CFE : Tussentijds rapport per 30 juni 2019

Interim Report

As of June 30, 2019

Interim condensed and consolidated financial statements and notes

DEFINITIONS

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 of real estate segment + net financial debt of real estate segment
Net financial debt	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
	(after notice to proceed has been given or conditions precedent have been fulfilled) and/or for which project
	financing is in place.

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CONSOLIDATED STATEMENT OF INCOME

For the period from January 1stto June, 30th	Notes	June 2019	June 2018
(in € thousands)
Revenue		1,847,714	1,860,146
Revenue from auxiliary activities	6	48,376	31,123
Purchases		(1,083,566)	(1,117,770)
Remuneration and social security payments		(347,962)	(334,784)
Other operating expenses		(256,755)	(233,825)
Depreciation and amortisation		(157,265)	(126,150)
Income from operating activities		50,542	78,740
Earnings from associates and joint ventures	11	10,614	(1,211)
Operating income		61,156	77,529
Cost of gross financial debt	7	(1,044)	(7,091)
Other financial expenses & income	7	(4,185)	29
Net financial income/expense		(5,229)	(7,062)
Pre-tax income		55,927	70,467
Income tax expense	9	(14,297)	(20,199)
Net income for the period		41,630	50,268
Attributable to owners of non-controlling interests	8	1,106	1,581
Net income share of the group		42,736	51,849
Net income of the group per share (EUR) (diluted and basic)		1.69	2.05
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the period from January 1stto June, 30th
Notes	June 2019	June 2018
(in € thousands)
Net income share of the group		42,736	51,849
Net income for the period		41,630	50,268
Changes in fair value related to hedging instruments		(39,120)	(4,505)
Currency translation differences		276	1,904
Deferred taxes		9,615	630
Other elements of the comprehensive income to be reclassified to profit or loss		(29,229)	(1,971)
in subsequent periods
Re-measurement on defined benefit plans		0	0
Deferred taxes		0	0
Other elements of the comprehensive income not to be reclassified to profit or		0	0
loss in subsequent periods
Other elements of the comprehensive income		(29,229)	(1,971)
Comprehensive income:		12,401	48,297
- Attributable to owners of the parent		13,474	50,016
- Attributable to owners of non-controlling interests		(1,073)	(1,719)
Net income attributable to owners of the parent per share (EUR) (diluted and basic)		0.53	1.98

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

For the period from January 1stto June, 30th	Notes		June 2019		December 2018
(in € thousands)
Intangible assets			89,151		89,588
Goodwill			177,127		177,127
Property, plant and equipment	10		2,570,492		2,390,236
Investments in associates and joint ventures	11		148,765		155,792
Other non-current financial assets			104,121		171,687
Derivative instruments - Non-current assets	16		8		9
Other non-current assets			5,324		5,501
Deferred tax assets			108,998		99,909
Total non-current assets			3,203,986		3,089,849
Inventories	12		146,157		128,889
Trade and other operating receivables	13		1,174,985		1,261,298
Other operating current assets			85,604		67,561
Other non-operating current assets			16,465		12,733
Derivative instruments - Current assets	16		615		275
Assets held for sale	5		49,388		0
Cash and cash equivalents	17		646,097		388,346
Total current assets			2,119,311		1,859,102
Total assets			5,323,297		4,948,951
Share capital			41,330		41,330
Share premium		800,008		800,008
Retained earnings			905,749		923,768
Defined benefits pension plans		(25,521)		(25,521)
Hedging reserves	16		(36,671)		(7,153)
Currency translation differences		(11,298)		(11,554)
Equity attributable to owners of the parent			1,673,597		1,720,878
Non-controlling interests		13,216		13,973
Equity		1,686,813		1,734,851
Retirement benefit obligations and employee benefits			57,689		57,553
Provisions	14		35,040		35,172
Other non-current liabilities			3,212		5,725
Non-current bonds	17		29,636		29,584
Non-current financial liabilities	17		1,206,662		656,788
Derivative instruments - Non-current assets	16		12,943		9,354
Deferred tax liabilities			109,003		119,386
Total non-current liabilities		1,454,185		913,562
Current provisions	14		64,703		65,505
Trade & other operating payables			1,343,024		1,410,944
Income tax payable			45,879		44,543
Current bonds	17		0		200,221
Current financial liabilities	17		367,738		150,075
Derivative instruments - Current assets	16		11,062		10,990
Other operating current liabilities			129,610		201,609
Other non-operating current liabilities			220,283		216,651
Total current liabilities			2,182,299		2,300,538
Total equity and liabilities			5,323,297		4,948,951

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CONSOLIDATED STATEMENT OF CASH FLOWS
For the period from January 1stto June, 30th
Notes	June 2019	June 2018
(in € thousands)
Operating activities
Income from operating activities		50,542	78,740
Depreciation and amortisation of (in)tangible assets and investment property		157,265	126,150
Net provision expense		(614)	(1,844)
Impairment on assets and other non-cash items		(238)	(945)
Income/(losses) from sales of property, plant & equipment		(6,403)	(1,708)
Dividends received from associates and joint ventures		4,541	3,340
Cash flow from operating activities before changes in working capital		205,093	203,733
Decrease/(increase) in trade receivables and other current and non-current		57,890	(228,409)
receivables
Decrease/(increase) in inventories		5,525	34,502
Increase/(decrease) in trade payables and other current and non-current payables		(113,286)	23,084
Income tax paid/received		(22,390)	(23,777)
Cash flow from operating activities		132,832	9,133
Investing activities
Sales of non-current assets		11,793	2,534
Purchases of non-current assets		(262,228)	(226,739)
Acquisition of subsidiaries net of cash acquired		0	336
Capital increase of equity-accounted companies		(16,303)	(1,395)
Sale of subsidiaries		0	0
New borrowings given		8,076	(10,568)
Cash flow from investing activities		(258,662)	(235,832)
Financing activities
Interest paid		(15,780)	(16,657)
Interest received		7,245	5,112
Other financial expenses & income		(5,172)	(569)
Borrowings		506,217	390,239
Reimbursements of borrowings		(48,767)	(185,069)
Dividends paid		(60,755)	(60,715)
Cash flow from financing activities		382,988	132,341
Net increase/(decrease) in cash position		257,158	(94,358)
Cash and cash equivalents at start of the year		388,346	523,018
Exchange rate effects		593	(649)
Cash and cash equivalents at end of period		646,097	428,011

Purchases and sales of subsidiaries net of cash acquired do not include entities that are not a business combination (Real Estate segment). They are not considered as investment operations and are directly reflected in cash flows from operating activities.

Page 5

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 30 June 2019

(in € thousands)	Share capital	Share premium	Retained earnings	Defined benefits pension plans	Hedging reserves	Currency translation differences	Equity	attributableto	owners of the	parent	Non-controlling interests	Total
December 2018	41,330	800,008	923,768	(25,521)	(7,153)	(11,554)	1,720,878	13,973	1,734,851
IFRS 16 restated							0		0
December 2018(*)	41,330	800,008	923,768	(25,521)	(7,153)	(11,554)	1,720,878	13,973	1,734,851
Comprehensive			42,736		(29,518)	256	13,474	(1,073)	12,401
income for the period
Dividends paid to			(60,755)				(60,755)		(60,755)
shareholders
Dividends from non-											(531)	(531)
controlling interests
Other movements											847	847
June 2019	41,330	800,008	905,749	(25,521)	(36,671)	(11,298)	1,673,597	13,216	1,686,813

1. Amounts restated in accordance with changes in accounting method linked to the application of accounting standard IFRS 16 Leases. We refer to note 3.2.

For the period ended 31 December 2018

(in € thousands)	Share capital	Share premium	Retained earnings	Defined benefits pension plans	Hedging reserves	Currency translation differences	Equity attributableto owners of the parent	Non-controlling interests	Total
December 2017	41,330	800,008	812,993	(25,268)	(2,457)	(12,252)	1,614,354	14,421	1,628,775
Comprehensive			51,849		(3,875)	2,042	50,016	(1,719)	48,297
income for the period
Dividends paid to			(60,755)				(60,755)		(60,755)
shareholders
Dividends from non-								(518)	(518)
controlling interests
Other movements								(117)	(117)
June 2018	41,330	800,008	804,087	(25,268)	(6,332)	(10,210)	1,603,615	12,067	1,615,682

Page 6

SHARE CAPITAL AND RESERVES

The share capital on 30 June 2019 was divided into 25,314,482 ordinary shares. These shares are without nominal value. The owners of ordinary shares have the right to receive dividends and have one vote per share in Shareholders' General Meetings.

On 22 February 2019, the Board of Directors proposed a dividend of €60,755 thousand, corresponding to €2.40 gross per share. The proposal has been approved by the General Shareholders Meeting on 2 May 2019. This dividend was made payable in May 2019.

Basic earnings per share are the same as diluted earnings per share due to the absence of any potential dilution in terms of ordinary shares in issue.

