CFE : Presentatie resultaten van het eerste semester 2019

HALF YEAR RESULTS 2019

Glossary

Working capital requirement	Inventories + trade receivables and other operating receivables + other
	current assets non-current assets held for sale - other current provisions -
	trade payables and other operating liabilities - tax payables - other
	current liabilities

Capital employed	Equity in BPI segment + net financial debt in BPI segment
Net financial debt (NFD)	Non-current bonds + Non-current financial liabilities + Current bonds +
	Current financial liabilities - Cash and cash equivalents
Income from operating activities	Turnover + revenue from auxiliary activities + purchases + wages, salaries
	and social charges + other operational charges and depreciation and
	goodwill depreciation
Operating income (EBIT)	Income from operating activities + earnings from associates and joint-
	ventures
EBITDA	Income from operating activities + amortisation and depreciation + other
	non-cash items
Return on equity (ROE)	Net income, share of the group / equity, share of the group
Order book	Revenue to be generated by the projects for which the contract has
	been signed and has come into effect (I.e.: after notice to proceed has
	been given or conditions precedent have been fulfilled) and/or for
	which project financing is in place.

HALF YEAR RESULTS 2019 - Analyst presentation	2

Headlines first half 2019

Headlines first half 2019

REVENUE€ 1,847.7 mio

-0.7% (1HY2018)

NET INCOME

Share of the group

€ 42.7 mio

-17.6% (1HY2018)

1HY2019

NET

FINANCIAL€ 957.9 mio

DEBT(*)€ 747.1 mio (FY2018)

(*) Including impact of IFRS 16
HALF YEAR RESULTS 2019 - Analyst presentation	4

ORDER BOOK

€ 5,330.3 mio

-1.0% (FY2018)

Headlines first half 2019

Slight revenueincrease both at DEME and CFE Contracting.

Declining EBIT in the three operational divisions leads to a net result of € 42.7 million, € 9.1 million below 1HY2018.

High level of capexat DEME, and implementation of IFRS 16 increase the net financial debt by € 210.8 million.

Order bookis maintained at a very high level: € 5.33 billion.

HALF YEAR RESULTS 2019 - Analyst presentation	5

Outlook

At the year-end, the situation of the receivables due from the Chadian government will be reassessed in the light of the progress made in the negotiations between the Chadian authorities and the Afrexim Bank.

The Contracting division should record a moderate growth of activity in 2019, although the operating income is expected to be close to that of 2018.

100%

100%

100%

2019 is a transition

year for DEME: revenue is expected to remain stable and the EBITDA margin expressed as a percentage of revenue is expected to be close to the previous financial year.

The operating income and net result of the Real Estate Development division are expected to be higher than in the previous financial year.

HALF YEAR RESULTS 2019 - Analyst presentation	6

Key financials 2019

Key financials - first half 2019

Revenue (€ m)

Net result (€ m)

Order book (€ m)

1,847.7 1HY2019

-0.7%1HY2018

1,329.4 1,349.3

		47.4
	501.4	42.6
468.1

1HY	1HY	1HY	1HY	1HY	1HY
2018	2019	2018	2019	2018	2019

DEME

HALF YEAR RESULTS 2019 - Analyst presentation

42.7	1HY2019	5,330.3	1HY2019
	-17.6%1HY2018	-1.0%FY2018

4,010.0 3,940.0

						1,320.3 1,336.8
	7.8
4.1		4.5
-2.9		-7.4	-1.5
1HY	1HY	1HY		FY	1HY	FY	1HY
2018	2018	2019	1HY	2018	2019	2018	2019
1HY			2019
2019

1HY

2018

Contracting

BPI

Holding

8

Key financials - first half 2019

EBITDA (€ m)

EBIT (€ m)

Net financial debt (€ m)

207.0	1HY2019	61.2	1HY2019	957.9	1HY2019
	+2.4%1HY2018		-21.0%1HY2018	747.1	FY2018

																	805.7
187.1	199.1															639.5
								64.4
									55.9
		14.9	11.4									11.7							71.8		125.8	132.0
			8.6														74.2
								7.2			5.7
						-8.5				1.4					-90.0
					0.4	-3.9						-5.7	-1.8		-53.9
1HY	1HY	1HY	1HY	1HY	1HY			1HY	1HY	1HY	1HY	1HY	1HY		1HY	1HY	1HY		1HY	1HY	1HY	1HY
2018	2019	2018	2019	2018	2019		1HY	2018	2019	2018	2019	2018	2019	1HY	2018	2019		2018	2019	2018	2019
1HY	2019	1HY
						2019
												2018			1HY	2019
						2018
																2018

