Financiere de Tubize S A : Half-year financial report 2022

Financière de Tubize

Half-year financial report

30 June 2022

STATEMENT OF THE DIRECTORS

INTERIM REPORT OF THE BOARD OF DIRECTORS

CONDENSED INTERIM FINANCIAL STATEMENTS

• Belgian standards (with auditor's report)
• EU-IFRSstandards (with auditor's report)

Financière de Tubize SA/NV

Allée de la Recherche 60, 1070 Bruxelles (Belgium)

Company number : BE 0403 216 429

WWW.FINANCIERE-TUBIZE.BE

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Table of content
I.	STATEMENT OF THE DIRECTORS.........................................................................................................	3
II.	INTERIM REPORT OF THE BOARD OF DIRECTORS.......................................................................	4
1.	Significant events..............................................................................................................................................................................	4
2.	Impact of the Covid-19 crisis and the invasion of Ukraine by Russia .......................................................................	4
3.	Unaudited interim statement of financial position ...........................................................................................................	5
		Results (Belgian standards[]) .....................................................................................................................................................................	5
		Financial situation (Belgian standards)................................................................................................................................................	5
		Profit and other changes in equity reconciliation according to Belgian GAAP - EU-IFRS standards[]...................	6
4.	Main risks and uncertainties .......................................................................................................................................................	6
5.	Main related party transactions.................................................................................................................................................	7
	5.1	Shareholders structure .................................................................................................................................................................................	7
	5.2	Directors...............................................................................................................................................................................................................	7
	5.3	UCB..........................................................................................................................................................................................................................	7
III.	CONDENSED INTERIM FINANCIAL STATEMENTS AT 30 JUNE 2022.................................	8
	Belgian accounting standards.....................................................................................................................................................................................	8
1.	Financial fixed assets - Information related to the participation in UCB SA/NV ..............................................	10
2.	Capital - capital status - forms of shares.............................................................................................................................	10
3.	Bank borrowings / Debt charges............................................................................................................................................	11
4.	Other debts .......................................................................................................................................................................................	11
5.	Covenants associated with credit lines................................................................................................................................	12
	Auditor's report ..............................................................................................................................................................................................................	13
	EU-IFRS standards.........................................................................................................................................................................................................	14
1.	Participating interest in UCB ....................................................................................................................................................	19
	1.1	Carrying value ................................................................................................................................................................................................	19
	1.2	Share of other comprehensive income of UCB ...............................................................................................................................	19
	1.3	Fair value ..........................................................................................................................................................................................................	20
	1.4	Summarized financial information of UCB.......................................................................................................................................	20
2.	Financial instruments..................................................................................................................................................................	21
	2.1	Financial instruments by category .......................................................................................................................................................	21
	2.2	Fair value of financial instruments.......................................................................................................................................................	21
	2.3	Bank borrowings...........................................................................................................................................................................................	21
3.	Income taxes ....................................................................................................................................................................................	23
	3.1	Deferred tax assets and liabilities.........................................................................................................................................................	23
	3.2	Relation between tax expense and profit before tax ...................................................................................................................	23
	Auditor's report ..............................................................................................................................................................................................................	24

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1. STATEMENT OF THE DIRECTORS

We confirm that, to the best of our knowledge:

• The condensed interim financial statements at 30 June 2022 has been prepared in accordance with the applicable financial reporting standards and gives a true and fair view of the net assets, the financial position and the results of Financière de Tubize.
• The interim board report includes a fair review of the important events and the main related party transactions that occurred during the first half-year, and of their impact on the condensed interim financial statements at 30 June 2022, as well as a description of the main risks and uncertainties for the remainder of the year.

Brussels, 29th July 2022

The board of directors

Evelyn du Monceau	Gaëtan Hannecart
Board member	Chairman of the board

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1. INTERIM REPORT OF THE BOARD OF DIRECTORS

Ladies and Gentlemen,

In accordance with the legal and regulatory requirements, we are honored to report to you on the first semester of FY 2022 of Financière de Tubize (the « Company »).

