Company / Sector Comment Recommendation Price Target Price Arcadis Kinepolis Randstad TNT Express WDP

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1 CONTENTS Company / Sector Comment Recommendation Price Target Price Arcadis Kinepolis Randstad TNT Express WDP Good 2Q14 performance, FY outlook below street It's time for the big leap! 2Q14E: Crossing 4% growth, upgrade to A bit short of expectations 1H14 results preview CHANGES IN RECOMMENDATION CHANGES IN TARGET PRICE Company From To Company From To Randstad Randstad KEY FIGURES CHANGES IN EPS FORECAST From To (at close) Price 1D 1M 12M Company AEX BEL20 CAC40 DAX30 FTSE100 EUROSTOXX50 STOXX , , , , , , % -0.9% -1.8% -1.5% -0.4% -1.4% -0.8% -1.7% 1.7% -2.9% -2.3% 0.9% -2.4% -0.1% 9.3% 19.8% 9.5% 16.2% 3.1% 15.9% 12.1% Randstad ( ) DJIA S&P500 NASDAQ Comp 17, , , % 0.1% 0.0% 1.6% 2.0% 2.8% 9.8% 17.6% 24.9% USD/EUR GBP/EUR % 0.3% 1.5% 1.5% -1.5% 8.9% Bel govt French govt Dutch govt 1.55% 1.56% 1.35% -2.0bps -2.0bps -3.0bps -17.0bps -14.0bps -15.0bps bps -71.0bps -68.0bps Source: KBC Securities kbcsecurities.com Refer to important disclosures, disclaimers and analyst certifications at the end of the body of this research.

2 CORPORATE CALENDAR ROADSHOW CALENDAR Date Company Event Date Company Place Arcadis Nutreco TNT Express IO&W Banimmo Melexis TNT Express Tubize UCB USG People Wolters Kluwer AB InBev EXMAR GBL Pharming Randstad Solvay Telenet Umicore Befimmo Bekaert Belgacom Cofinimmo Solvac Telegraaf Media Groep Ex div. IN14 Trading update 2Q14 Ex div. IN Nutreco Arseus Arseus Ageas Delta Lloyd Bekaert Arseus Kinepolis Arseus CFE Befimmo Galapagos Brunel International Ablynx Arcadis KBC Ackermans Ackermans Ablynx Mobistar Galapagos CFE CFE Luxembourg New York New York New York Boston For an overview of our upcoming events, please click here. PUBLICATION OVERVIEW Date Company / Sector Title report Recommendation Target Price USG People Akzo Nobel Deceuninck Nyrstar Nutreco Wessanen Akzo Nobel Fugro Mobistar Ageas Colruyt Vranken-Pommery Ahold 2Q14E: Weaker margin, still good fundamentals Returns continue to trend up 1H EBITDA -20% on FX and pass-through delay Improved market fundamentals for zinc Strong profit growth in 1H but decline in 2H Solid 1H14E results despite higher A&P 2 Challenging environment besides one-offs 2Q14 preview - Subsriber trends set the tone De-trating overdone Increasingly tough trading conditions Monetising bubbles Challenging environment persists in 2Q14 Accumulate Accumulate Accumulate Reduce Reduce

