID-19-Related Rent Concessions

The application of these standards and interpretations had no material impact on the consolidated financial statements of CFE.

STANDARDS AND INTERPRETATIONS PUBLISHED, BUT NOT YET APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON 1 JANUARY 2021

The Group did not apply early any of the following new standards and interpretations, application of which was not mandatory at 30 June 2021.

Amendments to IAS 16 Property, Plant and Equipment: Proceeds before Intended Use (applicable for annual periods beginning on or after 1 January 2022)
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets: Onerous Contracts Cost of Fulfilling a Contract (applicable for annual periods beginning on or after 1 January 2022)
Amendments to IFRS 3 Business Combinations: Reference to the Conceptual Framework (applicable for annual periods beginning on or after 1 January 2022)
Annual Improvements to IFRS Standards 2018–2020 (applicable for annual periods beginning on or after 1 January 2022)
IFRS 17 Insurance Contracts (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU)
Amendments to IFRS 4 Insurance Contracts Extension of the Temporary Exemption from Applying IFRS 9 (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU)
Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU)
Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU)
Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU)
Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a Single Transaction (applicable for annual periods beginning on or after 1 January 2023, but not yet endorsed in the EU)
Amendments to IFRS 16 Leases: COVID-19-Related Rent Concessions beyond 30 June 2021 (applicable for annuals period beginning on or after 1 April 2021 but not yet endorsed in the EU)

2. CONSOLIDATION METHODS

SCOPE OF CONSOLIDATION

Companies in which the group, directly or indirectly, holds the majority of voting rights enabling control to be exercised, are fully consolidated.

Companies over which the group exercises joint control with other shareholders are accounted for using equity method. This applies in particular to Rent-A-Port and certain subsidiaries of DEME and BPI.

The change in the scope of consolidation of the CFE group between 2020 and 2021 is summarised as follows:

Number of entities	June 2021	December 2020
Full consolidation	205	210
Equity method	152	143
Total	357	353

INTRA-GROUP TRANSACTIONS

Reciprocal operations and transactions relating to assets and liabilities and income and expenses between integrated companies are eliminated in the consolidated financial statements. This elimination is carried out :

in full if the operation is carried out between two subsidiaries; and
up to the holding percentage of the company accounted for using equity method for the internal result realised between a fully consolidated company and a company accounted for using equity method.

TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN COMPANIES AND ESTABLISHMENTS

In most cases, the operating currency of companies and establishments corresponds to the currency of the country concerned.

The financial statements of foreign companies whose operating currency is different from that used in preparing the group's consolidated financial statements are translated at the closing rate for balance sheet items and at the average rate for the period for income statement items. Any resulting conversion differences are recognised as exchange differences resulting from the translation in the consolidated reserves. Goodwill relating to foreign companies is considered to be part of the assets and liabilities acquired and, as such, is converted at the exchange rate applicable on the closing date.

FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are converted into euros at the exchange rate on the transaction date. Financial assets and monetary liabilities denominated in foreign currencies are converted into euros at the exchange rate applicable at the closing date of the period. The resulting exchange profits and losses are recognised in the 'foreign exchange income' heading, and are presented under 'other financial income and expenses' in the income statement.

Foreign exchange profits and losses on loans denominated in foreign currencies or on foreign exchange derivatives used to hedge participations in foreign subsidiaries are recorded under the heading 'exchange differences on translation' resulting from the conversion in 'other elements' of the comprehensive income statement, and are the object of a separate reserve in equity.

3. ACCOUNTING RULES AND METHODS

The preparation of financial statements according to the IFRS standards requires the use of estimates, as well as the formulation of judgments and assumptions that affect the amounts shown in those financial statements, particularly with regard to the following items :

the period over which non-current assets are depreciated or amortised;
the measurement of provisions and post-employment obligations;
the measurement of income or losses on construction contracts using the percentage of completion method;
estimates used in impairment tests;
the valuation of financial instruments at fair value;
the assessment of control;
the qualification of the nature of the transaction as a business combination or an acquisition of assets when a company is acquired; and
the assumptions used to determine the financial liabilities in accordance with the IFRS 16 standard;

These estimates assume the operation is a going concern and are made on the basis of the information available at the time they were established. Estimates may be revised if the circumstances on which they were based alter or if new information becomes available. Actual results may be different from these estimates.

4. SEGMENT REPORTING

OPERATING SEGMENTS

Segment reporting is presented in respect of the group's operating segments. Segment results and assets and liabilities include items that can be directly attributed to a segment or allocated on a logical basis.

The CFE group consists of four operating segments:

Dredging, environment, offshore and infra – « DEME »

The dredging, environment, offshore and infra segment, through its subsidiary DEME, is active in dredging (capital dredging and maintenance dredging), the installation of offshore wind farms, the laying of submarine power cables, the protection of marine pipelines, the treatment of polluted sludge and sediments, as well as marine engineering.

Contracting

The Contracting segment encompasses the construction, multitechnics and rail & utilities activities.

The construction activity is concentrated in Belgium, Luxembourg and Poland. CFE Contracting specialises in building and refurbishing office buildings, residential properties, hotels, schools, universities, car parks, shopping and leisure centres, hospitals and industrial buildings.

The Multitechnics, Rail & Utilities segments operate mainly in Belgium through two clusters:

the VMA cluster comprising tertiary electricity, HVAC (heating, ventilation and air conditioning), electromechanical facilities, telecom networks, automation in the automotive, pharmaceutical and agri-food industries, the automated management of technical facilities of buildings, electromechanical work for road and rail infrastructures (tunnels, etc.), and the long-term maintenance of technical facilities and ESCO (energy performance improvement of buildings) type projects;
the MOBIX cluster comprising railway (track laying and installation of catenaries) and signalling works, energy transportation and public lighting.

Real estate development

The Real Estate Development segment develops real estate projects in Belgium, Luxembourg and Poland.

Holding and non-transferred activities

Besides the usual holding activities, this segment includes :

participations in Rent-A-Port, Green Offshore and in two Design Build Finance and Maintenance contracts in Belgium;
contracting activities not transferred to CFE Contracting SA and DEME NV including several civil engineering projects in Belgium and building projects in Africa (except Tunisia) and in Central Europe (except Poland).

