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(1)Annual report 2010. Financial calendar. 18 May 2011 ऀऀ. Interim statement Q1 2011. 23 May 2011 ऀऀ. Ordinary general meeting. 25 August 2011 ऀऀ. Half-year results 2011. 16 November 2011 ऀ. Interim statement Q3 2011. 2000 Antwerp - Belgium. 2 March 2012. Annual results 2011. Tel. +32 3 231 87 70. 28 May 2012 ऀऀ. Ordinary general meeting. Ackermans & van Haaren NV Begijnenvest 113. info@avh.be. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Annual report 2010. We work for growth.

(2) Jaarverslag 2010. Financial calendar. 18 May 2011 ऀऀ. Interim statement Q1 2011. 23 May 2011 ऀऀ. Ordinary general meeting. 25 August 2011 ऀऀ. Half-year results 2011. 16 November 2011 ऀ. Interim statement Q3 2011. 2 March 2012. Annual results 2011. 28 May 2012 ऀऀ. Ordinary general meeting. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 2.

(3) WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Annual report 2010.

(4) Pursuant to the Royal Decree of 14 November 2007 on the obligations of issuers of financial instruments admitted to trading on a Belgian regulated market, Ackermans & van Haaren is required to publish its annual financial report. This report contains the combined statutory and consolidated annual report of the board of directors prepared in accordance with article 119, last paragraph of the Company Code. The report further contains a condensed version of the statutory annual accounts prepared in accordance with article 105 of the Company Code, and the full version of the consolidated annual accounts. The full version of the statutory annual accounts has been deposited with the National Bank of Belgium, pursuant to articles 98 and 100 of the Company Code, together with the annual report of the board of directors and the audit report. The auditor has approved the statutory annual accounts without qualification. In accordance with article 12, §2, 3° of the Royal Decree of 14 November 2007, the members of the executive committee (i.e. Luc Bertrand, Tom Bamelis, Piet Bevernage, Piet Dejonghe, Werner Poot and Jan Suykens) declare that, to their knowledge: a) the annual accounts contained in this report, which have been prepared in accordance with the applicable standards for annual accounts, give a true view of the assets, financial situation and the results of Ackermans & van Haaren and the companies included in the consolidation; b) the annual accounts give a true overview of the development and the results of the company and of the position of Ackermans & van Haaren and the companies included in the consolidation, as well as a description of the main risks and uncertainties with which they are confronted. The annual report, the full versions of the statutory and consolidated annual accounts, as well as the audit reports regarding said annual accounts are available on the website (www.avh.be) and may be obtained upon simple request, without charge, at the following address:. Begijnenvest 113 • 2000 Antwerp, Belgium • Phone +32 3 231 87 70 • Fax +32 3 225 25 33 • E-mail info@avh.be. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 4.

(5) Annual report 2010. Contents. Mission statement Message of the chairmen Key events Board of directors, supervision and daily management Activity report. 19. Contracting, dredging and concessions. 22 26 28 29. DEME Algemene Aannemingen Van Laere Rent-A-Port NMP. 31. Real estate and related services. 34 37 40 42 43. Extensa Leasinvest Real Estate Financière Duval Cobelguard Anima Care. 45. Financial services. 48 52 55. Delen - Private Bank Bank J.Van Breda & C° ASCO-BDM. 57. Private equity. 60 62. GIB Sofinim. 75. Energy and materials. 78 80 81 82 83. Sipef Henschel Group Sagar Cements Oriental Quarries & Mines Max Green. 86 89 90 100 104 111 172 174. Corporate social responsibility Patronage Corporate governance statement Risk factors Annual report of the board of directors Financial statements General information regarding the company and the capital Glossary. 5. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 7 9 12 14 17.

(6) WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 6.

(7) Annual report 2010. Mission statement. Our mission is to create. Positioning. shareholder value through. • an independent and diversified group • led by an experienced, multidisciplinary management team • based upon a healthy financial structure to support the growth ambitions of the participations. long term investments in. 7. a limited number of. with growth potential on an international level.. Long term perspective • clear objectives agreed upon with the participations • responsibility of the participations for their own financial position • strive for annual growth in the profits of each participation and in the group as a whole • focus on growth sectors in an international context. Proactive shareholder • involvement in selecting senior management and defining long-term strategy • permanent dialogue with management • monitoring and control of strategic focus, operational and financial discipline • active support to management for specific operational and strategic projects. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. strategic participations.


(9) Annual report 2010. Message of the chairmen. With a 2% increase in GDP in 2010, Belgium fared better than the majority of European countries. Although the new balances are still delicate, this resulted in a reduction of the Belgian deficit in 2010. It is our hope that further improvement of Belgian public finances will have a positive effect on our local investments over the current year. At the level of the world economy, GDP growth has reached more than 4% and the crisis is clearly over. For this reason, we are convinced that we must further develop our activities within the emerging regions in Asia and Latin America. In 2010, all segments of the group realized a higher profit contribution. This has resulted in a substantial increase (37%) in the net result of the group, to 160.8 million euros (117.5 million euros in 2009). In the contracting, dredging and concessions segment, DEME (AvH 50%) performed extremely well, with nearly full utilisation of the fleet and a record 28% increase in turnover to 1,801 million euros (compared to 1,403 million euros in 2009). The substantial increase in the price of a drum of oil and the increase in price of the majority of raw materials offer countercyclical support to the activities of DEME, since they are giving rise to a new wave of investments in new port infrastructure for shipping of materials and to a high demand for new LNG terminals around the globe. Although this had not yet clearly manifested itself in the order book as of the end of 2010 (1,935 million euros, compared with 2,122 million euros in 2009), this trend has accelerated in the first months of 2011. This has resulted in an order book that has reached almost 2,500 million euros in the first quarter. DEME’s EBITDA amounted to 329 million euros in 2010 (compared with 289 million euros in 2009), an increase of 14%. The net result amounted to 116.5 million euros, compared to 103 million euros in 2009, which equals a growth of 12.6%. The turnover increase and the continuously growing order book have led to major investments (700 million euros over the last 2 years) in the expansion and modernisation of the fleet. Eight new ships will be delivered in 2011, including a new large trailer (30,000 m³) and a second large cutter, refining the technologies employed on, among others, the D’Artagnan. It is evident that the DEME teams are fully occupied with the new contracts and the subsequent implementation. Nevertheless, DEME. will continue to operate as a contractor in the development of new wind farms, in ocean mining in partnership with IHC, a long-standing partner of the group, and in the development of renewable energy from waves and tides through DEME Blue Energy. DEME also developed a number of sustainable activities at the environmental level, including the establishment of ‘Purazur’, an important step towards offering specialised water treatment services. Moreover, this offer seamlessly ties into DEC’s soil and sludge decontamination activities.. 9. It is this capacity for innovation and creativity that continues to confirm AvH’s confidence in the future of this company, which continuously renews itself. Algemene Aannemingen Van Laere (AvH 100%) achieved a slightly positive (0.5 million euros) result in a difficult market. The order book for 2011 is healthier. One element worth to mention is the ‘Innovation Award’ which Van Laere received in 2010 for the ‘Aqua-Shell’ construction and renovation of quay walls. Strengthening of the management and further specialisation in PPP, restoration works and car parks are within Van Laere clear priorities for the coming year. Rent-A-Port (AvH 45%) contributed, together with other group members, towards the establishment of Otary RS NV (wind farms). A small loss was recorded in 2010 (-3.8 million euros), yet major new projects are in development in Oman, Nigeria, Vietnam and Belgium. The NMP pipeline company (AvH 75%) once again achieved an extremely stable net result of 2.0 million euros in 2010 (2.1 million euros in 2009). The real estate and related services segment is clearly showing an improvement, with a contribution of 8.6 million euros towards the group result, compared to a loss of 0.7 million euros in 2010. Despite the improvement of the economic climate, there were few deliveries in the promotional activities, which - temporarily - put a damper on the results of the real estate segment. Leasinvest Real Estate (AvH 30.01%) succeeded in maintaining the average occupancy rate at 97.5% and the rental yield at 7.41% last year. The Leasinvest portfolio became relatively stronger in Luxembourg (45%) than in Belgium (55%). The decrease of office real estate within the Brussels suburbs also goes hand in hand with the growth of the commercial and logistics portfolio. This has resulted in a net result of 14.3 million euros (18.4 million euros in. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Ladies and gentlemen,.

