Royal BAM N : Koninklijke BAM Groep N.V., - BAM reports €182 million adjusted EBITDA in first half-year

Royal BAM Group nv	Runnenburg 9, 3981 AZ Bunnik / P.O. Box 20, 3980 CA Bunnik,
	Netherlands
	Telephone [phone]
	Postbank 2903344 / ABN AMRO bank 's-Gravenhage 43.00.08.97

Date	18 August 2022
No. of pages	27

BAM reports €182 million adjusted EBITDA in first half-year

Royal BAM Group nv delivered a strong first half-year of 2022, based on a solid operational performance, further de-risking on projects and substantial progress with divestments. The net result improved significantly to €86 million. The cash position and order backlog remain at a good level. For 2022, BAM expects to deliver an adjusted EBITDA margin of at least 4 per cent, excluding the anticipated result on the Wayss & Freytag divestment. BAM expects to propose a dividend over the full-year 2022.

• Revenue increased 2% in Netherlands, United Kingdom and Ireland; total revenue declined 8% versus H1 2021 due to divestments
• Adjusted EBITDA increased 16% to €182 million, reflecting a margin of 5.5%, including positive effect of €16 million following settlement of Museum of the Future (Dubai) in Q2
• Strong improvement of net result to €86 million, earnings per share of €0.31 in first half-year
• Liquidity position of €830 million, excluding €188 million for Wayss & Freytag reported as held for sale
• Capital ratio improved to 17.7% (14.5% year-end 2021 and 13.2% H1 2021), completion of Wayss & Freytag transaction will add 2.3%
• Solid order book of €12.2 billion (including €900 million impact of divestments)

Key numbers	1st half-year	1st half-year	Full-year
(in € million, unless otherwise indicated)	2022	2021	2021
Revenue	3,329	3,629	7,315
Adjusted EBITDA 1
182.0	157.1	278.4
Adjusted EBITDA 1 margin	5.5%	4.3%	3.8%
Net result attributable to shareholders	85.7	20.1	18.1
Order book (end of period)	12,200	13,800	13,200
Trade working capital efficiency	-16.6%	-15.7%	-16.9%

1 Adjusted EBITDA defined as result before interest, tax, depreciation and amortisation, excluding restructuring costs, impairment charges and pension one-off.

Ruud Joosten, CEO of Royal BAM Group:

'Our operational results for the first half-year show a solid performance in our divisions the Netherlands, and the United Kingdom and Ireland. I am pleased that we have settled some legacy claims, especially for the Museum of the Future, and that we reached an agreement regarding the Afsluitdijk. Our capital ratio increased by more than 3 per cent, mainly driven by the significantly improved net result.

We are progressing well with our three-year strategy to create a more predictable, profitable and sustainable company. In the first half-year of 2022, we completed the divestments of BAM Galère and BAM Contractors in Belgium and we also announced the divestment of our German civil company Wayss & Freytag Ingenieurbau to be completed shortly. Our Belgium construction and property subsidiaries remain part of the Group. To further demonstrate our position as a frontrunner in the construction industry regarding sustainability, we have introduced accelerated targets to reduce our carbon emissions and we continue to invest to lower the emissions of our plant and equipment. In the Netherlands we have launched Flow, our innovative timber housing concept to meet the demand for affordable and sustainable homes. The construction of the offsite manufacturing facility for this new product is on schedule for completion later this year.

Royal BAM Group nv

Press release of 18 August 2022, page 2 of 27

We started the second half of the year with an order book of €12.2 billion. Our level of order intake remains satisfactory and we continue to focus on contracts with a healthy risk/reward balance. Conditions in our key markets are mixed. Business climate and consumer confidence have declined in recent months and we continue to face industry-wide pressure in the supply chain, cost inflation and high competition to attract and retain employees. We are able to mitigate most of these headwinds through sourcing arrangements, contract terms and pricing. Also, we are well positioned by our multi-year backlog and we see ample market opportunities supported by demand for decarbonisation, critical infrastructure and sustainable buildings, where we have proven market-leading capabilities.

We are on track with the execution of our strategy to de-risk our portfolio and we reinforced our financial position. We are committed to realise our 2023 strategic targets. For 2022, BAM expects to deliver an adjusted EBITDA margin of at least 4 per cent, excluding the anticipated result of approximately €50 million on the Wayss & Freytag divestment.'

