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Investor Presentation 2013 2013 FEBRUARY 28 2013 FEBRUARY 28 , 2013

Ackermans & van Haaren - 2013 annual results

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Ackermans & van Haaren: 2013 annual results: investor presentation

Text of Ackermans & van Haaren - 2013 annual results

  • 1. Investor Presentation 20132013 FEBRUARY 28 2013FEBRUARY 28, 2013
  • 2. ACKERMANS & VAN HAAREN A diversified group active in Limited number of at a glance 2013 group active in 5 segments strategic participations Net result Equity Gross dividend 294 mio Incl. remeasurement DEME of 109.4 mio 2,252 mio 1.70 Total payout: 57 mio Market capitalization Personnel We work for 2,853 mio Share price: 85.16 (31/12/2013) 22,706 Incl. CFE growth 2
  • 3. Ackermans & van Haaren: Introduction (1/3) Family controlled public companyy p p y 1876: First cooperation between Nicolaas van Haaren & Hendrik Willem Ackermans 1924: Incorporation of Ackermans & van Haaren NV 1984: IPO 2007: Inclusion in Bel20 index Still controlled and inspired by founding families & by family values Providing development capital Providing development capital From an industrial background With a long term focusg Financed with its own financial resources Working for growth 3
  • 4. Ackermans & van Haaren: Introduction (2/3) Company values Discretion Independence Common sense (Hollandse nuchterheid) C t t g Company strategy Long term vision Diversificiation in a limited number of strategic participationsDiversificiation in a limited number of strategic participations Sound financial policy: positive net cash position Opportunistic approach Corporate governance Board of Directors (9 members): majority of family representatives Management (6 members): meritocracy 4
  • 5. Ackermans & van Haaren: Introduction (3/3) Acting as a pro-active shareholder within the participations Selection of top-management Definition of long-term strategy Strategic focus Strict operational and financial discipline A ti b d t ti Active board representations Value creation fully aligned with management Not a holding company No holding company inefficiencies No shared financing structure / cross guarantees 5
  • 6. AvH strategy: We work for growth Ensure equity growth above 10% Focus on strategic participations Average annual growth of 12.0% (2004-2013) Create shareholder value Dividend payout of 1.70 AvH share: x42 Stock index: x8 (1984-2013) Average annual growth of 11.3% (2004-2013) 6
  • 7. 7
  • 8. Consolidated group result (in mio) 2013 2012(2) 2011(3) Marine Engineering & Infrastructure 59.7 51.7 54.6 Private Banking 84.5 71.5 88.1 Real Estate Leisure & Senior Care 15 8 3 6 4 5Real Estate, Leisure & Senior Care 15.8 3.6 4.5 Energy & Resources 8.7 16.4 19.0 Development Capital -6.6 5.9 8.6 Result from participations 162.1 149.1 174.8 Capital gains development capital 29.5 22.7 -0.9 R l f i i i (i l i l i ) 191 6 171 8 173 9Result from participations (incl. capital gains) 191.6 171.8 173.9 AvH & subholdings -7.2 -3.9 -0.9 Other non-recurrent result 109.5(1) -0.6 4.5 Consolidated group result 293.9(1) 167.3 177.5 (1) Incl. 109.4 mio result on the remeasurement of AvHs existing 50% stake in DEME when ki f ll l DEME i D b 2013 8 taking full control over DEME in December 2013 (2) Restated financial statements 2012 (IAS19) (3) Incl. 27.9 mio negative goodwill contribution upon acquisition of ABK, leading to 2011 implicit contribution from Private Banking of 60.2 mio and consolidated group result of 149.6 mio
  • 9. Evolution of the consolidated group result (in mio) 293 9106 8 293.9+106.8 167.3 +6.8 -12.5 -7.7 +12.2 +13.0+8.0 9
  • 10. Highlights 2013 The result includes a remeasurement income of 109 4 million euros which AvH had to The consolidated net result of AvH amounts to 293.9 million euros for 2013 The result includes a remeasurement income of 109.4 million euros which AvH had to recognize on the basis of the IFRS rules on the contribution of its 50% stake in DEME to CFE when it acquired control over CFE in December 2013. Excluding that remeasurement income, the net profit amounts to 184.5 million euros (5.51 euros per share), which is a 10% increase on the net profit of 167.5 million euros in 2012. The particularly high level of activity at DEME was reflected in a turnover that for the first time topped 2.5 billion euros as well as in a higher net profit (109.1 million euros). As of 24 December 2013 AvH exercises exclusive control over CFE (and therefore over As of 24 December 2013, AvH exercises exclusive control over CFE (and therefore over DEME as well) with a 60.4% stake. Delen Investments and Bank J.Van Breda & C reported an outstanding performance in 2013, and managed to grow their assets under management to a new record level. A proactive portfolio management permitted Leasinvest Real Estate to let its real estate portfolio grow to 718 million euros. Extensa was able to make a profit again by a recovery in its real estate development results. Due to lower output volumes and lower market prices for palm oil and rubber Sipefs Due to lower output volumes and lower market prices for palm oil and rubber, Sipef s result decreased in 2013. Sagar Cements and Max Green were confronted with difficult market conditions. Performance in the Development Capital segment is mixed: a substantial capital gain 10 was realized on the sale of the stake in Spano, while restructuring costs and impairments continued to depress the contribution from the other companies in 2013.
  • 11. Other key figures (i i ) 2013 2012 2011 Consolidated balance sheet AvH group (in mio) 2013 2012 2011 Shareholders' equity (group share) 2,251.5 2,003.3 1,882.6 Net cash AvH and subholdings -3.1 87.9 73.0g (i ) 2013 2012 2011 Key figures per share (in ) 2013 2012 2011 Number of shares (#) 33,496,904 33,496,904 33,496,904 Net result per share 8 87 5 05 5 36Net result per share 8.87 5.05 5.36 Gross dividend 1.70 1.67 1.64 Net equity 67 22 59 92 56 20Net equity 67.22 59.92 56.20 Stock price: highest (31/12) 85.16 65.09 71.72 lowest (18/4) 62.74 56.50 50.57 close (31/12) 85 16 62 27 57 64 11 close (31/12) 85.16 62.27 57.64
  • 12. Pro forma group figures (based upon conso results 2013, incl. pro rata(based upon conso results 2013, incl. pro rata under equity method) Group personnel per segment Consolidated turnover per segment (in mio) 22,706 5,66918,752 3,308 12 *TakingintoaccountacquisitionofcontrolofCFEandDEME(bothtakenfor100%)
  • 13. AvH share performance vs. BEL 20 AVH AVH rebased to 100 BEL20 rebased to 100 13 12/2013
  • 14. Marine Engineering & Infrastructure: Contribution to the AvH consolidated net resultContribution to the AvH consolidated net result DEME 44.7 ( mio) 2013 2012 2011 52.153.7 A.A. VAN LAERE 1.2 1.70.7 RENT-A- PORT 4.8 -0.83.8 NMP TOTAL 1.0 51 7 1.6 54 6 1.5 59 7TOTAL 51.7 54.659.7 14
  • 15. Marine Engineering & Infrastructure CFE One of the largest and most diversified dredging and marine engineering companies in the world DEME An industrial group active in Construction, Rail and Road, VAN LAERE G l t t f l g id ti l ffi d i il g p , , Multitechnics, Real Estate Development and Management Services, Public-Private Partnership and Concessions VAN LAERE (see slide 61) General contractor of large residential, office and civil construction projects; focus on PPS projects and parkings 2013: Decrease of turnover to 122 mio due to exceptionally long winterlong winter Order book at 169 mio Specialised in port development and logisticsRENT-A-PORT NMP Operator of pipelines for chemicals 2013: Result driven by continued growth in Vietnam and Oman and sale of a development in Nigeria (see slide 62) 15 NM (see slide 63) Ope ato o p pel es o c e cals 2013: Slightly higher results in line with expectations
