ARNHEM, The Netherlands, May 7 /PRNewswire-FirstCall/ -- - Gross Revenue Rose 5%, Also Impacted by a Positive Currency Effect - Strong Organic Growth in Infrastructure Compensates Decline in Environment and Buildings - On Balance Only a Marginal Decline in Activities - Margin Remains at Good Level - Net Income From Operations Increased by 2% - Outlook for 2009 Remains Uncertain due to Economic Situation ARCADIS (EURONEXT: ARCAD), the international consulting, design, planning, engineering, and management services company was able to present a result for the first quarter of 2009 that matched last year's performance. Gross revenue increased by 5% to EUR 418 million, also as a result of a positive currency effect caused by the stronger U.S. dollar. The economic crisis especially affected the business lines environment and buildings, where revenues declined organically due to lower investments from private sector clients. This was almost entirely compensated by the organic gross revenue growth of more than 10% in infrastructure. On balance, this resulted in only a marginal organic decline of activities. Net income from operations at EUR 15.5 million was 2% higher than last year. This good result was reached because of the aforementioned positive currency effect and because the margin remained at a good level of 9.6% (2008: 9.9%). Early 2009 ARCADIS has unwound derivatives that were used to hedge interest and currency risks. This resulted in a book gain of EUR 5.6 million after tax. This is included in net income, but is excluded from net income from operations. CEO Harrie Noy comments on the results: "Because government investments are maintained, the infrastructure market appears to be well shielded from the economic crisis. The market for buildings is the most challenging, particularly as a result of the strong decline in commercial real estate. This was partly compensated by shifting focus to non-commercial projects and the international market, but this did not suffice to deal with the strong decline in demand, as a result of which we had to adjust our organization in the United Kingdom and in RTKL. With private sector clients that are affected by the poor economy we see pressure on our environmental activities. By intensifying market development activities to gain market share, the decline in our own activities in environment was limited. Strict cost controls and a focus on markets and clients with continued demand resulted in the margin being maintained at a good level." Key figures Amounts in EUR million, unless otherwise noted First quarter 2009 2008 % Change Gross revenue 418 400 5% Net revenue 291 277 5% EBITA 27.9 27.5 1% Net income 20.2 11.6 74% Ditto, per share (in EUR) 0.34 0.19 79% Net income from operations 1) 15.5 15.3 2% Ditto, per share (in EUR) 1) 0.26 0.25 2% Av. number of outstanding shares (millions) 60.1 60.5 1) Before amortization and non-operational items Analysis Both gross and net revenue (revenue produced by ARCADIS' own staff) increased 5%, of which 4% as a result of a positive currency effect. The contribution from acquisitions was 2% and mainly the result of the takeover of the U.S. based firm LFR at the end of January 2008. Organically a marginal decline of 1% occurred. In most European countries an organic activity increase was achieved, with strong growth in the Netherlands and Poland. In the United Kingdom a considerable revenue decline reflected the poor real estate market. Also in the United States the economic crisis negatively affected gross revenue and the activities declined organically, both in RTKL and in the environmental market. Brazil and Chile contributed positively to organic growth, although especially in Brazil growth is slowing somewhat as a result of the worsened economy. EBITA rose 1% to EUR 27.9 million. The currency effect was 7%, while acquisitions contributed 2%. The organic decline of 8% was negatively impacted by the lack of a contribution from the sale of carbon credits as accreditation procedures were longer. Excluding this effect the organic EBITA decline was 6%. This decline came from RTKL and the buildings market in the United Kingdom. There, margins were under pressure, also as a result of costs incurred for adjusting our organization to the lower market demand. Due to better results in other parts of the company, including the United States, the overall margin (EBITA as a percentage of net revenue) remained at a good level at 9.6% (2008: 9.9%). Financing charges were impacted positively by EUR 7.5 million due to the unwinding of derivatives as mentioned earlier. Excluding these instruments, financing charges declined to EUR 2.4 million (2008: EUR 3.6 million). This was offset by an increase in taxes. On balance, net income from operations rose 2%, comparable to the increase of EBITA. Developments per business line Figures noted below concern gross revenues for the first three months of 2009 compared to the same period last year, unless otherwise noted. Infrastructure Gross revenue rose 11%. The currency effect was -1%, the contribution from acquisitions on balance was zero. Organic gross revenue growth was 12%, while net revenue increased 8%. The difference comes from Brazil, where a lot of subcontracting takes place in energy projects. Especially in the Netherlands and Poland growth was strong because we benefited from high investment levels for the expansion and improvement of rail- and roadways. Also in most other European countries activities increased, while in the United States the water market