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Published byRafe Casey Modified over 9 years ago
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First half year results 2007 Harrie Noy, CEO Analyst meeting, August 8, 2007, Amsterdam, the Netherlands Infrastructure, environment, facilities
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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
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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 operations 1 ) Ditto per share 1,2)
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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 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)
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Currency -3% +1% 0% -5% -3% Selling prices +1% -0% 0% 0% 0% Organic growth accelerates
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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
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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
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EBITA increases considerably with 31% In € millions 11% -/- 5% 6% 35.3 46.4 Organic increases mainly from the Netherlands, U.S., Poland and South America 19%
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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
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Net income from operations and EPS H-1 -/-10% Earnings per share (in €) +12%+24%+60%+26% In € millions 0.47 0.53 0.65 1.05 1.31
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The service areas Infrastructure Environment Facilities
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Strong organic growth in all service areas
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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
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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
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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
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Outlook
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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
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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
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Thank you
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The merger with RTKL Strategic considerations Infrastructuur, milieu, gebouwen
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ARCADIS strategy is focused on growth in high added value services by building leadership positions in three segments: Infrastructure Environment Facilities
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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
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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.
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RTKL will change distribution of revenues Service areas 2006 Including RTKL
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2006 Including RTKL RTKL will change distribution of revenues Geography
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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
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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
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Imaginethe result Thank you
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