Compagnie d'Entreprises CFE : INTERIM REPORT AS OF JUNE 30, 2022

INTERIM REPORT

FOR THE HALF-YEAR ENDING 30 JUNE 2022

DEFINITIONS........................................................................................................................................................................................	4
CONSOLIDATED FINANCIAL STATEMENTS ............................................................................................................................................	5
CONSOLIDATED STATEMENT OF INCOME ......................................................................................................................................................................................	5
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME ...............................................................................................................................................................	5
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ......................................................................................................................................................................	6
CONSOLIDATED STATEMENT OF CASH FLOWS ................................................................................................................................................................................	7
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY .......................................................................................................................................................................	8
SHARE CAPITAL AND RESERVES ...................................................................................................................................................................................................	8
EARNINGS PER SHARE ...............................................................................................................................................................................................................	8
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS.....................................................................................................................	9
INTRODUCTION ...................................................................................................................................................................................	9
MAIN TRANSACTIONS FOR THE FIRST SIX MONTHS OF 2022 AND OF 2021 WITH EFFECT ON THE SCOPE OF THE CFE GROUP...............	9
1.	GENERAL POLICIES .................................................................................................................................................................	10
2.	CONSOLIDATED METHODS.....................................................................................................................................................	11
SCOPE OF CONSOLIDATION ......................................................................................................................................................................................................	11
INTRA-GROUPOPERATIONS .....................................................................................................................................................................................................	11
TRANSLATION OF THE FINANCIAL STATEMENTS OF FOREIGN COMPANIES & ESTABLISHMENTS................................................................................................................	11
FOREIGN CURRENCY TRANSACTIONS ..........................................................................................................................................................................................	11
3.	ACCOUNTING RULES AND METHODS .....................................................................................................................................	12
MAIN JUDGEMENTS AND ASSUMPTIONS .....................................................................................................................................................................................	12
ADDITIONAL INFORMATION RELATING TO THE IMPLICATIONS OF THE CONFLICT BETWEEN RUSSIA AND UKRAINE ON THE CONSOLIDATED CONDENSED INTERIM FINANCIAL
STATEMENTS ........................................................................................................................................................................................................................	12
CHANGE IN SEGMENT INFORMATION .........................................................................................................................................................................................	12
4.	SEGMENT REPORTING............................................................................................................................................................	13
OPERATING SEGMENTS ...........................................................................................................................................................................................................	13
CONSOLIDATED STATEMENT OF INCOME ....................................................................................................................................................................................	13
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ....................................................................................................................................................................	14
CONSOLIDATED STATEMENT OF CASH FLOWS ..............................................................................................................................................................................	15
OTHER INFORMATION.............................................................................................................................................................................................................	15
GEOGRAPHICAL INFORMATION .................................................................................................................................................................................................	15
5.	ACQUISITIONS AND DISPOSALS OF SUBSIDIARIES ..................................................................................................................	16
ACQUISITIONS FOR THE PERIOD ENDED 30 JUNE 2022..................................................................................................................................................................	16
DISPOSALS FOR THE PERIOD ENDED 30 JUNE 2022 ......................................................................................................................................................................	16
ASSETS AND LIABILITIES HELD FOR SALE FOR THE PERIOD ENDED 30 JUNE 2022 .................................................................................................................................	16
6.	OTHER OPERATING INCOME ..................................................................................................................................................	18
7.	FINANCIAL RESULT.................................................................................................................................................................	18
8.	INCOME TAX FOR THE PERIOD ...............................................................................................................................................	18
9.	PROPERTY, PLANT AND EQUIPMENT......................................................................................................................................	19
10.	INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD .....................................................................................................	20
11.	INVENTORIES .........................................................................................................................................................................	20
12.	TRADE RECEIVABLES AND OTHER OPERATING RECEIVABLES ..................................................................................................	20
13.	PROVISIONS OTHER THAN THOSE RELATING TO NON-CURRENT EMPLOYEE BENEFIT OBLIGATIONS ......................................	21
14.	CONTINGENT ASSETS AND LIABILITIES ...................................................................................................................................	21
15.	DERIVATIVE FINANCIAL INSTRUMENTS ..................................................................................................................................	21
16.	NET FINANCIAL DEBT .............................................................................................................................................................	22