  • 16. AvH gained exclusive control over DEME, through the acquisition of CFE (1/2)through the acquisition of CFE (1/2) Sep 19, 2013: AvH and Vinci reach an agreement Dec 24, 2013: AvH acquires a 60.39% stake in CFE AvH contributes to CFE its 50% stake in DEME ( 550 mio) in exchange for 12,222,222 new CFE shares AvH acquires 3,066,440 CFE shares of Vincis stake ( 45 per share or 138 mio in total) AvH evolves to exclusive control of DEME I t i t t t i 2013 li it d t d t tImpact on income statement in 2013 limited to mandatory remeasurement of 50% stake in DEME (IFRS). Capital gain of 109.4 mio recorded. Higher % in DEME and Rent-A-Port will be applied as from 2014. Feb 7, 2014: AvH launches mandatory public offer on CFE ( 45 per share) 16
  • 17. AvH gained exclusive control over DEME, through the acquisition of CFE (2/2)through the acquisition of CFE (2/2) Public Structure on February 27, 2014 12.1%60.4% + x% Public 27.5% - x% 100% x = shares that will be offered in the mandatory public bid (until March 5, 2014) 17
  • 18. DEME: key figures (1/2) (AvH 60.39% from 2014; 50% in 2013)(AvH 60.39% from 2014; 50% in 2013) One of the largest and most diversified dredging and marine engineering companies in the worldmarine engineering companies in the world (in mio) 2013 2012 2011 Consolidated key figures (in mio) 2013 2012 2011 Turnover 2,531.6 1,914.9 1,765.8 EBITDA 437.8 350.9 300.4 EBIT 216.5 140.4 137.1 Net result 109.1 89.4 104.1 Net cash flow 330.9 300.9 264.5 Sh h ld ' i 847 7 773 7 731 0Shareholder's equity 847.7 773.7 731.0 Net financial position -711.3 -741.9 -651.1 Total assets 2,837.0 2,725.4 2,496.3 Capex 209 343 372Capex 209 343 372 # personnel 4,582 4,011 3,815 18
  • 19. DEME: key figures (2/2) Capacity utilization (# weeks)Evolution as % of turnover ** *Turnoverimpactedbyprocurementofsupplies( 230mio) 19 SARB energy island (Abu Dhabi)Amoras (Antwerp)Lazaro Cardenas (Mexico)Valdemarsvik (Sweden)
  • 20. DEME: breakdown turnover Turnover per region Turnover per type of customerTurnover per activity 20
  • 21. DEME: highlights Highlights 2013 Strong increase of turnover (+32% impacted by 230 mio procurement of supplies) and net Strong increase of turnover (+32%, impacted by 230 mio procurement of supplies) and net result (+22%) driven by high activity level, good fleet utilization and order book of 3,049 mio Traditional dredging activities represent 62% of turnover. Dredging-plus activities represent already 38%: strong growth of Tideway and GeoSea, driven by trends in renewable energy sector and in oil and gas Large projects in Australia (Gladstone, Wheatstone) generating positive contribution to the results. New Port Project in Doha (Qatar) on track. Important project in Abu Dhabi, from a technical point of view perfectly finished but negotiations with customer related to additionaltechnical point of view, perfectly finished, but negotiations with customer related to additional work and costs. DEC finished Terranova project (140 ha of formerly polluted redevelopment in Ghent) with installation of 15 WW solar park Investment program finalized with last payment for Ambiorix. Total capex in 2013 of 209 mio (capex 2008-2013: > 1,430 mio) In January 2013, successful launch of 200 mio bond (maturity 2019, annual interest rate 4.145%) to diversify funding4.145%) to diversify funding Terranova Solar (Ghent) NorthwindNew Doha Port (Qatar) Citavecchia (Italy) 21
  • 22. DEME: examples of projects Artificial energy island at Abu Dhabi Thornton Bank 22 Gladstone (Australia) Colombia
  • 23. DEME: order book Order book 2013 maintained at a high level: 3,049 mio (vs 2,954 mio 1H13 and 3 317 mio end 2012) with orders across different regions and activities3,317 mio end 2012), with orders across different regions and activities Several specialized oil and gas related projects (Colombia, Venezuela, Australia, Ireland, India) signed for a total amount of 250 mio Large contract for Jurong Island (Singapore) for a total amount of 625 mio (DEME +- 50%) Wind farms Kentish Flats Extension (UK) and Gode Wind (Germany) added to order book by Tideway and GeoSea for 200 mio (8 offshore wind farm projects over 2014-2015) New orders obtained in 4Q13 in France (Seine, Bayonne, La Runion), Germany (Bremen, Duisburg) Nigeria (Onne) Brazil (Bay of Sepetiba)Duisburg), Nigeria (Onne), Brazil (Bay of Sepetiba) Other Evolution order book ( mio) 21% Other Middle East + India Asia 21% 9% 26% Europe23% 23 Benelux21%
  • 24. DEME: diversification of activities (1/2) Marine and civil engineering Tideway Rock dumping, landfalls and cable laying DEME (100%) GeoSea Nearshore and offshore foundation works for offshore energy projects and oil & gas projects DEME (100%) Scaldis Hoisting of heavy loads at sea and salvaging services DEME (54%), Jan De Nul, Herbosch-Kiere HGO Infra Jack-up vessels for offshore windfarm construction Hochtief Solutions Solutions p and oil&gas services and GeoSea (50%) OWA Services for offshore wind assistance GeoSea (100%) 24 Innovation Flintstone Neptune
  • 25. DEME: diversification of activities (2/2) Environmental services DEC/ Ecoterres Environmental group of DEME companies DEME (75%) and SRIW Purazur High technological treatment of industrial waste water DEC (100%) TerraSea GLDD and DEC Fluvial and marine aggregates DEME B ildi E t ti i d l f i DEME (100%)DEME Building Materials (DBM) Extraction, processing and sales of marine aggegrates for construction industry DEME (100%) OceanflORE Deepsea mining DEME (50%) and IHC MerwedeMerwede Maritime services CTOW Marine services for sea terminals DEME (54%), Herbosch- d l hKiere and Multraship Renewable energy and concessions: offshore wind C-Power Offshore wind farms DEME (11%) 25 Renewable energy and concessions: wave and tidal energy DEME Blue Energy Wave and tidal energy DEME (70%) ( )
  • 26. DEME: long term track record of stable long term shareholding and entrepreneurial growthshareholding and entrepreneurial growth (in 000 euro) Turnover Equity 2.000.000 2.500.000 1.000.000 1.500.000 500.000 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 20121974 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 201297 Scaldis DBMCreation DEME Holding G S CTOWCreation Dredging International (AvH Tideway DEC (Building Materials) Holding (Acquisition Decloedt) GeoSea DEME Blue Energy Oceanflore International (AvH + CFE dredging) [email protected] Tideway 26 AvH 38% AvH 48.5% AvH 50% AvH 60.4% Consolidation Partnership AvH 50% Control
  • 27. Structural growth drivers of global dredging marketdredging market Global population increase and tourism Global warming leading to rising sea levels Northwind Seaborne trade in line with GDP Energy & raw materials consumption growing 27 Source: Rabobank
  • 28. CFE: key figures Belgian industrial group active in Construction, Rail and Road, Multitechnics, Real Estate Development and Management Services Public-Private Partnership and Concessions (in mio) 2013 2012 2011 Turnover 2,267.3 1,898.3 1,793.8 EBITDA 213 2 199 1 181 7 Development and Management Services, Public Private Partnership and Concessions EBITDA 213.2 199.1 181.7 EBIT 67.2 81.2 84.9 Net result 7.9 49.4 59.1 Net result (incl. specific accounting re DEME transaction) -81.2 Order book 4 388 2 868 2 382Order book 4,388 2,868 2,382 Net financial debt 781.4(1) 400.0(2) 350.8 Highlights 2013 Liefkenshoekspoortunnel (Antwerp) (1) DEME 100%; (2) DEME 50% Highlights 2013 Strong revenue growth Decrease in operating income due to losses in Contracting and Multitechnics. Improvement measures being implemented 28 g p Net loss due to items specifically related to the capital increase Resilience of the order book Stronger financial position and initial decrease in debt levels