CONSOLIDATED STATEMENT OF INCOME

For the period ended June 30, 2021 (in € thousands)	DEME	Restatements DEME	Contracting	Real Estate	Holding and non transferred activities	Eliminations between segments	Consolidated total
Revenue	1,062,977		520,976	52,946	6,283	(13,279)	1,629,903
Income from operating activities	46,249	(2,294)	8,350	3,973	(3,651)	287	52,914
Share of profit (loss) of investments accounted for using equity method	4,730	(364)	132	6,846	(112)	0	11,232
Operating income (EBIT)	50,979	(2,658)	8,482	10,819	(3,763)	287	64,146
% Revenue	4.80%		1.63%	20.43%			3.94%
Financial result	(5,179)	0	(908)	(1,912)	69	0	(7,930)
Income tax expenses	(9,994)	619	(2,933)	(449)	(13)	(15)	(12,785)
Result for the period - share of the group	34,997	(2,039)	4,641	8,458	(3,707)	272	42,622
% Revenue	3.29%		0.89%	15.97%			2.62%
Non-cash items	140,932	2,294	9,656	440	308	0	153,630
EBITDA	187,181		18,006	4,413	(3,343)	287	206,544
% Revenue	17.61%		3.46%	8.33%			12.67%

For the period ended June 30, 2020 (in € thousands)	DEME	Restatements DEME	Contracting	Real Estate	Holding and non transferred activities	Eliminations between segments	Consolidated total
Revenue	1,047,888		423,171	33,433	10,315	(23,578)	1,491,229
Income from operating activities	9,588	(2,294)	(5,734)	2,576	(1,719)	138	2,555
Share of profit (loss) of investments accounted for using equity method	12,266	(364)	102	3,160	1,622		16,786
Operating income (EBIT)	21,854	(2,658)	(5,632)	5,736	(97)	138	19,341
% Revenue	2.09%		(1.33%)	17.16%			1.30%
Financial result	(6,974)		(673)	(1,455)	(487)		(9,589)
Income tax expenses	(627)	619	(1,330)	(1,090)	(116)	(13)	(2,557)
Result for the period - share of the group	15,488	(2,039)	(7,635)	3,191	(700)	125	8,430
% Revenue	1.48%		(1.80%)	9.54%			0.57%
Non-cash items	144,217	2,294	11,570	53	(915)		157,219
EBITDA	153,805		5,836	2,629	(2,634)	138	159,774
% Revenue	14.68%		1.38%	7.86%			10.71%

BREAKDOWN OF REVENUE OF DEME

For the period ended June 30 (€ thousands)	2021	2020
Dredging	507,235	428,981
Offshore	335,048	434,617
Infra	119,863	101,123
Environment	66,701	59,280
Others	34,130	23,887
Total	1,062,977	1,047,888

BREAKDOWN OF REVENUE IN THE CONTRACTING SEGMENT

For the period ended June 30 (€ thousands)	2021	2020
Construction	355,764	300,339
Multitechnics (VMA)	104,592	78,078
Rail & Utilities (MOBIX)	60,620	44,754
Contracting	520,976	423,171

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period ended June 30, 2021 (in € thousands)	DEME	Contracting	Real Estate	Holding and non transferred activities	Eliminations between segments	Consolidated total
ASSETS
Goodwill	150,567	21,560	0	0	0	172,127
Property, plant and equipment	2,417,631	82,274	1,993	1,559	0	2,503,457
Non-current loans to consolidated group companies	0	0	0	20,000	(20,000)	0
Other non-current financial assets	30,955	0	46,252	12,582	0	89,789
Other non-current assets	373,884	15,566	56,857	1,287,055	(1,245,902)	487,460
Inventories	12,379	14,683	179,548	4,226	(1,626)	209,210
Cash and cash equivalents	316,391	49,841	3,051	50,781	0	420,064
Internal cash position - Cash pooling - assets	0	71,396	1,075	1,833	(74,304)	0
Other current assets	692,422	358,997	29,488	26,782	(9,963)	1,097,726
Total assets	3,994,229	614,317	318,264	1,404,818	(1,351,795)	4,979,833
Liabilities
Equity	1,734,835	75,147	90,128	1,185,307	(1,247,528)	1,837,889
Non-current borrowings to consolidated group companies	0	0	20,000	0	(20,000)	0
Non-current bonds	0	0	29,846	0	0	29,846
Non-current financial liabilities	645,986	28,912	35,260	120,632	0	830,790
Other non-current liabilities	167,788	15,686	40,153	3,540	0	227,167
Current bonds	0	0	0	0	0	0
Current financial liabilities	234,365	5,439	27,233	15,165	0	282,202
Internal cash position - Cash pooling - liabilities	0	2,646	19,036	52,622	(74,304)	0
Other current liabilities	1,211,255	486,487	56,608	27,552	(9,963)	1,771,939
Total liabilities	2,259,394	539,170	228,136	219,511	(104,267)	3,141,944

Total equity and liabilities	3,994,229	614,317	318,264	1,404,818	(1,351,795)	4,979,833

For the period ended December 31, 2020 (in € thousands)	DEME	Contracting	Real Estate	Holding and non transferred activities	Eliminations between segments	Consolidated total
ASSETS

Goodwill Property, plant and equipment	150,567 2,431,361	21,560 79,796	0 2,070	0 1,825	0 0	172,127 2,515,052
Non-current loans to consolidated group companies	0	0	0	20,000	(20,000)	0
Other non-current financial assets	32,813	0	37,858	18,525	0	89,196
Other non-current assets	348,275	14,132	58,090	1,284,587	(1,245,913)	459,171
Inventories	10,456	16,536	153,850	5,349	(1,626)	184,565
Cash and cash equivalents	621,937	73,514	5,707	58,537	0	759,695
Internal cash position - Cash pooling - assets	0	86,830	1,457	1,741	(90,028)	0
Other current assets	596,476	295,223	35,319	37,974	(7,315)	957,677
Total assets	4,191,885	587,591	294,351	1,428,538	(1,364,882)	5,137,483
Liabilities
Equity	1,709,637	78,365	85,532	1,178,951	(1,247,537)	1,804,948
Non-current borrowings to consolidated group companies	0	0	20,000	0	(20,000)	0
Non-current bonds	0	0	29,794	0	0	29,794
Non-current financial liabilities	735,053	25,318	42,701	115,609	0	918,681
Other non-current liabilities	172,966	16,566	37,628	2,108	0	229,268
Current bonds	0	0	0	0	0	0
Current financial liabilities	375,913	8,919	17,488	10,329	0	412,649
Internal cash position - Cash pooling - liabilities	0	2,708	3,376	83,944	(90,028)	0
Other current liabilities	1,198,316	455,715	57,832	37,597	(7,317)	1,742,143
Total liabilities	2,482,248	509,226	208,819	249,587	(117,345)	3,332,535

CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended June 30, 2021 (in € thousands)	DEME	Contracting	Real estate	Holding and non-transferred activities	Consolidated total
Cash flows from (used in) operating activities before changes in working capital	188,685	19,695	12,371	(3,247)	217,504
Cash flows from (used in) operating activities	94,973	(19,093)	(14,383)	7,106	68,603
Cash flows from (used in) investing activities	(121,651)	(7,832)	(437)	(263)	(130,183)
Cash flows from (used in) financing activities	(279,630)	3,123	12,135	(14,598)	(278,970)
Net increase/(decrease) in cash position	(306,308)	(23,802)	(2,685)	(7,755)	(340,550)


For the period ended June 30, 2020 (in € thousands)	DEME	Contracting	Real estate	Holding and non-transferred activities	Consolidated total
Cash flows from (used in) operating activities before changes in working capital	94,798	4,900	11,857	(1,607)	109,948
Cash flows from (used in) operating activities	102,660	245	(29,935)	(4,715)	68,255
Cash flows from (used in) investing activities	(44,198)	(2,494)	(59)	(3,222)	(49,973)
Cash flows from (used in) financing activities	141,729	4,375	30,148	3,377	179,629

The cash flow from (used in the context of) financing activities includes the amounts of cash pooling compared to other segments. A positive amount corresponds to a use of liquidity in the cash pooling. This item is also affected by external financing, especially and primarily in the DEME, real estate development and Holding and non-transferred activities segments. The DEME segment is not part of the CFE group cash pooling arrangement.

