second quarter 2010

Imagine the result

Second Quarter 2010Harrie Noy, Chief Executive OfficerRenier Vree, Chief Financial Officer

August 4, 2010

© 2009 ARCADISApril 19, 20232

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 statements. These statements are only predictions and are not guarantees. Actual events or the results of our operations could differ materially from those expressed or implied in the forward looking statements. Forward looking statements are typically identified by the use of terms such as “may,” “will,” “should,” “expect,” “could,” “intend,” “plan,” “anticipate,” “estimate,” “believe,” “continue,” “predict,” “potential” or the negative of such terms and other comparable terminology.

• The forward looking statements are based upon our current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe that the expectations reflected in such forward looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth in the forward looking statements.


Operationally good second

quarter

Improved profit on back of strong revenue growth

No further organic revenue decline

Infrastructure and Water remain solid

Environment and Buildings are improving

Especially U.S. private environmental market increases

Margin at good level excl. non-recurring items

Integration Malcolm Pirnie on schedule, extensive synergy

For full year 2010 slight profit increase expected

Well positioned to benefit from economic recovery

Imagine the result

Results Second Quarter 2010Renier Vree, Chief Financial Officer

August 4, 2010


Gross revenue

Net revenue

EBITA

Income1)

Ditto per share1,2)

2009

415

287

28.5

17.1

0.28

_ _

23%

23%

12%

8%

0%

Income Q2 2010

€ 18.5 million

2010

512

353

31.8

18.5

0.28

1) Net income from operations before amortization and non-operational items

2) In 2010 based on 66.1 million shares outstanding (2009: 60.2 million)

Positive currency effect of 5% from stronger US$, Brazilian real


Gross revenue

Net revenue

EBITA

Income1)

Ditto per share1,2)

2009

833

577

56.3

32.6

0.54

_ _

15%

18%

9%

9%

0%

Income H1 2010

€ 35.6 million

2010

960

679

61.1

35.6

0.54

1) Net income from operations before amortization and non-operational items

2) In 2010 based on 66.3 million shares outstanding (2009: 60.2 million)

Positive currency effect of 2% from stronger US$, Brazilian real


Organic gross

revenuedevelopment

improved

Currencyeffect 1%0% -3%-4% -1% 5%


EBITARecurring

H1

In € million

61,156,3

46,4

35,3

57,0

0

10

20

30

40

50

60

70

2006 2007 2008 2009 2010

9%Increase 51% 31% 23% -1%


In € millionModest organic

improvement EBITA in Q2-

2010

0 5 10 15 20 25 30 35 40

EBITA Q2 2010

Other organic

Energy project

Acquisitions /divestments

Currency

EBITA Q2 2009 28.5

31.8

5%

14%

2%

-/- 9%

Q2: better results in U.S., Brazil, RTKL and England, less profit western Europe (including NL) due to price pressure

+12%


In H1 EBITA organically flat

excluding energy project

In € miljoen

0 10 20 30 40 50 60 70

EBITA Q2 2010 YTD

Other organic

Energy projects

Acquisitions /divestments

Currency

EBITA Q2 2009 YTD 56.3

61.1

1%

14%

1%

-/- 8%

+9%


Margin stays at good level

2008

9.9%

10.2%

10.7%

12.5%2)

10.8%2)

Q1

Q2

Q3

Q4

year

2010

9.5%3)

9.7%3)

2009

9.6%

9.9%

10.1%1)

11.0%

10.2%1)

Margin: recurring EBITA as % of net revenue 1) Recurring EBITA excludes one-off impact share participation

program of Lovinklaan2) Excluding impact sale hydropower plants Brazil3) Excluding loss on energy project Brazil

Reorganization and integration costs:

H1 2009: € 5.3 million; H1 2010 € 3.3 million


Some financial details

• As last year limited contribution from carbon credits

• Contribution from carbon credits expected to increase in fourth quarter

• Financing charges excluding derivatives:• H1-09: € 3.7 million• H1-10: € 8.7 million

• Increase mainly resulted from financing for acquisitions

• Tax pressure H1 2% lower

• Income from associates higher (Brazil)


Net income from operations

and EPS H1-2010

Earnings per share (in €)

35.6

32.631.6

26.8

21.2

0

10

20

30

40

2006 2007 2008 2009 2010

In € millions

0.35

0.44

0.520.54 0.54

In 2010 10% more shares outstanding

Increase +9%+60% +26% +18% +3%


Net debt / EBITDA 1)

