AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

What's cooking? (formerly: Ter Beke)

Quarterly Report Sep 2, 2016

4009_ir_2016-09-02_f69914b1-b894-470c-af5d-e957a0066c7b.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

HALF YEAR FINANCIAL REPORT FIRST SEMESTER 2016

TABLE OF CONTENTS*

    1. Condensed consolidated financial statements Ter Beke group per 30 June 2016;
    1. Notes to the condensed consolidated financial statements;
    1. Interim semester report;
    1. Declaration of the responsible persons;
    1. Report from the Statutory Auditor on the half year information;
    1. Contacts;
    1. Financial calendar;
    1. Ter Beke in brief.

*The Dutch version of this report is considered to be the official version

1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TER BEKE GROUP PER 30 JUNE 2016

CONDENSED CONSOLIDATED BALANCE SHEET
-- -- -------------------------------------- -- --
in '000 EUR 30/06/2016 31/12/2015
Assets
Non-current assets 148.448 149.201
Goodwill 35.204 35.204
Intangible non-current assets 5.568 5.410
Tangible non-current assets 83.365 85.005
Interests using equity method 12.594 12.635
Loans to joint venture 1.520 850
Other long-term receivables 97 97
Long-term interest-bearing receivables 10.100 10.000
Current assets 95.068 92.327
Stocks 21.741 20.421
Trade and other receivables 58.756 64.860
Cash and cash equivalents 14.571 7.046
Total assets 243.516 241.528
Liabilities
Shareholders' equity 109.630 108.843
Capital and issue premiums 53.191 53.191
Reserves 56.439 55.652
Non-controlling interests 0 0
Deferred tax liabilities 4.665 5.852
Long-term liabilities 42.269 43.455
Provisions 4.338 3.062
Long-term interest-bearing liabilities 37.931 40.393
Other long-term liabilities 0 0
Short-term liabilities 86.952 83.378
Short-term interest-bearing obligations 10.770 10.965
Trade liabilities and other debts 60.837 58.830
Social liabilities 11.164 10.685
Tax liabilities 4.181 2.898
Total liabilities 243.516 241.528

CONDENSED CONSOLIDATED INCOME STATEMENT

in '000 EUR 30/06/2016 30/06/2015
Revenu 204.683 191.409
Trade goods, raw and auxiliary materials -107.709 -99.081
Services and miscellaneous goods -39.339 -38.312
Wages and salaries -38.075 -38.017
Depreciation costs -8.754 -8.092
Impairments, write-offs and provisions -1.175 66
Other operating income and expenses -10 -506
Result of operating activities 9.621 7.467
Financial income 442 131
Financial expenses -568 -1.029
Result of operating activities after net financing expenses 9.495 6.569
Tax -2.339 -1.799
Result after tax before share in the result of enterprises
accounted for using the equity method
7.156 4.770
Share in enterprises accounted for using the equity method 49 -389
Profit of the period 7.205 4.381
Basic profit per share 4,16 2,53
Diluted profit per share 4,16 2,53

CONDENSED COMPREHENSIVE INCOME

in '000 EUR 30/06/2016 30/06/2015
Profit of the reported period 7.205 4.381
Other elements of the result recognised in the shareholders' equity
Other elements of the result that can subsequently be reclassified to the
results
Translation differences -248 179
Cash flow hedge 16 5
Other elements of the result that cannot subsequently be reclassified to the
results
Revaluation of net liabilities regarding defined
benefit pension schemes -120 -34
Related deferred taxes -2 12
Comprehensive income 6.851 4.543

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

in '000 EUR Capital Capital Share
reserves premiums
Reserved
profits
Translation
differences
Total Number
of shares
Balance on 31 December 2014 4.903 0 48.288 49.795 -171 102.815 1.732.621
Equity increase 0
Treasury share reserve 0
Dividend -4.331 -4.331
Result of the period 4.381 4.381
Other elements of the
comprehensive result of the period
Comprehensive result for the period
-17
4.364
179
179
162
4.543
Movements via reserves
-Result from treasury shares -10 -10
Balance on 30 June 2015 4.903 0 48.288 49.818 8 103.017 1.732.621
Equity increase 0
Treasury share reserve 0
Dividend 0
Result of the period 5.917 5.917
Other elements of the
comprehensive result of the period -11 -90 -101
Comprehensive result for the period 5.906 -90 5.816
Movements via reserves
-Result from treasury shares 10 10
Balance on 31 December 2015 4.903 0 48.288 55.734 -82 108.843 1.732.621
Equity increase 0
Treasury share reserve 0
Dividend -6064 -6064
Result of the period 7205 7205
Other elements of the
comprehensive result of the period -106 -248 -354
Comprehensive result for the period 7.099 -248 6.851
Movements via reserves
-Result from treasury shares 0
Balance on 30 June 2016 4.903 0 48.288 56.769 -330 109.630 1.732.621