		DEME		Contracting		BPI		Holding
HALF YEAR RESULTS 2019 - Analyst presentation	9

Order book evolution

Order book (*)reaches € 5,330.3 million. Following projects not yet included :

1. (DEME) the immersed road and rail tunnelFehmarnbeltconnecting Denmark with Germany worth €710 million;

1. (DEME) design, fabrication and installation (EPCI Contract) of 80 steel foundations atSaint-Nazaire offshore wind farm in France.

1. (CFE Contracting) the projectNeo 2won by the consortium CFE-Cofinimmo in July 2018.

1,3201,337

8501,229

836

1,127

3,800	4,010	3,940
3,185	3,520

2,420

2014	2015	2016	2017	2018	1H2019
			Dredging		Contracting

(*) Order book of BPI and Holding & non-transferred activities are not included in the graph.

HALF YEAR RESULTS 2019 - Analyst presentation	10

Net financial debt evolution

NFD increased with € 210,8 million during 1HY2019 of which € 166.2 million relating to DEME.

First application of IFRS 16 Leasesadds € 83.5 million to DEME NFD and €15.3 million to CFE excl. DEME NFD on January, 1st2019.

												81
										0,2
										84
												724
				5		2	556
7	270	4	286
				151						16
127						15
						136
	54	48	58	64	92
2014	2015	2016	2017	2018	1H2019
		CFE excl. DEME Core NFD		CFE excl. DEME IFRS 16			DEME Core NFD		DEME IFRS 16		PPA DEME
HALF YEAR RESULTS 2019 - Analyst presentation				11

Statement of consolidated financial position

Key financials	2017	2018	1HY2019
€ M
Non-current assets	2,815.5	3,089.8	3,204.0
Current assets	1,831.4	1,859.1	2,119.3
Total assets	4,646.9	4,948.9	5,323.3
Shareholders equity	1,656.3	1,734.9	1,686.8
Non-current liabilities	875,5	913.6	1,454.2
Current liabilities	2,115.1	2,300.5	2,182.3
Total equity and liabilities	4,646.9	4,948.9	5,323.3
Capital employed	2,008.2	2,383.2	2,644.7
ROCE (EBIT/CE)	12.4%	9.54%	5.13%
Net financial debt	351.9	648.3	957.9

Note:	Distribution of dividend 2018 (€ 60.8 million).
	Fair value of derivatives instruments impacts equity with - €29.5 million in 1HY2019.
	Figures as disclosed in 2018, not restated according IFRS 16 Leases.
HALF YEAR RESULTS 2019 - Analyst presentation	12

Gare Maritime - Brussels

Architect: Neutelings Riedijk Architecten

Status:In progress

HALF YEAR RESULTS 2019 - Analyst presentation	13

Sassevaart - Terneuzen

Status:In progress

HALF YEAR RESULTS 2019 - Analyst presentation	14

Hohe See

Key financials

REVENUE€ 1,349.3 mio

+ 1.5% (1HY2018)

EBITDA

€ 199.1 mio

+6.4% (1HY2018)

1HY2019

NET

FINANCIAL€ 805.7 mio

DEBT(*)€ 639.5 mio (FY2018)

(*) Including impact of IFRS 16
HALF YEAR RESULTS 2019 - Analyst presentation	16

ORDER BOOK

€ 3,940 mio

-1.7% (FY2018)

Takeaways

Revenue slightly above 1HY2018 (+1.5%)

1. Dredging:

Capital dredging: mix of various medium size projects and the finalization of bigger projects such as the Doha port redevelopment and the execution of TTP1 in Singapore; Maintenance worksin Belgium, Africa, India and Germany.

1. Off-shore:

WF Foundations projects:Hohe Seein Germany, Hornsea Onein UK, Seamade in Belgium, Morey East in Scotland;

Cable laying projects:Hornsea and Modular OffShore Grid (MGO).