1. Significant events

The following significant events took place during the first half of FY 2022:

• Profit for the period in accordance with Belgian accounting standards: € 87.3 million at 30 June 2022, compared to € 85.0 million at 30 June 2021 (up by 2.7%)
• Profit for the period in accordance with International Financial Reporting Standards (IFRS): € 144.5 million at 30 June 2022, compared to € 204.8 million at 30 June 2021 (down by 29.4%)
• Dividend received from UCB: € 89.0 million (€1.30 per share, an increase of 2.4% compared to the previous year),
• Dividend paid to shareholders of Financière de Tubize of € 33.4 million (€ 0.75 per share, an increase of 10.3% compared to the previous year),
• Increase in bank debt by € 25.0 million which lead to an increase of outstanding bank borrowings from € 20.0 million at 31 December 2021 to €45.0 million at 30 June 2022,
• Acquisition of 1,053,840 UCB shares, for a total amount of € 94.5 million, at the average price of € 89.64, increasing the holding of the Company in UCB from 35.16% on 31 December 2021 to 35.7% on 30 June 2022.

2. Impact of the Covid-19 crisis and the invasion of Ukraine by Russia

The COVID-19 pandemic (and economic consequences) and the invasion of Ukraine by Russia had no significant impact on the Company's operations and its financial statements during the first six months of fiscal year 2022. The Company is, in fact, a mono holding company whose sole investment is a stake in UCB and therefore has no commercial or industrial activity. Although the magnitude of the risks connected to both phenomenon's and their consequential impact on the global economy remain uncertain, the Company is closely monitoring these developments to assess their potential financial impact UCB's results. In this regard, reference should be made to the content of UCB's semi-annual financial report.

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3. Unaudited interim statement of financial position

Results (Belgian standards[1])

The profit moves from € 85,000k in the first half of 2021 to € 87,273k in the first half of 2022, an increase of € 2,273k or 2.67%. The condensed profit or loss accounts for the six months ended 30 June 2022 and 2021 look as follows:

€ 000	30/06/2022
Dividend from UCB	89,033
Cost of borrowing	(651)
Other financial expenses	(328)
General expenses	(782)
Profit before tax	87,273
Income taxes	-
Profit	87,273

30/06/2021

86,458

(642)

(24)

(792)

85,000

-

85,000

The dividend received from UCB in 2022 in relation to FY 2021, amounts to € 89,033k (gross dividend of €1.3 per share) against € 86,458k (€1.27 per share) for the prior year.

The cost of borrowing are composed by the commission of the engagements (€ 476k) and the interests on the usage of de credit lines of the Company (€ 175k).

The other financial charges are principally composed of the commission of courtage on the acquisition of the UCB shares (€ 227k)

After application of the system of tax credits for dividends received which prevents income already taxed at UCB from being taxed a second time at Financière de Tubize, the Company has no taxable basis.

Financial situation (Belgian standards)

The condensed balance sheet as per 30 June 2022 and as per 31 December 2021 looks as follows:

	€ 000	30/06/2022		31/12/2021
	Participating interest in UCB	1,837,687		1,743,221
	Current investments and cash at bank and in hand	491		15,900
	Other assets	70		30
	Total assets	1,838,248		1,759,151
	Equity	1,792,004		1,704,731
	Bank borrowings	45,000		20,000
	Other liabilities	1,244		34,420
	Total equity and liabilities	1,838,248		1,759,151

The participating interest in the capital of UCB is recorded at its acquisition value for an amount of € 1,837,687k, an increase of € 94,466k, compared to 31 December 2021, following the acquisition on the stock market of 1,053,840 shares at an average acquisition value of €89.64 per share. The share price at 30 June 2022 was at € 80.64 to (€ 100.35 at 31 December 2021).

1 The accounting standards applicable in Belgium and the periodic reporting obligations incumbent upon Belgian issuers whose securities are admitted to trading on a regulated market.

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