First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the...

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First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities

Transcript of First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the...

Page 1: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

First half year results 2007 Harrie Noy, CEOAnalyst meeting, August 8, 2007, Amsterdam, the Netherlands

Infrastructure, environment, facilities

Page 2: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Strong results continued in second quarter

Organic gross revenue growth to record of 19%

Strong growth in all regions and service areas

Net income from operations rose 19%, in the first half year 26%

Considerable margin improvement

Acquisition RTKL milestone for ARCADIS

Outlook remains good

Stronger focus on growth and margins is successful

Page 3: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

2006

293

19.2

11.8

0.58

_ _

19%

25%

19%

18%

Income second quarter 2007: € 14.0 million

2007

348

23.8

14.0

0.68

1) Before amortization and non operational items

2) In 2007 based on 20.4 million shares outstanding (2006: 20.2 million)

Currency effect minus 3%, mainly as a result of US dollar decline

Gross revenue

EBITA

Net income from operations1)

Ditto per share1,2)

Page 4: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

2006

581

35.3

21.2

1.05

_ _

17%

31%

26%

25%

Income first half year 2007: € 26.8 million

2007

680

46.4

26.8

1.31

Currency effect approx. minus 4%, mainly as a result of US dollar decline

Gross revenue

EBITA

Net income from operations1)

Ditto per share1,2)

1) Before amortization and non operational items

2) In 2007 based on 20.4 million shares outstanding (2006: 20.2 million)

Page 5: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

0%

5%

10%

15%

20%

25%

2004 2005 2006 Q1 2007 Q2 2007

Organic

Acquisitions

Total (excl.Currency effect)

Currency -3% +1% 0% -5% -3%

Selling prices +1% -0% 0% 0% 0%

Organic growth accelerates

Page 6: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

ARCADIS benefits from good market conditions

No signs of weakness in the U.S.: organic growth 19%

Strong increase in activities in Brazil and Chile

Dutch market remains solid with 11% organic growth

Market in other European countries improved: organic growth 11%

Margin improved to 9.8% versus 8.6% last year

Smaller acquisitions in home markets (GR €11 million, 115 staff)

Euroconsult (GR €33 million, 125 staff) sold

All percentages related to the first half year

Page 7: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

46,435,3

23,418,6

14,8

0,0

10,0

20,0

30,0

40,0

50,0

2003 2004 2005 2006 2007

In € millions

-/-27% 25% 26%Increase

5,2%5,6%

7,0%

Margin

10%

5%

0%

8,6%

51%

9,8%

31%

Development EBITA first half year

Page 8: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

EBITA increases considerably with 31%

0 5 10 15 20 25 30 35 40 45 50

EBITA H1 2007

Rest organic

Carbon credits organic

Acquisitions/divestments

Currency

EBITA H1 2006

In € millions

11%

-/- 5%

6%

35.3

46.4

Organic increases mainly from the Netherlands, U.S., Poland and South America

19%

Page 9: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Some financial details

Carbon credits contribute € 2.1 million to EBITA– Generated at landfills in Brazil by Biogas (33.3% ALogos)

– Sold in 2006/2007: 1 million carbon credits

– Delivered Q406: 180m; Q107: 570m; Q207: 70m; expected H207: 180m

– Contract with KfW price range € 10 - € 20

– Total amount expected 2006-2012: 5 million carbon credits

– ARCADIS owns 50.01% of Alogos

Financing charges higher through growth and one-off gain Q206

Associated companies slightly negative: energy project Brazil

Minority interest higher due to good operational performance Brazil

Page 10: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Net income from operations and EPS H-1

-/-10%

Earnings per share (in €)

+12% +24% +60% +26%

26.8

21.2

13.310.79.6

0,0

5,0

10,0

15,0

20,0

25,0

30,0

2003 2004 2005 2006 2007

In € millions

0.47 0.530.65

1.05

1.31

Page 11: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

The service areas InfrastructureEnvironment Facilities

Page 12: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Strong organic growth in all service areas

Facilities +29% (+13%)

0

50

100

150

200

2003 2004 2005 2006 2007

Infrastructure +12% (+12%)