(10) Annual report 2010. 10. Within Extensa (AvH 100%), the good result of the residential estates ensured a small contribution to the result of 1.2 million euros (compared to a loss of -7.8 million euros in 2010). Turkey also made a minor contribution to the results. The outlook with regard to Tour & Taxis, and respectively the construction of the BIM (Brussels Institute for Environmental Management) building and the residential estates, and the development of the Cloche d’Or in Luxembourg, are highly promising. At AvH level, both projects represent developments of approximately 400,000 m². The return on shareholders’ equity of 125 million euros has not yet reached our standards at the current time. The size of these two projects should nevertheless enable these standards to be achieved within the near future. 2010 was also a difficult economic year for Groupe Financière Duval (AvH 39.2%). Nevertheless, the group’s holiday parks (100,000 beds) were busy. The slowdown in real estate activities has led, however, to a considerable order book for the coming year. With a result of 3.2 million euros (3.7 million euros in 2009), Duval has successfully held its own within a difficult market. The positive evolution of our partnership with Mr Eric Duval has led us to consolidate our participation within a new holding, in which we and our partner each own half. Financière Duval anticipates an overall improvement of its activities in 2011. Cobelguard (AvH 39.6%) once again achieved excellent growth in 2010, in terms of turnover (from 53 million euros to 59 million euros), EBITDA (from 3.9 million euros to 5.1 million euros) and result (from 2.1 million euros to 2.9 million euros). A strategic step was taken with the establishment of BeMarc, the new incident room for emergency centres. Lastly, the coming year will usher in the first major contracts for the new branch in Luxembourg. Like Financière Duval, Anima Care (AvH 100%) also invests in senior care homes and service flats. This new company’s management team is following an accelerated growth path. The company achieved its goal to break even in 2010 and, it must be added, with a significant EBITDA. The ageing of the Belgian population completely supports this promising new initiative. The recovery of the financial markets has once again led to a substantial growth in assets under management from the clients of Delen - Private Bank (AvH 78.75%) (15,272 million euros compared to 13,243 million euros in 2009). The due diligence investment model of the bank fully proved its strength during the most serious crisis experienced by the markets since the great depression. Key factors of this model are the focus upon quality and the long term. With a cost-income ratio of 41.7% (48.3% in 2009), the bank has maintained a high-performance profile. The 57% growth of the net result to 54.3 million euros (34.6 million euros in 2009) presents. new resources that can be used to participate in the further consolidation of the sector. With a core tier1-capital ratio of 25.3%, the bank is already currently satisfying the future Basel III ratios. The accelerated expansion of the bank went hand in hand with a shift in growth, since 2/3 of the inflow of new assets under management at the Bank was generated outside of the Antwerp head office. Another factor that contributed to this was the merging of the asset management of the bank with the asset management of Capfi. Taking an increase in assets under management in early 2011 as a point of departure, the results of the Bank should once again exhibit positive growth in the current year. Bank J.Van Breda & Co (AvH 78.75%) recorded an excellent 10% growth in profit to 25.7 million euros (23.3 million euros in 2009) for the second year in a row. Customer satisfaction is confirmed by the further growth of 13% in assets under management (6,369 million euros, compared to 5,644 million euros in 2009). Exposure in the PIIGS countries amounted to just 25 million euros, 15 million of which was in Italy. The healthy cash position of the bank and its strong core capital ratio of 11.3% mean that Bank J.Van Breda & Co is also already satisfying the solvency standards of Basel III, which we expect by 2019. The prospectus for the acquisition of Antwerps Beroepskrediet with a friendly and conditional counterbid was approved by the FSMA at the end of March. This should considerably strengthen the position of the bank within the region of Antwerp. In 2010, Asco-BDM (AvH 50%) sold both Asco Life (life insurance) and Bruns ten Brink (car insurance in the Netherlands). In addition to the appointment of a new management team, the strategic repositioning of this transport and property damage insurance specialist has also been achieved. In 2010, the private equity segment clearly benefited from the restructuring that took place in the first half of 2009. The slight economic recovery has resulted in a significant improvement in the result, from 7.8 million euros in 2009 to 13 million euros in 2010. These results take into consideration a goodwill impairment of 4.8 million euros to Distriplus, which means that the current profit of the private equity participations amounted to 18.1 million euros in 2010. Despite this significant improvement, the adjusted net asset value of the private equity portfolio within Sofinim (AvH 74%) and GIB (AvH 50%) amounted to just 468.5 million euros (compared to 448.1 million euros) at the end of 2010. These figures show clearly that the group is still a long way from reaching its normal potential on the invested capital of the private equity segment. It must be mentioned here that Distriplus has been subject to continuous restructuring, with the various retail managers each being replaced. The entrepreneurship of the AR Metallizing team, which has become a world leader in the production of metallised paper, sets an example for the group. Finally, the Groupe Flo team in Paris achieved a true turnaround in 2010, almost tripling its net result to 15.3 million euros and further reducing its debt position substantially to 88 million euros. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 2009), after losses on the portfolio of 9.3 million euros. As long as sustainable, positive economic development is not forthcoming, real estate companies will continue to be faced with losses in value upon the departure of a tenant. The Leasinvest team and the quality of the properties have ensured that this evolution has thus far had relatively little effect upon Leasinvest..

(11) (compared with 112 million euros in 2009), which is more in keeping with its growing EBITDA of 48.8 million euros. The energy and materials segment contributed 16.5 million euros to the group results in 2010 (compared to 12.8 million euros in 2009). The extremely high prices of raw materials confirm the group’s strategy to further expand this sector. At present, Sipef accounts for the major part of the result. This was recently further reinforced by a further increase of our participation in Sipef to 25.4% at the end of March 2011, compared to 20.9% at the end of 2009. The high prices for palm oil and rubber significantly improved the result from 60.2 million US dollars to 84.8 million US dollars. The professionalism of the management team, with its focus upon expanding the plantations, is additionally impressive. We are convinced that, in time, the ambitious operational objectives will also be attained. The expansion of our two investments in India is going according to plan. Considerable increases in capacity are being introduced in both cases; however, the financial figures do not yet show much result.. Together with the DEME and Rent-A-Port Energy wind farms, the bio power station of Spano, Sipef’s 100% sustainable palm oil plantation, the new Max Green biomass plant is in line with our vision on the future of renewable energies and of the sustainability of this sector. Over the course of 2010, the net cash position has decreased from 122.1 million euros to 77.7 million euros. The recent sale of Engelhardt has not yet been factored into this. The ‘AvH model’, which aims for consistent growth in the group’s shareholders’ equity, has once again proved itself in the last financial year (1,711 million euros after payment of the dividend, compared to 1,596 million euros as recorded on 31 December 2009). Recovery of growth in 2010 has been achieved and has incited the board of directors to once again propose an increase of the gross dividend, from 1.44 euros to 1.55 euros per share.. 11. We would like to thank all of the group’s employees for their creativity and dedication that led to the 2010 results.. Alain Dieryck. Luc Bertrand. President of the board of directors. President of the executive committee. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Within Max Green, the final phase of the conversion of the Rodenhuize power station from coal to biomass is currently being implemented..