3 ARCADIS Good 2Q14 performance, FY outlook below street INDUSTRIAL ENGINEERING CURRENT PRICE HOLD NETHERLANDS TARGET PRICE RATING UNCHANGED ARCAD NA ARDS.AS Market Cap 1,811.7m Shares outst. 73.2m Volume (daily) 3,005,700 Free float 62.9% Results 3Q14: 22 October 2014 Sales 2, , ,688.6 REBITDA Net earnings Adj. EPS ( ) P/E (x) EV/REBITDA FCF Yield 7.1% 7.5% 7.8% Dividend yield 2.7% 2.5% 2.9% Dieter Furniere dieter.furniere@kbcsecurities.be Dirk Verbiesen dirk.verbiesen@kbcsecurities.be Arcadis 2Q14 net revenues were +1% organically to 470m (consensus: +3% to 483m, KBC: +3% to 484m). Operating EBITA came in at 48.6m with a margin of 10.3% (Consensus: 46.7m with margin of 9.7% and KBC: 47m with margin of 9.8%) vs. 9.0% in 2Q13. Revenues benefited from growth in the UK, EU and Emerging Markets although mining in LatAm was soft. EBITA benefited from stronger performance in EU and UK. The operating EBITA margin in EU was 7.8% in 1H14 vs. 3.2% in 1H13 (7.5% in 2Q14 vs. 8.1% in 1Q14 due to fewer working days in 2Q14). Arcadis says to be on track to realize 10% margin in EU by 4Q14. In US Arcadis experienced pressure in federal and municipal markets and sustained competition for private sector work. Their margin in US was flat in 1H14 (11.0% vs. 10.9%) due to proactive cost management. The total backlog of Arcadis was +4% (organic) with -1% in infrastructure, +5% in water, +5% in environment +6% in buildings. Net revenues: 1H14 net organic revenues were flat in infrastructure, water +1%, environment -4% and buildings +8%. In infrastructure, Arcadis expects stable revenues with growth in Middle East and EU, although EU remains fragile. Arcadis experiences lower spending by mining clients in LatAm but sees encouraging orders for growth in Water market should see low growth, soft in EU and N-A, but expected to improve in N-A, while LatAm remains strong. The outlook for UK water is good due to recent wins and framework renewals. No growth is expected for environmental market although order intake for N-A is expected to improve markedly impacting revenues from 2015 onward. EU environmental market and other regions should show good growth in 2H14. Arcadis expects strong growth in buildings market in all regions. Middle East and Asia due to strong spending in retail/mixed use. In UK Arcadis also sees growth outside while EU and N-A expect to grow as real estate markets improve while program management and business advisory services gain momentum. Cash flow from operations was 0.2m compared to -40.6m in 1H13 and net debt declined to 284m vs. 401m in 1H13. Outlook: The company s outlook for 2014 is 5-10% growth in net profit from operations leading to m or EPS of This is significantly below consensus for net profit from operations of 129.6m and EPS of 1.78 (KBC: 127m / 1.73). Conclusion: Arcadis reported a solid performance in 2Q214, also in terms of cash flow. However, we believe their outlook for FY14 compared to consensus is likely to be received negatively by the market. 3

4 KINEPOLIS It's time for the big leap! TRAVEL & LEISURE CURRENT PRICE BUY BELGIUM TARGET PRICE RATING UNCHANGED KIN BB KIPO.BR Market Cap 833.6m Shares outst. 27.9m Volume (daily) 481,240 Free float 100.0% : 28 August 2014 Sales REBITDA Net earnings Adj. EPS ( ) P/E (x) EV/REBITDA FCF Yield 8.5% 4.0% 4.5% Dividend yield 3.2% 2.2% 2.5% Guy Sips guy.sips@kbcsecurities.be CEO Eddy Duquenne, who made Kinepolis in recent years to an absolute cash machine by paying attention to every detail, stressed in this weekend s interview in De Tijd that the Wolff-deal is just the beginning. After an impressive six years in which Duquenne was CEO of Kinepolis operating margin has nearly doubled in the group, he indicated that it's time for the big leap. As a reminder, Kinepolis took over last week the Dutch Wolff cinema group by acquiring nine existing cinemas in the Netherlands (Huizen, Groningen, two in Enschede, Rotterdam, Nieuwegein and three in Utrecht). And -for us even more important- Kinepolis is as well taking over two new construction projects for a megaplex in Utrecht and a multiplex in Dordrecht. Next to this news, Kinepolis also announced it is also developing an own project for the construction of a multiplex cinema in the Netherlands. Duquenne confirmed our assumption that all this together is good for an investment of 50m. But Duquenne indicated that Kinepolis wants to develop other complexes at different places in the Netherlands The past year and a half, the CEO was most of his time engaged in the search for expansion opportunities. That will not change now. The CEO said that he is working on the next deal now and he was mentioning the UK, Austria, Switzerland, Germany and even Greece where he sees opportunities. In a broader perspective, the CEO believes that investors are entitled to expect a mix of further expansion and further capital optimisations. He even mentioned they do not exclude to further increase the payout ratio, he was even mentioning the possibility of periodically super dividends although we think in the first years the focus will be on the planned new investments in the new three complexes in The Netherlands (we already estimated last week a total of 50m for the three new building projects announced in the Netherlands). Conclusion The interview confirmed our belief Kinepolis will fine-tune its financing position in 2H14. We think there is room for either a new bank club deal or a bond placement (exceeding the current planned capex requirements as new additional investments are in the pipeline). We expect Kinepolis will try to further expand its position in the Netherlands (and possible also in other European countries) and will in this context consider additional greenfield projects. We especially see the step in The Netherlands as an interesting step into a new market as they gain time through the takeover of already two new construction projects in Utrecht and Dordrecht. The announcement Kinepolis is also developing an own project for the construction of a multiplex cinema in the Netherlands fits in the ambitious plans Kinepolis has in The Netherlands. We updated our model and confirm our BUY rating and we feel confortable with our Target Price of 34. 4

