Company report - Duvelmoortgat

Company report
Food & Beverage Belgium
DUVEL ACCUMULATE
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11/01 01/02 03/02 05/02 07/02 09/02 11/02
Price
DJ Beverage re-based
Date: 25 November 2002
Price: EUR 16.65
Reuters: DUVE.BR
Bloomberg: DUV BB
Initiation of coverage
(EUR - FY end: December) 2000 2001 2002e 2003e 2004e Market cap. (m) 88.9
Sales (m) 48.7 51.7 55.9 58.2 61.1
EBITDA (m) 15.0 14.9 15.7 16.9 18.4 No. of shares 5,341,390
EBIT (m) 10.1 10.2 10.5 11.6 12.9 Free float 21.3%
Net profit (m) 6.3 5.1 5.3 7.3 8.3
EPS adj. 1.24 1.26 1.21 1.46 1.67 Avg. no. trad. sh. 12 mth 620
CFPS 2.23 2.23 2.27 2.57 2.78 Avg. trad. Vol. 12 mth 12,097
BVPS 8.20 8.84 9.38 10.16 10.90 Price high 12 mth 23.50
DPS 0.45 0.48 0.46 0.59 0.83 Price low 12 mth 14.60
Net Debt(+)/Cash(-)(m) -9.0 -3.1 0.5 -3.3 -7.1 Abs. perf. 1 mth 12.9%
Interest coverage N.R. N.R. N.R. N.R. N.R. Abs. perf. 3 mth -10.5%
EV/EBITDA 8.2 6.6 5.5 5.1 4.5 Abs. perf. 12 mth -17.2%
EV/EBIT 12.2 9.7 8.2 7.5 6.4
P/E 20.4 16.0 13.7 11.4 10.0 Local index No
Dividend yield 1.8% 2.4% 2.8% 3.5% 5.0% DJ STOXX 50 No
ROCE 23.4% 16.7% 14.8% 15.4% 16.8% EPS 2001-04 CAGR 9.8%
Main shareholders: FIBEMI 62.8% - Baert Moortgat 10.9% - Lessius 4.7% - Management 0.2%
The devil inside
• Duvel Moortgat is a Belgian brewer whose margins are among the highest in the sector.
• The company mainly operates in the high-fermentation speciality beer market, where it has a
very strong position especially in Belgium.
• First half results were slightly impacted by the heavy investment the company made this year
in order to rejuvenate its production plant (bottling system, water treatment plant, new
buildings, …).
• Our valuation models lead to a fair value of EUR 18.5 per share, leaving more than 10%
upside potential. Hence, given the low risk associated with the beer business in general and
Duvel in particular, we initiate our coverage with an ‘Accumulate’ rating.
Bank Degroof acts as liquidity provider for Duvel Moortgat
Christophe Piron +32 2 287 95 43 christophe.piron@degroof.be

TABLE OF CONTENT
DUVEL
Recommendation 3
SWOT analysis 3
Valuation 4
Discounted free cash flow 4
Dividend discount model 5
Economic profit or EVA TM model 5
Company description 6
Introduction 6
Business description 6
1. Production 7
2. Services 8
3. Real Estate 8
Positioning & Outlook 8
Financial calendar 12
25 November 2002 Page 2

Recommendation
DUVEL
Duvel Moortgat is a Belgian brewer based in Puurs and created in 1871. The
revenue stream of the company mainly comes from Belgium and from its high
fermentation speciality beer: the Duvel.
Before having invested in the Czech Republic (Bernard Brewery), Duvel
diversified through Freya’s Delit Fruit, a company producing fresh fruit juices
under private label and own brand.
Although decreasing these last two years (due to the recent investments
mentioned below), the margins of the company remain among the highest in the
sector. We account this for from two major features:
• More than 75% of revenues come from the highly priced speciality beer
branded under the company’s name: Duvel.
• Strong focus on a small size local market (78% of revenues come from
Belgium) enabling cost optimisation.
Nevertheless, Duvel Moortgat remains a small player compared to its listed peers.
With a production of around 350 khl, Duvel Moortgat accounts for less than 1% of
the total production of Interbrew and less than 2.5% of the Belgian beer market.
Duvel has a very strong balance sheet. Indeed, thanks to strong cash flow and
despite heavy investments in its new headquarter building, in the water treatment
plant and in the new bottling system, we expect the company’s gearing to stand
only at 1.0% equity by the end of this year. Taking into account the forthcoming
capital expenditures, we expect Duvel to be in a net cash position by the end of
2003.
Given its strong focus on the Belgian market, Duvel Moortgat should fully benefit
from the tax reduction plan from 2003 onwards. We estimate the positive impact
on the net current results of the company at 10%.
Our valuation models lead to a fair value of EUR 18.5 per share, leaving more
than 10% upside potential. Hence, given the low risk associated with the beer
business in general and Duvel in particular, we initiate our coverage with an
‘Accumulate’ rating.
SWOT analysis
Strengths Weaknesses
• Strong balance sheet
• Highest margins in the sector
• Strong brand recognition
Opportunities Threats
• Investment capacity due to net
cash position
• Speculative attraction (MBO) due
to low free float & valuation
• Low free float and liquidity
• Limited production capacity
• Competitors which have a
significantly larger size could
easily put heavy price pressure
25 November 2002 Page 3