  • 29. CFE: a multidisciplinary contractor with six cornerstoneswith six cornerstones Order book 2013: 4,388 mio PPP-Concessions 19% stake in PPP Schulen Eupen 45% stake in Rent-A-Port, Rent-A- Port Energy 25% stake in Locorail Ci il E i i Construction 0% % 18% stake in Coentunnel 25% stake in Bizerte Study costs concessions Dredging and Environment 100% k i DEME Civil Engineering Infrastructure projects - tunnels, bridges, roads Buildings offices, industrial, commercial and residential Renovation & rehabilitation 69% 25% 100% stake in DEME Capital dredging Maintenance dredging Environmental business Oil & Gas Real Estate and Management services Bonded laminates 3% 2% 1% M ltit h i Real estate development Specific associated services: - Project management - Property management Multitechnics Electrical contracting Railroad electrification and signalisation Installation of high signalization and track-laying works railway works, railway overhead lines transport of energy high and low voltage Rail & Road 29 g tension lines Industrial & process automation HVAC p gy g g lines road and rail works asphalt works
  • 30. CFE: key figures by segment (in mio) 2013 2012 2013 2012 2013 2012 Dredging 1,265.8 957.8 105.1 69.1 52.0 43.3 Turnover Operational result Net result g g , Construction 711.0 645.2 -23.7 -2.5 -28.8 -1.3 Rail & Road 95.5 99.3 4.5 5.7 2.9 4.0 Multitechnics 170.1 156.3 -10.3 1.8 -11.8 0.9Multitechnics 170.1 156.3 10.3 1.8 11.8 0.9 Real Estate 21.8 35.0 3.8 10.4 1.8 5.7 PPP-Concessions 4.3 11.7 -1.4 3.7 0.9 3.1 Construction (Brussels) Rail & Road (Bruges)MultitechnicsConstruction (Knokke) PPP (Amsterdam) 30
  • 31. Private Banking: Contribution to the AvH consolidated net resultconsolidated net result FINAXIS- PROMOFI -0.2 ( mio) 2013 2012 2011 -0.2-0.4 DELEN INVESTMENTS 49.3 45.059.9 BANK J.VAN BREDA & CO 21.9 43.124.8 ASCO-BDM TOTAL 0.5 71 5 0.2 88 1 0.2 84 5TOTAL 71.5 88.184.5 31
  • 32. Private Banking DELEN INVESTMENTS Discretionary asset management and patrimonialDELEN INVESTMENTS Specialised advisory bank for entrepreneurs and Discretionary asset management and patrimonial advice for private clients BANK J VAN BREDA & CO Specialised advisory bank for entrepreneurs and liberal professions BANK J.VAN BREDA & C Insurance group focused on marine and propertyASCO-BDM insurance 32
  • 33. Finaxis organisation chart AvH Promofi 15% 75% 25% Finaxis 75% 25% Bank J Van Breda & CoDelen Investments CVA 99% 100% Bank J.Van Breda & CDelen Investments CVA 100% 73% 99.9% JM Finn & Co Delen Private Bank ABK 33
  • 34. Assets under management (in mio) 2013 2012 2011 Total assets under management Delen Investments 29,536 25,855 22,570 Delen Private Bank 20,210 17,884 15,666 JM Finn & Co 9,326 7,971 6,904 Van Breda: bancassurance products 1,507 1,496 1,438 Van Breda: AuM at Delen* 3,036 2,504 2,115 Van Breda: client deposits 3,683 3,424 3,453 (*) Already included in Delen Private Bank AuM 34
  • 35. Delen Investments: funds under management JM FinnAuM CAGR 2004-2013: 20.7% Start cooperation with Bank J.Van Breda & C BI&A Capfi Havaux BI&A (in mio) 1992 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Discretionary mandates 118 2,042 2,682 3,050 3,196 2,792 3,098 3,545 4,748 5,579 8,719 7,049 8,901 10,816 15,416 18,075 20,939 Advisory 35 Advisory clients 428 1,553 1,393 1,643 1,530 1,232 1,437 1,900 2,723 2,837 3,407 3,294 4,342 4,456 7,154 7,780 8,597 Total 546 3,595 4,075 4,693 4,726 4,024 4,535 5,445 7,471 8,416 12,126 10,343 13,243 15,272 22,570 25,855 29,536 Acquisitions 610 757 117 2,748 6,377
  • 36. Delen Investments: key figures (AvH 78.75%)(AvH 78.75%) Private banking and wealth management. Focused on discretionary asset management for private clients in Belgium and UK (in mio) 2013(2) 2012 2011(3) G 255 2 214 8 162 5 management for private clients, in Belgium and UK Brussels Gross revenues 255.2 214.8 162.5 Net result 76.0 62.6 57.2 Equity 464.1 414.5 364.3 Assets under management 29,536 25,855 22,570 Cost - income ratio(1) 54.8% 55.2% 44.2% Ghent ROE (IFRS) 17.3% 16.1% 16.1% Core Tier1 capital ratio 25.3% 23.1% 20.0% # personnel 552 551 530 (1) Excl. JM Finn = 38.8% (2012), 42.4% (2013) 36 ( ) ( ), ( ) (2) Impact of JM Finn on revenues of 67.6 mio, on net result of 4.6 mio (after amortization of intangibles (clients) and and 26.51% minorities of -2.9 mio) (impact on net result in 2012: 2.4 mio) (3) JM included for 3 months
  • 37. Delen Investments: highlights and outlook Highlights 2013 Continued growth at Delen Private Bank and JM Finn & Co, positively impacted byg , p y p y markets and strong inflow from existing and new customers (mainly at Delen Private Bank) AuM Delen Investments grown to 29,536 mio (vs 25,855 mio as of 31.12.12), of which 20 210 mio at Delen Private Bank ( 17 884 end 2012) and 9 326 mio at JM Finn & Co 20,210 mio at Delen Private Bank ( 17,884 end 2012) and 9,326 mio at JM Finn & Co ( 7,971 mio end 2012). 4.5 billion net new money over last 5 years Focus on increasing discretionary mandates in portfolio: 74% at Delen Private Bank, 63% at JM Finn & Co Slight decrease of cost - income ratio to 54.8% (55.2 % end 2012): Delen Private Bank 42.4%, JM Finn & Co 84.5% Net equity increased to 464 mio ( 415 mio end 2012), largely exceeding Basel II and III requirementsrequirements Core Tier1 increasing to 25.3%, well above sector average New office in Ghent and entirely renovated office in Brussels Outlook 2014 Delen Private Bank: well positioned thanks to continued strong inflows JM Finn & Co: continued focus on strengthening JM Finn model towards discretionary asset management a o via launching Coleman Street Investment services and efficientasset management, a.o. via launching Coleman Street Investment services and efficient commercial strategy with focus on new inflows 37
  • 38. Bank J.Van Breda & C: client assets (incl ABK and Van Breda Car Finance)(incl. ABK and Van Breda Car Finance) 6000 Total deposits & funds 3000 4000 5000 Total deposits & funds CAGR 2004-2013: 12.5% 0 1000 2000 3000 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Entrusted funds Client deposits Private loans ( mio) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Total deposits and funds 3,118 3,547 4,077 4,701 5,009 5,645 6,369 7,469 8,010 9,018 - Entrusted funds, of which 1,647 2,071 2,417 2,802 2,788 3,286 3,772 4,015 4,586 5,335 AuM at Delen 815 1,037 1,220 1,463 1,370 1,668 1,968 2,115 2,504 3,036 Bancassurance 596 739 880 1,044 1,174 1,309 1,414 1,438 1,496 1,507 Client deposits 1 471 1 476 1 660 1 899 2 221 2 359 2 597 3 453 3 424 3 683 38 - Client deposits 1,471 1,476 1,660 1,899 2,221 2,359 2,597 3,453 3,424 3,683 Private loans (1) 1,671 1,670 1,798 2,057 2,202 2,328 2,631 3,044 3,306 3,455 (1) Van Breda Car Finance included (2013: 300 mio)
  • 39. Bank J.Van Breda & C: key figures (AvH 78 75%)(AvH 78.75%) Relationship bank focused on private as well as professional needs for entrepreneurs and liberal professions (in mio) 2013 2012 2011 (incl. 7 months ABK) entrepreneurs and liberal professions Bank product 117.7 113.9 99.8 Net result 31.5 27.7 54.9* Equity (group share) 447.9 427.3 395.0 Total assets 4,410.3 3,992.8 3,979.6 Total client assets(1) 9,017.9 8,010.5 7,469.1 Cost - income ratio 58.9% 58.3% 61.1%Cost income ratio 58.9% 58.3% 61.1% ROE 7.2% 6.7% 16.4% CAD (solvency ratio) 15.6% 16.4% 17.3% Core Tier 1 capital ratio 13.7% 14.2% 14.7% N l i ff / l f 0 04% 0 08% 0 06%Net loan write-offs / avg loan portf 0.04% 0.08% 0.06% Leverage (equity/assets) 10.2% 11.1% 10.3% # personnel 466 465 462 39 p * Incl. 35.5 mio of negative goodwill on acquisition of ABK (1) Deposits and entrusted funds
