Earnings Release • Aug 3, 2021
Earnings Release
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Leidschendam, the Netherlands, 29 July 2021
| Q2 2021 | Q2 2020 | H1 2021 | H1 2020 | |
|---|---|---|---|---|
| Revenue | 389.5 | 349.0 | 673.3 | 707.4 |
| comparable growth2 | 14.1% | (19.3%) | (1.8%) | (10.3%) |
| EBITDA3 | 59.8 | 54.1 | 72.9 | 61.3 |
| EBIT3 | 31.7 | 25.8 | 16.7 | 4.3 |
| EBIT margin3 | 8.1% | 7.4% | 2.5% | 0.6% |
| Net result4 | 5.4 | (51.6) | ||
| Net result incl. discontinued operations | 17.2 | (113.1) | ||
| Cash flow from operating activities after investing (free cash flow)5 | (5.6) | 33.0 | (52.5) | 15.5 |
| Backlog next 12 months | 863.4 | 845.2 | 863.4 | 845.2 |
| comparable growth2 | 3.3% | 1.1% | 3.3% | 1.1% |
1 Seabed Geosolutions' results classified as discontinued operations
2 Corrected for currency effect
3 Adjusted for specific items; with a total impact on EBIT of EUR 5.9 million (impairment and restructuring costs) in H1 2021
4 Excluding non-controlling interests
5 Free cash flow includes cash flow from discontinued operations
Mark Heine, CEO: "During the second quarter, one year after the outbreak of the pandemic, we have returned to growth. This was largely on account of our renewables business, highlighting our leading position and flexibility to shift assets and capabilities to growth markets. In the second quarter, our infrastructure and oil & gas related activities were also up, after a very challenging 2020.
We continue to make progress with our diversification. Currently, 60% of our revenue is generated in renewables, infrastructure and nautical. This is in line with our objective to support clients with the energy transition, climate change adaptation and the development of sustainable infrastructure. For example, we are presently executing services for offshore wind projects for Atlantic Shores in the US and Thang Long in Vietnam, and a cable route survey for Alcatel's new fibre-optic cable system connecting North America to Asia. In addition, we continue to implement our remote operations, encompassing remote positioning, hydrography and inspection services. For Woodside in Australia, we recently successfully completed our first remote inspection project with an uncrewed surface vessel, which has much lower CO2 emissions and safety risks than a traditional vessel.
Supported by cost reductions implemented over the past quarters and second quarter revenue growth, our margins are up. While there are still Covid uncertainties that impact our business, we expect revenue growth and a modest margin improvement for the full-year. Even though there is still a gap between current performance and our mid-term targets, we are confident that we are back on our Path to Profitable Growth."
Overall, first half-year revenue was down by 1.8% compared to last year, with a good second quarter after a weak first quarter. The EBIT margin was 2.5% compared to 0.6% last year, an improvement supported by both marine and land operations. The cost savings program which was initiated last year immediately after the outbreak of the pandemic, was fully implemented by the start of 2021.
Revenue in the second quarter grew by 14.1% compared to last year; the first increase since the start of the pandemic. It was supported by all regions except Middle East & India. Nevertheless, the pandemic continues to affect operations, with regional differences. Revenue of the marine business lines across the regions increased by 11.8% in total. The growth was particularly strong in site characterisation in Europe-Africa, through continued growth in offshore wind and a slight increase in oil and gas related revenue. In Land, revenue increased by 20.2%, supported by both business lines. Through a combination of cost control and revenue growth, the margin was up to 8.1%, compared to 7.4% last year.
The 12-month backlog is up 3.3%, supported by all business lines except marine site characterisation.
Free cash flow was EUR 52.5 million negative due to higher working capital driven by revenue growth, seasonality and an exceptionally low level at year-end 2020. Cash flow from operating activities before working capital increased to EUR 43.9 million from EUR 23.6 million as a result of revenue growth and operational leverage. Working capital as a percentage of 12 months rolling revenue was 16.1% at the end of June, compared to 12.0% a year ago and 8.1% at the end of 2020. Days of revenue outstanding was 92 days per the end of June compared to 94 days in June last year and 83 days at the end of 2020.
Net debt at the end of the second quarter was EUR 368.4 million, compared to EUR 295.8 million at year-end 2020 and EUR 351.4 million at the end of March. The increase was mainly the result of higher working capital. Net debt/EBITDA remained stable over the quarter at 2.2x.
For full-year 2021, growth is expected to continue in the renewables, infrastructure and nautical markets. The modest recovery of the oil and gas market in the second quarter is expected to continue.
While there are still Covid uncertainties that impact the business, Fugro expects revenue growth, a modest margin improvement and around break-even free cash flow for the full-year. Capex will be around EUR 80-90 million.
| Key figures excluding specific items | comparable | ||
|---|---|---|---|
| (x EUR million) | H1 2021 | H1 20201 | growth2 |
| Revenue | 467.2 | 510.9 | (6.4%) |
| EBITDA | 60.3 | 54.8 | |
| EBIT | 14.2 | 9.4 | |
| EBIT margin | 3.0% | 1.8% | |
| Backlog next 12 months | 585.2 | 583.9 | 0.5% |
| Capital employed | 789.1 | 778.1 |
1 Adjusted for reclassification of nearshore infrastructure services in Europe-Africa (from Land to Marine) with EUR 11.7 million revenue in H1 2020
2Corrected for currency effect
| Key figures excluding specific items (x EUR million) |
H1 2021 | H1 20201 | comparable growth2 |
|---|---|---|---|
| Revenue | 206.1 | 196.5 | 10.3% |
| EBITDA | 12.6 | 6.5 | |
| EBIT | 2.6 | (5.1) | |
| EBIT margin | 1.2% | (2.6%) | |
| Backlog next 12 months | 278.2 | 261.3 | 9.5% |
| Capital employed | 214.8 | 219.3 |
1 Adjusted for reclassification of nearshore infrastructure services in Europe-Africa (from Land to Marine) with EUR 11.7 million revenue in H1 2020
2 Corrected for currency effect
| comparable | ||
|---|---|---|
| H1 2021 | H1 2020 | growth1 |
| 319.8 | 290.3 | 9.4% |
| 32.2 | 7.6 | |
| 10.1% | 2.6% | |
| 377.2 | 355.6 | 3.9% |
1 Corrected for currency effect
| Key figures excluding specific items (x EUR million) |
H1 2021 | H1 2020 | comparable growth1 |
|---|---|---|---|
| Revenue | 150.2 | 172.1 | (4.4%) |
| EBIT | (10.6) | (10.2) | |
| EBIT margin | (7.1%) | (5.9%) | |
| Backlog next 12 months | 231.1 | 223.5 | 6.6% |
1 Corrected for currency effect
| Key figures excluding specific items | comparable | ||
|---|---|---|---|
| (x EUR million) | H1 2021 | H1 2020 | growth1 |
| Revenue | 139.9 | 147.4 | (2.3%) |
| EBIT | (3.8) | (1.6) | |
| EBIT margin | (2.7%) | (1.1%) | |
| Backlog next 12 months | 166.3 | 175.3 | (2.6%) |
1 Corrected for currency effect
| Key figures excluding specific items (x EUR million) |
H1 2021 | H1 2020 | comparable growth1 |
|---|---|---|---|
| Revenue | 63.4 | 97.6 | (29.3%) |
| EBIT | (1.1) | 8.5 | |
| EBIT margin | (1.7%) | 8.7% | |
| Backlog next 12 months | 88.8 | 90.8 | 4.1% |
1 Corrected for currency effect
At 07:30 CET, Fugro will host a media call. The dial-in number is +31 (0)20 7038211 with conference ID 8000006. At 11:30 CET, Fugro will host an analyst meeting accessible through a video webcast via https://www.fugro.com/investors/results-and-publications/quarterly-results. Analysts can dial in via +31 (0)20 703 8259 or +44 (0)330 336 9434 with conference ID: 2203789.
