KBC ANCORA SA Regulated information, Leuven, 30 January 2015 (17.40 hrs CET)
Interim report on the first half of the financial year 2014/2015
KBC Ancora recorded a negative result of EUR 10.7 million in the first half of the financial year 2014/2015. This result was principally determined by the usual operating costs and interest charges in the first half of each financial year.
Abridged financial summary and notes[1]:
#_ftn1
Results for the first half of the financial year 2014/2015
| 1H fin. Year (x EUR 1,000) | 2014/2015 per share (in EUR) | 1H fin. Year (x EUR 1,000) | 2013/2014 per share (in EUR) | |
| Recurring financial profit/loss | -9,623 | -0.12 | 2,218 | 0.03 |
| Other recurring profit/loss | -1,073 | -0.01 | -1,180 | -0.02 |
| Profit/loss from capital operations | 0 | 0.00 | 35,955 | 0.46 |
| Extraordinary profit/loss | 0 | 0.00 | 0 | 0.00 |
| Result before tax | -10,696 | -0.14 | 36,993 | 0.47 |
| Result after tax | -10,696 | -0.14 | 36,993 | 0.47 |
| Number of shares in issue* | 78,301,314 | 78,301,314 |
* No instruments have been issued which could lead to dilution.
KBC Ancora recorded a negative result of EUR 10.7 million in the first six months of the current financial year, equivalent to EUR 0.14 per share, compared with a positive result of EUR 37.0 million in the same period in the previous financial year.
The result principally comprised the usual operating costs (EUR 1.1 million) and interest charges on debt (EUR 9.6 million compared with EUR 13.5 million in the same period in the previous financial year).
The positive result in the first half of the previous financial year was heavily influenced by the result on the sale of KBC Group shares (EUR 36.0 million) and the repurchase of a loan (EUR 15.8 million).
Balance sheet as at 31 December 2014
| (x EUR 1,000) | 31.12.2014 | *30.06.2014 |
| BALANCE SHEET TOTAL | 2,441,802 | 2,441,805 |
| Assets | ||
| Fixed assets | 2,441,766 | 2,441,766 |
| Financial fixed assets | 2,441,766 | 2,441,766 |
| Current assets | 36 | 39 |
| Liabilities | ||
| Capital and reserves | 2,028,279 | 2,038,976 |
| Issued capital | 2,021,871 | 2,021,871 |
| Legal reserve | 855 | 855 |
| Unavailable reserves | 16,249 | 16,249 |
| Earnings carried forward | 0 | 0 |
| Result for the period | -10,696 | 0 |
| Creditors | 413,523 | 402,830 |
| Amounts falling due after more than one year | 375,000 | 375,000 |
| Amounts falling due within one year | 27,174 | 26,063 |
| Accruals and deferred income | 11,349 | 1,766 |
* The balance sheet as at 30 June 2014 is shown after appropriation of profit.
The balance sheet total (EUR 2,441.8 million) remained unchanged over the past six months.
The number of shares held by KBC Ancora in KBC Group remained unchanged.
On the liabilities side of the balance sheet, capital and reserves fell by an amount equal to the negative result over the first six months of the year (EUR 10.7 million). Debt increased by almost the same amount, due almost entirely to (pro rata) interest charges and KBC Ancora's operating costs.
Interim report on the first six months of the financial year 2014/2015
Notes on the first half of the current financial year 2014/2015
Anchoring agreements in relation to KBC Group extended.
On 23 September 2014 Cera and KBC Ancora, together with MRBB and Other Permanent Shareholders, confirmed that they would be extending their collaboration as a syndicate with respect to KBC Group for a further term of ten years. The extension of the syndicate agreement came into effect on 1 December. Cera, KBC Ancora, MRBB and Other Permanent Shareholders will henceforth group together more than 40% of the total number of KBC Group shares. In this way, the shareholders concerned will continue to ensure the shareholder stability and development of the KBC group.
Composition of the shareholder syndicate
| Shareholder | Number of shares (based on transparency disclosure 1 December 2014) | % share in KBC Group (based on 417,780,658 shares) |
| KBC Ancora SCA | 77,516,380 | 18.55% |
| Cera SCRL | 11,127,166 | 2.66% |
| MRBB SCRL | 47,889,864 | 11.46% |
| Other Permanent Shareholders | 32,020,498 | 7.66% |
| TOTAL | 168,553,908 | 40.35% |
Results for the first six months of the financial year 2014/2015
KBC Ancora recorded a negative result of EUR 10.7 million in the first six months of the current financial year, compared with a positive result of EUR 37.0 million in the same period in the previous financial year.