Earnings per share are calculated as follows:
EARNINGS PER SHARE FOR THE PERIOD ENDED 30 JUNE 2019
	2019	2018
(in € thousands)
Net income attributable to shareholders	42,736	51,849
Comprehensive income attributable to owners of the parent	13,474	50,016
Number of ordinary shares at the balance sheet date	25,314,482	25,314,482
Net income share of the group per share (€)	1.69	2.05
Comprehensive income attributable to owners of the parent per share (€)	0.53	1.98

Page 7

NOTES TO THE INTERIM CONDENSED AND CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED JUNE 30, 2019

1. GENERAL POLICIES
2. CONSOLIDATION METHODS
3. 1. SCOPE OF CONSOLIDATION
   2. INTRAGROUP TRANSACTIONS
   3. TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN COMPANIES AND ESTABLISHMENTS
   4. FOREIGN CURRENCY TRANSACTIONS
4. VALUATION RULES AND METHODS
5. 1. RECOURSE TO ESTIMATES
   2. CHANGES IN ACCOUNTING METHOD:APPLICATION OF IFRS 16 LEASES
6. SEGMENT REPORTING
7. 1. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
   2. CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
   3. CONSOLIDATED STATEMENT OF CASH FLOWS
   4. OTHER INFORMATION
   5. GEOGRAPHICAL INFORMATION
8. ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES
9. REVENUE FROM AUXILIARY ACTIVITIES
10. NET FINANCIAL INCOME/EXEPENSE
11. NON-CONTROLLING INTERESTS
12. INCOME TAX
13. PROPERTY,PLANT AND EQUIPMENT
14. ASSOCIATES AND JOINT ARRANGEMENTS
15. INVENTORIES
16. TRADE RECEIVABLES AND OTHER OPERATING RECEIVABLES
17. PROVISIONS OTHER THAN THOSE RELATING TO RETIREMENT BENEFIT OBLIGATIONS AND NON-CURRENT EMPLOYEE BENEFITS
18. CONTINGENT ASSETS AND LIABILITIES
19. DERIVATIVE FINANCIAL INSTRUMENTS
20. NET FINANCIAL DEBT
21. 1. NET FINANCIAL DEBT,AS DEFINED BY THE GROUP,BREAKS DOWN AS FOLLOWS :
    2. DEBT MATURITY SCHEDULE
    3. CASH FLOWS RELATING TO FINANCIAL LIABILITIES
    4. CREDIT FACILITIES AND BANK TERM LOANS
    5. FINANCIAL COVENANTS
22. FINANCIAL RISK MANAGEMENT
23. 1. INTEREST RATE RISK
    2. DISTRIBUTION OF THE LONG TERM FINANCIAL DEBTS BY CURRENCY
    3. CARRYING AMOUNTS AND FAIR VALUE BY ACCOUNTING CATEGORY
24. OTHER COMMITMENTS GIVEN
25. OTHER COMMITMENTS RECEIVED
26. LITIGATION
27. RELATED PARTIES
28. SUBSEQUENT EVENTS
29. IMPACT OF FOREIGN CURRENCIES
30. RESEARCH AND DEVELOPMENT
31. SEASONAL NATURE OF THE BUSINESS
32. AUDITOR'S REPORT

Page 8

Introduction

The Board of Directors authorized the publication of the interim condensed consolidated financial statements on 28 August 2019.

MAIN TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2019AND THE FIRST SIX MONTHS OF 2018WITH EFFECT ON THE SCOPE OF THE CFE GROUP

TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2019

1. Dredging, environment, offshore and infra segment - "DEME"

During the first half year 2019, DEME acquired :

• a 100% stake in the newly created company Bonny River Shipping SA;
• a 100% stake in the newly created company DEME Offshore US Inc;
• a 100% stake in the newly created company DEME Offshore US LLC.

The acquired entities listed above have been fully consolidated.

The group DEME also acquired during the first semester 2019:

• a 50% stake in the companyDBM-Bontrup BV ;
• a 50% stake in the company BNS JV Limited ;
• a 49.99% stake in the companyCSBC-DEME Wind Engineering CO., Ltd (CDWE Taiwan).

The companies listed above have been integrated under the equity method.

During the first half year 2019, DEME disposed of all its stakes in the following entities :

• 100% of the company MDCC Insurance Broker NV, which was fully consolidated ;
• 100% of the company Offshore Manpower Singapore PTE Ltd, which was fully consolidated ;
• 51.10% of the companyB-WIND Polska s.p.zoo, which was integrated under the equity method;
• 51.10% of the companyC-WIND Polska s.p.zoo, which was integrated under the equity method.

2. Contracting segment

On 29 March 2019, the company P-Multitech BVBA was absorbed by VMA NV, 100% owned by the CFE group, with retroactive effect to 1 January 2019.

On 29 March 2019, the companies be.Maintenance SA, Etablissements Druart SA, Nizet Entreprises SA and Vanderhoydoncks NV, subsidiaries of CFE Contracting, were renamed VMA be.Maintenance SA, VMA Druart SA, VMA Nizet SA and VMA Vanderhoydoncks NV respectively.

On 15 May 2019, the company CFE Bouw Vlaanderen NV, a subsidiary of CFE Contracting, was renamed MBG NV.

On 16 May 2019, the companies Engema SA, Engetec SA, José Coghe-Werbrouck NV, Louis Stevens NV and Remacom NV, subsidiaries of CFE Contracting, were renamed Mobix Engema SA, Mobix Engetec SA, Mobix Coghe NV, Mobix Stevens NV and Mobix Remacom NV respectively.

On 28 May 2019, the corporate name "CFE Bâtiment Brabant Wallonie (CFE BBW)" was renamed "Bâtiments et Ponts construction (BPC)".

3. Real Estate segment

On 24 January 2019, BPI Real Estate Poland s.p.zoo. increased its stake in the company ACE 12 s.p.zoo. from 90% to 100%. This company was already fully consolidated.

On 19 February 2019, that same entity ACE 12 s.p.zoo., a subsidiary of BPI Real Estate Poland s.p.zoo., was renamed BPI Vilda Park s.p.zoo.

4. Holding and non-transferred activities

On 14 February 2019, the CFE group increased its stake in Rent-A-Port NV from 45% to 50%. The company remains integrated under the equity method.

On 28 February 2019, the company Liveway Ltd, 50% owned by the CFE group, was liquidated. This company was integrated under the equity method.

Page 9

TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2018

1. Dredging, environment, offshore and infra segment - "DEME"

During the first half year 2018, DEME acquired :

• a 100% stake in the company Dredeco PNG Ltd;
• a 100% stake in the company Middle East Marine Contracting Ltd;
• a 100% stake in the company Naviera Living Stone S.L.U.

The acquired companies listed above have been fully consolidated.

The group DEME has also acquired during the first semester 2018:

• a 50% stake in the newly created company Earth Moving Al Duqm LLC;
• a 15% stake in company BAAKBlankenburg-Verbinding BV.

The companies listed above have been integrated under the equity method.

Finally, the companies Europ Agregats SARL, 100% owned, and Ecoterres Holding SA, 74.90% owned were absorbed respectively by DEME Building Materials NV and DEME Environmental Contractors NV, both 100% owned.

2. Contracting segment

Nihil.

3. Real estate segment

On 1 January 2018, CFE Group, through its subsidiary BPI Real Estated Belgium SA, increased its stake in D.H.B. SA from 75.33% to 100%. This entity was already fully integrated.

On 14 May 2018, the company Foncière Sterpenich SA, subsidiary of BPI Real Estate Belgium SA, was rebranded as BPI Park West SA.

On 30 May 2018 CFE Group, through its subsidiary BPI Real Estate Poland sp.zoo, acquired a 100% stake in company BPI Sadowa sp.zoo which is fully consolidated.

On 8 June 2018, CFE Group, through its subsidiaries BPI Real Estate Belgium SA and BPI Samaya SA, acquired a 100% stake in the newly created company Wolimmo SA which is fully consolidated.

On 8 June 2018, CFE Group, through its subsidiaries BPI Real Estate Belgium SA and BPI Samaya SA, acquired a 100% stake in the newly created company Zen Factory SA which is fully consolidated.

4. Holding and non-transferred activities

Nihil.

Page 10

ACCOUNTING PRINCIPLES AND EVALUATION METHOD

1.GENERAL POLICIES

IFRS AS ADOPTED BY THE EUROPEAN UNION

The accounting principles used at 30 June 2019 are the same as that those used for the consolidated financial statements at 31 December 2018, except for the standard IFRS 16 and the interpretation IFRIC 23 Uncertainty over Income Tax Treatments, mandatorily applicable as of 1 January 2019. We refer to Note 3.2. of the present report.

Furthermore, during the annual analysis of the depreciation rules of its fleet (depreciation rates and residual value), DEME has slightly amended them. The application of these new rules has no significant impact on the consolidated financial statements of CFE.

