2023 Interim Result¹ : MEUR8.8
2023 annualized ROE: 11%
The Board of Directors of ABC arbitrage, presided by the Chairman Dominique
Ceolin, met on September 14, 2023 to
approve the consolidated financial statements for the first half 2023¹.
+---------------------+------------------+------------------+------------------+
| In EUR millions |June 30, 2023 IFRS|June 30, 2022 IFRS|Dec. 31, 2022 IFRS| +---------------------+------------------+------------------+------------------+
|Net revenues |EUR20.2m | EUR31.5m|EUR61.2m |
+---------------------+------------------+------------------+------------------+
|Net Income |EUR8.8m | EUR16.2m|EUR29.2 m |
+---------------------+------------------+------------------+------------------+
|Earnings per share | | | | |(EPS) |0.15EUR | EUR0.27|EUR0.49 |
+---------------------+------------------+------------------+------------------+
|Return On Equity | | | | |(ROE) |11.1% | 20.2%|18.0% | +---------------------+------------------+------------------+------------------+
|Equity | EUR160m| EUR160m| EUR162m|
+---------------------+------------------+------------------+------------------+

  * Context - After a 2022 financial year marked by the war in Ukraine and a
    sharp rise in interest rates and inflation, the first half of 2023
    presented, counter intuitively, market parameters significantly below their
    historical averages. In particular, volatility fell back to the low points
    of the 2019 financial year, significantly below the volatilities seen over
    the last 3 financial years. The mergers and acquisitions sector, for its
    part, has been impacted by the rise in interest rates, leading to doubts
    about the valuation of these transactions. As a result, market volumes were
    significantly lower than in previous years.

* Business Performance - The first half of 2023 result is broadly in line with

    the market parameters for this first half. The group faced a number of
    unusual obstacles, such as the simultaneous low volatility and relatively
    low levels of M&A activity. The temporary halt to the Group's activities in
    digital assets, following the collapse of FTX and the banks in this

ecosystem at the beginning of 2023, has also hampered the Group's ability to

    increase its rhythm of activity, however without putting this objective in
    question for the coming semesters.
    Group AUM as at 01/09/2023 is at the same level as at the beginning of the
    year. However, the investment funds developed by the group, which are only
    accessible to professional investors, are demonstrating a positive
    performance dynamic significantly above risk-free rates and continue to
    increase their AUM capacity as per the 2025 business plan.
  * Dividend Policy - On the proposal of the Board of Directors, and in
    accordance with its quarterly distribution policy, ABC arbitrage will pay
    two interim dividends of EUR0.10 per share each.
  * First interim dividend ex-date is October 10, 2023, and dividend will be
    paid on October 12, 2023.
  * Second interim dividend ex-date is December 5, 2023, and dividend will be
    paid on December 7, 2023.
  * Outlook - Volatility continued to decline in the third quarter, with no
    significant upturn in the M&A sector or in corporate capital transactions.
    The rhythm of the Group's activity remains consistent with this situation,
    and is still in line with the 2019 financial year. ABC arbitrage is
    continuing to implement its Springboard 2025 strategic plan, which was
    presented last March. This is being achieved by synchronising investments
    with the rhythm of activity and by developing new strategies and
    quantitative investment funds for professional clients. The Group's
    objective therefore remains to significantly increase its profitability in
    such sluggish conditions as met in 2023. For the coming months, the main
    leading indicators show that the macroeconomic situation is deteriorating

significantly, particularly in Europe, which should restore volatility to at least its historical average, a level that remains favourable to the Group's activities. ABC arbitrage is therefore maintaining the ambitions of its
Springboard 2025 plan, ambitions correlated with the opportunities presented by the global financial markets.
(1) At this date, the audit procedures carried out by the statutory auditors are
in the process of being finalised.
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