KBC Ancora SA — Earnings Release 2011

Sep 1, 2011

Regulated information, Leuven, 1 September 2011 (17.40 hrs CEST)

KBC Ancora records annual result of EUR 30.2 million

Leuven, 1 September 2011 (17.40 hrs CEST) – KBC Ancora recorded a result of EUR 46 million in the second half of the financial year 2010/2011, equivalent to EUR 0.59 per share. KBC Ancora recorded a positive result on the full financial year 2010/2011 of EUR 30.2 million, or EUR 0.39 per share, compared with a loss of EUR 30.5 million in the previous financial year. As announced earlier, KBC Ancora will not be distributing a dividend for the financial year 2010/2011. Both the amount of debt and the loss carried forward reduced by EUR 30.2 million compared with the end of the previous financial year.

The Board of Directors of Almancora Société de gestion SA, statutory manager of KBC Ancora SCA, hereby announces the annual figures for the financial year ended 30 June 2011, subject to the approval of the KBC Ancora General Meeting of Shareholders to be held on 28 October 2011.

Abridged financial summary and notes1

Results for the financial year

	FY 2010/2011 per share		FY 2009/2010 per share
	(x EUR 1,000)	(EUR)	(x EUR 1,000)	(EUR)
Recurring financial profit/loss	32,251	0.41	-28,203	-0.36
Other recurring profit/loss	-2,084	-0.03	-2,257	-0.03
Profit/loss from capital operations	0	0.00	0	0.00
Extraordinary profit/loss	0	0.00	0	0.00
Result before taxes	30,167	0.39	-30,461	-0.39
Result after taxes	30,167	0.39	-30,461	-0.39
Number of shares in issue*		78,30,314		78,301,314

* No instruments have been issued which could lead to dilution.

¹ KBC Ancora's reporting is based on Belgian GAAP.

Developments in the last six months of the financial year 2010/2011

KBC Group dividend received on 6 May 2011

KBC Ancora received a dividend on 6 May 2011 in respect of its participating interest of 82,216,380 KBC Group shares. The dividend amounted to EUR 0.75 per KBC Group share, which means that KBC Ancora received a total of EUR 61.7 million.

Net asset value of KBC Ancora

KBC Ancora did not buy or sell any KBC Group shares in the second half of the financial year, and holds 82,216,380 KBC Group shares.

The net asset value of the KBC Ancora share corresponds to 1.05 times the price of the KBC Group share, less the net debt per share. KBC Ancora's net debt position amounted to EUR 7.63 per share as at 30 June 2011, compared with EUR 8.02 per share as at 30 June 2010 and EUR 8.32 per share on 31 March 2011.

Based on the closing price of the KBC Group share on 30 June 2011 (EUR 27.10), the net asset value of one KBC Ancora share amounted to EUR 20.82, and the KBC Ancora share price (EUR 12.71) was trading at a discount of 39% to the net asset value.

Based on the closing price of the KBC Group share on 31 August 2011 (EUR 19.70) the net asset value of one KBC Ancora share amounted to EUR 13.05, and the KBC Ancora share price (EUR 8.54) was trading at a discount of 34.6% to the net asset value.

	2H FY 2010/2011		2H FY 2009/2010
	(x EUR 1,000)	per share (EUR)	(x EUR 1,000)	per share (EUR)
Recurring financial profit/loss	46,923	0.60	-14,110	-0.18
Other recurring profit/loss	-953	-0.01	-1,031	-0.01
Profit/loss from capital operations	0	0.00	0	0.00
Extraordinary profit/loss	0	0.00	0	0.00
Result before taxes	45,970	0.59	-15,140	-0.19
Result after taxes	45,970	0.59	-15,140	-0.19

Result for the second half of the financial year 2010/2011

The result after tax in the second half of the financial year 2010/2011 amounted to EUR 46 million. In the same period in the previous financial year, KBC Ancora recorded a loss of EUR 15.1 million.

As KBC Group distributed a dividend on 6 May 2011, KBC Ancora closed the second half of the financial year 2010/2011 with a positive recurring financial result totalling EUR 46.9 million (compared with a recurring result of EUR -14.1 million in the same period in the previous financial year).