STANDARDS AND INTERPRETATIONS APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON 1JANUARY 2019

• IFRS 16 Leases
• IFRIC 23 Uncertainty over Income Tax Treatments
• Amendments to IAS 19 Plan Amendment, Curtailment or Settlement
• Amendments to IAS 28 Long term interests in Associates and Joint Ventures
• Amendments to IFRS 9 Prepayment Features with Negative Compensation
• Annual improvements to IFRS Standards2015-2017 Cycle

STANDARDS AND INTERPRETATIONS PUBLISHED,BUT NOT YET APPLICABLE FOR THE ANNUAL PERIOD BEGINNING ON 1JANUARY 2019

The Company decided not to anticipate the application standards and interpretations here below that are not mandatory on June 30, 2019:

• Amendments to IAS 1 and IAS 8 Definition of Material (applicable for annual periods beginning on or after 1 January 2020, but not yet endorsed in the EU)
• Amendments to IFRS 3 Business Combinations (applicable for annual periods beginning on or after 1 January 2020, but not yet endorsed in the EU)
• Amendments to IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (the effective date has been deferred indefinitely, and therefore the endorsement in the EU has been postponed)
• Amendments to references to the Conceptual Framework in IFRS standards (applicable for annual periods beginning on or after 1 January 2020, but not yet endorsed in the EU)
• IFRS 14 Regulatory Deferral Accounts (applicable for annual periods beginning on or after 1 January 2016, but not yet endorsed in the EU)
• IFRS 17 Insurance Contracts (applicable for annual periods beginning on or after 1 January 2021, but not yet endorsed in the EU)

The assessment of the potential impact on the group's financial statements is still in progress.

Page 11

2.CONSOLIDATION METHODS

2.1.SCOPE OF CONSOLIDATION

Companies in which the Group holds, directly or indirectly, the majority of voting rights enabling control to be exercised, are fully consolidated.

Companies over which the Group exercises joint control with another entity are consolidated under the equity method. This applies in particular to Rent-A-Port and some entities in DEME segment and the Real Estate segment.

Changes in the scope of consolidation
Number of entities	June 2019	December 2018
Full consolidation	200	200
Equity method	143	128
Total	343	328

2.2.INTRAGROUP TRANSACTIONS

Reciprocal operations and transactions relating to assets and liabilities and income and expenses between companies that are consolidated or accounted for under the equity method are eliminated in the consolidated financial statements. This is done:

• for the full amount if the transaction is between two controlled subsidiaries;
• applying the percentage owned of a company accounted for under the equity method with respect to internal profits or losses between a fully consolidated company and a company accounted for under the equity method.

2.3.TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN COMPANIES AND ESTABLISHMENTS

In most cases, the functional currency of companies and establishments is their local currency.

The financial statements of foreign companies of which the functional currency is different from that used in preparing the Group's consolidated financial statements are translated at the closing rate for balance-sheet items and at the average rate for the period for income-statement items. Any resulting translation differences are recognized under translation differences in consolidated reserves. Goodwill relating to foreign entities is considered as comprising part of the assets and liabilities acquired and is therefore translated at the exchange rate in force at the balance sheet date.

2.4.FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are translated into euros at the exchange rate on the transaction date. At the balance sheet date, financial assets and monetary liabilities denominated in foreign currencies are translated at the closing rate. Resulting exchange gains and losses are recognized under foreign exchange gains and losses and are shown under other financial income and other financial expense in the income statement.

Foreign exchange gains and losses arising on loans denominated in foreign currency or on foreign exchange derivatives used to hedge stakes in foreign subsidiaries are recorded in currency translation differences under equity.

Page 12

3.VALUATION RULES AND METHODS

3.1.RECOURSE TO ESTIMATES

The preparation of financial statements under IFRS standards requires estimates to be used and assumptions to be made that affect the amounts shown in those financial statements, particularly as regards the following items:

• the period over whichnon-current assets are depreciated or amortized;
• the measurement of provisions and pension obligations;
• the measurement of income or losses on construction contracts using the percentage of completion method;
• estimates used in impairment tests;
• the measurement of financial instruments at fair value;
• the assessment of control;
• the classification of a company acquisition as a business combination or an acquisition of assets; and
• the classification, when a partnership enters into force, of the joint arrangement as a joint venture or a joint operation.

These estimates assume the operation is a going concern and are made on the basis of the information available at the time. Estimates may be revised if the circumstances on which they were based alter or if new information becomes available. Actual results may be different from these estimates.

3.2.CHANGES IN ACCOUNTING METHOD :APPLICATION OF IFRS 16 LEASES

The IFRS 16 standard abolishes for the lessee the distinction, which was applicable before 31 December 2018, between operating leases recognized as expenses, and finance leases recognized as tangible assets against a financial debt, and requires for all leases the recognition of a right-of-use against a financial debt. IFRS 16 will replace the standard and interpretations IAS 17, IFRIC 4, SIC 15 and SIC 27. Where according to IAS 17, the accounting treatment of leases is determined by the assessment of the transfer of the risks and rewards incidental to ownership of the asset, IFRS 16 imposes a single recognition method for leases by lessees that has a similar impact on the balance sheet as finance leases. This standard came into effect on 1 January 2019.

For the implementation of IFRS 16, the Group opted for the modified retrospective method, method B, under which the right-of-use asset equals the lease liability on 1 January 2019. The comparative financial statements were restated only with respect to the consolidated statement of financial position. The figures for 2018, presented for comparison purposes in the consolidated statement of comprehensive income, have not been restated and continue to be presented according to the accounting standards applicable in 2018.

The consolidated statement of financial position for the year ending on 31 December 2018 was impacted as follows :

	December 2018,	Restatement	December 2018,
	published	IFRS 16	after restatement
Non-current assets, including :
Property, plant and equipment	2,390,236	98,763	2,488,999
Equity attributable to owners of the parent, including :
Retained earnings	923,768	0	923,768
Liabilities, including :
Non-current financial debts	656,788	75,541	732,329
Current financial debts	150,075	23,222	173,297

Page 13

The restatements applied to the operating leases commitments of the CFE group as of 31 December 2018 in order to constitute the initial lease liability as of 1 January 2019 can be summarized as follows:

(in € thousands)	1 January 2019
Operating lease commitments as of 31 December 2018	132,882
Deduction of lease contracts expiring in 2019	(843)
Deduction of low-value assets	0
Addition of purchase options or contract extension options	0
Others	(6,831)
Lease liability - before discounting	125,208
Discounting effect	(26,445)
Lease liability as of 1 January 2019	98,763

The section "Others" is mainly related to the deduction of non-lease components which are not included in the lease debt (insurance and maintenance expenses in car leases) and to the deduction of contracts signed in 2018 for assets available for use on or after 1 January 2019.

The impact of the implementation of IFRS 16 Leases on CFE's consolidated financial statements as of 30 June 2019 can be summarized as follows:

For the period from January 1stto June, 30th	2019
(in € thousands)
Comprehensive income
Reversal of lease expenses	+12,122
Depreciation expenses and impairment of right-of-use assets	(11,660)
EBIT	+462
EBITDA	+12,122
Financial interests relating to lease liability	(1,008)
Net result	(546)
Financial position
Righ-of-use asset	97,395
Lease debt	97,940
Cash flow statement
Cash flow from financing activities	(11,910)

Page 14

4.SEGMENT REPORTING

Segment reporting is presented in respect of the group's operating segments. Segment profits, losses, assets and liabilities include items that can be attributed directly to a segment or allocated on a reasonable basis.

The CFE group consists of four operating segments:

• Dredging, environment, offshore and infra - "DEME"

Through DEME, the Dredging, environment, offshore and infra segment is active in dredging (capital dredging and maintenance dredging), installation of offshore wind farms, laying of submarine power cables, protection of marine pipelines, treatment of polluted sludge and sediments, and in the marine engineering.

• Contracting

The Contracting segment includes the construction, multitechnics and rail & utilities activities.

Construction activity is concentrated in Belgium, Luxembourg, Poland and, to a lesser extent, in Tunisia. CFE Contracting specialises in building and refurbishing office buildings, residential properties, hotels, schools, universities, car parks, shopping and leisure centres, hospitals and industrial buildings.

The Multitechnics and Rail & Utilities activities operate mainly in Belgium through two clusters:

• • the VMA cluster comprising tertiary electricity, HVAC (heating, ventilation and air conditioning), electromechanical facilities, telecom networks, automation in the automobile, pharmaceutical andagri-food industries, the automated management of technical facilities of buildings, electromechanical work for road and rail infrastructures (tunnels, etc), and the long-term maintenance of technical facilities;
  • the MOBIX cluster comprising railway (track laying and installation of catenaries) and signalling works, energy transportation and public lighting.
• Real Estate Development

The Real Estate Development segment develops real estate projects in Belgium, Luxembourg and Poland.