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

in '000 EUR 30/06/2016 30/06/2015
Operating activities
Result before taxes 9.495 6.569
Interest 480 548
Depreciation 8.754 8.092
Write-downs -4 0
Provisions 1.144 6
Gains and losses on disposal of fixed assets 12
Cash flow from operating activities 19.869 15.227
Change in receivables more than 1 year -100
Change in stock -1.354 -1.639
Change in receivables less than 1 year 5.522 4.616
Change in operational assets 4.068 2.977
Change in trade liabilities 1.682 -5.917
Change in debts relating to remuneration 366 -349
Change in other liabilities, accruals and deferred income 15 -53
Change in operational debts 2.063 -6.319
Change in the operating capital 6.131 -3.342
Tax paid -1.571 -2.007
Net cash flow from operating activities 24.429 9.878
Investment activities
Acquisition of intangible and tangible non-current assets -7.006 -8.983
Acquisition of shares in associated companies
New loans -670 -350
Total increase in investments -7.676 -9.333
Sale of tangible non-current assets 8 13
Repayment of loans 15
Total decrease in investments 8 28
Cash flow from investment activities -7.668 -9.305
Financing activities
Change in short-term financial debts 3.400
Increase in long-term debts 3.025
Repayment of long-term debts -5.683 -6.871
Interest paid (via income statement) -480 -548
Dividend paid by parent company -6.064 -4.331
Cash flow from financing activities -9.202 -8.350
Net change in cash and cash equivalents 7.559 -7.777
Cash funds at the beginning of the financial year 7.046 10.725
Translation differences -34 25
Cash funds at the end of the financial year 14.571 2.973

2. NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

INFORMATION ON THE COMPANY

Ter Beke (Euronext Brussel: TERB) is an innovative Belgian fresh foods concern that markets its assortment in 10 European countries. The group has 2 core activities: processed meats and fresh ready meals; it has 7 industrial sites in Belgium and the Netherlands and employs approximately 1,650 people. Ter Beke generated a turnover of EUR 396.3 million in 2015.

Processed Meats Division:

  • producer and slicer of processed meats for the Benelux, the UK and Germany;
  • 2 production plants in Belgium (Wommelgem and Waarschoot) and 5 centres for the slicing and packaging of processed meats, 3 of which are in Belgium (Wommelgem, Waarschoot and Veurne) and 2 in the Netherlands (Wijchen and Ridderkerk);
  • innovating in the pre-packed processed meats segment;
  • distribution brands and own brand names L'Ardennaise® , Pluma® and Daniël Coopman® ;
  • employs approximately 1050 staff.

Ready Meals Division:

  • produces fresh ready meals for the European market;
  • market leader in chilled lasagne in Europe;
  • 7 highly automated production lines in 2 specialized production sites in Belgium (Wanze and Marche-en-Famenne);
  • brand names Come a casa® and Vamos® in addition to distribution brands;
  • employs approximately 600 staff;
  • joint venture The Pasta Food Company established in Poland (2011).

DECLARATION OF CONFORMITY

The above condensed interim consolidated financial statements are set up in accordance with IAS-34 interim financial reporting, as accepted by the EU. These statements do not contain all information required for full annual accounts and need to be read together with the consolidated annual accounts for the reporting period ending 31 December 2015, as published in the annual report to the shareholders on the financial year 2015.

The group's scope of consolidation has not changed since 31 December 2015.

These condensed consolidated financial statements were approved for publication by the Board of Directors on 1 September 2016.

VALUATION AND INTERPRETATION RULES

The valuation rules used in preparing these condensed interim consolidated financial statements are consistent with those set out and applied in preparing the consolidated financial statements for the accounting period ending 31 December 2015.

New standards and interpretations, applicable from 1 January 2016, have no material impact on the condensed financial statements per 30 June 2016.