| 28 October 2021 | Publication third quarter 2021 trading update (7.00 CET) |
|---|---|
| 18 February 2022 | Publication 2021 annual results (7.00 CET) |
| Media | Investors |
|---|---|
| Edward Legierse | Catrien van Buttingha Wichers |
| [email protected] | [email protected] |
| +31 70 31 11147 | +31 70 31 15335 |
| +31 6 4675 2240 | +31 6 1095 4159 |
Fugro is the world's leading Geo-data specialist, collecting and analysing comprehensive information about the Earth and the structures built upon it. Adopting an integrated approach that incorporates acquisition and analysis of Geo-data and related advice, Fugro provides solutions. With expertise in site characterisation and asset integrity, clients are supported in the safe, sustainable and efficient design, construction and operation of their assets throughout the full lifecycle. Employing approximately 9000 talented people in 61 countries, Fugro serves clients around the globe, predominantly in the energy and infrastructure industries, both offshore and onshore. In 2020, revenue amounted to EUR 1.4 billion. The company is listed on Euronext Amsterdam.
This press release contains information that qualifies, or may qualify as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
This announcement may contain forward-looking statements. Forward-looking statements are statements that are not historical facts, including (but not limited to) statements expressing or implying Fugro's beliefs, expectations, intentions, forecasts, estimates or predictions (and the assumptions underlying them). Forwardlooking statements necessarily involve risks and uncertainties. The actual future results and situations may therefore differ materially from those expressed or implied in any forward-looking statements. Such differences may be caused by various factors (including, but not limited to, developments in the oil and gas industry and related markets, currency risks and unexpected operational setbacks). Any forward-looking statements contained in this announcement are based on information currently available to Fugro's management. Fugro assumes no obligation to in each case make a public announcement if there are changes in that information or if there are otherwise changes or developments in respect of the forwardlooking statements in this announcement.
| Result | ||
|---|---|---|
| (x EUR million) | H1 2021 | H1 2020 |
| Adjusted EBITDA | 72.9 | 61.3 |
| Depreciation | (55.8) | (56.0) |
| Amortisation | (0.3) | (1.0) |
| Adjusted EBIT | 16.7 | 4.3 |
| Specific items on EBIT | (5.9) | (15.0) |
| EBIT | 10.8 | (10.7) |
| Net finance income/ (costs) | (13.7) | (25.3) |
| Share of profit/ (loss) in equity accounted investees | 7.9 | 3.9 |
| Income tax gain/ (expense) | 1.5 | (18.7) |
| (Gain)/ loss on non-controlling interests from continuing operations |
(1.1) | (0.8) |
| Net result from continuing operations | 5.4 | (51.6) |
| Result from discontinued operations | 11.8 | (61.5) |
| Net result including discontinued operations | 17.2 | (113.1) |
In the period under review, specific items for continuing operations were composed of EUR 4.8 million impairments, EUR 1.0 million restructuring costs and EUR 0.1 million certain other costs.
| Finance income/ (costs) | ||
|---|---|---|
| (x EUR million) | H1 2021 | H1 2020 |
| Finance income | 3.1 | 0.3 |
| Interest expenses | (22.4) | (21.6) |
| Exchange rate variances | 5.6 | (4.0) |
| Finance expenses | (13.7) | (25.6) |
| Net finance costs from continuing operations | (13.7) | (25.3) |
| Net finance costs from discontinued operations | - | (1.9) |
Finance expenses decreased by EUR 11.6 million to EUR 13.7 million thanks to positive foreign exchange movements on the US dollar, Saudi Arabian Riyal and Singapore dollar.
The share of profit of equity-accounted investees was EUR 7.9 million compared to EUR 3.9 million in the first half of 2020 and comprises the results of several joint ventures.
The income tax gain of EUR 1.5 million was mainly driven by the recognition of deferred tax assets in The Netherlands and a change in tax rate in the United Kingdom.
The EUR 1.1 million gain attributable to non-controlling interest mainly consists of the profit of a subsidiary in the Middle East.
