Arcadis Nv · EURONEXT:ARCAD
Arcadis Nv — H1 2017 Earnings Presentation
22 slides from Arcadis Nv's earnings presentation, Jul 27, 2017
Slide 1: First Half Year Results 2017
FIRST HALF YEAR RESULTS 2017 Peter Oosterveer I CEO Renier Vree I CFO Amsterdam 27 July 2017 IMPROVING QUALITY OF LIFE
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
Slide 3: Highlights First Half Year 2017
HIGHLIGHTS FIRST HALF YEAR 2017 • Starting to see benefits of the initiatives to position Arcadis for profitable growth: - more focus on clients - reducing working capital - simplified operating model with lower costs • North American business returned to growth after three years of decline • Positi
Slide 4: Client Focus and Improving Quality of Life – Recent Project Wins
CLIENT FOCUS AND IMPROVING QUALITY OF LIFE – RECENT PROJECT WINS Buildings Sydney Metro, Australia • Station Design and Technical services contract within a JV • Engineering design of 6 underground metro rail stations as part of Australia's biggest public transport project Infrastructure Salpêtrière
Slide 5: Client Focus and Improving Quality of Life – Recent Project Wins
CLIENT FOCUS AND IMPROVING QUALITY OF LIFE – RECENT PROJECT WINS Environment Moorebank Logistics Park, Moorebank, Australia • Securing a AU $150 million investment for Qube Holdings by the Clean Energy Finance Corporation • Providing freight logistics and sustainability advisory services Water Marin
Slide 6: First Half Year & Second Quarter 2017 Operating Results
FIRST HALF YEAR & SECOND QUARTER 2017 OPERATING RESULTS HALF YEAR SECOND QUARTER in € millions 2017 2016 Change 2017 2016 Change Gross revenues 1,648 1,678 -2% 830 832 0% Net revenues 1,256 1,263 -1% 628 630 0% Organic growth -1% 0% EBITDA 100 108 -8% 48 52 -8% Operating EBITA 90 98 -7% 44 46 -5% Op
Slide 7: First Half Year 2017 Net Income and EPS
FIRST HALF YEAR 2017 NET INCOME AND EPS • Net financing expenses €12 million (H1 In € millions H1 2017 H1 2016 Change 2016: €13 million) EBITDA 100 108 -8% Depreciation 20 20 • Income taxes increased to 30% mainly due EBITA 80 88 -9% to non-recognized losses Brazil Amortization -16 -19 EBIT 64 69 -7
Slide 8: Revenue and Operating EBITA
REVENUE AND OPERATING EBITA Net Revenues (€ millions & organic growth %) First Half year 2017 0% 1 655 -1% 0 • North America, Continental Europe, United Kingdom and Australia -1 645 -3% -3% -2 delivered organic revenue growth -4% -3 635 -5% -4 625 634 630 628 628 -5 -6 • Revenues declined in Latin A
Slide 9: Cash Flow Statement
CASH FLOW STATEMENT • Free cash flow -€28 million (H1 2016: -€62 million) In € millions H1 2017 H1 2016 EBITDA 100 108 • Movement in net working capital in line with last year Changes in net working capital -70 -72 • Free cash flow in second quarter +€34 million (Q2 2016: -€10 Changes in other worki
Slide 10: Strong Free Cash Flow, Lower Net Debt
STRONG FREE CASH FLOW LOWER NET DEBT FIRST HALF YEAR Free Cash Flow EBITDA (€ millions) (€ millions) 121 125 80 145 138 75 135 125 114 25 115 108 105 100 100 -25 95 -30 -28 85 -75 -62 75 H1'15 FY'15 H1'16 FY'16 H1'17 H1'15 H2'15 H1'16 H2'16 H1'17 Net Debt Average net debt/EBITDA (€ millions) Calcula
Slide 11: Balance Sheet
BALANCE SHEET In € millions Assets 30 June 2017 31 Dec 2016 Equity and liabilities 30 June 2017 31 Dec 2016 Intangible assets 1,114 1,170 Equity 977 1,002 Fixed assets 97 100 Loans & borrowings 595 700 Other non-current assets 84 87 Other non-current liabilities 171 176 Trade receivables 572 622 Bil
