Arcadis Nv · EURONEXT:ARCAD

Arcadis Nv — FY2016 Earnings Presentation

30 slides from Arcadis Nv's earnings presentation, Feb 16, 2017

  1. Slide 1: Full Year Results 2016

    FULL YEAR RESULTS 2016 Renier Vree | CEO a.i. & CFO Jan-Oege Goslings | Group Controller Amsterdam 16 February 2017 IMPROVING QUALITY OF LIFE

  2. Slide 2: Disclaimer

    DISCLAIMER Statements included in this presentation that are not historical facts (including any statements concerning investment objectives, other plans and objectives of management for future operations or economic performance, or assumptions or forecasts related thereto) are forward looking state

  3. Slide 3: Simplify the operating model, reduce costs and client focus

    SIMPLIFY THE OPERATING MODEL, REDUCE COSTS AND CLIENT FOCUS • 2016 was a challenging year for Arcadis: - Impacted by external factors - the low oil price, recession in Brazil, and Brexit - Internally – leadership change • Good progress on priorities set in October: - Implementing simplified operatin

  4. Slide 4: Arcadis: Design & Consultancy for natural and built assets

    ARCADIS: DESIGN & CONSULTANCY FOR NATURAL AND BUILT ASSETS Global expertise Segments Americas Infrastructure 31% 26% Europe & Middle East Water 45% 14% Our four segments Asia Pacific Environment 14% 21% Buildings 10% 39% As % of Net revenues 16 February 2017 | FY 2016 Results Presentation | © Arcadi

  5. Slide 5: Financial highlights 2016

    FINANCIAL HIGHLIGHTS 2016  Gross revenues €3.3 billion, 3% below 2015. Net revenues €2.5 billion, organically -4%  Operating EBITA €175 million (-30%); EBITA €166 million (-20%), including €28 million restructuring cost and €19 million release of Hyder related provisions following settlement of li

  6. Slide 6: Q4/Full year 2016 operating results

    Q4/ FULL YEAR 2016 OPERATING RESULTS In € millions FY 2016 FY 2015 Change Q4 2016 Q4 2015 Change Gross revenues 3,329 3,419 -3% 854 873 -2% Organic growth -1% 1% -1% -1% Net revenues 2,468 2,597 -5% 608 636 -4% Organic growth -4% 0% -3% -4% EBITA 166 209 -20% 40 60 -34% EBITA margin 6.7% 8.0% 6.5% 9

  7. Slide 7: Full year 2016 – Net income and EPS

    FULL YEAR 2016 – NET INCOME AND EPS In € millions FY 2016 FY 2015 Change • Amortization includes goodwill EBITDA 207 252 -17% impairment Brazil of €15 million Depreciation -41 -43 • Financing expense higher mainly due EBITA 166 209 -20% to foreign exchange effects Amortization -53 -48 EBIT 113 161 -

  8. Slide 8: Revenue and operating EBITA

    REVENUE AND OPERATING EBITA Net Revenues (€ millions & organic growth) -2 655 -3% -3% Full year 2016 645 -4% -4% 635 -5% -4 • 37% organic decline in Brazil and lower revenues in North America, 625 636 634 Asia and CallisonRTKL 630 615 -6 • Growth in Continental Europe, United Kingdom, and Australia

  9. Slide 9: Cash flow statement

    CASH FLOW STATEMENT In € millions FY 2016 FY 2015 • Free cash flow €80 million (2015: €121 million) EBIT 113 161 • Free cash flow Q4 €102 million (2015: €113 Depreciation and amortization 94 91 million) supported by significant collections in the EBITDA 207 252 Middle East Changes in net working cap

  10. Slide 10: Strong free cash flow in Q4, net debt in line with year-end 2015

    STRONG FREE CASH FLOW IN Q4, NET DEBT IN LINE WITH YEAR-END 2015 Free Cash Flow EBITDA (€ millions) (€ millions) 121 125 80 145 138 75 135 125 114 25 115 107 105 100 -25 95 -30 85 -75 -62 75 H1'15 FY'15 H1'16 FY'16 H1'15 H2'15 H1'16 H2'16 Net Debt Average net debt/EBITDA (€ millions) Calculated usin