OTHER INFORMATION

For the period ended June 30, 2021 (in € thousands)	DEME	Contracting	Real estate	Holding and non-transferred activities	Consolidated total
Depreciation	(140,781)	(9,656)	(440)	(308)	(151,185)
Investments	159,608	12,171	650	68	172,497
Amortisation	(2,445)	0	0	0	(2,445)


For the period ended June 30, 2020 (in € thousands)	DEME	Contracting	Real estate	Holding and non-transferred activities	Consolidated total
Depreciation	(144,520)	(8,891)	(393)	(373)	(154,177)
Investments	133,828	10,206	198	98	144,330

The investments include the acquisitions of tangible and intangible assets. Acquisitions through business combinations are not included in these amounts.

GEOGRAPHICAL INFORMATION

For the period ended June 30 (in € thousands)	2021	2020
Belgium	542,250	555,300
Other Europe	795,500	683,927
Middle East	983	5,806
Asia	44,120	119,210
Oceania	18,626	18,458
Africa	218,229	74,943
Americas	10,195	33,585
Consolidated total	1,629,903	1,491,229

5. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES

ACQUISITIONS FOR THE PERIOD ENDED 30 JUNE 2021

No transactions having a material impact took place during the first six months of 2021.

DISPOSALS FOR THE PERIOD ENDED 30 JUNE 2021

No transactions having a material impact took place during the first six months of 2021.

Acquisitions and disposals in the real estate development segment are not business combinations; therefore the consideration paid is allocated to the land and buildings held as inventories. The main acquisitions and disposals that have occurred in the real estate development segment are described in the introduction.

6. OTHER OPERATING INCOME AND EXPENSES

Other operating income amounted to € 48,625 thousand (June 2020 : € 112,750 thousand) and primarily include :

rental income, other compensation and miscellaneous rebillings amounting to € 45,268 thousand (June 2020 : € 47,981 thousand), for which DEME accounted for € 25,435 thousand. The liquidated damages received for the late delivery of the Spartacus vessel amounted to € 15.0 million ;
capital gains on disposals of property, plant and equipment and intangible assets amounting to € 3,357 thousand (June 2020 : € 834 thousand), for which DEME accounted for € 2,947 thousand.

During the first half of 2020, DEME sold its stake in the Merkur offshore wind farm, with a capital gain on the disposal of € 63,935 thousand.

7. FINANCIAL RESULT

For the period ended June 30 (in € thousands)	2021	2020
Cost of financial debt	(2,434)	(3,164)
Derivative instruments - Fair value adjustments through profit and loss	0	0
Derivative instruments used as hedging instruments	0	0
Assets measured at fair value	0	0
Available-for-sale financial instruments	0	0
Loans and receivables - Interest income	4,059	4,156
Liabilities at amortised cost - Interest expenses	(6,493)	(7,320)
Other financial expenses and income	(5,496)	(6,425)
Realized / unrealized translation gains/(losses)	(989)	(4,061)
Dividends received from non-consolidated companies	0	0
Defined benefit plan financial cost	0	0
Impairment of financial assets	0	0
Other	(4,507)	(2,364)
Financial result	(7,930)	(9,589)

The evolution of other financial expenses can mainly be explained by the increase of the costs related to letters of credit and performance bonds obtained following the start of several projects at DEME.

8. NON-CONTROLLING INTERESTS

As of June 30, 2021, the share of non-controlling interests in the income statement for the period amounted to € (809) thousand (June 2020: € 1,235 thousand) and is entirely related to the DEME segment.

9. INCOME TAX

The tax expense amounted to € 12,785 for the first half of 2021, compared to € 2,557 for the first half of 2020. The effective tax rate amounted to 28.4%, compared to -36.4% as of June 30, 2020. The effective tax rate is defined as the income tax expense over result before tax from which the share of profit (loss) of investments accounted for using equity method have been deducted.

10. PROPERTY, PLANT AND EQUIPMENT

For the period ended June 30, 2021 (in € thousands)	Land and buildings	Fixtures and equipment	Furniture, fittings and vehicles	Other property, plant and equipment	Under construction	Total
Acquisition costs
Balance at the end of the previous period	244,206	4,163,313	109,589	0	506,270	5,023,378
Effects of changes in foreign exchange rates	574	1,270	32	0	1	1,877
Changes in consolidation scope	0	0	0	0	0	0
Acquisitions	31,103	86,384	12,767	0	41,030	171,284
Transfers between asset items	656	31,663	(2,112)	0	(33,017)	(2,810)
Disposals	(12,216)	(64,545)	(7,394)	0	0	(84,155)
Balance at the end of the period	264,323	4,218,085	112,882	0	514,284	5,109,574
Depreciation and amortisation
Balance at the end of the previous period	(88,153)	(2,350,014)	(70,159)	0	0	(2,508,326)
Effects of changes in foreign exchange rates	(177)	(966)	(12)	0	0	(1,155)
Changes in consolidation scope	0	0	0	0	0	0
Depreciation and amortisation	(9,846)	(132,457)	(9,327)	0	0	(151,630)
Transfers between asset items	815	(288)	254	0	0	781
Disposals	7,218	40,001	6,994	0	0	54,213
Balance at the end of the period	(90,143)	(2,443,724)	(72,250)	0	0	(2,606,117)
Net carrying amount
At 1 January 2021	156,053	1,813,299	39,430	0	506,270	2,515,052
At 30 June 2021	174,180	1,774,361	40,632	0	514,284	2,503,457

The net carrying amount of property, plant and equipment amounted to € 2,503,457 thousand as of 30 June 2021 (December 31, 2020 : € 2,515,052 thousand).

As of June 30, 2021, acquisitions of property, plant and equipment amounted to € 171,284 thousand, and are mainly related to DEME (€ 158,721 thousand).

During the first half of 2021, the first Service Operation Vessel, "Groenewind", joined the DEME fleet. As of June 30, 2021, a residual amount of € 171 million will be invested in vessels under construction over the next few months and years, primarily in the « Orion » and the « Spartacus » as well as in the upgrading of the Sea Installer vessel.

The net carrying amount of property, plant and equipment used as collateral for certain loans totalled € 18,281 thousand (December 2020 : € 55,686 thousand).