5 RANDSTAD 2Q14E: Crossing 4% growth, upgrade to SUPPORT SERVICES CURRENT PRICE BUY NETHERLANDS TARGET PRICE RATING UPGRADED RAND NA RAND.AS Market Cap 6,168.5m Shares outst m Volume (daily) 20,258,095 Free float 62.6% : 31 July 2014 Sales 16, , ,457.0 REBITDA Net earnings Adj. EPS ( ) P/E (x) EV/REBITDA FCF Yield 4.6% 6.1% 6.8% Dividend yield 2.6% 3.2% 3.9% Yves Franco yves.franco@kbcsecurities.be KBCS has decided to increase its target price from 45 to 47, which implies 30% upside on Friday s closing price of We hence upgrade our rating from to. A detailed flash will be published in the course of the day. 2Q14E preview: Randstad will release its 2Q14 results on Thursday, 31 July. An analyst meeting is hosted at 10am that day. We expect sales to grow organically by 4.4% y/y to 4,316.4m ( 4,289m CSS), with gross profit totalling 790m implying a gross margin of 18.3%, up 20bps y/y ( 786m and 18.3% CSS). A REBITA margin of 4.3% (up 50bps y/y) lets the REBITA come in at 177m (4.3% and 174m CSS). Adjusted net income lands at 117m ( 115m CSS). Our View: Randstad s share price has been under pressure ever since its FY13 results in February. Seeing a very gradual recovery and higher than expected costs in 4Q13 were interpreted negatively by the market then. Losing some market share was a sign of underinvestment in market segments that are key in the recovery, most noteworthy the SME segment in the Netherlands and the Professionals segment in the US. Both of these problems have been handled now, with promising results coming in. For the Netherlands, we think Randstad will be able to attain market levels again in 3Q14. Randstad s main labour markets such as N- America have furthermore proven to be resilient in Q2, or even accelerated in the Netherlands (5.0% vs. 3.7% in 1Q) and Belgium (April and May at 6.9% vs. 4.0% in 1Q). This should be enhanced by an increased operational focus from the new CEO on the field steering model, resulting in tighter management control and a more efficient deployment of resources. France remains however the sick man, with labour market reforms high on the political agenda. Randstad luckily continues to focus on profitability here, not sacrificing any of the CICE margins. For FY14 we bank on an organic growth of 4.6%, going to 6.5% in FY15 (2.2% in 2013). The gross margin for FY14 is expected to come in at 18.3%, gradually improving to 18.4% and 18.5% thanks to business mix towards the more profitable perm and SME segments. The REBITA margin is expected to come in at 4.0% and 4.6% for FY14 and FY15 respectively. Our DCF valuation points to a 47 TP and is based on a long-term REBITA margin of 4.7%. Conclusion: Our updated DCF model banks on a top-line acceleration of 6.5% in both FY15 and FY16, slowing down towards the future years. Randstad is the biggest player in Belgium and the Netherlands and should hence profit from the market upswings. The strong focus on the field steering model should strengthen operational performance, while the substantial FCF generation ensures a war chest which is usable in market underperformance. With an upside potential of 29.5%, we change our rating from to. 5

