Ackermans & van Haaren: Interim report third quarter 2009

11/16/2009, 7:30 AM (Source: GlobeNewswire)
Interim report on the current state of affairs of the main group
companies - Third quarter 2009

CONTRACTING, DREDGING AND CONCESSIONS
Thanks to an almost full fleet utilization in the third quarter, DEME
(AvH 50%) has realized a turnover and operational cash flow in line
with the expectations. The outstanding order book remained at a high
level of 2,081 million euros (vs 2,127 million euros at 30.06.2009
and 1,906 million euros at the end of 2008), driven by several new
contracts in a.o. Venezuela, Mexico, India, Latvia and the United
Kingdom. This evolution also reflects DEME's successful strategy of
geographical spread and diversification of activities towards
environment and maritime works. The investment program is on
schedule. The trailing suction dredger Artevelde has been put into
operation early November.
In August, GeoSea (100% DEME) started operating the jack-up platform
Goliath, the largest jack-up platform of its type ever built. The
Goliath will mainly be used for the construction of wind farms at
sea, for offshore soil investigations in far-shore deep waters, and
for drilling and hammering of large-diameter piles. It is currently
deployed in an offshore wind farm construction assignment - the Alpha
Ventus project - near the German island Borkum.
Early September, Flanders Investment & Trade has awarded DEME with
the "Export Lion 2009". The title rewards an exceptional export
performance, such as growth in export, specific export strategy and
future prospects in the export area, but also an innovative approach,
growth in turnover and employment.

ALGEMENE AANNEMINGEN VAN LAERE (AvH 100%) has been able to maintain
the level of its order book in difficult market circumstances, but is
also been confronted with losses on a few problematic construction
sites.

REAL ESTATE AND RELATED SERVICES
LEASINVEST REAL ESTATE - LRE (AvH 30.01%) continued the positive
trend of the first half of the year in the third quarter, despite a
relative unfavourable market situation. Both the occupancy rate
(98.43%) and the rental yield (7.58%) as well as the fair value of
the real estate portfolio, including project developments, (536.9
million euros) increased slightly compared to the end of June 2009.
The increase of rental income was mainly driven by the retail sites
in Luxembourg which were acquired at the end of 2008. The increase of
the fair value was also influenced by the investments in ongoing
project developments (Montimmo, Canal Logistics, Cegelec). The net
debt rate decreased to 47.37%.

EXTENSA (AvH 100%) witnessed an increased activity level in the
project development activities in the third quarter. The
infrastructure works at Cederpark Hasselt have been completed,
resulting in the start of the first phase of the construction. The
sale on plan of apartments and retail sites in the new project De
Munt in Roeselare also started smoothly. In the land development
activities, a number of important new residential permits are
expected before the end of the year. The market circumstances in
Central Europe cause a delay in the realisation of the shopping
centre projects in Rumania. The land portfolio and the real estate
projects continue to represent an important potential for capital
gains in the medium long-term.
Extensa and the Luxemburg family Becca have increased their
respective shares in the project 'Cloche d'Or' from 25% to 50%.

COBELGUARD (AvH 40%) continued to perform strongly in a very
competitive market.

The exploitation activities (mainly holiday parks) of FINANCIERE
DUVAL (AvH 30%) realized the expected seasonal recovery. Despite the
fact that the order book of the real estate promotion activities
remained stable, the economic crisis clearly causes a delay in the
start of new development sites.

ANIMA CARE (AvH 100%), the new initiative of AvH in the health & care
sector, has acquired a second senior care facility in Berlare. Anima
Care now houses in total 213 residents in Aalst and Berlare, where it
also owns the property. Anima Care is in discussion regarding the
acquisition of other senior care operations, and continues to work on
its pipeline of greenfield projects.

FINANCIAL SERVICES
BANK DELEN (AvH 78.75%) has again realized a very good result in the
third quarter. The assets under management continued to increase
significantly, both as a consequence of a positive stock market
effect, as from a sharp net inflow of new assets from the branches of
Bank Delen, as well as from the Bank J.Van Breda & C° network. The
total assets under management amounted to 12,574 million euros at
30.09.2009 (11,423 million euros at 30.06.2009), a 22% increase
compared to end 2008 (10,343 million euros) and above the record
level at the end of 2007 (12,126 million euros). The clientele has
clearly confidence in the consistent and prudent investment strategy
of Bank Delen.