  • 40. Bank J.Van Breda & C: highlights & outlook Highlights 2013 Continued steady growth of commercial volumes at Bank J Van Breda & Co (incl ABK) Continued steady growth of commercial volumes at Bank J.Van Breda & C (incl. ABK) Total client deposits and entrusted funds increased to 9,018 mio (vs 8,010 mio as of 31.12.12, +13%), of which 3,683 mio client deposits and 5,335 mio entrusted funds Continued growth of private loans (incl. ABK and Van Breda Car Finance): 3,455 mio ( 3,306 mio as of 31.12.12, +5%) Very limited net loan loss provisions: 0.04% (vs 0.08% for FY12) Cost - income ratio of 58 9% (vs 58 3 % for FY12) despite continued investments in new Cost income ratio of 58.9% (vs 58.3 % for FY12) despite continued investments in new IT systems, commercial organization and renovation of offices Net equity increased to 448 mio (vs 427 mio as of 31.12.12), with a Core Tier1 ratio of 13.7% and financial leverage (equity/assets) of 10 l Increase of net result with 14% to 31.5 mio despite a competitive market environment Participation in ABK bank increased to 99.9% at the end of 2013 Outlook 2014 Bank J.Van Breda & Co: strong commercial franchise, leading to continuous volume growth of both deposits and AuM as well as loan portfolio. Interest margins under pressure due to highly competitive deposit market but compensated by successful asset 40 pressure due to highly competitive deposit market, but compensated by successful asset gathering strategy ABK: continued focus on repositioning of brand
  • 41. Structural growth drivers of the Belgian private banking marketprivate banking market High level of net financial assets per capita High level of household savings rateHigh level of household savings rate 41 Source: Rabobank
  • 42. Real Estate, Leisure & Senior Care: Contribution to the AvH consolidated net resultto the AvH consolidated net result LEASINVEST REAL ESTATE 6.5 ( mio) 2013 2012 2011 4.28.7 EXTENSA -5.3 -2.84.5 GROUPE FINANCIERE DUVAL 1.8 2.62.0 ANIMA CARE TOTAL 0.6 3 6 0.4 4 515 8 0.6 TOTAL 3.6 4.515.8 42
  • 43. Real Estate, Leisure & Senior Care LEASINVEST REAL ESTATE Real Estate Investment Trust for offices, logistics and retail in Belgium and Luxembourg EXTENSA Land development in Belgium Real estate development in B/Lux, as well as Central E d T k retail in Belgium and Luxembourg Europe and Turkey FINANCIERE DUVAL (see slide 64) Real estate group with activities in RE promotion, tourism, golf sites, senior care and parkings d l b d lf Odalys: 115,000 beds, 329 sites; NGF: 33 golf sites; Residalya: 1,957 beds, 26 sites; ParkA: 6,000 parking places 2013 D f t d t ti i f l 2013: Decrease of turnover due to timing of real estate activities Increase of result driven by growth of Residalya and profitability of construction and promotionprofitability of construction and promotion ANIMA CARE (see slide 65) Health & senior care sector in Belgium 2013: Increase of turnover driven by portfolio expansion 43 expansion Total portfolio of more than 1,300 beds and service flats (834 beds and 60 service flats in operation)
  • 44. Leasinvest Real Estate (AvH 30%)(AvH 30%) Real Estate Investment Trust (bevak sicafi) for offices, logistics and retail in Belgium and LuxembourgBelgium and Luxembourg (in mio) 2013 2012 2011 Operational result 34.2 29.0 28.5Operational result 34.2 29.0 28.5 Net result 26.9 20.5 12.6 Net equity 335.3 256.0 261.8 Portfolio real estate (fair value) 718.2 617.8 504.4 Rental yield (%) 7.31 7.30 7.23 Occupancy rate (%) 96.9 94.9 92.6 N t d bt ti (%)(1) 53 5 56 2 47 3Net debt ratio (%)(1) 53.5 56.2 47.3 Per share () Net asset value 67 90 63 80 65 51Net asset value 67.90 63.80 65.51 Stock price - closing 73.60 67.10 64.99 High/Low 82.45/65.10 69.58/61.50 70.00/58.27 Dividend 4.50 4.40 4.15 44 (1) Total net debt: 406 mio (2013), 362 mio (2012)
  • 45. Leasinvest Real Estate: highlights Highlights 2013 S i i i i d L b (60% 18 i ) i i Strategic reorientation continued: Luxembourg (60%, 18 sites) most important investment market, compared to Belgium (40%, 16 sites) and retail most important asset class (42%) Increase of real estate portfolio with 16% to 718 mio, driven by acquisition of secondIncrease of real estate portfolio with 16% to 718 mio, driven by acquisition of second Knauf shopping center, Hornbach retail site and further investments in Royal20 office project (all in Luxembourg) Divestments of the office buildings Pasteur and Mercure (Luxembourg), two units of the Vi i d b i k d l i ti it i V t (B l i )Vierwinden business park and a logistics site in Vorst (Belgium) Occupancy rate increased to 96.9% (2012: 94.9%); average duration increased to 5.2 years (2012: 4.9 years)(2012: 4.9 years) Financing diversified through successful public capital increase of 60.7 mio (AvH share maintained), public bond of 75 mio and private bond of 20 mio. Increase of equity to 335 mio and decrease of debt ratio to 53.53% Early 2014, sale of office building Louizalaan 66, Brussels for 10.4 mio with limited capitalEarly 2014, sale of office building Louizalaan 66, Brussels for 10.4 mio with limited capital gain 45
  • 46. Leasinvest Real Estate: examples of projects Knauf Pommerloch (Luxemburg)Monnet 4646 The Crescent (Anderlecht)Motstraat (Mechelen)
  • 47. Extensa Group: consolidated balance sheet (Extensa LRE combined) (AvH 100%)(Extensa LRE combined) (AvH 100%) Real estate developer with focus on residential and mixed projects in Belgium and Luxembourg (in mio) 31/12/13 31/12/12 31/12/13 31/12/12 Land development 14 6 15 2 Net equity 125 1 107 9 and Luxembourg Land development 14.6 15.2 Net equity 125.1 107.9 Real estate projects 83.3 74.8 RE investments & Leasings 41.9 42.0 Tour &Taxis (50%): FV yield of 7.0% 26.7 23.8 Other assets 15.2 18.2 Leasinvest Real Estate 98.1 74.9 Financial debts(2) 125.9 114.5 1,444,754 shares(1) Other assets 29.1 33.9 Other liabilities 16.0 18.4 a.o. cash 20.1 mio (2012), 13.2 mio (2013) 47 Total assets 267.0 240.8 Total liabilities 267.0 240.8 (1) AvH holding directly 37,211 shares (2) Net financial debt 2012: 94.4 mio; 2013: 112.6 mio
  • 48. Extensa: highlights Highlights 2013 Increase of net res lt to 4 5 mio compared to a loss of 5 3 mio in 2012 E tensa leaving Increase of net result to 4.5 mio, compared to a loss of 5.3 mio in 2012. Extensa leaving behind it a few difficult years that were due to delays in obtaining permits and impairments Land development and residential projects in Belgium: De Lange Velden (Gent), Cederparkp p j g g ( ), p (Hasselt), De Munt (Roeselare) ongoing and on schedule. Sales of remaining houses, apartments and plots foreseen for 2014 City development: Tour & Taxis (Brussels) (Extensa 50% 30 ha 370 000 m): Building for City development: Tour & Taxis (Brussels) (Extensa 50%, 30 ha 370,000 m): Building for Brussels Department of Environment (16,725 m + 77 parking places; 18 yr lease) on track for delivery 1H14. Exploitation of Post Office Building started in 2Q13. Development of 105 apartments, 48,000 m office and underground car park (187 places) planned.p , , g p ( p ) p Cloche dOr (Luxembourg) (Extensa 50%, 20 ha 400,000 m): Infrastructure works started for phase I (300 residential units, 20,000 m offices and 80,000 m retail & leisure), commercialization of residential units expected in 2014 LOI signed for regional shoppingcommercialization of residential units expected in 2014. LOI signed for regional shopping center. New markets: Slovakia - Business Park Trnava (37 ha): construction of first phase of retail 48 ( ) p warehouse park (7,730 m) started. 58% of shops already rented. Turkey: First residential project expected to be fully commercialized in 2014