Royal BAM Group nv

Press release of 18 August 2022, page 3 of 27

Business review first half-year 2022

Income statement	1st half-year 2022	1st half-year 2021
(in € million)	Revenue	Adj.	Revenue	Adj.
		EBITDA		EBITDA
Division Netherlands	1,384	97.6	1,423	72.0
Division United Kingdom and Ireland	1,549	47.7	1,452	47.3
Germany, Belgium and International	398	24.5	755	11.0
Invesis 1		16.0		9.1
Eliminations and miscellaneous	-2.0	-3.8	-1.0	17.7
Total Group	3,329	182.0	3,629	157.1
Adjustment items 2		-1.1		-0.2
Depreciation and amortisation		-61.6		-73.4
Impairments		-12.0		-10.6
Interest charge		1.6		-7.5
Result before tax		108.9		65.4
Income tax		-24.1		-45.6
Non-controlling interest		0.9		0.3
Net result attributable to shareholders		85.7		20.1

1. Invesis is the net result from BAM's 50 percent equity stake in the PPP joint venture with PGGM.
2. Restructurings and pensions.

• Effective as per 1 January 2022, BAM implemented an operating modelbased on two divisions. Division Netherlands consists of the activities in construction and property and civil engineering. Division United Kingdom and Ireland consists of Construction UK, Civil engineering UK, Ventures UK (which includes property development) and BAM Ireland (comprising construction, civil engineering and property). The other operating companies are reported in the line item Germany, Belgium and International. BAM has divested several businesses since the start of 2021 including BAM Deutschland (October 2021) and the Belgian companies BAM Galère and BAM Contractors (February and May 2022 respectively). The comparative information has been adjusted in accordance with the new operating model.
• Revenuedeclined by 8 per cent to €3.3 billion compared to the first half-year of 2021. The divestments resulted in 10 per cent lower revenue. The combined revenue of the division Netherlands and division United Kingdom and Ireland increased by 2 per cent. The British pound exchange rate had a positive impact of €37 million. Joint venture revenue is not consolidated in Group revenue and was €154 million (H1 2021: €213 million).
• Adjusted EBITDAincreased by 16 per cent to €182 million compared to the first half-year of 2021, including the positive effect of settlements of Museum of the Future in Dubai (€16 million) and sea lock IJmuiden (OpenIJ; €16 million), and the positive effect of changes in fair values of hedge instruments at Invesis (€14 million). The adjusted EBITDA margin improved to 5.5 per cent (H1 2021: 4.3 per cent).
• Net resultimproved substantially to €86 million (H1 2021: €20 million), reflecting earnings per share of
  €0.31 (H1 2021: €0.07). Total impairments of €12 million relate to the write-down of equipment, goodwill, property positions and divestments. The interest charge improved, mainly reflecting the repayment in the first half of 2021 of the €400 million revolving credit facility and the €120 million subordinated convertible bond. The improvement of net result was supported by the absence of a €30 million non-cash deferred tax charge, primarily due to changes in tax legislation, that had been recognised in the first half-year of 2021.

Royal BAM Group nv

Press release of 18 August 2022, page 4 of 27

Division Netherlands

(x € million, unless otherwise indicated)		1st half-year 2022	1st half-year 2021
		Revenue			Adj.		Revenue	Adj.
Construction and Property 1				EBITDA		EBITDA
	964			56.4		997	75.2
Civil engineering		436			31.0		441	-11.3
Other, eliminations and miscellaneous		-16			10.2		-15	8.1
Total division Netherlands		1,384			97.6		1,423	72.0
Trade working capital efficiency							-14.5%
	-15.9%
Revenue growth		-3%					3%
Adjusted EBITDA margin					7.1%			5.1%
		1st half-year 2022	Full-year 2021
Order book		4,590					4,388
Order book growth		5%

