Record Profit for ARCADIS with Sales above EUR 1 Billion.ARNHEM Arnhem (är`nəm), Ger. Arnheim, city (1994 pop. 133,670), capital of Gelderland prov., E Netherlands, a port on the Lower Rhine. It is an industrial, transportation, and tourist center. , The Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. -- ARCADIS (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ARCAF): --Net income from operations increased 40% --Gross revenue rose 11%, of which 5% was organic growth --Considerable margin improvement: 8.2% compared to 6.2% in 2004 --Solid performance seen in all markets --Proposal to increase dividend 37.5% to EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 0.66 per share --Outlook for 2006 positive: increase expected in gross revenue and income ARCADIS (NASDAQ: ARCAF) (EURONEXT  Euronext N.V. is a pan-European stock exchange based in Paris[1] : ARCAD), the international
consulting and engineering company, today announced excellent results
for 2005. Net income from operations (before amortization and
non-recurring items) rose 40% to EUR 33.4 million (2004: EUR 23.8
million). Per share this was EUR 1.65 compared to EUR 1.18 in 2004. This
record achievement resulted from solid organic growth, a considerable
margin improvement and a good contribution from acquisitions.Gross revenue rose 11% to EUR 1,001 million (2004: EUR 901 million) surpassing the EUR 1 billion threshold The point at which a signal (voltage, current, etc.) is perceived as valid. . Excluding currency effect, gross revenue increased 10%, of which 5% was organic growth, in line with our annual growth goal. A cash dividend of EUR 0.66 per share is proposed. This dividend represents 40% of net income from operations and an increase of 37.5% compared to the EUR 0.48 per share in 2004. In 2005, we implemented considerable portfolio changes. Lower margin activities were replaced by consultancy and management activities that generate superior added value Added value in financial analysis of shares is to be distinguished from value added. Used as a measure of shareholder value, calculated using the formula:
Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. revenue through acquisitions. This includes the acquisitions of Blasland, Bouck & Lee (BBL "Be back later." See digispeak. (chat) BBL - (I will) be back later. ) and Greystone in the U.S. environmental market, U.K.-based project management firm AYH AYH abbr. American Youth Hostels AYH n abbr (= American Youth Hostels) → Jugendherbergsverband, DJHV m in the real estate market and the Belgium Belgium (bĕl`jəm), Du. België, Fr. La Belgique, officially Kingdom of Belgium, constitutional kingdom (2005 est. pop. 10,364,000), 11,781 sq mi (30,513 sq km), NW Europe. firm SWK SWK Social Work SWK Sarawak (State in Malaysia) SWK Stadtwerke Krefeld AG (Germany) SWK Star Wars Kid SWK Sealed With Kisses in the infrastructure market. Commenting on the results, ARCADIS CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Harrie Noy said: "Our focus on activities with higher added value and more growth potential is yielding results. Thanks to the good performance of our employees across the board, we achieved our margin target of 8% in 2005 for the first time. Organic growth was at a good level, particularly in the environmental market. The expansion with BBL and AYH considerably improved the strategic positioning of ARCADIS. With BBL we belong to the top five globally in environment, while AYH further enhances our position in the real estate market."