(12) Annual report 2010. Key events 2010. 12. DEME - London Gateway. January • AvH sells - together with its (50%) insurance subsidiary, ASCO 100% of Asco Life.. February. Sipef. • AR Metallizing successfully completes the acquisition of the assets of its Italian competitor, Rotoflex. The Sofinim participation decreases to 70%. • Sipef obtains RSPO certification for its palm oil activities in North Sumatra.. • Bank Delen is named ‘Best Private Bank in Belgium’ for the fourth time in a row by Euromoney.. March • Cindu (Sofinim 50%) sells its 50% stake in Cindu Chemicals to the American company Koppers. • DEME begins dredging work for the London Gateway container terminal. • AvH increases its participation in the Indian company Oriental Quarries & Mines from 28% to 50% through a capital increase.. June • DEC (a DEME subsidiary), Extensa and BPI begin the development of brownfield sites via Terrenata.. July • Leasinvest Real Estate sells the long leases for Axxes Business Park (Ghent). • Anima Care acquires its third senior care facility, Résidence du Peuplier (Haut-Ittre), its first centre in Wallonia.. August • DEME signs a major contract concerning the 2014 Winter Olympics in Sochi, Russia.. September • Sagar Cements announces its intention to merge with Amareswari Cement. The closing is expected during the first half of 2011.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. • BDM sells its Dutch insurance subsidiary, Bruns ten Brink..

(13) 13. A.A. Van Laere. October • Sofinim increases its participation in Hertel to 46.5%. • AvH increases its participation in Financière Duval so as to attain a co-control position (50/50 of 78%). The new holding company is called Holding Groupe Duval. • Leasinvest Real Estate sells the rights in rem to the Louizalaan 250 building (Brussels).. AR Metallizing. Key events 2011 January • Bank J.Van Breda & Co submits a friendly and conditional counterbid for Antwerps Beroepskrediet. • It was decided to resell AvH’s participation in Alcofina, as it had not yet resulted in a concrete investment project.. November • Algemene Aannemingen Van Laere and Leasinvest Real Estate start the project for the National Archives in Bruges.. February • AvH increased its participation in Sipef to 25.4%.. December. March. • Sofinim sells Engelhardt Druck to the German industrial printer Rahning.. • DEME and IHC Merwede join forces to develop deep-sea mining activities.. • Together with the other Rent-A-Port shareholders, AvH (45%) establishes Rent-A-Port Energy with a view to building and operating wind farms in the North Sea.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Hertel.

(14) Annual report 2010. Directors, supervision and daily management Board of directors. Executive committee. President. Alain Dieryck. President. Luc Bertrand. Directors. Luc Bertrand Jacques Delen Teun Jurgens Pierre Macharis Thierry van Baren Frederic van Haaren Pierre Willaert. Members. Tom Bamelis Piet Bevernage Piet Dejonghe Werner Poot Jan Suykens. Teun Jurgens. Frederic van Haaren. Thierry van Baren. Jacques Delen. Pierre Macharis. Luc Bertrand. Alain Dieryck. Pierre Willaert. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 14.

(15) 15. Follow-up participations. Auditor. (Together with the members of the executive commitee) John-Eric Bertrand André Xavier Cooreman Marc De Pauw Matthias De Raeymaeker Koen Janssen. Ernst & Young Bedrijfsrevisoren BCV, represented by Marnix Van Dooren and Christel Weymeersch. Group services Finance Tom Bamelis Hilde Delabie Ben De Voecht Marc De Groote Bart Bressinck Jean-Claude Janssens Katia Waegemans. Legal and administrative affairs Financial manager Group controller Group controller Accountant Accountant Treasurer Information & communication manager. Piet Bevernage Sofie Beernaert Edouard De Saegher Brigitte Adriaensens Michel Malengreau. Secretary-general Legal counsel Administration and personnel (until 31/3/2011) Corporate secretary Sofinim Fiscal advisor. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. From left to right: Piet Dejonghe, Jan Suykens, Luc Bertrand, Piet Bevernage, Werner Poot, Tom Bamelis.


(17) Annual report 2010. Activity report. 17. Real estate and related services. DEME. Extensa Group. 50%. 100%. A. A. Van Laere. Leasinvest Real Estate. 100%. 30%. Private banking. Private equity. Energy and materials. Delen Private Bank. Sofinim. Sipef. 74%. 23%. GIB. Henschel. 50%. 50%. 79%. Bank J.Van Breda & C° 79%. Rent-A-Port. Cobelguard. ASCO-BDM. Sagar Cements. 45%. 40%. 50%. 15%. NMP. Financière Duval. 75%. 39%. Oriental Quarries & Mines 50%. Anima Care. Max Green. 100%. 20%. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Contracting, dredging and concessions.


(19) WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Segment. Contracting, dredging and concessions.

(20) Annual report 2010. Contracting, dredging and concessions The contracting, dredging and concessions segment had a good year and increased its contribution to the group result to 58.7 million euros. This is to a large extent due to the strong performance of DEME.. DEME - Brabo in Sochi (Russia). DEME AvH 50%. The Belgian dredging and environmental group DEME is one of the largest and most diversified dredging and marine engineering companies in the world.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 20.

(21) A. A. Van Laere - Maritime Museum (Amsterdam). Rent-A-Port - Port of Duqm (Oman). NMP. A.A. Van Laere AvH 100%. Rent-A-Port AvH 45%. Nationale Maatschappij der Pijpleidingen AvH 75%. Van Laere is a general contractor for large engineering projects, active in different industries in the Benelux and the north of France.. Rent-A-Port is specialized in port development and logistics on the basis of the know-how of the four Flemish ports and of maritime structures.. NMP realizes and manages pipelines for the transport of industrial gases and products for the petrochemical industry.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 21.

(22) Contracting, dredging and concessions. 22. DEME is one of the largest marine engineering companies in the world. From its core activities, dredging and civil marine engineering, the group has developed complementary activities such as environmental engineering (treatment of soil and sludge), services for the oil and gas sector and extraction of construction aggregates from the sea.. Financial overview 2010 For DEME, 2010 can rightly be called a record year. Over the year, the group achieved a turnover growth of 28%, attaining a turnover of 1,801 million euros. European markets accounted for a large part of the turnover with, among others, major contracts for the London Gateway container terminal and various large-scale offshore wind farms in the North Sea. In addition, DEME was very active in Africa and South America and on the expanding Russian market. DEME's. Beneficial interest AvH: 50% DEME NV www.deme.be. (¤ 1,000). 2010. 2009. 2008. Turnover. 1,800,609. 1,402,569. 1,508,776. activities in the oil and gas sector and marine infrastructure projects continue to be an important instrument in the Middle East. Through a number of large and complex remediation contracts, the environmental branches also gained a foothold in the rest of Europe and in America. With specialised marine and offshore hydraulic engineering companies like GeoSea and Tideway, DEME managed to secure a growing share of the quickly expanding market segment of offshore wind energy. In addition, the setting up of new initiatives in the area of so-called ‘blue energy’ further consolidated DEME's reputation as a pioneer in the development of environmentally-friendly energy production. The order book was renewed to a very large extent (1,935 million euros compared to 2,122 million euros at the end of 2009). Moreover, new orders amounting to 500 million euros have already been booked in the beginning of 2011. The order book now includes numerous new assignments throughout the world, for example in Brazil, the United Kingdom, Germany, Russia, Panama, Mexico and Angola. Operational cash flow (EBITDA) grew by 14% to 328.7 million euros, which accounted for 18.3% of turnover. This EBITDA margin was influenced by the renting of additional ships and by the larger share of general contracting orders. The net profit increased by 13% from 103.0 million euros to 116.5 million euros. DEME's investment programme is advancing at full speed, and after the delivery of 6 new vessels in 2009, 2010 saw the commissioning of the ‘Samson’, a heavy-duty backacter. Currently, 8 more vessels are being built: the fall-pipe vessel ‘Flintstone’; the gravel trailer ‘Victor Horta’; two 12,860 kW seagoing cutter suction dredgers, i.e. the ‘Al Jarraf’ and the ‘Amazone’; the hopper dredger ‘Breughel’, with a capacity of 11,000 m³; the DP2 jack-up platform ‘Neptune’; the Next Generation+ mega trailing suction dredger ‘Congo River’, with a 30,000 m³ hold; and the world's most powerful seagoing rock cutter dredger, ‘Ambiorix’.. EBITDA. 328,739. 288,966. 301,963. EBIT. 176,872. 146,785. 174,744. Net result. 116,519. 102,988. 114,827. Dredging and marine works. Net cash flow. 274,293. 246,206. 247,785. Shareholders’ equity (group share). 667,273. 569,546. 499,609. Traditional dredging and marine works are still the group's core activity. In 2010, this segment accounted for 67% of turnover. The activity in the Benelux area remained in line with previous years. The maintenance dredging contract for the Scheldt and the access channels to the Antwerp locks entered into its third year, while maintenance work continued in the busy shipping lanes off the Belgian coast and in the ports of Ostend and Blankenberge. The deepening works on the Scheldt were completed on both the Belgian and. Net financial position Balance sheet total Personnel. -481,040. -358,257. -373,373. 2,172,474. 1,828,328. 1,788,679. 3,635. 3,532. 3,577. Operational overview 2010. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. DEME.

