Brunel International N.V.

Earnings Release • Sep 6, 2012

Press Release

Continued growth across the globe Revenue Q2 2012 up by 40% , Ebit Q2 2012 up by 31%

Amsterdam, 17 August 2012

Key points Q2 2012

• Revenue up 40% to € 303 million and gross profit up by 21% to € 53 million
• Gross margin at 17.4%, down from 20% as a result of changed revenue mix and fewer working days
• Operational costs continue to decrease as percentage of revenue
• One-off costs in respect of prior year operational taxes included in Ebit of € 0.9 million
• Ebit up 31% to € 16 million

	Brunel International
(unaudited)

in € million	Q2 2012	Q2 2011	Change %	H1 2012	H1 2011	Change %
Revenue	303.4	217.3	40%	593.8	444.7	34%
Gross Profit	52.7	43.5	21%	110.1	89.9	22%
Gross margin	17.4%	20.0%		18.5%	20.2%
Ebit	15.6	11.9	31%	38.0	27.7	37%
Ebit %	5.1%	5.4%		6.4%	6.2%

Q2 2012 results

Revenue

Brunel realised Q2 revenue of € 303 million, an increase of 40% compared to 2011. The majority of this increase is generated by the revenue increase of Oil & Gas (+57%) as a result of increased offshore projects revenue in Australia. Traditional Energy business increased its revenue by 19% as well.

Despite the volatile economic development in Europe we have been able to grow in most segments we are active in. Both in Germany (+19%) as well as in The Netherlands (+3%) we were able to continue revenue growth.

Due to varying growth rates, the revenue mix has changed. The share of the Energy revenue in the total revenue has increased from 62% in Q2 2011 to 70% this year. As a result of the weakening Euro against especially the American and Australian dollar 7% of the revenue increase in H1 is attributable to currency fluctuations.

Gross Profit

Q2 2012 gross profit amounts to € 53 million, an increase of 21% compared to 2011. The gross margin is 17.4% which is down 2.6 ppt compared to last year. The decrease in gross margin is largely caused by the increased share of Energy revenue and to a lesser extent by 1 working day less in Q2 2012 versus Q2 2011.

Operating Costs

The Q2 operating costs amount to € 37 million, up 17% compared to Q2 2011.The increase is mainly attributable to the increased number of commercial, recruitment and business support employees in the operating entities.

One-off costs

In Q2 2012 one-off costs in respect of prior years operational tax adjustments have been incurred amounting to € 1.5 million. The effect on Ebit amounts to € 0.9 million and € 0.6 million relates to interest expense.

EBIT

Q2 EBIT increased by 31% to € 16 million.

Jan Arie van Barneveld, CEO of Brunel International: "I am pleased to note that all our divisions continue to excel in uncertain economic conditions. Positive developments in the Australian offshore projects were expected but have again exceeded our expectations. The traditional Energy business is clearly benefitting from the increased investment activities in the Oil & Gas industry and further revenue growth was realised by all regions we operate in. In Europe we also realised growth, despite economic headwind, primarily due to our strong commercial organisation that achieved growth both with existing as well as new customers."

Q2 2012 results by division

Brunel Netherlands
in € million	Q2 2012	Q2 2011	Change %	H1 2012	H1 2011	Change %
Revenue	40.0	38.7	3%	82.6	76.5	8%
Gross Profit	12.8	12.6	1%	27.6	25.3	9%
Gross margin	31.9%	32.6%		33.5%	33.0%
Ebit	3.9	3.5	12%	10.0	7.5	33%
Ebit %	9.7%	9.0%		12.1%	9.8%

Revenue

Revenue in Q2 2012 has benefited from the increase in direct headcount (+8%) but, due to a small decrease on the average rates and the fact that this year's Q2 had one workable day less, the actual revenue increase in Q2 2011 is limited to +3%. Revenue H1 2012 is up 8% compared to H1 2011. The increase in the number of direct employees has largely been realised by Engineering and in the segment Insurance & Banking. The market conditions in IT remain challenging.

Gross profit

Year-on-year Q2 gross profit increased by 1%, which is slightly less than the increase in revenue. The slightly lower gross margin is directly related to the lower (-1) number of workable days in Q2 2012 compared to Q2 2011. The earlier mentioned lower rates are not effecting the gross margin due to an equal decline of new fee earners salary levels.

Operational Costs

The operational costs in Q2 2012 of € 9 million are of the same level as in Q1 2012 and slightly lower versus Q2 2011. Operational costs as a percentage of revenue decreased from 24% in Q2 2011 to 22% in Q2 this year.

