ackermans & van haaren - 1h14 results: investor presentation

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Ackermans & van Haaren is a diversified group active in 5 key segments: Infrastructure & Marine Engineering (DEME, one of the largest dredging companies in the world - CFE and A.A. Van Laere, two construction groups with headquarters in Belgium), Private Banking (Delen Private Bank, one of the largest independent private asset managers in Belgium, and asset manager JM Finn in the UK - Bank J.Van Breda & C°, niche bank for entrepreneurs and liberal professions in Belgium), Real Estate, Leisure & Senior Care (Leasinvest Real Estate, a listed real-estate investment trust - Extensa, an important land and real estate developer focused on Belgium, Luxembourg and Central Europe), Energy & Resources (Sipef, an agro-industrial group in tropical agriculture) and Development Capital (Sofinim and GIB). In 2013, through its share in its participations (incl. CFE), the AvH group represented a turnover of 5.7 billion euros and employed 22,706 people. The group concentrates on a limited number of strategic participations with significant potential for growth.

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  • 1. InvestorPresentation2013AUGUST 28, 2014

2. ACKERMANS &VAN HAAREN A diversifiedgroup active inLimitednumber ofat a glance1H145 segmentsstrategicparticipationsNet result Equity Gross dividend 96 mio 2,294 mio 1.70Total payout: 57 mioMarketcapitalization PersonnelWe work for 3,085 mioShare price: 92.09(30/6/2014)22,706 growth2 3. Ackermans & van Haaren: Introduction (1/3) Family controlled public company 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 From an industrial background With a long term focus Financed with its own financial resources Working for growth3 4. Ackermans & van Haaren: Introduction (2/3) Company values Discretion Independence Common sense (Hollandse nuchterheid) Company strategy Long term vision Diversificiation 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 (7 members): meritocracy4 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 Active board representations Value creation fully aligned with management Not a holding company No holding company inefficiencies No shared financing structure / cross guarantees5 6. AvH strategy: We work for growthEnsure equity growth above 10% Focus on strategic participationsAverage annual growth of12.0% (2004-2013)Create shareholder value AvH Dividend payout of 1.70Belgian allAverage annual growth of11.3% (2004-2013)share indexAvH share: x42Stock index: x8(1984-2013)6(until 19/8/14) 7. 7 8. Consolidated group result(in mio) 1H14 1H13 2013Marine Engineering & Infrastructure 42.2 20.4 59.7Private Banking 44.6 45.0 84.5Real Estate, Leisure & Senior Care 3.6 -0.3 15.8Energy & Resources 6.9 5.6 8.7Development Capital -1.3 -6.6 -6.6Result from participations 96.0 64.1 162.1Capital gains development capital 4.9 34.0 29.5Result from participations (incl. capital gains) 100.9 98.1 191.6AvH & subholdings -4.5 -3.3 -7.2Other non-recurrent result 0.0 0.0 109.5(1)Consolidated group result 96.4 94.8 293.9(1)8(1) Incl. 109.4 mio result on the remeasurement of AvHs existing 50% stake in DEME whentaking full control over DEME in December 2013 9. Highlights 1H14The consolidated net result of AvH amounts to 96.4 million euros for 1H14 Increase by 1.6 million euros (+1.6%) over last year, primarily thanks to a substantialimprovement (+31.9 million euros) in the result of the participations, amounting to 96.0million euros (1H13: 64.1 million euros). In addition, a capital gain of 4.9 million euroswas realized on the sale of the participation in NMC. The substantial improvement in DEMEs result is reinforced by the higher shareholdingpercentage (from 50% to 60.40%) following the CFE transaction at the end of 2013. Delen Investments and Bank J.Van Breda & Co performed well again and were bothable to realize a further growth in assets under management. The sale by Extensa of the building for the Brussels Department of Environmentensured a significant increase in the result and a positive contribution from the RealEstate, Leisure & Senior Care segment. Favourable weather conditions boosted Sipefs production and its contribution to thegroup result. A clear, albeit early, improvement in results was recorded in the Development Capitalsegment. AvH realized a capital gain of 4.9 million euros on Sofinims sale of itsparticipation in NMC. Last year, capital gains accounted for a greater share of the resultth k t th 34 0 illi i th l f S9thanks to the 34.0 million euros gain on the sale of Spano. 