0

50

100

150

200

250

300

2003 2004 2005 2006 2007

Environment +18% (+23%)

0

50

100

150

200

250

300

2003 2004 2005 2006 2007

Infrastructure44%

Facilities18%

Environment38%

Page 13: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

• Brazil and Chile strong through mining and energy projects• Land development in U.S. compensated with water work • Very strong growth in Poland, somewhat less in Belgium• Dutch organic growth at a good level of 9% • Preferred bidder for PPP project second Coentunnel

Infrastructure +12% (+12%)

Waterposition strengthened with Alkyon

Page 14: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

• At 23% organic growth very strong, particularly in the U.S. • Market share grows through combination with BBL• Brazil: more services for multinationals• Europe: growth in almost all countries – especially private sector• Consistent Health & Safety policy: stronger competitive position

Environment +18% (+23%)

REACH: more work for multinationals

Page 15: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

• 16% from acquisitions, P1 + smaller in NL, Belgium, Germany• Organic 13%: mainly management services and consulting• Netherlands, U.K. and Germany are performing well• Real estate investment climate is favorable

Facilities +29% (+13%)

AWwPC: Multi Vastgoed contract

Page 16: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Outlook

Page 17: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Outlook per service area

Infrastructure• Strong economy has positive effect on investments • Market expansion through PPP initiatives • U.S.: land development soft; growth in water and transportation

Environment • Attention for sustainability and climate change drives demand• Remediation (GRiP®) with redevelopment growth market• Further expansion of market share with multinational clients

Facilities• Solid investment climate for real estate• Growth in project management / cost consulting also through AWwPC• RTKL offers ample opportunity for top line synergy

Page 18: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Outlook for 2007 is good

Market conditions are favorable

Ample opportunity for growth, also through synergy

Margin goal of 10% to be reached this year

Acquisitions remain high on our priority list

Increase net income from operations of 20-25% for full year 2007

(barring unforeseen circumstances)

ARCADIS is well on track

Page 19: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Thank you

Page 20: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

The merger with RTKLStrategic considerations

Infrastructuur, milieu, gebouwen

Page 21: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

ARCADIS strategy is focused on growthin high added value services by building leadership positions in three segments:

InfrastructureEnvironment Facilities

Page 22: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

RTKL, world leader in design and planning

Gross revenues $ 195, net revenues $ 142 million

1050 staff in 6 offices in U.S. and 4 in Europe/Asia

Architectural design, master planning, specialized engineering

Well diversified international portfolio

In commercial, health, workplace/civic

Operating margin meets our target in facilities

Strong brand and reputation

Among top 10 firms in its field

Page 23: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

RTKL fits well in ARCADIS strategy

Next step in moving up the value chain

Towards building leadership in facilities

More involvement in property investments

Full service offering – integrated approach

Master planning for early entry into urban regeneration

Expanded position in China

Closer to top 10 position in U.S.

Page 24: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

RTKL will change distribution of revenuesService areas

Infrastructure45%

Facilities17%

Environment38%

Environment35%

Facilities27%

Infrastructure38%

2006 Including RTKL

Page 25: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Netherlands26% ROW

9%Europe ex.

NL23%

U.S.42%

Netherlands23% ROW

8%Europe ex.

NL23%

U.S.46%

2006 Including RTKL

RTKL will change distribution of revenuesGeography

Page 26: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Ample opportunities for synergies

Focus on top line synergies

Design/planning project and program management

Brownfields: remediation + redevelopment

ARCADIS footprint to expand RTKL’s business

Sustainability: environment + design/planning

China, Middle East

Synergy plans to capitalize on selected opportunities

Page 27: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Global reach• Global and seamless services

• In a local style and practice

Design excellence

ARCADIS’ ambition in facilities Leadership by delivering differentiating value

Successful delivery

• Creativity

• Providing buildings that work

• Smart solutions

• Making it happen

• Tailored solutions

ARCADIS differentiating value Through

AWwPC

PM/CM

RTKL

Page 28: First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities.

Imagine the result

Thank you