EBIT

As a result of the small increase in gross profit and lower overhead costs the Ebit in Q2 2012 is up 12% compared to the same period in 2011.

Brunel Germany

in € million	Q2 2012	Q2 2011	Change %	H1 2012	H1 2011	Change %
Revenue	43.5	36.5	19%	87.5	71.9	22%
Gross Profit	14.6	13.1	11%	32.1	27.3	18%
Gross margin	33.6%	35.8%		36.7%	38.0%
Ebit	3.6	3.9	-8%	10.7	9.4	14%
Ebit %	8.3%	10.7%		12.2%	13.1%

Revenue

In Q2 2012 Brunel Germany increased its revenue compared to the same period in 2011, both in the quarter (+19%) as well as for H1 (+22%). This increase is fully attributable to the increase in the average number of direct employees. The number of fee earning employees continued to grow. Direct headcount increased from 1,896 at the end of Q1 to 2,036 at the end of the second quarter of this year. The largest contributing sectors are the Automotive and Mechanical engineering segments which attributed 70% of the growth in the first half of this year. Growth is realised by almost all of our branches and in addition further growth in our customer base has been realised, providing an excellent position for the future.

Gross Profit

The gross profit increase in Q2 2012, compared to last year, is 11% which is slightly less than the revenue increase. The main reason is that Q2 2012 has one less working day less compared to the same period in 2011.

Operational Costs

Q2 2012 operational costs are up 20% in comparison to the same period last year. This increase is fully attributable to the costs related to the increase of the commercial organisation. The average number of indirect staff in H1 2012 is up 24% compared to H1 2011.

EBIT

EBIT in Q2 2012 is 8% less than realised in 2011 as a result of the lower margin, caused by 1 less working day and the increased overhead costs. When corrected for the impact of the one less working day effect, the Ebit increase amounts to +13%.

H1 2012 EBIT is up 14% compared to the same period last year.

in € million
	Q2 2012	Q2 2011	Change %	H1 2012	H1 2011	Change %
Revenue	8.3	7.7	8%	16.5	14.9	10%
Gross Profit	1.7	1.7	2%	3.7	3.4	10%
Gross margin	20.6%	21.9%		22.8%	22.4%
Ebit	-0.2	0.0		-0.1	0.0
Ebit %	-0.2%	0%		4.0%	0%

Brunel Europe Other (Belgium, Austria, Poland and Denmark )

Revenue

Brunel Belgium and Brunel Austria are the main revenue contributors to Europe Other and account for over 90% of the Q1 and H1 revenue. The market conditions in Belgium remain difficult, especially in the banking segment where a large share of its business is generated. Both Q2 and H1 2012 revenue are down 5% compared to the same periods in 2011.

Brunel Austria develops well with a H1 revenue increase of 65% compared to last year. A new office has been opened in Zurich, Switzerland, and we expect first placement of fee earners in Q3 2012.

Gross profit

Gross profit in Q2 is almost equal to last year also influenced by 1 working day less this year.

Operating Costs

The operating costs are up in all entities to facilitate growth.

EBIT

In line with expectation a small loss is incurred in the first half of this year. We anticipate to reach break even level this year.

Brunel Oil & Gas

in € million	Q2 2012	Q2 2011	Change %	H1 2012	H1 2011	Change %
Revenue	212.0	134.9	57%	407.8	282.1	45%
Gross Profit	23.6	16.2	46%	46.6	34.0	37%
Gross margin	11.1%	12.0%		11.4%	12.1%
Ebit	10.5	5.3	97%	21.0	12.0	75%
Ebit %	4.9%	3.9%		5.1%	4.2%

Revenue

Brunel Oil & Gas realised a revenue of € 212 million in Q2 2012, the division's highest ever quarterly revenue.

Compared to the Q2 2011 revenue in Q2 2012 increased by € 77 million or 57%. The main developments driving this growth are the increased project revenue on the large offshore projects in Australia and continued growth in the regions South East Asia and the America's. Currency effect accounts for some € 15 million (+11%) of the increase.

The main projects driving the offshore revenue in the first half of this year are Kipper Tuna, Gorgon, North Rankin Bay (NRB), Montara and Domgas. The Montara project as well as the NRB project have been completed in the second quarter of this year. The total revenue generated from these projects in H1 2012 amount to € 131 million.

Gross profit

Gross profit increased in line with revenue growth by 46%. Gross margins achieved in both the Energy segment as well as with the Offshore projects are up compared to 2011 but total gross margin is slightly down resulting from the increased proportion of the offshore project revenue.

