INVESTOR FACTSHEET INVESTOR FACTSHEET

Transcription

1 INVESTOR FACTSHEET

2 Arcadis is the leadig global Desig & Cosultacy firm for atural ad built assets. Applyig our deep market sector isights ad collective desig, cosultacy, egieerig, project ad maagemet services we work i partership with our cliets to deliver exceptioal ad sustaiable outcomes throughout the lifecycle of their atural ad built assets. We are 28,000 people active i over 70 coutries that geerate more tha 3 billio i reveues. We support UN- Habitat with kowledge ad expertise to improve the quality of life i rapidly growig cities aroud the world. STRONG FUNDAMENTALS Strog health & safety track record The largest pure play Desig ad Cosultacy compay globally Truly global etwork based o strog market positios i Cotietal Europe, UK, North ad South America, Middle East, Australia ad Asia Well balaced portfolio with focus o growth markets Cosistet focus o higher added value services resultig i high margis Top cliet roster icludig may Fortue 500 compaies ad leadig govermet etities Excellet track record i acquirig ad itegratig compaies that add value Healthy balace sheet ad ambitious growth strategy GROSS REVENUE BY REGION GROSS REVENUE BY BUSINESS LINE GROSS REVENUE BY CLIENT TYPE 16% 18% 38% North America Emergig Markets Cotietal Europe Uited kigdom 37% 25% % Ifrastructure Water Eviromet Buildigs 17% 26% 57% Public Private Regulated 28% 24% Gross reveues Net icome from operatios Operatig EBITA margi i millios i millios i % 2,635 3, ,616 2,536 1,1 105, ,017 81,8 9.7 Net reveue ( Billio) 0,63 0,70 0,84 1,00 CAGR 1) % 1,16 1,22 1,37 1,44 1,87 1,89 2,02 Earigs per share ( ) 0,38 0,55 0,82 1,02 CAGR 1) 16% 1,16 1,18 1,19 1,23 1,48 1,54 1, Operatig EBITA 2) 10,1% 10,5% 10,8% 10,8% ( millios) 9,3% 9,7% 10,0% 10,0% 10,1% * 8,2% ,2% Operatig EBITA margi* 1) Compoud Aual Growth Rate 2) Excludig acquisitio, restructurig ad itegratiorelated costs

3 INFRASTRUCTURE Our ifrastructure solutios create the coditios for efficiet trasportatio. We provide busiess advisory, desig, egieerig ad program maagemet for some of the world s most complex ifrastructure projects. By workig o high-quality ad safe railways, road etworks (icludig tuels ad bridges), ports ad waterways WATER As a global top five player i water solutios we focus o the etire water cycle, icludig aalysis ad desig of drikig water supply systems. We advise o advaced treatmet techologies for waste water ad deliver desig, egieerig ad maagemet services for public utilities ad private sector idustrial cliets. Through our Water for Idustry iitiative we help idustrial cliets reduce their water footprit. We are also active i maagig ENVIRONMENT Arcadis is the leadig global evirometal solutios provider to private idustry, ad delivers projects that protect the earth s resources while meetig our cliets ecoomic objectives. From soil, groudwater ad sedimet remediatio ad evirometal impact assessmets, through to cosultacy o corporate eergy, product stewardship, health ad safety ad waste maagemet issues, our solutios support evirometal policies for compaies ad govermets ad reliable eergy supply systems, Arcadis ifrastructure professioals brig stability, mobility ad a better quality of life to commuities aroud the world. Cliets Our work i Ifrastructure is for cetral ad local govermets. We also work for utilities, public or private. I additio, we work for developers, cotractors ad miig firms. rivers ad coastal zoes, urba ad rural water, ad water maagemet issues related to climate chage ad risig sea levels. Cliets The majority of our cliets i Water are public bodies ad authorities such as water boards, muicipalities, provices ad states, cetral govermets, as well as private ad public utilities. For idustrial cliets we are a leadig provider of water services to reduce water use, improve sustaiability ad meet regulatory requiremets. alike. Our strategic evirometal cosultig solutios address potetial operatioal, regulatory ad/or third-party liabilities. Cliets I Eviromet, a sigificat portio of our work is for the private sector, icludig Fortue 500 compaies i the oil ad gas, chemical, miig, coglomerates ad trasportatio idustries. We also work for govermets; from federal cliets, such as the U.S. Departmet of Defese, to muicipal cliets. Gross reveues Ifrastructure i millios Operatig EBITA margi i % Gross reveues Water i millios 319 Operatig EBITA margi i % Gross reveues Eviromet i millios Operatig EBITA margi i % BUILDINGS We help leadig cliets trasform their busiess performace by plaig, creatig, operatig ad regeeratig their buildigs to esure they are a source of competitive advatage, meet busiess eeds, ad geerate sustaiig busiess value. We deliver world-class architecture, plaig, cosultacy, project, program ad cost maagemet solutios for a wide rage of buildig types from commercial properties to hospitals, schools, govermet buildigs ad idustrial facilities. We create a balace of form, fuctioality ad evirometal stewardship. Cliets I Buildigs we maily work for owers, maagers, operators ad developers of real estate, both i the public ad private sectors. Corporate occupiers, may of them multiatioals with global office footprits, are a icreasigly sigificat cliet group. Gross reveues Buildigs i millios Operatig EBITA margi i %