  11. Slide 11: Balance sheet

    BALANCE SHEET In € millions Assets 31 Dec 2016 31 Dec 2015 Equity and liabilities 31 Dec 2016 31 Dec 2015 Intangible assets 1,170 1,253 Equity 1,002 1,011 Fixed assets 100 91 Loans & borrowings 700 687 Other non-current assets 87 100 Other non-current liabilities 176 219 Trade receivables 622 607 Bi

  12. Slide 12: Reduction working capital and DSO remains priority

    REDUCTION WORKING CAPITAL AND DSO REMAINS PRIORITY Working capital 2015/2016 (€ millions & as % of gross revenues) • NWC and DSO improved significantly compared to previous quarters in 2016 20.7% 20.9% 19.3% 19.9% 18.8% 18.9% 17.1% 17.5% 20 730 • Large milestone driven contracts in Middle East will

  13. Slide 13: Aging receivables

    AGING RECEIVABLES • Progress from implementing better working 31 December 2016 31 December 2015 capital processes In € millions Gross Gross receivable As % receivable As % • Overdue receivables > 120 days mainly due to delay in payments KSA for completed work in Not past due 341 50% 303 46% public s

  14. Slide 14: Maturity profile of financing

    MATURITY PROFILE OF FINANCING • Diversified sources of debt Bank Term Loans €217M funding RCFs €325M In € millions USPPs US$200M • Good spread of maturities 450 Schuldschein €210M & US$83M 400 • End date revolving credit facility 350 extended by one year to 2021 300 250 200 150 100 50 0 2017 2018 20

  15. Slide 15: Segments

    SEGMENTS EUROPE & AMERICAS MIDDLE EAST ASIA PACIFIC CALLISONRTKL 16 February 2017 | FY 2016 Results Presentation | © Arcadis 2017 |

  16. Slide 16: Americas

    AMERICAS FACTS & FIGURES 7,100 NUMBER OF EMPLOYEES 769 NET REVENUES 31% % OF TOTAL NET REVENUES (IN € MILLIONS) 14% 7% 16% 28% 41% 44% 49% 28% 45% 28% CLIENTS BUSINESS LINES SERVICES  Regulated  Buildings  Consulting  Public  Infrastructure  Design & Engineering  Private  Water  Program, pr

  17. Slide 17: Americas segment 2016 results

    AMERICAS SEGMENT 2016 RESULTS In € millions FY 2016 FY 2015 Change Q4 2016 Q4 2015 Change Gross revenues 1,227 1,282 -4% 323 324 0% Net revenues 769 832 -8% 187 188 -1% Organic growth -9% -5% EBITA 26.3 53.5 -51% Operating EBITA1) 36.1 64.1 -44% Operating EBITA margin 4.7% 7.7% Backlog organic growt

  18. Slide 18: Europe & Middle East

    EUROPE & MIDDLE EAST FACTS & FIGURES 12,600 NUMBER OF EMPLOYEES 1,117 NET REVENUES 45% % OF TOTAL NET REVENUES (IN € MILLIONS) 21% 23% 28% 37% 39% 38% 39% 51% 13% 11% CLIENTS BUSINESS LINES SERVICES  Regulated  Buildings  Program, project &  Public  Infrastructure cost management  Private  Wa

  19. Slide 19: Europe & Middle East segment 2016 results

    EUROPE & MIDDLE EAST SEGMENT 2016 RESULTS In € millions FY 2016 FY 2015 Change Q4 2016 Q4 2015 Change Gross revenues 1,398 1,406 -1% 353 367 -4% Net revenues 1,117 1,151 -3% 279 299 -6% Organic growth 1% 0% EBITA 67.0 99.0 -32% Operating EBITA1) 83.9 116.3 -28% Operating EBITA margin 7.5% 10.1% Back

  20. Slide 20: Asia Pacific

    ASIA PACIFIC FACTS & FIGURES 5,500 NUMBER OF EMPLOYEES 338 NET REVENUES 14% % OF TOTAL NET REVENUES (IN € MILLIONS) 3% 9% 27% 26% 27% 1% 3% 64% 70% 70% CLIENTS BUSINESS LINES SERVICES  Regulated  Buildings  Program, project &  Public  Infrastructure cost management  Private  Water  Consultin