6 TNT EXPRESS A bit short of expectations INDUSTRIAL TRANSPORTATION CURRENT PRICE 6.49 HOLD NETHERLANDS TARGET PRICE 7.00 RATING UNCHANGED TNTE NA TNTE.AS Market Cap 3,515.4m Shares outst m Volume (daily) 9,949,681 Free float 85.2% Results 3Q14: 27 October 2014 Sales 6, , ,314.9 REBITDA Net earnings Adj. EPS ( ) P/E (x) EV/REBITDA FCF Yield 7.7% -2.8% 2.7% Dividend yield 0.7% 2.2% 3.1% Dieter Furniere dieter.furniere@kbcsecurities.be News: This morning TNT Express reported 2Q14 numbers. Revenues came in at 1,662m (-5.9%) versus consensus (Inquiry-compiled) at 1,713m and our forecast of 1,713m. Restated for the sale disposal of China Domestic and Dutch TNT Fashion Business, adjusted revenues were at 1,703m. Reported EBIT was 8m as it was affected by restructuring related expenses ( 61m) and the related implementation costs ( 13m). Underlying (non-fx) adjusted EBIT came in at 75m ( 83m KBCSe, 81m css) split as 46m Europe Main ( 58m KBCSe, 55m css), 16m Europe Other & America ( 20m KBCSe, 17m css), 3m Pacific ( -2m KBCSe, 1m css), 16m AMEA ( 16m KBCSe, 9m css), 2m Brazil Domestic ( 1m KBCSe, 1m css) and -8m Non-Allocated ( -8m KBCSe). The 2014 guidance is unchanged except for a new explicit comment for increased Europe investments in marketing and brands by about 15-20m. Capital expenditure is expected to be around 3% of revenues (excluding Outlook investments). The Capital Market Day is confirmed on 18 Feb Our View: Today s results fall a bit short of our and consensus expectations on both top line and profitability. This is particularly true for Europe Main (UK Domestic & Italy in particular) which faces uneven economic growth and competitive pressures. In the Pacific region, the market remained challenging but thanks to cost initiatives, TNT Express managed to increase profitability. AMEA managed to meet expectations and shows improved profitability in all its units. Capital expenditure has remained below the company s 3% target (2.2% in 2Q14 and 1.9% in 1H14). This amount does not include any additional investments needed for the Outlook programme. Regarding the latter details are still expected in the course of 2H14. Conclusion: Following this set of numbers we do not see reasons to become more positive on the stock. As such, we maintain our and 7.0 target price. A conference call is scheduled at CET. 6

7 WDP 1H14 results preview REAL ESTATE INVESTMENT TRUSTS CURRENT PRICE HOLD BELGIUM TARGET PRICE RATING UNCHANGED WDP BB WDPP.BR Market Cap 884.5m Shares outst. 15.7m Volume (daily) 563,044 Free float 72.3% : 8 August 2014 Current Result Portf. Result Net Profit Adj. EPS ( ) NAV ( ) P/E (x) DPS ( ) Dividend yield 6.5% 6.0% 6.4% Koen Overlaet-Michiels koen.overlaet-michiels@kbcsecurities.be WDP will publish its 1H14 results on Friday August 8th before market. A conference call is scheduled at 10am. News: WDP has been very active YTD. Confronted with two challenges (significant vacancies in Willebroek and Grimbergen), the company succeeded very well in attracting new tenants. Additionally, it announced 125m portfolio growth. On the financing side, the company issued a 125m retail bond at 3.375% on 7 years and raised 23m via the optional dividend. Preview 1H14: We expect net rental income to rise 12% y/y from 40.5m to 45.3m, on the back of external portfolio growth, small l-f-l growth and a sustained high occupancy rate. Operating charges are expected to evolve in-line, while the general expenses are assumed to rise 8% y/y. Hence, we estimate a growth in operating result before result on portfolio from 40.0m to 45.1m. We expect the financial result (excl.ias39) to evolve from -10.4m to m, following increased debt and a slight increased average cost of debt. Hence, we foresee 11% growth in net current result from 29.4m to 32.7m. We expect a slight positive portfolio result. However, this result will depend on largely on the size of the capex investments in 1H14. Our View: We believe that WDP handled its 1H challenges very well. The company remains also on track with regard to its growth program. Our 11% net current result growth forecast is in-line with a FY EPS estimate of 4.01 ( 4.00 WDP guidance). Conclusion: We stick to our rating and 55 PT. 7

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