The net carrying amount of right-of-use assets amounted to € 127,844 thousand as of June 30, 2021 (December 2020 : € 113,588 thousand). These assets mainly include the concessions and buildings of the DEME segment, the vehicle fleet and the equipment of the CFE group, as well as the registered offices of certain subsidiaries of the Contracting segment.

Depreciation of property, plant and equipment amounted to € (151,630) thousand (June 2020 : € (155,310) thousand).

For the period ended June 30, 2020 (in € thousands)	Land and buildings	Fixtures and equipment	Furniture, fittings and vehicles	Other property, plant and equipment	Under construction	Total
Acquisition costs
Balance at the end of the previous period	229,873	4,070,355	102,912	0	540,374	4,943,514
Effects of changes in foreign exchange rates	(1,117)	(2,544)	(622)	0	(2)	(4,285)
Changes in consolidation scope	1,983	364	0	0	0	2,347
Acquisitions	7,225	45,042	9,282	0	79,782	141,331
Transfers between asset items	102	90,800	(78)	0	(91,384)	(560)
Disposals	(5,279)	(19,740)	(4,451)	0	(509)	(29,979)
Balance at the end of the period	232,787	4,184,277	107,043	0	528,261	5,052,368
Depreciation and amortisation
Balance at the end of the previous period	(72,676)	(2,192,432)	(63,242)	0	0	(2,328,350)
Effects of changes in foreign exchange rates	330	1,769	368	0	0	2,467
Changes in consolidation scope	0	(177)	0	0	0	(177)
Depreciation and amortisation	(9,622)	(136,887)	(8,801)	0	0	(155,310)
Transfers between asset items	(34)	3	244	0	0	213
Disposals	1,637	18,853	3,235	0	0	23,725
Balance at the end of the period	(80,365)	(2,308,871)	(68,196)	0	0	(2,457,432)
Net carrying amount
At 1 January 2020	157,197	1,877,923	39,670	0	540,374	2,615,164
At 30 June 2020	152,422	1,875,406	38,847	0	528,261	2,594,936

11. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

As of June 30, 2021, investments accounted for using equity method amounted to € 226,766 thousand (December 2020 : € 204,095 thousand). This increase is mainly explained by capital movements in the DEME segment, as well as by changes in the market value of hedging instruments in the operating companies of offshore wind farms Rentel and SeaMade.

The share of the CFE group in the result of investments accounted for using equity method amounted to € 11,232 thousand (compared to € 16,786 thousand in June 2020), and mainly derives from the activities of the real estate development segment and the participations of DEME and Green Offshore in the operating companies of offshore wind farms Rentel and SeaMade.

12. INVENTORIES

As of 30 June 2021, inventories amounted to € 209,210 thousand (December 2020 : € 184,565 thousand) and broke down as follows :

(in € thousands)	June 2021	December 2020
Raw materials and auxiliary products	20,955	18,071
Impairments on inventories of raw materials and auxiliary products	(17)	(17)
Finished products and properties held for sale	189,298	167,337
Impairments on inventories of finished products	(1,026)	(826)
Inventories	209,210	184,565

The increase in finished products and properties held for sale (€ 21,961 thousand) is primarily attributable to the acquisition by the real estate development segment of land for development in Poland.

13. TRADE RECEIVABLES AND OTHER OPERATING RECEIVABLES

As of 30 June 2021, trade receivables and other operating receivables amounted to € 954,353 thousand (December 2020 : € 867,761 thousand). The increase during the first half of 2021 is primarily attributable to the activities of DEME.

Regarding the risk on trade receivables, the group defined procedures in order to limit the risk. It should be noted that a significant part of the consolidated sales is realized with public or semi-public customers. In addition, CFE considers that the concentration of the counterparty risk for customers is limited due to the large number of customers.

14. PROVISIONS OTHER THAN THOSE RELATING TO NON-CURRENT EMPLOYEE BENEFIT OBLIGATIONS

As of June 30, 2021, these provisions amounted to € 51,387 thousand, which represents a decrease of € 6,015 thousand compared to the end of 2020 (€ 57,402 thousand).

(in € thousands)	After-sales service	Other current risks	Provisions for negative investments accounted for using equity method	Other non current risks	Total
Balance at the end of the previous period	15,387	28,776	9,272	3,967	57,402
Effects of changes in foreign exchange rates	14	43	0	0	57
Transfers between items	(253)	1,530	(1,759)	(751)	(1,233)
Additions to provisions	809	3,246	0	1,848	5,903
Used provisions	(1,876)	(8,212)	0	(654)	(10,742)
Provisions reversed unused	0	0	0	0	0
Balance at the end of the period	14,081	25,383	7,513	4,410	51,387
of which current:					39,464
non-current:					11,923

The provision for after-sales service decreased by € 1,306 thousand and amounted to € 14,081 thousand as of June 30, 2021. The change was the result of additions to and/or reversals of provisions recognized in relation to 10-year warranties.

Provisions for other current risks decreased by € 3,393 thousand and amounted to € 25,383 thousand as of June 30, 2021.

These provisions include :

provisions for current litigation (€ 5,577 thousand), provisions for social security liabilities (€ 50 thousand), as well as provisions for other current liabilities (€ 9,918 thousand). As regards other current liabilities, we cannot provide more information on the assumptions made, or on the time of the probable cash outflow, given that negotiations with the customers are in still in progress;
provisions for losses on completion (€ 9,838 thousand) are recognised when the expected economic benefits of certain contracts are lower than the inevitable costs associated with meeting the obligations under these contracts. The use of provisions for losses on completion is linked to the execution of the associated contracts.

When the CFE group's share in the losses from investment accounted for using equity method exceeds the carrying amount of the investment, the latter amount is reduced to zero. The losses beyond this amount are not recognised, except for the amount of the CFE group's commitments to these investments accounted for using equity method. The amount of these commitments is accounted for in the non-current provisions, as the CFE group considers having the obligation to support those entities and their projects.

Provisions for other non-current risks include the provisions for risks not directly related to construction site operations in progress.

15. CONTINGENT ASSETS AND LIABILITIES

Based on available information at the date on which the financial statements were approved by the Board of Directors, we are not aware of any contingent assets or liabilities, with the exception of contingent assets or liabilities related to construction contracts (for example, the group's claims against customers or claims by subcontractors), which can be described as normal in the dredging and contracting sector and are handled by applying the percentage of completion method when the revenue is recognised.

CFE also sees to it that the companies of the group take the necessary organisational measures to ensure that the current laws and regulations are observed, including the rules on compliance. DEME is cooperating fully with a judicial inquiry into the circumstances surrounding the award of a contract that has been executed in Russia in the meantime.

As a matter of fact, the Public Prosecutor's office conducts an investigation since 2016 into alleged irregularities in the award of a contract to Mordraga, a subsidiary of DEME. This contract relates to the execution of dredging work in the port of Sabetta (Russia) in 2014 and 2015. This contract was awarded to Mordraga by a private Russian entrepreneur in the context of a private call for tenders.