  • 49. From real estate leasing over real estate development to real estate servicesdevelopment to real estate services Extensa it 140(in million euro) equity 80 100 120 40 60 80 20 40 AvH 100% Acquisition -Creation of LRE AvH 60% 19941995199619971998199920002001200220032004200520062007200820092010201120122013 AvH 100% Extensa (real estate development) (investment trust) -Acquisition Brixton (real estate management) AvH 60% (equipment & real estate leasing) 49 Recent diversification into Real estate services: Groupe Duval (41%) - France (real estate exploitation & services) Anima Care (100%) Senior care facilities & services
  • 50. Energy & Resources: Contribution to the AvH consolidated net resultto the AvH consolidated net result SIPEF 14.1 ( mio) 2013 2012 2011 16.911.2 SAGAR CEMENTS 0.3 1.3-0.4 TELEMOND 1.0 -0.13.0 OTHER TOTAL 1.0 16 4 0.9 19 08 7 -5.1 TOTAL 16.4 19.08.7 50
  • 51. Energy & Resources SIPEF Agro industrial group with plantations in Indonesia andSIPEF g g p p Papua New Guinea for palm oil, rubber and tea Production of cement and clinkers. In partnership with the Reddy family SAGAR CEMENTS (see slide 66) Reddy family 2013: Lower turnover and net result due to overcapacity and low demand, leading to lower prices and sales volumes (see sl de 66) ORIENTAL QUARRIES Stone quarries for building aggregates. In partnership withO N QU S & MINES (see slide 67) Sto e qua es o bu ld g agg egates. pa t e s p w t the Bakshi family 2013: Production impacted by new legislation, operational problems and temporary inactivity of quarries Net result again positive, after loss in 2012 MAX GREEN (see slide 68) Renewable energy based on biomass (wood pellets), in JV with Electrabel 2013: Lower output due to maintenance of site Difficult to manage continuously changing legal framework Development & manufacturing of welded steel structuresTELEMOND GROUP l d 69 51 and equipment, mainly in Poland 2013: Diversified product portfolio led to higher results (see slide 69)
  • 52. Sipef: key figures (AvH 26 78%)(AvH 26.78%) A Belgian agro-industrial group operating and managing tropical plantation businesses (54 541 ha palm oil and 9 945 ha rubber) in Indonesia and Papuabusinesses (54,541 ha palm oil and 9,945 ha rubber), in Indonesia and Papua New Guinea (in USD mio) 2013 2012 2011 1 USD 1 33 (2013) 1 = USD 1.33 (2013) Group production (in T)(1) Palm oil 253,912 265,778 258,099 Rubber 10,403 10,641 9,545 Tea 2,850 2,923 2,641 T 291 7 332 5 367 7Turnover 291.7 332.5 367.7 EBIT 79.0 94.2 129.3 Net result 55.6 68.4 95.1 Net equity 508 1 472 6 425 3Net equity 508.1 472.6 425.3 Net cash position -31.9 18.2 47.5 Share high/low (in ) 65.03/50.00 71.89/54.51 75.78/49.01 Market cap ( mio) 516 5 523 7 519 2 52 (1) Own + outgrowers Market cap ( mio) 516.5 523.7 519.2
  • 53. Sipef: highlights & outlook Highlights 2013 Decrease of turnover (-12 3%) to USD 291 7 mio and of net result (-18 7%) to USD 55 6 mio Decrease of turnover (-12.3%) to USD 291.7 mio and of net result (-18.7%) to USD 55.6 mio due to lower volumes and decreasing prices in palm oil, rubber and tea Decrease in palm oil production volumes (-4.5%), compared to record volumes in 2012, due to bad weather. Rubber production volumes also below expectations. Relatively limited volatility in sales prices for palm oil over the year Average market price (in USD/ton) 2013 2012 2011 2010 1 = USD 1.33 (2013) Palm oil 857 999 1,125 901 Expansion plans in Papua New Guinea and Indonesia slowed down due to weather, sustainability procedures and technical limitations 1 459 ha added resulting in total Rubber 2,795 3,377 4,823 3,654 sustainability procedures and technical limitations. 1,459 ha added, resulting in total planted areas of 66,942 ha, of which 17.6% hasnt reached production stage yet. Outlook 2014 53 Sipef expects a stable recurrent result in 2014, as a result of the expected production volumes and the current market prices
  • 54. Development Capital: Contribution to the AvH consolidated net resultthe AvH consolidated net result SOFINIM -1.3 ( mio) 2013 2012 2011* -0.8-2.8 CONTRIBUTION PORTFOLIO SOFINIM 4.3 6.3-6.3 CONTRIBUTION PORTFOLIO GIB 2.9 3.12.5 CONTRIBUTION BEFORE CAPITAL GAINS CAPITAL GAINS 5.9 22 7 8.6 0 929 5 -6.6 CAPITAL GAINS 22.7 -0.929.5 TOTAL CONTRIBUTION DEVELOPMENT CAPITAL 28.6 7.722.9 54 * IFRS implies fair value changes taken into account on all portfolio companies DEVELOPMENT CAPITAL
  • 55. 55
  • 56. Development Capital: adjusted net asset valueasset value (in mio) 2013 2012 2011 Sofinim 493.2 466.4 437.3 Unrealised capital gain Atenor 8.2 6.2 1.5p g Share price Atenor (in ) 34.25 32.05 24.21 Market value Groupe Flo / Trasys 10.0 8.4 12.9 Sh i G Fl (i ) 3 00 3 00 3 56Share price Groupe Flo (in ) 3.00 3.00 3.56 Total Development Capital 511.4 481.0 451.7 56
  • 57. Development Capital: key figures portfolio 2013p (see slides 69-72 for highlights) in mio Turnover EBITDA Net Result Net Equity Net Fin. Position Sofinim (74%) 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 Atenor 110.133 45.943 24.016 8.935 12.028 9.489 104.786 98.605-174.932 -131.849 Axe Investments 0.587 0.733 0.123 0.249 0.278 0.870 15.613 16.088 5.157 5.185 Amsteldijk Beheer -0.124 0.049 -0.489 0.031 1.230 1.719 0.267 -18.599 Corelio 300.054 349.453 21.339 19.443 -26.660 -3.864 53.421 73.933 -74.750 -71.602 Distriplus 247 230 246 785 13 728 14 856 -0 039 2 661 62 665 62 704 -61 267 -61 307Distriplus 247.230 246.785 13.728 14.856 0.039 2.661 62.665 62.704 61.267 61.307 Egemin International 105.040 107.521 7.144 5.739 2.363 1.764 21.914 20.323 12.586 2.228 Euro Media Group 301.344 333.020 68.226 76.126 9.425 21.557 189.000 179.828 -81.011 -89.521 Hertel Holding 767.418 907.246 3.259 24.455 -34.356 -32.939 128.655 161.513 -35.994 -102.639 Manuchar 1,010.521 921.433 41.967 27.039 4.558 3.560 54.295 50.942 -257.521 -231.139 NMC 197.645 195.712 27.145 24.459 11.852 10.175 99.994 93.277 -15.873 -15.274 Turbo's Hoet Groep 405.553 471.255 17.870 19.487 5.638 7.755 88.109 87.717 -95.955 -79.863 GIB (50%)( ) Groupe Flo 346.843 365.837 35.347 41.778 7.966 12.522 165.824 159.101 -57.702 -74.711 Trasys 73.185 69.283 4.913 5.102 2.781 1.908 21.959 18.985 -8.562 -12.077 57
  • 58. Development Capital: overview of major divestmentsdivestments 64 1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2012 53.7 64.1 IRR % 34.1 31 9 39.0 28.3 22.6 16 5 26.7 16 5 24.9 31.9 14 8 25.5 19.0 -0.8 16.5 -1.3 16.5 11.1 14.8 3.4 5.7 2.2 I 3 8 5 3 10 10 4 9 11 4 6 8 8 7 15 2 5 6 11 6 Investment term (# years) 58
  • 59. Other participations 59
  • 60. Van Laere (AvH 100%)(AvH 100%) General contractor of construction and civil engineering projects (in mio) 2013 2012 2011 Turnover 122 3 161 2 137 3 Consolidated key figures Turnover 122.3 161.2 137.3 Net result 0.7 1.2 1.7 Shareholder's equity 36.6 35.7 34.7q y Net financial position 6.1 4.0 5.8 # personnel 463 500 482 Brussels Department of Environment Highlights 2013 Decrease of turnover due to bad weather in first quarter Decrease of turnover due to bad weather in first quarter Positive result thanks to the completion of a number of projects Order book: 169 mio (2012: 131 mio), excluding the A11 project. Including this project, order book at record level despite difficult market environment 60