• Holding andnon-transferred activities

Besides the usual holding activities, this segment includes:

• participations inRent-A-Port, Green Offshore and in two Design Build Finance and Maintenance contracts in Belgium;
• contracting activities not transferred to CFE Contracting SA and DEME NV including one engineering project in Belgium and building projects in Africa (except Tunisia) and in Central Europe (except Poland).

Page 15

4.1. CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the period ended 30 June 2019		DEME		DEME	Contracting	Real Estate	Holding and	Eliminations	Consolidated
				restatem		Development	non-	between		total
(in € thousands)				ents			transferred	segments
						activities
Revenue		1,349,272			501,384	24,042	12,932	(39,916)		1,847,714
Income from operating activities		52,694		(2,294)	1,397	526	(1,886)	105		50,542
Operating income (EBIT) (*)		58,541		(2,637)	1,382	5,663	(1,898)	105		61,156
% Revenue		4.34%			0.28%	23.55%				3.31%

Financial income	(4,753)	416	(525)	(769)	402	0	(5,229)
Taxes	(10,549)	497	(3,751)	(424)	(35)	(35)	(14,297)
Net income share of the group	44,324	(1,724)	(2,894)	4,491	(1,531)	70	42,736
% Revenue	3.29%		(0.58%)	18.68%			2.31%
Non-cash items	146,398	2,294	9,967	(139)	(2,109)	0	156,411
EBITDA (*)	199,092	0	11,364	387	(3,995)	105	206,953
% Revenue	14.76%		2.27%	1.61%			11.20%

(*) We refer to Note 3.2. for the impact of IFRS 16 Leases on amortisation during the period from 1 January 2019 to 30 June 2019.

For the period ended 30 June 2018	DEME	DEME	Contracting	Real Estate	Holding and	Eliminations	Consolidated
		restatem		Development	non-	between	total
(in € thousands)		ents			transferred	segments
				activities

Revenue	1,329,416		468,116	75,474	13,706	(26,566)	1,860,146
Income from operating activities	68,895	(2,294)	7,247	9,652	(4,169)	(591)	78,740
Operating income (EBIT)	66,997	(2,636)	7,244	11,651	(5,136)	(591)	77,529
% Revenue	5.04%		1.55%	15.44%			4.17%
Financial income	(4,587)	1,450	(79)	(2,130)	(1,716)	0	(7,062)
Taxes	(15,531)	192	(3,091)	(1,741)	(70)	42	(20,199)
Net income share of the group	48,425	(994)	4,075	7,815	(6,923)	(549)	51,849
% Revenue	3.64%		0.87%	10.35%			2.79%
Non-cash items	118,205	2,294	7,619	(1,028)	(3,729)	0	123,361
EBITDA	187,100	0	14,866	8,624	(7,898)	(591)	202,101
% Revenue	14.07%		3.18%	11.43%			10.86%

Page 16

4.2.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

For the period ended 30 June 2019	DEME	Contracting	Real Estate	Holding and	Eliminations	Consolidated
			Development	non-transferred	between		total
(in € thousands)				activities	segments
ASSETS
Goodwill	155,567	21,560	0	0	0		177,127
Property, plant and equipment	2,487,263	78,347	2,316	2,566	0		2,570,492
Non-current loans to consolidated	0	0	0	20,000	(20,000)		0
group companies
Other non-current financial assets	55,453	0	22,807	25,861	0		104,121
Other non-current assets	264,012	14,556	35,037	1,284,477	(1,245,836)		352,246
Inventories	12,274	13,287	118,467	3,754	(1,625)		146,157
Cash and cash equivalents	567,688	40,110	14,868	23,431	0		646,097
Internal cash position - cash pooling	0	40,670	7,551	2,217	(50,438)		0
- assets
Other current assets	849,413	359,490	37,779	94,049	(13,674)		1,327,057
Total assets	4,391,670	568,020	238,825	1,456,355	(1,331,573)		5,323,297
EQUITY AND LIABILITIES

Equity

Non-current borrowings from consolidated group companies Non-current bonds

Non-current financial liabilities Other non-current liabilities Current bonds

Current financial liabilities

Internal cash position - cash pooling - liabilities

Other current liabilities

Total liabilities

Total equity and liabilities

1,608,529	73,050	69,437	1,183,259	(1,247,462)	1,686,813
0	0	20,000	0	(20,000)	0
0	0	29,636	0	0	29,636
1,038,076	20,558	26,873	121,155	0	1,206,662
173,520	14,620	6,882	22,865	0	217,887
0	0	0	0	0	0
335,296	4,082	8,198	20,162	0	367,738
0	2,217	11,883	36,338	(50,438)	0
1,236,249	453,493	65,916	72,576	(13,673)	1,814,561
2,783,141	494,970	169,388	273,096	(84,111)	3,636,484
4,391,670	568,020	238,825	1,456,355	(1,331,573)	5,323,297

For the period ended 31 December 2018	DEME	Contracting	Real Estate	Holding and non-	Eliminations	Consolidated
			Development	transferred	between	total
(in € thousands)				activities	segments

ASSETS

Goodwill

Property, plant and equipment

Non-current loans to consolidated group companies

Other non-current financial assets Other non-current assets Inventories

Cash and cash equivalents

Internal cash position - cash pooling - assets

Other current assets

Total assets

EQUITY AND LIABILITIES Equity

Non-current borrowings from consolidated group companies Non-current bonds

Non-current financial liabilities Other non-current liabilities Current bonds

Current financial liabilities

Internal cash position - cash pooling - liabilities

Other current liabilities

Total liabilities

Total equity and liabilities

155,567	21,560	0	0	0	177,127
2,326,304	61,526	928	1,478	0	2,390,236
0	0	0	20,000	(20,000)	0
108,066	0	35,106	28,515	0	171,687
274,058	13,217	34,923	1,274,450	(1,245,849)	350,799
15,244	16,945	94,592	3,733	(1,625)	128,889
287,394	53,440	9,197	38,315	0	388,346
0	62,808	2,793	1,889	(67,490)	0
914,328	314,783	26,180	96,214	(9,638)	1,341,867
4,080,961	544,279	203,719	1,464,594	(1,344,602)	4,948,951
1,646,910	84,781	68,108	1,182,527	(1,247,475)	1,734,851
0	0	20,000	0	(20,000)	0
0	0	29,584	0	0	29,584
494,796	10,156	21,836	130,000	0	656,788
179,572	14,712	10,923	21,983	0	227,190
200,221	0	0	0	0	200,221
148,376	1,699	0	0	0	150,075
0	1,889	11,043	54,558	(67,490)	0
1,411,086	431,042	42,225	75,526	(9,637)	1,950,242
2,434,051	459,498	135,611	282,067	(97,127)	3,214,100
4,080,961	544,279	203,719	1,464,594	(1,344,602)	4,948,951

Page 18

4.3.CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 June 2019	DEME	Contracting	Real Estate	Holding and	Consolidated
			Development	non-transferred	total
(in € thousands)				activities &
				eliminations
Cash flow from operating activities before	194,498	11,017	3,480	(3,902)	205,093
change in working capital
Net cash flow from (used in) operating	147,047	(15,365)	2,310	(1,160)	132,832
activities
Cash flow from (used in) investing activities	(240,061)	(7,673)	(214)	(10,714)	(258,662)
Cash flow from (used in) financing activities	372,863	9,685	3,448	(3,008)	382,988
Net increase/(decrease) in cash position	279,849	(13,353)	5,544	(14,882)	257,158
For the period ended 30 June 2018	DEME	Contracting	Real Estate	Holding and	Consolidated
			Development	non-transferred	total
(in € thousands)				activities &
				eliminations
Cash flow from operating activities before	187,649	15,379	10,153	(9,448)	203,733
change in working capital
Net cash flow from (used in) operating	25,336	16,981	(2,083)	(31,101)	9,133
activities
Cash flow from (used in) investing activities	(228,604)	(3,907)	325	(3,646)	(235,832)
Cash flow from (used in) financing activities	111,676	(19,781)	7,410	33,036	132,341
Net increase/(decrease) in cash position	(91,592)	(6,707)	5,652	(1,711)	(94,358)

Cash flows from financing activities include cash pooling loans from other segments. A positive amount means a use of pooled cash. This item is also influenced by external financing, especially and primarily in the segments DEME, Real Estate, Holding and non-transferred activities. The DEME segment is not part of the CFE cash pooling arrangement.

Page 19

4.4.OTHER INFORMATION
For the period ended 30 June 2019	DEME	Contracting	Real Estate	Holding and	Consolidated
			Development	non-transferred	total
(in € thousands)				activities
Depreciation (*)	(148,692)	(7,905)	(384)	(284)	(157,265)
Investments	230,807	13,294	472	90	244,663
For the period ended 30 June 2018	DEME	Contracting	Real Estate	Holding and	Consolidated
			Development	non-transferred	total
(in € thousands)				activities
Amortisation	(120,548)	(5,383)	(137)	(82)	(126,150)
Investments	186,229	4,575	185	673	191,662

(*) We refer to Note 3.2. for the impact of IFRS 16 Leases on amortisation during the period from 1 January 2019 to 30 June 2019.