4 INDUSTRY DYNAMICS The addressable market for Arcadis based o its curret geographies ad service lies is approximately 400 billio, with more tha 3 billio i reveues Arcadis is the largest pure play Desig ad Cosultacy compay globaly. The cosultig ad egieerig market is oe of the last professioal services sectors attemptig to achieve global cosolidatio. Arcadis has bee a active cosolidator i its idustry for years. It started iteratioalizig i the 1990s, recogizig the eed for large multiatioal cliets i several idustry sectors to work with a smaller umber of larger vedors to cater to their growig global eeds. We are ow a leadig solutios provider to a wide rage of Fortue 500 compaies through our extesive global office etwork. More recetly Arcadis started a Big Urba Cliets program, recogizig the eed of those cliets to have access to the best, most recet techologies ad value propositios available globally to solve their icreasigly complex urba issues. Through our extesive etwork, Arcadis is able to source ad deliver these solutios. Our growth i part is achieved through acquisitios which are value-ehacig as they ot oly brig additioal reveues, but ehaced techologies ad busiess models ad hece erich our global firm with every step we make. That is also why our track record for acquisitios has bee so successful. STRATEGY sustaiable growth performace collaboratio SUSTAINABLE GROWTH This elemet of our strategy is about meetig the growig cliet demad for more sustaiable solutios - ad about sustaiable compay developmet through icreased orgaic growth. Sustaiable growth has three elemets: expadig the core, focused growth ad mergers & acquisitios. Expadig the core: throughout our regios ad global busiess lies by focusig o key cliets at the local, atioal ad multiatioal level, buildig o the strog existig cliet relatioships. Focused growth: accelerate orgaic growth through seve priorities; three ed markets: emergig markets, big urba cliets ad atural resources, ad four value propositios: eviromet ad water for idustry, program maagemet, busiess advisory ad desig. Mergers ad acquisitios: fiacial criteria for acquisitios remai uchaged ad we seek to add strategically aliged compaies, to stregthe our existig leadership positios ad build differetiated capabilities to better serve our cliets. PERFORMANCE We have the ambitio to be recogized as beig the best i everythig we do ad will evolve our culture to oe of cotiuous improvemet. Performace Excellece touches o may aspects of our work, icludig the way we select ad develop our cliet relatioships, ad the way we develop ad maitai market sector isights ad research to have a differetiated, competitive advatage. COLLABORATION Through collaboratio we will leverage our capabilities ad global footprit to brig the best of Arcadis to better serve our local, atioal ad global multiatioal cliets. Detailed strategies for each of our four Global Busiess Lies: Ifrastructure, Water, Eviromet ad Buildigs have bee developed ad are aliged with our strategic priorities. FINANCIAL GOALS FOR Growth Orgaic reveue growth > 5% Iorgaic reveue growth > 5% CAGR Margi Operatig EBITA margi > % Cash Free Cash Flow > Net Icome Retur Retur o ivested capital > % KEY CLIENT TRENDS World class capabilities Global delivery Icreasig focus o sustaiability Frot-ed solutios Complexity ad outcome certaity Outsourcig ad privatizatio Supply chai itegratio Risk participatio Public-private parterships RISK - KEY ELEMENTS AND CONTROLS Operatioal Go/o go procedure for cliets ad projects Regular project reviews Pro-active health & safety policy Workig Capital cotrol icetivized at all levels Compliace Zero tolerace for busiess ad persoal itegrity issues Risk maagemet ad Iteral audit fuctio Focus o hard ad soft cotrols Exteral audits of cosolidated ad statutory accouts Acquisitios & Itegratio Strict selectio process for acquisitios Immediate adherece to reportig requiremets Executive Board oversees busiess ad itegratio Iitial focus o reveue syergies, the cost

