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Arcadis NV Earnings Release 2021
3811_iss_2021-04-20_6b8ee116-df30-4bb4-b035-059095149338.pdf
Earnings Release
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Strong first quarter results and continued good order intake
20 April 2021 Arcadis Q1 2021 Trading Update
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 there to) 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.
Part 1
Q1 2021 Trading Update – key messages
Peter Oosterveer | Chief Executive Officer
A campus for innovation, interaction and sustainable growth
Project THE HUB, Emden Client City Of Emden, Germany Services Consultancy
Strong first quarter results and continued good order intake
- Strong order intake from public and private clients, increased demand driven by:
- Large infrastructure investments
- Clients' focus on carbon reduction and climate change mitigation
- Net revenue of € 632 million, organic growth 0.5% and FX impact of -4.5%
- Operating margin improvement driven by North America, the UK and recovery China
- Strong balance sheet and backlog growth, positions us well for 2021 and beyond
9.2% Operating EBITA margin
Well positioned for client demands
Strong order intake from key clients
3%million Organic backlog growth
Remediation of defense sites US Army Corps of Engineers
Climate protection through groundwater management Water Management Office Ingolstadt, Germany
Set up laboratories across UK hospitals Roche
Reduce congestion & travelling times Depts. of Transportation: Alabama, Louisiana, Georgia
Supporting clients across multiple phases of their asset lifecycle
Client West Kowloon Cultural District Authority, Hong Kong Services Project & Cost management
Operating margin and free cash flow improved
Return to organic revenue growth
Net Working Capital
EUR millions, %
Operating EBITA (margin) € millions, %
Days Sales Outstanding Days
Revenue growth in Infrastructure, Water & Environment
| Net Revenue | Δ | |||||
|---|---|---|---|---|---|---|
| € millions | Q1'21 | Q1'20 | Total | Organic | FX | |
| Americas | €209M | €226M | -7% | 3% | -10% | |
| North America | ||||||
| South America | ||||||
| Europe & ME | €306M | €302M | 1% | 3% | -2% | |
| Continental Europe | ||||||
| UK | ||||||
| Middle East | ||||||
| APAC | €77M | €79M | -3% | -4% | 2% | |
| Asia | ||||||
| Australia | ||||||
| CallisonRTKL | €39M | €51M | -23% | -18% | -5% | |
| Total | €632M | €658M | -4.0% | 0.5% | -4.5% |
- Growth in Infrastructure and Water, compensated for decline in Environment
- Revenue growth driven by infrastructure work in Brazil
- Lower revenue in the Netherlands, growth in other countries
- Strong growth in Infrastructure, Water and Environment
- Decline in revenues driven by our decision to reduce footprint
- Growth in China, other countries continue to face impact COVID-19
- Temporary decline due to delay in awarding new projects in 2020
- Revenue in line with Q4'20, like-for-like impact of COVID-19 mainly in Retail
Services Design & Engineering Design a new and sustainable wastewater system: ensuring clean water for 300,000 inhabitants
Client Rijnland Water Board, The Netherlands
Maximizing Impact: Strategy 2021-2023
Summary
- A good start of the year
- On track to organic growth
- Strong economic fundamentals
- Strong balance sheet and backlog position
- Investments in strategic priorities
- Maximize value for all stakeholders
