KBC Ancora SA — Earnings Release 2014

Aug 29, 2014

Regulated information, Leuven, 29 August 2014 (17.40 hrs CEST)

KBC Ancora records annual result of EUR 26.4 million

Leuven, 29 August 2014 (17.40 hrs CEST) – KBC Ancora recorded a profit of EUR 26.4 million in the financial year 2013/2014, equivalent to EUR 0.34 per share. This compares with a profit of EUR 50.8 million in the previous financial year. The result in the second half of the financial year was EUR -10.6 million, or EUR -0.14 per share.

The profit for the year was due principally to non-recurring income from the sale of KBC Group shares, plus the repurchase of a loan in November 2013. As announced earlier, KBC Ancora will not be distributing a dividend in respect of the financial year 2013/2014.

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 2014, subject to the approval of the KBC Ancora General Meeting of Shareholders to be held on 31 October 2014.

Abridged financial summary and notes1

Results for the financial year

	Financial year	2013/2014	Financial year	2012.2013
	(x EUR 1, 000)	per share (in EUR)	(x EUR 1,000)	per share (in EUR)
Recurring financial profit/loss	-7,413	-0.09	53,210	0.68
Other recurring profit/loss	-2,149	-0.03	-2,409	-0.03
Profit/loss from capital operations	35,955	0.46	0	0.00
Extraordinary profit/loss	0	0.00	0	0.00
Result before tax	26,393	0.34	50,800	0.65
Result after tax	26,393	0.34	50,800	0.65
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.

The positive annual result recorded by KBC Ancora (EUR 26.4 million) was due in large part to the result on the sale of 4.7 million KBC Group shares (EUR 36.0 million) and the result on the repurchase of a loan of EUR 175 million at a discount of 9% to the nominal value (EUR 15.8 million) in November 2013. Expenses consisted mainly of the usual operating costs (EUR 2.3 million) and interest charges (EUR 23.2 million).

Developments in the last six months of the financial year 2013/2014

Update of KBC Group dividend policy

Following the publication of its annual results, KBC Group announced on 13 February 2014 that it would not be paying a dividend in respect of the financial year 2013. KBC Group aims to distribute a dividend of up to EUR 2.00 per share in respect of the financial year 2014 (provided the available profit for the financial year permits this) and will not distribute a dividend in respect of the financial year 2015.

Following the Investor Day on 17 June 2014, KBC Group announced that with effect from the financial year 2016, it would aim for a dividend payout ratio (including the coupon on the government aid and outstanding Additional Tier 1 instruments) of at at least 50%.

Participating interest in KBC Group, net debt position and net asset value

KBC Ancora did not buy or sell any KBC Group shares in the second half of the financial year, and holds 77,516,380 KBC Group shares.

The net asset value of the KBC Ancora share corresponds to 0.99 times the price of the KBC Group share, less the net debt per share. KBC Ancora's net debt position amounted to EUR 5.14 per share as at 30 June 2014, compared with EUR 5.08 per share on 31 March 2014.

Based on the price of the KBC Group share on 30 June 2014 (EUR 39.75), the net asset value of one KBC Ancora share amounted to EUR 34.21, and the KBC Ancora share (EUR 22.065) was trading at a discount of 35.5% to the net asset value.

Based on the closing price of the KBC Group share on 28 August 2014 (EUR 43.365) the net asset value of one KBC Ancora share amounted to EUR 37.79, and the KBC Ancora share (EUR 25.09) was trading at a discount of 33.6% to the net asset value.

2H FY (x EUR 1,000) 2013/2014 per share (in EUR) 2H FY (x EUR 1,000) 2012/2013 per share (in EUR) Recurring financial profit/loss -9,632 -0.12 67,726 0.86 Other recurring profit/loss -969 -0.01 -933 -0.01 Profit/loss from capital operations 0 0.00 0 0.00 Extraordinary profit/loss 0 0.00 0 0.00 Result before tax -10,600 -0.14 66,794 0.85 Result after tax -10,600 -0.14 66,794 0.85

Result for the second half of the financial year 2013/2014

In the second half of the year under review, KBC Ancora recorded a loss after tax of EUR 10.6 million. In the same period in the previous financial year, KBC Ancora recorded a profit of EUR 66.8 million.

As KBC Group did not distribute a dividend in respect of the financial year 2013, KBC Ancora recorded a negative recurring financial result of EUR 9.6 million in the second half of the year under review. This result was made up almost entirely of interest charges on debt amounting to EUR 9.6 million. In the same period in the previous financial year, KBC Ancora recorded a positive result of EUR 67.7 million due to the distribution by KBC Group of a dividend of EUR 1.00 per share in respect of the financial year 2012.

