Grontmij N.V. Analyst presentation Financial results Q1 2014 30 April 2014 Encouraging start of the year for Grontmij Highlights Q1 2014 Total revenue shows modest decline, net revenue is stable compared to last year EBITA excluding exceptional items improved to € 7.0 million (Q1 2013: € 2.6 million), also impacted by a strong performance in Sweden Net debt at € 63.6 million (FY 2013: € 54.1 million), explained by the additional equity as part of the refinancing and the seasonal increase of trade working capital Review strategic options France: Grontmij will initiate a divestment process of the French activities, either as a whole or in parts 2 Contents 3 Strategy and business update – Michiel Jaski Financial results Q1 2014 – Frits Vervoort Grontmij 2014 – 2016 ‘Back on Track’ strategy and financial targets 1 Restructuring 2 Realising profitable growth e Continue to build Europe f Focus on five selected growth segments a b c d Cost reduction Operational excellence improvements Portfolio optimisation Accelerate improvements Netherlands Target EBITA margin 6-8% of TR1 in 2016 3 – 5% TR1 organic growth from 2015 onwards Target TWC2 of 13% of TR by 2016 Note: 1. TR = Total Revenue; 2. TWC = Trade Working Capital 4 Cost reduction Cost reduction programme according to plan 5 Targeted cost savings Status Q1 2014 Cost reductions Annual run rate of € 4.1m (excl. 2015 – 2016 inflation) One-off cash out impact of € 0.2m 13.0 4 € million One-off cash 15 Cost reduction programme is progressing according to plan € million Cost reductions 0.2 Target 2016 Run rate Q1 2014 (excl. inflation ’15-’16) Expected 2014-2015 Realised to date Operational Excellence (OPEX) improvements What is OPEX? 6 OPEX programme: Pipeline Management Bid Decision Management Project Budgeting and Follow-Up Project Changes and Additional Work Client Satisfaction Surveys OPEX scores per country OPEX Topics 0 20 40 60 80 100 X X X Business processes and tools designed and released X X X X X X X X X Business processes and tools implemented X X X X X X Update as per End Q1 2014 Portfolio optimisation 8 France Non-core assets Review strategic options: Golf course Naarderbos: A divestment process of the French activities either as a whole or in parts will be initiated Closing of announced sale of Naarderbos golf course delayed due to delay on buyers side Consideration given towards continued presence in France to bid for large projects in Light Rail in Paris region Grontmij has taken legal actions Court ruled on 25 April 2014 in favour of Grontmij’s legal claim and ordered buyer to fulfil its obligations under the SPA Committed to clients and employees Accelerate improvements Netherlands 9 Grontmij Netherlands improvement program Leading European Consulting & Engineering company, top 3 position in the Netherlands Focus on large projects and clients Clients Differentiated profile in attractive market segments Growth segments Solid and predictable growth of operational profitability Professionalisation and cost savings Our Group Growth Segments 10 © Komenvoir Energy Highways & Roads © Ronesans Sustainable Buildings Water Light Rail Group Growth Segment Energy 11 Consortium with Grontmij, TU Delft and Stedin Issue: 15% of the Dutch gas network will reach its technical lifetime withinthe next 10 years Our role: Develop new strategy to replace existing gas infrastructure in the West of the Netherlands Group Growth Segment Energy 12 Issue: Connect consumers in the South of Germany with renewable power plants in the North Our role: Perform risk analyses and carry out environmental planning for 100’s of high-voltage energy lines © VDE I FNN/Übertragungsnetzbetreiber Main clients: Amprion and Westnetz Group Growth Segment Water 13 Issue: Inhabitants of North Jakarta need protection from water flooding Our role: Draft a master plan that offers long-term solution to flooding Group Growth Segment Sustainable Buildings Grontmij awarded BREEAM