Result from discontinued operations of EUR 11.8 million was a combination of Seabed Geosolutions' good operational result on the project for Equinor in Brazil partly offset by charges related to the divestment (mainly EUR 8.6 million restructuring costs and EUR 2.7 million impairment).
| Working capital | ||
|---|---|---|
| (x EUR million) | H1 2021 | H1 2020 |
| Working capital from continuing operations | 217.7 | 184.9 |
| Working capital as % of last 12 months revenue | 16.1% | 12.0% |
| Inventories | 30.3 | 29.7 |
| Trade and other receivables | 551.7 | 478.5 |
| Trade and other payables | (364.3) | (323.3) |
| Days revenue outstanding (DRO) | 92 | 94 |
| Working capital from discontinued operations | - | (9.3) |
Working capital as a percentage of 12-months rolling revenue was 16.1% at the end of June compared to 12.0% a year ago mainly due to seasonal revenue growth, which did not materialise in 2020 due to the impact of the Covid-19 pandemic.
| (x EUR million) | ||
|---|---|---|
| H1 2021 | H1 2020 | |
| Maintenance capex | 9.0 | 27.5 |
| Other capex (including fixed assets under construction) | 17.8 | 17.7 |
| Capex from continuing operations | 26.8 | 45.2 |
| Capex from discontinued operations | - | 2.4 |
Capital expenditure decreased from EUR 45.2 million last year to EUR 26.8 million in the first half of 2021, as a result of phasing.
| Cash flow | ||
|---|---|---|
| (x EUR million) | H1 2021 | H1 2020 |
| Cash flow from operating activities | (45.3) | 14.6 |
| Cash flow from investing activities | (18.2) | 3.6 |
| Cash flow from operating activities after investing | (63.5) | 18.2 |
| Cash flow from financing activities | 23.2 | 106.9 |
| Net cash movement | (40.3) | 125.1 |
Despite a positive contribution from revenue growth and operational leverage, cash flow from operating activities was negative, driven by higher working capital due to revenue growth, seasonality and an exceptionally low working capital at year-end 2020.
Cash flow from investing activities was driven by capital expenditure; in the comparable period last year it also included EUR 49.9 million proceeds from the sale of Global Marine last year.
Cash flow from financing activities was an inflow of EUR 23.2 million compared to an inflow of EUR 106.9 million in the comparable period last year which included proceeds from the sub-10 equity placement in February.
| Cash flow | ||
|---|---|---|
| (x EUR million) | H1 2021 | H1 2020 |
| Cash flow from operating activities | (2.1) | 0.9 |
| Cash flow from investing activities | 13.1 | (3.5) |
| Cash flow from operating activities after investing | 11.0 | (2.6) |
| Cash flow from financing activities | (9.0) | 8.0 |
| Net cash movement | 2.0 | 5.4 |
The net cash movement from discontinued operations amounted to EUR 2.0 million as a result of excellent performance on Seabed Gesolutions' project for Equinor, fully offset by a change in working capital, and EUR 13.4 million cash proceeds received on completion of the divestment of Seabed Geosolutions in cash flow from investing activities, offset by repayment of loans to Fugro in the cash flow from financing activities.
Doing business inherently involves taking risk and therefore risk management is an essential element of Fugro's culture, corporate governance, strategy development, and operational and financial management. The Board of Management holds ultimate responsibility for risk management within the company. The Executive Leadership Team, which includes the members of the Board of Management, identifies and analyses the risks and opportunities associated with the strategy and activities of Fugro, establishes the risk appetite and measures that are put in place in order to manage the risks.
In its annual report 2020, Fugro extensively describes the company's risk management process, including its appetite, direction and monitoring of the various key risks that could adversely affect its business or financial position, as well as its reputation and performance. Furthermore, the company actively manages the risks and opportunities related to climate change mitigation and adaptation.
As the company is still being affected by the impact of Covid-19, there is a risk that execution of the strategy proves more difficult than expected, and changes in the organisation are needed, or takes longer than anticipated. The risk management process is therefore monitored closely by the Executive Leadership Team, and several measures have already been successfully implemented to manage risks. In the period under review, Fugro has not identified other risk categories or key risks than mentioned in the annual report 2020, which might result in pressure on revenues and income. Additional risks not known to the company, or currently believed not to be material, may occur and could later turn out to have material impact on its business, financial objectives or capital resources. In order to monitor and address risks a proactive approach in risk management is in place. A comprehensive assessment to address Fugro's strategic, operational, financial and compliance risks is ongoing in all levels within the company.
The Board of Management hereby declares that, to the best of their knowledge, the consolidated interim financial statements in this half-year report 2021 have been prepared in accordance with IAS 34 'Interim Financial Reporting' and give a true and fair view of the assets, liabilities, financial position and the result of Fugro N.V. and its consolidated companies included in the consolidation. As a whole, the interim management report in this half-year report 2021 gives a fair view of the information required pursuant to section 5:25d, subsections 8 and 9 of the Dutch Financial Markets Supervision Act.
Leidschendam, 28 July 2021 M.R.F. Heine, Chairman Board of Management/Chief Executive Officer B.P.E. Geelen, Chief Financial Officer
| Consolidated statement of comprehensive income | 12 |
|---|---|
| Consolidated statement of financial position | 14 |
| Consolidated statement of changes in equity | 15 |
| Consolidated statement of cash flows | 17 |
| Notes to the condensed consolidated interim financial statements | 19 |
| Independent auditor's review report | 27 |
| For the six month period ended 30 June | |||
|---|---|---|---|
| Notes | (x EUR million) unaudited |
2021 | 2020 |
| Continuing operations | |||
| Revenue | 673.3 | 707.4 | |
| Third party costs | (262.7) | (270.6) | |
| Net revenue own services1 | 410.6 | 436.8 | |
| Other income | 10.2 | 10.5 | |
| Personnel expenses | (279.9) | (309.8) | |
| Depreciation | (55.8) | (56.0) | |
| Amortisation | (0.3) | (1.0) | |
| Impairments | (4.8) | (3.3) | |
| Other expenses | (69.2) | (87.9) | |
| Results from operating activities (EBIT1 ) |
10.8 | (10.7) | |
| Finance income | 3.1 | 0.3 | |
| Finance expenses | (16.8) | (25.6) | |
| Net finance income/(expenses) | (13.7) | (25.3) | |
| Share of profit/(loss) of equity-accounted investees (net of income tax) | 7.9 | 3.9 | |
| Profit/(loss) before income tax | 5.0 | (32.1) | |
| Income tax (expense)/gain | 1.5 | (18.7) | |
| Profit/(loss) for the period from continuing operations | 6.5 | (50.8) | |
| Profit/(loss) for the period from discontinued operations | 11.8 | (61.5) | |
| Profit/(loss) for the period | 18.3 | (112.3) | |
| Attributable to: | |||
| Owners of the company (net result) | 17.2 | (113.1) | |
| Non-controlling interests | 1.1 | 0.8 | |
| Earnings per share (Euro) | |||
| Basic earnings per share | 0.18 | (1.94) | |
| Diluted earnings per share | 0.18 | (1.94) | |
| Basic earnings per share from continuing operations | 0.06 | (0.88) | |
| Diluted earnings per share from continuing operations | 0.06 | (0.88) | |
| Profit/(loss) for the period | 18.3 | (112.3) | |
| Defined benefit plan actuarial gains/(losses) | 20.6 | (6.5) | |
| Total of items that will not be reclassified to profit or loss | 20.6 | (6.5) | |
| Foreign currency translation differences of foreign operations | 20.2 | (20.0) | |
| Foreign currency translation differences of equity-accounted investees | 0.6 | (0.9) | |
| Net change in fair value of hedge of net investment in foreign operations | - | - | |
| Total of items that will be reclassified subsequently to profit or loss | 20.8 | (20.9) | |
| Other comprehensive income/(loss) for the period | 41.4 | (27.4) |
| Total comprehensive income/(loss) for the period | 59.7 | (139.7) |
|---|---|---|
| Attributable to: | ||
| Owners of the company | 58.6 | (140.5) |
| Non-controlling interests | 1.1 | 0.8 |
| Total comprehensive income/(loss) attributable to owners of the company arising from: |