The investments include the acquisitions as part of the group's investing activities and the acquisitions made as part of the operating activities of the Real Estate segment. Acquisitions through business combinations are not included in these amounts.

BREAKDOWN OF REVENUE IN THE DEME SEGMENT
	June 2019	June 2018
(in € thousands)
DEME Offshore	582,939	712,968
Capital & maintenance dredging	572,126	469,969
Environmental	76,709	65,644
Infra	89,730	48,155
Others	27,768	32,680
Total DEME	1,349,272	1,329,416
BREAKDOWN OF REVENUE IN THE CONTRACTING SEGMENT
	June 2019	June 2018
(in € thousands)
Construction	383,528	343,370
Multitechnics	79,813	86,156
Rail & Utilities	38,043	38,590
Total Contracting	501,384	468,116
4.5.GEOGRAPHICAL INFORMATION
REVENUE OF CFE GROUP FOR THE PERIOD ENDED JUNE 30, 2019
(in € thousands)	June 2019	June 2018
Belgium	770,358	566,710
Other Europe	645,873	930,721
Middle East	61,945	8,669
Other Asia	161,019	195,729
Oceania	16,466	18,067
Africa	136,178	110,558
Americas	55,875	29,692
Consolidated total	1,847,714	1,860,146

Page 20

5.ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES

ACQUISITIONS FOR THE PERIOD ENDED 30JUNE 2019

No transactions having a material impact took place during the first six months of 2019.

DISPOSALS FOR THE PERIOD ENDED 30JUNE 2019

No transactions having a material impact took place during the first six months of 2019.

In the Real Estate segment, the acquisitions and disposals carried out do not qualify as business combinations; and therefore, the total price paid is allocated to the land and buildings held in stock. The main acquisitions and disposals which occur in the Real Restate segment are described here above in the preamble.

ASSETS HELD FOR SALE

During the first half of 2019, a mandate was given to sale 100% of the shares of the company Merkur Offshore GmbH. The SPV is concessionaire for a wind farm in Germany which is 12.5% owned by DEME. At 30 June 2019, the net carrying amount of the consolidated assets in the financial statements of the CFE group, namely €49.4 million, is shown as assets held for sale.

Page 21

COMPREHENSIVE INCOME

6.REVENUE FROM AUXILIARY ACTIVITIES

Revenue from auxiliary activities amounted to €48,376 thousand (June 2018: €31,123 thousand) and primarily includes rental income, other

reimbursements and rebilling of various expenses worth €41,858 thousand (June 2018: €29,171 thousand) of which DEME accounts for €27,691

thousand, as well as gains on disposals of non-current assets worth €6,518 thousand (June 2018: €1,829 thousand) of which DEME accounts for €6,113 thousand.

7.	NET FINANCIAL INCOME/EXPENSE
As of 30 June
(in € thousands)	2019	2018
Cost of financial debt	(1,044)	(7,091)
Derivative instruments - fair value adjustments through profit and loss	0	0
Derivative instruments used as hedging instruments	0	0
Assets measured at fair value	0	0
Available-for-sale financial instruments	0	0
Assets and liabilities at amortized cost - interest income	7,242	5,376
Assets and liabilities at amortized cost - interest expense (*)	(8,286)	(12,467)
Other financial income and expense	(4,185)	29
Realized / unrealized translation gains/(losses)	(1,656)	2,459
Dividends received from non-consolidated companies	5	43
Impairment of financial assets	0	0
Defined benefit plan financial cost	0	0
Others	(2,534)	(2,473)
Net financial income/expense	(5,229)	(7,062)

(*) We refer to Note 3.2. for the impact of IFRS 16 Leases on interest expenses during the period from 1 January 2019 to 30 June 2019.

The change in realized (unrealized) exchange gains/(losses) and other as of 30 June 2019 is mainly explained by the valuation of the euro against functional currencies of DEME subsidiaries.

8.NON-CONTROLLING INTERESTS

As of 30 June 2019, the share of non-controlling interests in the income statement amounted to €1,106 thousand (June 2018: €1,581 thousand) and is primarily related to the DEME segment (€1,085 thousand).

9.INCOME TAX

The tax expenses amounted to €14,297 thousand for the first half of 2019, compared to €20,199 thousand for the first half of 2018. The effective tax rate amounted to 31.55%, compared to 28.18% as of 30 June 2018. The effective tax rate is defined as the income tax expense over the pre-tax income from which the earnings from associates and joint ventures are deducted.

Page 22

FINANCIAL POSITION

10. PROPERTY,PLANT AND EQUIPMENT

For the period ended 30 June 2019	Land and	Fixtures and	Furniture, fittings	Under	Total
(in € thousands)	buildings	equipment	and vehicles	construction
Acquisition costs
Balance at the end of the previous period	144,300	3,914,871	68,409	431,022	4,558,602
Right-of-use assets, as of 1 January 2019	72,371	5,311	21,081	0	98,763
Effects of changes in foreign exchange rates	(495)	746	(39)	1	213
Acquisitions	2,915	91,143	9,552	140,786	244,396
Transfers between asset items	32	125,230	79	(119,303)	6,038
Disposals	(215)	(80,096)	(4,065)	0	(84,376)
Changes in consolidation scope	0	0	0	0	0
Balance at the end of the period	218,908	4,057,205	95,017	452,506	4,823,636
Amortisation and impairment
Balance at the end of the previous period	(59,027)	(2,053,942)	(55,397)	0	(2,168,366)
Effects of changes in foreign exchange rates	(27)	(1,007)	(18)	0	(1,052)
Amortisation	(8,407)	(140,901)	(7,383)	0	(156,691)
Transfers between asset items	(1)	428	(104)	(6,229)	(5,906)
Disposals	99	68,876	3,667	6,229	78,871
Changes in consolidation scope	0	0	0	0	0
Balance at the end of the period	(67,363)	(2,126,546)	(59,235)	0	(2,253,144)
Net carrying amount
At January 1, 2019	85,273	1,860,929	13,012	431,022	2,390,236
At June 30, 2019	151,545	1,930,659	35,782	452,506	2,570,492

The net carrying amount of tangible assets amounted to €2,570,492 thousand as of 30 June 2019 (December 2018: €2,390,236 thousand).

As of 30 June 2019, acquisitions of tangible assets amounted to €244,396 thousand, and are mainly related to DEME (€230,797 thousand).

Of the ten vessels commissioned in 2015, 2016 and 2018, worth a total of over one billion euros, the trailing suction hopper dredgers 'Minerva' and 'Scheldt River', and the vessels 'Gulliver' (in joint venture), 'Living Stone' and 'Apollo' were delivered in 2017 and 2018. The dredger 'Bonny River' joined DEME's fleet in the first half of 2019. As of 30 June 2019, a residual amount of €253 million will be invested in vessels under construction over the next few years.

The net carrying amount of property, plant and equipment used as collateral for certain loans totalled €55,686 thousand (December 2018: €84,599 thousand).

The amounts reported under the item "Right-of-use assets, as of 1 January 2019" show the impact of the restatement of the standard on the consolidated statement of financial position as of 1 January 2019, which amounts to €98,763 thousand. We refer to Note 3.2.

The net value of right-of-use assets was €153,087 thousand as of 30 June 2019 (December 2018 : €58,785 thousand). Those assets primarily include the concessions and buildings of the DEME group, the vehicle fleet of the group, the registered offices of the subsidiaries Mobix Stevens NV, Mobix Engema SA, CFE SA, BPI Real Estate Belgium SA and Arthur Vandendorpe NV; the cranes of Benelmat and the equipment of Mobix Coghe NV.

Page 23

For the period ended 30 June 2018	Land and	Fixtures and	Furniture,	Under	Total
(in € thousands)	buildings	equipment	fittings and	construction
			vehicles
Acquisition costs
Balance at the end of the previous period	144,888	3,435,161	76,181	428,074	4,084,304
Effects of changes in foreign exchange rates	131	667	32	58	888
Acquisitions	2,309	71,225	3,803	113,319	190,656
Transfers between asset items	(1,328)	3,500	1,909	(5,136)	(1,055)
Disposals	(967)	(22,263)	(2,751)	0	(25,981)
Changes in consolidation scope	187	788	527	0	1,502
Balance at the end of the period	145,220	3,489,078	79,701	536,315	4,250,314
Amortisation and impairment
Balance at the end of the previous period	(58,599)	(1,823,759)	(63,738)	0	(1,946,096)
Effects of changes in foreign exchange rates	(112)	(344)	7	0	(449)
Amortisation	(2,700)	(118,667)	(2,987)	0	(124,354)
Transfers between asset items	4,124	213	(3,667)	0	670
Disposals	967	21,591	2,594	0	25,152
Changes in consolidation scope	(187)	3,501	(527)	0	2,787
Balance at the end of the period	(56,507)	(1,917,465)	(68,318)	0	(2,042,290)
Net carrying amount
At January 1, 2018	86,289	1,611,402	12,443	428,074	2,138,208
At June 30, 2018	88,713	1,571,613	11,383	536,315	2,208,024

11. ASSOCIATES AND JOINT ARRANGEMENTS

As of 30 June 2019, investments in associates and joint arrangements amounted to €148,765 thousand (December 2018: €155,792 thousand). CFE

group share in net result of associates and joint ventures amounted to €10,614 thousand (June 2018: €-1,211 thousand) and mainly derives from DEME activities and real estate development.

