KBC ANCORA SA 
By
Interim financial report
Leuven, 29 January 2010 (17.40 hrs CET) - KBC Ancora recorded a negative result
of EUR 15.3 million in the first half of the financial year 2009/2010. This
result was in line with the result for the same period in the previous financial
year.
Abridged financial summary and notes[1]
Results for the first half of the financial year 2009/2010
+------------------------------------------------------------------------------+
| 1H fin.year 2009/2010 1H fin. year 2008/2009 |
| (A) per share (B) per share Change |
| (x EUR 1,000) (in EUR) (x EUR 1,000) (in EUR) (B)->(A)|
+------------------------------------------------------------------------------+
|Recurring financial -14,094 -0.18 -14,126 -0.18 - 0.2% |
|result |
| |
|Other recurring -1,227 -0.02 -1,204 -0.02 + 1.9% |
|result |
| |
|Result from capital 0 0.00 0 0.00 0.0% |
|operations |
| |
|Extraordinary 0 0.00 0 0.00 0.0% |
|result |
| |
|Result before taxes -15,320 -0.20 -15,330 -0.20 - 0.1% |
+------------------------------------------------------------------------------+
|Result after taxes -15,320 -0.20 -15,330 -0.20 - 0.1% |
+------------------------------------------------------------------------------+
|Number of shares in 78,301,314 78,301,314 |
|issue* |
+------------------------------------------------------------------------------+
* No financial instruments were issued which could lead to dilutions.
KBC Ancora recorded a negative result of EUR 15.3 million in the first six
months of the current financial year, or EUR 0.20 per share, in line with the
result in the same period in the previous financial year.
Both the recurring financial result (EUR -14,1 million), which relates to
interest charges, and the other recurring result (EUR -1.2 million) determined
by the usual operating costs of KBC Ancora, were virtually identical to those
recorded in the same period in the previous financial year.
Balance sheet as at 31 December 2009
+---------------------------------------------------------------------------+
| (x EUR 1,000) 31.12.2009 *30.06.2009 |
+---------------------------------------------------------------------------+
| BALANCE SHEET TOTAL 2,589,834 2,589,845 |
| |
| Assets |
| |
| Fixed assets 2,589,816 2,589,816 |
| |
| Financial fixed assets 2,589,816 2,589,816 |
| |
| Current assets 18 29 |
| |
| Liabilities |
| |
| Capital and reserves 1,977,185 1,992,505 |
| |
| Issued capital 2,021,871 3,189,854 |
| |
| Statutory reserves 0 60,455 |
| |
| Result carried forward -29,366 -1,257,804 |
| |
| Profit/loss for the period -15,320 0 |
| |
| Creditors 612,650 597,340 |
| |
| Amounts falling due after more than one year 550,000 550,000 |
| |
| Amounts falling due within one year 44,907 43,557 |
| |
| Accruals and deferrals 17,743 3,782 |
+---------------------------------------------------------------------------+
* The balance sheet as at 30.06.2009 is shown after appropriation of profit.
The balance sheet total has remained virtually unchanged over the past six
months (EUR 2,589.8 million).
The asset position also underwent virtually no changes.
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
15.3 million). At the same time, liabilities increased by a corresponding
amount.
The Extraordinary General Meeting held on 30 October 2009 approved the making
good of the non-recurring losses in the previous financial year (EUR 1,228.4
million) by drawing on the statutory reserves (EUR 60.5 million) and by means of
a formal capital reduction (EUR 1,168 million). As a result, there was a
reduction in both the issued capital and the statutory reserves, as well as in
the loss carried forward.
The increase in liabilities is due to the apportionment of interest charges
payable and KBC Ancora's operating costs.
Interim report on the first six months of the financial year 2009/2010
Highlights of the last six months
The Extraordinary General Meeting held on 30 October 2009 resolved among other
things to approve the making good of the non-recurring losses by drawing on the
statutory reserves and by means of a formal capital reduction (see above).