GENERAL

The General Meeting of Shareholders of 26 May 2016 approved the dividend proposed by the Board of Directors (EUR 3.50/share). The awarded dividend amounted to a total of EUR 6,064,173.50, of which more than 99% had been paid out per 30 June 2016.

The results of the group are hardly influenced by seasonal effects, except for a higher level of activity in December.

In the first semester of 2016, no related party transactions occurred that had a material influence on the financial position or the results of the group in that period.

The investments amounting to EUR 7.2 million in the first half of 2016 relate primarily to the further investments in efficiency and changes to the infrastructure at the various sites. EUR 8.6 million was invested in the first semester of 2015.

The group is exposed to an exchange rate risk on sales in Pound Sterling (GBP). In order to hedge this risk, the group held, on 30 June 2016, option contracts for the sale of GBP 2.5 million against EUR and long-term contracts for the sale of GBP 2.4 million against EUR. On 31 December 2015, the group had no option contracts for the sale of GBP against EUR but it did have long-term contracts for the sale of GBP 4.5 million against EUR. On 30 June 2016, a positive market value was recorded on the open position, whereas on 30 June 2015, a negative market value had been recorded on the open position.

On 30 June 2016, the group had a net GBP position of GBP 1.2 million (GBP 1.9 million on 31 December 2015).

On 30 June 2016, the EUR/GBP balance sheet rate amounted to 0.8265 compared to 0.7339 on 31 December 2015. On 30 June 2016, the average result rate amounted to 0.7789 compared to 0.7338 on 30 June 2015.

On 9 May 2016, the Athens court of first instance ruled in the case of Ter Beke against the Greek company Creta Farms. The court ordered Ter Beke to pay damages in the amount of EUR 100 thousand, whereas Creta Farms' initial claim amounted to EUR 2 million. Nevertheless, Ter Beke examines with its legal advisors the possibilities to lodge an appeal against the judgement.

The sale of the company Binet SA for an amount of approximately EUR 2.9 million marks an event post balance sheet date. On 30 June 2016, the consolidated balance sheet contained, with regard to this company, a fixed asset with a net book value of EUR 3 million and various debts in a total amount of EUR 0.5 million.

NOTES TO THE BALANCE SHEET

Under IAS-34, the balance sheet figures of 30 June 2016 are to be compared with those of 31 December 2015. Changes in balance sheet items are limited as there have been no changes in the scope of consolidation since 31 December 2015.

Non-current assets decreased by EUR 0.8 million. This is mainly the result of EUR 7.2 million investments reduced by EUR 8.7 million depreciations and write-downs and EUR 0.7 million new loans to The Pasta Food Company, the Polish joint venture.

Net debt decreased by EUR 10.2 million. This is the result of the incoming cash flow from operations (EUR 24.4 million), compared to an outgoing cash flow from net paid investments (EUR 7.7 million) and dividend and interest payments (amounting to EUR 6.5 million).

The equity difference is chiefly the result of the first semester after tax profit decreased with the dividend that was granted over the previous financial year.

NOTES TO THE INCOME STATEMENT

Turnover

The total group turnover in the first six months increased by EUR 13.3 million (+6.9%) from EUR 191.4 million to EUR 204.7 million.

The turnover of the processed meats division increased by EUR 9.1 million (+6.7%), while that of the ready meals division increased by EUR 4.2 million (+7.4%). The growth in turnover in the processed meats division was somewhat offset by the loss of a major UK-based contract in June 2016. The full impact of this will be felt in the last six months of the year.

The increase in turnover in both divisions is the consequence of continued efforts in profitable consumer-focused products and market intelligence over the last few years. Furthermore, the roll-out of this growth strategy in the processed meats division in the Dutch market is reaping its first rewards.

Results of operating activities

The investments made by the group in 2015 in researching consumer behaviour have enabled a number of new products and concepts to be launched in both divisions.

The effects of the rise in turnover, together with the continued focus on the profitability of the product range and cost control have led to a substantial improvement in the results.

The REBITDA increased by EUR 3.5 million (+21.4%) from EUR 16.3 million in the first half of 2015 to EUR 19.8 million in the same period in 2016.

In the ready meals division, this is reinforced by higher sales and by the different timings in the publicity surrounding the Come a casa® brand. Whilst most investment in brand advertising in 2015 took place in the first half of that year, it will be in the second half of 2016 that the group will focusing additional publicity on the launch of a new top range of speciality products under this brand name.