Key figures
Amounts in millions of euros unless
otherwise noted Fourth quarter Full year
2005 2004 %Change 2005 2004 %Change
----------------------------------------------------------------------
Gross revenue 309 249 24% 1001 901 11%
EBITA 21.9 13.1 68% 60.4 35.9 68%
Net income 12.6 7.4 70% 33.4 22.2 51%
Net income per share (in EUR) 1) 0.62 0.36 72% 1.65 1.10 50%
Net income from operations 2) 12.6 8.0 59% 33.4 23.8 40%
Ditto, per share (in EUR) 1,2) 0.62 0.39 59% 1.65 1.18 40%
----------------------------------------------------------------------
1) In 2005 based on 20.3 million shares outstanding (in 2004: 20.1
million)
2) Before amortization and non-recurring items
Starting in 2005, ARCADIS reports in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System (International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). ). Figures for 2004 have been adjusted for comparison purposes. Fourth quarter Developments in the first nine months have continued in the fourth quarter. Gross revenue rose 24%. The currency effect increased to 5%, as in addition to the Brazilian Real The real (IPA: [xe'aw] or [ʁe'aɫ], symbol: R$, ISO 4217 code: BRL, plural: reais) is the currency of Brazil. It is also the name of the earliest Brazilian currency (see from the Colonial period to 1942. , the U.S. dollar also increased in value against the euro. On balance, the contribution from acquisitions and divestments was 15%. Organic growth totaled 5%, and mainly came from Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , France and Belgium, while Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). also contributed to the increase. In the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , organic growth flattened flat·ten v. flat·tened, flat·ten·ing, flat·tens v.tr. 1. To make flat or flatter. 2. To knock down; lay low: The boxer was flattened with one punch. somewhat as a result of a reduced amount of available production days in the accounting cycle. A slight revenue increase occurred in the Netherlands. In the fourth quarter we sold a minority participation in the Netherlands, resulting in a book gain of EUR 0.4 million. Adjustments of Dutch pension plans also had non-recurring effects on results. Among other things, this included the adjustment of the pension plan of PRC as a result of which this plan was classified a defined contribution per year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2005. This is further clarified in an attachment See attach a file. at the end of this release. EBITA EBITA Earnings Before Interest Taxes Amortization rose 68%, excluding non-recurring items 77%. Of this growth, 7% resulted from currency effects. The largest contribution in the increase (48%) came from the completed acquisitions. Organic growth was 22%, to which the main contributors were the Netherlands, Belgium, France and Brazil. Financing charges were positively affected for an amount of EUR 1.7 million by financial derivatives derivatives In finance, contracts whose value is derived from another asset, which can include stocks, bonds, currencies, interest rates, commodities, and related indexes. Purchasers of derivatives are essentially wagering on the future performance of that asset. used to cover currency and interest rate risks. The effect on net income was EUR 1.2 million. This effect is excluded in the calculation of net income from operations. Full year Gross revenue rose 11%, 10% excluding currency effect. Of this growth on balance 5% resulted from acquisitions and divestments. Organic revenue growth was also 5%. The largest contribution to organic growth came from the U.S., Brazil, France and Belgium. In the Netherlands, a gradual The Gradual (Latin: graduale, sometimes called the Grail) is a chant in the extraordinary form of the Roman Catholic Mass, sung after the reading or singing of the Epistle and before the Alleluia, or, during penitential seasons, before the Tract. market improvement was noticeable. Despite this, gross revenue declined as a result of divestments and following the strong decline in infrastructure in 2004. Market improvement drove backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. up by 22%. In 2005 and 2004 EBITA was affected by non-recurring items. This includes book gains from the sale of activities, the restructuring charge restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. in the Netherlands in 2004, as well as changes in Dutch pension plans. These effects are further explained in an attachment to this release. This results in the following overview: Amounts in millions 2005 2004 --------------------------------------------------------------------- EBITA EUR 60.4 EUR 35.9 Non-recurring effects EUR 3.1 -/- EUR 3.2 EBITA recurring EUR 57.3 EUR 39.1 --------------------------------------------------------------------- EBITA rose 68%, or 47% on a recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. basis. The currency effect was 3% and mostly the result of an increase in the Brazilian Reais. The contribution from acquisitions and divestments was 24%, and the organic growth 20%. The improvement in EBITA was seen across most of our activities. At the introduction of our new strategy in mid- mid- pref. Middle: midbrain. 