1. Infra (DIMCO):

Execution of 3 key projects in the Netherlands is ramping up: Terneuzen lock, RijnlandRoute and the Blankenburg connection.

EBITDA in 1HY2019 is 6.4%(*)above last year due to a decent occupancy rate of the float.

EBITDA marginequals 14.8%despite non-recurring expensed including costs for heavy maintenance of Innovation, write-off on receivables Senvion and pre-development costs related to deepsea harvesting of polymetallic nodules.

Solid order book

New key contracts: Lower OK Tedi River (Dredging), Elbe River (Dredging), HornSea II(UK), Scheldt & Belgian coast 2020-21.

(*) including a positive impact of € 8.6 millions due to IFRS 16
HALF YEAR RESULTS 2019 - Analyst presentation	17

Key financials

Revenue (€ m)Order book (€ m) EBITDA (€ m) EBITDA margin (% revenue)

1,349.3

3,940.0

199.1

14.8%

4,010

3,940

1,329.4	1,349.3	3,520

1,097.1

1HY	1HY	1HY	FY	FY	1HY
2017	2018	2019	2017	2018	2019

		199.1
195.4
	187.1
1HY	1HY	1HY
2017	2018	2019

17.8%		14.8%
	14.1%
1HY	1HY	1HY
2017	2018	2019

HALF YEAR RESULTS 2019 - Analyst presentation	18

Key financials

EBIT (€ m) (*)

58.5

72.3

67.0

58.5

1HY 1HY 1HY

2017 2018 2019

Net result (€ m) (*)

Capex (€ m)

Net Fin. Debt (€ m)

	44.3		252.9			805.7
								805.7
							639.5
	48.4		264.1			285.7
					252.9
46.1				233.1
		44.3
1HY	1HY	1HY	1HY	1HY	1HY	FY	FY	1HY
2017	2018	2019	2017	2018	2019	2017	2018	2019

1. Before impact of Purchase Price Accounting Adjustments 2013

HALF YEAR RESULTS 2019 - Analyst presentation	19

Key financials - Cashflow - Net financial debt

HALF YEAR RESULTS 2019 - Analyst presentation	20

World regional spread

Europe - non EU

2019: 2%

2018: 3%

Europe - EU

2019: 66%

2018: 70%

America
2019: 4%
2018: 2%		Africa
		2019:	10%
		2018:	8%

HALF YEAR RESULTS 2019 - Analyst presentation

21

Asia & Oceania

2019: 9%

2018: 13%

Middle East

2019: 5%

2018: 1%

Indian subcontinent

2019: 4%

2018: 3%

Activity spread

HALF YEAR RESULTS 2019 - Analyst presentation	22

Cotonou

Location:Benin - Africa	Project:Coastal protection works
Volume:1 million m3
	Status:In progress

INTERMEDIARY RESULTS 2019 - Analyst presentation	23

Elia's Modular Offshore Grid (MOG)

	Project:Elia's Modular Offshore Grid
Location:Zeebrugge - Belgium	subsea export cable installation
	Status:In operation September 2019

INTERMEDIARY RESULTS 2019 - Analyst presentation	24

RijnlandRoute

Location:The Netherlands

INTERMEDIARY RESULTS 2019 - Analyst presentation

Project:Reconstruction of the Leiden West motorway junction and construction of the 4 km N434 road (including 2.2 km bored tunnel)

Status:In progress

25

Blue Gate

Location:Antwerp - Belgium

Project:Sustainable business park

Status:In progress

INTERMEDIARY RESULTS 2019 - Analyst presentation	26

Capacity utilization (in weeks)

1HY2019	19.4
15.0
	40.5	Hoppers
2018
22.1
1HY2018	20.0
	Cutters (1)
12.6
		(1) Weighted average (KW)

2017

36.9

1HY2017

25.2

15.8

13.7

HALF YEAR RESULTS 2019 - Analyst presentation	27

Status of investment plan

			In service				Under construction
		•	Scheldt River			•	Spartacus
		•	Minerva				•	Orion
		•	Gulliver				•	Meuse river
		•	Livingstone			•	River Thames
		•	Apollo				•	Bengel
		•	Bonny River (2019)			•	Deugniet
(€ m)
700
600
500
400
									614
300										441
200			405	372	369			373
277	290						253
100					176		195
					99
0
2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	1HY2019
HALF YEAR RESULTS 2019 - Analyst presentation			28