5 BIOGRAPHY CEO AND CFO Neil C. McArthur, BSc, MBA, MIMechE, FRICS (1961) British Natioality Chief Executive Officer Chairma of the Executive Board Previous positios: Neil McArthur started his career i 1982 with Shell Iteratioal Petroleum Maatschappij, Exploratio & Productio, where he worked as a project maager o large ivestmet projects i Qatar ad the Netherlads. After completig his MBA i 1990, he started workig for Booz & Compay, a leadig iteratioal strategy ad maagemet cosultacy. As member of the Global Executive Committee ad Maagig Director Europe, he was resposible for the activities i 15 Europea coutries ad cosulted to Fortue 500 cliets i the global eergy, chemical ad utilities markets. I 20 he was appoited to the Executive Board of ARCADIS N.V. ad i Jauary 20 aouced as the ew CEO. Arcadis is listed o Euroext Amsterdam. Arcadis ticker, ISIN ad code iformatio THE ARCADIS SHARE TICKER ARCAD ISIN NL CUSIP 03923E 10 7 BLOOMBERG ARCAD NA REUTERS ARDS.AS SEDOL STANDARD & POORS ARCAF Reier Vree MSc (1964) Dutch atioality Chief Fiacial Officer Previous positios: Before joiig Arcadis, he worked i several fiacial maagemet positios for Philips, havig started with that compay i From 1994 through 2002 he worked as Fiacial Director/Chief Fiacial Officer for Philips busiess uits i the Uited States ad Asia, icludig Malaysia ad Hog Kog. From 2002 through 2004 he was director of global efficiecy improvemet programs for Philips. I 2004 he was appoited Chief Fiacial Officer of Philips Lightig. HIGHLIGHTS FIRST HALF-YEAR Gross ad et reveue growth +41%; orgaic et reveue growth +2%; orgaic backlog up +1% Operatig EBITA up +22%, positively impacted by Performace Excellece program but egatively impacted by oe-off -.9 millio US evirometal project cost overrus, ad Brazil Operatig EBITA margi of 8.6% (H1 20: 10.0%), excludig oe-off project cost overrus 9.5% Itegratio of Hyder o track with syergies captured faster tha with previous acquisitios ad operatig EBITA margi improvig to 8.1% i Q2 from 5.3% i Q Net icome from operatios up +3% to 57.3 millio Workig capital improvig to 20.2% of gross reveues vs. 22.3% i Q Free cash flow improved by 38 millio to - 30 millio (Q1 2015: - 68 millio; H1 20: - millio) LONG-TERM GROWTH DRIVERS Globalizatio. Compaies with global operatios require support wherever they operate ad look for solutio providers that ca work with them seamlessly aroud the world. At the same time a growig umber of cities compete o the global stage for iward ivestmets. These urba ceters look for global firms with itegrated solutios to help them succeed. Urbaizatio. Global populatio growth ad the migratio ito urbaized areas result i a growig umber of mega cities, especially i emergig markets. These cities require large programmatic ivestmets i residetial areas, idustrial sites, commercial properties ad other social ifrastructure. I the developed world urba regeeratio ad more sustaiable solutios provide growth opportuities.