Valuation
The DCF model
leads to a value of
€ 18.42 per share
Three methods have been used for the valuation of Duvel:
• A valuation based on the discounted free cash flows
• A valuation based on the dividend discount model
DUVEL
• A valuation using the economic profit or EVA TM method
Given the current market parameters, these valuation models (see detail below)
lead to a fair value of EUR 18.5 per share. One should note that the risk premium
determined by Bank Degroof’s Dividend Discount Model stands at 5.58%,
significantly above the historical average of 2.84%.
Discounted free cash flow
The DCF Valuation points to a theoretical value of equity of EUR 98.41 m or
EUR 18.42 per share. As mentioned above, the market risk premium stands at
5.58%. The risk free rate stands at 5.22% and the estimated beta of Duvel is
0.79. A long-term growth rate of 0.75% (from 2006 onwards) was applied in
calculating the terminal value. The higher capital expenditures in 2005 can be
explained by the EUR 5 m investment in new crates.
DCF model 2002 2003 2004 2005 2006
- Market risk free 5.22%
- Market risk premium 5.58%
- Long term growth 0.75%
- Beta (leveraged) 0.79 0.79 0.75 0.74 0.78
NOPLAT 6.12 7.41 8.33 9.56 10.12
+ Depreciation & other non cash 5.19 5.46 5.51 5.62 6.30
- Investment -12.26 -7.16 -6.89 -10.44 -6.30
- Investment in working capital -0.79 0.20 -0.47 -0.57 -0.30
= Free cash flow -1.74 5.92 6.47 4.18 9.82
Discount factor 0.99 0.90 0.82 0.75 0.68
Present value of free cash flow -1.72 5.34 5.32 3.12 6.68
Cumulative present value of FCF 18.74
+ Present value of terminal value 74.38
= Entreprise value 93.12
- Value of debt 6.06
- Provisions -0.79
- Minorities 0.01
+ Value of peripherical assets 0.00
= Theoretical value of equity 98.41
Idem per share 18.42
25 November 2002 Page 4

The DDM valuation
points to a value of
€ 18.58 per share
EVA TM leads to
€ 18.42 per share
Dividend discount model
DUVEL
The parameters used for valuing Duvel through the dividend discount model were
the same than for the DCF model (Cost of Equity: 9.6%). The long-term growth
rate of dividends used in the Gordon-Shapiro formula was 2.64%.
Using these parameters, the dividend discount model leads to a value of
EUR 18.58 per share.
Economic profit or EVA TM model
The Economic Value Added model underlines the significant value creation of the
company. We account this to the very high margin of the company compared to
other brewers. Nevertheless, we revised those margins significantly downwards
for this year due to heavy investments made this year in the water treatment
plant, the new headquarter building and the new bottling system.
Using the following parameters, the model leads to a value of shareholders’
equity of EUR 98.41 m or EUR 18.42 per share.
Economic profit model 2002 2003 2004 2005 2006
- Market risk free 5.22%
- Market risk premium 5.58%
- Long term growth 0.75%
- Beta (leveraged) 0.79 0.79 0.75 0.74 0.78
RoIC 14.8% 15.4% 16.8% 18.6% 18.6%
WACC 9.7% 9.7% 9.8% 10.0% 9.8%
Spread 5.1% 5.7% 7.0% 8.6% 8.8%
Invested capital (at year start) 41.30 48.14 49.64 51.49 56.87
Economic profit 2.10 2.74 3.47 4.42 4.99
NOPLAT 6.12 7.41 8.33 9.56 10.12
Capital charges -4.02 -4.68 -4.85 -5.14 -5.58
Economic profit 2.10 2.74 3.47 4.42 4.55
Discount factor 0.99 0.90 0.82 0.75 0.68
Actualized economic profit 2.08 2.47 2.86 3.31 3.09
Cumulative PV of economic profit 13.81
+ Present value of terminal value 34.44
+ Capital invested 44.87
= Value of operations 93.12
- Value of debt and provisions 5.28
- Minorities 0.01
+ Value of peripherical assets 0.00
= Theoretical value of equity 98.41
Idem per share 18.42
25 November 2002 Page 5