Operational Costs

Operational expenses amounted to € 13 million in Q2 which is 20% up compared to the same period last year. This increase is explained by the earlier mentioned one-off tax claim but also for some € 0.5 million by the establishment of the Global recruitment Centre in Manchester as well as a currency effect of € 0.5 million.

Despite the cost increases, overhead costs as a percentage of revenue have decreased from 7% in H1 2011 to just over 6% in H1 2012.

EBIT

At € 10.5 million Q2 2012 EBIT has almost doubled the Ebit achieved in the same period last year. The increase realised, when comparing H1 2012 with H1 2011 is 75%, +€ 9 million. The EBIT margin improved both for Q2 as well as for H1 with 1 ppt to 5%.

Effective tax rate

The effective tax rate of 33.4% for H1 2012 is slightly higher than in the same period last year (32.4%) due to higher than average profitable growth in countries with high effective tax rates (e.g. USA) and higher share in results from countries with minimum tax regimes (e.g. Angola and Iraq).

Cash position

The cash position at the end of June 2012 is € 10 million higher compared with June 2011 despite the investment in working capital resulting from the higher revenue level.

Risk profile

Reference is made to our 2011 Annual Report (pages 24 – 28). Reassessment of earlier identified risks and the potential impact on occurrence has resulted in not requiring changes in our Internal Risk management and Control systems.

Outlook for 2012

We do not expect the European markets to improve this year but we remain positive that further growth for Brunel will be realised during the remainder of 2012, although at a lower pace.

As indicated earlier we do envisage for the remainder of this year a reduced activity level in the Australian offshore market with the KipperTuna project nearing completion but with the upcoming secured work for the Wheatstone and Ichthys projects and several other upcoming prospects we expect higher activity level in 2013.

Based on the current performance and the aforementioned developments we increase our expectations for the full year 2012 to a revenue increase of at least 15%.

We declare that, to the best of our knowledge, the semi-annual financial statements, which have been prepared in accordance with IFRS (IAS 34), give a true and fair view of the assets, liabilities, financial position and profit or loss of Brunel International N.V., and the undertakings included in the consolidation as a whole, and the semi-annual management report includes a fair review of the information required pursuant to section 5:25d, subsections 8 and 9 of the Dutch Financial Markets Supervision Act (Wet op het financieel toezicht).

Interview with J.A. van Barneveld on the website

A recorded interview in which Jan Arie van Barneveld provides comments in relation to this press release is available on www.brunel.net.

Not for publication
For further information:	--------------------------------------------------------------------------------------------------------------------------------
Jan Arie van Barneveld	CEO Brunel International	tel.: +31(0)20 312 50 81
Rob van der Hoek	CFO Brunel International	tel.: +31(0)20 312 50 81

Brunel International N.V. is an international service provider specialising in the flexible deployment of knowledge and capacity in the fields of Engineering, Oil & Gas, Aerospace, Automotive, ICT, Finance, Legal and Insurance & Banking. Services are provided in the form of Project Management, Secondment and Consultancy. Incorporated in 1975, Brunel has since become a global company with some 10,000 employees and an annual revenue of € 980 million (2011). The company is listed at Euronext Amsterdam N.V. For more information on Brunel International visit our website www.brunel.net.

Financial Calendar

November 2, 2012 Trading update for the third quarter 2012

Certain statements in this document concern prognoses about the future financial condition and the results of operations of Brunel International NV as well as plans and objectives. Obviously, such prognoses involve risks and a degree of uncertainty since they concern future events and depend on circumstances that will apply then. Many factors may contribute to the actual results and developments differing from the prognoses made in this document. These factors include general economic conditions, a shortage on the job market, changes in the demand for (flexible) personnel, changes in employment legislation, future currency and interest fluctuations, future takeovers, acquisitions and disposals and the rate of technological developments. These prognoses therefore apply only on the date on which the document was compiled.

Appendix to the press release 17 August 2012 Interim figures 1st half 2012

Financial Highlights for the period ended 30 June (unaudited)

	2012	2011	%
(X € 1,000)	H1	H1
Revenue	593,808	444,693	33.5%
Gross profit	110,103	89,932	22.4%
Operating profit (ebit)	37,954	27,652	37.3%
Result after tax	25,218	18,967	33.0%
Minority interest	-167	-105
Net income	25,051	18,862	32.8%
Gross profit as % of Revenue	18.5%	20.2%	-1.7
Net result as % of Revenue	4.2%	4.2%	0.0
Workforce
Direct employees (average)	9,412	7,843	20.0%
Indirect employees (average)	1,327	1,170	13.4%
Total	10,739	9,013	19.2%
Direct employees (period end)	9,903	8,180	21.1%
Indirect employees (period end)	1,325	1,194	11.0%
Total	11,228	9,374	19.8%
Earnings per share (in euros)
Earnings per share for ordinary shareholders	1.06	0.81
Diluted earnings per share	1.04	0.80
Weighted average number of ordinary shares
for the purpose of basic earnings per share	23,675,687	23,388,812
Weighted average number of ordinary shares

for the purpose of diluted earnings per share 24,085,437 23,600,312

Condensed consolidated income statement for the period ended 30 June (unaudited)