At the end of December 2020, the prosecution summoned several companies and members of the staff of the DEME Group to appear before the Council Chamber.

The Council Chamber is expected to take a decision before year end. It should be emphasised that the Council Chamber does not pronounce any judgement on the merits of the case, but merely rules on the question whether or not there are sufficient incriminating elements to having a case judged on its merits by the competent court.

In the current circumstances and in light of the above, DEME is unable to reliably estimate the financial consequences of this ongoing procedure. Consequently, no provision has been recognised as at 30 June 2021, in accordance with the provisions of IAS 37.

16. DERIVATIVE FINANCIAL INSTRUMENTS

The CFE group uses derivative financial instruments primarily to reduce exposure to adverse fluctuations in interest rates, foreign exchange rates, prices of commodities and other market risks. The company does not hold or issue any financial instruments for trading purposes. However, derivatives which do not qualify as hedging instruments are disclosed as instruments held for trading.

The change in fair value of hedging instruments in the consolidated equity of the CFE group amounts to € +11.4 million. This change is the consequence of the change in medium and long-term interest rates in the euro zone, and mainly concerns IRS hedging instruments from SPVs BAAK, SeaMade and Rentel, entities accounted for using equity method.

As of June 30, 2021, derivative financial instruments have been estimated at their fair value.

17. NET FINANCIAL DEBT

17.1. NET FINANCIAL DEBT, AS DEFINED BY THE GROUP, BREAKS DOWN AS FOLLOWS :

		June 2021		December 2020
(in € thousands)	Non-current	Current	Total	Non-current	Current	Total
Bank loans and other financial debts	637,870	216,077	853,947	751,194	212,264	963,458
Bonds	29,846	0	29,846	29,794	0	29,794
Drawings on credit facilities	89,000	0	89,000	81,000	0	81,000
Lease debts	103,920	24,175	128,095	86,487	27,435	113,922
Total long-term financial debt	860,636	240,252	1,100,888	948,475	239,699	1,188,174
Short-term financial debts	0	41,950	41,950	0	172,950	172,950
Cash equivalents	0	0	0	0	(15,965)	(15,965)
Cash	0	(420,064)	(420,064)	0	(743,730)	(743,730)
Net short-term financial debt/(cash)	0	(378,114)	(378,114)	0	(586,745)	(586,745)
Total net financial debt	860,636	(137,862)	722,774	948,475	(347,046)	601,429
Derivative instruments used as interest-rate hedges	6,533	3,267	9,800	10,047	4,405	14,452

The bank loans and other financial debts (€ 853,947 thousand) mainly relate to medium-term bilateral bank loans at DEME, which are allocated to the financing of the fleet of vessels.

The only bond still outstanding is that of BPI. This bond was issued on 19 December 2017 for an amount of € 30 million. It generates an interest of 3.75% and matures on 19 December 2022.

The lease debts (€ 128,095 thousand) correspond to contracts that meet the application criteria for IFRS 16 Leases. As of June 30, 2021, the contribution of the DEME segment amounted to € 91,647 thousand and primarily concerns their concessions, while the contracting, real estate development and holding and non-transferred activities segments account for € 36,448 thousand.

Short-term financial debts amounted to € 41,950 thousand as of June 30, 2021, or a decrease of € 131,000 thousand compared to end of December 2020. This decrease is primarily explained by the reimbursement of virtually all the commercial papers at DEME : their outstanding balance decreased from € 125 million on 31 December 2020 to € 5 million on 30 June 2021.

17.2. DEBT MATURITY SCHEDULE

(in € thousands)	Less than 1 year	Between 1 and 2 years	Between 2 and 3 years	Between 3 and 5 years	Between 5 and 10 years	More than 10 years	Total
Bank loans and other financial debts	216,077	221,629	181,781	198,293	36,167	0	853,947
Bonds	0	29,846	0	0	0	0	29,846
Drawings on credit facilities	0	75,000	14,000	0	0	0	89,000
Lease debts	24,175	19,913	16,899	20,633	22,636	23,839	128,095
Total long-term financial debt	240,252	346,388	212,680	218,926	58,803	23,839	1,100,888
Short-term financial debts	41,950	0	0	0	0	0	41,950
Cash equivalents	0	0	0	0	0	0	0
Cash	(420,064)	0	0	0	0	0	(420,064)
Net short-term financial debt/(cash)	(378,114)	0	0	0	0	0	(378,114)
Total net financial debt	(137,862)	346,388	212,680	218,926	58,803	23,839	722,774

17.3. CASH FLOWS RELATING TO FINANCIAL LIABILITIES

(in € thousands)
	December 2020	Cash flow	Changes in consolidation scope	Other changes	Total non cash movements	June 2021
Non-current financial liabilities
Bonds	29,794	0	0	52	52	29,846
Other non-current financial debts	918,681	(92,881)	0	4,990	4,990	830,790
Current financial liabilities
Bonds	0	0	0	0	0	0
Other current financial debts	412,649	(153,235)	0	22,788	22,788	282,202
Total	1,361,124	(246,116)	0	27,830	27,830	1,142,838

As of June 30, 2021, the financial liabilities of the CFE Group amounted to € 1,142,838 thousand, or a decrease of € 218,286 thousand compared to end of December 2020. This decrease in debt, which mainly relates to DEME, is explained by the reimbursement of commercial paper amounting to € 120,000 thousand on the one hand, and corporate bank loans amounting to € 99,000 thousand on the other.

17.4. CREDIT FACILITIES AND BANK TERM LOANS

As of June 30, 2021, CFE SA held confirmed long-term bank credit lines of € 274 million, of which € 85 million was drawn as of June 30, 2021. CFE SA also has a commercial papers and medium term notes programme of € 50 million. This source of financing was fully drawn as of June 30, 2021.

As of June 30, 2021, BPI Real Estate Belgium SA held confirmed long-term bank credit facilities of € 45 million, of which € 4 million was drawn as of June 30, 2021. BPI Real Estate Belgium SA also has a commercial papers and medium term notes programme of € 40 million. This source of funding was used to an amount of € 25.3 million as of June 30, 2021.

DEME held confirmed bank credit facilities (revolving credit facilities) of € 112 million, which have not been used as of June 30, 2021. DEME also has a commercial papers programme of € 125 million. This source of financing was used to an amount of € 5 million as of June 30, 2021.

17.5. FINANCIAL COVENANTS

Bilateral loans are subject to specific covenants that take into account factors such as financial debt and the ratio of debt to equity or non-current assets, as well as cash flow. These covenants are fully complied with as of June 30, 2021.

18. FINANCIAL RISK MANAGEMENT

18.1. INTEREST RATE RISK

The policy and the risk management procedures defined by the group are the same as those described in the 2020 annual report.