Company description
Introduction
DUVEL
The history of Duvel Moortgat dates back from 1871 when Jan-Leonard Moortgat
established the Moortgat brewery in Breendonk (Belgium). The foundation of the
company' success is a beer based on English ale. From 1923 onwards, this beer
was marketed under the name "Duvel". The production increased from 3,000
crates in 1926 to more than 2,750,000 today. The company has been listed on
the Brussels Stock Exchange in June 99 at EUR 36.50.
Duvel Moortgat is mainly held by the Moortgat family both directly (through a
10.93% stake) and indirectly (through Fibemi S.A. - 62.79%). Free float remains
limited (21.34%) and the personnel holds a 0.24% interest in the company.
Shareholders’ structure
Source: Company data
Beside the existing 5,341,390 shares, the extraordinary shareholders meeting of
March ’99 created a 250,000 warrants plan. Those warrants have a lifetime of 10
years and can only be exercised 3 years after their attribution. In January 2002,
20,340 attributed warrants could be exercised at a price of EUR 21.57.
Business description
Duvel Moortgat is an integrated company managing the production and
distribution of its products through three business units: Production (93.9% of the
2001 revenues and 96.4% of the EBITDA) , Services (Revenues: 5.6% -
EBITDA: 2.0%) and Real Estate (Revenues: 0.5% - EBITDA: 1.6%).
Divisional breakdown
Production
93.9%
Fibemi S.A.
62.79%
Source: Company data
Baert-
Moortgat
2001 Revenue by division
10.93%
Lessius
4.70%
Brewery Duvel Moortgat S.A./N.V.
Services
5.6%
Real
Estate
0.5%
Production
96.4%
Free-Float
& Staff
21.58%
2001 Ebitda by division
Services
2.0%
Real
Estate
1.6%
25 November 2002 Page 6

1. Production
DUVEL
The main brands of beer produced by Duvel Moortgat (or by one of its
subsidiaries) are Duvel, Maredsous, Passendale, Bel Pils, Steendonk and
Bernard (in which the company took a 50% stake in August 2001).
In 2001, the Duvel brand accounted for 83% of the volumes sold by Duvel
Moortgat S.A. and 59% of the volume sold for the whole group. In terms of
turnover, Duvel represented 76.2%. Due to its in-the-bottle high fermentation
process, the Duvel (8.5% alc.) is not sold in vats (although technically possible).
The whole production process for the Duvel is 3 months long.
Beside the Duvel, there are four other own brands that are brewed in Breendonk:
Bel Pils, Passendale, Vedett (that witnesses an unexpected revival in some
trendy places in Belgium) and Wonderlight. The three Maredsous beers are also
brewed in Puurs under a licence agreement with “Fromagerie et Brasserie de
Maredsous”.
Duvel Moortgat also owns a 50% stake in Brewery Steendonk. Brewery
Steendonk is a joint venture (50/50 with Brewery Palm) that produces the
Steendonk white beer. Steendonk white beer accounted for 2% of the company’s
revenues in 2001.
Duvel Moortgat has an interest in Brewery Ommegang through a 45% stake in
the American Belâme Ltd. Brewery Ommegang is a Cooperstown (New-York)
based joint venture with an American importer of Belgian speciality beers.
Ommegang brews, bottles and markets Ommegang beers Hennepin and Rare
Vos.
Moreover, since 2000, the company also owns a 70% stake in Freya Deli Fruit
S.A. that produces and markets fresh fruits juices as private labels or under the
“Freya” brand.
Revenues breakdown
Duvel
76.2%
2001 Revenues by brands
Source: Company data
Other
1.5%
MHS
4.6%
Freya
3.0%
Steendonck
1.6%
Bernard
3.6%
Bel Pils
4.7%
Maredsous Belgium
4.1% 77.2%
Passendale
0.7%
2001 Revenues by region
Netherlands
10.5%
UK
0.9%
France
4.4%
Czech Rep.
3.6%
USA
1.3%
Other
2.2%
25 November 2002 Page 7

