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• 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 € 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 € 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 € 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 € million, unless otherwise noted	First quarter
	2009	2008	D
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 €)	0.34	0.19	79%
Net income from operations 1)	15.5	15.3	2%
Ditto, per share (in €) 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 € 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 € 7.5 million due to the unwinding of derivatives as mentioned earlier. Excluding these instruments, financing charges declined to € 2.4 million (2008: € 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® 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."

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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: www.arcadis-global.com