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Imagine the result Results First Quarter 2010 Harrie Noy, Chief Executive Officer May 7, 2010.

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Presentation on theme: "Imagine the result Results First Quarter 2010 Harrie Noy, Chief Executive Officer May 7, 2010."— Presentation transcript:

1 Imagine the result Results First Quarter 2010 Harrie Noy, Chief Executive Officer May 7, 2010

2 © 2009 ARCADIS 2 February 2016 2 DISCLAIMER Statements included in this presentation that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward looking statements. These statements are only predictions and are not guarantees. Actual events or the results of our operations could differ materially from those expressed or implied in the forward looking statements. Forward looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “potential” or the negative of such terms and other comparable terminology. The forward looking statements are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward looking statements.

3 © 2009 ARCADIS 2 February 2016 3 Increase in revenues and profits Gross revenue 7% higher, aided by acquisitions Net income from operations up 10% Infra affected by local markets, water less so Environment improves due to private sector demand Buildings stable, helped by Asia and Middle East Increased backlog in all business lines Possible return to organic growth in second half Well positioned to benefit from economic recovery

4 © 2009 ARCADIS 2 February 2016 4 Gross revenue Net revenue EBITA Income 1) EPS 1,2) 2009 418 291 27.9 15.5 0.26 _  _ 7% 12% 5% 10% 0% Income Q1 2010 € 17.1 million 2010 448 325 29.3 17.1 0.26 1) Net income from operations before amortization and non-operational items 2) In 2010 based on 66.5 million shares outstanding (2009: 60.1 million) Currency effect: -1% on revenue; -2% on EBITA

5 © 2009 ARCADIS 2 February 2016 5 Important points in Q1 2010 Infrastructure growth softens but Conditions environment and buildings improving Revenue development impacted by end of large projects with high subcontracting Net revenue development stabilizes at -4% Recovery of profitability in the U.K. Improved margins in U.S. and RTKL Revenue and profits impacted by severe winter Options Brazilian energy projects under review

6 © 2009 ARCADIS 2 February 2016 6 Organic decline stabilized * Corrected for the sale of energy projects in Brazil in Q408 Currency effect -1% 0% -3% -4%

7 © 2009 ARCADIS 2 February 2016 7 EBITA Recurring +55% +48% Change Ex. currency +40% +46% +22% +28% + 1% -/- 6% In € million + 5% + 7%

8 © 2009 ARCADIS 2 February 2016 8 EBITA Q1 5% higher 29.3 27.9 in € million -6% -2% +13% Last years restructuring in UK leads to improved results Slight improvement in most other European countries Limited decrease in NL and Belgium, partly due to winter Brazilian energy projects generated a loss Restructuring charges € 0.7 million (2009: € 2.5 million)

9 © 2009 ARCADIS 2 February 2016 9 Margin stays at good level 2008 9.9% 10.2% 10.7% 12.5% 2) 10.8% 2) Q1 Q2 Q3 Q4 year 2010 9.0% 2009 9.6% 9.9% 10.1% 1) 11.0% 10.2% 1) Margin: recurring EBITA as % of net revenue 1) Recurring EBITA excludes one-off impact share participation program of Lovinklaan 2) Excluding impact sale hydropower plants Brazil Margin in Q1 2010 impacted by currency mix, option costs for acquisitions and severe winter

10 © 2009 ARCADIS 2 February 2016 10 Some financial details No contribution from carbon credits, same as in Q109 Contribution from carbon credits expected as from Q2 as delay in procedures is coming to an end In Q1 09 book profit on unwinding of derivatives of € 7.5 million Financing charges excluding derivatives: Q109: € 2.4 million Q110: € 4.1 million Increase resulted from acquisitions and financing of energy projects in Brazil Tax pressure somewhat lower Income from associates higher (Brazil)

11 11 © 2009 ARCADIS 2 February 2016 Business lines INFRASTRUCTURE WATER ENVIRONMENT BUILDINGS

12 © 2009 ARCADIS 2 February 2016 12 Infrastructure Q1-2010: -4% organic: -7%; acquisitions: 0%; currency: +3% Organic decline of 7% partly caused by ending of large projects with extensive subcontracting Net revenue declined only slightly, also as result of severe winter After U.S. now also local market pressure in Europe Growth from central government programs in Belgium, Netherlands, Central Europe PPP is upcoming: selected for high speed rail Tour – Bordeaux, largest PPP ever in France Connecting Central Europe

13 © 2009 ARCADIS 2 February 2016 13 Water Q1-2010: +122% organic: +1%; acquisitions: +122%; currency: -1% Gross revenues more than doubled through merger with Malcolm Pirnie Organic growth net revenue 4%, due to increased demand in water management Large contract Sao Francisco River in Brazil to combat water shortages Pressure local budgets also affects water, but to a lesser extent Malcolm Pirnie offsets declines in west and south with growth in northeast Water treatment, U.S.

14 © 2009 ARCADIS 2 February 2016 14 Environment Q1-2010: +2% organic: -6%; acquisitions: +11%; currency: -3% Acquisitions: environment Malcolm Pirnie Organic net revenue decline 1%, a clear improvement from previous quarters Driven by large U.S. contracts won in 2009 and increasing demand private sector European activities grew almost across the board Five year framework contract signed with ExxonMobil for ten European countries Measuring carbon footprint for the city of Gent in Belgium

15 © 2009 ARCADIS 2 February 2016 15 Buildings Q1 2010: -15% organic: -13%; acquisitions: 1%; currency: -2% Small healthcare acquisition NL added 1% Net revenue declined organically by 14% Commercial real estate Europe and U.S. has stabilized at low level RTKL compensates U.S. decline with work from Asia and Middle East Shanghai Changzheng Pudong hospital marks breakthrough In Belgium demand for industrial services is increasing Designed and delivered the Shell new Technology Center in Amsterdam

16 © 2009 ARCADIS 2 February 2016 16 Distribution of revenues Q1 2010 Segments Geography

17 © 2009 ARCADIS 2 February 2016 17 Outlook

18 © 2009 ARCADIS 2 February 2016 18 Outlook per business line Infrastructure – market remains healthy but growth softens In Europe multiyear investment programs offer good backlog In U.S. stimulus effect limited; Attractiveness PPP market increases; In Brazil many opportunities; in Chile earthquake recovery work Water – strong growth drivers, but short term softness Growth driven by drinking water, cleaner environment and flood protection Synergy with Malcolm Pirnie to create further opportunities Strategy is being detailed, poised for international growth SA, ME Environment – gradual recovery due to increasing demand Increased backlog from large contracts in the U.S. and outsourcing portfolios Increasing market share through international presence, advanced technology New themes: energy efficiency, carbon footprint reduction Buildings – reached bottom, recovery in H2-2010 Backlog increased second quarter in a row Commercial market stable on low level, no short term recovery RTKL compensates with growth in Asia, Middle East and healthcare

19 © 2009 ARCADIS 2 February 2016 19 Outlook 2010 Backlog healthy and up 5% from year-end 2009 Infrastructure growth impacted by local markets Outlook environment and buildings improved Further recovery possible in H2 with return of organic activity growth Maintaining margins remains priority Synergy with Malcolm Pirnie and in 2011 operational benefits Acquisitions stay on the agenda Long term perspective positive, but Because of economic uncertainty, no specific outlook for 2010 yet ARCADIS Building Global Leadership

20 20 © 2009 ARCADIS 2 February 2016 Imagine the result


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