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
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