(23) From left to right: Eric Tancré, Lieven Durt, Christian Van Meerbeeck, Philip Hermans, Marc Maes, Theo Van De Kerckhove, Martin Ockier, Harry Mommens, Pierre Potvliege, Bernard Paquot, Pierre Catteau, Alain Bernard, Dirk Poppe. 23. London Gateway. Dutch sides. In Amsterdam, the Dutch subsidiary de Vries & van de Wiel continued with the construction work on the 2nd Coentunnel. The European activities further gained importance in 2010. For example, the company's strong market position in the German segment for maintenance dredging in primary shipping channels was maintained, the first contract in the Baltic Sea was concluded, and GeoSea signed a number of major contracts for the construction of offshore wind farms. In Italy, new contracts were signed for the civil engineering works for the south quay wall along the port of Cagliari. Thanks to well diversified activities, DEME was able to maintain its strong position in the Mediterranean area and it played a leading role in port expansion work and the maintenance sector in France. In the United Kingdom, the large-scale London Gateway Port project along the Thames was launched in March 2010. DEME continues to be very active in Russia, among other things in the context of the construction work for the next winter Olympic Games to be held in Sochi in 2014. DEME was able to maintain its strong position throughout SubSaharan Africa in 2010. High points there involved the completion of reconstruction work on the access channel in Durban and the large-scale land reclamation activities carried out in the framework of the EKO Atlantic City project in Lagos, Nigeria. After many years' absence, DEME is back in the Democratic Republic of Congo for a complex maintenance campaign along the Congo River. As regards Latin America, the dredging work for the deepening and broadening of the shipping channel in Lake Maracaibo in Venezuela was completed and a maintenance campaign took place along the Orinoco. Dredging continued on the access canal on the. Vlaanderen 19 in Angola. Pacific Ocean side of the Panama Canal and the order was expanded further to include dredging work in Gatun Lake between the existing locks. DEME also had a prominent presence in Brazil, among other things for the broadening and deepening of the access canal to the port of Itaguaí and dredging work in Santos, where DEC began initial remediation and stabilisation activities. However, the greatest achievement was signing a framework contract for dredging and maintenance dredging work in all ports owned by Vale, the world's largest producer of iron ore. DEME had a major breakthrough in Mexico by concluding the dredging contract for the new LNG terminal in Cuyutlán, Manzanillo. Middle East Dredging Company (MEDCO), a joint venture by DEME, UDC and the government of Qatar, saw continued expansion thanks to a few major sites in the Emirate of Abu Dhabi, including the construction of the new Khalifa Port, which was completed in 2010. The major reclamation project for Takreer in Ruwais will be finished early 2011. Late 2010, MEDCO successfully launched the self-propelled cutter suction dredger ‘Al Jarraf’, which represented a key development in its growth and investment programme. In India, ISD's services are increasingly in demand for (maintenance) dredging projects, with a stronger position for DEME on the local market as a result. DEME is continuing its commercial efforts to successfully capitalise on a concession to exploit a stone quarry in Oman, and to achieve a break-even result. The major reclamation works continued in Singapore in 2010. The current expansion project around Jurong Island and Tuas B progressed slowly but surely, and the sand supply was confirmed for the expansion works for the Pasir Panjang container termi-. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Offshore wind farm.

(24) Contracting, dredging and concessions. Activities in the oil and gas sector In 2010, Tideway Offshore and Marine Contractors, the oil- and gas-related subsidiary of DEME, managed to double the turnover of 2009 in the area of trench dredging and landfall construction as well as in the typical field of fall-pipe rock dumping. This segment accounted for 10% of total turnover in 2010. Multiple projects were carried out in the North Sea for various operators, including Talisman, Chevron, Wintershall, Total, BP and Shell. For example, Tideway participated in BP's Skarv Field and Idun Field projects, the largest rock dumping project in the history of the North Sea. In the framework of the Nord Stream project, preparatory work on the seabed was successfully completed for the building of a double gas pipeline between Russia and Germany. New projects were also started in Canada, Russia, Australia and Malaysia. Tideway was awarded the prestigious project on the Russian Prirazlomnoye field, which is to be executed in 2011. The ‘Flintstone’, Tideway's new fall-pipe vessel with a capacity of 19,000 tonnes, was launched in April 2010 and will be transferred to Tideway in the first half of 2011.. Heavy lifting work at sea Scaldis Salvage and Marine Contractors, in which DEME has a 55% stake, cooperated in several large-scale salvage/wreck clearance projects and heavy lift operations throughout Europe. Scaldis was particularly busy in 2010 with several new assignments such as services for civil engineering works and oil and gas companies and activities in the renewable energy sector requiring the full-time use of the heavy-lift vessel ‘Rambiz’.. Nearshore and offshore marine works GeoSea is the specialised DEME company focusing on rock drilling and installations for the construction of jetty foundations and mooring systems, the installation of offshore structures, offshore wind farms and geotechnical investigations at large depths. The company largely doubled its turnover for 2009 and expects to see strong growth over the coming years, as increasing attention for renewable energy constitutes a major driving force behind offshore wind farm construction. Thanks to GeoSea's experience in this specialist field, major contracts were signed in Germany, the United Kingdom and Australia. In Zeebrugge (Belgium), the landfall for the Belwind project's cable connection was set up using remote-controlled horizontal drilling. Large-scale projects involving the building of a wind farm in Walney (51 turbines in the Irish Sea) were completed on behalf of Dong Energy and, with the help of ‘Goliath’, which was commissioned at the end of 2009, pre-piling weighing up to 600 tonnes was positioned in the seabed. At the same time, under a joint venture with Scaldis, GeoSea brought in the jack-up platform ‘Buzzard’ to successfully complete the Ormonde project. On this occasion, use was made of a newly developed underwater frame to install pre-piling. The company was awarded a number of new assignments for the Borkum West offshore wind farm north of the German coast, while at the same time the Baltic II contract was signed for 80 offshore foundations, jackets and pre-piling. GeoSea is installing the foundations and turbines on the Thornton Bank on behalf of C-Power. DEME's offshore maintenance branch, Offshore Wind Assistance, once again carried out inspection activities in the framework of this project, for which it also concluded a contract with Repower.. Environmental activities: soil decontamination and storage of polluted dredging spoils DEC-Ecoterres, the group's environmental branch, confirmed its leadership position and achieved turnover growth of no less than 50% compared to 2009. Environmental activities accounted for 13% of the turnover generated in 2010. Long-term assignments in the Benelux countries as well as major environmental contracts in the United Kingdom and Brazil ensure the continued viability of the environmental branch. DEC decontaminated the site in Stratford, which is to be the home of the 2012 Olympic Games, and began decontamination and remediation work at the former Avenue cokes plant near Chesterfield in England. The references and experience acquired on the European mainland are an important factor in efforts to expand operations to other continents. In this context, decontamination and Scaldis - Rambiz in Ormonde. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 24. nal. Deepening works in the access channel to the Port of Mailiao (Taiwan), done on behalf of Formosa Plastics Group, was successfully completed in the first quarter of 2010. Remediation dredging works on the Pasig River in Manila (Philippines) were completed ahead of schedule. This will enable efficient flood control in Metro Manila as well as improved navigability. Extensive works done in the context of quay construction activities for Newcastle Coal Infrastructure Group in Newcastle (Australia) were successfully carried out during the first quarter of 2010. Moreover, DEME concluded the contract for the preparatory work to be carried out in the framework of the future massive LNG project in Gladstone. In preparation for the construction of the outer harbour in Port Hedland (Quantum) for BHP Billiton, the first development phase for dredging works was completed and GeoSea carried out extensive soil investigations for the further adjustment of the entire project..

