ANALYST MEETING EINDHOVEN, AUGUST 7, 2008 Results first half year 2008 Harrie Noy Chief Executive Officer Imagine the result
Another good quarter Gross revenues rose 23% Organic +8%, strongest in environment Net income from operations 16% higher Strong growth despite currency effect Achieved further margin improvement Outlook FY2008: +10% to 15% Focus on growth markets, clients and synergy is the basis for good results
Income 2008 2007 _ _ Q2 2008 Gross revenues Ebita 427 29,5 348 23,8 23% 24% 16.3 million Income 1) EPS 1,2) 16,3 0,27 14,0 0,23 16% 17% Currency -6% to -7%, especially decline of US dollar, British pound 1) Net income from operations before amortization and nonoperational items 2) In 2008 based op 60.6 million shares outstanding (2007: 61.3 million)
Income 2008 2007 _ _ H1 2008 Gross revenues Ebita 827 57,0 680 46,4 22% 23% 31.6 million Income 1) EPS 1,2) 31,6 0,52 26,8 0,44 18% 18% Currency -6% to -7%, especially decline of US dollar, British pound 1) Net income from operations before amortization and nonoperational items 2) In 2008 based op 60.6 million shares outstanding (2007: 61.3 million)
Organic growth stays at good level 30% 25% 20% 15% 10% 5% Organic Acquisitions Total (excl. currency effect) 0% 2003 2004 2005 2006 2007 H1-2008 Currency -3% -3% +1% 0% -4% -6%
Main facts Growth environment stays strong: organic 15% Good success U.S., in growth (+9%) and profit Lower growth U.S. infrastructure temporary RTKL above expectation: growth 20% Dutch market positive: organic growth 13% European infra solid, Poland, Czech strong Buildings market Europe strengthening U.K. real estate market difficult Brazil and Chile continue growth All figures relate to the first half year
In millions 60 10.1% Margin 10% Margin 50 9.8% improved 40 8.6% further 30 5.6% 7.0% 35,3 46,4 57,0 5% 20 23,4 10 18,6 0 2004 2005 2006 2007 2008 0% Increase 25% 26% 51% 31% 23%
At 23% a strong EBITA increase In millions EBITA H1 2007 46.4 Currency -/- 7% Acquisitions +22% Organic + 8% EBITA H1 2008 57.0 0 5 10 15 20 25 30 35 40 45 50 55 60 Organic increase mainly comes from U.S en Other Europe (ex. U.K. project management)
Some financial details Carbon credits contribute 1,9 million to EBITA (2007: 2.1 million) Carbon credits from two landfills in Brazil; aprox. 750K ton per year price 10-20 EUR; 1/3 for Logos Strong influence from derivatives for interest and currency risks on financing charges Financing charges higher as a result of growth and acquisitions Taxes higher
403020,010,0,020042005200620072In millions,0net income from operations,00.52 0.35 0.44 and EPS H-1 0.18 0.22 26,8 31,6021,2 13,3 10,7 0+24% +60% +26% +18% 8+12% Earnings per share (in )
The business lines Infrastructure Environment Buildings
Growth in all business lines 350 300 250 200 150 100 50 0 Infra +2% (+5%) 2004 2005 2006 2007 2008 350 300 250 200 150 100 50 0 2Environment +19% (+15%) 04200520062007200300 Buildings +74% (+6%) 250 200 Environment 37% 8Buildings 150 100 Infrastructure 36% 50 0 2004 2005 2006 2007 2008 27%
INFRASTRUCTURE H1 2008: +2% (+5% organic) Organic growth negatively impacted by earlier decline land development in U.S. Excluding this effect organic growth 7% Netherlands, France, Central Europe strong Brazil and Chile growth in mining, energy Backlog in U.S. grows, mainly water, e.g. New Orleans: >$ 45 million task orders In Q2 organic growth lower through delays in start up of new projects in the U.S.
ENVIRONMENT H1 2008: +19% (+15% organic) Considerable negative currency effect 12% Contribution acquisitions (LFR, Vectra) 15% U.S. remains strong: 17% organic increase, despite change in project mix with less third party work Netherlands, Belgium strong growth EIA England and Brazil mainly MNC growth Demand from oil and gas industry stays high
BUILDINGS H1 2008: +74% (+6% organic) Acquisitions RTKL and APS: 72% growth In Q2 increasing growth most European countries Project management U.S. grew again Especially U.K. delays commercial real estate RTKL: financing some projects more difficult, but growth in non-commercial and international (H1 gross revenues +20%)
ENERGY PROJECTS BRAZIL In Brazil considerable experience with hydro power plants Large demand for new energy initiatives ARCADIS Logos Energia for energy project development Mainly small hydro power plants: 3-30 MW Partake in equity through contribution in kind Sale shortly after projects become operational
HPP Site Overview 55º RR AP 0º AM Manaus PA Belém MA.Fortaleza CE RN PI PB PE AC SE AL RO MT Cuiabá TO BA Brasília DF Different stages of development 50 MW in operation 82 MW under construction 165 MW final development stage MS GO.Campo Grande SP PR Curitiba Belo Horizonte MG Rio de Janeiro São Paulo ES RJ 194 MW initial/intermediate stage SC Florianópolis 350 MW selection stage RS.Porto Alegre
Outlook
Outlook per business line Infrastructure Europe: longer term investment programs and private financing High investments Central Europe; Brazil and Chile in mining and energy Transportation U.S. stable; New Orleans solid basis for growth in water Environment Sustainability, regulations and climate change drive growth Reduction service providers; demand from oil and gas industry U.S.: new GRiP projects, synergy with LFR Buildings RTKL solid backlog and opting for non-commercial, international Project management: infrastructure, Middle East Expansion facility management based on the Philips contract
Outlook 2008 positive Markets offer many opportunities; strong backlog Sustainability, climate change, urban renewal, mobillity and energy are growth drivers Economic uncertainty demands cautiousness Cost controls and intensifying marketing and sales Acquisitions are high on the priority list Expected increase net income from operations 2008: 10% to 15% (Barring unforeseen circumstances) ARCADIS Building Global Leadership
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