BREAKDOWN OF THE NET FINANCIAL DEBT ..................................................................................................................................................................................	22
CREDIT FACILITIES AND BANK TERM LOANS..................................................................................................................................................................................	22
FINANCIAL COVENANTS...........................................................................................................................................................................................................	22
17.	OTHER COMMITMENTS GIVEN...............................................................................................................................................	23
18.	OTHER COMMITMENTS RECEIVED .........................................................................................................................................	23
19.	LITIGATION ............................................................................................................................................................................	23
20.	RELATED PARTIES...................................................................................................................................................................	23
21.	SUBESQUENT EVENTS ............................................................................................................................................................	24
22.	IMPACT OF FOREIGN CURRENCIES .........................................................................................................................................	24
23.	SEASONAL NATURE OF THE BUSINESS....................................................................................................................................	24
ALTERNATIVE PERFORMANCE MEASURES RECONCILIATION ..............................................................................................................	25
STATEMENT ON THE TRUE AND FAIR NATURE OF THE FINANCIAL STATEMENTS AND THE TRUE AND FAIR NATURE OF THE
PRESENTATION IN THE MANAGEMENT REPORT.................................................................................................................................	27
GENERAL INFORMATION ABOUT THE COMPANY ...............................................................................................................................	27
STATUTORY AUDITOR'S REPORT ON THE REVIEW OF THE CONSOLIDATED CONDENSED INTERIM FINANCIAL INFORMATION FOR THE
SIX-MONTH PERIOD ENDING 30 JUNE 2022 .......................................................................................................................................	28

DEFINITIONS

Working capital requirement	Inventories + trade receivables and other operating receivables + other current operating/non-
	operating assets - trade payables and other operating liabilities - tax payables - other current
	operating/non-operating liabilities
Capital employed	Equity of real estate development segment + net financial debt of real estate development segment
Net financial debt (NFD)	Non-current bonds + non-current financial liabilities + current bonds + current financial liabilities -
	cash and cash equivalents
Net financial surplus	Cash and cash equivalents - non-current bonds - non-current financial liabilities - current bonds -
	current financial liabilities
Income from operating activities	Revenue + other operating income + purchases + remunerations and social security payments +
	other operating expenses + depreciation and amortisation + goodwill depreciation
Operating Income (EBIT)	Income from operating activities + share of profit (loss) of investments accounted for under the
	equity method
EBITDA	Income from operating activities + amortisation and depreciation of (in)tangible assets and goodwill
Return on equity (ROE)	Net income, share of the group / equity, share of the group (opening)
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 for
	which project financing is in place.

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CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENT OF INCOME

	For the period ended June 30		Notes			2022			2021 restated (*)
	(in € thousands)
	Revenue		4			586,205			566,926
	Other operating income	6			26,151		19,494
	Purchases					(415,439)		(400,633)
	Remuneration and social security payments					(104,780)		(105,123)
	Other operating expenses					(64,382)		(61,301)
	Depreciation and amortisation					(10,647)		(10,404)
	Income from operating activities					17,108			8,959
	Share of profit (loss) of investments accounted for using equity method	10			3,959		6,866
	Operating income					21,067			15,825
	Cost of financial debt	7			(962)		(2,073)
	Other financial expenses and income	7			(1,845)		(678)
	Financial result					(2,807)			(2,751)
	Result before tax					18,260			13,074
	Income tax expenses	8			(4,806)		(3,410)
	Result for the period from continuing operations					13,454			9,664
	Result for the period from discontinued operations	5			193,270		33,767
	Result for the period					206,724			43,431
	Non-controlling interests - continuing operations					0		0
	Non-controlling interests - discontinued operations					(2,297)		(809)
	Result for the period - share of the group					204,427			42,622
	Result from continuing operations - share of the group					13,454		9,664
	Result from discontinued operations - share of the group	5			190,973		32,958
	Earnings per share (share of the group) (EUR) (diluted and basic)					8.08		1.68
	Earnings per share (share of the group) from continuing operations (EUR)					0.53		0.38
	(diluted and basic)
	Earnings per share (share of the group) from discontinued operations (EUR)					7.55		1.30
	(diluted and basic)

1. As required by IFRS 5.34, the consolidated statement of income for the period ended 30 June 2021 has been restated and DEME has been presented as a discontinued operation.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

	For the period ended June 30		Notes			2022			2021
	(in € thousands)
	Result for the period - share of the group					204,427			42,622
	Result for the period					206,724			43,431
	Changes in fair value related to financial derivatives	15			85,874		12,963
	Exchange differences on translation					(746)		3,965
	Deferred taxes					(12,482)		(1,698)
	Other elements of the comprehensive income to be reclassified to					72,646			15,230
	profit or loss in subsequent periods
	Re-measurement on defined benefit and contribution plans					1,460		0
	Deferred taxes					(245)		0
	Other elements of the comprehensive income not to be reclassified to					1,215			0
	profit or loss in subsequent periods
	Total other elements of the comprehensive income recognised					73,861			15,230
	directly in equity
	Comprehensive income :					280,585			58,661
	- Share of the group					278,228		58,036
	- Attributable to non-controlling interests					2,357		625
	Comprehensive income (share of the group) per share (EUR) (diluted					10.99		2.29
	and basic)

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