1 Includes BAM Energie & Water and BAM Telecom.

• Revenuedeclined by 3 per cent compared to the first half-year of 2021, mainly as a result of continued selective tendering.
• Adjusted EBITDAimproved by 36 per cent to €97.6 million compared to the first half-year of 2021, reflecting an adjusted EDITDA margin of 7.1 per cent (H1 2021: 5.1 per cent). The contribution of the construction and property activities was lower, following the very strong first half-year of 2021. Home sales totalled 858 (H1 2021: 1,446). Taking account of the start of some projects in the second half-year,full-year 2022 sales are expected to be at least 2,000 homes. In non-residential construction, cost inflation and delays had an impact on the margin. Civil engineering showed a recovery with a good operational performance in the regions. In the second quarter, the Levvel settlement on the Afsluitdijk project was ratified by the Dutch government covering scope reductions, planning and compensations, which has reduced the risk profile of the project significantly. The first quarter result included the positive settlement of €16 million for the sea lock IJmuiden (OpenIJ).
• The order bookincreased by 5 per cent to €4.6 billion, while BAM continues to be selective in tendering, especially regarding large scale lump-sum projects. As part of the Wayss & Freytag transaction, the order book of BAM Infra Nederland has been reduced by circa €200 million relating to the Brunsbüttel lock project. It still includes a 12.5 per cent share in the Fehmarnbelt tunnel project. Awarded contracts include: in Amsterdam, 'Aan het water' office project and a development of 242 apartments in Sluisbuurt; in Rotterdam, the rail project Waalhaven, and various optical fibre networks throughout the Netherlands.
• Market outlook. The Dutch government is committed to essential investments for energy transition, infrastructure and housing. Demand in BAM's energy, water and telecoms markets remains positive. Recently, the general business climate and consumer confidence have declined. The pressure in the supply chain for materials and employees is leading to cost increases and delays of some project awards. In the housing market, discussions about potential regulations to maximise the increase of rents are creating uncertainty for institutional investors. BAM continues to see attractive opportunities as demand remains high, and is investing in innovative solutions for sustainable and affordable homes.

Royal BAM Group nv

Press release of 18 August 2022, page 5 of 27

Division United Kingdom and Ireland

(x € million, unless otherwise indicated)		1st half-year 2022	1st half-year 2021
		Revenue			Adj.		Revenue	Adj.
				EBITDA		EBITDA
Construction UK		512			22.0		511	19.2
Civil engineering UK		609			19.4		605	15.1
Ventures UK (including property)		108			6.0		96	6.5
Ireland (construction, property, civil engineering)		351			5.9		269	6.7
Other, eliminations and miscellaneous		-31			-5.6		-29	-0.2
Total division United Kingdom and Ireland		1,549			47.7		1,452	47.3
Trade working capital efficiency							-17.6%
	-18.1%
Revenue growth 1
	7%					41%
Adjusted EBITDA margin					3.1%			3.3%
		1st half-year 2022	Full-year 2021
Order book 1
	6,109					6,586
Order book growth		-7%

1 The British pound exchange rate had a €37 million positive effect on revenues and a negative effect of €167 million on the order book.

• Revenueincreased by 7 per cent compared to the first half-year of 2021, also supported by the high activity level on some larger civil projects. In Ireland, revenues recovered after the impact of the Covid-19 restrictions in the first half of 2021. The British pound exchange rate had a €37 million positive effect on revenues.
• Adjusted EBITDAimproved by 1 per cent to €48 million compared to the first half-year of 2021, reflecting an adjusted EDITDA margin of 3.1 per cent (H1 2021: 3.3 per cent). The contribution of Construction UK was impacted by supply chain issues on some larger contracts while Civil engineering UK showed a solid performance supported by a high activity level. The newly established Ventures business which includes property UK, Ritchies (geotechnical engineering), facility management, site solutions and EV charging solutions made a satisfactory contribution. The result in Ireland included the positive effect of €3 million for their share of the claim settlement of Museum of the Future. BAM is in constructive dialogue with the client regarding the settlement of the National Children's Hospital in Dublin, which is currently 71 per cent completed.
• The order bookdeclined by 7 per cent to €6.1 billion, including a negative effect of €167 million due to the British pound exchange rate. Awarded contracts include phase one of Nuneaton town centre's Abbey
  Street development and several schools. Furthermore, BAM is partner for the framework agreements for the Devonport Royal Dockyard 10 Dock refurbishment, Northern Ireland Water's Major Project
  Partnership Framework and was reappointed on Manchester Airport Group's Major Capital Works
  Framework.
• Market outlook. In the United Kingdom, the government has announced to significantly increase public investment over the next four years, resulting in a positive outlook for health, justice, defence, leisure and education. Recently, the business and consumer confidence have declined. In Ireland, the outlook is mixed due to macro-economic uncertainties and cost inflation. The Irish government has committed to a National Development Plan for 2021-2040 with a proposed capital spend of €165 billion focused on infrastructure.