Opmaak JV 05 eng.indd

Finances12 Executive Board ReportTurnover by client groupTurnover by business groupTurnover by regionGovernment 41%Industry and commercialservices 26%Public utilities andsemi-government 26%International financiers 7%Spatial Planningand Environment 51%Building andManufacturing 23%Water 22%Aviation 4%The Netherlands 57%Europe 19%(excl. The Netherlands)Asia 10%North America 6%Africa 6%Other 2%Net turnoverNet turnover rose by 2.2% in 2005, to 300.6 million. The increase is entirely dueto the acquisition of Temid (effective per31 December 2004). If this acquisition isdiscounted, turnover may be seen to havefallen by 0.9% (allowing for currency exchangerate effects).Added valueAdded value remained stable during thereview year, at € 229 million. The developmentin added value was less than that ofnet turnover, due to a slight shift towardsactivities with a higher percentage of outsourcedwork and other external projectcosts.Costs developmentTotal operating expenditure (excluding thecosts of outsourcing and other externalproject costs) increased by 1.4% to € 222.7million. Staffing costs, comprising salariesand social insurance premiums, rose by4.8% to € 158.7 million, thus representing71.3% of the total operating expenditure.An amount of approximately € 2 millionhas been included in the account entryfor operating expenditure with respect tothe costs of restructuring programs. Thisrestructuring is expected to result in a permanentcost reduction in the order of € 4million per annum.Operating profit and operatingmarginThe operating profit fell by € 3.2 millioncompared to the previous year, to € 6.3million. This was primarily due to disappointingresults in Asia and Europe, andin the Water business group as well asthe costs of the aforementioned restructuringprograms. Overall, the operatingmargin (operating profit before amortizationof goodwill/added value) fell from4.1% to 2.7%. If the restructuring costs arediscounted, the margin would have been3.6%.GoodwillIn 2005, € 0.75 million in regular goodwillwas written off. An amount of € 1.0 millionin goodwill was paid out during the year in