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Results third quarter 2007 Harrie Noy, CEO Conference call, November 15, 2007 16:00 hrs CET.

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Presentation on theme: "Results third quarter 2007 Harrie Noy, CEO Conference call, November 15, 2007 16:00 hrs CET."— Presentation transcript:

1 Results third quarter 2007 Harrie Noy, CEO Conference call, November 15, 2007 16:00 hrs CET

2 Excellent performance continued Gross revenue up 31% of which 17% organic Net income from operations rises 33% Margin improved considerably, 10% goal reached over 9 months New acquisitions contribute well, especially RTKL Outlook remains good Performance reflects strong position in all three service areas

3 2006 311 19.6 12.3 0.61 _  _ 31% 43% 33% 32% Income third quarter 2007: € 16.3 million 2007 408 28.0 16.3 0.81 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 operations 1 ) Ditto per share 1,2)

4 2006 892 54.9 33.5 1.65 _  _ 22% 36% 29% 28% Income first nine months 2007: € 43.1 million 2007 1,088 74.4 43.1 2.12 Currency effect minus 4%, mainly as a result of US dollar decline Gross revenue EBITA Net income from operations 1 ) Ditto per share 1,2) 1) Before amortization and non operational items 2) In 2007 based on 20.4 million shares outstanding (2006: 20.2 million)

5 Currency -3% +1% 0% -5% -3% -3% Selling prices +1% -0% 0% 0% 0% 0% Organic growth continues a high level

6 Solid market conditions offer room for growth No signs of weakness in the U.S., except land development Strong increase in Brazil, Chile due to mining and energy demand Rapid growth in Dutch market at 17% organic European growth mostly U.K. and Belgium, Germany improving Margin in the quarter improved to 10.8% versus 9.6% last year Major acquisition of US based RTKL (design & planning) Niche acquisitions: Alkyon (NL); APS and Vectra (U.K.) Q3YTD geomix: NL 25%, US 45%, other Europe 22%, ROW 8%

7 Merger with RTKL strengthens facilities World leader in design and planning Architectural design, master planning, specialized engineering Revenues $ 195 million, 1050 staff in US, Europe, Asia Operating margin meets target in facilities Strong brand and reputation RTKL fits very well in ARCADIS strategy Next step in moving up the value chain Towards building leadership in facilities Stronger in China, closer to top 10 in US Ample opportunities for synergies

8 EBITA increases considerably with 36% In € millions 17% -/- 4% 5% 54.9 74.4 Organic increases mainly from the Netherlands, U.S. and South America 18%

9 Acquisitions strengthen our market positions Acquisitions 2007 Cost management NL Facility consulting GER Environment Belgium Water management NL Design, planning US Project management UK Environment UK Total BFB HL-S Aeolus Alkyon RTKL APS Vectra Staff 65 20 30 45 1050 70 110 1390 GR in € 6 2 3 5 144 13 15 187 Cons. from 1.1.07 1.4.07 1.7.07 6.7.07 10.8.07 14.11.07

10 Some financial details Carbon credits contribute € 2.7 million to EBITA (Q3YTD) Financing charges: - higher through growth / acquisitions - impact derivatives in Q3 € 1.5 million YTD 2006 included an interest gain of € 0.5 million (Q206) Minority interest higher due to good operational performance Brazil Tax rate will come out in full year to 32-33%

11 The service areas Infrastructure Environment Facilities

12 Strong organic growth in all service areas Figures relate to first nine months 2007; (..) = organic growth Overall currency effect for the period was minus 4%

13 Infrastructure +10% (+12%) Hydropower project Brazil Dutch market strong in road/rail and municipal work Other European countries also doing well Downturn land development U.S. compensated by water work Brazil and Chile expand on mining and energy projects

14 Environment +19% (+24%) At 24% organic growth very strong, particularly in the U.S. Client focused business model increases market share Brazil: more services for multinationals, Chile also strong Europe: growth in almost all countries Vectra expands capabilities in growing health and safety market

15 Facilities +62% (+12%) Palladium Prague PM job with RTKL 50% from acquisitions, particularly RTKL, but also P1 in US Organic 12%: mainly management & consultancy services Germany, U.K. Belgium and Netherlands are doing well NXP FM contract renewal/expansion also contributes to growth

16 Outlook

17 Financial markets underline U.S. sector strength

18 Solid outlook in US buildings market PinnacleOne Mostly active for public sector clients RTKL High end planning & design work Good position in federal market, home land security Exposure to residential limited Backlog up > 40% compared to January 1, 07 Shift towards government, healthcare and international

19 ARCADIS has strong position in labor market Most popular employers among high level graduates according to Intermediair (Dutch magazine) ARCADIS position on the list rose from 72 to 29 We far outrank the Dutch competition: ARCADIS position 29 overall, first in industry DHV position 106 Royal Haskoning position 118 Oranjewoud position 119 Grontmij position 174

20 Outlook per service area Infrastructure Strong need to improve and expand infrastructure Government investment stable basis with additional PPP funding U.S.: land development now <2% of total, downside risk limited Environment Climate change & sustainability drive demand Multinationals actively reduce vendors gain in market share Federal GRiP ® expected to pick up in 2008 Facilities Growth in project management / cost consulting also through AWwPC RTKL offers ample opportunity for top line synergy Benefiting from Middle East investments through APS & RTKL

21 Outlook for 2007 is good Markets offer plenty of opportunity Acquisitions remain high on our priority list Favorable operational development will carry through Margin goal of 10% to be reached this year Tax pressure higher; minority interest also higher Increase net income from operations of 20-25% for full year 2007 (barring unforeseen circumstances) ARCADIS stays well on track

22 Imaginethe result Thank you


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