Slide 12: Reduction Working Capital and DSO Remains Priority
REDUCTION WORKING CAPITAL AND DSO REMAINS PRIORITY Working capital (€ millions & as % of gross revenues) 20.9% 19.9% 19.9% • Working capital as a percentage of gross revenues was 730 18.9% 19.3 % 20 17.5% 19.3% (Q2 2016: 19.9%) 18 660 16 • Positive free cash flow in second quarter helped improve 590
Slide 13: Aging Receivables
AGING RECEIVABLES • 8% lower net receivables due to focus on In € millions 30 June 2017 31 December 2016 collection Gross Gross As % As % receivable receivable • Increase > 120 days mainly due to a project for an Not past due 307 49% 341 50% Oil & Gas client in North America that involves Past due 0
Slide 14: Segments
SEGMENTS EUROPE & AMERICAS MIDDLE EAST ASIA PACIFIC CALLISONRTKL 27 July 2017 | First Half year Results | © Arcadis 2017 |
Slide 15: Americas First Half Year & Second Quarter Results
AMERICAS FIRST HALF YEAR & SECOND QUARTER RESULTS In € millions H1 2017 H1 2016 Change Q2 2017 Q2 2016 Change Gross revenues 599 606 -1% 302 296 2% Net revenues 394 391 1% 198 194 2% Organic growth -3% -1% EBITA 17.5 20.1 -13% Operating EBITA1) 23.4 24.0 -3% Operating EBITA margin 5.9% 6.1% Backlog
Slide 16: Europe & Middle East First Half Year & Second Quarter Results
EUROPE & MIDDLE EAST FIRST HALF YEAR & SECOND QUARTER RESULTS In € millions H1 2017 H1 2016 Change Q2 2017 Q2 2016 Change Gross revenues 685 725 -5% 335 361 -7% Net revenues 566 581 -3% 278 289 -4% Organic growth 1% -1% EBITA 36.6 41.5 -12% Operating EBITA1) 39.8 46.7 -15% Operating EBITA margin 7.0
Slide 17: Asia Pacific First Half Year & Second Quarter Results
ASIA PACIFIC FIRST HALF YEAR & SECOND QUARTER RESULTS In € millions H1 2017 H1 2016 Change Q2 2017 Q2 2016 Change Gross revenues 196 183 7% 105 95 10% Net revenues 172 166 4% 89 86 4% Organic growth 0% 1% EBITA 14.1 14.4 -2% Operating EBITA1) 14.2 14.4 -1% Operating EBITA margin 8.3% 8.7% Backlog or
Slide 18: CallisonRTKL First Half Year & Second Quarter Results
CALLISONRTKL FIRST HALF YEAR & SECOND QUARTER RESULTS In € millions H1 2017 H1 2016 Change Q2 2017 Q2 2016 Change Gross revenues 168 164 3% 88 80 11% Net revenues 124 125 -2% 63 61 2% Organic growth -3% 1% EBITA 12.3 12.1 1% Operating EBITA1) 13.1 12.4 5% Operating EBITA margin 10.6% 9.9% Backlog or
Slide 19: Improving Quality of Life - The Way Forward
IMPROVING QUALITY OF LIFE - THE WAY FORWARD URBANIZATION • Strong fundamentals for growth: Urbanization, Mobility and Sustainability - Working with clients and partners to create smart and sustainable urban areas that address the needs of society MOBILITY • Closer to our clients in a simplified stru
Slide 20: Acquisition E2 ManageTech
ACQUISITION E2 ManageTech • An enterprise technology solutions firm providing IT and business services for the Environmental, Health and Safety (EHS) information market • E2 was established in 1998 and employs more than 50 people, located in the United States and Canada • Capturing this segment stre
Slide 21: Leadership Priorities
LEADERSHIP PRIORITIES Outlook 2017: • In general, positive business sentiment in most regions • Increased infrastructure spending in many countries • Uncertainty around Brazil and the Middle East remains • Strong pipeline and cost reductions supporting profitable growth Leadership priorities 2017: •
Slide 22: Arcadis
( ARCADIS @ARCADIS |" Design & Consultancy for natural and built assets