On the other hand, the positive impact of the increase in turnover in the processed meats division will not fully offset the effects of the downward trend in GBP as a result of Brexit. On top of this, in the first half of the year, the group invested significantly in the long-term strategy of the processed meats division and its organisation.

"Services and miscellaneous goods" comprises:

in '000 EUR 30/06/2016 30/06/2015
Temporary workers and persons put at the 5.177 4.592
disposal of the company
Repair & Maintenance 5.674 5.370
Marketing & Sales costs 8.279 8.182
Transport costs 7.241 6.709
Energy 3.766 4.322
Rent 3.249 3.051
Fees 3.188 3.683
Other 2.765 2.403
Total 39.339 38.312

"Other operating income and expenses" comprises:

in '000 EUR 30/06/2016 30/06/2015
Recovery of wage-related costs 292 267
Recovery of logistic costs 9 41
Profits from the disposal of assets 0 12
Recovery insurances 47 65
Write-offs 0 -24
Local taxes -1.007 -1.108
Others 649 241
Total -10 -506

The non-cash costs in the first half of 2016 (EUR 9.9 million) were EUR 1.9 million higher than the same period in 2015. This increase can be primarily ascribed to provisions for the long-term incentive of the CEO and the depreciation of the investments in the new ERP system which was successfully rolled out in the ready meals division in late 2015 and which will be rolled out in the processed meats division in 2016-2017.

Consequently, the REBIT increased by 19.2%, from EUR 8.3 million in 2015 to EUR 9.9 million in 2016.

The non-recurring result for the first six months in both 2016 and 2015 is made up of a limited number of significant redundancy payments. These amounted to a total of EUR 0.8 million in 2015 and EUR 0.3 million in 2016.

The EBITDA increased by EUR 4.1 million (+26.2%) from EUR 15.5 million in 2015 to EUR 19.6 million in 2016 and the EBIT increased by EUR 2.2 million (+28.8%) from EUR 7.5 million in 2015 to EUR 9.6 million in 2016.

Net financing costs

In 2016, the net financing expenses in the first half of the year were EUR 0.8 million lower than in the same period in 2015, mainly due to the positive exchange rate differences.

The positive exchange rate differences are primarily the result of the revaluation of our hedging instruments to the market value. This means that a weaker Sterling results in a higher value of the hedging (and vice versa). On the other hand, a weaker post-Brexit Sterling in the second half of the year will have a negative impact on the exchange rate results and our competitive status in the UK.

Taxes

The tax rate in the first half of 2016 (24.6%) was slightly lower than in June 2015 (27.4%).

KEY DATA PER BUSINESS SEGMENT

in '000 EUR 30/06/2016 30/06/2015
Processed
Meats
Ready
Meals
Total Processed
Meats
Ready
Meals
Total
Segment income statement
Segment sales 144.082 60.601 204.683 134.990 56.419 191.409
Segment results 6.541 6.954 13.495 7.227 2.064 9.291
Non-allocated results -3.874 -1.824
Net financing cost -126 -898
Taxes -2.339 -1.799
Result of companies according to equity method 49 -389
Consolidated result 7.205 4.381
Other segment information
Segment investments 4.383 1.681 6.064 3.196 4.101 7.297
Non-allocated investments 1.170 1.295
Total investments 7.234 8.592
Segment depreciations and non-cash costs 5.058 2.760 7.818 5.240 2.646 7.886
Non-allocated depreciations and non-cash costs 2.111 140
Total depreciations and non-cash costs 9.929 8.026

CALCULATION OF EARNINGS PER SHARE

Calculation earnings per share 30/06/2016 30/06/2015
Number of outstanding ordinary shares per 1 January 1.732.621 1.732.621
Effect of issued ordinary shares
Weighted average number of outstanding ordinary shares
per 30 June of the financial year 1.732.621 1.732.621
Net profit 7.205 4.381
Average number of shares 1.732.621 1.732.621
Basic profit per share 4,16 2,53
Calculation diluted earnings per share 30/06/2016 30/06/2015
Net profit 7.205 4.381
Average number of shares 1.732.621 1.732.621
Dilution effect warrant plans
Adjusted average number of shares 1.732.621 1.732.621
Diluted profit per share 4,16 2,53

As the number of treasury shares, purchased within the framework of the liquidity provider contract, is immaterial, it was decided not to take these into account in the calculation of the earnings per share.