The impact of the risk coverage with regard to changes in interest rates on financial debts, excluding lease debts, can be summarized as follows:

Effective average interest rate before considering derivatives products
Type of debts	Fixed rate				Floating rate		Total
	Amounts	Quota	Rate	Amounts	Quota	Rate	Amounts	Quota	Rate
Bank loans and other financial debts	61,469	60.67%	0.99%	792,478	90.93%	0.62%	853,947	87.78%	0.65%
Bonds	29,846	29.46%	3.75%	0	0.00%	0.00%	29,846	3.07%	3.75%
Drawings on credit facilities	10,000	9.87%	1.40%	79,000	9.07%	0.77%	89,000	9.15%	0.84%
Total	101,315	100%	1.84%	871,478	100%	0.64%	972,793	100%	0.76%

Effective average interest rate after considering derivatives products

	Fixed rate			Floating rate		Floating rate capped + inflation			Total
Type of debts	Amounts	Quota	Rate	Amounts	Quota	Rate	Amounts	Quota	Rate	Amounts	Quota	Rate
Bank loans and other financial debts	770,107	89.55%	1.12%	83,840	74.30%	0.96%	0	0.00%	0.00%	853,947	87.78%	1.11%
Bonds	29,846	3.47%	3.75%	0	0.00%	0.00%	0	0.00%	0.00%	29,846	3.07%	3.75%
Drawings on credit facilities	60,000	6.98%	1.40%	29,000	25.70%	1.13%	0	0.00%	0.00%	89,000	9.15%	1.13%
Total	859,953	100%	1.23%	112,840	100%	1.01%	0	0%	0.00%	972,793	100%	1.19%

18.2. DISTRIBUTION OF THE LONG TERM FINANCIAL DEBTS BY CURRENCY

The outstanding financial debts (excluding lease debts which are mostly in euros) by currency are as follows:

(in € thousands)	2021	2020
Euro	972,793	1,074,252
U.S. dollar	0	0
Other currencies	0	0
Total long-term debts	972,793	1,074,252

18.3. CARRYING AMOUNTS AND FAIR VALUE BY ACCOUNTING CATEGORY

June 30, 2021 (in € thousands)	FAMMFVV / FLFVPL (3) - Derivatives not designated as hedging instruments	FAMMFVV / FLFVPL (3) - Derivatives designated as hedging instruments	Assets/ liabilities measured at amortised cost	Total of net carrying amount	Fair value measurement by level	Fair value of the class
Non-current financial assets	509	0	89,789	90,298		90,298
Investments (1)	0	0	7,478	7,478	Level 2	7,478
Financial loans and receivables (1)	0	0	82,311	82,311	Level 2	82,311
Derivatives	509	0	0	509	Level 2	509
Current financial assets	7,306	837	1,374,417	1,382,560		1,382,560
Trade and other receivables	0	0	954,353	954,353	Level 2	954,353
Derivatives	7,306	837	0	8,143	Level 2	8,143
Cash Equivalents (2)	0	0	0	0	Level 1	0
Cash at bank and in hand(2)	0	0	420,064	420,064	Level 1	420,064
Total assets	7,815	837	1,464,206	1,472,858		1,472,858
Non-current financial liabilities	4,319	6,533	860,636	871,488		891,405
Bond	0	0	29,846	29,846	Level 1	29,846
Financial debts	0	0	830,790	830,790	Level 2	850,707
Derivatives	4,319	6,533	0	10,852	Level 2	10,852
Current financial liabilities	3,789	3,400	1,496,392	1,503,581		1,512,823
Trade payables and other operating debts	0	0	1,214,190	1,214,190	Level 2	1,214,190
Bond	0	0	0	0	Level 1	0
Financial debts	0	0	282,202	282,202	Level 2	291,444
Derivatives	3,789	3,400	0	7,189	Level 2	7,189
Total liabilities	8,108	9,933	2,357,028	2,375,069		2,404,228

December 31, 2020 (in € thousands)	FAMMFVV / FLFVPL (3) - Derivatives not designated as hedging instruments	FAMMFVV / FLFVPL (3) - Derivatives designated as hedging instruments	Assets/ liabilities measured at amortised cost	Total of net carrying amount	Fair value measurement by level	Fair value of the class
Non-current financial assets	909	524	89,196	90,629		90,629
Investments (1)	0	0	7,385	7,385	Level 2	7,385
Financial loans and receivables (1)	0	0	81,811	81,811	Level 2	81,811
Derivatives	909	524	0	1,433	Level 2	1,433
Current financial assets	5,394	2,437	1,627,456	1,635,287		1,635,287
Trade and other receivables	0	0	867,761	867,761	Level 2	867,761
Derivatives	5,394	2,437	0	7,831	Level 2	7,831
Cash Equivalents (2)	0	0	15,965	15,965	Level 1	15,965
Cash at bank and in hand(2)	0	0	743,730	743,730	Level 1	743,730
Total assets	6,303	2,961	1,716,652	1,725,916		1,725,916
Non-current financial liabilities	48	10,047	948,475	958,570		963,683
Bond	0	0	29,794	29,794	Level 1	29,794
Financial debts	0	0	918,681	918,681	Level 2	923,794
Derivatives	48	10,047	0	10,095	Level 2	10,095
Current financial liabilities	568	7,182	1,590,661	1,598,411		1,600,084
Trade payables and other operating debts	0	0	1,178,012	1,178,012	Level 2	1,178,012
Bond	0	0	0	0	Level 1	0
Financial debts	0	0	412,649	412,649	Level 2	414,322
Derivatives	568	7,182	0	7,750	Level 2	7,750
Total liabilities	616	17,229	2,539,136	2,556,981		2,563,767

(1) Included in items 'Other non-current financial assets' and 'Other non-current assets'.

(2) Included in item 'Cash and cash equivalents'.

(3) FAMMFV : Financial assets mandatorily measured at fair value through profit and loss. FLFVPL : Financial liabilities measured at fair value through profit and loss.

The fair value of financial instruments can be classified according to three levels (1 to 3) based on the degree to which the inputs to the fair value measurements are observable :

Fair value measurements of level 1 are based on quoted prices (unadjusted) in active markets for identical assets or liabilities ;
Fair value measurements of level 2 are based on inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (through prices) or indirectly (through input derived from prices) ;
Fair value measurements of level 3 are based on valuation techniques comprising inputs which are unobservable for the asset or liability.

The fair value of financial instruments has been determined using the following methods :

For short-term financial instruments, such as trade receivables and payables, the fair value is considered not to be significantly different from the carrying amount measured at amortized cost ;
For floating rate liabilities, the fair value is considered not to be significantly different from the carrying amount measured at amortized cost ;
For derivative financial instruments (foreign currency, interest rate or forecasted cash flows), the fair value is determined using valuation models discounting future cash flows based on future interest rate curves, foreign currency curves or other forward prices ;
For the other derivative instruments, the fair value is determined by discounting future estimated cash flows; For the quoted bonds issued by BPI, the fair value is based on the quoted price at reporting date ;
For fixed rate liabilities, the fair value is based on the discounted cash flows based on the market interest rates at the closing date.