Bonny River

15,016 m3

Fleet:Trailing Suction Hopper Dredger

Status:In operation end of June 2019

HALF YEAR RESULTS 2019 - Analyst presentation	29

Orion

44,180 kW

Fleet:Offshore installation vessel

Crane:5,000 ton

Status:Delivery in 2020

HALF YEAR RESULTS 2019 - Analyst presentation	30

Riverview - Gdansk

Keyfinancials

REVENUE€ 501.4 mio

+ 7.1% (1HY2018)

EBIT

• 1.4 mio

7.2 mio (in 1HY2018)

1HY2019

NET

FINANCIAL- € 53.9 mio

DEBT(*)- € 90.0 mio (FY2018)

(*) Including impact of IFRS 16
HALF YEAR RESULTS 2019 - Analyst presentation	32

ORDER BOOK

€ 1,336.8 mio

+ 1.2% (FY2018)

Takeaways

Increase of revenueof CFE Contracting is mainly driven by construction in Flanders and in Poland (+11.7%).

EBIT margin equals 0.3%.

Strong performance of CFE Polska, CLE, MBG and Cluster VMA almost offset by:

• Ongoing negotiations on claims and work complements which are not yet integrated in the results;
• Several projects in the Signalling department in Rail & Utilities segment are confronted with operational difficulties;
• Part of the inflation impact not transferred to the customers; Expenses incurred for Design & Build and PPP projects for which the execution has not yet started.

Net financial surplusis down by € -36.1 million on like-for-like basis due to the increase of the working capital requirement.

Order book.In construction, especially in Belgium, a higher level of selectivity (due to market conditions) influences the order intake (€-94.5 millions in 1HY2019). Contract Luwa- public lighting equipment of the Walloon Region's main road work - drastically increases the order book of the segment Rail & Utilities (€+88.7 millions in 1HY2019).

HALF YEAR RESULTS 2019 - Analyst presentation	33

Key financials

Revenue (€ m)	EBIT (€ m)	EBIT margin	Net result (€ m)
(% revenue)

501.4

1HY2019

1.4

1HY2019

0.28%

1HY2019

-2.9

1HY2019

468.1

1HY2018

7.2

1HY2018

Breakdown Order book

1.55%

1HY2018

4.1

1HY2018

Breakdown Revenue

(m€)

251369

(m€)

125

118

1069	968		Construction
			Multitechnics
			and Rail & Utilities

F Y 2 0 1 8 1 H Y 2 0 1 9

HALF YEAR RESULTS 2019 - Analyst presentation

34

343383

1 H Y 2 0 1 8 1 H Y 2 0 1 9

Key financials - Cashflow - Net financial surplus

HALF YEAR RESULTS 2019 - Analyst presentation	35

Construction - ZNA Cadix

65,000 m2

Location:Antwerp - Belgium

Program: Hospital

Area:65,000 m2

Architect:Robbrecht en Daem architecten & VK Architects & Engineers

Status:In progress

HALF YEAR RESULTS 2019 - Analyst presentation	36

Construction - Arts 19

11,332 m2

Location:Brussels - Belgium	Program: Offices	Architect:POLO Architects
	Area:11,332 m2	Status:In progress
HALF YEAR RESULTS 2019 - Analyst presentation	37

Construction - Tour AUREA

14,684 m2

	Program:Mixed-use (retail,	Architect:Architectes Moreno
Location:Differdange - Luxembourg	offices & residential)
	Area:14,684 m2	Status:In progress
HALF YEAR RESULTS 2019 - Analyst presentation	38

Construction - Panattoni Lodz

73,244 m2

	Program:Industrial building	Architect: Pracownia
Location:Lodz - Poland	Area:Hala/warehouse	Projektowa 'BLOK-ART'
	Status:In progress
	I/II/III/IV: 73,244 m2

HALF YEAR RESULTS 2019 - Analyst presentation	39

Multitechnics

	BU AUTOMOTIVE		Fully automated		References:Audi, Volvo, Porsche, …
			assembly lines
	HALF YEAR RESULTS 2019 - Analyst presentation	40

Multitechnics - Nike

Location:Ham - Belgium

HALF YEAR RESULTS 2019 - Analyst presentation

Project description: Electrotechnical installations, fire detection, data, CCTV, UPS, acces controle, etc.

