Press Release Brunel Q1 2021 results: Brunel reports strong Q1 profit increase

Australasia (unaudited)
P&L amounts in EUR million
	Q1 2021	Q1 2020	Change %
Revenue	25.2	30.0	-16%	a
Gross Profit	2.4	2.6	-8%
Gross margin	9.5%	8.7%
Operating costs	2.4	2.6	-8%	b
EBIT	0.0	0.0
EBIT %	0.0%	0.0%
Average directs	906	1,059	-14%
Average indirects	83	82	2%
Ratio direct / Indirect	10.9	13.0
a -21 % like-for-like
b -13 % like-for-like
Like-for-like is measured excluding the impact of currencies

Revenue is down both in Australia and PNG. Australia suffered from poor weather conditions, where PNG continued to be impacted by its dependency on expats travelling into the region, which was still restricted due to COVID-19.

Middle East & India (unaudited)
P&L amounts in EUR million
	Q1 2021	Q1 2020	Change %
Revenue	25.2	33.8	-25%	a
Gross Profit	4.1	5.9	-31%
Gross margin	16.3%	17.5%
Operating costs	1.7	2.7	-37%	b
EBIT	2.4	3.2	-25%
EBIT %	9.5%	9.5%
Average directs	2,078	2,711	-23%
Average indirects	125	146	-15%
Ratio direct / Indirect	16.7	18.5
a -19 % like-for-like
b -31 % like-for-like
Like-for-like is measured excluding the impact of currencies

In Middle East & India we saw a continued decrease in revenue, mainly due to completion of several projects and currency effects. Gross margin decreased due to margin pressure from existing clients and an unfavourable change in the client mix. Operating costs have decreased as a result of cost saving initiatives implemented in the second half year of 2020.

Americas (unaudited)
P&L amounts in EUR million
	Q1 2021	Q1 2020	Change %
Revenue	20.3	28.5	-29%	a
Gross Profit	2.6	3.2	-19%
Gross margin	12.8%	11.2%
Operating costs	2.7	4.0	-33%	b
EBIT	-0.1	-0.8	88%
EBIT %	-0.5%	-2.8%
Average directs	761	877	-13%
Average indirects	100	121	-18%
Ratio direct / Indirect	7.6	7.2
a -22 % like-for-like
b -24 % like-for-like
Like-for-like is measured excluding the impact of currencies

In the Americas revenues decreased by 29%, with strong growth in Brazil and growth in Canada. The activities in the USA did not yet show any recovery and were also hindered by the severe winter weather conditions in Texas. Gross margin has increased by 1.6 percentage points year-on-year boosted by higher recruitment revenue and project wins at a higher margin.

Rest of world (unaudited)
P&L amounts in EUR million
	Q1 2021	Q1 2020	Change %
Revenue	39.4	42.3	-7%	a
Gross Profit	7.1	7.3	-3%
Gross margin	18.0%	17.3%
Operating costs	5.8	6.2	-6%	b
EBIT	1.3	1.1	18%
EBIT %	3.3%	2.6%
Average directs	1,911	2,195	-13%
Average indirects	264	275	-4%
Ratio direct / Indirect	7.2	8.0
a -1 % like-for-like
b -3 % like-for-like
Like-for-like is measured excluding the impact of currencies

The Rest of World includes Asia, Russia & Caspian area, Belgium and Europe & Africa. In Russia, activities have increased with some new projects being started. In Asia, work continued on construction projects that were started pre-COVID-19. The increased profitability is mainly driven by a strong performance in our growth markets in Asia.

Outlook

We expect the current trend to continue in Q2 2021: revenue will be similar to Q1 2021, meaning a much lower decline yoy, however, still impacted by COVID-19.

Over Q2, gross margins are expected to be lower compared to Q1 2021 due to the seasonality and the lower number of working days as is EBIT, due to seasonality. Last year's cost savings program resulted in a significantly lower cost level, ensuring we will achieve a significantly higher EBIT compared to Q2 2020. Through a strong focus on growth in the segments future mobility, renewables, life sciences, mining, infrastructure and oil & gas we are ready to benefit when the world opens up again.