19. OTHER COMMITMENTS GIVEN

Total commitments given by the CFE group for the period ended on June 30, 2021, other than real security interests, amounted to € 1,548,620 thousand (December 2020 : € 1,566,108 thousand) and break down as follows :

(in € thousands)	June 2021	December 2020
Performance guarantees and performance bonds (a)	1,367,301	1,388,480
Bid bons (b)	16,560	18,144
Repayment of advance payments (c)	0	0
Retentions (d)	23,674	19,724
Deferred payments to subcontractors and suppliers (e)	51,121	37,561
Other commitments given - including € 48,664 thousand of corporate guarantees at DEME	89,964	102,199
Total	1,548,620	1,566,108

(a) Guarantees given in relation to the performance of works contracts. If the construction entity fails to perform, the bank (or insurance company) undertakes to compensate the customer to the extent of the guarantee.

(b) Guarantees provided as part of tenders relating to works contracts.
(c) Guarantees issued by a bank to a customer guaranteeing the repayment of advances on contracts.
(d) Security provided by a bank to a client to replace the use of retention money.
(e) Guarantee covering the settlement of a liability to a supplier or subcontractor.

20. OTHER COMMITMENTS RECEIVED

Total commitments received by the CFE group for the period ended June 30, 2021, amounted to € 413,048 thousand (December 2020 : € 440,094 thousand) and break down as follows :

(in € thousands)	June 2021	December 2020
Performance guarantees and performance bonds	408,515	435,733
Other commitments received	4,533	4,361
Total	413,048	440,094

21. LITIGATION

The CFE group is exposed to a number of claims that may be regarded as normal in the dredging and construction industries. In most cases, the CFE group seeks to conclude a transaction agreement with the counterparty, which substantially reduces the number of lawsuits.

The CFE group tries to recover outstanding receivables from its customers. However, it is not possible to estimate these potential assets.

22. RELATED PARTIES

Ackermans & van Haaren (AvH) owns 15,720,684 CFE shares on 30 June 2021 and is the main shareholder of the CFE group with a stake of 62.10%.

DEME NV and CFE SA entered into a service contract with Ackermans van Haaren NV. The remuneration due by DEME and by CFE SA under these contracts amounts to € 1,235 thousand and € 674 thousand respectively in 2021.

As of June 30, 2021, the CFE group and CFE's main shareholder Ackermans & van Haaren (AvH), exercise joint control over, in particular, Rent-A-Port NV, Green Offshore NV and their subsidiaries.

The Contracting segment (CFE Contracting) is managed by an Executive Committee composed of a CEO, Trorema SRL represented by Raymund Trost, and five other members: MSQ SRL, represented by Fabien De Jonge, 8822 SRL represented by Yves Weyts, Almacon SRL represented by Manu Coppens, AHO Consulting SRL represented by Alexander Hodac, and Focus2LER SRL represented by Valérie Van Brabant. There are no transactions with these companies without prejudice to the invoicing of these companies under their service contracts.

Loans were granted to certain members of the Executive Committee of CFE Contracting in the context of the stock option plans granted to these members.

Transactions with related parties mainly concerned transactions with companies in which CFE has a significant influence or a joint control. Such transactions are carried out on a market price basis. In the first half of 2021, there was no significant variation in the nature of transactions with related parties compared to 31 December 2020.

Commercial and financing transactions between the CFE group and investments accounted for using equity method are as follows :

(in € thousands)	June 2021	December 2020
Assets with related parties	139,191	133,838
Non-current financial assets	94,350	86,576
Trade and other operating receivables	38,974	39,342
Other current assets	5,867	7,920
Liabilities with related parties	39,737	38,584
Other non-current liabilities	8,805	9,269
Trade and other operating payables	30,932	29,315

(in € thousands)	June 2021	June 2020
Expenses and income with related parties	95,683	178,864
Revenue and other operating income	102,538	188,092
Purchases and other operating expenses	(9,345)	(12,171)
Financial expenses and income	2,490	2,943

Revenue and other operating income with investments accounted for using equity method mainly decreased at DEME between June 2020 and June 2021. This is due to the lower volume of work carried out for the construction of the SeaMade wind farm. In fact, the Sea Made wind farm went into operation at the end of 2020.

23. SUBSEQUENT EVENTS

Two events have had a significant impact on the financial and business situation of the CFE group since 30 June 2021, namely:

The BPI Real Estate Belgium SA (BPI) company sold all of the shares it held in the Ernest 11 company on 1 July 2021. The positive impact of this transaction will be recognised in the second half of 2021;
In 2015, CFE had set up a stock option plan with regard to the shares of CFE Contracting SA for certain members of the executive committee of this company. In August 2021, one of the beneficiaries has exercised his options, part of which is financed by a loan from CFE.

24. IMPACT OF FOREIGN CURRENCIES

The international activities of the CFE group for the contracting and real estate development segments are mainly within the Euro zone and Poland. Consequently, the exposure of those segments to exchange risk and the impact on the financial statements are limited. DEME, however, carries on a large part of its business internationally. These activities are mainly in US dollars or in currencies that are closely tied to the US dollar. DEME uses financial instruments to hedge exchange rate risk.

25. SEASONAL NATURE OF THE BUSINESS

The construction activity is seasonal and susceptible to the climatic conditions of winter.

Revenue and income achieved in the first half year cannot be extrapolated over the full year. The seasonal nature of the business is reflected in a higher use of cash in the first half year.

No adjustments were made to take account of the impact of seasonal factors on the group's financial statements for the first half year.

Income and expenses of the group from normal business operations which are subject to a seasonal, cyclical or occasional nature were recognized following the same valuation rules as at year-end. They were neither anticipated nor deferred in the interim financial statements.

ALTERNATIVE PERFORMANCE MEASURES RECONCILIATION

As shown below, the CFE group uses alternative performance measures to assess the group's financial performance. The definitions of those performance measures are presented in the 'glossary' section of this report.