contributed to growth. In Brazil and Chile growth continued, but especially in Brazil growth is weakening as private investment is hit by the economy. Environment Gross revenue increased 2%. The currency effect was 8% and the contribution from acquisitions 5% (LFR and SET). The organic decline was 11%, but in net revenue was limited to 4%. The difference with gross revenue development was the completion of a number of large projects in the United Sates with considerable amounts of subcontracting and the execution of a larger amount of the work by our own staff. The revenue decline mainly came from the United States, where our industrial private sector clients are affected by the crisis. In Europe activities increased, partly as a result of environmental impact assessments for infrastructure. Buildings Gross revenue declined 1%, at a currency effect of 3%. The organic gross revenue decline was 4%, while net revenue declined by 7%. The difference was caused by the growth of facility management with a lot of subcontracting. The strongest decline occurred in the United Kingdom, where the commercial real estate market has almost come to a standstill. Also RTKL saw an organic gross revenue decline. Even though it experienced growth in healthcare, government buildings and in the international market (mainly Asia and the Middle East), this was not enough to compensate for the decline in the commercial real estate market in the United States. In the Netherlands a new facility management contract was signed with NS Poort. Outlook The extent to which the poor economic conditions affect our activities remains uncertain and differs for each of the markets in which we are active. The infrastructure market is dominated by government investments and is currently the most solid market for ARCADIS. The programs that were announced to stimulate the economy are expected to become noticeable in the third quarter and have a real effect in 2010. Climate change drives the demand for water management which yields work in both Europe and the United States. In the Netherlands considerable investments are made in improvements of rail and expansion of roadway capacity, while in Central Europe infrastructure is overhauled in a major way, supported by European financing. In South America the strong growth of recent years is expected to soften somewhat. In the environmental market regulation and sustainability provide a healthy basis. In the short term the economic crisis can negatively affect demand for environmental services from private sector companies. Many environmental remediation projects, however, run over multiple years, are based on regulatory drivers and contribute to the value of the assets. Energy savings and reduction of CO2 emissions are new themes which bring in work. Moreover, sectors with continued strong demand, our cost effective solutions based on advanced technology, vendor reduction and outsourcing of environmental work by companies, all provide an opportunity to increase market share. Interest in GRiP(R) is on the rise and is especially active with the U.S. DOD, but also with industrial clients. The buildings market, especially the commercial property market, has been affected the strongest by the credit crisis. RTKL and the project management services in the U.K. were hit most. The focus remains on non-commercial segments, such as healthcare, schools and government buildings, which are expected to benefit from stimulus funding. In addition the international market, especially in Asia and the Middle East offers opportunity for expansion. This also holds true for our project management activities in the Netherlands and the U.S. which are directed at (semi-) public clients and for facility management which meets the demand for cost reductions. CEO Harrie Noy concludes: "ARCADIS has strong market positions with a good spread geographically and towards clients and market segments. The backlog has increased since the end of 2008 thanks to a high order intake in infrastructure and environment. In all three business lines we will benefit from government stimuli packages. The priority lies with further cost savings, market development directed at increasing market share, preserving our margins and internal cooperation to create synergy advantages. We also remain alert on possible acquisitions to realize our strategic goals. Given the uncertainties in the market we do not yet provide a tangible outlook for 2009." About us: ARCADIS is an international company providing consultancy, design, engineering, and management services in the fields of infrastructure, environment, and buildings. We aim to enhance mobility, sustainability, and quality of life by creating balance in the built and natural environment. ARCADIS develops, designs, implements, maintains and operates projects for companies and governments. With 14,000 employees and EUR 1.7 billion in revenues, the company has an extensive international network that is supported by strong local market positions. Visit us on the internet at: http://www.arcadis-global.com/ ARCADIS NV CONSOLIDATED STATEMENT OF INCOME Amounts in EUR millions, unless otherwise stated First quarter 2009 2008 Gross revenue 418.0 399.9 Materials, services of third parties and subcontractors (127.5) (123.0) Net revenue 290.5 276.9 Operational cost (257.0) (244.0) Depreciation (5.9) (5.6) Other income 0.3 0.2 EBITA 27.9 27.5 Amortization identifiable intangible assets (1.2) (2.2) Operating income 26.7 25.3 Net finance expense 5.1 (6.5) Income from associates 0.1 0.2 