• Good revenue across the board: EUR 1.4 billion up 9.5%
• Operating profit down to EUR 13.2 million owing to provisions and impairments
• Net profit: EUR 0.8 million
• Healthy cash flow: strong cash inflow thanks to improved working capital
• Sharp jump in order book to EUR 1.9 billion (2008: EUR 1.6 billion)
• Priority for 2010: enhanced profitability

Utrecht, 9th March 2010 - Strukton, a full-service provider of infrastructure and accommodation solutions, reports revenue for 2009 of EUR 1.37 billion, an increase of 9.5% (2008: EUR 1.25 billion).

All Strukton's operating companies maintained or even improved their revenue. The improvement was attributable chiefly to organic growth at Strukton Civiel, the international activities of Strukton Rail, three major PPP construction projects and growth in volume at Strukton Worksphere.

Operating profit (EBIT) declined to EUR 13.2 million (2008: EUR 31.7 million). This sharp decline was due chiefly to large provisions for a number of construction projects delivered in the past that have not yet been settled financially. In addition to these provisions, results were depressed by provisions for reorganisations at Strukton Rail and Strukton Bouw (EUR 6 million in total), impairments and additional pension provisions (together EUR 5 million). After adjustment for these non-operating charges, operating profit came in at virtually the same level as in 2008.

The profit for the year amounted to EUR 0.8 million (2008: EUR 14.3 million). The order book increased by 13.4% to EUR 1.9 billion as at year-end 2009. The solvency ratio – after adjustment for the financing of PPP projects – came to 21.7% (2008: 22.3%).

Performance of the Strukton companies
Strukton Rail responded decisively to the sharp drop in volume and the strong pressure on prices in the Dutch market and achieved a predominantly sharp improvement in its results in foreign markets. Market conditions in the Netherlands, and also in Germany were again difficult in 2009. In the major maintenance, rail replacement, functional change and new build markets, less work was offered and prices came under heavy pressure. As a result, Strukton Rail was forced to announce a substantial reorganisation in the Netherlands and will bring the structure and size of the organisation into line with the changed market conditions in the course of 2010. On the international market, there was a marked increase in revenue and profit, chiefly on account of developments in Scandinavia and Italy. Revenue and results in Germany came under pressure.

Strukton Civiel can again look back on an excellent year, with revenue increasing to above EUR 400 million. The order book is well filled with long-term projects that provide a solid platform for the future. Strukton Civiel profited from a high level of government contracting for additional investments in the infrastructure. A number of the contracting procedures are still ongoing and will lead to substantial acquisition costs in 2010. The market for new contract forms expanded further in 2009, as witnessed by the number of PPP concession projects in the pipeline and also by the growing number of projects that, from the outset, will be brought to market in new contract forms such as alliances. A development plan submitted by the Avenue2 consortium consisting of Strukton Civiel and Ballast Nedam, for example, won the 'Groene Loper' contract in Maastricht. Strukton also won an alliance contract to construct an underground car park and the largest hotel in the Netherlands on the Oosterdok Island in front of Amsterdam Central Station.

Strukton Bouw incurred a substantial loss in 2009 chiefly on account of provisions for claims in respect of work already delivered that had been taken on under unfavourable contract conditions. A number of land positions were also revalued to current fair value. Strukton Bouw had taken measures in previous years in anticipation of a substantial increase in revenue. The increase has remained below expectations, however, and the consequences have been exacerbated by the credit crunch. A start was made in 2009 on rescaling the organisation to a more realistic level of revenue. That there are still opportunities in the market despite the recession can be seen from the variety of new projects that Strukton Bouw won or commenced in 2009. In Amsterdam, Strukton Bouw is converting the former Sweelinck school of music into a five-star hotel. Other new engagements include the town hall in Coevorden and an office block in Ekkersrijt, Eindhoven. The order book for 2010 is well filled and the newly contracted engagements are developing steadily.

Strukton Worksphere successfully achieved a considerable increase in volume in a difficult market. The company responded on time and appropriately to the deterioration in market conditions, in part by making cost savings across the entire organisation and improving productivity. The volume of maintenance work, which is carried out chiefly for established clients, remained at a firm level. There was an increase in the volume of projects, most of which are carried out in collaboration with Strukton Civiel and Strukton Bouw. The order book for 2010 is of high quality.

For Strukton Integrale Projecten, 2009 was chiefly a year of investment for the future. As the tendering procedures for various contracts can last as long as 15 months, Strukton Integrale Projecten did not win any new projects in 2009. Its results were influenced principally by high tendering costs, which must be recognised in the year in which they are incurred while the projects themselves will not be carried out until the next year (or even later). In view of the ongoing contracting procedures and calls for new tenders in the infrastructure and general construction markets, the situation is expected to improve in 2010. Ten new projects are already in the pipeline. Both the three projects in production and the three projects under management progressed satisfactorily in 2009.

Outlook
Strukton will give priority in 2010 to improving profitability by increasing efficiency and lowering costs. Strukton does not see any improvements occurring in the construction market and in the Dutch rail market for the time being. The operating companies in these markets are therefore adapting their organisations and staff numbers in order to remain competitive. Strukton expects it will need to form an additional reorganisation provision at Rail and does not rule out further reorganisations. Nevertheless, Strukton is looking forward to 2010 with confidence. At EUR 1.9 billion, the order book is at its highest level ever, chiefly on account of a number of large infrastructure projects (Rail and Civiel).

Strukton will continue in 2010 as in 2009 with its environmentally-aware business and CO2 reduction programmes (2% reduction per year). In 2009 ProRail awarded Strukton Rail a Level 4 CO2 Awareness Certificate. The aim is to achieve this level throughout Strukton in 2010. Strukton Rail even has the ambition to reach Level 5.