KBC Ancora SA — Interim / Quarterly Report 2012

Jan 25, 2013

Regulated information, Leuven, 25 January 2013 (17.40 hrs CET)

Interim report on the first half of the financial year 2012/2013

Leuven, 25 January 2013 (17.40 CET) – KBC Ancora recorded a negative result of EUR 16.0 million for the first half of the financial year 2012/2013, compared with a negative result of EUR 15.8 million for the same period in the previous financial year. Net debt increased to EUR 8.22 per share.

Abridged financial summary and notes1

	1H fin. year 2012/2013		1H fin. year	2011/2012
		per share		per share
	(x EUR 1,000)	(EUR)	(x EUR 1,000)	(EUR)
Recurring financial profit/loss	-14,517	-0.19	-14,653	-0.19
Other recurring profit/loss	-1,477	-0.02	-1,098	-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	-15,993	-0.20	-15,751	-0.20
Result after taxes	-15,993	-0.20	-15,751	-0.20
Number of shares in issue*		78,301,314		78,301,314

Results for the first half of the financial year 2012/2013

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

KBC Ancora recorded a negative result of EUR 16.0 million in the first six months of the current financial year, or EUR 0.20 per share, compared with a negative result of EUR 15.8 million in the same period in the previous financial year.

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

See Appendix for a detailed balance sheet and profit and loss account.

Balance sheet as at 31 December 2012

31.12.2012	*30.06.2012
2,589,832	2,589,825
2,589,816	2,589,816
2,589,816	2,589,816
16	9
1,945,789	1,961,782
2,021,871	2,021,871
0	0
-60,089	-60,089
-15,993	0
644,043	628,043
	550,000
75,723	74,117
18,320	3,926
	550,000

* The balance sheet as at 30.06.12 is shown after appropriation of profit.

The balance sheet total remained unchanged over the past six months (EUR 2,589.8 million).

The number of shares held by KBC Ancora in KBC Group remained unchanged.

On the liabilities side of the balance sheet, capital and reserves fell by an amount equal to the negative result over the first six months of the current financial year (EUR 16.0 million). At the same time, liabilities increased by a corresponding amount.

The increase in liabilities is due to the (apportionment of) interest charges payable and KBC Ancora's operating costs.

Interim report on the first six months of the current financial year 2012/2013

Notes on the first half of the current financial year 2012/2013

Results for the first six months of the financial year 2012/2013

KBC Ancora recorded a negative result (after taxes) of EUR 16.0 million in the first half of the current financial year, compared with a negative result of EUR 15.8 million in the same period in the previous financial year.

The principal component in this result was the cost of debt (EUR 14.5 million). The interest charges were slightly lower than in the same period in the preceding financial year.

As well as by the cost of debt, the result was influenced by the operating costs. Those costs amounted to EUR 1.5 million, EUR 0.4 million more than in the same period in the previous financial year. This increase was due primarily to costs incurred in the context of the capital increase at KBC Group.

The recurring operating costs consisted primarily of costs incurred within the cost-sharing association between Cera and KBC Ancora (EUR 0.8 million). In addition, there were the usual costs such as listing costs and management costs.

No income was realised.

Capital increase at KBC Group

KBC Ancora fully supported the capital increase announced by KBC Group on 10 December 2012, but did not participate in it itself in view of its existing debt position. The capital increase will enable KBC Group to accelerate the repayment of a substantial portion of the core capital instruments to the authorities and make it one of the best capitalised European banks. The issue of 58.8 million new KBC Group shares reduced the participating interest of KBC Ancora in KBC Group from 22.97% to 19.72%.

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

The number of KBC Group shares in portfolio remained unchanged in the past six months, at 82,216,380. KBC Ancora holds 1.05 KBC Group shares per KBC Ancora share in issue.

The average book value of the KBC Group shares is EUR 31.5 per share. These shares are included under financial fixed assets. 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 31 December 2012, 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.

KBC Ancora's net debt increased to EUR 8.22 per share as at 31 December 2012, EUR 0.10 higher than on 30 September 2012 and EUR 0.20 more than on 30 June 2012.

The net asset value of one KBC Ancora share as at 31 December 2012 was thus equivalent to the price of 1.05 KBC Group shares less EUR 8.22.

Based on the closing price of the KBC Group share on 31 December 2012 (EUR 26.15), the net asset value of one KBC Ancora share amounted to EUR 19.23, and the KBC Ancora share price (EUR 12.95) was trading at a discount of 33% to the net asset value.