2000, a margin goal of 8% (EBITA as % of net revenue) was introduced. In 2005, this goal was reached for the first time, as margins (on a recurring basis) rose from 6.2% in 2004 to 8.2% in 2005, an improvement of more than 30%. This resulted from acquisitions and divestments, the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). in the Netherlands in 2004 and higher utilization utilization, n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be rates, combined with favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions. In facilities, the transition to activities with higher added value yielded the largest increase. Here, the margin rose to 7.7% compared to 1.4% in 2004. Both other service areas also saw margin improvements; infrastructure to 7.6% (2004: 6.7%) and environment to 9.7% (2004: 9.3%). The 33.0% tax rate was slightly higher than the 32.4% in 2004. The contribution from non-consolidated companies declined as a result of the completion of a number of energy-sector contracts in Brazil. Meanwhile, a new contract for one of the projects was signed, contributing to fourth quarter 2005 profits. Minority interest was sharply higher, resulting from a strong profit increase in Brazil, where ARCADIS has a 50.01% ownership. Cash flow, investments and balance sheet Cash flow from operational activities was almost EUR 67 million (2004: EUR 45 million). This high level was achieved in part as a result of a further decrease in working capital. After subtracting replacement investments of EUR 15 million, free cash flow totaled almost EUR 52 million. The expansion of the company through acquisitions was coupled with considerable investments amounting to EUR 121 million. Net of cash this was EUR 102 million, including EUR 27 million for a possible performance based after payment to AYH and the retention of part of the purchase price of BBL related to warranties warranties, n.pl the details of a contract; considered less important than the conditions. Whereas the penalty for breach of conditions is the termination of the contract, the penalty for breach of warranties is payment of damages to the innocent party. . Goodwill amounted to EUR 61 million, while the value of identifiable intangible fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → was EUR 11 million. Divestments of companies yielded EUR 15 million (net of cash EUR 8.5 million) of which EUR 2.5 million is related to book gains. The balance sheet was strongly influenced in 2005 by acquisitions completed during the year. The balance sheet total rose from EUR 438 million at year-end 2004 to EUR 650 million at year-end 2005. While net debt at year-end 2005 rose to more than EUR 52 million (2004: + EUR 5.8 million), balance sheet ratios remained strong. Net debt against EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was 0.6 (2004: - 0.1) and the interest coverage ratio was 17 (2004: 10). Developments per service area The figures mentioned below relate to gross revenue developments and, unless otherwise noted, discuss comparisons between the full year 2005 and 2004. --Infrastructure Growth amounted to 5%. On balance, the effect of acquisitions and divestments was zero; the currency effect was 2%. The organic increase of activities was 3% resulting from a strong expansion in Brazil and continued growth in the United States, France and Belgium. In the Netherlands gross revenue declined by 4%, but the market recovered as a result of increased investment in rail improvement, a pick up of the municipal market and an increase in public private partnership initiatives. The German market remained weak, and Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. also saw a decline. --Environment At 33%, growth in environment was by far the strongest. The acquisitions in the United States market contributed 22% to the increase. The currency effect was 1% and organic growth 10%. In the United States, organic gross revenue growth was 14%. Here, almost $ 60 million in new GRiP(R) contracts were won, especially for industrial clients. Backlog for GRiP(R) stood at $ 250 million at year-end 2005. Organic growth was also solid in almost all European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. countries and in Brazil. --Facilities Gross revenue rose 9%. Through the sale of detailed engineering in the United States and the acquisition of AYH, the portfolio was considerably improved. On balance the revenue effect of the sale and acquisition of activities was 2%. At 7%, organic growth was at a good level. Almost all countries contributed to this increase. In the fourth quarter, an important facility management contract was won in the Netherlands. It is a four-year contract for DSM 1. DSM - Data Structure Manager. An object-oriented language by J.E. Rumbaugh and M.E. Loomis of GE, similar to C++. It is used in implementation of CAD/CAE software. DSM is written in DSM and C and produces C as output. and Sabic. Outlook It is expected that the Dutch market will continue its gradual improvement. The improving economy may lead to the release of more funds for maintenance and renewal of rail infrastructure, while Public Private Partnership initiatives will also lead to more work. In Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , market
conditions in France and Belgium are favorable. In Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. an