||
| Continuing operations | 48.7 | (80.4) |
| Discontinued operations | 9.9 | (60.1) |
1 Non-GAAP performance measure. Reference is made to the glossary of the annual report 2020.
| Notes | (x EUR million) unaudited |
30 June 2021 |
31 December 2020 |
|---|---|---|---|
| Assets | |||
| 13 | Property, plant and equipment | 511.5 | 523.0 |
| 14 | Right-of-use assets | 135.2 | 135.0 |
| 15 | Intangible assets including goodwill | 283.2 | 277.3 |
| Investments in equity-accounted investees | 40.7 | 36.2 | |
| Other investments | 54.8 | 47.5 | |
| 12 | Deferred tax assets | 44.5 | 35.6 |
| Total non-current assets | 1,069.9 | 1,054.6 | |
| Inventories | 30.3 | 27.6 | |
| 16 | Trade and other receivables | 551.7 | 406.3 |
| Current tax assets | 8.2 | 11.5 | |
| Cash and cash equivalents | 149.5 | 183.5 | |
| 739.7 | 628.9 | ||
| Assets classified as held for sale | 4.5 | 17.5 | |
| Total current assets | 744.2 | 646.4 | |
| Total assets | 1,814.1 | 1,701.0 | |
| 17 | Equity | ||
| Total equity attributable to owners of the company | 763.5 | 702.1 | |
| Non-controlling interests | 9.9 | 9.6 | |
| Total equity | 773.4 | 711.7 | |
| Liabilities | |||
| 18 | Loans and borrowings | 306.5 | 286.2 |
| 14 | Lease liabilities | 108.9 | 106.6 |
| Employee benefits | 51.6 | 72.5 | |
| 11 | Provisions | 15.0 | 14.9 |
| Deferred tax liabilities | 3.6 | 3.5 | |
| Total non-current liabilities | 485.6 | 483.7 | |
| Bank overdraft | 1.8 | 2.3 | |
| 18 | Loans and borrowings | 71.5 | 58.0 |
| Lease liabilities | 29.2 | 26.1 | |
| 16 | Trade and other payables | 364.3 | 322.2 |
| 11 | Provisions | 13.8 | 10.4 |
| Current tax liabilities | 24.1 | 26.4 | |
| Other taxes and social security charges | 50.4 | 46.7 | |
| 555.1 | 492.1 | ||
| 10 | Liabilities classified as held for sale | - | 13.5 |
| Total current liabilities | 555.1 | 505.6 | |
| Total liabilities | 1,040.7 | 989.3 | |
| Total equity and liabilities | 1,814.1 | 1,701.0 |
For the six month period ended 30 June
| Notes | (x EUR million) unaudited |
Share capital |
Share premium |
Translation reserve |
Reserve for own shares |
Equity component of convertible bond |
Retained earnings |
Unappro priated result |
Total | Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January 2021 |
10.3 | 757.3 | (136.5) | (158.5) | 19.8 | 383.4 | (173.8) | 702.1 | 9.6 | 711.7 | |
| Profit or (loss) | - | - | - | - | - | - | 17.2 | 17.2 | 1.1 | 18.3 | |
| 10 | Other comprehensive income |
- | - | 20.8 | - | - | 20.6 | - | 41.4 | - | 41.4 |
| Total comprehensive income/(loss) for the period |
- | - | 20.8 | - | - | 20.6 | 17.2 | 58.6 | 1.1 | 59.7 | |
| 17 | Change in nominal value of ordinary shares |
(5.1) | 5.1 | - | - | - | - | - | - | - | - |
| Share-based payments | - | - | - | - | - | 2.9 | - | 2.9 | - | 2.9 | |
| Share options exercised | - | - | - | 7.5 | - | (7.5) | - | - | - | - | |
| Addition to/(reduction of) reserves |
- | - | - | - | - | (173.8) | 173.8 | - | - | - | |
| Dividends to shareholders | - | - | - | - | - | - | - | - | (0.8) | (0.8) | |
| Total contributions by and distributions to |
|||||||||||
| owners | (5.1) | 5.1 | - | 7.5 | - | (178.4) | 173.8 | 2.9 | (0.8) | 2.1 | |
| Balance at 30 June 2021 | 5.2 | 762.4 | (115.7) | (151.0) | 19.8 | 225.6 | 17.2 | 763.5 | 9.9 | 773.4 |
| Notes | (x EUR million) unaudited |
Share capital |
Share premium |
Translation reserve |
Reserve for own shares |
Equity component of convertible bond |
Retained earnings |
Unappro priated result |
Total | Non controlling interest |
Total equity |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 1 January |
|||||||||||
| 2020 | 4.2 | 431.3 | (101.2) | (160.8) | 38.0 | 494.3 | (108.5) | 597.3 | 10.6 | 607.9 | |
| Profit or (loss) | - | - | - | - | - | - | (113.1) | (113.1) | 0.8 | (112.3) | |
| Other comprehensive income |
- | - | (20.9) | - | - | (6.5) | - | (27.4) | - | (27.4) | |
| Total comprehensive income/(loss) for the period |
- | - | (20.9) | - | - | (6.5) | (113.1) | (140.5) | 0.8 | (139.7) | |
| 17 | Issue of ordinary shares | 0.4 | 81.3 | - | - | - | (0.9) | - | 80.8 | - | 80.8 |
| Share-based payments | - | - | - | - | - | 2.5 | - | 2.5 | - | 2.5 | |
| Share options exercised | - | - | - | 1.9 | - | (1.9) | - | - | - | - | |
| Addition to/(reduction of) reserves |
- | - | - | - | - | (108.5) | 108.5 | - | - | - | |
| Transactions with non controlling interests |
- | - | - | - | - | - | - | - | 0.7 | 0.7 | |
| Dividends to shareholders | - | - | - | - | - | - | - | - | (2.1) | (2.1) | |
| Total contributions by and distributions to |
|||||||||||
| owners | 0.4 | 81.3 | - | 1.9 | - | (108.8) | 108.5 | 83.3 | (1.4) | 81.9 | |
| Balance at 30 June 2020 | 4.6 | 512.6 | (122.1) | (158.9) | 38.0 | 379.0 | (113.1) | 540.1 | 10.0 | 550.1 |
For the six month period ended 30 June
| (x EUR million) unaudited |
2021 | 2020 |
|---|---|---|
| Continuing operations | ||
| Cash flows from operating activities | ||
| Profit/(loss) for the period | 6.5 | (50.8) |
| Adjustments for: | ||
| Depreciation and amortisation | 56.1 | 57.0 |
| Impairments | 4.8 | |
| Share of (profit)/loss of equity-accounted investees (net of income tax) | (7.9) | (3.9) |
| Net gain on sale of property, plant and equipment | (3.2) | (0.9) |