41

Architect:Jaspers-Eyers & Partners

Status: Finished

Rail Activities - LuWa

Location:Walloon Region

HALF YEAR RESULTS 2019 - Analyst presentation

Project description:Design, modernization, financing, management and 20-year maintenance of the public lighting equipment of the Walloon Region's main road network (Plan Lumière 4.0)

Status:The network modernization will start in the second half 2019.

42

Renaissance - Liège

Key financials

	EBIT€ 5.7 mio
NET	€ 11.7 mio in 1HY2018
FINANCIAL
DEBT(*)
€ 74.2 mio
€ 71.8 mio (FY2018)

1HY2019

CAPITAL	€ 144 mio
EMPLOYED	+3.6% (FY2018)
(*) Including impact of IFRS 16
HALF YEAR RESULTS 2019 - Analyst presentation	44

NET

RESULT

• 4.5 mio
• 7.8 mio in 1HY2018

Takeaways

Sound performance of BPI,despite absence of results on the ongoing projects in Poland in 1HY2019(*).

The projects Ernest The Park (residential, in Brussels), Livingstone, Fuussbann and Kiem (residential, in Luxembourg) substantially contribute to the EBIT of € 5.7 million.

Capital employedalmost stable at € 144 million.

The principal positions under construction and on sale are:

• Zen factory,Erasmus-Gardens and Les Haut-Prés in Belgium
• Livingstone in Luxembourg
• Bulwary Ksiazece II (residential), WolaRe and Barska in Poland

Capital employed on unsold units remains extremely low (1.3%).

1. Transfer of rights of property in Poland occurs at thehand-over of the residential units to the customers; and not according to the percentage of completion.

HALF YEAR RESULTS 2019 - Analyst presentation	45

Key financials

Capital	% EBIT/
Employed (€ m)	Capital employed

144	1HY2019	8,2%	1HY2019
139	FY2018	9,5%	FY2018

200				Capital employed			20,00%			% EBIT/ Cap. Empl.
150
								15,00%
100
								10,00%
119	130	133	139	144
50
	5,00%
0
								0,00%
2015	2016	2017	2018	1H2019
	2015	2016	2017	2018	1H2019
Zen Factory - Lot/Beersel						Bulwary Ksiazece - Wroclaw			Domaine de l'Europe - Kirchberg

HALF YEAR RESULTS 2019 - Analyst presentation	46

Area of projects

		64.000 m2
		11% /11%
415.000 m2	Poland
73%	/75%

Belgium

89.000 m2

16% /14%

Grand Duchy of

Luxembourg

Belgium: Brussels, Liège, Beersel - Grand Duchy of Luxembourg: Luxembourg City, Differdange, Leudelange, Mertert - Poland: Poznan, Wroclaw, Warsaw, Gdansk

BREAKDOWN OF CAPITAL EMPLOYED 1HY2019/1FY2018

BREAKDOWN OF M2PORTFOLIO BY TYPE

Under

Design &

development

Construction

Unsold units,

Residential

Office

Retail

Other

post construction

delivery

5%

6%

78%

11%

1% / 3%

52% / 50%

47% / 47%

HALF YEAR RESULTS 2019 - Analyst presentation	47

Bavière

+/- 86,000 m2

	Program: Mixed-use		Architect:ASSAR Architects and
Location:Liège - Belgium	Area:Public space: 34,000 m²		Audex & Partners
		Delivery:2021 - 2025
	Residential: 52,000 m²

HALF YEAR RESULTS 2019 - Analyst presentation	48

Domaine des Vignes

30,000 m2

Location:Mertert - Luxembourg		Program: Mixed-use		Architect:Beiler François Fritsch
	Area:Apartments: 248 units		Delivery: 2021
		Houses: 31 units
		Retail: 3,350 m2

HALF YEAR RESULTS 2019 - Analyst presentation	49

Vilda Park

24,065 m2

Location:Poznan - Poland	Program: Mixed-use	Architect:Litoborski + Marciniak
Area:Residential: 230 units	Delivery: 2020
	Retail: 623 m2

