Ackermans & van Haaren: Interim report first quarter 2009

Interim report on the current state of affairs of the main group companies - First quarter 2009 (Regulated information within the meaning of the Royal Decree of 14 November 2007) CONTRACTING, DREDGING AND CONCESSIONS DEME (AvH 50%) continued its high level of activity with an almost complete fleet utilization in the first quarter of 2009. The turnover and operational result were in line with 2008. DEME has also renewed its order book at a relatively high level (1,972 million euros at the end of March 2009 versus 2,192 million euros at 31.12.2008), a.o. driven by new contracts in Nigeria, Russia, Brazil, Angola, South Africa, Libya and Germany. The project in Port Rashid was cancelled by the customer early 2009, after the execution of the first phase at the end of 2008/early 2009 (impact on the order book per 31.03.2009 -286 million euros). The successful diversification of DEME towards environmental activities, maritime works (e.g. offshore wind farms) and offshore oil and gas projects supports the positive evolution to a large extent. DEME is working on a significant number of new tenders. However, on average the grant of such tender projects nowadays takes more time given the uncertain economic and financial circumstances. ALGEMENE AANNEMINGEN VAN LAERE (AvH 100%) continued to stand up relatively well despite a difficult construction climate. REAL ESTATE AND RELATED SERVICES At LEASINVEST REAL ESTATE - LRE (AvH 30.01%), the occupancy rate (98% versus 97.3% at 31.12.2008) and the rental yield (7.45% versus 7.27%) remained at a very respectable level, which resulted in a good operational real estate result. The fair value of the real estate portfolio, including project developments (due to the changes in the IFRS standard IAS 40), amounted to 570.9 million euros at 31.03.2009 (versus 563.2 million euros at 31.12.2008). The unrealised capital gain (12 million euros) on the project development Bian in Luxembourg more than compensates the negative changes in the fair value of other buildings. EXTENSA (AvH 100%) maintained a limited selling activity in the land development activities. The project development was at a normal level, but has not yet contributed to the result as there have not yet been any completions. The turnover of COBELGUARD (AvH 40%) continued to evolve successfully in very competitive market circumstances. The first quarter is traditionally a negative quarter for GROUPE FINANCIERE DUVAL (AvH 30%), due to the low season in the exploitation activities (e.g. holiday parks). Despite the clear delay in promotion activities, the order book remained at a reasonable level. ANIMA CARE (AvH 100%), the new initiative of AvH in the health & care sector, has now acquired its first nursing home. The senior care facility 'De Toekomst/Sautstraetpoorte' in Aalst has 85 licensed nursing home beds and 38 service flats. Anima Care is in discussion for the acquisition of other senior care operations, and has a pipeline of new real estate projects and options on land. Anima Care has the ambition to become a respectable player in the senior care sector with a broad offer of services, and will invest in real estate as well as in qualitative operations. FINANCIAL SERVICES Despite the extremely volatile financial markets, the net inflow of assets from existing and new clients is in line with the record growth of the previous years. The assets under management of BANK DELEN (AvH 78.75%) amounted to 10,615 million euros at 31.03.09 (against 10,343 million euros at 31.12.08). All branches of Bank Delen, as well as the network from Bank J.Van Breda & C°, contribute to the growth in the net inflow. The nomination at the beginning of 2009 of Bank Delen as 'Best Private Bank' in Belgium by Euromoney for the third consecutive year has certainly supported the confidence from the clientele. BANK J.VAN BREDA & C° (AvH 78.75%) has also shown a positive evolution in the first quarter 2009, both in volume of deposits as in off-balance sheet investments (5,263 million euros invested by clients at 31.03.2009 - of which 1,429 million euros in asset management at Bank Delen - against 5,009 million euros at 31.12.2008). The results were supported by a return to a more normal interest rate curve, which has a positive effect on the interest rate result. Despite the fact that provisions for credit losses were very low in the first quarter, the economic recession prompts us to remain cautious. PRIVATE EQUITY The private equity participations felt a stronger impact from the economic recession in the first quarter of 2009 than in the fourth quarter of 2008. This results in a mixed picture whereby the companies which are more cyclical or consumer driven showed a net loss in the first quarter. Our traditionally prudent financing structure of private equity investments allows these companies to focus on their operational priorities. So far, there have not been any new investments in private equity. The sale of the participation IDIM has resulted in a capital gain of 1.5 million euros (share AvH). OTHER INVESTMENTS In the first quarter of 2009, the plantation group SIPEF (AvH 20%) has increased its production of palm oil in Indonesia and Papua New Guinea with 13.7%. The price of palm oil started to increase again in 2009, after reaching a bottom in 4Q2008. The combination of encouraging production numbers, improving palm oil prices and lower production costs leads to an expectation of a good 2009 for Sipef, without however reaching the record level of 2008. HENSCHEL (AvH 50%) was still able to realize a very strong result in the first quarter driven by a good order book and supported by an efficiency increase. It is understood that in the current economic climate, the renewal of the order book is under pressure. In addition to the investment in SAGAR CEMENTS (AvH 14,8%), a second participation in India has recently been realized. AvH is investing, in joint venture with the Delhi-based ORIENTAL STRUCTURAL ENGINEERS, in the exploitation and production of aggregates, intended for road infrastructure as well as for the production of concrete. The joint venture owns currently a total capacity of 1.2 million tons per year of aggregates, with the ambition to substantially increase this over the coming years. This investment allows us to anticipate the expected, continuous increase of the demand for basic construction materials in India, which are driven by both economical (need for additional infrastructure) and demographic (housing) criteria. AvH & Subholdings The net cash position of AvH amounted to 143.7 million euros at 31.03.2009 (against 106.4 million euros at 31.12.2008). This position takes into account a limited negative impact from the financial markets on the share portfolio and 7.5 million euros of follow-up investments mainly in the private equity portfolio, as well as 57 million euros revenues form the sale of participations (mainly Oleon and IDIM). Prospects 2009 The present economic crisis calls for great caution. Nevertheless the board of directors is confident that most of the participations of the group are well positioned. Calendar 2009 25 May 2009 annual shareholders' meeting 27 August 2009 half year results 2009 16 November 2009 interim report Q3 2009 Ackermans & van Haaren is a diversified group active in 4 key sectors: contracting, dredging and concessions (DEME, one of the largest dredging companies in the world - Algemene Aannemingen Van Laere, a leading contractor in Belgium), Real Estate and related services (Leasinvest Real Estate, a listed real-estate investment trust - Extensa, an important land and real estate developer focused on Belgium, Luxemburg and Central Europe), private banking (Bank Delen, one of the largest independent private asset managers in Belgium - Bank J.Van Breda & C°, niche bank for entrepreneurs and liberal professions) and private equity (Sofinim, one of the largest private equity providers in Belgium, and GIB). The group concentrates on a limited number of strategic participations with an important potential for growth. The AvH share is included in the reference index BEL20, the Private Equity NXT index of Euronext Brussels and in the European DJ Stoxx index 600. Website All press releases issued by AvH and its most important group companies as well as the 'Investor Presentation' can also be consulted on the AvH website: Anyone who is interested to receive the press releases via email has to register to this website, under the 'News' section. For further information please contact: Luc Bertrand CEO - President of the Executive Committee tel: + e-mail : Jan Suykens Member of the Executive Committee tel: +32.3.897.92.36 e-mail : Tom Bamelis Member of the Executive Committee tel: +32.3.897.92.42 e-mail : This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.