  21. Slide 21: Asia Pacific segment 2016 results

    ASIA PACIFIC SEGMENT 2016 RESULTS In € millions FY 2016 FY 2015 Change Q4 2016 Q4 2015 Change Gross revenues 378 371 2% 97 88 9% Net revenues 338 342 -1% 84 80 5% Organic growth -3% -1% EBITA 30.7 25.7 19% Operating EBITA1) 31.3 32.8 -5% Operating EBITA margin 9.3% 9.6% Backlog organic growth -12% 3

  22. Slide 22: CallisonRTKL

    CALLISONRTKL FACTS & FIGURES 1,800 NUMBER OF EMPLOYEES 244 NET REVENUES 10% % OF TOTAL NET REVENUES (IN € MILLIONS) 2% 3% 21% 15% 24% 57% 10% 19% 54% 95% CLIENTS REGIONS PRACTICES  Regulated  America  Commercial  Public  Europe & Middle East  Retail  Private  Asia Pacific  Workplace  Healt

  23. Slide 23: CallisonRTKL segment 2016 results

    CALLISONRTKL SEGMENT 2016 RESULTS In € millions FY 2016 FY 2015 Change Q4 2016 Q4 2015 Change Gross revenues 326 360 -9% 81 93 -13% Net revenues 244 272 -10% 58 69 -16% Organic growth -9% -15% EBITA 22.9 30.6 -25% Operating EBITA1) 24.3 37.1 -35% Operating EBITA margin 9.9% 13.6% Backlog organic gro

  24. Slide 24: Balanced portfolio

    BALANCED PORTFOLIO BALANCE BETWEEN MATURE AND …PRIVATE AND PUBLIC CLIENTS… EMERGING MARKETS… In % In % 10% 17% 31% Americas Private sector 14% Europe & Middle East Public sector Asia Pacific 56% 27% Regulated CallisonRTKL 45% … COMPLEMENTARY BUSINESS LINES… …AND DESIGN AND CONSULTANCY In % In % 10%

  25. Slide 25: Global trends and drivers

    GLOBAL TRENDS AND DRIVERS SUSTAINABILITY GLOBALIZATION URBANIZATION CLIMATE MOBILITY SCARCITY CHANGE ASSET ENERGY & DIGITAL PRODUCTIVITY NATURAL RESOURCES 16 February 2017 | FY 2016 Results Presentation | © Arcadis 2017 | 25

  26. Slide 26: The way forward - shaping sustainable value

    THE WAY FORWARD - SHAPING SUSTAINABLE VALUE VALUE CREATION PROCESS • Our markets benefit from strong fundamentals for growth: Urbanization, Mobility and Sustainability • We differentiate by combining strong local market positions with EXPERTISE Infrastructure global market sector insights and deep t

  27. Slide 27: Sustainable outcomes, improving quality of life

    SUSTAINABLE OUTCOMES, IMPROVING QUALITY OF LIFE Buildings Chadstone shopping centres, Australia • One of the world’s most successful shopping centres • The design was achieved using 3D parametric modelling and refined through a combination of video and imagery. Infrastructure Manchester Airport, Uni

  28. Slide 28: Sustainable outcomes, improving quality of life

    SUSTAINABLE OUTCOMES, IMPROVING QUALITY OF LIFE Environment New York City Health and Hospitals, US • Post superstorm Sandy work on the Metropolitan and Coler Hospitals on Coney Island • Innovative solutions protecting four hospitals with a total capacity of 2,355 patients and one level 1 Trauma Cent

  29. Slide 29: Leadership priorities

    LEADERSHIP PRIORITIES Market outlook 2017: • In general positive business sentiment with private sector clients, with uncertainty in Asia • Higher oil prices contribute to an improved business climate in the Oil & Gas sector • New US Administration sends positive signals for Infrastructure and Build

  30. Slide 30: Slide 30

Arcadis — FY2016 Earnings Presentation on 6ix