| Equity-settled share-based payments | 2.9 | |
| Change in provisions and employee benefits | (11.6) | (3.2) |
| Income tax expense/(gain) | (1.5) | 18.6 |
| Income tax paid | (2.4) | (6.6) |
| Finance income and expense | 13.7 | 25.4 |
| Interest paid | (13.5) | (17.8) |
| Operating cash flows before changes in working capital1 | 43.9 | 23.6 |
| Decrease (increase) in working capital: | ||
| • Change in inventories | (2.7) | (1.5) |
| • Change in trade and other receivables | (107.1) | |
| • Change in trade and other payables | 20.6 | (14.7) |
| Net cash generated from operating activities | (45.3) | 14.6 |
| Cash flows from investing activities | ||
| Capital expenditures on property, plant and equipment | (26.8) | (45.2) |
| Acquisition of and other additions to intangible assets | (1.5) | (0.4) |
| Proceeds from sale of property, plant and equipment | 7.0 | |
| Disposal of intangible assets | - | |
| Dividends received | 4.0 | 51.5 |
| Acquisitions, net of cash acquired | - | (4.2) |
| Additions to other investments | (1.2) | |
| Proceeds from sale of other investments | 0.3 | |
| Cash flows from operating activities after investing activities1 | (63.5) | 18.2 |
|---|---|---|
| Cash flows from financing activities | ||
| Proceeds from the issue of ordinary shares | - | 81.8 |
| Transaction costs on issue of shares | - | (0.9) |
| Proceeds from issue of long-term loans | 37.9 | 74.0 |
| Transaction costs from repayment long-term loans | - | (0.7) |
| Repayment of borrowings | (1.1) | (32.5) |
| Dividends paid | (0.8) | (2.1) |
| Payments of lease liability | (12.8) | (12.7) |
| Net cash from/(used in) financing activities | 23.2 | 106.9 |
| Net cash provided by/(used for) continuing operations | (40.3) | 125.1 |
| Discontinued operations | ||
| Cash flows from operating activities | (2.1) | 0.9 |
| Cash flows from investing activities | 13.1 | (3.5) |
| Cash flows from financing activities | (9.0) | 8.0 |
| Net cash provided by/(used for) discontinued operations | 2.0 | 5.4 |
| Total net cash provided by/(used for) operations | (38.3) | 130.5 |
| Effect of exchange rate fluctuations on cash held | 4.9 | (13.9) |
| Cash and cash equivalents at 1 January | 181.1 | 201.8 |
| Cash and cash equivalents at 30 June | 147.7 | 318.4 |
| Presentation in the statement of financial position | ||
| Cash and cash equivalents | 149.5 | 311.5 |
| Bank overdraft | (1.8) | (1.6) |
| Cash and cash equivalents (classified as held for sale) | - | 8.5 |
1 Non-GAAP performance measure. Reference is made to the glossary of the annual report 2020.
Fugro N.V., hereinafter referred to as 'Fugro', 'the group', or 'the company', has its corporate seat and principal office at Veurse Achterweg 10, 2264 SG Leidschendam, the Netherlands. The condensed consolidated interim financial statements of Fugro as at and for the six months ended 30 June 2021 include Fugro and its subsidiaries (together referred to as the 'group') and the group's interests in equity-accounted investees. Fugro is the world's leading Geo-data specialist, collecting and analysing comprehensive information about the Earth and the structures built upon it. Adopting an integrated approach that incorporates acquisition and analysis of Geo-data and related advice, Fugro provides solutions. With expertise in site characterisation and asset integrity, clients are supported in the safe, sustainable and efficient design, construction and operation of their assets throughout the full lifecycle. Employing approximately 9000 talented people in 61 countries, Fugro serves clients around the globe, predominantly in the energy and infrastructure industries, both offshore and onshore.
These condensed consolidated interim financial statements for the six months ended 30 June 2021 have been prepared in accordance with IAS 34, ´Interim Financial Reporting´. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of Fugro N.V. as at and for the year ended 31 December 2020, which have been prepared in accordance with IFRS as endorsed by the European Union. The annual report 2020 (including the consolidated financial statements as at and for the year ended 31 December 2020) is available at www.fugro.com.
On 28 July 2021, the Board of Management and Supervisory Board authorised the condensed consolidated interim financial statements for issue. Publication is on 29 July 2021. The condensed consolidated interim financial statements have been reviewed, not audited.
The accounting policies in these condensed consolidated interim financial statements are the same as those applied by the group in its consolidated financial statements as at and for the year ended 31 December 2020, unless stated otherwise.
Certain new accounting standards, interpretations and amendments have been published that are not yet effective for these condensed consolidated interim financial statements and have not been early adopted by the group. These new standards are either not material for Fugro and/or not applicable. Several amendments and interpretations apply for the first time as of 1 January 2021, but these do not have a material impact on the condensed consolidated interim financial statements of the group.
