Press conference August 15, 2000 Comments to the results of the second quarter and first half of 2000 by Harrie Noy, chairman Executive Board ARCADIS NV
Net income 2nd quarter 2000: EUR 5,6 mln Gross revenue Net revenue Operating income Net income Growth 26% 23% 32% 19%
Net income 1st half 2000: EUR 8,8 mln Gross revenue Net revenue Operating income Net income ,1 7, ,3 8,8 Growth 24% 22% 24% 21%
Development operating income 21% 20%8%4%24%
Gross revenu : Market segments Environment +22% Buildings +55% Real estate/Telecom +21% Infrastructure +14%
Geographic breakdown First half 2000 First half 1999
Gross revenue: Regions Netherlands Consulting +13% Europe rest -/-5% Asia, Africa, Latin America +69% United States +71% Netherlands Contracting -/-10%
Prospects 2000 Increase in operating income equal to first half Result NCC lower than 1999 Tax level slightly higher Net income: +12 tot 15%
Strategic review Presentation press conference 15 August 2000
ARCADIS has strongly expanded internationally North America AG&M POH Giffels Europe Germany Spain Belgium France Poland U.K. Netherlands South America Geotecnica Logos
Strategic motives Multinational clients One stop shopping Home market positions One firm concept Global network … …based on strong local positions
Good results achieved Europe top 3 / world wide no. 9 Stable growth of gross revenue and net income Acquisition of leading, innovative companies Successfully integrated in network One firm concept implemented Strongest international network in our business
No reason to be complacent Positive developments not reflected in share price Organic growth limited Image needs strengthening New team in Executive Board Conclusion: strategic review
Stronger focus on shareholder value Profitable growth essential –Organic growth of activities –Better margins –Acquisitions Concentrations on home markets –No further geographic expansion Higher share price improves growth potential
Acceleration profitable growth through: Making better use of network –Public transportation –Telecom –Partnering Broadening scope of services for multinational clients –Global account management –Services for site management New types of services –Temping –E-business Acquisitions to strengthen portfolio