This result was influenced principally by the following costs:
- Interest charges (EUR 9.6 million) were EUR 3.9 million lower than in the same period in the previous financial year. This reduction was due mainly to the repurchase of a long-term loan (EUR175 million) in November 2013, which reduced the amount of outstanding debt.
- Operating expenses amounted to EUR 1.1 million, EUR 0.1 million less than in the same period in the previous financial year. The recurring operating expenses consisted primarily of costs incurred within the cost-sharing association with Cera (EUR 0.8 million). In addition, there were the usual costs such as listing fees (EUR 0.1 million) and management expenses (EUR 0.1 million).
Participating interest in KBC Group, net debt position and net asset value
The number of KBC Group shares in portfolio remained unchanged during the past six months at 77,516,380. KBC Ancora holds 0.99 KBC Group shares per KBC Ancora share in issue. The average book value of the KBC Group shares is EUR 31.5 per share.
KBC Ancora's net debt amounted to EUR 5.28 per share as at 31 December 2014, an increase of EUR 0.14 per share compared with 30 June 2014.
The net asset value of one KBC Ancora share as at 31 December 2014 was thus equivalent to the price of 0.99 KBC Group shares less EUR 5.28.
Based on the closing price of the KBC Group share on 31 December 2014 (EUR 46.495), the net asset value of one KBC Ancora share amounted to EUR 40.75, and the KBC Ancora share price (EUR 26.69) was trading at a discount of 34.5% to the net asset value.
Based on the closing price of the KBC Group share on 29 January 2015 (EUR 47.985) the net asset value of one KBC Ancora share amounted to EUR 42.22, and the KBC Ancora share (EUR 26.625) was trading at a discount of 36.9% to the net asset value.
The following charts illustrate the movements in the price of the KBC Group and KBC Ancora shares and the discount of the KBC Ancora share to its net asset value.
| Trend in KBC Group and KBC Ancora share price (January - December 2014) | Trend in discount of KBC Ancora share to its net asset value (January - December 2014) |
Principal risks and uncertainties in the remaining months of the financial year
Certain risk factors could have an impact on the value of the assets held by KBC Ancora and on its ability to distribute a dividend. Reference is made in this regard to the description of the risks in the most recent annual report (page 10).
In its press release dated 17 June 2014, KBC Group announced that it would aim (in so far as the profit available for distribution in the financial year in question permits this) to distribute a dividend of up to EUR 2.00 in respect of the financial year 2014, and that it would not distribute a dividend in respect of the financial year 2015. With effect from the financial year 2016, KBC Group will aim for a dividend payout ratio (including the coupon on the government aid and issued Additional Tier 1 instruments) of at at least 50%.
KBC Group reported a net result of EUR 1.31 billion for the first nine months of 2014. The adjusted net result was EUR 1.15 billion. KBC Group will announce its annual result for the financial year 2014 on 12 February 2015.
KBC Ancora's costs in the second half of the year will consist principally of interest charges plus the usual limited operating expenses (costs within the cost-sharing association with Cera, listing costs and costs in connection with management).
If KBC Group distributes a dividend, the manager of KBC Ancora intends to distribute an interim dividend to KBC Ancora shareholders in respect of the financial year 2014/2015. The amount of that interim dividend (if paid) will be announced in a press release (on 22 May 2015, 17.40 hrs CEST).
Reference is made in this regard to the earlier statement by KBC Ancora that when fixing an interim dividend, an amount of EUR 19.7 million would be added to the unavailable reserves during the appropriation of profit for the full financial year.
Declaration by the responsible individuals
"We, the members of the Board of Directors of Almancora Société de gestion, statutory manager of KBC Ancora SCA, hereby jointly declare that, in so far as we are aware,
- the abridged financial summaries, drawn up in accordance with the applicable standards for financial statements, present a true and fair picture of the capital position, financial position and results of KBC Ancora,
- the interim financial report presents a true and fair view of the key events and principal transactions with affiliated parties during the first six months of the current financial year and of their impact on the abridged financial summaries, as well as a description of the principal risks and uncertainties during the remaining months of the financial year."
Information on the external audit
The auditor has reviewed the interim financial information. The auditor's report is appended to this interim report.
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KBC Ancora is a listed company which holds 18.6% of the shares in KBC Group and which together with Cera, MRBB and the Other Permanent Shareholders is responsible for the shareholder stability and further development of the KBC group. As core shareholders of KBC Group, these parties have signed a shareholder agreement to this effect.
