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Arcadis<br />
Netherlands/General Industrials Analyser<br />
Arcadis (Buy)<br />
Buy<br />
Recommendation unchanged<br />
Share price: EUR<br />
closing price as of 07/05/2012<br />
Target price: EUR<br />
Target Price unchanged<br />
Reuters/Bloomberg<br />
17.28<br />
20.00<br />
ARDS.AS/ARCAD NA<br />
Market capitalisation (EURm) 1,217<br />
Current N° of shares (m) 70<br />
Free float 57%<br />
Daily avg. no. trad. sh. 12 mth 111,482<br />
Daily avg. trad. vol. 12 mth (m) 2<br />
Price high 12 mth (EUR) 17.54<br />
Price low 12 mth (EUR) 11.75<br />
Abs. perf. 1 mth 13.68%<br />
Abs. perf. 3 mth 16.25%<br />
Abs. perf. 12 mth 2.55%<br />
Key financials (EUR) 12/11 12/12e 12/13e<br />
Sales (m) 2,017 2,386 2,571<br />
EBITDA (m) 167 213 246<br />
EBITDA margin 8.3% 8.9% 9.6%<br />
EBIT (m) 134 174 203<br />
EBIT margin 6.7% 7.3% 7.9%<br />
Net Profit (adj.)(m) 82 101 126<br />
ROCE 11.1% 13.0% 14.8%<br />
Net debt/(cash) (m) 237 227 170<br />
Net Debt/Equity 0.5 0.4 0.3<br />
Debt/EBITDA 1.4 1.1 0.7<br />
Int. cover(EBITDA/Fin. int) 7.2 9.0 11.0<br />
EV/Sales 0.5 0.6 0.5<br />
EV/EBITDA 5.9 6.4 5.4<br />
EV/EBITDA (adj.) 5.9 6.4 5.4<br />
EV/EBIT 7.4 7.9 6.5<br />
P/E (adj.) 10.1 12.0 9.8<br />
P/BV 1.8 2.3 2.6<br />
OpFCF yield 9.3% 4.0% 8.1%<br />
Dividend yield 2.7% 3.1% 3.5%<br />
EPS (adj.) 1.20 1.45 1.76<br />
BVPS 6.68 7.38 6.68<br />
DPS 0.47 0.54 0.61<br />
18 vvdsvdvsdy<br />
17<br />
16<br />
15<br />
14<br />
13<br />
12<br />
11<br />
Apr 11 May 11 Jun 11 Jul 11 Aug 11 Sep 11 Oct 11 Nov 11 Dec 11 Jan 12 Feb 12 Mar 12 Apr 12 May 12<br />
Source: Factset<br />
ARCADIS Stoxx General Industrials (Rebased)<br />
Shareholders: St. Lovinklaan 21%; Delta lloyd 5%; Delta<br />
Deelnemingen Fd 5%; ASR Nederland<br />
5%;<br />
Analyst(s):<br />
Edwin de Jong, SNS Securities<br />
edwin.dejong@snssecurities.nl<br />
+312 0 5508569<br />
Large contract win EC Harris<br />
The facts: Last year acquired EC Harris, has won a contract from Lloyds Banking<br />
Group, the UK's largest retail bank, as its single source Professional Services<br />
Provider (PSP) for the next three years, beginning in April 2012.<br />
EC Harris will support Lloyds Banking Group in the delivery of capital construction<br />
across its retail banking network, head offices and data centers throughout the<br />
UK. No financial details were disclosed.<br />
Our analysis: Through this contract, Lloyds Banking Group will become one of<br />
EC Harris‟ top five clients in the UK. Currently, Lloyds has over 2,900 retail<br />
branches (including Lloyds TSB, Halifax, Bank of Scotland and Cheltenham &<br />
Gloucester brands) and over 211 offices which (including data centers), which<br />
makes up a portfolio of over 1m m2. This<br />
The scope of work for EC Harris will include commercial management, capital<br />
planning, project management and Construction Design Management<br />
Coordination (CDMC). A client of this size will have a continuous flow of activities<br />
related to new locations, closing location and refurbishing locations and as such,<br />
we expect this contract to be worth several tens of millions Euro‟s a year.<br />
For Lloyds, coping with one single source partner for its network will enable the<br />
Group to deliver efficiencies and innovation<br />
Conclusion & Action: The UK is a large market for EC Harris (around 57% of<br />
revenues) and Lloyds Banking Group is another benchmark client (like Shell and<br />
BAA). As we believe that there is a lot of value in these type of contracts (multiple<br />
discipline, higher margins) we welcome this deal.<br />
Page 41 of 80 European Securities Network<br />
Please refer to important disclaimer on the last page
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