HALF YEAR RESULTS 2019 - Analyst presentation	50

Projects under development

Key West - Brussels

Samaya - Ottignies-Louvain-la-Neuve

De Brouckère - Brussels

Leudelange - Luxembourg

Sadowa - Gdansk

WolaRe - Warsaw

HALF YEAR RESULTS 2019 - Analyst presentation	51

Holding & non-transferred activities

Key financials

EBIT(€ m)Net result (€ m) Net Financial Debt (€ m)

(1.8)	1HY2019	(1.5)	1HY2019	132.0	1HY2019
(5.7)	1HY2018	(7.5)	1HY2018	125.8	FY2018

Non- transferred activities

Revenueof € 12.9 million mainly driven by the last operational project of the water treatment plant of Brussels South.

Refinancing of receivables on Chadian authorities by Afrexim Bank is not yet implemented. CFE has received no additional payment since July, 2018; exposure remains stable since year-end 2018.

Decrease of overheads and finance charges limit the loss to - € 1.8 million at EBIT level.

Rent-A-Port and Green Off-Shore

Net result of RAP equals to - € 0.7 million. Most land handovers foreseen for the second semester 2019.

Green-OffShore net result amounts to + € 0.7 million, mainly generated by the operations of Rentelwind farm in 1HY2019.

The increase of NFDis mainly due to the investments done in Rent-A-Port in Vietnam and the consumption of provisions for losses at completion in the non-transferred activities.

HALF YEAR RESULTS 2019 - Analyst presentation	53

Green Offshore

Rentel

•	25.14%
•	309 MW

Seamade

•	17.60%
•	487 MW

	Note: CFE's percentage of detention
Rentel	includes participation of DEME

HALF YEAR RESULTS 2019 - Analyst presentation	54

Rent-A-Port

Location:Port of Duqm (Oman)	Program:Port infrastucture	Status: Finished

HALF YEAR RESULTS 2019 - Analyst presentation	55

Share performance

Share performance

AGENDA:

November 22, 2019 (*)

Publication of interim statements

February 28, 2020 (*)

Publication of year results

* date before stock exchange)

Free

Float

27.07%

	VINCI	AvH
	60.82%
SHARE PRICE:	12.11%

83.60 €

MARKET CAP:

2,116,291 K €

(29 aug. 19)

HALF YEAR RESULTS 2019 - Analyst presentation	57

CFE: a multidisciplinary contractor

100%

100%

100%

CFE Group is a Belgian industrial company that can build on more than 140 years of know-how and experience and employs currently more than 8,000 people.

The group is active in three different divisions :

Dredging, marine engineering and environmental remediation is carried out by its wholly owned subsidiary DEME. The company has fostered a pioneering approach throughout its history, being a front runner in innovation and new technologies. DEME has built a strong presence in all of the world's seas and continents, operating in more than 90 countries worldwide.

CFE Contracting encompasses the group's construction, multitechnics and rail activities in Belgium, Luxembourg and Poland. This business division specializes in the construction of public, residential and industrial buildings, electrotechnical installations, production and industrial process automation, HVAC and electrification works for high-voltage and railways networks.

Real Estate Development covers the projects developed by BPI in Belgium, Luxembourg and Poland. BPI has been a leading real estate developer offering high-quality architecture, sustainability, bespoke services, client assistance, environmental friendliness and social responsibility.

HALF YEAR RESULTS 2019 - Analyst presentation	58

Disclaimer

This presentation has been prepared by the management of CFE Group. It provides information about the Company and its subsidiaries.

This presentation may contain forward-looking objectives and statements about CFE's financial situation, operating results, business activities and expansion strategy.

These objectives and statements are based on assumptions that are dependent upon significant risk and uncertainty factors that may prove to be inexact. The information is valid only at the time of writing and CFE does not assume any obligation to update or revise the objectives on the basis of new information or future or other events, subject to applicable regulations.

This presentation has not been submitted to the Financial Services and Markets Authority for approval.

By receiving this document you agree to be bound by the foregoing limitations and restrictions.

HALF YEAR RESULTS 2019 - Analyst presentation	59