Based on the closing price of the KBC Group share on 24 January 2013 (EUR 27.775) the net asset value of one KBC Ancora share amounted to EUR 20.94, and the KBC Ancora share (EUR 14.47) was trading at a discount of 31% to the net asset value.

Declaration by the responsible individuals

"We, the members of the Board of Directors of Almancora Société de gestion, statutory manager of KBC Ancora SCA, hereby jointly declare that, in so far as we are aware,

• a) the abridged financial summaries, drawn up in accordance with the applicable standards for financial statements, present a true and fair picture of the capital position, financial position and results of KBC Ancora,
• b) the interim financial report presents a true and fair view of the key events and principal transactions with affiliated parties during the first six months of the current financial year and of their impact on the abridged financial summaries, as well as a description of the principal risks and uncertainties for the remaining months of the financial year."

Information on the external audit

Report by the auditor on the review of the abridged interim financial information for the period of six months ended on 31 December 2012

Introduction

We have performed a review of the interim financial statements of KBC Ancora SCA as at 31 December 2012, showing a balance sheet total of EUR 2,589.83 million and a loss of EUR 15.99 million. The Board of Directors is responsible for drawing up and publishing the interim financial statements in accordance with accounting practices applicable in Belgium. Our responsibility is to formulate a conclusion on the interim financial statements based on our review.

Scope of the review

We carried out our review in accordance with ISRE 2410: 'Review of interim financial statements performed by the independent auditor of the entity'. A review of interim financial statements consists in requesting information, principally from those with financial and accounting responsibility, performing financial analyses and other review procedures. The scope of a review is considerably more limited than that of an audit performed in accordance with the International Standards on Auditing (ISA). Our review therefore does not enable us to obtain the assurance that we have taken cognisance of all matters of material interest which might be identified as a result of an audit. Consequently, we do not issue an audit opinion here.

Conclusion

Nothing came to our attention during our review which suggests to us that the interim financial statements for the period of six months ended on 31 December 2012 have not been drawn up in all material respects in accordance with accounting practices applicable in Belgium.

Without prejudice to our opinion as set out above, we would draw attention to the fact that the value of the assets of KBC Ancora SCA, as well as its liquidity and results, are dependent on developments in relation to KBC Group, and therefore also on the specific risks to which KBC Group is exposed.

Kontich, 25 January 2013 KPMG Réviseurs d'entreprises Auditors Represented by Erik Clinck Auditor

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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

3 May 2013 Quarterly statement (3Q) 30 August 2013 Annual press release 31 October 2013 General Meeting of Shareholders

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

Appendix: Detailed balance sheet and profit and loss account with comparative figures

(x EUR 1,000)	31.12.2012	30.06.2012
BALANCE SHEET TOTAL	2,589,832	2,589,825
Assets
Fixed assets	2,589,816	2,589,816
Financial fixed assets	2,589,816	2,589,816
Companies with which there is a	2,589,816	2,589,816
participatory relationship Participating interests	2,589,816	2,589,816
Current assets	16	9
Other receivables	11	0
Cash at bank and in hand	4	5
Accruals and deferred income	0	4
Liabilities
Capital and reserves	1,945,789	1,961,782
Capital	2,021,871	2,021,871
Issued capital	2,021,871	2,021,871
Reserves	0	0
Statutory reserves	0	0
Earnings carried forward	-60,089	-60,089
Profit/loss for the period	-15,993
Creditors	644,043	628,043
Amounts falling due after more than one	550,000	550,000
year Financial liabilities	550,000	550,000
Credit institutions	550,000	550,000
Amounts falling due within one year	75,723	74,117
Financial liabilities	75,370	73,862
Credit institutions	75,370	73,862
Trade creditors	302	198
Suppliers	302	198
Liabilities in respect of taxes,
remuneration and social security costs	0	0
Taxes	0	0
Other creditors	52	57
Accruals and deferred income	18,320	3,926

(x EUR 1,000)	01.07.2012- 31.12.2012	01.07.2011- 31.12.2011
RESULTS	-15,993	-15,751
Expenses	15,993	15,751
A. Cost of creditors	14,516	14,652
B. Other financial expenses	0	0
C. Services and sundry goods	1,476	1,098
E. Sundry current costs	0	1
Income	0	0
A. Income from financial fixed assets	0	0
1. Dividend	0	0
B. Income from current assets	0	0
E. Other current income	0	0