The group's estimates, judgements, uncertainties and assumptions regarding the future were disclosed in the basis of preparation of the annual consolidated financial statements 2020. This assessment included impairment of non-financial assets, impairment of financial assets, the Covid-19 pandemic, leases, deferred tax, employee benefits and provisions. In preparing these condensed consolidated interim financial statements, management has updated these judgements, estimates and assumptions that affect the application of accounting policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates.
The nature, amount and impact of any changes in estimates of amounts reported in the 2020 annual financial statements are disclosed in the notes below.
Information about reportable segments for the six months ended 30 June, unless stated otherwise
| (x EUR million) | E-A | AM | APAC | MEI | Total | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |
| Segment revenue | 329.6 | 317.5 | 151.8 | 184.9 | 146.5 | 167.8 | 68.8 | 103.0 | 696.7 | 773.2 |
| Of which inter-segment revenue |
9.8 | 27.2 | 1.6 | 12.8 | 6.6 | 20.4 | 5.4 | 5.4 | 23.4 | 65.8 |
| Revenue | 319.8 | 290.3 | 150.2 | 172.1 | 139.9 | 147.4 | 63.4 | 97.6 | 673.3 | 707.4 |
| Impairments | (3.7) | - | - | (0.9) | (1.1) | (2.4) | - | - | (4.8) | (3.3) |
| Result from operating activities (EBIT) |
28.1 | 3.9 | (10.7) | (12.9) | (5.4) | (8.9) | (1.1) | 7.2 | 10.8 | (10.7) |
| Reportable segment profit/(loss) before income tax |
19.7 | (12.9) | (12.6) | (15.5) | (0.6) | (11.4) | (1.5) | 7.7 | 5.0 | (32.1) |
| Non – current assets | ||||||||||
| 30 June 2021 and 31 December 2020 |
558.7 | 556.9 | 174.1 | 173.8 | 218.4 | 205.8 | 118.7 | 118.0 | 1,069.9 | 1,054.6 |
| (x EUR million) | Six months ended 30 June 2021 |
Six months ended 30 June 2020 (*) |
|---|---|---|
| Marine | 467.2 | 510.9 |
| Land | 206.1 | 196.5 |
| Total | 673.3 | 707.4 |
(*) Restated for the reclassification of nearshore infrastructure services from Land to Marine, following changes in internal management reporting. The reclassification impact is EUR 11.7 million for the first six months of 2020.
| (x EUR million) | Six months ended 30 June 2021 |
Six months ended 30 June 2020 |
|---|---|---|
| Oil and gas | 267.8 | 339.4 |
| Infrastructure | 162.3 | 160.3 |
| Renewables | 152.2 | 130.9 |
| Nautical | 52.2 | 48.8 |
| Other | 38.8 | 28.0 |
| Total | 673.3 | 707.4 |
During the first six months of 2021, Fugro recognised EUR 2.3 million in other income in connection with Covid-19 related government support in various countries (first six months of 2020: EUR 6 million).
Fugro's revenue in the second half of the year is broadly in line with the revenue generated in the first half of the calendar year (ignoring current market developments resulting from the Covid-19 pandemic).
Seabed Geosolutions had been presented as a disposal group held for sale and a discontinued operation since 30 June 2019. On 29 March 2021, Fugro reached a binding agreement with PXGEO Seismic Services Limited to sell certain assets and the related business of its non-core subsidiary Seabed Geosolutions for USD 16 million (EUR 13.4 million) in cash. The USD 16 million cash proceeds are presented as investing activities from discontinued operations in the statement of cash flows. The closing date of this transaction was 28 June 2021. On this date, Fugro derecognised the assets and liabilities that were sold to PXGEO from the statement of financial position. A gain on sale of EUR 1.9 million was recognised as a profit for the period from discontinued operations (refer to the table below).
The consolidated statement of comprehensive income below presents the discontinued operations on a standalone basis.
| (x EUR million) | Six months ended 30 June 2021 |
Six months ended 30 June 2020 |
|---|---|---|
| From discontinued operations | ||
| Revenue | 42.5 | 60.6 |
| Third party costs | (17.3) | (48.9) |
| Other income | 2.6 | 5.8 |
| Personnel expenses | (5.7) | (12.1) |
| Depreciation and amortisation | - | - |
| (Impairment)/Reversal of impairment | (2.7) | (44.3) |
| Other expenses | (10.7) | (19.1) |
| Results from operating activities (EBIT) | 8.7 | (58.0) |
| Net financing income/(costs) | 1.2 | (1.9) |
| Income tax gain/(expense) | - | (1.6) |
| Gain on sale | 1.9 | - |
| Profit/(loss) for the period from discontinued operations | 11.8 | (61.5) |
| Basic earnings per share from discontinued operations | 0.12 | (1.06) |
| Diluted earnings per share from discontinued operations | 0.12 | (1.06) |
An amount of EUR 1.9 million (gain) of cumulative foreign currency translation reserves related to Seabed Geosolutions, was recycled to profit and loss and included in the gain on sale upon disposal. Restructuring costs amounting to EUR 8.6 million were recorded in other expenses.
| (x EUR million) | Onerous contracts |
Procedures | Restructuring | Asset retirement obligations |
Total |
|---|---|---|---|---|---|
| Balance at 1 January 2021 | 1.5 | 15.5 | 5.7 | 2.6 | 25.3 |
| Provisions made during the period |
0.7 | 0.5 | 10.1 | 0.5 | 11.8 |
| Provisions used during the period |
(0.1) | (1.7) | (5.6) | - | (7.4) |
| Provisions reversed during the period |
(0.9) | (0.7) | (0.4) | - | (2.0) |
| Transfer to continued operations |
- | - | 0.8 | - | 0.8 |
| Effect of movements in foreign exchange rates |
- | 0.2 | 0.1 | - | 0.3 |
| Balance at 30 June 2021 | 1.2 | 13.8 | 10.7 | 3.1 | 28.8 |
| Non-current | - | 12.2 | - | 2.8 | 15.0 |
| Current | 1.2 | 1.6 | 10.7 | 0.3 | 13.8 |
A restructuring provision amounting to EUR 8.6 million was recognised in the first half of 2021 in connection with the sale of certain assets and the related business of the non-core subsidiary Seabed Geosolutions. The expected timing of payment of the remaining outstanding balance as at 30 June 2021 of EUR 8.3 million is EUR 6.1 million in 2021 and EUR 2.2 million in 2022.