The net financial debt, the working capital requirement and EBITDA have been computed using the consolidated statement of income and the consolidated statement of the financial position:

Net financial debt For the period ended June 30, 2021 (in € thousands)	DEME	Contracting	Real Estate	Holding and non-transferred activities	Eliminations between segments	Total
Non-current borrowings from consolidated companies of the group (*)	0	0	20,000	0	(20,000)	0
+ Non-current bonds	0	0	29,846	0	0	29,846
+ Non-current financial liabilities	645,986	28,912	35,260	120,632	0	830,790
+ Current bonds	0	0	0	0	0	0
+ Current financial liabilities	234,365	5,439	27,233	15,165	0	282,202
+ Internal cash position - Cash pooling - liabilities (*)	0	2,646	19,036	52,622	(74,304)	0
Financial liabilities	880,351	36,997	131,375	188,419	(94,304)	1,142,838
- Non-current loans to consolidated companies of the group (*)	0	0	0	(20,000)	20,000	0
- Cash and cash equivalents	(316,391)	(49,841)	(3,051)	(50,781)	0	(420,064)
- Internal cash position - Cash pooling - assets (*)	0	(71,396)	(1,075)	(1,833)	74,304	0
Cash and cash equivalents	(316,391)	(121,237)	(4,126)	(72,614)	94,304	(420,064)
Net financial debt	563,960	(84,240)	127,249	115,805	0	722,774

Net financial debt For the period ended December 31, 2020 (in € thousands)	DEME	Contracting	Real Estate	Holding and non-transferred activities	Eliminations between segments	Total
Non-current borrowings from consolidated companies of the group (*)	0	0	20,000	0	(20,000)	0
+ Non-current bonds	0	0	29,794	0	0	29,794
+ Non-current financial liabilities	735,053	25,318	42,701	115,609	0	918,681
+ Current bonds	0	0	0	0	0	0
+ Current financial liabilities	375,913	8,919	17,488	10,329	0	412,649
+ Internal cash position - Cash pooling - liabilities (*)	0	2,708	3,376	83,944	(90,028)	0
Financial liabilities	1,110,966	36,945	113,359	209,882	(110,028)	1,361,124
- Non-current loans to consolidated companies of the group (*)	0	0	0	(20,000)	20,000	0
- Cash and cash equivalents	(621,937)	(73,514)	(5,707)	(58,537)	0	(759,695)
- Internal cash position - Cash pooling - assets (*)	0	(86,830)	(1,457)	(1,741)	90,028	0
Cash and cash equivalents	(621,937)	(160,344)	(7,164)	(80,278)	110,028	(759,695)
Net financial debt	489,029	(123,399)	106,195	129,604	0	601,429

(*) These accounts relate to the cash positions with regard to entities belonging to other segments of the group (mainly CFE SA).

Working capital requirements (in € thousands)	June 2021	December 2020
Inventories	209,210	184,565
+ Trade and other operating receivables	954,353	867,761
+ Current operating assets	86,757	57,454
+ Other current non-operating assets	26,062	21,731
- Trade and other operating receivables	(1,214,190)	(1,178,012)
- Current tax liabilities	(81,114)	(75,283)
- Other current operating liabilities	(199,837)	(192,424)
- Other current non-operating liabilities	(230,145)	(244,511)
Working capital requirement	(448,904)	(558,719)

EBITDA (in € thousands)	June 2021	June 2020
Income from operating activities	52,914	2,555
Depreciation and amortisation of intangible assets, property, plant and equipment and investment property	153,630	156,168
(Decrease)/increase of provisions	0	1,202
Impairment on assets and other non-cash items	0	(151)
Non-cash items	153,630	157,219
Consolidated EBITDA	206,544	159,774

Up to 31 December 2020, the non-cash items in EBITDA consisted of amortisation and depreciation, and other non-cash items. From 2021 onwards, noncash items only include amortisation and depreciation of (in)tangible assets as well as goodwill. According to this new definition, EBITDA amounted to € 158,723 thousand on 30 June 2020, or 10.64% of the revenue.

The capital employed from the real estate development segment has been computed using the consolidated statement of financial position per segment :

Capital employed (in € thousands)	June 2021	December 2020
Equity - real estate segment	90,128	85,532
Net financial debt - real estate segment	127,249	106,195
Capital employed	217,377	191,727

STATEMENT ON THE TRUE AND FAIR NATURE OF THE FINANCIAL STATEMENTS AND THE TRUE AND FAIR NATURE OF THE PRESENTATION IN THE MANAGEMENT REPORT

(Article 12, paragraph 2, 3° of the Royal Decree of 14.11.2007 on the obligations of issuers of financial instruments admitted to trading on a regulated market)

We certify, in the name and on behalf of Compagnie d'Entreprises CFE SA and on that company's responsibility, that, to our knowledge,

1. the financial statements, prepared in accordance with the applicable accounting standards, give a true and fair view of the assets, financial position and results of Compagnie d'Entreprises CFE SA and of the companies included in its scope of consolidation;
1. the management report contains a true and fair presentation of the business, results and position of Compagnie d'Entreprises CFE SA and of the companies included in its scope of consolidation, along with a description of the main risks and uncertainties to which they are exposed.

SIGNATURES

Name :	Fabien De Jonge	Piet Dejonghe
Title :	Chief Financial Officer	Managing Director

Date : 25 August 2021

GENERAL INFORMATION ABOUT THE COMPANY

Company name :	Compagnie d'Entreprises CFE
Head office :	Avenue Herrmann-Debroux 42, 1160 Brussels
Telephone :	+ 32 2 661 12 11
Legal form :	Public limited company (société anonyme)
Legislation :	Belgian
Date of incorporation :	21 June 1880
Duration :	indefinite
Accounting period :	From 1 January to 31 December of each year
Trade Register entry :	RPM Brussels 0400 464 795 – VAT 400.464.795
Place where legal documentation can be consulted :	Head office

CORPORATE PURPOSE (ARTICLE 2 OF THE ARTICLES OF ASSOCIATION)

"The purpose of the company is to study and execute any work or construction within each and every of its specialist areas, in particular electricity and the environment, in Belgium or abroad, singly or jointly with other natural or legal persons, for its own account or on behalf of third parties belonging to the public or private sector.

It may also perform services related to these activities, directly or indirectly operate them or license them out or carry out any purchase, sale, rent or lease operation whatsoever in respect of such undertakings.

It may directly or indirectly acquire, hold or sell equity interests in any company or undertaking existing now or in the future by way of acquisition, merger, spin-off or any other means.

It may carry out any commercial, industrial, administrative or financial operations or operations involving movable or immovable property that are directly or indirectly related to its purpose, even partially, or that could facilitate or develop that purpose, either for itself or for its subsidiaries.

The general meeting may change the corporate purpose subject to the conditions specified in Article five hundred and fifty-nine of the Belgian Companies Code."

STATUTORY AUDITOR'S REPORT ON THE REVIEW OF THE CONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION AS AT 30 JUNE 2021 AND FOR THE SIX-MONTH PERIOD THEN ENDED

INTRODUCTION

We have reviewed the accompanying consolidated statement of financial position of Compagnie d'Entreprises CFE NV/SA as at 30 June 2021, the consolidated statement of income, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the six-month period then ended, and notes ("the consolidated condensed interim financial information"). The board of directors is responsible for the preparation and presentation of this consolidated condensed interim financial information in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this consolidated condensed interim financial information based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with the International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying consolidated condensed interim financial information as at 30 June 2021 and for the six-month period then ended is not prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.

Diegem, 30 August 2021 EY Bedrijfsrevisoren BV/EY Réviseurs d'Entreprises SRL Statutory auditor Represented by

Marnix Van Dooren Patrick Rottiers Partner Partner

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Compagnie d'Entreprises CFE SA

3929_ir_2021-08-31_07f5c2f8-bc1d-49f7-95d3-4ca19890c489.pdf

First half results 2021