Profit before income taxes 31.9 19.0 Income taxes (11.5) (6.6) Profit for the period 20.4 12.4 Attributable to: Net income (Equity holders of the Company) 20.2 11.6 Minority interest 0.2 0.8 Net income 20.2 11.6 Amortization identifiable intangible assets after taxes 0.8 1.4 Option costs UK share save scheme 0.1 0.1 Net effects of derivatives (5.6) 2.2 Net income from operations 15.5 15.3 Net income per share (in euros) 0.34 0.19 Net income from operations per share (in euros) 0.26 0.25 Weighted average number of shares (in thousands) 60,108 60,523 ARCADIS NV CONSOLIDATED BALANCE SHEET Amounts in EUR millions March 31, December 31, Assets 2009 2008 Intangible assets 257.7 249.3 Property, plant & equipment 70.7 66.5 Investments in associates 16.7 15.7 Other investments 0.4 0.2 Other non-current assets 15.5 14.8 Deferred tax assets 12.6 12.2 Derivatives - 3.8 Total non-current assets 373.6 362.5 Inventories 0.6 0.8 Derivatives - 0.2 (Un)billed receivables 538.5 538.5 Other current assets 37.0 32.0 Corporate tax assets 7.1 6.5 Cash and cash equivalents 86.3 117.9 Total current assets 669.5 695.9 Total assets 1,043.1 1,058.4 Equity and liabilities Shareholders' equity 233.3 207.6 Minority interest 13.1 12.3 Total equity 246.4 219.9 Provisions 28.4 26.7 Deferred tax liabilities 9.2 6.0 Loans and borrowings 279.7 266.8 Derivatives - 16.9 Total non-current liabilities 317.3 316.4 Billing in excess of cost 184.0 182.7 Corporate tax liabilities 11.4 18.7 Current portion of loans and borrowings 5.4 4.9 Current portion of provisions 4.2 4.4 Derivatives 0.1 0.1 Accounts payable 104.6 133.2 Accrued expenses 16.7 12.3 Bank overdrafts and short term borrowings 17.1 9.8 Other current liabilities 135.9 156.0 Total current liabilities 479.4 522.1 Total liabilities 796.7 838.5 Total equity and liabilities 1,043.1 1,058.4 ARCADIS NV CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY Amounts in Share capital Share premium Cumulative translation reserve EUR millions Balance at December 31, 2007 1.0 44.2 (29.8) Exchange rate differences (18.3) Taxes related to share-based compensation Income directly recognized in equity (18.3) Profit for the period Total income / (expenses) for the period (18.3) Share-based compensation Dividends to shareholders Options exercised Expansion ownership Balance at March 31, 2008 1.0 44.2 (48.1) Balance at December 31, 2008 1.2 36.2 (40.2) Exchange rate differences 3.9 Taxes related to share-based compensation Income directly recognized in equity 3.9 Profit for the period Total income / (expenses) for the period 3.9 Share-based compensation Dividends to shareholders Options exercised Balance at March 31, 2009 1.2 36.2 (36.3) Continued... Retained Total Minority Total Amounts in EUR millions earnings shareholders' interest equity equity Balance at December 31, 2007 172.3 187.7 11.5 199.2 Exchange rate differences (18.3) (0.6) (18.9) Taxes related to share-based compensation 0.1 0.1 0.1 Income directly recognized in equity 0.1 (18.2) (0.6) (18.8) Profit for the period 11.6 11.6 0.8 12.4 Total income / (expenses) for the period 11.7 (6.6) 0.2 (6.4) Share-based compensation 1.4 1.4 1.4 Dividends to shareholders (1.1) (1.1) Options exercised 0.1 0.1 0.1 Expansion ownership (0.8) (0.8) Balance at March 31, 2008 185.5 182.6 9.8 192.4 Balance at December 31, 2008 210.4 207.6 12.3 219.9 Exchange rate differences 3.9 0.7 4.6 Taxes related to share-based compensation - - - Income directly recognized in equity - 3.9 0.7 4.6 Profit for the period 20.2 20.2 0.2 20.4 Total income / (expenses) for the period 20.2 24.1 0.9 25.0 Share-based compensation 1.5 1.5 1.5 Dividends to shareholders (0.1) (0.1) Options exercised 0.1 0.1 0.1 Balance at March 31, 2009 232.2 233.3 13.1 246.4 CONSOLIDATED STATEMENT OF CASH FLOWS Amounts in EUR millions First quarter 2009 2008 Cash flows from operating activities Profit for the period 20.4 12.4 Adjustments for: Income from associates (0.1) (0.2) Taxes on income 11.5 6.6 Net finance expense (5.1) 6.5 Depreciation and amortization 7.1 7.8 33.8 33.1 Share-based compensation 1.5 1.4 Dividend received 0.1 - Interest received 1.3 1.7 Interest paid (6.1) (5.8) Corporate tax paid (16.0) (8.8) Change in inventories 0.2 (0.2) Change in receivables 10.8 (52.4) Change in deferred taxes 3.0 6.6 Change in provisions 1.0 (0.1) Change in billing in excess of costs (3.4) (5.6) Change in current liabilities (50.5) (33.5) Net cash from operating activities (24.3) (63.6) Cash flows from investing activities Investments in (in)tangible assets (9.0) (7.0) Divestments of (in)tangible assets 0.5 0.2 Investments in consolidated companies (1.1) (31.2) Investments in associates and other financial non-current assets (1.8) (2.5) Divestments of associates and other financial non-current assets 1.1 0.7 Net cash used in investing activities (10.3) (39.8) Cash flows from financing activities Options exercised 0.1 0.1 New long-term loans and borrowings 0.3 101.7 Repayment of long-term loans and borrowings (6.3) (2.6) Changes in short-term borrowings 1.0 0.5 Net cash from financing activities (4.9) 99.7 Net change in cash and cash equivalents less bank overdrafts (39.5) (3.7) Exchange rate differences 2.0 (2.8) Cash and cash equivalents less bank overdrafts at January 1 111.7 71.7 Cash and cash equivalents less bank overdrafts at March 31 74.2 65.2 DATASOURCE: ARCADIS NV CONTACT: For more information contact: Joost Slooten of ARCADIS weekdays at +31-26-3778604, outside office hours at +31-6-2706-1880, or e-mail at .

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