Current income tax expense is based on the estimated taxable result for the interim periods, adjusted for significant non-deductible items in the interim periods. The group's consolidated effective tax rate for continuing operations for the six months ended 30 June 2021 is 28.6% negative (first six months of 2020: 57.9% negative). The decrease in the negative effective tax rate is mainly driven by changes in geographical composition of taxable income and losses, the recognition of previously unrecognised tax losses, certain unrecognised tax losses, and the statutory rate change in the UK. The income tax recognised in other comprehensive income for the defined benefit actuarial gains & losses, foreign currency translation differences and costs related to the issue of new shares (in 2020) amounts to a EUR 2.4 million cost (first six months of 2020: EUR 2.4 million benefit), EUR 1.7 million benefit (first six months of 2020: EUR 2.6 million cost) and EUR 3.5 million benefit (first six months of 2020: EUR nil) respectively. No further income tax has been recognised in other comprehensive income.
| (x EUR million) | Six months 2021 | Six months 2020 |
|---|---|---|
| Acquisitions cost value | 27.8 | 45.2 |
| Carrying amount of assets disposed of | 3.8 | 1.1 |
| Net gain/(loss) on disposals presented in other income | 3.2 | 0.9 |
| (x EUR million) | Six months 2021 | Six months 2020 |
|---|---|---|
| Right-of-use assets | ||
| Depreciation for the period | 13.6 | 14.4 |
| Additions for the period | 3.6 | 9.3 |
| Amounts recognised in profit and loss during the period | ||
| Interest expense on lease liabilities | 3.0 | 5.2 |
| Variable lease payments not included in measurement of lease liabilities | 0.3 | 0.0 |
| Expenses relating to short-term leases | 49.0 | 57.8 |
The group performed its annual goodwill impairment test in September 2020. The group's goodwill impairment test is based on value-in-use calculations. The methodology and key assumptions used to determine the recoverable amount for the different CGUs were disclosed in the consolidated annual financial statements 2020 together with the headroom and sensitivity analysis. The group considers the relationship between its market capitalisation and its book value, among other factors, when reviewing for indicators of impairment. No impairment triggers were identified.
| (x EUR million) | 30 June 2021 | 31 December 2020 |
|---|---|---|
| Trade receivables | 253.9 | 203.2 |
| Other receivables | 101.4 | 69.4 |
| Unbilled revenue on (completed) contracts | 196.4 | 133.7 |
| Trade and other receivables | 551.7 | 406.3 |
| Trade payables | 87.0 | 80.7 |
| Advance instalments to work in progress | 51.5 | 44.0 |
| Other payables | 225.8 | 197.5 |
| Trade and other payables | 364.3 | 322.2 |
The cash and cash equivalents in the consolidated statement of financial position include EUR 7.7 million (31 December 2020: EUR 9.3 million) of Angolan Kwanza's and EUR 5.9 million (31 December 2020: EUR 6.7 million) of Nigerian Naira where exchange controls apply (these balances are considered trapped cash). These trapped cash balances are therefore not available for general use by the other entities within the group.
On 9 February 2021, the articles of association of Fugro (as approved by the EGM on 30 November 2020) were amended, consisting of the reduction of the nominal value of the issued ordinary shares from EUR 0.10 to EUR 0.05. This reduced the total issued share capital from EUR 10,319,036.60 to EUR 5,159,518.30. As a result of this reduction of issued share capital, the amount of EUR 5,159,518.30 was added to the share premium reserve. The authorised share capital was also reduced by this amendment from EUR 30,000,000 to EUR 16,000,000, by reducing the authorised number of ordinary shares from 210,000,000 to 140,000,000.
On 28 May 2021, the listing of 103,190,366 ordinary shares on Euronext Amsterdam took place in the context of the termination of the certification of 102,654,886 ordinary shares held by the Fugro Foundation Trust Office. As a result 102,654,886 certificates listed and admitted to trading on Euronext Amsterdam ceased to exist and the
ordinary shares underlying the certificates were delivered by the Fugro Foundation Trust Office to the holders of the certificates. The listing also comprised 535,480 ordinary shares held by persons other than the Fugro Foundation Trust Office. These persons held their ordinary shares directly on the company's shareholders' register. All of the 103,190,366 ordinary shares were listed and admitted to trading on Euronext Amsterdam. The company did not receive any proceeds from the listing and the ownership or voting interest in the company was not diluted. The conversion was the final step of the 2020 refinancing abolishing the certification of the Fugro ordinary shares and followed the April 2021 AGM's approval. The issued and authorised shares are as follows:
| Numbers of shares | Ordinary shares | Preference shares |
|---|---|---|
| In issue at 1 January 2021 | 103,190,366 | - |
| Issued for cash | - | - |
| In issue at 30 June 2021 | 103,190,366 | - |
| Authorised at 30 June 2021 (nominal value ordinary and | ||
| preference shares EUR 0.05) | 140,000,000 | 180,000,000 |
The 2020 refinancing and related cash flows in 2020 were disclosed in note 5 'refinancing', note 26 'total equity' and note 29 'financial liabilities' of the annual consolidated financial statements of Fugro N.V. as at and for the year ended 31 December 2020.
| (x EUR million) | 30 June 2021 | 31 December 2020 |
|---|---|---|
| Super senior revolving credit facility of EUR 250 million | 30.1 | - |
| Super senior term loan of EUR 200 million | 197.0 | 195.1 |
| Subordinated unsecured convertible bonds of EUR 190 million (issued in 2016) | 58.4 | 57.0 |
| Subordinated unsecured convertible bonds of EUR 100 million (issued in 2017) | 90.8 | 89.5 |
| Other loans and long-term borrowings | 1.7 | 2.6 |
| Total loans and borrowings | 378.0 | 344.2 |
| Presentation in the statement of financial position: | ||
| Non-current | 306.5 | 286.2 |
| Current | 71.5 | 58.0 |
The sale of assets and the related business of Seabed Geosolutions triggered a prepayment of the term loan at the next interest maturity date (i.e. July 2021). Accordingly, an amount of EUR 12 million (sales proceeds less transaction costs) of the term loan was presented as current liability in the statement of financial position. Fugro is continually monitoring the security package including its guarantors. Fugro anticipates to make changes to the guarantor list to ensure the minimum coverage requirements are maintained.