Positioning & Outlook
2. Services
DUVEL
The services business unit of Duvel Moortgat has two activities: distribution and
financial services. Moortgat Horeca Services (MHS) is the result of the merger of
Belgian regional resellers groups into one entity responsible for the distribution of
the beer portfolio within hotels, restaurants & cafés (HORECA). Moortgat
Financial Services is a financial institution responsible for the HORECA credit
management.
3. Real Estate
The real estate division of the company not only manages the plots and buildings
owned by the company but also some sales points that imply recurring rental
revenues, and makes sales contracts easier in some strategic places in Belgium
and abroad.
Duvel is positioned in the high margin niche market of highly priced speciality
beers. These last few years, the company recorded among the highest margins of
the sector. Indeed, while Interbrew recorded a 5-year average operating margin of
11.3%, Duvel offered an average margin of 21.7%. Without taking into account
the impact of the lower margins in 2001 due to the acquisition of Bernard Brewery
and the consolidation of Freya, the average operating margin of the company is
even higher at 22.4%. Moreover, one should note that Duvel, as required by the
Belgian Gaap, includes excises in its revenues and then deducts them as “other
operating charges” which negatively impacts the margin (in percentage)
compared to IAS where a company must directly deduct excises from revenues.
The difference in margins with its peers shows the very high profitability of Duvel.
Nevertheless the positioning, the size, and the growth of the company can explain
this difference.
Firstly, in terms of positioning, the Duvel brands represents 75% of the revenues
of the company, as shown in the chart above. As Duvel is positioned as a high
fermentation speciality beer, the average pricing of the company’s products is far
above the prices applied by its competitors that have a more balanced portfolio of
brands (lager-premium-speciality).
Secondly, in terms of size, Duvel Moortgat has a very limited market coverage
and is one example of the fragmentation of the whole beer market and of the
Belgian Beer market in particular. We estimate the production of Duvel Moortgat
at 350 khl or less than 2.5% of the sole Belgian beer production, which, according
to CBMC, amounts to 15,039 khl (5,857 khl exported). Although it may seem a
disadvantage, the size of Duvel is clearly one of its key success factors. Indeed,
being mainly (78% - see the chart above) active on the Belgian market, Duvel
enjoys a strong brand recognition (mainly in the Dutch-speaking part of the
country), with powerful distribution channels, implying a limited cost structure and,
hence, strong margins.
25 November 2002 Page 8