increase in investments is expected, stimulated stim·u·late v. stim·u·lat·ed, stim·u·lat·ing, stim·u·lates v.tr. 1. To rouse to activity or heightened action, as by spurring or goading; excite. See Synonyms at provoke. 2. by European Union European Union (EU), name given since the ratification (Nov., 1993) of the Treaty of European Union, or Maastricht Treaty, to the European Community Funds. In the United States, the federal investment program SAFETEA SAFETEA Safe, Accountable, Flexible and Efficient Transportation Equity Act has a positive effect on the market. The high level of investments in Brazil leads to a lot of work. In environment, the good backlog from long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. GRiP(R) contracts provides a solid basis for further growth in the United States. In Europe and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , the emphasis will be on the expansion of services to industry. BBL client's, many of which are multinationals from the Fortune 100, offer good prospects. The transition to higher value added Value Added The enhancement a company gives its product or service before offering the product to customers. Notes: This can either increase the products price or value. services has considerably increased the growth potential in facilities. Increasing investments offer opportunities for project management in schools, hospitals and in commercial real estate. In addition, the new facility management contracts will also contribute to growth in 2006. CEO Harrie Noy concludes: "The outlook for 2006 is positive. Market conditions are favorable and with the recent acquisitions we are in an even better position to benefit. Our policy is aimed at achieving growth through synergy The enhanced result of two or more people, groups or organizations working together. In other words, one and one equals three! It comes from the Greek "synergia," which means joint work and cooperative action. from strong local market positions. In doing so, we will focus on services to multinational multinational Of, relating to, or being a company with subsidiaries or other operations in a number of countries. The diversity of operations of such companies subjects them to unique risks (for example, exchange rate changes or government nationalization) companies and in soil remediation, rail infrastructure, bridges and tunnels The following are lists of tunnels:
2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , we expect continued growth in gross revenue and income in 2006." ARCADIS is an international company providing consultancy, engineering and management services in infrastructure, environment and facilities, to enhance mobility, sustainability and quality of life. ARCADIS develops, designs, implements, maintains and operates projects for companies and governments. With more than 10,000 employees and over EUR 1 billion in gross revenue, the company has an extensive international network that is supported by strong local market positions. For more information contact: Joost A peer-to-peer TV (P2P TV) system for streaming video over the Internet, developed by Skype and Kazaa founders Niklas Zennstrom and Janus Friis. Pronounced "juiced," with its name having no particular meaning in Scandinavian countries (like Haagen Dazs), Joost introduced beta clients for Slooten of ARCADIS at +31-26-3778604 or j.slooten@arcadis.nl. Please visit our website at www.arcadis-global.com. Except for historical information contained herein, the statements in this release are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with possible changes in environmental legislation and risks with regard to the Company's ability to acquire and execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution projects. These are other risks are described in ARCADIS' filings with the Securities and Exchange Commission over the last 12 months, copies of which will be available from the SEC or may be obtained upon request from the Company.
ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN EUR
Amounts in millions unless Fourth Fourth
otherwise noted quarter quarter Full year Full year
2005 2004 2005 2004
------------------------------------
Gross revenue 308.8 249.0 1,001.1 900.8
Materials, services of third
parties 100.5 86.0 297.8 268.3
------- -------- --------- --------
Net revenue 208.3 163.0 703.3 632.5
Operational cost 182.6 146.1 627.7 581.0
Depreciation 3.8 3.8 15.2 15.6
------- -------- --------- --------
EBITA 21.9 13.1 60.4 35.9
Amortization identifiable
intangible assets 4.0 0.3 6.0 0.4
------- -------- --------- --------
Operating income 17.9 12.8 54.4 35.5
Financing income/expenses net 0.5 (0.8) (1.8) (3.4)
------- -------- --------- --------
Income before taxes 18.4 12.0 52.6 32.1
Taxes (5.6) (4.4) (17.4) (10.4)
------- -------- --------- --------
Income after taxes 12.8 7.6 35.2 21.7
Income non-consolidated
companies 1.2 0.4 1.4 2.4
------- -------- --------- --------
Group income after taxes 14.0 8.0 36.6 24.1
Minority interest (1.4) (0.6) (3.2) (1.9)
------- -------- --------- --------
Net income 12.6 7.4 33.4 22.2
Amortization identifiable
intangible assets 2.0 0.3 4.1 0.4
Effects of financial instruments (1.2) - (1.2) -
Change in tax percentage - 0.5 - 0.5
Non-recurring effects (0.8) (0.2) (2.9) 0.7
------- -------- --------- --------
Net income from operations 12.6 8.0 33.4 23.8
Net income per share (in euros) 0.62 0.36 1.65 1.10
Net income per share Diluted 0.60 0.36 1.60 1.08
Net income from operations per
share 0.62 0.39 1.65 1.18
Net income from operations per
share Diluted 0.60 0.39 1.60 1.16
Number of shares outstanding
(thousands) 20,260 20,257 20,261 20,140
Net income per share is based on the weighted average number of
outstanding shares.
ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN US$
----------------------------------------------------------------------
Amounts in millions unless Fourth Fourth
otherwise noted quarter quarter Full year Full year
2005 2004 2005 2004
-----------------------------------
Gross revenue 366.9 322.6 1,241.3 1,120.9
Materials, services of third
parties 119.5 111.4 368.3 334.5
-------- ----------------- --------
Net revenue 247.4 211.2 873.0 786.4
Operational cost 217.0 189.4 779.6 722.2
Depreciation 4.4 4.9 18.9 19.4
-------- ----------------- --------
EBITA 26.0 16.9 74.5 44.8
Amortization identifiable
intangible assets 4.7 0.4 7.2 0.5
-------- ------- --------- --------
Operating income 21.3 16.5 67.3 44.3
Financing income/expenses net 0.5 (1.1) (2.4) (4.3)
-------- ------- --------- --------
Income before taxes 21.8 15.4 64.9 40.0
Taxes (6.7) (5.6) (21.5) (13.0)
-------- ------- --------- --------
Income after taxes 15.1 9.8 43.4 27.0
Income non-consolidated companies 1.4 0.5 1.7 3.0
-------- ------- --------- --------
Group income after taxes 16.5 10.3 45.1 30.0
Minority interest (1.6) (0.7) (3.9) (2.3)
-------- ------- --------- --------
Net income 14.9 9.6 41.2 27.7
Amortization identifiable
intangible assets 2.4 0.4 4.9 0.5
Effects of financial instruments (1.4) - (1.4) -
Change in tax percentage - 0.7 - 0.7
Non-recurring effects (0.8) (0.4) (3.5) 0.8
-------- ------- --------- --------
Net income from operations 15.1 10.3 41.2 29.7
Net income per share (in dollars) 0.74 0.47 2.04 1.37
Net income per share Diluted 0.72 0.47 1.98 1.35
Net income from operations per
share 0.74 0.51 2.03 1.47
Net income from operations per
share Diluted 0.72 0.50 1.98 1.45
Number of shares outstanding
(thousands) 20,260 20,257 20,261 20,140
Exchange rate 1st quarter EUR 1= $1.31 $1.25
Exchange rate 2nd quarter EUR 1= $1.26 $1.20
Exchange rate 3rd quarter EUR 1= $1.22 $1.22
Exchange rate 4th quarter EUR 1= $1.19 $1.30
Net income per share is based on the weighted average number of
outstanding shares.