  • 61. Rent-A-Port (AvH 72.18% from 2014; 45% in 2013)(AvH 72.18% from 2014; 45% in 2013) Specialized company for port development, port management and logistics consultancy Consolidated key figures (in mio) 2013 2012 2011 Turnover 6.8 26.5 5.6 Net result 12.3 12.3 -1.7 Shareholder's equity 25.9 13.7 1.5 Net financial position 0.5 -3.8 -8.1 Highlights 2013 Stable net result mainly driven by further growth in Vietnam (Dinh Vu industrial zone) and Oman (port and industrial zones of Duqm)zone) and Oman (port and industrial zones of Duqm) Strategic reorientation in Nigeria: agreement signed with Dangote (Nigerian industrial group) for the sale of largest part of the development project OK Free Trade Zone with limited capital gain. 61
  • 62. Nationale Maatschappij der Pijpleidingen (NMP) (AvH 75%)(AvH 75%) Operator of 700 km of pipelines for transport of industrial gases and chemicals in Belgiumand chemicals in Belgium (in mio) 2013 2012 2011 Consolidated key figures ( ) 2012 2011 Turnover 13.9 15.9 12.5 Net result 2.0 1.4 2.1 Net cash flow 4.3 3.2 3.9 Shareholder's equity 27.5 26.8 28.4 Net financial position 13 5 13 4 14 4Net financial position 13.5 13.4 14.4 Highlights 2013 Scheldelaan (Antwerp) Slightly higher results in line with expectations Acquisition of 10.5 km pipeline in port of Antwerp by Nitraco (joint venture with Praxair), as part of large project (operational 2016) 62
  • 63. Groupe Financire Duval (AvH 41.14%)(AvH 41.14%) French group focused on real estate projects, services and residences (in mio) 2013 2012 2011 Turnover 501.1 514.1 430.4 Consolidated key figures EBIT 13.4 11.9 16.3 Net result 4.7 3.9 6.6 Shareholder's equity 107.1 102.3 99.1 Net financial position -96.1 -80.0 -63.4 Odalys Le Chteau de Kergonano (Baden) Highlights 2013 Decrease of turnover mainly driven by timing of real estate activities (CFA) Operational result improved, mainly thanks to growth of Residalya and profitability ofp p , y g y p y Construction and promotion Services (Yxime): approx. 5.5 mio m property under management Parkings (ParkA) (6,000 parking places in Paris and Nmes) Exploitation activities: Tourism holiday parks (Odalys) (115 000 beds 329 sites); NGF (33 63 Exploitation activities: Tourism holiday parks (Odalys) (115,000 beds, 329 sites); NGF (33 golf sites); Health (Residalya) (1,957 beds, 26 sites): new residences and higher occupancy
  • 64. Anima Care (AvH 100%)(AvH 100%) Anima Care focuses on the market segment of high quality senior care residencescare residences (in mio) 2013 2012 2011 Azur Soins et SantConsolidated key figures Turnover 27.4 20.5 15.4 EBITDA 3.4 2.4 2.1 Net result 0.6 0.6 0.4 Shareholder's equity 32.4 21.2 12.0 Net financial position -40.8 -15.2 -13.7p Highlights 2013 Increase of turnover driven by portfolio expansion: St James in La Hulpe (59 beds) and Chteau dAwans (168 beds) Les Comtes de Man (Blegny) Chteau dAwans (168 beds) Net result in line with 2012 due to construction of new residences: Blegny (150 beds, delivery 4Q13), Zemst (93 beds, 23 service flats; 1Q14), Haut-Ittre (127 beds, 36 service flats; 2014) and Kasterlee (133 beds, 63 service flats; 2014) 64 ; ) ( , ; ) Total portfolio: of more than 1,300 beds and service flats (834 beds and 60 service flats in operation)
  • 65. Sagar Cements (AvH 18.55%) Cement plant, located near Hyderabad (Andra Pradesh, India), with capacity of 2 5 million tonnes cement per year (AvH 18.55%) of 2.5 million tonnes cement per year (in mio) 2013 2012 2011 1 INR 77 52 1 INR 68 97 1 INR 64 94 Consolidated key figures 1 = INR 77.52 1 = INR 68.97 1 = INR 64.94 Turnover 61.7 85.6 88.8 EBITDA 3.7 11.4 23.1 Net result 2 4 2 2 9 3Net result -2.4 2.2 9.3 Shareholder's equity 29.7 37.7 38.3 Net financial position -25.0 -27.5 -29.7 Highlights 2013 Net financial position 25.0 27.5 29.7 Share high/low (in INR) 291.4/162.0 289.4/138.9 150.0/121.1 Market cap (INR mio) 2,960 5,032 2,480 Highlights 2013 Continued overcapacity in South Indian market leading to lower prices and sales volumes Impact of significant cost increase of electricity and coal only partially offset 65 Cement plant with Vicat Group (Sagar: 47%) in Karnataka operational since beginning of 2013 Increase of AvH participation to 18.55%
  • 66. Oriental Quarries & Mines (AvH 50%)(AvH 50%) Aggregates quarries, India (in partnership with Oriental Structural Engineers ) (in mio) 2013 2012 2011 1 = INR 77 52 1= INR 68 97 1= INR 64 94 Consolidated key figures 1 = INR 77.52 1= INR 68.97 1= INR 64.94 Turnover 4.9 3.6 6.8 EBITDA 0.2 -0.5 0.3 Net result 0 1 -0 4 0 2Net result 0.1 -0.4 0.2 Shareholder's equity 6.0 7.0 7.8 Net financial position 1.5 2.1 3.1 Bidadi quarryp Highlights 2013 Impacted by new legislation and temporary inactivity of quarries Bidadi quarry Impacted by new legislation and temporary inactivity of quarries Improvement program started to improve sales margins and operational efficiency resulted in 54% increase of turnover and a positive net result (compared to a loss in 2012) Quarries in Moth Gwalior and Bangalore with total crushing capacity of 1 5 million tons 66 Quarries in Moth, Gwalior and Bangalore with total crushing capacity of 1.5 million tons
  • 67. Max Green (AvH 18.9%)(AvH 18.9%) Renewable energy based on biomass / wood pellets (joint venture with Electrabel) Highlights 2013 (joint venture with Electrabel) Conversion of Rodenhuize 4 plant (Ghent) into 100% biomass fired unit 180 -200 Mwel capacity Lower output 2013 due to longer than expected maintenance period: 1,26 TWH green energy (2012 1,46 TWH) Turnover of 157 mio (2012: 193 mio) and EBITDA of 0.4 mio (2012: 11.0 mio) negatively impacted by limited capacity utilization, decreasing market prices for electricity and green certificates and by changing Rodenhuize (Ghent) for electricity and green certificates and by changing legal framework 67
  • 68. Telemond Group (AvH 50%)(AvH 50%) Development and manufacturing of welded structures with a particular emphasis on telescopic cranes for mobile crane vehicles as well as loadingemphasis on telescopic cranes for mobile crane vehicles as well as loading platforms and kippers for light trucks Consolidated key figures (in mio) 2013 2012 2011 Turnover 78.7 74.3 64.4 Net result 6 6 3 1 -0 7 Consolidated key figures Net result 6.6 3.1 -0.7 Net financial position -10.9 -14.1 -14.2 Highlights 2013 Increase of turnover and net result thanks to diversified product portfolio 68
  • 69. Development Capital: highlights Highlights 2013 Divergent results in development capital segment: capital gain of 34 mio (AvH) on sale of Spano-group. Lower contribution from other companies due to restructuring costs and impairments. Atenor: Result impacted by the sale of apartments in UP-site (Brussels), the start of the Trbel project and the construction of Port du Bon Dieu (Namur) Corelio and Concentra merged their Flemish newspapers and digital activities in Mediahuis (Corelio 62%, Concentra 38%). Agreement signed with Tecteo for sale of French speaking newspaper activities in Sepwith Tecteo for sale of French speaking newspaper activities in Sep, regulatory approval still pending. Due to exceptional amortizations of intangibles by De Vijver Media (Corelio 33%) and other restructuring charges, Corelio realized a net loss. Distriplus: Stable turnover despite a difficult economic environment thanks to commercial strategy of the 3 chains. Due to exceptional costs, Distriplus booked a breakeven result.costs, Distriplus booked a breakeven result. 69