(X € 1,000)	2012 H1	2011 H1
Revenue Direct personnel expenses	593,808 483,705	444,693 354,761
Gross profit	110,103	89,932
Indirect personnel expenses Depreciation	47,425 1,944	39,924 1,765
Other general and administrative expenses Total operating costs	22,780 72,149	20,591 62,280
Operating profit	37,954	27,652
Financial income and expense	-92	397
Result before tax	37,862	28,049
Tax	12,644	9,082
Net income	25,218	18,967
Attributable to :
Net income for ordinary shareholders	25,051	18,862
Minority interests Net income	167 25,218	105 18,967

Condensed consolidated statement of comprehensive income for the period ended 30 June (unaudited)

(X € 1,000)	2012 H1	2011 H1
Net income	25,218	18,967
Other comprehensive income
Exchange differences arising on translation of foreign operations	4,035	-7,101
Income tax relating to components of other comprehensive income	-219	328
Other comprehensive income (net of tax)	3,816	-6,773
Total comprehensive income	29,034	12,194
Attributable to:
Ordinary shareholders	28,856	12,108
Minority interests Total comprehensive income	178 29,034	86 12,194

Condensed consolidated balance sheet (unaudited)

		2012		2011
(X € 1,000)		June 30		December 31
Fixed assets
Goodwill	7,027		7,003
Other intangible assets	10,603		8,789
Property, plant and equipment	8,757		8,719
Deferred income tax assets	7,734		5,712
		34,121		30,223
Current assets
Trade and other receivables	271,309		260,995
Income tax receivables	11,611		11,483
Cash	66,048		86,034
Total current assets	348,968		358,512
Current liabilities	120,040		135,329
Income tax payables	12,764		15,525
Total current liabilities	132,804		150,854
Working capital		216,164		207,658
Non-current liabilities
Deferred income tax liabilities		1,460		1,263
		248,825		236,618
Group equity
Shareholders' equity	248,559		236,424
Minority interest	266		194
		248,825		236,618
Balance sheet total		383,089		388,735
Other balance sheet items / key figures
Current assets / current liabilities		2.63		2.38
Shareholders' equity / Balance sheet Total		64.9%		60.8%
Issued ordinary shares (x 1,000)		23,820		23,531

		2012			2011
	Shareholders' equity	Minority Interest	Group equity	Shareholders' equity	Minority Interest	Group equity
Balance at 1 January	236,424	194	236,618	201,965	229	202,194
Net income	25,051	167	25,218	18,862	105	18,967
Exchange differences arising on translation of foreign operations	4,024	11	4,035	-7,082	-19	-7,101
Income tax relating to components of other comprehensive income	-219		-219	328		328
Total comprehensive income	28,856	178	29,034	12,108	86	12,194
Cash dividend Appropriation of result	-21,412	-106	-21,518	-18,816	-195	-19,011
Share based payments Option rights exercised Issue of share capital	1,123 3,568		1,123 3,568	645 5,142		645 5,142
Balance at 30 June	248,559	266	248,825	201,044	120	201,164

Condensed consolidated statement of changes in shareholders' equity (unaudited)

Condensed consolidated cash flow statement for the period ended 30 June (unaudited)

(X € 1,000)	2012	2011
	H1	H1
Result before tax	37,862	28,049
Adjustments for:
Depreciation	1,944	1,765
Interest received	61	-345
Other non-cash expense	97	213
Share based payments	1,123	645
Changes in:
Receivables	-11,172	-19,695
Current liabilities	-12,171	12,109
Cash flow from operations	17,744	22,741
Taxes	-17,518	-11,353
Cash flow from operational activities	226	11,388
Additions to property, plant and equipment	-3,718	-3,324
Disposals of property, plant and equipment	8	18
Interest received	-61	345
Cash flow from investments	-3,771	-2,961
Issue of new shares	3,568	5,142
Acquisition Minority interest		-195
Dividend Minority interest	-106
Dividend	-21,412	-18,816
Cash flow from financial operations	-17,950	-13,869
Net cash flow	-21,495	-5,442
Cash position at start of financial period	86,034	63,924
Net cash flow	-21,495	-5,442
Exchange rate fluctuations	1,509	-2,112
Cash position at end of financial period	66,048	56,370

Notes to the condensed consolidated financial statements for the period ended 30 June (unaudited)

Basis of preparation

The condensed financial statements have been prepared in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting.