(25) n n n n n. Europe Middle East & India Africa America Asia Pacific. Split of turnover by activity. 10% 10% 51%. 13%. n n n n n. Capital dredging Maintenance dredging Fallpipe and landfalls Environmental works Marine works. Building materials DBM (DEME Building Materials) continued with its strategy of investing in marine aggregates based on the balanced geographical distribution of gravel concessions in French, British, Belgian and German waters. In addition, long-term partnerships were set up with French, British and German partners active in the construction industry. A new gravel trailer with a 5,000 m³ hold, the ‘Victor Horta’, was christened and launched at the end of 2010 and will join the DBM fleet in 2011. In addition to the existing processing factory in Vlissingen, DBM is opening new processing factories in Amsterdam, Dunkirk and Ostend so as to gain an even larger share of the Benelux market.. 13%. 10%. 51%. 16%. 16%. subsoil improvement work began this year in the harbour at Santos, Brazil, and DEC took its first steps on the Canadian market with a soil processing pilot project for Waterfront Toronto. Although water treatment is nothing new to DEC, the establishment of Purazur was an important step towards offering specialised turnkey water treatment services and installations. Moreover, this offer seamlessly ties into DEC's soil and sludge decontamination activities. DEC purchased a 140 ha plot of land in the north of Ghent from the former Nilefos Chemie and plans to develop the site through a joint venture. In Sweden, soil decontamination projects were carried out in Gävle, Timrå and Söderhamn. In Norway, DEC is leading a pilot project on behalf of ExxonMobil for the neutralisation and stabilisation of acid tar at the Valloy site. In France, Extract-Ecoterres continued to grow steadily and the company is maintaining its leadership position. Finally, in Belgium, DI-DEC has completed the construction of the silt treatment and storage system in the Port of Antwerp as part of the AMORAS project.. 10%. Thornton Bank. Power@Sea is also involved in the development of new offshore wind projects in the United Kingdom, France, the Netherlands and Poland. The activities of the newcomer in the group, DEME Blue Energy (DBE), in the area of tidal and wave energy perfectly complement DEME's strategy to participate right from the very beginning in innovative projects that can ultimately create spin-offs benefiting the entire group. In line with this, DBE's activities, in combination with GeoSea's and Tideway's experience in offshore wind energy, make DEME a spearhead for future breakthroughs and initiatives in the field of renewable energy. Through synergies across the various disciplines, the central competence centre and the financial engineering department, which among other things coordinates project financing, DEME has, in its capacity as an all-inclusive service provider, developed solutions for complex offshore infrastructure projects. Moreover, thanks to these competencies, DEME can play an active role in the long-term development and planning of coastal protection along the Belgian coast, the so-called ‘Flanders Bays’ project. In addition, DEME is also participating in research projects, for example to develop new systems that generate electricity using wave energy, such as the FLANSEA project sponsored by IWT, the Flemish Agency for Innovation by Science and Technology. Within the framework of a partnership, DEME has established the new CTOW (Combined Marine Terminal Operations Worldwide) to support its core activities. This company provides marine services, in the broadest sense of the word, to marine terminal operators, and as such makes it possible to also provide upstream services while benefiting from synergies with DEME's competences.. Outlook 2011 Project development and concessions In 2010, DEME continued its efforts to become involved in the development of new projects at the earliest possible stage through concession agreements and PPP (Public-Private Partnership) agreements. Within the specialisation of offshore wind farms, DEME launched initiatives in several European countries through its concession specialist, Power@Sea. The most significant example of this is the participation of Power@Sea in the C-Power project on the. DEME is forecasting activity levels and results for 2011 in line with those for 2010, in part thanks to strong and sustained market demand. The geographical diversification of the order book and the continued contribution of all group specialisations to results justify the confidence in the positive outlook over the medium term.. 25. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Split of turnover by region.

(26) Contracting, dredging and concessions. Algemene Aannemingen Van Laere. As a general contractor active in various sectors, Van Laere has been an important player in the Belgian construction world for decades. Van Laere carries out construction assignments for both private and public clients, and the company has experience with PPP (Public Private Partnership) projects.. Beneficial interest AvH: 100% A.A. Van Laere NV www.vanlaere.be. (¤ 1,000). 2010. 2009. 2008. Turnover. 116,175. 161,044. 135,590. 452. -1,448. 2,411. 2,422. 591. 4,332. Shareholders’ equity (group share). 32,972. 32,337. 34,085. Net financial position. 10,139. 15,823. 21,299. Balance sheet total. 80,985. 93,208. 85,697. 466. 524. 542. Net result Net cash flow. Personnel. Operational overview 2010 A contraction in the building sector, and particularly in the major construction projects segment where Van Laere is active, made 2010 a difficult year. However, Van Laere group did manage to achieve slightly positive results despite this situation. The lower turnover and margins generated by Algemene Aannemingen Van Laere were compensated by the positive results achieved by the subsidiaries Thiran Group, Anmeco and Arthur Vandendorpe. A number of prestigious projects were completed and inaugurated in splendour in 2010. For example, the Shopping Center ‘K in Kortrijk’ (a project executed in the framework of a temporary association) is an inner-city project consisting of a shopping centre, an underground car park and flats. The De Singel project (also executed in the framework of a temporary association) in Antwerp was also finalized in 2010, and it can be considered an exceptional achievement at both the architectural and technical level. As regards the President project in Luxembourg, legal proceedings are underway. No provisions are applied in this instance. Pursuant to efforts to diversify its activities, Van Laere not only builds underground and aboveground car parks, but it recently started operating such facilities as well. For example, a DBFMO (Design, Build, Finance, Maintenance and Operate) assignment was recently awarded in Mechelen for the Schuttersvest underground car park. In addition, construction work on underground car parks in Roeselare and Anderlecht began during the second half of the year. The collaboration with Leasinvest Real Estate continued with, among other things, the start of construction work for the National Archives in Bruges, a PPP project which includes all DBFMO aspects. In this case, Van Laere has taken on the role of developer and executing contractor, but it will also be responsible for managing the car park. Moreover, Leasinvest Real Estate will take responsibility for making the National Archives building available to the Government Buildings Agency over the long term. The listed Red Cross building will be restored by Arthur Vandendorpe according to the rules. As regards civil engineering, 2010 began with a number of large projects. Further to an assignment from Tuc Rail, two major sites for the building of the GEN/RER (Regional Express Network) were started in and around Brussels, specifically in Braine l'Alleud (in the framework of a temporary association) and Hoeilaart. In Evere, construction work began on the Boulevard Leopold III tunnel near NATO headquarters (in the framework of a temporary association). There is no doubt that technical innovation is one of the factors contributing to Van Laere's success. For example, the unique ‘Aqua-Shell capping beam system’ for building and renovating quay walls received the 2010 Innovation Award from WTCB specialists and the Belgian Construction Confederation.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 26.