  • 70. Development Capital: highlights Highlights 2013 Egemin Automation: Delays in new projects and longer decision cycles due to economic climate. Margin improvement thanks to better selection of orders and strict control of implementation. Euro Media Group: Acquisition of the technical resources from Alfacam, specialised in the recording and broadcasting of images internationally. Decrease of net result due to restructuring costs in French activity, exceptional impairment on rentals and capital gain on the sale of real estate. As a consequence, Sofinim recorded an impairment. Groupe Flo: Decrease of turnover (-4 6% like-for-like) and net result in a Groupe Flo: Decrease of turnover ( 4.6% like for like) and net result in a persistently difficult market. Focus on strengthening Hippopotamus (9 new restaurants in 2013). Continued decrease of debt. Hertel: Turnover decrease of 15% due to divestitures in 2012, closing of activities and critical selection of projects. Disappointing result due to restructuring costs, goodwill impairment and other non-recurring elements Solid financial basis thanks to refinancing early 2013 whenelements. Solid financial basis thanks to refinancing early 2013, when shareholders Sofinim and NPM Capital injected 75 mio cash, and working capital management. Net debt decreased to 36 mio 70
  • 71. Development Capital: highlights Highlights 2013 Manuchar: Strong recovery with increase of turnover and net result. On its way to become a top 3 player in distribution of chemicals in emerging markets. Trading in steel and non-ferro also performed well. Acquisition of one of its main suppliers in hardwoodAcquisition of one of its main suppliers in hardwood. NMC: Stable turnover but significant growth (+18%) in net result, due to internal improvement program focused on productivity. Sales prices adjusted to the increasing cost of raw materials. Trasys: Increase of turnover (+6%) and net result (+47%) in a very competitive IT marketcompetitive IT market. Turbos Hoet Groep: Decline of market of new trucks leading to decrease of sales of Turbotrucks, mainly in Russia and Belarus. Increasing revenues at Turboparts and stable, but profitable, leasing and renting activities. New workshop and warehoude opened in Moscow, garage in Namur renovated and Torhout site closed. 71
  • 72. Groupe Flo (GIB 47.13%)(GIB 47.13%) Leading player in casual dining in France, with a portfolio of complementary brands of theme restaurants (Hippopotamus Tablapizza and Taverne de Matre Kanter) and (i i ) 2013 2012 2011 of theme restaurants (Hippopotamus, Tablapizza and Taverne de Matre Kanter) and famous brasseries Consolidated key figures (in mio) 2013 2012 2011 Turnover 346.8 365.8 382.2 EBITDA 35.3 41.8 48.1 N t lt 8 0 12 5 15 0Net result 8.0 12.5 15.0 Net financial position -57.7 -74.7 -79.0 Highlights 2013 Decrease of turnover (-4.6% like-for-like) due to continued decline in consumption M t k t d t th ti g d l t l d l til l h Measures taken to adopt the operating model to lower and more volatile volumes, have only partially offset the impact of the lower turnover The positive operating cash flow has allowed further debt reduction resulting in a sound financial structure Flo adapts its offering to meet the expectations of customers who are increasingly price sensitive 72
  • 73. Outlook 2013 The board of directors is positive about the groups outlook for the currentthe group s outlook for the current financial year. 73
  • 74. For further questions or additional information, please consult our website: www.avh.be Contact: Luc Bertrand Ch i f th E ti C ittChairman of the Executive Committee Jan Suykens Member of the Executive Committee Tom Bamelis Member of the Executive Committee T +32 3 231 87 79 E [email protected] 74
  • 75. Annexes 75
  • 76. Multidisciplinary and experienced team Born with AvH sinceBorn with AvH since Luc Bertrand 1951 1986 (Bankers Trust) Jan Suykens 1960 1990 (Generale Bank) Piet Dejonghe 1966 1995 (Allen & Overy - LCV, Boston Consulting Group)Piet Dejonghe 1966 1995 (Allen & Overy LCV, Boston Consulting Group) Piet Bevernage 1968 1995 (Allen & Overy - LCV) Tom Bamelis 1966 1999 (Touche Ross, GBL) Koen Janssen 1970 2001 (Recticel, ING)( , ) Marc De Pauw 1953 1994 (NIM) Andr-Xavier Cooreman 1964 1997 (Shell, Generale Bank, McKinsey, Bank Degroof) Hilde Delabie 1968 1998 (Deloitte) Matthias De Raeymaeker 1975 2005 (Arthur D. Little) Sofie Beernaert 1975 2005 (Eubelius) John-Eric Bertrand 1977 2008 (Deloitte, Roland Berger) Katia Waegemans 1969 2008 (McKinsey, Agfa-Gevaert) Ben De Voecht 1979 2010 (ExxonMobil) 76
  • 77. Historical overview 1880 Foundation by H.W. Ackermans & Nicolaas van Haaren 1964 Foundation of Forasol SA 1974 Merger of dredging activities with SGD (CFE-SGB)g g g ( ) 1984 I.P.O. 1988 1st diversification into brewery sector (Alken Maes)1988 1st diversification into brewery sector (Alken-Maes) 1991 Acquisition of Creyfs Interim (renamed Solvus) 1992 Acquisition of Belcofi Delen (start of Private banking) 1994 Acquisition of privatised Socit Nationale dInvestissement (start of private equity via Sofinim and of real estate via Leasinvest)(start of private equity via Sofinim and of real estate via Leasinvest) 1996 Sale of Forasol Foramer to Pride Petroleum 1998 Creation of joint holding company (Finaxis) of Bank Delen with Bank J. Van Breda & C (AvH 60% / beneficial 30%) 77
  • 78. Historical overview (2) 1999 IPO of Leasinvest Real Estate 2000 Increase of stake in DEME from 39.5% to 48.5% 2002 Acquisition 50% stake in GIB (Quick), together with CNP 2004 Increase of stake in Finaxis from 30% to 75 % Increase of stake in DEME from 48.5% to 50% 2005 Sale of Solvus to USG 2006 Strong investment (Flo, Trasys, Turbos Hoet Group, Cobelguard) as well as divestment (Quick, SCF) activity(Q , ) y 2007 Bank Delen: acquisition of CAPFI ( 2,747 mio) DEME: 2nd phase of fleet investment program Private equity: strong investment activity (Spano, Iris, Manuchar, Distriplus:q y g y (Sp , , , p 154 mio) 2008 Investment in Rombouts (20%) and Sagar Cements Sale of Arcomet, Oleon Holding and Oleon BiodieselSale of Arcomet, Oleon Holding and Oleon Biodiesel 78
  • 79. Historical overview (3) 2009 Sale of IDIM to R.D.C.B. and S.R.I.B. and sale of I.R.I.S. to Canon Investments in Oriental Quarries & Mines, Alcofina and Max Green 2010 Creation of Rent-A-Port Energy Co-control Holding Groupe Duvalg p RSPO certification of Sipef Sale of Engelhardt Druck 2011 Listing of AvH options on NYSE Liffe2011 Listing of AvH options on NYSE Liffe Acquisition ABK by Bank J.Van Breda & Co Acquisition JM Finn & Co by Delen Investments 2012 Sale by Sofinim of stakes in Alural (60%) and AR Metallizing (63%)2012 Sale by Sofinim of stakes in Alural (60%) and AR Metallizing (63%) 2013 Sale by Sofinim of stake in Spano Invest (73%) Acquisition of CFE (60%) and exclusive control of DEME 79
  • 80. Evolution of the AvH share (index rebased to 20/6/1984)( ) AvH Belgian all share index AvH Belgian all share index 1984-2013 AvH share: x42 share indexshare index Stock index: x8 80 Market capitalization ( mio, end of year): 55 317 2,2445901,066 2,853
  • 81. Return AvH vs market 81 Source: KBC Securities
  • 82. Net cash position AvH group (in 000) AvH & subholdings Development capital Total (31/12/2013) Investment portfolio* 23 610 0 23 610Investment portfolio 23,610 0 23,610 Term deposits 46,412 26,194 72,606 Intercompany deposits -124,400 124,400 0 Cash 4,581 1,456 6,037Cash 4,581 1,456 6,037 Long term debt -87,990 -87,990 Short term debt - commercial paper -38,853 -38,853 Own shares (#361,525) 21,172 21,172( , ) , , Net cash GIB (50%) and Other 322 (equity consolidation) -155,468 152,050 -3,096, , , * Primarily Delen Private Bank funds 82
