Arcadis : Q2 and HY 2021 interim financial statements

Sustainable solutions | Digital leadership | Focus and Scale

Interim financial statements 2021

Performance highlights	Interim management report	Consolidated interim financial statements	Arcadis Interim Financial Statements 2021	2

This report contains the interim financial statements of Arcadis NV ('the Company' or 'the Group'), and consists of the interim management report and the interim financial statements, including risk assessment and the responsibility statement of the Executive Board. These interim financial statements have not been audited.

Performance highlights	3
Key figures	4
Interim management report	5
Consolidated interim financial statements	9
Consolidated Income statement	10
Consolidated Statement of comprehensive income	11
Consolidated Balance sheet	12
Consolidated Statement of changes in equity	13
Consolidated Cash flow statement	15
Notes to the Consolidated interim financial statements	16

Performance highlights	Interim management report	Consolidated interim financial statements	Arcadis Interim Financial Statements 2021	3

Performance highlights

Accelerated organic revenue growth and further margin and backlog improvement

• Rebound of major economies creates positive business outlook
• Further increased demand for Sustainable Solutions reinforces strategic choices

Second quarter results:

• Organic net revenue growth of 5.7% to €644 million (Q2 2020: €628 million)
• Operating EBITA +20% to €59 million, margin improved to 9.2% (Q2 2020: 7.8%)
• Net working capital at 14.3% (Q2 2020: 17.7%); DSO at 74 days (Q2 2020: 87 days)
• Solid free cash flow of €69 million (Q2 2020: €165 million)

First half year results:

• Organic net revenue growth of 3.0 % to €1.3 billion (gross revenues of €1.7 billion)
• Operating EBITA +21% to €117 million; margin improved to 9.2% (H1 2020: 7.6%)
• Net income from operations per share +52% to €0.90 (H1 2020: €0.59)
• Strong balance sheet with net debt/EBITDA ratio of 0.3x
• Organic backlog growth year-over-year 7.2%, year-to-date 4.2%

Performance highlights	Interim management report	Consolidated interim financial statements	Arcadis Interim Financial Statements 2021	4

Key figures

in € millions		HALF YEAR		SECOND QUARTER
Period ended 30 June	2021	2020	change	2021	2020	change
Gross revenues	1,660	1,703	-3%	848	831	2%
Organic growth	2%	0%		6%	-3%
Net revenues	1,276	1,286	-1%	644	628	3%
Organic growth	3%	0%		6%	-3%
EBITDA	172	154	11%	86	78	11%
EBITDA margin	13.5%	12.0%		13.4%	12.4%
Adjusted EBITDA1	134	113	18%	68	57	20%
EBITA	115	92	25%	58	47	24%
EBITA margin	9.0%	7.2%		9.0%	7.5%
Operating EBITA2	117	97	21%	59	49	20%
Operating EBITA margin	9.2%	7.6%		9.2%	7.8%
Net income	78	62	26%
Net income from operations (NIFO)	81	53	53%
NIFO per share (in €)	0.90	0.59	52%
Avg. number of shares (millions)	89.6	89.2
Net working capital %	14.3%	17.7%
Days sales outstanding	74	87
Free cash flow	30	81	-63%	69	165
Net debt1	107	316
Backlog net revenues (billions)	2.1	2.0
Backlog organic growth	4.2%	2.1%

1. Adjusted EBITDA and Net debt are calculated according to bank covenants: lease liabilities are excluded
2. Excluding acquisition, restructuring and integration-related costs

Performance highlights	IInterimim managementreport	Consolidated interim financial statements	Arcadis Interim Financial Statements 2021	5

Interim management report

Arcadis (EURONEXT: ARCAD), the leading global Design & Consultancy organization for natural and built assets, reports an organic net revenue growth of 5.7% and an operating EBITA margin of 9.2% for the second quarter. Organic net revenue growth for the first half year was 3.0% with an operating EBITA margin of 9.2%. Sustained good order intake is resulting in organic backlog growth of 7.2% year-over-year.

CEO Statement

Peter Oosterveer, CEO comments: "I am pleased with both the increased organic revenue growth and the improved margin, as well as with the further growth of our backlog. Although we are still experiencing the impact of the pandemic, we see growing demand from our clients for Arcadis services, to enable them to mitigate the impact of climate change and create more sustainable assets and livable communities.

Responding to the pandemic over the past 18 months has led to an even greater focus on cross sector and cross regional collaboration within Arcadis. We were able to increase the leverage of our global expertise across our businesses, generating additional benefits for our clients. Our new strategy, launched in late 2020, is therefore proving to be a timely and prudent springboard for consistently delivering scalable sustainable solutions. We have leveraged our digital leadership and focused on opportunities where we have the right to play and win. We are convinced that a more sustainable and equitable world can only be created if all involved are willing to maximize their collaboration and strive to deliver on aggressive targets.

The public stimulus programs have increased sustainable infrastructure funding in the US, the EU and the UK, as well as renewed focus by our clients on carbon reduction and environmental mitigation projects. Additionally, these programs have helped to secure new projects and maintain a healthy pipeline of opportunities. We expect this to continue given the clear objectives of these programs and the continued severe impact of the extreme weather conditions we have experienced in various geographies.

Our acceleration of organic net revenue growth and improved margin, combined with a strong order backlog and a positive business outlook, gives us confidence in our ability to deliver the strategic targets we have set for 2023."