(27) From left to right: Geert De Kegel, Peter Veegaete, Jean Marie Kyndt, Natalie Verheyden, Jan Bettens, Kristof D’heedene, Rudi De Winter. 27. Leopold III tunnel. Airport Plaza. Anmeco. Groupe Thiran. Anmeco made a positive contribution to results thanks to its typical highly-complex and unique steel constructions. The roof over the inner courtyard of the Maritime Museum in Amsterdam is a nice example of the craftsmanship, as is the awning over the Carrefour de l'Europe in Brussels. Anmeco also took on various assignments involving the building of steel structures on behalf of road construction contractors.. The Thiran group is a general contractor primarily active in Wallonia and Brussels that once again had a good year in 2010. Projects worth mentioning here include ‘Clinique d'Ottignies’, ‘Home Reine Fabiola’ in Auderghem and the complex of apartments for Immolux in Dinant. Thiran's order book is also already filled up to quite some extent for 2011.. Arthur Vandendorpe In 2010, Vandendorpe, a subsidiary active in specialist restoration works, once again made a positive contribution to the results and it continues to offer excellent opportunities for synergies with Van Laere. Projects worth mentioning here include the restoration work on the Volkstheater and the Saint Michael's Church in Ghent, the teacher's residence in Zedelgem, and the La Palma, the Sts. Peter and Paul Church and the Capuchin Church projects in Ostend. The order book for 2011 is already filled up to quite some extent, with the restoration of the Red Cross building for Van Laere (PPP project for the National Archives in Bruges) accounting for a large part of the assignments.. Outlook 2011 The market is showing signs of a cautious recovery, which implies better filled order books for Van Laere and its subsidiaries for 2011. In addition, there are a number of large tenders scheduled in 2011 for which Van Laere has been selected as a participant. Van Laere is cautiously optimistic with regard to the evolution in 2011.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. K in Kortrijk.

(28) Contracting, dredging and concessions. Rent-A-Port From left to right: Marcel Van Bouwel, Geert Dom, Marc Stordiau, Valentijn Maussen, Lutgart Devillers. Rent-A-Port develops port projects on the basis of the port-related and logistical know-how of the Flemish ports as well as expertise regarding maritime structures in the North Sea.. In 2010, Rent-A-Port consolidated its positions for a number of important port concessions, in each case with a strong focus on consultancy, port engineering and port management. However, consolidated results for Rent-A-Port were negative in 2010 due to the decision to stop offshore mining activities in Liberia and to cease operating this concession. Other projects and concessions yielded positive results and have good future prospects. In Nigeria, the concession for the O.K. Free Trade Zone in Ogun State and Ondo State was further developed. A number of initiatives were set up to encourage a positive image of the project among the local population. In Oman, Rent-A-Port has, through a close partnership with the Port of Antwerp, called Consortium Antwerp Port, negotiated a management contract and a port concession for 28 years for the Duqm port. This concession not only encompasses the management. Beneficial interest AvH: 45% Rent-A-Port NV www.rentaport.be. (¤ 1,000). 2010. 2009. 2008. Turnover. 6,106. 7,153. 5,876. EBITDA. -1,449. -1,912. 2,134. EBIT. -5,453. -2,518. 1,730. Net result. -3,761. 105. 3,013. -88. 75. 3,125. 3,346. 5,288. 5,450. Net cash flow Shareholders’ equity (group share) Net financial position. -8,836. -6,802. -2,126. Balance sheet total. 21,729. 22,171. 17,118. 15. 16. 10. Personnel. Port of Duqm (Oman). of the new port, but includes the development of an enormous industrial zone with an initial phase involving an area of 2,000 hectares. A pilotage service is currently being set up in Duqm together with the Flemish Government's Department of Mobility and Public Works, Maritime Access Unit. In Vietnam, the Dinh Vu project has progressed nicely thanks to, among others, the commissioning in 2011 of the new deep-sea port in northern Vietnam (the ‘Lach Huyen’ project) located on the prolongation of the Dinh Vu peninsula. The new port in Lach Huyen will further establish the strategic importance of the Dinh Vu peninsula as well as consolidate the development power of the Rent-A-Port project. In Qatar, various promising port studies were carried out and port installations were supervised (including in Doha and Mesaieed). A new subsidiary, Rent-A-Port Energy, was established in December 2010 to combine Rent-A-Port's know-how with the management activities for wind farm concessions. Rent-A-Port Energy will be an active participant in the group and contribute in this capacity as a shareholder in Otary NV. This new Belgian company will function as a knowledge centre and export driver for Belgian know-how in the area of concessions for offshore wind farms.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 28.

(29) NMP. Nationale Maatschappij der Pijpleidingen (NMP),. 29. originally founded by the Belgian State, specialises in the construction and management of pipelines for the transport of industrial gases and products for the petrochemical industry.. As expected, the network was not extended and no major modifications were made to it in 2010. However, preparations did begin for an inline inspection of the propylene and ethylene pipelines between Antwerp and Feluy (scheduled for 2011 and 2012) and the associated mandatory adaptations to the pipelines. Discussions recently began regarding a possible expansion project in the area around the Port of Antwerp, which could lead to a substantial increase in income for NMP over the longer term. A modification project in Geel that had been postponed is once again running and is scheduled to be carried out in 2012. Moreover, a number of other potential projects are being examined more closely. Results for the 2010 financial year were in line with forecasts and the same is expected for 2011.. Beneficial interest AvH: 75% Nationale Maatschappij der Pijpleidingen NV. (¤ 1,000). 2010. 2009. 2008. Turnover. 12,321. 12,803. 13,548. EBITDA. 4,367. 4,519. 5,205. EBIT. 2,542. 2,656. 3,500. Net result. 1,973. 2,126. 15,500 (1). Net cash flow. 3,798. 3,989. 17,205. Shareholders’ equity (group share). 27,704. 27,113 (2). 50,028. Net financial position. 12,393. 9,879 (2). 30,742. Balance sheet total. 46,463. 47,739. 72,074. 5. 5. 5. Personnel Capital gains on sale of subsidiaries: 12 mio € (2) After dividend payment of 25 mio € (1). WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Pipelines are to be considered as strategic, reliable, safe and environmentally friendly supply lines for petrochemical companies and are vital to their presence in Belgium. NMP contributes towards this in its capacity as manager of a 700-km network of pipelines..


(31) WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Segment. Real estate and related services.

(32) Annual report 2010. Real estate and related services. All participations in the real estate and related services segment contributed positively to the group result in 2010. As a result, the total contribution increased to 8.6 million euros.. Extensa - Tour & Taxis. Extensa AvH 100% Extensa is a real estate developer with focus on residential and mixed projects in Belgium, the Grand Duchy of Luxembourg, Eastern Europe and Turkey.. Leasinvest Real Estate (LRE) AvH 30% The listed investment trust LRE manages real estate in offices, logistics and retail buildings in Belgium and the Grand Duchy of Luxembourg.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 32.