6 Mobility. All metropolita areas suffer from cogestio, which has a sigificat impact o local ad atioal ecoomies. Govermets are ivestig to expad the capacity of roads, highways ad public trasportatio. Our itelliget traffic maagemet solutios ad rail systems expertise helps them achieve this i the most sustaiable, efficiet ad affordable way. Climate chage. Risig sea levels caused by climate chage are a uprecedeted challege for delta areas, where more tha 50% of the world s populatio lives. This creates demad for our solutios to lower greehouse gases ad carbo footprits; detect water resources; ad improve water maagemet ad flood protectio systems, i both the developed world ad emergig ecoomies. Sustaiability. Preservig resources ad quality of life for future geeratios is of paramout importace, which is why sustaiability is itegrated i everythig we do. With our evirometal capabilities, ad as recogized global leader, we are well positioed to address the evirometal impact of projects, ad propose appropriate mitigatio measures. Scarcity. The scarcity of clea, safe, potable water is a critical issue i today s world. Expadig our water capabilities across the globe, we brig leadig edge solutios related to water supply, treatmet ad reuse to help protect this importat resource. Scarcity also exists i areas such as Healthcare, Educatio, Food, etc. ad we have developed Busiess Advisory capabilities to help serve govermet ad private sector cliets. leadig to a icreasig demad for both carbo based ad reewable eergy projects. This tred is a growth driver i all our busiess lies i both emergig ad developed markets. Natural resources. The exploratio ad developmet of atural resources such as miig ad oil & gas is becomig more complex as compaies active i these fields fid themselves i icreasigly remote locatios, facig evirometal challeges or water issues. Projects also become more complex, time critical ad require expert program maagemet services to esure their successful implemetatio. ACTIVE ACROSS THE ENTIRE VALUE CHAIN Arcadis delivers exceptioal ad sustaiable outcomes across the etire value chai through the applicatio of desig, cosultacy, egieerig, project ad maagemet services. We differetiate ourselves i key market sectors through our market sector isights, by deepeig our market sector capabilities ad by developig cliet relatioships that spa the etire lifecycle of their assets. We aim to uderstad the chagig eeds of our cliets ad their market sectors to idetify ew ways to help create value. We are able to desig ad deliver complex solutios by combiig our uique techical, cosultig ad maagemet skills to provide exceptioal ad sustaiable outcomes for our cliets across all phases of asset ivestmets; from plaig, through to creatio, operatio ad possible redefiitio. Asset productivity. I emergig markets our cosultacy offer is maily focused o capital expediture projects aimed at the realizatio of ew assets for which we provide program, project ad cost maagemet. I more mature markets our Busiess Advisory solutios help cliets reduce operatioal expediture while ehacig existig asset performace, icludig reuse for ew purposes. Eergy. The demad for eergy ad the eed to reduce harmful emissios associated with fossil fuel-based eergy is KEY FIGURES FIRST HALF YEAR FIRST HALF YEAR AMOUNTS IN MILLIONS UNLESS OTHERWISE STATED CHANGE Gross reveues 1,691 1, % Orgaic gross reveue growth +3% Net reveues 1, % Orgaic et reveue growth +2% EBITA % Operatig EBITA 1) % Operatig EBITA margi 8.6% 10.0% Net icome % Net icome per share (i ) % Net icome from operatios 2) % Net icome from operatios per share (i ) 2) % Average umber of outstadig shares (millio) % Free cash flow 3) (29.8) (.9) 1 Excludig acquisitio, restructurig ad itegratio-related costs 2 Before amortizatio of idetifiable itagible assets ad acquisitio-related costs (et of icome taxes) 3 Cash flow from operatig activities mius ivestmets i (i)tagible assets

7 DIVIDEND INFORMATION Divided Policy Our divided policy aims for a payout of 30-40% of et icome from operatios. The Executive Board ca resolve to offer the shareholders the optio to either receive the divided i cash or i shares. The umbers o the below table are per share. IN EURO S Net icome from operatios* Net icome* Divided* Shareholder s equity* Closig price Amsterdam Euroext* * All total shares, share amouts, per share ratios ad closig prices are retrospectively adjusted for the share split of May These figures are derived from the published fiacial statemets of the years cocered. GOVERNANCE Arcadis NV is a public limited liability compay (Naamloze Veootschap) uder Dutch law. The compay is maaged by the Executive Board uder supervisio of the Supervisory Board. Sice 2003, Arcadis has bee a iteratioal holdig compay. Members of the Executive ad Supervisory Boards are appoited ad dismissed by the geeral meetig of shareholders (the Geeral Meetig ). Arcadis is committed to the priciples of good goverace: itegrity, trasparecy, accoutability. CONTACTS Arcadis NV Symphoy, Gustav Mahlerplei MS Amsterdam The Netherlads Joost Sloote Director Ivestor Relatios Tel: Mobile: joost.sloote@arcadis.com Stefa va Buure Ivestor Relatios Officer Tel: Mobile: stefa.vabuure@arcadis.com Disclaimer: Statemets icluded i this documet that are ot historical facts (icludig ay statemets cocerig ivestmet objectives, other plas ad objectives of maagemet for future operatios or ecoomic performace, or assumptios or forecasts related thereto) are forward lookig statemets. These statemets are oly predictios ad are ot guaratees. Actual evets or the results of our operatios could differ materially from those expressed or implied i the forward lookig statemets. Forward lookig statemets are typically idetified by the use of terms such as may, will, should, expect, could, ited, pla, aticipate, estimate, believe, cotiue, predict, potetial or the egative of such terms ad other comparable termiology. The forward lookig statemets are based upo our curret expectatios, plas, estimates, assumptios ad beliefs that ivolve umerous risks ad ucertaities. Assumptios relatig to the foregoig ivolve judgmets with respect to, amog other thigs, future ecoomic, competitive ad market coditios ad future busiess decisios, all of which are difficult or impossible to predict accurately ad may of which are beyod our cotrol. Although we believe that the expectatios reflected i such forward lookig statemets are based o reasoable assumptios, our actual results ad performace could differ materially from those set forth i the forward lookig statemets.