Financial calendar:
22 May 2015 (17.40 hrs CEST) Announcement of interim dividend
28 August 2015 (17.40 hrs CEST) Annual press release for the financial year 2014/2015
29 September 2015 (17.40 hrs CEST) Annual report 2014/2015 available
30 October 2015 General Meeting of Shareholders
This press release is available in Dutch, French and English on the website www.kbcancora.be.
KBC Ancora Investor Relations & Press contact: Jan Bergmans
tel.: +32 (0)16 279672
e-mail: jan.bergmans@kbcancora.be
Annex: Detailed balance sheet and profit and loss account with comparative figures
| (x EUR 1,000) | 31.12.2014 | 30.06.2014 |
| BALANCE SHEET TOTAL | 2,441,802 | 2,441,805 |
| Assets | ||
| Fixed assets | 2,441,766 | 2,441,766 |
| Financial fixed assets | 2,441,766 | 2,441,766 |
| Companies with which there is a participatory relationship | 2,441,766 | 2,441,766 |
| Participating interests | 2,441,766 | 2,441,766 |
| Current assets | 36 | 39 |
| Other receivables with a term of less than one year | 33 | 32 |
| Cash at bank and in hand | 3 | 3 |
| Accruals and deferred income | 0 | 4 |
| Liabilities | ||
| Capital and reserves | 2,028,279 | 2,038,976 |
| Capital | 2,021,871 | 2,021,871 |
| Issued capital | 2,021,871 | 2,021,871 |
| Reserves | 17,104 | 17,104 |
| Legal reserve | 855 | 855 |
| Unavailable reserves | 16,249 | 16,249 |
| Earnings carried forward | 0 | 0 |
| Profit/loss for the period | -10,696 | |
| Creditors | 413,523 | 402,830 |
| Amounts falling due after more than one year | 375,000 | 375,000 |
| Financial liabilities | 375,000 | 375,000 |
| Credit institutions | 375,000 | 375,000 |
| Amounts falling due within one year | 27,174 | 26,063 |
| Financial liabilities | 26,965 | 25,839 |
| Credit institutions | 26,965 | 25,839 |
| Trade creditors | 154 | 158 |
| Suppliers | 154 | 158 |
| Liabilities in respect of taxes, remuneration and social security costs | 0 | 0 |
| Taxes | 0 | 0 |
| Other creditors | 55 | 66 |
| Accruals and deferred income | 11,349 | 1,766 |
| (x EUR 1,000) | 01.07/ -31.12.2014 | 01.07/ -31.12.2013 |
| RESULTS | -10,696 | 36,993 |
| Expenses | 10,761 | 14,762 |
| Cost of debt | 9,623 | 13,532 |
| Other financial expenses | 0 | 1 |
| Services and sundry goods | 1,136 | 1,228 |
| Miscellaneous current expenses | 1 | 1 |
| Income | 64 | 51,755 |
| Income from financial fixed assets | 0 | 0 |
| Dividend | 0 | 0 |
| Income from current assets | 0 | 1 |
| Other financial income | 0 | 15,750 |
| Other current revenues | 64 | 49 |
| Gain on realisation of financial assets | 0 | 35,955 |
Statutory auditor's report to the statutory manager of KBC Ancora Comm VA on the review of the condensed interim financial information as at 31 December 2014 and for the 6-month period then ended
Free translation of a report originally prepared in dutch
Introduction
We have reviewed the accompanying balance sheet and profit and loss account of KBC Ancora SCA as at 31 December 2014 ('the condensed interim financial information'). The Board of Directors is responsible for drawing up and publishing the condensed interim financial information in accordance with accounting practices applicable in Belgium. Our responsibility is to formulate a conclusion on the condensed interim financial information based on our review.
Scope of the review
We conducted our review in accordance with ISRE 2410: 'Review of condensed interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists in requesting information, primarily from those with financial and accounting responsibility, performing financial analyses and other review procedures.
A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing 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.
Conclusion
Based on our review, nothing came to our attention that causes us to believe that the accompanying condensed interim financial information for the period of six months ended on 31 December 2014 is not prepared, in all material respects, in accordance with accounting practices applicable in Belgium.
Brussels, 29 January 2015
KPMG Bedrijfsrevisoren
Auditors
Represented by
Olivier Macq
Auditor
[1]:
#_ftnref1 KBC Ancora's reporting is based on Belgian GAAP.
See Appendix for a detailed balance sheet and profit and loss account.
http://hugin.info/133914/R/1890704/669442.pdf
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: KBC Ancora via Globenewswire