(33) Leasinvest Real Estate - Canal Logistics. Financière Duval - Les Eleis Cherbourg. Anima Care - Haut-Ittre. Financière Duval AvH 39%. Cobelguard AvH 40%. Anima Care AvH 100%. Financière Duval is a multidisciplinary real estate group in France with activities in promotion and construction, tourism, health and parkings.. Cobelguard is a security firm, specialised in static and mobile security, store theft prevention, technical alarm services and security advice.. Anima Care specialises in the care and health sector in Belgium and focuses on the upmarket segment of accommodation and care for the elderly.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 33.

(34) Real estate and related services. Leasinvest - Extensa. The AvH group is active in • real estate management, via Leasinvest Real Estate (LRE): a listed investment trust with a real estate portfolio worth 494 million euros, invested in offices, logistics and retail buildings in Belgium and the Grand Duchy of Luxembourg; • real estate development via Extensa with residential estates as well as mixed developments in Belgium, the Grand Duchy of Luxembourg, Eastern Europe and Turkey.. The AvH group holds a total of 1,204,102 shares (30.0%) of the listed investment trust Leasinvest Real Estate, of which 29.3% is directly held via the Extensa Group. LRE contributed 5.0 million euros in 2010 (compared to 5.9 million euros for 2009) to the result of AvH. After considerable provisions were set aside in recent years as a result of the global real estate crisis, Extensa's development activities once again yielded a modestly positive result of 1.2 million euros in 2010 (-7.8 million euros in 2009). This result originates primarily from the land development activity. The first profits on the apartments under construction have been recognized. The consolidated shareholders' equity of the Extensa Group amounted to 124.8 million euros (117.7 million euros in 2009), taking into account a subordinated loan by AvH for 13.9 million euros. The net financial debts decreased to 75.3 million euros at the end of 2010 (83.9 million euros at the end of the financial year 2009).. Operational overview 2010 Extensa Group A permit application had already been submitted in 2009 for the ‘Groeningen’ (499 residential units) development project in Kontich and the ‘Parkveld’ (62 residential units) development project in Leuven. Rulings from the Council of State and Council for Permit Disputes are still pending in this matter. During the year, a development permit was obtained for phase 2 of the ‘De Nieuwe Heide’ project in Hasselt, as was an amended development permit for phase 1 of the ‘De Lange Velden’ project in Wondelgem. In the meantime, the road and infrastructural works for both phases of these projects have reached provisional completion. In 2010, several plots of land acquired for projects were sold: Ghent-Wondelgem (6.3 million euros), Herent (1.5 million euros) and Hasselt-Kuringen (1.2 million euros). Construction of phase 1 (21 apartments and 25 residential homes) of the urban development project ‘CederPark’ in Hasselt has continued at full pace. Half of the residential units were sold and the first homes and underground car park have reached provisional completion. Part of the phase 1 construction work on the inner city project ‘De Munt’ in Roeselare has reached provisional completion and, in the interim, work on the construction of the large underground car park (550 parking spaces) and on the second residential phase has started. In phase 1, 32 of the 38 apartments were sold and 71% of the retail floor space was let. In addition, a construction permit was obtained for phase 3 of the project, to build 4,987 m² of apartments De Munt - Roeselare. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 34.

(35) From left to right: Laurent Jacquemart, Ward Van Gorp, Kris Verhellen. 35. and 2,374 m² of retail space. The project has a total of 134 apartments and 8,634 m² of retail space. In 2010, a number of new project designs were developed on land in the Extensa portfolio, such as an apartment building (45 units) in Zwijndrecht, an apartment building (32 units) in Schilde and an estate project (40 plots) in Edegem. Early in the year the affiliate, Immobilière du Cerf (50%), was also set up to develop a residential project on 8 ha of land in the municipalities of La Hulpe and Rixensart. In late 2010, another partnership was set up between Extensa, DEC (DEME) and BPI (CFE) under the name ‘Terrenata’ with a view to the remediation and development of brownfield sites. After the Brussels-Capital Region ordered the City of Brussels, by a decree of 23 April 2009, to approve, within three years' time, an extraordinary zoning plan for the Tour & Taxis site (total construction volume of 370,000 m²), the building permit application submitted in October 2007 was finally granted on 17 February 2010 (provisionally confined to 218,000 m²). In March 2010, an additional building permit application was submitted for construction of a new, passive office building of 16,725 m² to be leased to the Brussels Institute for Environmental Management (BIM). This planning permit also covers a newbuild underground public car park with 249 spaces. It is expected that this permit will be obtained in 2011, after which construction can commence. The City of Luxembourg (Grand Duchy) approved the master plan (Plan d'aménagement particulier - PAP) to develop the ‘Grossfeld’ site in July 2010. This plan became definitive and executable in November 2010 and allows a mixed development of around 400,000 m² (for homes, offices, shops, hotel, etc.). Permit applica-. Bomonti - Istanbul. Beneficial interest AvH: 100% Extensa Group - Leasinvest Real Estate www.extensa.be. (¤ mio). 2010. 2009. 2008. 48.5. 58.1. 58.0. Balance sheet Real estate investments & leasings Land development. 16.2. 17.7. 17.2. Real estate projects. 53.3. 52.7. 47.5. Leasinvest Real Estate (LRE)(1). 80.9. 80.7. 77.6. Other assets. 42.8. 17.5. 36.4. Total assets. 241.7. 226.7. 236.7. Shareholders’ equity (group share)(2). 124.8. 117.7. 119.3. 97.7. 88.2. 98.4. Financial debt(3) Other liabilities. 19.2. 20.8. 19.0. Total liabilities. 241.7. 226.7. 236.7. Contribution to AvH-result. 2010. 2009. 2008. LRE (incl LREM). 5.0. 5.9. 6.4. Extensa. 1.2. -7.8. -1.7. (1) Number of shares 1,173,866 (29.3%) (2) Including subordinated loan of € 13.9 mio by the AvH group (3) Net financial debt: € 75.3 mio (2010), € 83.9 mio (2009), € 80.2 mio (2008). WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Cederpark - Hasselt.

(36) Real estate and related services. 36. Tour & Taxis - Brussels. A number of small buildings were sold, in addition to the prestigious property at Tervurenlaan 72 in Brussels (to Delen - Private Bank), from the Belgian real estate investment portfolio (50.8 million euros, 14 buildings at the end of 2009). As a result, the investment portfolio declined to 40.5 million euros. The most significant assets, the Royal Warehouse and the Public Warehouse of Tour & Taxis, and the Researchdreef office building in Anderlecht, are almost completely leased, with a remaining average contractual lease period of more than 3 years. In addition, Extensa still holds a stake of 8.0 million euros in Retail Estates (7.3 million euros at end of 2009).. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. tions, based on this master plan, for the first phase of apartment buildings will be submitted in 2011. The development company Grossfeld PAP (50%) is a joint venture involving the Luxembourgbased, family-owned group Promobe Participations. A number of different building lots (for, among others, a McDonald's drive-thru) were sold in the ‘Extensa Business Park’ in Trnava, Slovakia (Top Development, Extensa 50%). The retail parks developed by the Belrom partnership in Romania, which recently opened, managed to achieve stability in 2010. As a result, there was no need to set further provisions aside for the rental guarantee on the already-sold retail park (53,000 m2) in Targu Mures (Extensa 30%) and the valuation placed on the retail park (51,500 m2) in Focsani (Extensa 20%) could be retained. Extensa Romania (100%) was set up in December 2007 and acts as project developer for two joint ventures in which the Extensa Group has a 50% stake. A building permit was obtained in the third quarter of 2010 for the office building (24,000 m2) with a prime location in the Pipera neighbourhood of Bucharest. In the meantime, the old, existing buildings have been demolished. An amended permit, based on the new market conditions, is expected in 2011 for the residential project in Arad, a city in the northwest of Romania. Extensa Istanbul (50%) received a building permit at the end of 2009 for the ‘Bomonti Apartman’ project in the centre of Istanbul. Building commenced in the first quarter of 2010 and is expected to reach completion in the second quarter of 2011. By the end of 2010, 48% of the apartments had already been sold on plan. A building permit for the ‘Bomonti Studyo’ project, which consists of 114 apartments, was granted in late October 2010. Work on the site is planned to start in Q1 2011..