Peer group comparison: profitability & production
Market
Cap. 1
(in EUR m)
2001 Beer
Volumes
(in mhl)
2001Total
Income
(in EUR m)
2001
EBITDA
(in EUR m)
2001 Adj.
net profit
(in EUR m)
2001
EBITDA
Margin
DUVEL
2001 Adj.
net profit
Margin
Duvel 89.7 0.35 53.0 15.0 6.61 28.4% 12.5%
Grolsch 339.3 3.1 278.8 58.7 28.6 21.1% 10.3%
Heineken 14,354.3 80.9 9,163.0 1,609.0 715.0 17.6% 7.8%
Interbrew 9,654.8 96.9 7,271.6 1,449.2 706.4 19.9% 9.7%
Source: European Securities Network – Bank Degroof
Finally, in terms of growth. Given its low size, and despite a very strong balance
sheet, it is difficult for the company to exploit significant external growth
opportunities. Moreover the global European beer consumption is clearly not
increasing (see the table below) and we do not expect the company’s growth to
outperform the market as it did in the past. Hence, few investments are required
to support the underlying growth of Duvel. Though the company’s margins
declined in 2001 (Bernard & Freya investments) and are expected to go on
decreasing in 2002 due to the EUR 8.5 m investments in the new bottling system
that will improve the capacity of Duvel Moortgat from around 40,000 bottles/hour
to 55,000 bottles/hour.
Evolution of beer consumption in Europe from 1991 to 2001
Beer consumption
('000 hl) 1991 … 1996 1997 1998 1999 2000 2001
10Y
Growth
5Y
Growth
Austria 9,661 … 9,185 9,145 8,736 8,807 8,762 8,627 -10.7% -6.1%
Belgium 11,113 … 10,284 10,243 10,011 10,203 10,064 10,060 -9.5% -2.2%
Danmark 6,490 … 6,363 6,165 5,707 5,561 5,452 5,282 -18.6% -17.0%
Finland 4,276 … 4,074 4,170 4,084 4,087 4,024 4,085 -4.5% 0.3%
France 22,880 … 23,133 21,655 22,663 22,833 21,420 21,331 -6.8% -7.8%
Germany 113,871 … 107,987 107,679 104,550 104,629 103,055 100,850 -11.4% -6.6%
Greece 3,787 … 3,885 3,940 4,211 4,355 4,284 4,181 10.4% 7.6%
Ireland 4,335 … 5,196 5,406 5,592 5,699 5,594 5,625 29.8% 8.3%
Italia 13,010 … 13,758 14,535 15,501 15,500 16,289 16,694 28.3% 21.3%
Luxembourg 443 … 469 466 453 474 472 445 0.5% -5.1%
Netherlands 13,639 … 13,276 13,475 13,225 13,309 13,129 12,922 -5.3% -2.7%
Portugal 6,635 … 6,136 6,318 6,494 6,420 6,456 6,276 -5.4% 2.3%
Spain 27,587 … 26,199 26,238 26,417 27,772 28,976 30,850 11.8% 17.8%
Sweden 5,244 … 5,228 5,459 5,077 5,258 5,011 4,896 -6.6% -6.4%
United Kingdom 63,038 … 59,894 61,114 58,835 58,917 57,007 58,234 -7.6% -2.8%
EU 306,009 295,067 296,008 291,556 293,824 289,995 290,358 -5.1% -1.6%
Norway 2,209 … 2,299 2,330 2,203 2,305 2,327 2,290 3.7% -0.4%
Switzerland 4,845 … 4,305 4,249 4,277 4,212 4,195 4,141 -14.5% -3.8%
TOTAL 313,063 301,671 302,587 298,036 300,341 296,517 296,789 -5.2% -1.6%
Source: CBMC, Bank Degroof
1 As of 19-Nov-02
25 November 2002 Page 9

DUVEL
For the FY02, we expect the operating income of Duvel Moortgat to grow by 8.0%
from EUR 52.95 m to EUR 57.18 m. This growth can mainly be explained by price
increases of the Duvel brand product and scope changes. Compared to 1H02, we
expect a slight increase in operating income of 1.3% during 2H02.
For the 2002-2006 period, we expect the revenues to grow at a compound
average growth rate of 4.1%, significantly below the 8.01% revenues CAGR
realised for the 1998-2002 period. This growth, is equally realised through prices
(in Europe) and volumes (in the Czech Republic) increases.
During the first half of this year, the margins of the company suffered a lot from
the integration of Bernard and the investment in the bottling system. We do not
expect margins to increase significantly during the second half of this year as
those investments are still not up-and-running. Therefore, we expect an operating
profit for the FY02 of EUR 9.81 m down by 1.0% vs. the same period last year.
On the long run, we expect the operating margin to reach 21.4%, slightly below its
5-year average.
We expect the bottom line to be impacted by non-cash extraordinary charges of
EUR 1.03 m (mainly on Ommegang) and the net current result for the FY02 to
stand at EUR 6.4 m or 1.21 per entitled share.
The main evolution expected for the FY03 is the tax rate change in Belgium from
40.17% to 33.99%. This has a direct positive impact of 10% on Duvel’s net
current profit. The stable raw materials prices (Duvel has a 3-year contract on raw
materials), the expected increase in revenues by 4.0%, the fact that the new
bottling system will be up-and-running in 2003 and the above mentioned lower tax
rate lead our 2003 EPS to amount to EUR 1.46.
With an expected gearing close to 1% by the end of the current fiscal year and a
strong positive cash flow, Duvel is in a solid financial position in order to face
future investments. Among those, a EUR 5 m investment in new crates is
expected by 2005-2006.
With such a niche on the Belgian market and such a small size, Duvel may well
be seen as an “easy” potential target for the sector’s heavy weights.
Nevertheless, we do not see the family selling at the current price and believe that
there is more potential speculative attraction in an MBO (the family is active in the
company) as the free float only stands at 21%.
Half Year results (EUR m) 1H01 2H01 1H02 2H02(e) Growth Growth FY02(e)
y-o-y h-o-h
Operating income 25.87 27.08 28.41 28.77 6.2% 1.3% 57.18
Turnover 25.28 26.37 27.56 28.32 7.4% 2.7% 55.89
Operating profit 4.95 4.96 4.88 4.93 -0.5% 1.1% 9.81
Margin 19.2% 18.3% 17.2% 17.1% 17.2%
Pre-tax current results 4.77 5.50 4.64 5.16 -6.2% 11.3% 9.80
Margin 18.4% 20.3% 16.3% 17.9% 17.1%
Extraordinary items -0.38 -0.61 -0.65 -0.38 -1.03
Income tax 2.04 2.04 1.74 1.94 3.68
Results consolidated by the equity method 0.00 -0.09 0.12 0.12 0.23
Net profit 2.36 2.76 2.37 2.96 7.3% 25.1% 5.33
25 November 2002 Page 10

