Results second quarter and first half 2003

1
Results second quarter and first half 2003

• By Harrie L.J. Noy, Chairman Executive Board
• Amersfoort, The Netherlands, August 12, 2003

2
Net income from operations H1 2003
-10Excluding currency effect -1

• Net income decline caused in second quarter
• Gross revenue remains level
• Gross revenue H1 -1
• Excluding currency effect 8
• Net income from operations per share H1 0,47
• Decline of 10
• Excluding currency effect decline of 1

3
Net income second quarter 2003 5.7 mln
Excl. currency 6 -/-33 -/-8 -/-8

• Gross revenue
• Operating income
• Net income f/ operations1)
• Ditto per share2)
• Before goodwill and extraordinary items
• In 2002 and 2003 based on 20.3 million shares
  outstanding

2002 202 12.6 6.8 0.33
2003 198 7.9 5.7 0.28
_ ? _ -/-2 -/-37 -/-16 -/-16
Deteriorated Dutch market combined with higher
pension charges pressures result
4
Net income first half 2003 9.6 mln
Excl. currency 8 -/-21 -/-1 -/-1

• Gross revenue
• Operating income
• Net income f/ operations1)
• Ditto per share2)
• 1) Before goodwill and extraordinary items
• In 2002 and 2003 based on 20.3 million shares
  outstanding

2003 391 14.8 9.6 0.47
2002 395 20.3 10.7 0.52
_ ? _ -/-1 -/-27 -/-10 -/-10
5
Gross revenue development
First half -/-1 -/-9 9 -/-1
Second quarter -/-2 -/-8 9 -/-3

• Total
• Currency effect
• Acquisitions/divestments
• Organic
• Gross revenue remains at reasonable level also
  organically

Gross revenue
6
Important developments

• Stagnant Dutch market
• Government reductions, focus on tendering
  procedures
• Economy limits private investment
• Discussion real estate valuations slows project
  starts in Q2
• Delay projects Brazil compensated by contribution
  energy projects
• Growth in Belgium and England, also United States
• Infrastructure and mainly environment maintain
  growth
• Breakthrough in facility management
• Expansion through acquisitions, especially in
  U.S.

7
Measure to restore Dutch profitability

• Cost reduction program intensified
• Approximately 275 staff reductions
• 100 already realised by attrition and reduction
  flexible contracts
• Pension regulation to be reviewed

8
Development operating income H1-2003
In millions of euros
4
24
11
13
-/-27
9
Development operating income Q2-2003
Operating income
-/- 37
10
Net income from operations and EPS
In mln
0.52
0.47
0.49
0.44
0.38
21
13
8
-/-10 -/- 1(excl. currency)
11
Earnings per share (in )
11
Balance sheet

• Healthy balance sheet ratios
• Shareholders equity somewhat lower through
  currency effects
• Low leverage limits interest cost
• Enough room for acquisitions even after recent
  expansions

12
Gross revenue market segments H1-2003
13
Infrastructure 7

• Growth mainly by acquisition (FCI)
• Organic growth slows to 1 through Netherlands
  and Brazil
• In Belgium and Spain organic growth remains at
  high level
• Germany grows through work on high speed rail and
  floodings
• Despite budget pressure still growth in the U.S.

Metrosur, Madrid
14
Environment -/- 6

• Organic growth of 5 mainly from U.S.
• GRIP approach in U.S. success in private and
  federal markets
• New services for companies contribute to growth
• Also growth in Netherlands, Belgium and Germany
• In France and Brazil much synergy through MNC
  program

Fort Gordon (Georgia) GRIP for American
Department of Defense
15
Buildings -/- 3

• Slow recovery U.S. third consecutive quarter
  with organic growth
• Decline Europe as a result of economic downturn
  
• In Netherlands and Spain reduced real estate
  investment of considerable impact
• Contribution from acquisition FCI

Oosterdokseiland, Amsterdam
16
Communications -/- 22

• Further decline telecom in U.S.
• Elsewhere telecom market also remains difficult
• Delays in new project starts in real estate
  valuations
• GIS offers opportunity through links with
  infrastructure and environmental activities

GIS system for maintenance and water management
in Spain
17
Breakthrough in facility management

• Total Facility Management for Philips Netherlands
  
• Long term cooperation, contract for 4 years
• Multiple services including
• Technical maintenance buildings and sites
• Contract management energy, water etc.
• Transfer of 60 employees
• Management over 50 million/year
• As of 2004 contribution to results

18
Acquisition Homola in Germany

• Strong in project- and program management
• Top 3 position in Germany
• Market leader in Czech Republic
• 50 infrastructure 50 buildings
• Gross revenue EUR 10 million
• 125 employees

Hoofdkantoor Lufthansa
Isar South neighborhood, Münich
19
Acquisition Finkbeiner, Pettis Strout in U.S.

• In Ohio, Michigan, North Carolina and Virginia
• Water, wastewater and transportation
  infrastructure
• Gross revenue US 30 million
• 300 employees

Waste water treatment, Ohio
Reconstruction 12 Mile Road, Michigan
20
Acquisitions in infrastructure market Florida

• Lawson Noble Webb
• Transportation infrastructure
• Land development
• Gross revenue US 10 million
• 125 employees
• Reese Macon Associates
• Water and wastewater
• Membrane technology
• Gross revenue US 2 million
• 10 employees

I-95 Northlake BoulevardPalm Beach County,
Florida
Saturnia, Boca Raton, Florida
21
Geographical spread
2002
H1 - 2003
22
Market outlook

• Infrastructure
• In the Netherlands brake on government
  investments
• Other Europe offers goed opportunities
• Chances for growth in maintenance
  rail-infrastructure
• Environment
• Further growth market share in U.S.
• Chances for growth in France, Belgium, Brazil,
  Czech Republic
• Buildings
• Recover U.S. depends on economy
• Europe remains difficult
• Communications
• Real estate valuation round underway, GIS
  continues growth

23
Outlook 2003

• Improvement of Dutch results by measures taken
  has high priority
• Decline in operating income compensated by
  contribution energy projects Brazil in NCCs
• Contribution acquisitions partly offset by
  currency effects
• Net income from operations 10-15 lower
• Aim is further expansion of activities through
  acquisitions

24
infrastructure, buildings, environment,
communications
Part of a bigger picture