  • 83. Delen Investments: income statement Conso (in 000) 2013 2012 2011 (3 months JM Finn) Net interest income 2,994 4,192 7,220 Gross fee income 245,800 212,444 151,271 Other income 6,417 -1,800 4,028 Gross revenues 255 211 214 836 162 519Gross revenues 255,211 214,836 162,519 Fees paid -21,892 -19,430 -15,849 Operational expenses -112,725 -96,162 -58,783 Amortisations & provisions -11,243 -9,948 -6,182 Other expenses -2,328 -2,172 -861 Loan loss provision -27 -25 -22 Expenses -126 324 -108 307 -65 848Expenses 126,324 108,307 65,848 Share of profit (loss) from equity accounted investments 0 507 240 Profit before tax 106,996 87,606 81,063 Income taxes -28,804 -23,602 -23,513 Profit of the period 83 Profit of the period Minority interests -2,159 -1,387 -379 Share of the group 76,033 62,617 57,171
  • 84. Delen Investments: balance sheet (in 000) 2013 2012 2011 Cash & loans and advances to banks 658,767 698,990 739,481 Financial assets - Financial assets available for sale 537,717 494,015 675,580 Fi i l t h ld f t di g 33 633 33 073 36 603- Financial assets held for trading 33,633 33,073 36,603 - Loans and receivables 125,987 102,316 87,342 - Other 0 0 1,881 Tangibles assets 55,070 52,157 38,823g , , , Goodwill and other intangible assets* 248,607 249,258 243,016 Other assets 25,240 24,588 23,685 Total assets 1,685,021 1,654,397 1,846,411 Financial liabilities - Deposits from credit institutions 2,403 1,603 1,468 - Deposits from clients 1,080,732 1,120,207 1,350,950p , , , , , , - Other 30,267 28,146 33,949 Provisions, tax and other liabilities 107,247 89,653 95,523 Equity (including minority interests)* 464,372 414,788 364,521 T t l li biliti 1 685 021 1 654 397 1 846 411Total liabilities 1,685,021 1,654,397 1,846,411 84 * JM Finn at 100% taking into account put/call rights on minority stake of 26.51% as from 2011
  • 85. Delen Private Bank: Annualised returns (after all costs) since inception(after all costs) since inception 31/12/2013 1 year 3 years 5 years 10 years Since Fixed Income* -2,04% 0,94% 1,73% 2,12% 1,69% G % % % % % 31/12/2013 1 year 3 years 5 years 10 years inception Peer Group 1,04% 4,36% 4,92% 3,74% 5,12% Low 2,17% 2,70% 5,96% 3,85% 5,80% Peer Group 3,97% 3,57% 5,66% 3,25% 3,97% Medium 4,91% 4,07% 8,82% 5,35% 4,69% Peer Group 7,68% 4,41% 8,15% 3,86% 2,63% High 9,81% 5,61% 12,43% 6,13% 6,72% Peer Group 12,40% 5,94% 10,90% 4,58% 3,52% Flexible 12,12% 6,83% 10,79% 6,87% 8,73% *Returnstot31/12/2013vanUniversalInvestLow,Medium,High,Flexible eneenselectievanfondsenuitdebetreffendeMorningstar categorie.. Peer Group 3,76% 2,03% 6,29% 3,45% 6,14% 85 Source: Morningstar
  • 86. JM Finn & Co End of June 2011, Delen Investments announced agreement to acquire a major stake in JM Fi & C D l 73 5% ith t t t i i 26 5% ( l i S 11)JM Finn & Co: Delen 73.5% with current management retaining 26.5% (closing Sep 11) 100% transaction value: 85 mio (net equity as per sep 2011: 19 mio) UK private client wealth management firmp g Established in 1945 as partnership, incorporated in 2006 305 headcount of which 190 Front Office, 45 Central Services and 70 Back Office 90 investment managers, making each independent investment decisions for their clients Head office in London, offices in Leeds, Bristol, Ipswich, Bury St Edmunds and Cardiff AuM per type18% 59%23% Discretionary (63% per Sep 13) Portfolio advisory Non portfolio advisory and execution only 86 AuM: 5.5 billion (30.09.11) 7.8 billion (31.12.13)
  • 87. Bank J.Van Breda & C: income statement (in 000) 2013 2012 2011 Net interest income 76,767 79,144 73,472 Net fee income 31,601 26,772 25,027 Other income 9,348 7,992 1,323 Gross revenues 117 716 113 908 99 822Gross revenues 117,716 113,908 99,822 Operational expenses -64,756 -62,914 -57,884 Amortisations & provisions -4,544 -3,543 -3,073 Loan loss provision -1,488 -2,391 -1,675p , , , Impairment AFS -13 -2,292 -9,802 Expenses -70,801 -71,141 -72,434 Negative goodwill 35,472 Share of profit (loss) from equity accounted investments 220 278 200 Exceptional cost* -60,112 Profit before tax 47 135 17 067 63 059Profit before tax 47,135 -17,067 63,059 Income taxes -14,760 45,049 -7,697 Profit of the period Minority interests -828 -243 -482 87 y Share of the group 31,546 27,739 54,880 * Exit Beroepskrediet statute
  • 88. Bank J.Van Breda & C: balance sheet (in 000) 2013 2012 2011 Cash & loans and advances to banks 243,164 91,104 237,881Cash & loans and advances to banks 243,164 91,104 237,881 Financial assets - Financial assets available for sale 640,743 517,209 630,919 - Financial assets held for trading and fvo 1,243 5,462 8,825 L d i bl (i l di fi l ) 3 455 495 3 306 419 3 043 941- Loans and receivables (including finance leases) 3,455,495 3,306,419 3,043,941 - Derivatives used for hedging 931 3,747 2,753 Tangible assets 33,156 31,764 31,320 Goodwill and other intangible assets 12,359 10,629 7,990Goodw ll a d ot e ta g ble assets ,359 0,6 9 ,990 Other assets 23,204 26,431 15,937 Total assets 4,410,294 3,992,765 3,979,566 Fi i l li bilitiFinancial liabilities - Deposits from credit institutions 106,320 68,647 12,818 - Deposits from clients 3,598,537 3,327,944 3,343,184 - Debt certificates (incl. bonds/ CP) 128,019 18,200 30,522( ) , , , - Subordinated liabilities 84,473 87,305 93,974 - Other 5,815 19,086 24,254 Provisions, tax and other liabilities 38,856 27,341 63,849 Mi it i t t 367 16 975 15 996Minority interests 367 16,975 15,996 Equity (group share) 447,907 427,267 394,969 Total liabilities 4,410,294 3,992,765 3,979,566 88
  • 89. Solvency of banks Bank J.Van Breda & C Bank J.Van Breda & C Evolution financial strength banks Source: IMFbanks Source: IMF 89 89
  • 90. ABK 1997-2010: Consistent track record of profitable internal growth o Stable number of branches: 40o Stable number of branches: 40 o Increase of number of relationship managers: from 49 (1998) to 135 (2010) 2010: Acquisition of ABK (Antwerps Beroepskrediet) Antwerp based niche bank catering towards small enterprises Cooperative bank 56 employees, 16 agencies L t fi l ( di g D b 2010) Last fiscal year (ending December 2010): Loans of 239.7 mio ( 231 mio as of 30.06.11) Deposits of 293.2 mio ( 308 mio as of 30.06.11) Net equity of 229.4 mioq y Net equity (after provisions and IFRS) as of May 31, 2011: 195 mio Acquisition cost for 91.76%: 57 mio Participation in ABK increased to 99 9% in Dec 2013 Participation in ABK increased to 99.9% in Dec 2013 o LT strategic rationale: Development of new client segment close to Bank J.Van Breda core clientele and competences ST financial implications: 90 o ST financial implications: o Conso equity boosted from 258 mio to 413 mio o Core tier 1 equity ratio strengthened from 11.3% to 14.6%
  • 91. Sipef: Expansion Planted area (in hectares) beneficial interest 120.000 80 000 100.000 60.000 80.000 SouthSumexpansion PNGexpansion PNG Bengkuluexpansion 40.000 Bengkulu NorthSumexpansion NorthSum 20.000 0 2005 2008 2012 2020 91 Source: Sipef company presentation
  • 92. Sipef: Palm oil 92
  • 93. AvH: long term track record of growth and value creation: Sofinimvalue creation: Sofinim NAV 600 Adjusted net asset value(in mio) 300 400 500 100 200 300 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 NAVNAV Conservative benchmark (acquisition cost + groups share of results) No transaction value nor P/E based revaluations No transaction value, nor P/E based revaluations 93
  • 94. Notes 94