KBC Ancora SA — Earnings Release 2013

Aug 30, 2013

Regulated information, Leuven, 30 August 2013 (17.40 hrs CEST)

KBC Ancora records annual result of EUR 50.8 million

Leuven, 30 August 2013 (17.40 hrs CEST) – KBC Ancora recorded a profit of EUR 50.8 million in the financial year 2012/2013, equivalent to EUR 0.65 per share. This compares with a loss of EUR 30.4 million in the previous financial year. The result in the second half of the financial year was EUR 66.8 million, or EUR 0.85 per share. As announced previously, KBC Ancora will not distribute a dividend in respect of the financial year just ended, as the profit for the year is insufficient to completely eliminate the loss carried forward from the previous financial year.

The Board of Directors of Almancora Société de gestion, statutory manager of KBC Ancora SCA, hereby announces the annual figures for the financial year ended 30 June 2013, subject to the approval of the KBC Ancora General Meeting of Shareholders to be held on 25 October 2013.

Abridged financial summary and notes¹

Results for the financial year

	FY 2012/2013		FY 2011/2012
	(x EUR 1,000)	per share (EUR)	(x EUR 1,000)	per share (EUR)
Recurring financial profit/loss	53,210	0.68	-28,381	-0.36
Other recurring profit/loss	-2,409	-0.03	-2,048	-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	50,800	0.65	-30,429	-0.39
Result after taxes	50,800	0.65	-30,429	-0.39
Number of shares in issue*		78,301,314		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 2012/2013

KBC Group dividend

On 16 May 2013, KBC Group distributed a dividend of EUR 1.00 per share in respect of the financial year 2012. KBC Ancora accordingly received a total of EUR 82.2 million in respect of its participating interest of 82,216,380 KBC Group shares.

The net cash position in the last six months of the financial year was used to reduce the shortterm debt.

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 as at 30 June 2013 amounted to EUR 7.37 per share, compared with EUR 8.02 per share as at 30 June 2012 and EUR 8.32 per share on 31 March 2013.

Based on the price of the KBC Group share on 30 June 2013 (EUR 28.605), the net asset value of one KBC Ancora share amounted to EUR 22.66, and the KBC Ancora share (EUR 15.00) was trading at a discount of 34% to the net asset value.

Based on the closing price of the KBC Group share on 29 August 2013 (EUR 34.005), the net asset value of one KBC Ancora share amounted to EUR 28.33 and the KBC Ancora share (EUR 17.53) was trading at a discount of 38% to the net asset value.

Developments after the close of the financial year 2012/2013

New lender for KBC Ancora

Since the beginning of July 2013, KBC Ancora has a new lender for EUR 325 million of its debt, which had previously been provided by KBC Bank. The maturity dates and interest rates applying for these loans remain unchanged. The loans concerned fall due in 2017 (EUR 175 million), 2022 (EUR 50 million) and 2027 (EUR 100 million), respectively. Collateral was provided for these loans. The fact that these loans are no longer being provided by KBC Bank has had a positive impact on KBC's capital position.

Result for the second half of the financial year 2012/2013

	2H FY 2012/2013		2H FY 2011/2012
	(x EUR 1,000)	per share (EUR)	(x EUR 1,000)	per share (EUR)
Recurring financial profit/loss	67,726	0.86	-13,728	-0.18
Other recurring profit/loss	-933	-0.01	-950	-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	66,794	0.85	-14,678	-0.19
Result after taxes	66,794	0.85	-14,678	-0.19

The result after tax in the second half of the year amounted to EUR 66.8 million. In the same period in the previous financial year, KBC Ancora recorded a loss of EUR 14.7 million.

As KBC Group distributed a dividend of EUR 1.00 per share on 16 May 2013, KBC Ancora closed the second half of the financial year 2012/2013 with a positive recurring financial result of EUR 67.7 million (compared with a negative recurring financial result of EUR 13.7 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 82.2 million), this result was almost entirely made up of interest charges on debt amounting to EUR 14.5 million.

The other recurring profit/loss amounted to EUR -0.9 million. Of this total, EUR 0.7 million relates to costs incurred within the cost-sharing association with Cera. Other costs related among other things to listing fees and management costs.

Balance sheet as at 30 June 2013

(x EUR 1,000)	30.06.2013	30.06.2012	30.06.2011
BALANCE SHEET TOTAL	2,589,823	2,589,825	2,589,828
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	7	9	12
Liabilities
Capital and reserves	2,012,583	1,961,782	1,992,211
Issued capital	2,021,871	2,021,871	2,021,871
Statutory reserves	0	0	0
Earnings carried forward	-9,289	-60,089	-29,660
Creditors	577,241	628,043	597,617
Amounts falling due after more than one year	550,000	550,000	550,000
Amounts falling due within one year	23,278	74,117	43,694
Accruals and deferred income	3,963	3,926	3,922

Total assets stood at EUR 2.59 billion on 30 June 2013, virtually unchanged compared with the previous financial year.

The number of KBC Group shares held by KBC Ancora remained unchanged in the year under review. As at the balance sheet date, KBC Ancora had 82,216,380 KBC Group shares in portfolio, with a book value of EUR 31.5 per share. The Board of Directors of Almancora Société de gestion, statutory manager of KBC Ancora, decided to maintain the book value of these shares as at 30 June 2013, 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 price of the KBC Group share stood at EUR 28.605 on the balance sheet date, but has increased further in the period July-August 2013 following the publication of KBC Group's interim results on 8 August 2013. The price of the KBC Group share on 29 August 2013 was EUR 34.005.

The profit in the financial year 2012/2013 (EUR 50.8 million) will be added to the profit/loss carried forward as at year-end (EUR -60.1 million), which means that KBC Ancora closed the financial year 2012/2013 with a carried-forward loss of EUR 9.3 million and capital and reserves totalling EUR 2,012.6 million.

As announced earlier, KBC Ancora will not distribute a dividend for the financial year 2012/2013.

Notes on anticipated developments in the financial year 2013/2014

Costs within the cost-sharing association with Cera are likely to total approximately EUR 1.6 million, in line with the previous financial year. The total interest charge for the financial year 2013/2014 is estimated at approximately EUR 30 million. Other operating costs are likely to be around EUR 0.5 million.

In its press release dated 14 February 2013, KBC Group announced its intention not to distribute a dividend in 2014 in respect of the financial year 2013.

Information on the external audit of the annual accounting data

---

The auditor, KPMG Réviseurs d'entreprises, represented by Erik Clinck, has issued an unqualified opinion with explanatory note on the financial statements and has confirmed that the accounting data included in this press release contain no obvious inconsistencies compared with the financial statements.

KBC Ancora is a listed company which holds almost 20% 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

25 September 2013	Annual Report 2012/2013 available and convocation to Annual General
	Meeting of Shareholders
25 October 2013	Annual General Meeting of Shareholders
29 October 2013	Interim statement (1Q)
31 January 2014	Interim financial report (1H)
2 May 2014	Interim statement (3Q)
29 August 2014	Annual press release for the financial year 2013/2014

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