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2014-04-30

GRONTMIJ N.V.: Grontmij financial press release first quarter 2014

Grontmij reports encouraging start of the year, showing improved operating
results

De Bilt, 30 April 2014 - Grontmij N.V. a listed consulting&engineering company
with strong European presence, today announces its first quarter 2014
results. Most markets across Europe showed some signs of recovery, aided by a
mild winter. On the other hand, price pressure and difficult economic
environments particularly in France remain. Grontmij's results on Group level
provided for an encouraging start of the year, with slightly lower total
revenue (€ 186.6 million versus € 192.0 million last year), while EBITA
excluding exceptional items improved from € 2.6 million in the first quarter
of 2013 to € 7.0 million this year. At the end of February 2014, Grontmij
presented its rebalanced strategy with an additional restructuring programme
and extended and reconfirmed its margin target for 2016. Additionally, a new
trade working capital target was set of 13% by 2016. Grontmij also announced
the strengthening of the balance sheet with € 40 million new equity
accompanied by a more flexible financing arrangement with an adjusted
covenant schedule. The refinancing allows Grontmij to fully focus on the
business, continuing the operational excellence programme and to make
progress on the path towards profitable organic growth.

Key points first quarter 2014

* Total revenue Q1 2014 € 186.6 million (Q1 2013: € 192.0 million), with
organic decline of 1.8%. Net revenue Q1 2014 was stable at € 160.3 million
(Q1 2013: € 161.3 million), with modest organic growth of 0.4%.
* EBITA excluding exceptional items for Q1 2014 improved to € 7.0 million (Q1
2013: € 2.6 million), also impacted by a strong improvement in Sweden;
EBITA margin excluding exceptional items improved from 1.3% (Q1 2013) to
3.8% in the first quarter of this year; Exceptional items of - € 3.1
million, mainly resulting from the additional restructuring measures.
* Net result from continuing operations in the first quarter of 2014 (- € 2.3
million) lower than last year (Q1 2013: - € 0.6 million), also due to a
one-off tax gain in Q1 2013 (€ 2.7 million).
* Trade working capital (TWC) at the end of Q1 2014 was 18.2% (Q1 2013: 16.8%
) mainly explained by higher work in progress (WIP) in France and lower
payables across the Group.
* Net debt per 31 March 2014 of € 63.6 million (FY 2013: € 54.1 million),
impacted by the equity issue (€ 20.5 million) and the seasonal increase of
TWC.

Highlights Rebalanced 'Back on Track' strategy 2014 - 2016:

Restructuring:

* Cost savings as part of the additional cost reduction programme have
started well. Measures taken in the first quarter represent an annual run
rate of € 4.1 million against the 2013 actual cost base.
* OPEX improvements: in the first quarter, Grontmij continued to embed the
five processes in all operating countries. Audits were performed in the
Netherlands and Denmark, leading to an improved implementation rate of
respectively 60 to 80% (NL) and 80 to 88% (DK).
* Portfolio optimisation: Grontmij will initiate a divestment process of the
French activities, either as a whole or in parts, following carefully
evaluating the strategic options. Grontmij will continue to develop
opportunities in Light Rail in the Paris region using its broad European
expertise.
* Accelerate improvements NL: Implementation of the strategic plan to reduce
costs, improve OPEX and grow the Dutch top and bottom line in a sustainable
matter is developing according to plan.

Realising profitable growth
Grontmij's strategy is aimed at restructuring the business and realising
profitable growth, focusing on Five Group Growth Segments: Energy, Water,
Highways&Roads, Sustainable Buildings and Light Rail. Within these segments,
a number of projects have been won in the first quarter of 2014:

* In the Energy segment, Grontmij Netherlands is part of a consortium with
Stedin and TU Delft to develop a new strategy to replace the existing gas
infrastructure in the West of the Netherlands. In Germany, Grontmij won
several projects to expand the national energy grid. Hundreds of kilometres
of high-voltage lines will have to be established to connect the renewable
power plants in the north with consumers in the south for main clients
Amprion and Westnetz.
* In the Water segment, Grontmij drafted a Master Plan Coastal Protection,
that was offered by the Dutch Minister of Infrastructure and Environment to
the Indonesian Government in March. And working alongside with colleagues
from the UK, Grontmij Denmark won an asset management contract with HOFOR,
the largest utility company in Denmark.
* In the Highways&Roads segment, Grontmij is to act in a joint venture with
AECOM as lead designers on the construction of a 10 km relief road linking
the A6 to Manchester Airport in the United Kingdom.
* In the Sustainable Buildings segment, Grontmij was proud to be awarded by
BREEAM's prestigious Assessor Company of the Year Award 2014, in
recognition of the uppermost BREEAM ratings for their projects across a
variety of building sectors over the last twelve months.

Michiel Jaski, CEO Grontmij N.V: 'We are pleased to report an encouraging
start of the year with an increase of our margin from 1.3% to 3.8%. In most
of our major operating countries results improved, showing a continuation of
the trend that started in Q4 2013. We see a modest increase in the planning
activities and preparation of new projects across our Group Growth Segments
with both existing and new customers, indicating that European markets are
starting to move in the right direction. At the end of February we announced
to step up a gear to get back on track and deliver on our long term strategic
targets. With a strong and stable financial framework supported by our
shareholders, Grontmij can now fully focus on its rebalanced strategy. Given
our strategic priorities and available resources, we have started the process
to consider the divestment opportunities for our French activities. The
return to a healthy profit margin for the Group is our most important long
term strategic target, we are therefore encouraged by the results in the
first months of 2014.'

Visit our website for the full press release

For more information please contact
:

Grontmij N.V., Michele Negen, Investor Relations Manager, T +31 30 220 78 31

www.grontmij.com

www.twitter.com/grontmijgroup

www.linkedin.com/company/Grontmij
Note to editors
Grontmij is a leading European company in the Consulting&Engineering industry
with world class expertise in the fields of energy, highways&roads, light
rail, sustainable buildings and water. Our leading principle is
Sustainability by Design. This enables our professionals to support clients
in developing the built and natural environment. Established in 1915,
Grontmij is listed on the NYSE Euronext stock exchange.

Grontmij financial press release first quarter 2014
http://hugin.info/143540/R/1781225/609404.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: GRONTMIJ N.V. via Globenewswire

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