3. INTERIM SEMESTER REPORT

KEY FIGURES AND HEADLINES

  • Ter Beke group:
  • o Net result growth of 64.5%.
  • o The consolidated turnover increased by EUR 13.3 million EUR (+6.9%) to EUR 204.7 million;
  • o REBITDA amounts to EUR 19.8 million in 2016 compared to EUR 16.3 million in 2015 (+21.4%).
  • o The first half of 2016 includes EUR 0.3 million in non-recurring expenses.
  • o This concerns redundancy payments.
  • o As a result of the above:
    • EBITDA amounts to EUR 19.6 million compared to EUR 15.5 million in 2015 (+26.2%)
    • EBIT amounts to EUR 9.6 million compared to EUR 7.5 million in 2015 (+28.8%)
    • the result after taxes amounts to EUR 7.2 million compared to EUR 4.4 million in 2015 (+64.5%)
    • net cash flow amounts to EUR 17.1 million compared to EUR 12.8 million in 2015 (+33.5%)
  • Processed Meats Division:
  • o Growth in turnover due to the development of new packaging concepts on the basis of insights acquired from recent consumer studies.
  • o Continued focus on the profitability of the product range and extensive cost control.
  • o Investment in the growth strategy in the Dutch market is reaping its first rewards.
  • Ready Meals Division:
  • o Profitable growth in turnover through the launch of new products and concepts.
  • o Continued focus on the profitability of the product range and extensive cost control.
  • o Successful repackaging of the Come a casa® product range

CONSOLIDATED KEY FIGURES FIRST SEMESTER 2016

Income statement in 000 EUR
30/06/16 30/06/15 ∆ %
Revenue (net turnover) 204.683 191.409 6,9%
REBITDA (1) 19.806 16.314 21,4%
EBITDA (2) 19.550 15.493 26,2%
Recurring result of operating activities (REBIT) 9.877 8.288 19,2%
Result of operating activities (EBIT) 9.621 7.467 28,8%
Net financing costs -126 -898 -86,0%
Result of operating activities 9.495 6.569 44,5%
after net financing costs (EBT)
Taxes -2.339 -1.799 30,0%
Result after tax before share in the result of enterprises 7.156 4.770 50,0%
accounted for using the equity method
Share in enterprises accounted for using the equity method 49 -389 112,6%
Earnings after taxes (EAT) 7.205 4.381 64,5%
Net cash flow (3) 17.085 12.796 33,5%
Financial position in 000 EUR
30/06/16 31/12/15
Balance sheet total 243.516 241.528 0,8%
Equity 109.630 108.843 0,7%
Net financial debts (4) 24.030 34.312 -30,0%
Equity/Total assets (in %) 45,0% 45,1%
Gearing Ratio (5) 21,9% 31,5%
Key figures in EUR per share
30/06/16 30/06/15
Number of shares 1.732.621 1.732.621
Average number of shares 1.732.621 1.732.621
Net cash flow 9,86 7,39 33,5%
Earnings after taxes 4,16 2,53 64,5%
EBITDA 11,28 8,94 26,2%

(1) REBITDA: EBITDA from recurring operating activities

(2) EBITDA: earnings before taxes + depreciation + amortization + changes in provisions

(3) Net cash flow: earnings after taxes + depreciation + amortization + changes in provisions

(4) Net financial debts: interest bearing liabilities – interest bearing receivables, cash and cash equivalents

(5) Gearing ratio: Net financial debt/Equity

NOTES TO THE CONSOLIDATED KEY FIGURES

Turnover

The total group turnover in the first six months increased by EUR 13.3 million (+6.9%) from EUR 191.4 million to EUR 204.7 million.

The turnover of the processed meats division increased by EUR 9.1 million (+6.7%), while that of the ready meals division increased by EUR 4.2 million (+7.4%). The growth in turnover in the processed meats division was somewhat offset by the loss of a major UK-based contract in June 2016. The full impact of this will be felt in the last six months of the year.

The increase in turnover in both divisions is the consequence of continued efforts in profitable consumer-focused products and market intelligence over the last few years. Furthermore, the roll-out of this growth strategy in the processed meats division in the Dutch market is reaping its first rewards.