1.11.3

1.01.4

0,00,20,40,60,81,01,21,41,6

2007 2008 2009 2010

Balance sheet stays

healthy

Net debt June 30, 2010 € 273 million (December 31, 2009: € 174 million)

Increase debt € 50 million due to currency

Net debt/EBITDA: 1.4 calculated conform bank covenants

1) 2008, 2009 and 2010 calculated conform bank covenants

15 © 2009 ARCADISApril 19, 2023

Business lines

INFRASTRUCTURE

WATER

ENVIRONMENT

BUILDINGS


Infrastructure H1-2010: 0% organic: -5%; acquisitions: 0%; currency: +5%

• Gross revenue lower after completion projects with substantial subcontracting (Brazil)

• Organic net revenue growth was 2%

• Growth from central governments in NL, Belgium, France and Central Europe

• Pressure in local markets slows growth

• U.S. declines due to lower state/city budgets

• Mining Brazil and Chile contributes to growth

Connecting Central Europe


Water H1-2010: +128% organic: 0%; acquisitions: +125%; currency: +2%

• Gross revenue more than doubled by merger with Malcolm Pirnie

• Organic net revenue growth was 5%

• Demand water management grew in all markets

• Brazil large waste water system contract

• Pressure in local markets impacts water less

• Malcolm Pirnie compensates decline in western and southern U.S. with growth in northeast

Water treatment, U.S.


Environment

H1-2010: +13% organic: 0%; acquisitions: +11%; currency: +2%

• Contribution acquisitions is environmental business Malcolm Pirnie

• Organic gross revenue decline Q1 turned around in 7% increase in Q2

• Environmental market U.S. picks up: large remediation contracts with lot of subcontracting

• Increase in net revenue offset by delays in some European countries

• Organic net revenue decline 1%

• Environmental market Brazil also shows improvement

Measuring carbon footprint for the city of Gent in Belgium


Buildings H1-2010: -9% organic: -9%; acquisitions: +1%; currency: 0%

• Net revenue declined 11%

• Decline in Q2 less than Q1

• Commercial property market has stabilized

• RTKL compensates decline in U.S. and Europe with growth in Asia and Middle East

• Pressure on activities in Belgium

• Growth in public projects in U.S. and Germany

Designed and delivered the Shell new Technology Center in Amsterdam

Imagine the result

OutlookHarrie Noy, Chief Executive Officer

August 4, 2010


Water20%

Buildings19%

Infrastructure25%

Environment36%

Well diversified portfolioFigures H1-2010

Business lines Geographic

Netherlands21%

Other Europe17%

Rest of world9%

United States53%

Provides robustness versus economic cyclesIn markets with long term growth potential


Good spread across client

types

Private clients

44%

Public sector37%

Utilities19%


InfrastructureMarket stays healthy, but growth weakens

• In Europe many projects for which financing is committed

• Investments in Dutch rail and road network

• In NL financing form natural gas (FES fund)

• Also large projects Central Europe with European funding

• Demand for infrastructure drives PPP-initiatives in Europe and the U.S.

• Brazil: large projects basis for growth and World Cup (2014) and Olympics (2016)


• Climate change and increasing threat of flooding drive water management

• Demand for clean drinking water and waste water treatment increasing, globally

• Financing from specific water charges: water is a utility

• Specialist know how globally applicable

• Synergy with Malcolm Pirnie offers many chances also internationally (Chile, Brazil, Middle East)

WaterStrong drivers for growth


• Regulation and sustainability provide solid basis

• Economic recovery drives demand from business

• Large contracts because companies focus on core business and outsource portfolios

• Vendor reduction increases

• Growth market share due to strong competitive position

• Growing demand for energy savings and carbon footprint reduction

EnvironmentGradual recovery from increasing demand


• Commercial property stable at low level, no recovery in sight

• New legislation U.S. causes delays in healthcare

• Backlog RTKL healthy due to Asia and ME: commercial and healthcare projects

• Demand (semi) public sector continues

• New contracts in Facility Management

BuildingsBottom reached, revenue advance in H2


Outlook 2010

• Backlog healthy and up 8% from year-end 2009

• Growth in Q2 came from Infrastructure and to a lesser extent water and environment, buildings weakened somewhat

• Modest organic growth in second half

• Maintaining margins remains priority

• Synergy with Malcolm Pirnie and in 2011 operational benefits

• Further expansion through acquisitions is on the agenda• For full year 2010 slight increase of 0-5% of net income from

operations (barring unforeseen circumstances)

ARCADIS Building Global Leadership

second quarter 2010

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