PRESS CONFERENCE

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• PRESS CONFERENCE
• ARCADIS NV
• Amsterdam, the Netherlands, November 7, 2000

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Agenda

• Third quarter and first nine months 2000
• Strategic review
• New financial goals
• Implementation
• Discussion

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• Third quarter 2000
• Comments on figures ARCADIS NV
• By Harrie L.J. Noy, Chairman and CEO
• Amsterdam, November 7, 2000

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Net income Q3-2000 EUR 4.7 mln
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Net income 9 months 2000 EUR 13.5 mln
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Development operating income
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-/-4
2
25
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Gross revenue market segments
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Gross revenue regions
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Outlook 2000

• Increase operating income continues at this level
• Results NCCs lower than 1999
• Tax rate higher through U.S. profits
• Net income 12 to 15

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• Accelerating growth by leveraging our unique
  network
• Comments on the strategy review of ARCADIS NV
• by Harrie L.J. Noy, Chairman and CEO
• Amsterdam, November 7, 2000

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ARCADIS has expanded internationally
Strong local positions
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Strategic drivers

• Multinational clients
• One stop shopping
• Home market positions
• One firm concept
• Worldwide network
• based on strong local positions

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Good results have been achieved

• Europe top 3 / worldwide no. 9
• Stable growth of revenues and income
• Acquisitions of leading, innovative firms
• Successfully integrated in network
• One firm concept implemented
• Strongest international network in the business
• In short a solid basis for continued growth

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Stable growth in revenue and income
Gross revenue
Net income (before extraord.items)
13 annual growth
9.4 annual growth
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ARCADIS most international
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No reason to be complacent

• Positive developments not reflected in share
  price
• Organic growth limited
• Image needs strengthening
• New team Executive Board
• So Strategic review

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The market changes

• Globalization of clients
• Consolidation in the sector
• Governments pull back
• Industry outsourcing and vendor reduction
• Changing roles
• Changing labor markets

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More focus on shareholder value

• ARCADIS needs positive share price development
• For access to capital market
• Profitable growth is key
• So increase in earnings per share
• More emphasis on organic growth
• In activities as well as margins
• Focus on home markets
• No further geographical expansion

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New ambitious targets

• For the period 2000 - 2005
• Average annual gross revenue growth 13
• 50 organic doubling
• 50 by acquisitions
• Increase of EBIT-margin to 8 in 2005
• Annual improvement of 4
• Doubling of earnings per share in 5 years
• Average annual EPS growth 15

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The following conditions apply

• Excluding the effects of goodwill write-offs
• Excluding changes in exchange rate dollar - euro
• Market conditions show no major changes
• Growth rate in part depends on acquisitions
• And no change in pay-out ratio dividend

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Four strategic pillars

• Organic earnings growth existing core business
• Better utilization of network
• Margin improvement
• Strong growth in specific segments
• Telecommunications
• Infrastructure / public transport
• Expansion of services to industry
• Facilities management
• Acquisitions
• To strengthen strategic growth

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Improve utilization of network

• Network valuable for two reasons
• Roll-out of innovative expertise
• Follow international clients
• Better exploit opportunities in core activities,
  e.g. environment, water.
• Requirements for change
• Web-enabling and knowledge management
• Balanced scorecard for operating companies
• Organizational integration at country level

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Margin improvement

• Concentration on activities with better margins
• Sell / stop low margin work
• Outsourcing basic engineering
• Proven feasibility within ARCADIS
• Generates considerable cost savings
• Improving project management

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Strong growth in telecommunications

• Excellent starting position
• Active in multiple countries
• International, strong local network, reputation
• Considerable opportunity is coming
• Expansion in wireless
• Develop position in fixed networks
• Leading role in Last Mile-segment
• International Telecom Support Center
• Actions aimed at U.S., Netherlands, Belgium,
  Germany, Spain and Brazil

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Strong growth in infrastructure

• Challenges in mobility demand infrastructure-solut
  ions around the world
• ARCADIS has leading niche-position in Dutch
  rail-based infrastructure
• Investments in public transportation systems
  offer good opportunity for ARCADIS
• Rapid growth American infrastructure market
• Expansion by acquisition in U.S. has priority

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Expansion of services to industry

• Competitive advantage multinational clients
• More services by way of account management
• Market for outsourcing creates opportunity
• Extend Facilities Management capabilities
• Concentrate on Dutch market
• ARCADIS natural partner
• Long term contracts

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Acquisitions

• Aimed at strengthening portfolio
• Additional growth via our network
• Priority to expansion in the U.S.
• Criteria
• Contribution to EPS-growth
• EBIT-margin ARCADIS
• Internal Rate of Return 15

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ARCADIS from engineering firm to
professional service provider

• for infrastructure, environment, buildings and
  communications
• Broad range of services
• Higher in the value chain
• More added value
• More fixed relationships/ partnerships
• Long term contracts

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