Based on the last twelve months, Fugro complies with all principal covenant requirements as at 30 June 2021:
| (x EUR million) | Target | Actual | Headroom |
|---|---|---|---|
| Solvency ratio | >=33.33% | 42.09% | 8.76% |
| Net leverage | =<3.25:1 | 2.19 | 1.06 |
| Interest coverage | >=2.50:1 | 4.02 | 1.52 |
| Capital expenditure | =< Forecasted capex+20% | N/A | N/A |
Management performed a stress test on the debt covenants with satisfactory results. The sensitivity analysis is inherently judgemental and uncertain.
The proceeds from issue of long-term loans in the statement of cash flows (financing activities) includes an elimination for cash flows from financing activities used for discontinued operations amounting to EUR 7.9 million.
Under the long-term incentive plan, the following share-based payment arrangements exist:
No new performance options were granted since 2018. In February 2021, Fugro replaced the discretionary share option plan for eligible and selected other employees with a new discretionary restricted share unit (RSU) plan. A RSU entitles the employee to receive a number of Fugro shares. RSU's vest when an employee remains employed by Fugro or one of its subsidiaries for three years following the grant date. There are no other vesting conditions. The Board of Management and the Supervisory Board decide annually on the granting of RSU's. A total of 359,100 RSU's were granted in April 2021. In addition, in the six month period ended 30 June 2021, Fugro granted 416,000 performance shares to its employees and members of the Board of Management. The IFRS 2 expense for the six month period ended 30 June 2021 amounted to EUR 2.9 million (first six months of 2020: EUR 2.5 million).
The key management compensation, based on amounts recognised in the statement of comprehensive income, is as follows:
| (x EUR thousands) | Short-term employee benefits |
Post employment benefits |
Severance | Share-based Payment (*) |
Total six months ended 2021 |
|---|---|---|---|---|---|
| Board of Management | 870,408 | 22,613 | - | 600,887 | 1,493,908 |
| Senior managers | 1,432,887 | 72,700 | - | 344,565 | 1,850,152 |
| Executive Leadership | |||||
| Team (sub-total) | 2,303,295 | 95,313 | - | 945,452 | 3,344,060 |
| Supervisory Board | 208,833 | - | - | - | 208,833 |
| Total | 2,512,128 | 95,313 | - | 945,452 | 3,552,893 |
(*) Costs of share-based compensation are based on accounting standards (IFRS 2 expense).
| (x EUR thousands) | Short-term employee benefits |
Post employment benefits |
Severance | Share-based Payment (*) |
Total six months ended 2020 |
|---|---|---|---|---|---|
| Board of Management | 710,669 | 143,406 | - | 438,771 | 1,292,846 |
| Senior managers | 1,225,096 | 127,736 | - | 245,137 | 1,597,969 |
| Executive Leadership Team (sub-total) |
1,935,765 | 271,142 | - | 683,908 | 2,890,815 |
| Supervisory Board | 190,550 | - | - | - | 190,550 |
| Total | 2,126,315 | 271,142 | - | 683,908 | 3,081,365 |
(*) Costs of share-based compensation are based on accounting standards (IFRS 2 expense).
As per 30 June 2021, the group has a purchase commitment for property, plant and equipment of EUR 3.3 million (31 December 2020: nil). As per 30 June 2021, Fugro has issued bank guarantees to customers for an amount of EUR 86 million (31 December 2020: EUR 89 million).
The group's finance department performs the valuations of financial assets and liabilities required for financial reporting purposes. The key inputs to the valuations are directly reported to the Chief Financial Officer. Changes in fair values in level 2 and level 3 are analysed at each reporting date. The carrying amount of the financial assets and liabilities is a reasonable approximation of fair value except for the following as reported in the table below as at 30 June 2021.
| Valuation of financial assets and liabilities (x EUR million) | Carrying amount | Fair value 1 |
|---|---|---|
| Subordinated unsecured convertible bonds | 149.2 | 140.5 |
| Unrecognised gains/(losses) | (8.7) |
1 The subordinated unsecured convertible bonds are classified as level 3 in the fair value hierarchy.
No subsequent events have been identified.
To: the supervisory board and shareholders of Fugro N.V.
We have reviewed the condensed consolidated interim financial statements included in the accompanying halfyear report of Fugro N.V., based in Leidschendam, for the period from 1 January 2021 to 30 June 2021.
Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated interim financial statements of Fugro N.V. for the period from 1 January 2021 to 30 June 2021, is not prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.
The condensed consolidated interim financial statements comprise:
We conducted our review in accordance with Dutch law, including the Dutch Standard 2410, "Het beoordelen van tussentijdse financiële informatie door de accountant van de entiteit" (Review of interim financial information performed by the independent auditor of the entity). A review of interim financial information in accordance with the Dutch Standard 2410 is a limited assurance engagement. Our responsibilities under this standard are further described in the Our responsibilities for the review of the condensed consolidated interim financial statements section of our report.
We are independent of Fugro N.V. in accordance with the Verordening inzake de onafhankelijkheid van accountants bij assurance-opdrachten (ViO, Code of Ethics for Professional Accountants, a regulation with respect to independence) and other relevant independence regulations in the Netherlands. Furthermore we have complied with the Verordening gedrags- en beroepsregels accountants (VGBA, Dutch Code of Ethics).
We believe the assurance evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion.
Management is responsible for the preparation and presentation of the condensed consolidated interim financial statements in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the European Union. Furthermore, management is responsible for such internal control as it determines is necessary to enable the preparation of the condensed consolidated interim financial statements that are free from material misstatement, whether due to fraud or error.
The supervisory board is responsible for overseeing the financial reporting process.
Our responsibility is to plan and perform the review in a manner that allows us to obtain sufficient and appropriate assurance evidence for our conclusion.
The level of assurance obtained in a review engagement is substantially less than the level of assurance obtained in an audit conducted in accordance with the Dutch Standards on Auditing. Accordingly, we do not express an audit opinion.
We have exercised professional judgement and have maintained professional skepticism throughout the review, in accordance with Dutch Standard 2410.
Our review included among others:
Amsterdam, 28 July 2021
Ernst & Young Accountants LLP
Signed by J.J. Vernooij
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