Result of operating activities

The investments made by the group in 2015 in researching consumer behaviour have enabled a number of new products and concepts to be launched in both divisions.

The effects of the rise in turnover, together with the continued focus on the profitability of the product range and cost control have led to a substantial improvement in the results.

The REBITDA increased by EUR 3.5 million (+21.4%) from EUR 16.3 million in the first half of 2015 to EUR 19.8 million in the same period in 2016.

In the ready meals division, this is reinforced by higher sales and by the different timings in the publicity surrounding the Come a casa® brand. Whilst most investment in brand advertising in 2015 took place in the first half of that year, it will be in the second half of 2016 that the group will focusing additional publicity on the launch of a new top range of speciality products under this brand name.

On the other hand, the positive impact of the increase in turnover in the processed meats division will not fully offset the effects of the downward trend in Sterling as a result of Brexit. On top of this, in the first half of the year, the group invested significantly in the long-term strategy of the processed meats division and its organisation.

The non-cash costs in the first half of 2016 (EUR 9.9 million) were EUR 1.9 million higher than the same period in 2015. This increase can be primarily ascribed to provisions for the long-term incentive of the CEO and the depreciation of the investments in the new ERP system which was successfully rolled out in the ready meals division in late 2015 and which will be rolled out in the processed meats division in 2016-2017.

Consequently, the REBIT increased by 19.2%, from EUR 8.3 million in 2015 to EUR 9.9 million in 2016.

The non-recurring result for the first six months in both 2016 and 2015 is made up of a limited number of significant redundancy payments. These amounted to a total of EUR 0.8 million in 2015 and EUR 0.3 million in 2016.

The EBITDA increased by EUR 4.1 million (+26.2%) from EUR 15.5 million in 2015 to EUR 19.6 million in 2016 and the EBIT increased by EUR 2.2 million (+28.8%) from EUR 7.5 million in 2015 to EUR 9.6 million in 2016.

Net financing costs

In 2016, the net financing expenses in the first half of the year were EUR 0.8 million lower than in the same period in 2015, mainly due to the positive exchange rate differences.

The positive exchange rate differences are primarily the result of the revaluation of our hedging instruments to the market value. This means that a weaker Sterling results in a higher value of the hedging (and vice versa). On the other hand, a weaker post-Brexit Sterling in the second half of the year will have a negative impact on the exchange rate results and our competitive status in the UK.

Taxes

The tax rate in the first half of 2016 (24.6%) was slightly lower than in June 2015 (27.4%).

Balance sheet

Under IAS-34, the balance sheet figures of 30 June 2016 are to be compared with those of 31 December 2015. Changes in balance sheet items are limited as there have been no changes in the scope of consolidation since 31 December 2015.

Fixed assets decreased by EUR 0.8 million. This is mainly because of EUR 7.2 million in investments minus EUR 8.7 million in depreciations and write-downs and a new loan made to the Pasta Food Company of EUR 0.7 million.

Net debt decreased by EUR 10.2 million. This is the result of the incoming cash flow from operations (EUR 24.4 million), compared to an outgoing cash flow from net paid investments (EUR 7.7 million) and dividend and interest payments (EUR 6.5 million).

The equity difference is chiefly the result of the profit after tax over the first six months minus the dividend that was allocated over the previous financial year.

Investments

The investments of EUR 7.2 million in the first half of 2016 relate primarily to the ongoing investments in efficiency and changes to the infrastructure at the various sites. EUR 8.6 million was invested in the first semester of 2015.

PROSPECTS FOR 2016

The group is confident that, barring unforeseen market circumstances, the results for 2016 will surpass those of 2015.

RELATED PARTY TRANSACTIONS

In the first semester of 2016, no related party transactions occurred that had a material influence on the financial position or the results of the group in that period.

MATERIAL RISKS AND UNCERTAINTIES

The material risks and uncertainties for the remainder of 2016 are largely the same as described in the annual report on the financial year 2015 and relate primarily to the quality and price fluctuations of the raw materials used.

4. DECLARATION OF THE RESPONSIBLE PERSONS

The undersigned, Dirk Goeminne*, Managing Director, and René Stevens, Chief Financial Officer, declare that, to their knowledge:

  • the condensed interim consolidated financial statements on the first semester of 2016, established in accordance with the International Financial Accounting Standards ("IFRS"), provide a true and fair view of the estate, the financial position and the results of Ter Beke NV and the consolidated companies;
  • the half year financial report provides a true and fair view of the important events of the first semester of the financial year 2016, of the related party transactions and of the material risks and uncertainties for the remainder of the financial year.