ARCADIS NV
CONDENSED CONSOLIDATED BALANCE SHEET IN EUR
----------------------------------------------------------------------
Amounts in millions
December 31, 2005 December 31, 2004 **)
ASSETS
----------------------------------------
Non-current assets *) 217.1 122.3
Current assets 433.0 320.0
----------------------------------------
TOTAL 650.1 442.3
========================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities 303.8 244.4
Long term debt 116.1 13.0
Provisions 42.1 39.5
Total equity 188.1 145.4
----------------------------------------
TOTAL 650.1 442.3
========================================
*) Including capitalized
goodwill 116.0 49.9
**) Adjusted for comparison
purposes
CHANGES IN SHAREHOLDERS' EQUITY IN EUR
Full year 2005 Full year 2004
----------------------------------------
Shareholders' equity at
January 1 136.4 125.0
Changes:
Net income current period 33.4 22.2
Additional paid-in capital 6.5 -
Expenses granted options
including taxes 3.5 0.2
Options exercized 2.6 2.4
Dividend payment (9.7) (9.6)
Purchase own stock (6.6) (0.2)
Exchange rate differences 10.0 (3.6)
Other changes 0.1 -
----------------------------------------
Shareholders' equity at
balance sheet date 176.2 136.4
========================================
ARCADIS NV
CONDENSED CONSOLIDATED BALANCE SHEET IN US$
----------------------------------------------------------------------
Amounts in millions December 31, 2005 December 31, 2004 **)
ASSETS
----------------------------------------
Non-current assets *) 256.2 166.6
Current assets 510.8 435.9
----------------------------------------
TOTAL 767.0 602.5
========================================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities 358.4 333.0
Long term debt 137.0 17.7
Provisions 49.7 53.8
Total equity 221.9 198.0
----------------------------------------
TOTAL 767.0 602.5
========================================
*) Including capitalized
goodwill 136.8 68.0
Calculated with US dollar rate
of EUR 1.00 = US$: 1.18 1.36
**) Adjusted for comparison
purposes
CHANGES IN SHAREHOLDERS' EQUITY IN US$
Full year 2005 Full year 2004
----------------------------------------
Shareholders' equity at
January 1 185.8 157.9
Changes:
Net income current period 41.2 27.7
Additional paid-in capital 7.7 -
Expenses granted options
including taxes 4.1 0.2
Options exercized 3.1 3.3
Dividend payment (11.4) (11.7)
Purchase own stock (7.7) (0.2)
Exchange rate differences (15.0) 8.6
Other changes 0.1 -
----------------------------------------
Shareholders' equity at
balance sheet date 207.9 185.8
========================================
ARCADIS NV
CONDENSED CONSOLIDATED CASH FLOW STATEMENT in EUR
----------------------------------------------------------------------
Amounts in millions Full year 2005 Full year 2004
Net income 33.4 22.2
Depreciation and amortization 21.2 16.0
--------------- --------------
Gross cash flow 54.6 38.2
Net working capital 11.6 7.9
Other changes 0.6 (1.3)
--------------- --------------
Total operational cash flow 66.8 44.8
Investments/divestments (net) in:
(In)tangible fixed assets (14.9) (11.8)
Acquisitions/divestments (66.5) (6.8)
Non-current assets (3.7) (1.2)
--------------- --------------
Total cash flow concerning investing
activities (85.1) (19.8)
Total financing activities 44.0 (8.1)
--------------- --------------
Change in cash and equivalents 25.7 16.9
Cash at January 1 48.2 31.3
--------------- --------------
Cash at balance sheet date 73.9 48.2
CONDENSED CONSOLIDATED CASH FLOW STATEMENT in US$
----------------------------------------------------------------------
Amounts in millions Full year 2005 Full year 2004
Net income 41.2 27.7
Depreciation and amortization 26.2 19.9
--------------- --------------
Gross cash flow 67.4 47.6
Net working capital 12.1 10.7
Other changes 0.7 (1.8)
--------------- --------------
Total operational cash flow 80.2 56.5
Investments/divestments (net) in:
(In)tangible fixed assets (17.6) (16.0)
Acquisitions/divestments (78.5) (9.2)
Non-current assets (4.3) (1.7)
--------------- --------------
Total cash flow concerning investing
activities (100.4) (26.9)
Total financing activities 50.5 (6.4)
--------------- --------------
Change in cash and equivalents 30.3 23.2
Cash at January 1 65.7 39.5
Conversion difference January 1 amount (8.8) 3.0
--------------- --------------
Cash at balance sheet date 87.2 65.7
ATTACHMENT TO THE PRESS RELEASE
ANNUAL RESULTS 2005 OF ARCADIS NV
Non-recurring income effects
In 2005 and 2004, the following non-recurring items affected income:
Amounts in millions 2005 2004
EBITA Net income EBITA Net income
----------------------------------------------------------------------