Significant accounting policies

The condensed financial statements have been prepared under the historical cost convention. The same accounting policies, presentation and methods of computation have been followed in these condensed financial statements as were applied in the preparation of the Group's financial statements for the year ended 31 December 2011.

Seasonality

The Group's activities are only marginally affected by seasonal patterns.

Income tax charge

H1 2012 income tax is accrued based on the estimated average annual effective income tax rate of 33.4% (period ended 30 June 2011: 32.4%)

Share capital

The authorised share capital is € 5,000,000, divided into one priority share with a nominal value of € 10,000 and 99.8 million ordinary shares with a nominal value of € 0.05. The subscribed capital consists of 23,820,062 ordinary shares.

Number of shares issued as at December 31, 2011	23,531,312
Shares issued in period ended June 30, 2012	288,750
Number of shares issued as at June 30, 2012	23,820,062

Dividend

During H1 2012, a dividend of € 0.90 (2011: € 0.80) was paid to the shareholders.

Earnings per share

The calculation of the basic and diluted earnings per share is based on the following data:

Number of shares	2012	2011
Weighted average number of ordinary shares for
the purpose of basic earnings per share per January 1	23,675,687	23,388,812
Effect of dilutive potential ordinary shares from
share based payments	409,750	211,500
Weighted average number of ordinary shares for
the purpose of diluted earnings per share per June 30	24,085,437	23,600,312

Approval of H1 2012 financial statements

The H1 2012 financial statements were approved by the Board of Directors on August 16, 2012.

Segment reporting (unaudited)

Geographical

		Revenue	Operating profit		Total Assets
	2012	2011	2012	2011	2012	2011
(X € 1,000)	H1	H1	H1	H1	H1	H1
Worldwide Oil & Gas	407,758	282,071	20,974	11,965	251,725	185,464
Germany	87,489	71,851	10,682	9,380	52,665	41,493
Netherlands	82,597	76,529	9,959	7,481	54,805	60,297
Other Europe	16,473	14,947	-88	23	23,894	9,829
Unallocated	-509	-705	-3,573	-1,197
	593,808	444,693	37,954	27,652	383,089	297,083

* Included in Worldwide Oil & Gas revenue is € 3.6 mln (H1 2011: € 4.6 mln) revenue generated in The Netherlands

Employees

The total number of direct and indirect employees with the group companies is set out below:

Average workforce

	2012		2011
	H1		H1
	Direct	Indirect	Direct	Indirect
Worldwide Oil & Gas	5,330	524	4,313	488
Netherlands	1,791	332	1,610	310
Germany	1,917	371	1,567	300
Other Europe	374	100	353	72
	9,412	1,327	7,843	1,170
Total workforce		10,739		9,013
Workforce at 30 June
	2012		2011
	Direct	Indirect	Direct	Indirect
Worldwide Oil & Gas	5,656	520	4,429	492
Netherlands	1,820	323	1,681	325
Germany	2,036	382	1,681	305
Other Europe	391	100	389	72
	9,903	1,325	8,180	1,194

Total workforce	11,228	9,374

Segment reporting (unaudited)

Professional	Revenue		Operating profit
specialisation	2012	2011	2012	2011
(X € 1,000)	H1	H1	H1	H1
Worldwide Oil & Gas	407,758	282,071	20,974	11,965
Engineering	140,220	120,585	17,282	15,585
ICT	24,803	26,095	1,835	2,167
Unallocated	21,027	15,942	-2,137	-2,065
	593,808	444,693	37,954	27,652

Employees

The total number of direct and indirect employees with the group companies is set out below:

Average workforce

	2012 H1		2011 H1
	Direct	Indirect	Direct	Indirect
Worldwide Oil & Gas	5,330	524	4,313	488
Engineering	3,089	549	2,611	448
ICT	529	78	552	76
Unallocated	464	176	367	158
	9,412	1,327	7,843	1,170
Total workforce		10,739		9,013

Workforce at 30 June		2012 2011
	Direct	Indirect	Direct	Indirect
Worldwide Oil & Gas	5,656	520	4,429	492
Engineering	3,221	558	2,778	463
ICT	536	74	572	77
Unallocated	490	173	401	162
	9,903	1,325	8,180	1,194
Total workforce		11,228		9,374