Waarschoot, 1 September 2016

Dirk Goeminne* René Stevens

Managing Director Chief Financial Officer

*representing NV Fidigo

5. REPORT FROM THE STATUTORY AUDITOR ON THE HALF YEAR INFORMATION

FREE TRANSLATION The original text of this report is in Dutch

Ter Beke NV

Report on review of the consolidated interim financial information for the six-month period ended 30 June 2016

To the board of directors

In the context of our appointment as the company's statutory auditor, we report to you on the consolidated interim financial information. This consolidated interim financial information comprises the condensed consolidated balance sheet as at 30 June 2016, the condensed consolidated income statement, the condensed consolidated comprehensive income, the condensed consolidated statement of changes in equity and the condensed consolidated cash flow statement for the period of six months then ended, as well as the selective notes.

Report on the consolidated interim financial information

We have reviewed the consolidated interim financial information of Ter Beke NV ("the company") and its subsidiaries (jointly "the group"), prepared in accordance with International Financial Reporting Standard IAS 34 – Interim Financial Reporting as adopted by the European Union.

The consolidated condensed balance sheet shows total assets of 243,516 (000) EUR and the consolidated condensed income statement shows a consolidated profit (group share) for the period then ended of 7,205 (000) EUR.

The board of directors of the company is responsible for the preparation and fair presentation of the consolidated interim financial information in accordance with IAS 34 – Interim Financial Reporting as adopted by the European Union. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review of the consolidated interim financial information in accordance with International Standard on Review Engagements (ISRE) 2410 – Review of interim financial information performed by the independent auditor of the entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit performed in accordance with the International Standards on Auditing (ISA) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion on the consolidated interim financial information.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information of Ter Beke NV has not been prepared, in all material respects, in accordance with IAS 34 – Interim Financial Reporting as adopted by the European Union.

Gent, 1 September 2016

The statutory auditor

DELOITTE Bedrijfsrevisoren / Reviseurs d'Entreprises

BV o.v.v.e. CVBA / SC s.f.d. SCRL Represented by Charlotte Vanrobaeys

6. CONTACTS

If you have any questions on the present half year report or for further information, please contact:

Dirk De Backer René Stevens Company Secretary CFO Tel. + 32 (0)9 370 13 17 Tel. +32 (0)9 370 13 45 [email protected] [email protected]

You can also review the present half year report and send us your questions through the Investor relations module on our website (www.terbeke.com)

7. FINANCIAL CALENDAR

Annual report 2016: At the latest on 24 April 2017 General Meeting of Shareholders 2017: 24 May 2017 at 11 a.m.

Annual result 2016: 22 February 2017 before market opening

8. TER BEKE IN BRIEF

Ter Beke (Euronext Brussel: TERB) is an innovative Belgian fresh foods concern that markets its assortment in 10 European countries. The group has 2 core activities: processed meats and fresh ready meals; it has 7 industrial sites in Belgium and the Netherlands and employs approximately 1,650 people. Ter Beke generated a turnover of EUR 396.3 million in 2015.

Processed Meats Division:

  • producer and slicer of processed meats for the Benelux, the UK and Germany;
  • 2 production plants in Belgium (Wommelgem and Waarschoot) and 5 centres for the slicing and packaging of processed meats, 3 of which are in Belgium (Wommelgem, Waarschoot and Veurne) and 2 in the Netherlands (Wijchen and Ridderkerk);
  • innovating in the pre-packed processed meats segment;
  • distribution brands and own brand names L'Ardennaise® , Pluma® and Daniël Coopman® ;
  • employs approximately 1050 staff.

Ready Meals Division:

  • produces fresh ready meals for the European market;
  • market leader in chilled lasagne in Europe;
  • 7 highly automated production lines in 2 specialized production sites in Belgium (Wanze and Marche-en-Famenne);
  • brand names Come a casa® and Vamos® in addition to distribution brands;
  • employs approximately 600 staff;
  • joint venture The Pasta Food Company established in Poland (2011).

Talk to a Data Expert

Have a question? We'll get back to you promptly.