Book gain from +EUR 2.5 +EUR 2.5 + EUR 4.0 + EUR 4.0
divestments
Restructuring charge - EUR 8.4 - EUR 5.4
Pensions +EUR 0.6 +EUR 0.4 + EUR 1.2 + EUR 0.7
Non-recurring effect +EUR 3.1 +EUR 2.9 - EUR 3.2 - EUR 0.7
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In 2004, a number of non-core activities were sold in the Netherlands, and a restructuring charge was taken to adjust the organization to market changes. The 2005 book gain is the result of a number of divestments; particularly the sale of our 50% share in Grupo EP. Pensions Per January January: see month. 1, 2004, the pension plan for Dutch employees, excluding employees of PRC, was changed into a pension plan that is classified as a defined contribution plan Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan . This means that, except for the pension premium, this plan does not affect ARCADIS' results and balance sheet. The introduction of new legislation on January 1, 2006 however will impact the early retirement plan. The Lovinklaan Foundation, which - as a major ARCADIS shareholder - acts in the interest of employees, pledged pledge n. 1. A solemn binding promise to do, give, or refrain from doing something: signed a pledge never to reveal the secret; a pledge of money to a charity. 2. a. funding to correct this impact. The required (non-recurring) donation donation n. gift. If made to a qualified non-profit charitable, religious, educational or public service organization, it may be deductible as a contribution in calculating income tax. DONATION, contracts. of EUR 9.5 million to the pension fund was charged against 2005 income. Thanks to the EUR 6.5 million capital contribution by the Lovinklaan Foundation, the effect (after taxes) on ARCADIS equity was zero. Employees of PRC, which was acquired in 2003, until recently had a pension plan that under IFRS was classified as a defined benefit pension plan. In the transition from NL GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). to IFRS a provision was recorded in the 2004 opening balance sheet, which was charged directly to equity. In the 2004 IFRS income statement a benefit of EUR 1.2 million was recorded regarding this pension plan. This is noted in the table above as a non-recurring effect. By the end of 2005 the defined benefit pension plan was changed into a defined contribution pension plan. This required a one time additional donation to the pension fund of EUR 2.3 million. The provision ad EUR 13.1 million recorded as of December December: see month. 31, 2004 for the defined benefit pension plan, was released to the income statement in 2005. The preceding had the following effects on EBITA in 2005: Amounts in millions Effect --------------------------------------------------------------------- Release of PRC provision EUR 13.1 Extra donation to PRC pension fund - EUR 2.3 Extra donation to ARCADIS pension fund - EUR 9.5 Other non-recurring pension charges - EUR 0.7 Non-recurring effect in 2005 EUR 0.6 --------------------------------------------------------------------- Geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. distribution As of 2005, the geographic distribution of revenue has been altered slightly. The activities in North and South America were separated into two segments: the United States has become its own segment, while South America was added to the Rest of world segment. Strong expansion through acquisitions and relatively high organic growth are driving the increase in the U.S. percentage of total Company sales. In 2005, 35% of the gross revenue was generated in the United States (2004: 30%); the Netherlands contributed 29% (2004: 33%); Other European Countries, 26% (2004: 28%) and Rest of world, 10% (2004: 9%). The 2005 fourth quarter is indicative indicative: see mood. of the effect recent acquisitions have on annual revenue distribution. In the 2005 fourth quarter, the United States contributed 41% of the gross revenue; the Netherlands, 26%; Other European Countries, 24% and Rest of world, 9%. Approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 50% of ARCADIS sales are generated in Europe with the other 50% from the United States and Rest of world. EBITA per region The recurring EBITA per region is as follows: Amounts in millions 2005 2004 %Change ---------------------------------------------------------------------- United States EUR 20.9 EUR 13.2 58% Netherlands EUR 12.5 EUR 11.1 13% Other European Countries EUR 18.1 EUR 12.5 45% Rest of the world EUR 5.8 EUR 2.4 145% ---------------------------------------------------------------------- |
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