Arcadis NV — Interim / Quarterly Report 2018

Apr 19, 2018

FIRST QUARTER 2018

TRADING UPDATE

Amsterdam, 19 April 2018

IMPROVING QUALITY OF LIFE

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.

Arcadis continues organic net revenue growth of 3%

• Net revenues at €599 million (Q1 2017: €628 million); organically +3%, currency impact -8%
• Operating EBITA of €43 million (Q1 2017: €47 million), currency impact -6%
• Operating margin at 7.2% (Q1 2017: 7.4%); impacted by fewer working days in Europe and a decline in other segments, offset by margin improvement in the Americas
• Net working capital improved to 19.5% (Q1 2017: 19.9%)
• Net debt at €474 million (Q1 2017: €556 million)
• Good progress in market consultation process for CallisonRTKL
• Plan for divestment of clean energy assets in Brazil is on track
• Sarah Kuijlaars nominated as new CFO; subject to appointment at AGM (24 April '18)
• Confirms revenue growth and improved operating margin in 2018

In €millions	Q1 2018	Q1 2017	Change
Gross revenues	767	818	-6%
Net revenues	599	628	-5%
Organic growth	3%	-1%
EBITDA	47	52	-10%
EBITA	37	42	-12%
EBITA margin	6.2%	6.7%
Operating EBITA1)	43	47	-8%
Operating EBITA margin	7.2%	7.4%
Net working capital %	19.5%	19.9%
Free cash flow	-60	-63	-4%
Net debt	474	556	-15%
Backlog net revenues (billion)	2.1	2.3	-8%
Backlog organic growth year-to-date	2%	5%

1) restructuring, acquisitions & divestments costs

REVENUE AND OPERATING EBITA

Operating EBITA (margin)

• Overall net revenues increased organically by 3%
• North America, Continental Europe, the UK, and Australia delivered good organic net revenue growth in the quarter. Revenues in Asia were nearly flat. Net revenues declined in Latin America, the Middle East and for CallisonRTKL
• The currency effect was -8%, mainly due to a weaker US Dollar
• Operating EBITA decreased by 8% to €43 million (Q1 2017: €47 million), negatively impacted by currency effects (-6%)
• Operating margin was 7.2% (Q1 2017: 7.4%)
• Fewer working days in Europe, selective bidding in Middle East and project write-downs in Asia were almost offset by margin improvement in the Americas
• Latin America achieved break-even results, continuing a positive trend

REDUCTION WORKING CAPITAL AND DSO REMAINS PRIORITY

Working capital

€ millions & as % of gross revenues

• Net working capital as a percentage of gross revenues improved to 19.5% (Q1 2017: 19.9%)
• Days of sales outstanding decreased to 94 days (Q1 2017: 96 days)
• In Q1 2018 Arcadis collected €6 million on overdue receivables in KSA

DSO

number of days

FIRST QUARTER SEGMENT RESULTS

Net revenues first quarter	2018	2017	Organic growth	Q1 performance
Americas	177	196	2%	• North America organic growth of 3%; from improved performance water and continued solid results other businesses • Organic decline of 3% for Latin America
Europe & Middle East	292	288	4%	• Organic growth in the UK of 14% driven by large infrastructure projects. Organic growth Continental Europe at 3% • Middle East organic decline of 11% driven by selective bidding
Asia Pacific	80	83	7%	• Asia organic growth flat, growth across the region offset by project write-downs • Organic growth Australia of 21% from ramp up large metro projects
CallisonRTKL	50	60	-7%	• Organic decline of 7% driven by lower activity levels in the retail, workplace and healthcare practices. The results in the commercial business improved
Total	599	628	3%

• Deliver financial objectives as per the strategic framework 2018-2020
• Select projects, businesses and geographies where we can lead
• Improve project delivery
• Continue to invest in people and culture to build the workforce of the future
• Innovate to become a digital frontrunner in the industry
• Contribute significantly to the United Nations Sustainable Development Goals
• Conclude the strategic review process of CallisonRTKL
• Initiate the divestment of all clean energy assets in the second half of 2018

Arcadis. Improving quality of life.