DUVEL
Consolidated income statement (EUR m) 2000 2001 2002(e) 2003(e) 2004(e)
Operating income 49.63 52.95 57.18 59.52 62.43
Turnover 48.75 51.66 55.89 58.23 61.13
EBITDA (as reported) 14.92 15.04 15.43 16.76 18.19
Margin 30.1% 28.4% 27.0% 28.2% 29.1%
Operating profit 9.67 9.91 9.81 10.87 12.25
Margin 19.5% 18.7% 17.2% 18.3% 19.6%
EBIT¹ (as reported) 10.08 10.26 10.24 11.30 12.68
Margin 20.3% 19.4% 17.9% 19.0% 20.3%
Pre-tax current results 10.28 10.28 9.80 10.87 12.48
Margin 20.7% 19.4% 17.1% 18.3% 20.0%
Extraordinary items 0.49 -0.99 -1.03 0.00 0.00
Income tax 4.42 4.08 3.68 3.84 4.39
Results consolidated by the equity method 0.00 -0.09 0.23 0.24 0.24
Net profit 6.34 5.12 5.33 7.27 8.33
Group's net profit 6.36 5.17 5.33 7.27 8.33
Group's net current profit¹ 6.60 6.61 6.37 7.70 8.76
Group's net current cash flow 11.91 11.72 11.96 13.52 14.63
EPS¹ 1.24 1.26 1.21 1.46 1.67
CFPS 2.23 2.23 2.27 2.57 2.78
¹ Before goodwill amortization
Consolidated cash flow statement (EUR m) 2000 2001 2002(e) 2003(e) 2004(e)
Net financial debt at year start -13.51 -9.02 -3.10 0.49 -3.27
Net profit (total) 6.34 5.12 5.33 7.27 8.33
Amortisation of goodwill 0.46 0.40 0.43 0.43 0.43
Depreciation 4.90 4.76 5.16 5.39 5.44
Others deprec. & non-cash items -0.03 0.02 1.05 0.07 0.07
Change in working capital -4.35 -0.63 -0.79 0.20 -0.47
Cash generated by operations 7.32 9.67 11.18 13.36 13.81
Net capital expenditure 9.22 12.27 12.26 7.16 6.89
Distribution of profit 2.14 2.40 2.51 2.44 3.08
Change in equity & impact of changes in -0.45 -0.92 0.00 0.00 0.00
scope of consolidation & translation adjust.
Increase in net financial debt 4.49 5.92 3.59 -3.76 -3.83
Net financial debt at year end -9.02 -3.10 0.49 -3.27 -7.11
Total equity (year end) 43.92 47.20 50.09 54.27 58.23
Gearing -20.5% -6.6% 1.0% -6.0% -12.2%
25 November 2002 Page 11