12.INVENTORIES

As of 30 June 2019, inventories amounted to €146,157 thousand (December 2018: €128,889 thousand) and broke down as follows:

(in € thousands)	June 2019	December 2018
Raw materials and auxiliary products	34,298	37,203
Impairment on inventories of raw materials and auxiliary products	(179)	(195)
Finished products and properties held for sale	112,945	92,861
Impairment on inventories of finished products	(907)	(980)
Inventories	146,157	128,889

The increase in finished products and properties held for sale is primarily attributable to the Polish activities of the Real Estate segment.

Page 24

13.TRADE RECEIVABLES AND OTHER OPERATING RECEIVABLES

As of 30 June 2019, trade receivables and other operating receivables amounted to €1,174,985 thousand (December 2018: €1,261,298 thousand). The decrease during the first half of 2019 is primarily due to the activities of the DEME group.

Regarding the risk on trade receivables, the group defined procedures in order to limit the risk. It should be noted that an important part of the consolidated sales is realized with public or semi-public customers. In addition, CFE considers that the concentration of the counterparty risk for customers is limited due to the large number of customers.

In order to reduce the current risk, the CFE group regularly monitors its outstanding receivables and adapts its position towards them. In this respect, it should be noted that CFE executed two projects in Chad: the construction of The Grand Hotel and the building of the Ministry of Finance. The operational management and maintenance of the Grand Hotel were transferred in June 2017 to the hotel operator appointed by the Chadian government. The Grand Hotel was officially opened on 1 July 2017. Following payments received in July 2018, the outstanding receivables decreased by €7.5 million from €60 million to €52.5 million (excluding VAT and receivables covered by the Credendo credit insurance group). No further payments have been received since July 2018. Moreover, the sums received locally have not yet been converted into euros and transferred to Belgium. The terms and conditions for the refinancing of the receivables relating to the Grand Hotel were formally approved by the Chadian authorities. They have yet to be approved by the Board of Directors of Afreximbank.

In accordance with the expected loss model, defined by the standard IFRS 9, impairment losses have been recognized on the receivables held by the CFE group vis-à-vis the Chadian government. The accumulated impairment losses relating to those receivables amounted to €-22 million as of 30 June 2019.

14. PROVISIONS OTHER THAN THOSE RELATING TO RETIREMENT BENEFIT OBLIGATIONS AND NON-CURRENT EMPLOYEE BENEFITS

As of 30 June 2019, these provisions amounted to €99,743 thousand, which represents a decrease of €934 thousand compared to December 2018 (€100,677 thousand).

	After-sales	Other current	Provisions for	Other non-	Total
	service	liabilities	equity method	current
(in € thousands)				liabilities
Balance at the end of the previous period	15,530	49,975	23,422	11,750	100,677
Effects of changes in foreign exchange rates	14	61	0	7	82
Discounting effect	0	0	0	0	0
Transfers between items	(115)	1	(270)	118	(266)
Additions to provisions	1,691	8,083	0	78	9,852
Used provisions	(2,139)	(8,398)	0	(65)	(10,602)
Provisions reversed unused	0	0	0	0	0
Balance at the end of the period	14,981	49,722	23,152	11,888	99,743
of which current: 64,703 thousand euros
non-current: 35,040 thousand euros

The provision for after-sales service decreased by €549 thousand to €14,981 thousand as of 30 June 2019.

The provisions for other current risks decreased by €253 thousand to €49,722 thousand as of 30 June 2019. These provisions include :

• provisions for current litigation (€6,717 thousand), provisions for social litigations (€926 thousand) and provisions for other risks (€21,422 thousand). Regards other current liabilities, given that negotiations with customers are ongoing, we cannot provide more information about the assumptions made, nor on when the outflow of funds is likely to happen;
• provisions for losses on completion (€20,657 thousand) are recognized when the expected economic benefits of certain contracts are lower than the inevitable costs attendant on compliance with obligations under those contracts. Provisions for losses on completion are used up when the related contracts are performed.

When the CFE group's share in the losses of companies consolidated under the equity method exceeds the carrying amount of the investment, the latter amount is reduced to nil and recognition of further losses is discontinued except to the extent that the Group has incurred obligations in respect of the associate. The amount of those commitments is accounted for in the non-current provisions, as the Group considers having the obligation to support those entities and their projects.

Provisions for other non-current liabilities include the provisions for liabilities not directly related to site operations in progress.

Page 25

15.CONTINGENT ASSETS AND LIABILITIES

Based on available information at the date on which the financial statements were approved by the Board of Directors, we are not aware of any contingent assets or liabilities, with the exception of contingent assets or liabilities related to construction contracts (for example, the group's claims against customers or claims by subcontractors) that can be described as normal in the dredging and construction sector and which are treated by applying the percentage-of-completion method during the recognition of revenue.

In 2018, DEME was involved in a lawsuit against Rijkwaterstaat in the Netherlands related to the execution of the Juliana Canal project. Based on the information currently available, DEME is unable to estimate the financial consequences of this litigation.

CFE also takes care that all its entities take the necessary organizational measures to ensure that the current laws and regulations are observed, including the compliance rules. DEME fully cooperates in a judicial investigation related to the circumstances surrounding the award of a contract that has in the meantime been executed in Russia. In the present circumstances, the financial impact for DEME cannot be reliably estimated.

16.DERIVATIVE FINANCIAL INSTRUMENTS

The CFE group uses derivative financial instruments mainly in order to reduce the risks linked to unfavourable movements of interest rates, foreign exchange rates, prices of commodities and other market risks. The company does not hold or sell any financial instruments for trading purposes. However, derivatives which are not eligible to be considered as hedging instruments are disclosed as financial instruments held for trading.

The change in fair value in the comprehensive income of CFE Group amounts to €-29.5 million. This change is the consequence of the decrease of medium and long-term interest rates in the EURO zone, and mainly concerns IRS hedging instruments from SPVs SeaMade and Rentel, entities consolidated under the equity method.

As of 30 June 2019, derivative financial instruments have been estimated at their fair value.

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17.NET FINANCIAL DEBT

17.1.NET FINANCIAL DEBT,AS DEFINED BY THE GROUP,BREAKS DOWN AS FOLLOWS :

		June 2019			December 2018
(in € thousands)	Non-current	Current	Total	Non-current	Current	Total
Bank loans and other financial debt	966,000	197,496	1,163,496	472,786	138,888	611,674
Bonds	29,636	0	29,636	29,584	200,221	229,805
Drawings on credit facilities	130,000	0	130,000	146,000	0	146,000
Lease debts	110,662	29,430	140,092	38,002	8,324	46,326
Total long-term financial debt	1,236,298	226,926	1,463,224	686,372	347,433	1,033,805
Short-term financial debt	0	140,812	140,812	0	2,863	2,863
Cash equivalents	0	(3,848)	(3,848)	0	(12,655)	(12,655)
Cash	0	(642,249)	(642,249)	0	(375,691)	(375,691)
Net short-term financial debt/(cash)	0	(505,285)	(505,285)	0	(385,483)	(385,483)
Total net financial debt	1,236,298	(278,359)	957,939	686,372	(38,050)	648,322
Derivative instruments used as interest-	11,608	4,685	16,293	6,168	3,143	9,311
rate hedges

The bank loans and other financial debts (€1,163,496 thousand) mainly relate to the corporate credit lines and project financing granted to DEME which are allocated to the financing of vessels.

Following the redemption at maturity on 14 February 2019 by DEME of its €200 million bond, the only bond still outstanding is that of BPI. This bond was issued on 19 December 2017 and is worth €30 million. It pays a coupon of 3.75% and matures on 19 December 2022.

The lease debts (€140,092 thousand) mainly concern the liabilities relating to the contracts that fall within the scope of IFRS 16 effective as of 1 January 2019 (€97,940 thousand), which have an impact of €98,763 thousand on the opening balance sheet (we refer to Note 17.3). As of 30 June 2019, the share of the DEME group amounts to €81,484 thousand and primarily concerns their concessions, while the Contracting, Real Estate and Holding & non-transferred activities segments account for €16,455 thousand.