(37) From left to right: Michel Van Geyte, Micheline Paredis, Jean-Louis Appelmans. Leasinvest Real Estate (LRE). office space, which is constructed in two phases. The first phase reached completion in late March 2010 and the second phase is scheduled for the second quarter of 2011. As regards the as yet unleased first phase, a rental guarantee was received from the seller/project developer through March 2011; • In July, as part of a dynamic buildings policy, 7 office buildings in the Axxes Business Park were sold for the sum of 44.4 million euros; • In August, 25% of The Crescent office building (Anderlecht/ Brussels) was made available to Agence et Messageries de la Presse, with a contract due to commence in May 2011. By the end of 2010, this had increased to 30%, proving that this property is well positioned in the market; • In October, the office building at Louizalaan 250 in Brussels was sold for 24.1 million euros;. Brixton - Zaventem. Beneficial interest AvH: 30% Leasinvest Real Estate Comm. va www.leasinvest.be. (¤ 1,000) Net result (1). 2010. 2009. 2008. 14,266. 18,380. 22,833. Shareholders’ equity (group share). 275,408 274,924 264,438. Real estate portfolio (fair value). 493,900 537,518 563,234. Rental yield (%). 7.41. 7.48. 7.27. 97.45. 97.74. 97.29. Net asset value (in €). 68.92. 68.79. 66.17. Closing price (in €). 63.36. 58.97. 48.05. 4.10. 4.00. 3.80. Occupancy rate (%). Per share:. Gross dividend (in €). (1) Until 2007, the financial year of LRE ended on June 30. In 2008, LRE had an extended financial year of 18 months.. Cegelec - Zwijndrecht. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. Leasinvest Real Estate operates in three markets, each affected by the economic climate in a different way. The Belgian offices market is still faced with low leasing volumes, low leasing prices and significant vacancies (>11%). The logistics market also had a difficult year as a result of the economic crisis. Conversely, the retail market continued to do very well. LRE realised a number of significant transactions in 2010: • In January, the office building in Zwijndrecht (Antwerp) was successfully completed and rented out on a 15-year fixed lease to Cegelec NV; • In March, it acquired 100% of the shares in Canal Logistics NV. The ‘Canal Logistics’ project, situated along the canal in Brussels (Neder-over-Heembeek), is an important and unique logistics project involving 50,000 m2 of warehousing and 2,500 m2 of. 37.

(38) Real estate and related services. Montimmo - Luxembourg. Nationales Archives - Bruges. • End 2010, work started on the construction of the new National Archives in Bruges, which was awarded to Algemene Aannemingen Van Laere - LRE in 2009. Leasinvest Real Estate will not take this project over until it reaches completion, which is scheduled for late 2012, and will then rent it out to the Government Buildings Agency on a 25-year fixed lease.. The average terms for bank loans and interest rate hedges were proactively extended during the last two quarters of 2010. As a result, the lending provision is guaranteed for a longer period and interest rate increases will have a lower negative effect on the payment of interest charges. The fair value of the consolidated real estate portfolio, project developments included, amounted to 494 million euros at the end of 2010 (compared to 538 million euros as at 31 December 2009). The 8.2% decrease is largely due to the sale of the Axxes Business Park and office block on Louizalaan 250, and write-downs on The Crescent building and on the first phase of ‘Canal Logistics’. This real estate portfolio consisted of 56% offices, 24% logistics and 20% retail space and was spread over 37 buildings in Belgium (55% based on the fair value of the portfolio) and 15 buildings in Luxembourg (45%). The average duration of the portfolio was 3.8 years (2009: 3.9 years). The occupancy rate (including the rental guarantee on the first phase of ‘Canal Logistics’) remained constant at 97.45% (2009: 97.74%). The rental yield on the fair value amounted to 7.41% (2009: 7.48%). As at 31 December 2010, the shareholders' equity (group's share) stood at 275.4 million euros. The re-valued net assets amounted to 68.92 euros per share based on the fair value of the real estate (68.79 euros as at 31 December 2009). The financial debts as at 31 December 2010 decreased, as a result of the aforementioned sales, to 220 million euros (255 million euros as at 31 December 2009). The debt ratio decreased as a result (calculated according to RD 21 June 2006) to 44.13% (47.61% as at 31 December 2009).. LRE is aware of the growing concern with the sustainability of its buildings and is putting energy-saving measures in place wherever possible. Examples include the supply of green energy (AlpEnergie, 2009), the generation of power through solar-cell technology on the roof of a logistics centre (Wommelgem, 2009) and the placement of a green (rainwater absorbing) roof (Canal Logistics, 2010).. LRE: Portfolio by type 13% n n n n n n n n. Offices Brussels Offices Luxembourg Offices Mechelen Offices Antwerp Logistics Belgium Logistics Luxembourg Retail Belgium Retail Luxembourg. 5% 4%. 21%. 2%. 21%. 28%. 6%. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. 38.

(39) 39. The Crescent - Anderlecht. The Crescent - Anderlecht. LRE's balance sheet total stood at 514.0 million euros as at 31 December 2010 (2009: 552.1 million euros). The rental income decreased slightly over the 2010 financial year, as a result of the sales in 2010, to 38.4 million euros (39.2 million euros as at 31 December 2009). LRE closed the 2010 financial year with a net result (group's share) of 14.3 million euros (18.4 million euros as at 31 December 2009), being 3.57 euros per share (4.60 euros as at 31 December 2009). The net current result amounted to 22 million euros and was comparable to that for 2009. The price of the LRE share fluctuated during the 2010 calendar year between 56.66 euros and 68.89 euros. The closing price at the end of the year was 63.36 euros. The gross dividend per share over the 2010 financial year will amount to 4.10 euros, yielding a dividend return (based on the closing price) of 6.47% (2009 financial year: 6.78%).. Outlook 2011. In 2011, Leasinvest Real Estate has more significant lease breaks than in 2009 and 2010, which could result in a lower occupancy rate if these properties are not leased again. LRE continues to support a consistently proactive commercial approach towards the leaseholders in order to limit the number of vacant premises. The economy showed hopeful signs of improvement at the end of 2010. Given that the real estate market is late cyclical and runs an average of 18 months behind the economic trend, any recovery of the real estate market would be foreseeable for 2012 at the earliest. However, the impact of the financial and economic crisis may lead to further negative variations in the current values of real estate investments and financial assets. LRE will continue to focus on a dynamic management of its buildings portfolio, which may result in further disposals of existing buildings and the search for suitable replacement investments.. WorldReginfo - 959575a2-5fd0-4321-a91c-58311de5c161. After the close of the financial year, the commercial lease with the main lessee, Redevco Belgium NV, in the retail park in Nossegem (Zaventem) was terminated early in January 2011. Since then, LRE has been leasing this excellently located retail building directly to well-known retailers such as Brico, Leenbakker, Blokker and Tony Mertens.. For Extensa, the continued sale of centrally located apartments under construction (particularly Istanbul, Roeselare, and Hasselt) and of building land for which permits have already been granted must to a larger extent contribute to the result for 2011. The start of specific newbuild projects, both on the Tour & Taxis site in Brussels and the Grossfeld site in Luxembourg, may continue to positively affect the results..