DUVEL
Consolidated balance sheet (EUR m) 2000 2001 2002(e) 2003(e) 2004(e)
Long term assets 27.73 36.16 41.73 43.01 43.98
Tangibles & Intangibles 25.28 32.28 38.93 40.21 41.18
Financial Assets 2.38 3.82 2.80 2.80 2.80
Long Term Receivables 0.06 0.05 0.00 0.00 0.00
Current assets 38.15 31.64 38.07 41.14 44.79
Inventories 2.25 2.1 2.3 2.4 2.5
Accounts Receivable 14.61 15.7 17.1 17.2 18.0
Cash and equivalent 20.81 13.4 18.2 21.0 23.7
Prepayments and Accrued Income 0.48 0.5 0.6 0.6 0.6
Total assets 65.88 67.80 79.81 84.15 88.77
Shareholder's equity 43.80 47.21 50.09 54.28 58.23
Share capital 12.65 12.65 12.65 12.65 12.65
Reserves 31.11 34.53 37.41 41.60 45.55
Capital grants 0.04 0.03 0.03 0.03 0.03
Minority interest 0.12 -0.01 -0.01 -0.01 -0.01
Long term liabilities 10.05 9.10 15.84 15.74 16.09
Provision for risks and charges 0.92 0.79 0.80 0.81 0.82
Other liabilities >1 year 9.13 5.80 15.11 14.36 13.40
Current liabilities 11.91 11.50 13.88 14.13 14.45
Financial debt 2.66 1.95 3.54 3.37 3.14
Trade debt 4.92 4.40 4.76 4.96 5.21
Advance received 0.00 0.00 0.00 0.00 0.00
taxes & remunerations 1.33 1.89 2.05 2.13 2.24
Other amounts payable 2.61 2.64 2.85 2.97 3.12
Accrued charges and deferred income 0.40 0.62 0.67 0.70 0.73
Total liabilities 65.88 67.80 79.81 84.15 88.77
Financial calendar
April 28, 2003 AGM
25 November 2002 Page 12

DUVEL
Institutional sales team
Damien Crispiels +32 2 287 96 97 damien.crispiels@degroof.be
Bart Beullens +32 2 287 91 80 bart.beullens@degroof.be
Eric Debeaud +32 2 287 96 05 eric.debeaud@degroof.be
Hugues de Crozes* +32 2 287 93 24 hugues.decrozes@degroof.be
Peter Deknopper +32 2 287 91 22 peter.deknopper@degroof.be
Laurence de Ryckman +32 2 287 95 80 laurence.deryckman@degroof.be
Germain Dupont +32 2 287 93 23 germain.dupont@degroof.be
Daniel Jeger +32 2 287 93 33 daniel.jeger@degroof.be
Jean-Marc Michelet +32 2 287 96 01 jeanmarc.michelet@degroof.be
Peter Rysselaere +32 2 287 97 46 peter.rysselaere@degroof.be
Stéphane Van Nimmen* +32 2 287 97 72 stephane.vannimmen@degroof.be
* delegate agent
Brokerage team for institutional investors
John Paladino +32 2 287 96 40 john.paladino@degroof.be
Tanguy del Marmol +32 2 287 96 13 tanguy.delmarmol@degroof.be
Patrick Nisot +32 2 287 97 62 patrick.nisot@degroof.be
Robin Podevyn +32 2 287 91 82 robin.podevyn@degroof.be
Christian Saint-Jean +32 2 287 97 80 christian.saintjean@degroof.be
Brokerage services for professional clients
Joël Crevecoeur +32 2 287 96 23 joel.crevecoeur@degroof.be
Mohamed Abalhossain +32 2 287 95 10 mohamed.abalhossain@degroof.be
Frédéric Lebrun +32 2 287 96 18 frederic.lebrun@degroof.be
Olivier Van Peel +32 2 287 91 88 olivier.vanpeel@degroof.be
EUROPEAN SECURITIES NETWORK
BELGIUM Bank Degroof / FRANCE CIC Securities / GERMANY Bankgesellschaft Berlin
GREECE Egnatia Securities / IRELAND NCB Stockbrokers / ITALY Banca Akros
NETHERLANDS F. van Lanschot Bankiers / PORTUGAL Caixa Valores
SPAIN Caja Madrid Bolsa / U.K. Teather & Greenwood
All opinions and projections expressed in this document constitute the judgement of Bank Degroof as of the date of their publication and are subject to change
without notice. Bank Degroof and/or any of its subsidiaries may hold long/short positions in the securities referred to herein including derivative instruments
related to the latter or may have business relations with the companies discussed herein. This material is intended for the information of the recipient only and
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Although they are based on data which is presumed to be reliable and all while reasonable care has been taken to ensure they are derived from sources
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liability for loss arising from the use of the opinions expressed in this document.
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25 November 2002 Page 13