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Stable revenue in 2013 provides platform for recovery Presentation Q3 2013 results 7 November 2013 Gerard van de Aast, CEO Hans Turkesteen, CFO.

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Presentation on theme: "Stable revenue in 2013 provides platform for recovery Presentation Q3 2013 results 7 November 2013 Gerard van de Aast, CEO Hans Turkesteen, CFO."— Presentation transcript:

1 Stable revenue in 2013 provides platform for recovery Presentation Q3 2013 results 7 November 2013 Gerard van de Aast, CEO Hans Turkesteen, CFO

2 Highlights Q3 2013 results  Revenue in the quarter 1,256 million euro (Q2 2013: 1,274 million euro)  Operational EBITDA in the quarter -4 million euro (Q2 2013: -33 million euro)  Order intake YTD 2013 3,628 million euro, in line with revenue  Working capital Q3 stable versus Q2 despite regular seasonal increases  Earlier announced restructuring program largely completed and extended  Operational recovery Germany requiring more time; additional restructuring announced  Constructive dialogue covenant reset started 2

3 Back to running the business  Operational update Q3 2013  Financials Q3 2013 3

4 Restructuring program largely completed and extended ■Increase of 650 FTE reduction for 2013 is mainly in Eastern Europe (230 FTEs, downsizing business), Nordic (240 FTEs, capture integration benefits) and Marine (60 FTEs improving efficiency) ■Majority of the FTE reductions 2013 in Germany & Eastern Europe (780 FTEs), Benelux (350 FTEs), Traffic & Infra (240 FTEs), Nordic (240 FTEs) and Marine (150 FTEs) ■Total average payback time is 15 months ■Additional reduction of 300 FTEs in Germany for 2014 4

5 Operational update Q3 2013 Benelux  Dutch Building Services in process of turnaround  Industrial businesses progressing well and restoring results and margin UK & Ireland  Performance at a satisfactorily level  Opportunities in Water, Waste & Energy and International businesses Nordic  Satisfactory performance  Market conditions in Sweden and Finland remain difficult, Norway remains good  Cost saving through post acquisition synergies Spain & Turkey  Spain: markets remain tough, South America projects in progress  Turkey: reviewing strategic options, including book values ICT  Performance at a satisfactory level  Several deals with strategic partners Traffic & Infra  Recovering due to restructurings Marine  New management has stabilized the business and enter into change program 5

6 Operational update Q3 2013 Germany & Eastern Europe  Strong market with attractive projects in the market  A good reputation and market leadership position  German business trading weaker than assumed due to prior management  High cost structure and a number of weak project results  550 FTE reduction program in Germany halfway  Eastern Europe 240 FTE reduction program also halfway  Additional 300 FTE reduction in Germany will be implemented in 2014  3 year cost savings program (including stopping sponsoring activities) of €40m is underway 6

7 Good new projects Industrial technology Upgrading cleanrooms at Pfizer facilities in Ireland Infra technology 7 years maintenance and project contract at Dutch energy network provider Stedin for part of their network in the Province of Utrecht (NL) Building technology DBFMO contract for new to be build Penitentiary Zaandam (NL) including 25 years responsibility of technical infrastructure Marine technology Delivering of HVAC systems plus redundant cold and warm water supply systems for German research vessel ‘Sonne’ 7

8 Order intake first nine months 2013 (€m) Order intake YTD 13 Revenue YTD 13 Benelux499.5496.6 Germany & Eastern Europe639.0782.8 UK & Ireland466.7563.3 Nordic670.2654.0 Spain & Turkey168.4187.7 ICT494.0479.3 Traffic & Infra285.9273.5 Marine404.4304.1 Total3,628.13,741.3 8

9 Stable revenue provides platform for recovery Stable revenue  Stable revenue performance during first nine months 2013  Order intake in line with revenue for first nine months 2013 Improvement operational performance  Improve margins  Restructuring to bring cost structure in line  Improving project management and project execution  Procurement process  Scaling technologies Working capital reduction  Focus on cash  Reduce trade receivables  Reduce work in progress 9