On 18 November 2009, KBC Group confirmed that it was continuing with its plan to
build up its existing bancassurance model, with a clear focus on its core
markets and on lowering its risk profile. This plan, which among other things
proposes a reduction in risk-weighted assets and the disposal of non-core
activities, is intended to make it possible to finance sustainable and
profitable organic growth and to repay the core capital injected by the
government within a reasonable period of time. The relevant strategic plan was
approved by the European Commission.
KBC Ancora will not receive any dividends from its participating interest in KBC
Group in the current financial year. As a result, KBC Ancora will record a loss
equivalent to the amount of its operating costs and interest charges. These
interest charges and operating costs will be financed by drawing down debt
within the existing credit facilities. As a consequence, KBC Ancora will not
distribute a dividend for the current financial year.
KBC Group has stated its intention of resuming the distribution of dividends in
2011 (for the financial year 2010).
Description of the period under review
KBC Ancora recorded a negative result (after taxes) of EUR 15.3 million in the
first half of the current financial year.
The principal component in this result was the cost of debt (EUR 14.1 million).
Interest charges remained at virtually the same level as in the same period in
the previous financial year, as the impact of the increase in short-term debt
was neutralised by the sharp fall in short-term interest rates.
As well as the cost of debt, the result was influenced by KBC Ancora's operating
costs (EUR 1.2 million). These operating costs consisted primarily of the
operating costs within the cost-sharing association between Cera and KBC Ancora,
which amounted to EUR 0.89 million, EUR 0.07 million lower than in the same
period in the previous financial year. Other costs related among other things to
listing fees and management costs.
Virtually no revenues were realised.
KBC Ancora holds 82,216,380 KBC Group shares, with an average book value of EUR
31.5 per KBC Group share. These shares are included under financial fixed
assets. The closing price of the KBC Group share as at 31 December 2009 was EUR
30.375. The Board of Directors of Almancora Société de gestion SA, statutory
manager of KBC Ancora, decided not to apply a further write-down to the value of
the participating interest in KBC Group as at 31 December 2009.
KBC Ancora's net debt position rose to EUR 7.82 per share as at 31 December
2009.
The net asset value of the KBC Ancora share corresponds to 1.05 times the price
of the KBC Group share, less the net debt per share. Based on the closing prices
of the KBC Group share (EUR 30.375) and the KBC Ancora share (EUR 16.34) on 31
December 2009, the net asset value of the KBC Ancora share amounted to EUR
24.07, a discount to the net asset value of 32.1%. Based on the closing prices
of the KBC Group share (EUR 31.71) and the KBC Ancora share (EUR 17.04) on 28
January 2010, the net asset value of the KBC Ancora share amounted to EUR
25.47, a discount to the net asset value of 33.1%.
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.
The assets of KBC Ancora consist almost entirely of a participating interest in
KBC Group. As a consequence, developments at KBC Ancora are largely dependent on
the performance of the KBC group.
KBC Group announced on 18 November 2009 that it was not planning to distribute a
dividend in respect of the financial year 2009. KBC Ancora will accordingly not
receive any dividends from its participating interest in KBC Group in the
remainder of the financial year 2009/2010, and will therefore itself not be able
to distribute any dividend for the current financial year. KBC Ancora announced
in its annual report for the financial year 2008/2009 that in its liquidity
planning it took into account the possibility that KBC Group would not
distribute a dividend for the financial year 2009.
Declaration by the responsible individuals
"We, the members of the Board of Directors of Almancora Société de gestion SA,
statutory manager of KBC Ancora SCA, hereby jointly declare that, in so far as
we are aware,
a. the abridged financial summaries, drawn up in accordance with the applicable
standards for financial statements, present a true and fair picture of the
capital position, financial position and results of KBC Ancora,
b. the interim financial report presents a true and fair view of the key events
and principal transactions with affiliated parties during the first six
months of the current financial year and of their impact on the abridged
financial summaries, as well as a description of the principal risks and
uncertainties during the remaining months of the financial year."
Information on the external audit
Report by the auditor of KBC Ancora SCA following a limited review of the
interim financial statements relating to the period ending on 31 December 2009.