Assessor Company of the Year © John Sturrock Issue: Clients want to reduce energy consumption in new and existing buildings, aiming for buildings with high indoor-comfort and low exploitation-costs across the life cycle © John Sturrock Group Growth Segments Q1 2014 Process update per country and segment 15 Energy Water Highways & Roads Light Rail Sustainable Buildings NL DK SE BE FR UK GE PL TU CH Total On target Below target, expected to reach target Below target, expected to stay below target Order book development per Q1 2014 16 Trend (6 months) Comments Netherlands Increasing T&M increasing, P&D and W&E stabilising Denmark Declining Some recovery experienced in last months Sweden Declining Ramping up of large projects, but good market opportunities in coming months Belgium Stable High in all business lines France Stable Slight recovery in Buildings UK Declining W&E impacted by AMP6 tendering Germany Increasing High in all business lines Other countries Stable Increasing in Turkey and China, decreasing in Poland Contents 17 Strategy and business update – Michiel Jaski Financial results Q1 2014 – Frits Vervoort Key financials Q1 2014 18 Q1 2014 Q1 2013 % change % organic grow th Total revenue 186.6 192.0 -2.8% -1.8% Net revenue 160.3 161.3 -0.6% 0.4% 3.9 2.0 95.7% 89.0% -3.1 -0.6 7.0 2.6 174.6% 165.9% -2.3 -0.6 0.0 1.8 -2.3 1.2 EBITA margin 2.1% 1.0% EBITA margin excluding exceptional items 3.8% 1.3% # employees (average FTE) 6,791 7,099 € million, unless otherw ise indicated EBITA Exceptional items EBITA excluding exceptional items Net result from continuing operations Net result from discontinued operations Net result Special items (€ millions) Net result from continuing operations Interest rate sw ap (charge in Q1 2014) Q1 2014 Q1 2013 -2.3 -0.6 1.1 Income tax (benefit in Q1 2013) -2.7 -1.2 -3.3 Total revenues € 186.6m (Q1 2013: €192.0), with organic decline of 1.8%; net revenue stable with modest organic growth of 0.4% EBITA excl. exceptional items improved to € 7.0m (Q1 2013 € 2.6m), also impacted by strong performance in Sweden EBITA excl. exceptional items margin improved from 1.3% in Q1 2013 to 3.8% this year Exceptional items are higher than last year, relating to the additional cost saving programme -4.3% EBITA excluding exceptional items bridge Q1 2014 versus Q1 2013 EBITA excl bridge per country EBITA excl bridge P&L items 7.0 0.7 -0.9 7.0 0.1 1.1 4.1 3.5 2.6 2.6 1.2 -1.0 Q1’13 SE DK BE Other Q1’14 countries Q1’13 NR Direct costs* Indirect costs* Other Q1’14 * Adjusted for € 2.0 million reclassification of expenses between direct and indirect costs Key balance sheet items Q1 2014 20 Trade working capital TWC increased to € 137.8m (Q1 2013: € 130.8m) TWC as % of total revenue increased to 18.2% at the end of Q1 2014 (Q1 2013: 16.8%), due to higher WIP and lower payables Net debt Total net debt of € 63.6m (FY 2013: € 54.1m) Main movements equity issue (€ 20.5m) and seasonal increase of TWC requirements Net debt/EBITDA ratio was 2.0x per end Q1 2014 (covenant: <3.5x) Financial covenants Interest cover ratio per end Q1 2014 was 4.2x (covenant: >2.5x) Encouraging start of the year for Grontmij Highlights Q1 2014 Total revenue shows modest decline, net revenue is stable compared to last year EBITA excluding exceptional items improved to € 7.0 million (Q1 2013: € 2.6 million), also impacted by a strong performance in Sweden Net debt at € 63.6 million (FY 2013: € 54.1 million), explained by the additional equity as part of the refinancing and the seasonal increase of trade working capital Review strategic options France: Grontmij will initiate a divestment process of the French activities, either as a whole or in parts 21 Disclaimer This presentation is being communicated only to persons who have professional experience in matters relating to investments and other persons should not rely on or act upon this presentation. 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