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17.2.DEBT MATURITY SCHEDULE

	Less than 1	Between 1	Between 2	Between 3	Between 5	More than	June 2019
(in € thousands)	year	and 2 years	and 3 years	and 5 years	and 10 years	10 years
Bank loans and other financial debt	197,496	196,319	195,772	309,511	264,398	0	1,163,496
Bonds	0	0	0	29,636	0	0	29,636
Drawings on credit facilities	0	11,000	4,000	115,000	0	0	130,000
Lease debts	29,430	25,329	18,539	25,644	18,613	22,537	140,092
Total long-term financial debt	226,926	232,648	218,311	479,791	283,011	22,537	1,463,224
Short-term financial debt	140,812	0	0	0	0	0	140,812
Cash equivalents	(3,848)	0	0	0	0	0	(3,848)
Cash	(642,249)	0	0	0	0	0	(642,249)
Net short-term financial debt	(505,285)	0	0	0	0	0	(505,285)
Total net financial debt	(278,359)	232,648	218,311	479,791	283,011	22,537	957,939

17.3. CASH FLOWS RELATING TO FINANCIAL LIABILITIES

As of 30 June 2019, CFE's financial liabilities amounted to €1,604,036 thousand, or an increase by €567,368 thousand relative to 31 December 2018. This increased debt is primarily accounted for by €600 million worth of additional medium-term borrowing by DEME; partially compensated by the redemption at maturity by DEME of its €200 million bond. The impact of IFRS 16 Leases amounted to €98,763 thousand as of 1 January 2019. We refer to Note 3.2.

				Non-cash movements
(in € thousands)	December	Restatement	Cash flow	Change in	Other	Total non-	June 2019
	2018	IFRS 16 at 1		consolidation	changes	cash
		January 2019		scope		movements
Non-current financial liabilities
Bonds	29,584	0	0	0	52	52	29,636
Other non-current financial	656,788	75,541	570,711	0	(96,378)	(96,378)	1,206,662
liabilities
Current financial liabilities
Bonds	200,221	0	(200,000)	0	(221)	(221)	0
Other current financial liabilities	150,075	23,222	86,739	0	107,702	107,702	367,738
Total	1,036,668	98,763	457,450	0	11,155	11,155	1,604,036

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17.4.CREDIT FACILITIES AND BANK TERM LOANS

As of 30 June 2019, CFE SA has confirmed long-term bank credit facilities of €204 million of which €110 million were drawn as of 30 June 2019. CFE SA also has the possibility of issuing commercial papers up to an amount of €50 million. This form of financing was drawn on to an amount of €30 million as of 30 June 2019.

DEME has confirmed bank credit facilities (revolving credit facilities) of €95 million and has the possibility of issuing commercial papers up to an amount of €125 million. As of 30 June 2019, DEME has issued €110 million worth of commercial papers. The confirmed credit facilities have not been used.

As of 30 June 2019, BPI Real Estate Belgium SA has confirmed long-term bank credit facilities of €40 million of which €20 million were drawn as of 30 June 2019. BPI Real Estate Belgium SA also has the possibility of issuing commercial papers up to an amount of €40 million. This form of financing was drawn on to an amount of €8 million as of 30 June 2019.

17.5.FINANCIAL COVENANTS

Bilateral loans are subject to specific covenants that take into account factors such as financial debt and the ratio of debt to equity or non-current assets, as well as cash flow. The group complied with all these covenants as at 30 June 2019.

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18.FINANCIAL RISK MANAGEMENT

18.1.INTEREST RATE RISK

The policy and the risk management procedures defined by the group are the same as those described in the 2018 annual report.

The impact of the risk coverage in regards to changes in interest rates on financial debts, excluding lease debts, can be summarized as follows :

				Effective average interest rate beforeconsidering derivative products
				Fixed rate		Floating rate				Total
	Type of debts			Amounts	Quota	Rate	Amounts	Quota	Rate	Amounts	Quota	Rate
	Bank loans and other	56,092	58.59%	1.22%	1,107,404	90.22%	0.70%	1,163,496	87.93%	0.73%
	financial debt
	Bonds			29,636	30.96%	3.75%	0	0.00%	0.00%		29,636		2.24%	3.75%
	Drawings on credit	10,000	10.45%	1.40%	120,000	9.78%	1.02%		130,000		9.83%	1.02%
	facilities
	Total			95,728	100%	2.02%	1,227,404	100%	0.73%	1,323,132		100%	0.82%
					Effective average interest rate afterconsidering floating derivative products
				Fixed rate		Floating rate		Floating rate capped + inflation			Total
Type of debts	Amounts	Quota	Rate	Amounts	Quota	Rate	Amounts		Quota		Rate	Amounts	Quota	Rate
Bank loans and other	1,134,561	92.08%	1.08%	28,935	31.82%	1.15%		0	0.00%	0.00%	1,163,496	87.93%	1.08%
financial debt
Bonds	29,636	2.41%	3.75%	0	0.00%	0.00%		0	0.00%	0.00%	29,636	2.24%	3.75%
Drawings on credit	68,000	5.52%	1.50%	62,000	68.18%	1.17%		0	0.00%	0.00%	130,000	9.83%	1.17%
facilities
Total	1,232,197	100%	1.17%	90,935	100%	1.16%		0	0.00%	0.00%	1,323,132	100%	1.15%

18.2.DISTRIBUTION OF THE LONG TERM FINANCIAL DEBTS BY CURRENCY

The outstanding debts (excluding lease liabilities which are mostly in euros) by currency are as follows :

(in € thousands)	June 2019	December 2018
Euro	1,323,132	987,479
US dollar	0	0
Other currencies	0	0
Total long term debts	1,323,132	987,479

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18.3. CARRYING AMOUNTS AND FAIR VALUE BY ACCOUNTING CATEGORY

For the period ended 30 June 2019	FAMMFV/	FAMMFV/	Loans and	Total of	Fair value	Fair value
(in € thousands)	FLFVPL (3):	FLFVPL (3):	trade	carrying	measurements	of the class
	Derivatives	Derivatives	receivables at	amount	of financial
	designated as	designated as	amortized		assets by
	hedging	hedging	costs		level
	instruments	instruments
Non-current financial assets	8		104,121	104,129		104,129
Investments (1)			6,562	6,562	Level 2	6,562
Financial loans and receivables (1)			97,559	97,559	Level 2	97,559
Derivatives	8			8	Level 2	8
Current financial assets	514	101	1,821,082	1,821,697		1,821,697
Trade and other receivables			1,174,985	1,174,985	Level 2	1,174,985
Derivatives	514	101		615	Level 2	615
Cash equivalents (2)			3,848	3,848	Level 1	3,848
Cash at bank and in hand (2)			642,249	642,249	Level 1	642,249
Total assets	522	101	1,925,203	1,925,826		1,925,826
Non-current financial debts	1,335	11,607	1,236,298	1,249,240		1,261,049
Bonds			29,636	29,636	Level 1	29,636
Financial debts			1,206,662	1,206,662	Level 2	1,218,471
Derivatives	1,335	11,607		12,942	Level 2	12,942
Current financial liabilities	3,705	7,357	1,710,762	1,721,824		1,724,239
Trade payables and other operating debts			1,343,024	1,343,024	Level 2	1,343,024
Bonds				0	Level 1	0
Financial debts			367,738	367,738	Level 2	370,153
Derivatives	3,705	7,357		11,062	Level 2	11,062
Total liabilities	5,040	18,964	2,947,060	2,971,064		2,985,288

For the period ended 31 December 2018	FAMMFV/	FAMMFV/	Loans and	Total of	Fair value	Fair value
(in € thousands)	FLFVPL (3):	FLFVPL (3):	trade	carrying	measurements	of the class
	Derivatives	Derivatives	receivables at	amount	of financial
	designated as	designated as	amortized		assets by
	hedging	hedging	costs		level
	instruments	instruments
Non-current financial assets		9	171,687	171,696		171,696
Investments (1)			5,758	5,758	Level 2	5,758
Financial loans and receivables (1)			165,929	165,929	Level 2	165,929
Derivatives		9		9	Level 2	9
Current financial assets	257	18	1,649,644	1,649,919		1,649,919
Trade and other receivables			1,261,298	1,261,298	Level 2	1,261,298
Derivatives	257	18		275	Level 2	275
Cash equivalents (2)			12,655	12,655	Level 1	12,655
Cash at bank and in hand (2)			375,691	375,691	Level 1	375,691
Total assets	257	27	1,821,331	1,821,615		1,821,615
Non-current financial debts	3,185	6,169	686,372	695,726		702,044
Bonds			29,584	29,584	Level 1	29,584
Financial debts			656,788	656,788	Level 2	663,106
Derivatives	3,185	6,169		9,354	Level 2	9,354
Current financial liabilities	3,170	7,820	1,761,240	1,772,230		1,781,768
Trade payables and other operating debts			1,410,944	1,410,944	Level 2	1,410,944
Bonds			200,221	200,221	Level 1	200,880
Financial debts			150,075	150,075	Level 2	158,954
Derivatives	3,170	7,820		10,990	Level 2	10,990
Total liabilities	6,355	13,989	2,447,612	2,467,956		2,483,812

1. Included in items "Othernon-current financial assets" and "Other non-current assets".
2. Included in item "Cash and cash equivalents".
3. FAMMFV: Financial assets mandatorily measured at fair value through profit and loss
   FLFVPL: Financial liabilities measured at fair value through profit and loss

The fair value of financial instruments can be classified into three levels (1 to 3) based on the degree to which the inputs to the fair value measurements are observable:

• Fair value measurements of level 1 are based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
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• Fair value measurements of level 2 are based on inputs, other than quoted prices included within level 1, that are observable for the asset or liability, either directly (through prices) or indirectly (through input derived from prices);
• Fair value measurements of level 3 are based on valuation techniques comprising inputs which are unobservable for the asset or liability.