10. Other key figuresConsolidated balance sheet AvH groupin mio) Shareholders' equity (group share) 2,293.7 2,251.5 2,003.3Net cash AvH and subholdings -14.6 -3.1 87.9(i i ) 1H14 2013 2012Key figures per sharein ) Number of shares (#) 33,496,904 33,496,904 33,496,904Net result per share 2.91 2.86 8.87Gross dividend 1.70Net equity 68.47 60.99 67.22Stock price: highest (12/5) 95.53 70.59 85.16(i 1H14 1H13 2013lowest (3/2) 78.71 62.74 62.74close (30/6) 92 09 64 45 85 161092.09 64.45 85.16 11. Pro forma group figures(based upon conso results 2013, incl. pro rataunder equity method)Group personnel per segment Consolidated turnover per segment(in mio)18,752 22,706 3,308 5,66911* Taking into account acquisition of control of CFE and DEME (both taken for 100%) 12. AvH share performance vs. BEL 20AVH AVH rebased to 100 BEL20 rebased to 10012 13. Marine Engineering & Infrastructure:Contribution to the AvH consolidated net result( mio) 1H14 1H13 2013DEME 17.237.8 53.7CFE 2.7 - -A.A. VANLAERERENT A1.0 -0.5 0.7RENT-A-PORTNMP3.00 73.81 5-0.10 8TOTAL0.720.41.559.70.842.213 14. Marine Engineering & InfrastructureCFE One of the largest and most diversified dredging and marineengineering companies in the worldDEME An industrial g group p active in , Construction, Rail and ,Road,Multitechnics, Real Estate Development and ManagementServices, Public-Private Partnership and ConcessionsVAN LAEREG l t t f l g id ti l ffi d i il(see slide 56) General contractor of large residential, office and civilconstruction projects; focus on PPS projects and parkings 1H14: Increase of turnover to 88 mio Order book at 239 mio Specialised in port development and logistics 1H14: Decrease in net result. 2014 is transition year for Dinh VuRENT-A-PORT(see slide 57)(Vietnam). Expansion to 1,600 ha expected by year-endNMP Operator of pipelines for chemicals14NM(see slide 58)Ope ato o p pel es o c e cals 1H14: Slightly higher results in line with expectations 15. DEME: key figures (1/2)(AvH 60.40%)One of the largest and most diversified dredging andmarine engineering companies in the world(in mio) 1H141H13 2013(1) (2) (2) (2)Consolidated key figuresTurnover 1,212.3 1,305.6 1,207.0 2,531.6EBITDA 191.7 215.4 181.1 437.8EBIT 90.7 104.0 71.9 216.5Net result 62.6 62.6 34.4 109.1Net cash flow 164.0 174.5 143.2 330.9Shareholder's equity 881.7 881.7 776.1 847.7Net financial position -416.3 -536.1 -821.8 -711.3Total assets 2,767.1 2,951.3 2,812.9 2,837.0Capex 40 40 190 209# personnel 4,357 4,582(1) Following the introduction of the new accounting standards IFRS10 and IFRS11, group companies jointly controlled by DEME15are accounted for using the equity method with effect from 1 January 2014.(2) In this presentation, the group companies that are jointly controlled by DEME are still proportionally integrated. Although thisis not in accordance with the new IFRS10 and IFRS11 accounting standards, it nevertheless gives a more complete picture of theoperations and assets/liabilities of those companies. In the equity accounting as applied under (1), the contribution of the groupcompanies is summarized under one single item on the balance sheet and in the income statement. 16. DEME: key figures (2/2)Evolution as % of economic turnover Capacity utilization (# weeks)* ** Turnover impacted by procurement of supplies (2013: 230 mio, 1H14: 28 mio)Valdemarsvik (Sweden) Lazaro Cardenas (Mexico) Amoras (Antwerp) SARB energy island (Abu Dhabi)16 17. DEME: breakdown of economic turnoverTurnover per typeTurnover per region Turnover per activity of customer17 18. DEME: highlightsHighlights 1H14Si ifi Significant increase of economic turnover to 1,306 mio (1H13: 1,207 mio) and netresult to 62.6 mio (1H13: 34.4 mio) driven by high activity level, good fleet utilizationand order book of 2,805 mio Impact of increase strenghtened by increase of shareholding percentage from 50% to 60.4%after acquisition of control over DEME/CFE at the end of 2013 Limited capex and positive working capital evolution resulting in lower debt Australia and Qatar according to plan. Execution of Jurong Island Westward Extension(Singapore) and installation works of Westmost Rough wind farm (UK). Works forNorthwind (Belgium), Amrumbank West and Butendiek (Germany) wind farms finalized.Second phase of Soa Rap project (Vietnam) inaugurated.Innovation at Westermost Rough (UK) Marieke in Abidjan (Africa) Northwind (Belgium)18 19. DEME: examples of projectsWaterdunen (Netherlands) Pallieter on Seine (France)19Innovation at West of Duddon Sand (UK) Pearl River in Sepetiba (Brazil) 20. DEME: order bookOrder book 1H14 maintained at a high level: 2,805 mio (vs 3,049 mio end 2013), withorders across different regions and activities Deepening of channel and turning basin of port in Sepetiba Bay (Rio de Janeiro, Brazil) Construction of approach channel and harbour basis of service port for new LNG terminal inYamal (Russia) Maintenance dredging works of Pacific entrance of Panama Canal and in channels andturning basis of Dhamra Port (India) Maintenance and deepening works in ports of Tema and Takoradi (Ghana) Cable protection works in Canada and rock installation works in China by TidewayEvolution order book ( mio)OtherMiddle East + IndiaA i20%7%20%AsiaEurope32%2021% Benelux 21. DEME: diversification of activities (1/2)Marine and civil engineeringTideway Rock dumping, landfalls and cable laying DEME (100%)GeoSea Nearshore and offshore foundation works foroffshore energy projects and oil & gas projectsDEME (100%)Scaldis Hoisting of heavy loads at sea and salvagingservicesDEME (54%), Jan DeNul, Herbosch-KiereHGO Infra Jack-pup vessels for offshore windfarm construction Hochtief SolutionsSolutionsand oil&gas services and GeoSea (50%)OWA Services for offshore wind assistance GeoSea (100%)21Innovation Flintstone Neptune 22. DEME: diversification of activities (2/2)Environmental servi