Arcadis Nv · EURONEXT:ARCAD

Arcadis Nv — Q2 2020 Earnings Presentation

20 slides from Arcadis Nv's earnings presentation, Jul 28, 2020

  1. Slide 1: Solid results and excellent free cash flow

    2020 Q2 & HY Results Solid results and excellent free cash flow Next generation thinking | Sustainable delivery Audiocast, 28 July 2020 Peter Oosterveer (CEO) & Jurgen Pullens (Director IR)

  2. Slide 2: Disclaimer

    FIRST HALF YEAR RESULTS 2020 Disclaimer Statements included in this presentation The forward-looking statements are based that are not historical facts (including any upon our current expectations, plans, statements concerning investment estimates, assumptions and beliefs that objectives, other plan

  3. Slide 3: Solid results and excellent free cash flow in the second quarter

    FIRST HALF YEAR RESULTS 2020 Solid results and excellent free cash flow in the second quarter ▪ Sustained focus on resilience: keeping our people safe and supporting our clients ▪ Measures to reduce costs and improve cash collection paying off ▪ Solid operating EBITA of €49 million despite modest re

  4. Slide 4: Immediate and significant action to protect our people and secure business continuity

    FIRST HALF YEAR RESULTS 2020 Immediate and significant action to protect our people and secure business continuity Eight COVID-19 workstreams established early March: People Client Care GEC/GSSC Communications Systems Recover and Travel Financial Impact Continuity & IT Re-imagine of our people work

  5. Slide 5: COVID-19: Resilience to recovery

    FIRST HALF YEAR RESULTS 2020 COVID-19: Resilience to recovery In our work with private and public sector clients we focus on the following five principles for enhancing resilience: People Design Planning Digital Sustainability “Our thinking about resilience is evolving, and it closely links to the s

  6. Slide 6: Integral part in HS2, one of Britain's largest infrastructural projects

    UNITED KINGDOM Integral part in HS2, one of Britain’s largest infrastructural projects Jurgen Pullens Director IR

  7. Slide 7: Ensuring continuity of work, with increased cash collection efforts

    FIRST HALF YEAR RESULTS 2020 Ensuring continuity of work, with increased cash collection efforts First half year In € millions H1’20 H1’19 Change Gross revenues Net revenues Organic growth % 1,703 1,286 0% 1,707 1,275 2% 0% 1% 7.6% Operating EBITA % EBITDA 154 149 3% EBITDA margin 12.0% 11.7% Adjust

  8. Slide 8: Solid Q2 results despite modest revenue decline, significant reduction of working capital

    FIRST HALF YEAR RESULTS 2020 Solid Q2 results despite modest revenue decline, significant reduction of working capital Net Revenues and organic growth Operating EBITA (margin) € millions, % € millions, % 3% 5% 3% 9.2% 2% 2% 8.4% -3% 7.6% 7.7% 7.2% 7.8% 61 647 642 660 658 54 628 628 48 50 48 49 Q1'19

  9. Slide 9: Improved income from operations

    FIRST HALF YEAR RESULTS 2020 Improved income from operations First half year In € millions H1’20 H1’19 Change EBITA 92 91 1% Amortization & impairment -8 -8 0% EBIT 84 83 2% Net finance expense -16 -19 -16% Taxes on income -24 -22 -24% Normalized income tax rate1 Expected credit loss on shareholder

  10. Slide 10: Measures to improve billing and collection process paying off

    FIRST HALF YEAR RESULTS 2020 Measures to improve billing and collection process paying off First half year In € millions H1’20 H1’19 ▪ Net working capital improved from EBITDA 154 149 additional measures and increased Lease expenses -41 -37 invoicing efficiency in the US Adjusted EBITDA1 113 112 ▪ O

  11. Slide 11: Significant catch-up in trade receivables and WIP

    FIRST HALF YEAR RESULTS 2020 Significant catch-up in trade receivables and WIP € millions Jun-19 % for GR Dec-19 % for GR Jun-20 % for GR Gross receivables 597 662 601 ▪ Strong cash collection in Q2 Provisions -57 -60 -55 Provisions % 9% 9% 9% ▪ Catch up in WIP compared to Y/E Trade receivables1 541

  12. Slide 12: Strong financial flexibility leads to further improved balance sheet

    FIRST HALF YEAR RESULTS 2020 Strong financial flexibility leads to further improved balance sheet Adjusted EBITDA Margin1 Free Cash Flow € millions, % € millions 9.5% 8.2% 8.5% 8.8% 8.8% 149 97 81 104 112 123 113 100 8 -6 H1'18 H2'18 H1'19 H2'19 H1'20 H1'18 FY'18 H1'19 FY'19 H1'20 Net Debt1 Average

  13. Slide 13: Supporting TenneT in Germany's energy transition

    GERMANY Supporting TenneT in Germany’s energy transition Peter Oosterveer CEO

  14. Slide 14: Americas: continued growth and margin improvement

    FIRST HALF YEAR RESULTS 2020 Americas: continued growth and margin improvement First half year 35% of net revenues 2020 2019 Change Gross revenues 712 679 5% Net revenues 452 426 6% Organic growth (%) 4% Operating EBITA 41 37 11% Operating EBITA margin 9.0% 8.8% Second quarter 2020 2019 Change Gross

  15. Slide 15: Europe & Middle East: solid performance in larger markets

    FIRST HALF YEAR RESULTS 2020 Europe & Middle East: solid performance in larger markets First half year 44% of net revenues 2020 2019 Change Gross revenues 676 692 -2% Net revenues 573 574 0% Organic growth (%) -1% Operating EBITA 40 38 5% Operating EBITA margin 7.0% 6.7% Second quarter 2020 2019 Cha

  16. Slide 16: Asia Pacific: Asia on path to recovery, excellent performance in Australia

    FIRST HALF YEAR RESULTS 2020 Asia Pacific: Asia on path to recovery, excellent performance in Australia First half year 13% of net revenues 2020 2019 Change Gross revenues 182 188 -3% Net revenues 164 165 -1% Organic growth (%) 2% Operating EBITA 10 13 -22% Operating EBITA margin 6.0% 7.6% Second qu

  17. Slide 17: CallisonRTKL: COVID-19 severely impacting sector

    FIRST HALF YEAR RESULTS 2020 CallisonRTKL: COVID-19 severely impacting sector First half year 8% of net revenues 2020 2019 Change Gross revenues 133 148 -11% Net revenues 98 111 -12% Organic growth (%) -13% Operating EBITA 7 10 -30% Operating EBITA margin 6.8% 8.6% Second quarter 2020 2019 Change Gr

  18. Slide 18: New unit Arcadis Gen delivers first operational product to clients

    FIRST HALF YEAR RESULTS 2020 New unit Arcadis Gen delivers first operational product to clients Recently launched product: Universal Visual Optimizer ▪ Our first Software as a Service (SaaS) web app: powerful, fast and simple. Setup ▪ Arcadis entity focused on rapid development of in days, results i

  19. Slide 19: Strong ability to adapt to COVID-19 reality

    FIRST HALF YEAR RESULTS 2020 Strong ability to adapt to COVID-19 reality ▪ Actions implemented to secure business continuity, reduce cost and preserve cash have paid off ▪ COVID-19 impact underscores importance for societies to invest in resilience and sustainability ▪ Embracing resiliency thinking

  20. Slide 20: Arcadis. Improving quality of life.

    Arcadis. Improving quality of life.

Arcadis — Q2 2020 Earnings Presentation on 6ix