The fair value of financial instruments has been determined using the following methods:

• Forshort-term financial instruments, such as trade receivables and payables, the fair value is considered not to be significantly different from the carrying amount measured at amortized cost;
• For floating rate liabilities, the fair value is considered not to be significantly different from the carrying amount measured at amortized cost;
• For derivative financial instruments (foreign currency, interest rate or forecasted cash flows), the fair value is determined using valuation models discounting future cash flows based on future interest rate curves, foreign currency curves or other forward prices;
• For the other derivative instruments, the fair value is determined by discounting future estimated cash flows;
• For the quoted bonds issued by DEME and BPI, the fair value is based on the quoted price at reporting date;
• For fixed rate liabilities, the fair value is based on the discounted cash flows based on the market interest rates at the closing date.

19.OTHER COMMITMENTS GIVEN

Total commitments given by the CFE Group as of 30 June 2019, other than real security interests, totalled €1,316,429 thousand (2018: €1,450,914 thousand). These commitments break down as follows :

(in € thousands)		June 2019		December 2018
Performance guarantees and performance bonds (a)		1,150,256		1,273,793
Bid bonds (b)		11,793		13,110
Repayment of advance payments (c)		1,100		1,206
Retentions (d)		15,769		17,491
Deferred payments to subcontractors and suppliers (e)		48,870		64,999
Other commitments given - including €69,130 thousand of corporate guarantees at DEME		88,641		80,315
Total		1,316,429		1,450,914

1. Guarantees given in relation to the performance of works contracts. If the construction entity fails to perform, the bank (or insurance company) undertakes to compensate the customer to the extent of the guarantee.
2. Guarantees provided as part of tenders relating to works contracts.
3. Guarantees provided by a bank to a customer guaranteeing the repayment of advance payments in relation to contracts (mainly at DEME).
4. Security provided by a bank to a client to replace the use of retention money.
5. Guarantee covering the settlement of a debt to a supplier or subcontractor.

20.OTHER COMMITMENTS RECEIVED
(in € thousands)		June 2019		December 2018
Performance guarantees and performance bonds		525,899		512,354
Other commitments received		3,352		3,154
Total		529,251		515,508

21.LITIGATION

The CFE group is exposed to a number of claims that may be regarded as normal in the dredging and construction industries. In most cases, the CFE group seeks to conclude a transaction agreement with the counterparty, and this substantially reduces the number of legal proceedings.

The CFE Group tries to recover amounts receivable from its customers. However, it is not possible to estimate these potential assets.

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22.RELATED PARTIES

• Ackermans & van Haaren (AvH) owns 15,396,511 shares of CFE as of 30 June 2019 and is the main shareholder of the CFE group with a stake of 60.82%.
• Loans were granted to some members of the executive committee of CFE Contracting SA and BPI Real Estate Belgium SA in the framework of the stock option plans granted to these members.
• Dredging Environmental & Marine Engineering NV and CFE SA concluded a service contract with Ackermans & van Haaren NV on 26 November 2001 and on 11 June 2018 respectively. The remuneration due by Dredging Environmental & Marine Engineering NV, 100% subsidiary of CFE SA, and by CFE SA in accordance with that agreement amounted to €1,215 thousand and €663 thousand per year respectively.
• There were no transactions with the companies Trorema SPRL, Frédéric Claes SA, 8822 SPRL, D2C Partners, Artist Valley SA, Almacon SPRL, MSQ SPRL, Renaud Bentégeat Conseil SASU, without prejudice to the invoicing of these companies relating to the provision of services.
• As of 30 June 2019, the CFE group has joint control overRent-A-Port NV, Green Offshore NV and their subsidiaries.
• Transactions with related parties concerned mainly transactions with companies in which CFE has a significant influence or a joint control. These transactions are concluded at arm's length.
• In the first half of 2019, there was no major changes in the nature of transactions with related parties compared to 31 December 2018. Commercial and financing transactions between the group and associates or joint ventures consolidated under the equity method are as follows:

(in € thousands)	June 2019	December 2018
Assets with related parties	231,338	237,937
Non-current financial assets	151,396	170,380
Trade and other receivables	47,682	50,072
Other current assets	32,260	17,485
Liabilities with related parties	67,876	37,646
Other non-current liabilities	1,836	1,309
Trade and other operating payables	66,040	36,337
(in € thousands)	June 2019	June 2018
Revenues and expenses with related parties	158,474	266,002
Revenue and income from auxiliary activities	172,226	281,934
Purchases and other operating expenses	(19,833)	(20,453)
Net financial income/expense	6,081	4,521

The revenue and revenue from auxiliary activities vis-à-vis the associates or joint ventures consolidated under the equity method decreased substantially between June 2018 and June 2019 following the end of development works on the offshore wind farms Merkur and Rentel.

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23.SUBSEQUENT EVENTS

None.

24.IMPACT OF FOREIGN CURRENCIES

The international activities of the CFE group for the Contracting and Real Estate segments are mainly within the Euro zone. Consequently, the exposure of those segments to exchange risk and the impact on the financial statements are very limited. DEME, however, carries on a large part of its business internationally. These activities are mainly in US dollars or in currencies that are closely tied to the US dollar. DEME uses financial instruments to hedge exchange rate risk.

25.RESEARCH AND DEVELOPMENT

DEME carries out research to increase the efficiency of its fleet. In addition, in partnership with universities and the Flemish region of Belgium, it carries out research in order to develop the production of sustainable marine energy.

26.SEASONAL NATURE OF THE BUSINESS

The construction activity is seasonal and susceptible to the climatic conditions of winter.

Revenue and income achieved in the first half year cannot be extrapolated over the full year. The seasonal nature of the business is reflected in a higher use of cash in the first half year.

No adjustments were made to take account of the impact of seasonal factors on the group's financial statements for the first half year.

Income and expenses of the group from normal business operations which are subject to a seasonal, cyclical or occasional nature were recognized following the same valuation rules as at year-end. They were neither anticipated nor deferred in the interim financial statements.

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27. AUDITOR'S REPORT

In the context of our appointment as the company's statutory auditor, we report to you on the consolidated interim financial information. This consolidated interim financial information comprises the consolidated condensed statement of financial position as at 30 June 2019, the consolidated condensed income statement, the consolidated condensed statement of comprehensive income, the consolidated condensed statement of changes in equity and the consolidated condensed statement of cash flows for the period of six months then ended, as well as selective notes 1 to 26.

Report on the consolidated interim financial information

We have reviewed the consolidated interim financial information of Compagnie d'Entreprises CFE NV/SA ("the company") and its subsidiaries (jointly "the group"), prepared in accordance with International Accounting Standard (IAS) 34, "Interim Financial Reporting" as adopted by the European Union.

The consolidated condensed statement of financial position shows total assets of 5 323 297 (000) EUR and the consolidated condensed income statement shows a consolidated profit (group share) for the period then ended of 42 736 (000) EUR.

The board of directors of the company is responsible for the preparation and fair presentation of the consolidated interim financial information in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union. Our responsibility is to express a conclusion on this consolidated interim financial information based on our review.

Scope of review

We conducted our review of the consolidated interim financial information in accordance with International Standard on Review Engagements (ISRE) 2410, "Review of interim financial information performed by the independent auditor of the entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit performed in accordance with the International Standards on Auditing (ISA) 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 on the consolidated interim financial information.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the consolidated interim financial information of Compagnie d'Entreprises CFE NV/SA has not been prepared, in all material respects, in accordance with IAS 34, "Interim Financial Reporting" as adopted by the European Union.

Emphasis of Matter

Without modifying the conclusion expressed above, we draw your attention to the Note 13 of the consolidated interim financial information which describes the uncertainties regarding the amount due by the State of Chad and the undertaken actions in order to facilitate its payment.

Zaventem, 28 August 2019

DELOITTE Bedrijfsrevisoren/Réviseurs d'Entreprises CVBA/SCRL

Represented by

_____________	_____________
Rik Neckebroeck	Michel Denayer

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