In addition to the dividend received in respect of the participating interest in KBC Group (EUR 61.7 million), this result was almost entirely made up of interest charges in respect of debt amounting to EUR 14.7 million.

The other recurring financial result amounted to EUR -1 million, in line with the result in the same period in the previous financial year. Of this total, EUR 0.7 million relates to costs incurred within the cost-sharing association with Cera. Other costs relate among other things to listing fees and management costs.

(x EUR 1,000)	30.06.2011	30.06.2010	30.06.2009
BALANCE SHEET TOTAL	2,589,828	2,589,834	2,589,845
Assets
Fixed assets	2,589,816	2,589,816	2,589,816
Financial fixed assets	2,589,816	2,589,816	2,589,816
Current assets	12	18	29
Liabilities
Capital and reserves	1,992,211	1,962,044	1,992,505
Issued capital	2,021,871	2,021,871	3,189,854
Statutory reserves	0	0	60,455
Earnings carried forward	-29,660	-59,827	-1,257,804
Creditors	597,617	627,790	597,340
Amounts falling due after more than	550,000	550,000	550,000
one year
Amounts falling due within one year	43,694	73,864	43,557
Accruals and deferrals	3,922	3,926	3,782

Balance sheet as at 30 June 2011

Total assets stood at EUR 2.59 billion on 30 June 2011, virtually unchanged compared with the previous financial year.

The number of KBC Group shares held by KBC Ancora remained unchanged in the financial year 2010/2011. As at the balance sheet date, KBC Ancora had 82,216,380 KBC Group shares in portfolio. The book value of these shares was EUR 31.5 per share. The Board of Directors of

Almancora Société de gestion SA, statutory manager of KBC Ancora, decided to maintain the book value of these shares, in view of:

• the long-term nature of KBC Ancora's participating interest in KBC Group, given its key role in the shareholder stability of the KBC group;
• the fact that the underlying results of the KBC group remain satisfactory despite the difficult market conditions.

The profit in the financial year 2010/2011 (EUR 30.2 million) has been added to the earnings carried forward (EUR -59.8 million), which means that KBC Ancora closed the financial year 2010/2011 with a carried-forward loss of EUR 29.7 million and capital and reserves totalling EUR 1,992.2 million.

As KBC Ancora is not distributing a dividend in view of the outstanding carried-forward loss, the net operating cash flow was used to reduce the financial debt by EUR 30.2 million to EUR 593.5 million.

Notes on anticipated developments in the financial year 2011/2012

Costs within the cost-sharing association with Cera are likely to total approximately EUR 1.8 million, in line with the previous financial year. The total interest charge for the financial year 2011/2012 is estimated at approximately EUR 30 million. Other operating costs are likely to be around EUR 0.5 million.

Information on the external audit of the annual accounting data

The accounting data have been scrutinised by the auditor, who did not identify any elements that could give rise to material changes to those data for the period ending 30 June 2011. The auditor has issued an unqualified Auditor's Report.

The auditor has confirmed that the accounting information contained in this press release corresponds with the information contained in the financial statements prepared by the Board of Directors.

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KBC Ancora is a listed company which holds approximately 23% of the shares in KBC Group and which together with Cera, MRBB and the Other Permanent Shareholders is responsible for the shareholder stability and further development of the KBC group. As core shareholders of KBC Group, these parties have signed a shareholder agreement to this effect.

Financial calendar

12 October 2011: Annual report 2010/2011 available 28 October 2011: Ordinary and Extraordinary General Meeting of Shareholders 2 November 2011 (17.40 hrs CET): Quarterly statement (1Q) 27 January 2012 (17.40 hrs CET): Interim financial report (1H) 4 May 2012 (17.40 hrs CEST): Quarterly statement (3Q) 31 August 2012 (17.40 hrs CEST): Annual press release

This press release is available in Dutch, French and English on the website www.kbcancora.be.

KBC Ancora Investor Relations & Press contact: Jan Bergmans tel.: +32 (0)16 27 96 72 fax: +32 (0)16 27 96 94 e-mail: jan.bergmans@kbcancora.be