BANK J.VAN BREDA & C° (AvH 78.75%) also continues to realize a strong
commercial growth with its target group clients of entrepreneurs and
liberal professions. The total client assets amounted to 5,610
million euros at the end of September, a small increase compared to
the end of June 2009 (5,449 million euros) but a 12% increase over
the first nine months of the year (5,009 million euros at
31.12.2008). The volume of deposits was 2,402 million euros and the
entrusted funds amounted to 3,208 million euros. The loans to target
group clients also increased slightly in the third quarter to 1,911
million euros (1,887 million euros at 30.06.2009). The impact of the
economic recession on the credit losses still remains limited.

PRIVATE EQUITY
The private equity participations contributed slightly positive to
the AvH group result in the third quarter, despite the fact that most
cyclical and consumer driven companies still suffered from the impact
of the economic recession. A number of participations still showed an
exceptional loss as a consequence of some restructuring measures.

GROUPE FLO (GIB 47.3%) improved its operating margin in the third
quarter compared to the first half of the year. The lowered VAT
rates, productivity improvements and lower purchase prices
contributed to this result. Groupe Flo has successfully launched a
capital increase of 20 million euros in September.

The participation of 6% in I.R.I.S. has been sold to Canon in July.
On this transaction AvH realized a capital gain of approximately 3
million euros and an IRR of more than 25%, since its investment in
2007.

The participation in MANUCHAR has been increased from 20% to 30%, as
a result of exercising the warrants.


ENERGY AND MATERIALS
SIPEF (AvH 20.6%) has again succeeded in significantly increasing its
palm oil production in the third quarter. The first 9 months of 2009
showed a 16% increase compared to last year, the result of the
continued efforts related to the production and of excellent crops.
On the other hand, the price of palm oil was under a lot of pressure
and moved back and forth. Despite optimistic expectations for the
production of palm oil and an increase in the demand of rubber, the
higher production costs and irregular weather patterns may have a
mitigating effect on the results for the remainder of the year.

HENSCHEL ENGINEERING (AvH 50%) and Telemond Holding feel the delay in
the market in their turnover, but have succeeded in realizing
positive results in the third quarter thanks to a substantial
flexibility.

SAGAR CEMENTS (AvH 14.8%) has been confronted with the negative
impact of the recent floodings in Andra Pradesh on the traditional
improvement of the demand after the monsoon. The combination of the
delay in demand with the systematic increase of the capacity has led
to a pressure on the sales prices in South India. The production runs
now almost at full capacity and delivers the expected results.

Since April 2009, ORIENTAL QUARRIES & MINES (AvH 28%) operates 2
quarries in the region of Delhi (India) for the production of
aggregates. The maximum capacity has been almost fully used for the
first time in the month of October. The joint venture is already
profitable after the first half year (April 1 - September 30).

At the end of June, AvH signed an agreement for the acquisition of a
30% participation in ALCOFINA. Alcofina owns a 45.3% participation in
the Swiss trading company Alcotra, one of the largest exporters of
bio ethanol from Brazil. The approval of the competition authorities
is expected before the end of November.

AvH and Electrabel have set up a joint venture MAX GREEN, in which
AvH controls 27%, and which will focus on projects in renewable
energy. A first project is the conversion of the coal-fired power
unit in the Rodenhuize station (Ghent) into a 100% biomass unit,
which will supply green energy based on wood pellets originating from
producers who apply sustainable forestry.


AvH & Subholdings
The net cash position of AvH amounted to 135.4 million euros at the
end of the third quarter (against 123.4 million euros at 30.06.2009).
This increase can be explained by the revenues from the sale of
I.R.I.S. shares (7.9 million euros) and from the impact of the stock
exchange recovery on the investment portfolio. AvH has actually even
used the strengthening stock prices to sell approximately 680,000 KBC
shares. In the third quarter, 12.5 million euros investments have
been made, mainly for the increase of the participation in Manuchar
and the first phase of the participation in Max Green.

Outlook
"The present economic crisis still calls for great caution. DEME,
Leasinvest Real Estate, Finaxis and the new segment 'Energy and
materials' offer good prospects even in the current market
circumstances. The real estate promotion and private equity
activities remain subject to the impact of the present economic
recession and the strength of the potential recovery."


This announcement was originally distributed by Hugin. The issuer is
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