10 Back to running the business  Operational update Q3 2013  Financials Q3 2013 10

11 Group performance 11 (€m) Q3 2013Q3 2012 Revenue1,256.41,374.0 Operational EBITDA-4.0-56.6 Non-operational costs-29.9- EBITDA-33.9-56.6 Net finance result-30.3-18.9 Result before tax-93.7-98.4 Income tax-2.48.9 Net result-96.1-89.5  Pro rata allocation of 2012 adjustments

12 Breakdown operational EBITDA performance 12 (€m) Q3 2013Q3 2013 %Q2 2013 %Q1 2013 % Benelux-1.1-0.7%-8.0%-2.5% Germany & Eastern Europe-19.7-7.3%-11.3%-10.2% UK & Ireland9.34.9%3.9%4.0% Nordic6.63.3%5.3%1.4% Spain & Turkey-2.2-3.5%-0.6%0.8% ICT6.33.6%3.1%5.2% Traffic & Infra3.94.6%3.5%-2.3% Marine-1.6-1.4%-12.5%-0.1% Group management-5.5--- -4.0-0.3%-2.6%-1.1%

13 Balance sheet 13 (€m) Q3 2013Q2 2013Q4 2012 Goodwill & other intangible assets1,266.11,277.91,299.7 Other fixed assets233.2239.2237.3 Assets held for sale25.326.527.6 Working capital335.7332.3106.2 Capital employed1,860.31,875.91,670.8 Equity678.4291.6 * 524.5 Net interest-bearing debt835.71,205.9773.0 Other (non-interest bearing) LT liabilities19.725.124.8 Restructuring provisions28.450.524.0 Other liabilities298.1302.8324.5 Funding1,860.31,875.91,670.8 * Equity before completion of rights issue of ordinary shares and issue of cumulative financing preference shares

14 Balance sheet – equity movement (€m) Equity 30 June 2013291.6 Result for the quarter-96.1 Proceeds from rights issue ordinary shares499.2 Proceeds from issue cumulative financing preference shares30.0 Transaction related costs-41.6 Other-4.7 Equity 30 September 2013678.4 14

15 Balance sheet – working capital (€m) Q3 2013Q2 2013Q4 2012 Work in progress382.0347.5264.8 Trade receivables938.1938.71,132.1 Other current assets265.7337.7283.8 Trade payables-708.7-722.6-890.8 Other current liabilities-541.4-569.0-683.7 Working capital335.7332.3106.2 % LTM revenue6.4%6.2%2.0% 15  Other current liabilities Q3 2013 includes accrued project expenses (€125m), accrued personnel expenses (€183m), deferred income (€65m), VAT payable (€39m) and various other accrued liabilities

16 Aging of trade receivables (€m, net amount) Q3 2013Q2 2013Q4 2012 Not past due668.5664.3767.8 Past due <180 days140.6146.6228.8 Past due >180 days129.0127.8135.5 Total938.1938.71,132.1 16

17 Balance sheet – net interest-bearing debt (€m) Q3 2013Q2 2013Q4 2012 Syndicated bank loans450.7608.3488.3 Senior notes322.3326.4326.3 Other interest-bearing debt210.0399.9343.5 Cash-147.3-128.7-385.1 Net interest-bearing debt835.71,205.9773.0 17 Movement net interest-bearing debt (€m) Net interest-bearing debt 30 June 2013-1,205.9 Operational EBITDA-4,0 Change in working capital-3.4 Net capex-5,7 Paid interest & tax (net)-23.2 Restructuring & refinancing payments-61.9 Net proceeds from equity+487.6 Other-19.2 Net interest-bearing debt 30 September 2013-835.7

18 Extraordinary items first nine months (€m) HeadcountFinancial Total restructuring Announced90 * 110200 Incurred YTD 201370.790.5161.2 Accounted YTD 2013 Non-operational Finance expenses Prepaid expenses Amortised cost of loans Equity 70.7 - 16.9 19.6 - 12.4 41.6 87.6 19.6 - 12.4 41.6 70.790.5161.2 Paid YTD 201339.390.5129.8 18 * Including extended restructuring program, but excluding additional redundancies in Germany in 2014

19 Q&A 19

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