Download Results second quarter and first half 2002

Results second quarter and first half 2002
By Harrie Noy, Chairman Executive Board
Amsterdam, The Netherlands, August 13, 2002
communications
infrastructure
buildings
environment
ARCADIS continues profit growth half year 2002
Net income from operations: +8%
 Gross

revenue
Growth +3%
 Operational
margin

Operating income + 13%

Margin rises from 6.3% to 7.2%
 Earnings

per share
Increase 8% to € 0.52
Results satisfactory given economy
Income 2nd quarter 2002: € 6.7 mln
Strong effect from exchange rate declines (real, dollar)
2002
2001
Growth
Gross revenue
202
201
0%
Operating income
12.6
11.3
11%
6.7
6.3
7%
0.33
0.31
11%
Net income from operations *
Net income f/ operations per share
Net income from operations excluding
exchange rate effects
*) After goodwill: EUR 0.1 mln
11%
Income 1st half 2002: € 10.6 mln
2002
2001
Growth
Gross revenue
395
382
3%
Operating income
20.3
18.0
13%
Net income from operations *
10.6
9.9
8%
Net income f/ operations per share
0.52
0.49
8%
Net income from operations excluding
exchange rate effects
*) After goodwill: EUR 0.1 mln
10%
Sources of growth 2002
Gross revenue
Second
quarter
First half
year
Total
0%
3%
- Autonomous
4%
5%
- Acquisitions/divestments
-1%
-1%
- Exchange rates
-3%
-1%
- Autonomous excl. effect real
estate valuations
5%
6%
Important developments
 Autonomous
 Growth
growth at a good level
mainly in Latin-America, Spain, Belgium
 Infrastructure
 Environment
 Gross
strong around the world
continues growth in U.S.
revenues U.S. slightly lower
 Integration
Dutch operations positive effects
Development operating income
In euro mln
25
20.3
20
15
16.3
12.6
13.1
1998
1999
18.0
10
5
0
8%
First half year
4%
2000
2001
2002
24%
11%
13%
Development net income and EPS
(excl. extraordinary items)
In mln euro
In euro
12
9.9
10
8
7.2
0.75
8.8
0.60
6.5
0.52
0.49
6
4
10.6
0.45
0.44
0.34
0.30
0.38
0.15
2
0.00
0
Net income
0.90
1998
1999
2000
2001
+5%
+11%
+21%
+13%
First half year
2002
+8%
Balance sheet
Solvency
50%
40%
41.5%
43.6%
34.6%
30%

Healthy balance sheet

Equity somewhat lower resulting
20%
from exchange rate effects
10%

Temporary pressure solvency
0%
2000
2001
through purchase of own shares
2002
Debt / EBITDA

Low leverage limits interest burden

Enough room for acquisitions also
2.0
1.5
1.5
after French takeover
0.9
1.0
0.7
0.5
0.0
2000
2001
2002
Gross revenue: Market segments half year 2002
Infrastructure +13%
Environment +2%
250
250
200
200
150
150
100
100
50
50
0
0
2000
2001
2002
Buildings -/-8%
2000
250
200
200
150
150
100
100
50
50
0
0
2001
2002
2002
Communications -/-16%
250
2000
2001
2000
2001
2002
Infrastructure +13%

Netherlands: besides high speed
and Betuwelijn, also Hanzelijn

Start ring Antwerp

Large assignments Spain related to
investment program

Growth U.S. despite some market
pressure
HSL projects Spain

Energy projects Brazil provide
strong growth

Position rail infra Chili
Environment +2%

Autonomous growth 4%

Fully attributable to U.S.

U.S. GRIP™ projects for DOD

Brazil growth through Hydro
Ambiente

Environment as entry point for
expansion services to industry
Buildings –8%

Decline in U.S. and Netherlands

Continued growth in Spain and
Belgium

Netherlands: decline office market
+ recudtion less profitable work
Rijksmuseum Amsterdam

U.S. almost stable vs. Q4 2001

Two large assignments U.S.
automotive industry
Communications –16%

Decline from real estate valuation
and telecom

Telecom stable vs. Q4 2001

Focus telecom on higher margin
projects:


First mile Deventer

Antenna’s on rail portals
GIS-market continues growth
(+22%)
Gross revenue: Regions
NL +3% (ex. real estate +6% )
America's +1% (aut. +3% )
200
200
150
150
100
100
50
50
0
0
2000
2001
2002
2000
Other Europe +7%
200
150
150
100
100
50
50
0
0
2001
2002
2002
Other countries +13%
200
2000
2001
2000
2001
2002
Acquisitions
 Spain
(in Q2, 2002)
 Casta,
gross revenue EUR 4 mln
 Manage
 Growth
 France
senior citizen housing and services
market in Spain
(after Q2, 2002)
 FCI,
gross revenue EUR 60 mln; 800 employees
 80%
infrastructure; 20% environment
 Home
market position in France (top 5)
Positive effect on earnings per share
Outlook market
 Infrastructure
 Market
demand stays at good level
 Environment
 Opportunities
for growth in U.S.
 Revenue gets long-term character through GRIPTM
 Buildings
 Better
order book U.S.
 Market recovery depends on economy
 Communications
 No
recovery in telecom before 2004
 Result from abolishment real estate tax limited
Outlook 2002
 Lower
autonomous growth in second half

Insecurity economic recovery

Earlier revenue decline buildings/communications
 Exchange
rates: negative translation effect
 Compensation
 Further
margin improvement
 Depending
 Barring:
from contribution acquisitions
on economic recovery net income 5-10% higher
unforeseen circumstances
infrastructure, buildings, environment, communications
Part of a bigger picture