We have performed a limited review of the interim financial statements of KBC
Ancora SCA as at 31 December 2009, with a balance sheet total of EUR 2,589.83
million and a loss of EUR 15.32 million. These interim statements relate to a
period of six months and were drawn up in accordance with the accounting
reference system applicable in Belgium.
Our review was conducted in accordance with the recommendations of the Belgian
Institute of Auditors (Instituut der Bedrijfsrevisoren) as these apply for a
limited review. Our review consisted primarily in the analysis, comparison and
discussion of the financial information and was therefore less thorough than a
full audit of the financial statements.
No elements emerged during this review which could potentially lead to material
changes in the interim financial statements.
Without prejudice to our statement of limited review, we would draw attention to
the fact that the value of the assets of KBC Ancora SCA, as well as its results,
are largely influenced by developments in relation to KBC Group, and therefore
also by the specific risks to which KBC Group is exposed.
Brussels, 29 January 2010
Klynveld Peat Marwick Goerdeler Reviseurs d'entreprises
Auditors
Represented by
Erik Clinck
Auditor
---------------------------------
KBC Ancora is a listed company which holds approximately 23% 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
30 April 2010 (17.40 hrs CEST): interim statement
1 September 2010 (17.40 hrs CEST): annual press release
29 October 2010: General Meeting of Shareholders
This press release is available in Dutch, French and English on the website
www.kbcancora.be <http://www.kbcancora.be/>.
KBC Ancora Investor Relations & Press contact: Jan Bergmans
tel.: +32 (0)16 27 96 72
fax: +32 (0)16 27 96 94
e-mail: jan.bergmans@kbcancora.be
Appendix: Detailed balance sheet and profit and loss account with comparative
figures
+------------------------------------------------------------------------------+
|(x EUR 1,000) 31.12.2009 30.06.2009|
+------------------------------------------------------------------------------+
|BALANCE SHEET TOTAL 2,589,834 2,589,845|
| |
| |
| |
|Assets |
| |
|Fixed assets 2,589,816 2,589,816|
| |
|Financial fixed assets 2,589,816 2,589,816|
| |
| Companies with which there is a participatory 2,589,816 2,589,816|
|relationship |
| |
| Participating interests 2,589,816 2,589,816|
| |
| |
| |
|Current assets 18 29|
| |
|Cash at bank and in hand 18 21|
| |
|Accruals and deferrals 0 7|
| |
| |
| |
|Liabilities |
| |
|Capital and reserves 1,977,185 1,992,505|
| |
|Capital 2,021,871 3,189,854|
| |
| Issued capital 2,021,871 3,189,854|
| |
|Reserves 0 60,455|
| |
| Statutory reserves 0 60,455|
| |
|Result carried forward -29,366 -1,257,804|
| |
|Profit/loss for the period -15,320 0|
| |
| |
| |
|Creditors 612,650 597,340|
| |
|Amounts falling due after more than one year 550,000 550,000|
| |
| Financial creditors 550,000 550,000|
| |
| Credit institutions 550,000 550,000|
| |
|Amounts falling due within one year 44,907 43,557|
| |
| Financial creditors 44,698 43,380|
| |
| Credit institutions 44,698 43,380|
| |
| Trade creditors 133 90|
| |
| Suppliers 133 90|
| |
| Other creditors 76 88|
| |
|Accruals and deferred income 17,743 3,782|
+------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+
|(x EUR 1,000) 01.07.2009-31.12.2009 01.07.2008-31.12.2008|
+------------------------------------------------------------------------------+
|RESULTS -15,320 -15,330|
| |
| |
| |
|Expenses 15,321 15,354|
| |
|A. Cost of creditors 14,094 14,150|
| |
|C. Services and sundry goods 1,227 1,204|
| |
|E. Sundry current costs 0 1|
| |
| |
| |
|Income 1 24|
| |
|A. Income from financial fixed 0 0|
|assets |
| |
| 1. Dividend 0 0|
| |
|B. Income from current assets 0 24|
| |
|E. Other current income 1 0|
+------------------------------------------------------------------------------+
[HUG#1378616]
Full press release (PDF version): http://hugin.info/133914/R/1378616/339065.pdf KBC ANCORA : Interim financial report (regulated information)
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