The other recurring profit/loss amounted to EUR -1.0 million. Of this total, EUR 0.8 million relates to costs incurred within the cost-sharing association with Cera. Other costs relate among other things to listing fees and management costs.

Balance sheet as at 30 June 2014

(x EUR 1,000)	30.06.2014	30.06.2013	30.06.2012
BALANCE SHEET TOTAL	2,441,805	2,589,823	2,589,825
Assets
Fixed assets	2,441,766	2,589,816	2,589,816
Financial fixed assets	2,441,766	2,589,816	2,589,816
Current assets	39	7	9
Liabilities
Capital and reserves	2,038,976	2,012,583	1,961,782
Issued capital	2,021,871	2,021,871	2,021,871
Statutory reserves	855	0	0
Unavailable reserves	16,249	0	0
Earnings carried forward	0	-9,289	-60,089
Creditors	402,830	577,241	628,043
Amounts falling due after more than one year	375,000	550,000	550,000
Amounts falling due within one year	26,063	23,278	74,117
Accruals and deferred income	1,766	3,963	3,926

Total assets stood at EUR 2.44 billion on 30 June 2014, a reduction of EUR 148 million compared with the previous financial year. This reduction was due mainly to the sale of 4.7 million KBC Group shares in November 2013 and the subsequent repurchase of a loan totalling EUR 175 million.

The number of KBC Group shares held by KBC Ancora fell by 4.7 million in the financial year under review. As at the balance sheet date, KBC Ancora had 77,516,380 KBC Group shares in portfolio, with a book value of EUR 31.5 per share. The closing price of the KBC Group share on the balance sheet date was EUR 39.75.

Despite the fact that, after setting off the loss carried forward from the previous financial year (EUR -9.3 million) against the profit recorded for the financial year (EUR 26.4 million), KBC Ancora had an accounting profit to be appropriated of EUR 17.1 million, it is proposed that no dividend be distributed in respect of the year under review. This is because the result for the financial year 2013/2014 includes a partial reversal of a substantial value write-down that was applied on 31 March 2009. Steps were taken at that time to neutralise the negative impact of this write-down on the ability of KBC Ancora to distribute dividends. It was announced at the time that the impact of any later full or partial reversal of the write-down would also be neutralised (see KBC Ancora press release dated 4 May 2009).

A proposal will therefore be submitted to the General Meeting of Shareholders that the proceeds from the sale of the 4.7 million KBC Group shares in November 2013, amounting to a net total of EUR 35,955 million, should not be distributed as dividend. Specifically, the Meeting will be invited to add the balance of the result for the financial year (EUR 26.4 million), after set-off of

the loss carried forward from the previous financial year (EUR -9.3 million) and the formation of the legal reserve (EUR 0.9 million), amounting to EUR 16.2 million, to the unavailable reserves. When appropriating a next available profit, KBC Ancora will propose adding the remaining amount (EUR 19.7 million) to the unavailable reserves.

A proposal will thus be submitted to the General Meeting of Shareholders that, after set-off of the result for the financial year (EUR 26.4 million) against the loss carried forward from the previous financial year (EUR -9.3 million), an amount of EUR 0.9 million be added to the legal reserve and that the balance (EUR 16.2 million) be added to the unavailable reserves.

Notes on anticipated developments in the financial year 2014/2015

Costs within the cost-sharing association with Cera are likely to total approximately EUR 1.6 million, in line with the previous financial year. Total interest charges for the financial year 2014/2015 are estimated at approximately EUR 20 million. Other operating costs are likely to be around EUR 0.5 million.

In its press release dated 13 February 2014, KBC Group stated its intention of distributing a gross dividend amounting to a maximum of EUR 2.00 per share based on the profit available for distribution generated in the financial year 2014.

Information on the external audit of the annual accounting data

The auditor, KPMG Réviseurs d'entreprises, represented by Olivier Macq, has issued an unqualified opinion 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

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KBC Ancora is a listed company which holds 18.6% 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:

30 September 2014 Annual Report 2013/2014 available and convocation to Annual General Meeting of Shareholders 31 October 2014 Annual General Meeting of Shareholders 30 January 2015 Interim financial report (1H) 28 August 2015 Annual press release for the financial year 2014/2015

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 279672 e-mail: jan.bergmans@kbcancora.be