• Revenue up 9%; operating profit up 20%; net result for the year fractionally lower
• Three PPP tenders brought to financial close
• 33% higher order book: EUR 1.6 billion
• Revenue to stabilise in 2009 thanks to strong order book

UTRECHT, 11 March 2009 Strukton, a full-service provider of infrastructure and accommodation solutions, reports revenue for 2008 of EUR 1.25 billion (2007: EUR 1.15 billion), an increase of 9%. This improvement was mainly attributable to strong organic growth at Strukton Civil of 25%. The Worksphere operating company, which increased its revenue by 10%, also made a marked contribution to the growth. At Strukton Rail, revenue (excluding the contribution from acquisitions) was slightly higher than in 2007. Strukton Construction & Property faced delays and cancellations on ongoing projects on account of the credit crunch and subsequent recession. Its revenue was 13% lower than in 2007. In the project market for public private partnerships (PPPs), Strukton strengthened its leading position: Strukton Integrated Projects is currently participating in six of the 11 PPP concessions awarded in the Netherlands and has tendered for all PPP projects announced by the government in 2008.

Operating profit (EBIT) increased by more than 20% in 2008 to EUR 31.7 million (2007: EUR 26.2 million). This figure excludes the majority of the fees received in 2008 for PPP tenders, the cost of which had been recognised in 2007. The profit for the year was fractionally lower, down EUR 1 million at EUR 14.3 million (2007: EUR 15.3 million), on account of higher financial expenses, adverse currency movements and a higher tax burden.

Outlook
Strukton expects revenue to stabilise in 2009. At the end of 2008, the order book stood at the historically high level of EUR 1.6 billion, more than 33% higher than at the end of 2007 (EUR 1.2 billion). The order book consists for more than 75% of engagements for the public sector. In the private market, where the impact of the financial crisis and the recession is the greatest, Strukton's exposure is limited. Furthermore, more than a quarter of revenue consists of periodically recurring income. Strukton's strategy is to increase this proportion further. In the light of the current order book and its quality, Strukton currently does not foresee having to take any drastic measures in 2009.

Durk ten Wolde, interim chairman of the Group Management Board:
“Strukton is a robust group with solid foundations. Our companies are firmly anchored in healthy markets in which they hold distinctive positions. The acquisition of three PPP projects in 2008 has created a firm base for 2009. Volumes in the civil markets will remain at a good level. The maintenance market for both total facility management and technical services will remain stable. We expect the lower volumes seen in the Dutch rail market in 2008 to increase cautiously in 2009, creating opportunities for better capacity utilisation rates.”

Raymond Steenvoorden, member of the Group Management Board:
“We expect the recession to continue until after 2009. The impact on Strukton will be limited for the time being because the substantial order book predominantly consists of contracts with public sector clients. We owe our robustness in part to the healthy condition of our finances. We are keeping a close eye on developments in the order book in relation to the size of the organisation and paying special attention to costs.”

Performance of the Strukton Companies
Strukton Integrated Projects successfully brought three major PPP projects to financial close in 2008 despite the crisis on the financial markets. They included the office complex for the Information Management Group (IBG) and the Tax Administration in Groningen and the Kromhout Barracks in Utrecht. Renovation of the Ministry of Finance was completed in December 2008 and the building has been taken into operation. The company also tendered for the Tvärbana City project, a PPP concession for a light rail link in the public transport system in Stockholm, Sweden. In the Netherlands, it tendered for new infrastructure projects concerning the A12 Utrecht-Veenendaal and A15 Maasvlakte-Vaanplein motorways and new accommodation projects for the Government Buildings Agency. The unsolicited proposal Amfora (Alternative Multi-Functional Underground Space Amsterdam) to create a new city under the Dutch capital will be followed up in 2009. At the beginning of March 2009, an additional agreement was signed with the Ministry of Defence on the realisation of a further thousand workplaces at the Kromhout Barracks. Related financing agreements have already been concluded.
 
Strukton Rail had to contend with a considerable drop in market volume in both the Netherlands and Germany. This led to strong pressure on capacity utilisation rates and narrower margins. Nevertheless, Strukton Rail performed better than the market as a whole, which is reflected in its market share. Underutilisation of the advanced railway equipment in the Netherlands and Germany could be offset in part in the other European home countries and on a number of projects in Denmark. Although revenue was slightly higher than in 2007, the profit for the year was lower. In Norway, Strukton Rail strengthened its position through the acquisition of all outstanding shares in Betonmast Bane AS. Strukton Rail expects market volume in the Netherlands to remain low in 2009. A cautious improvement, however, seems to be emerging. The outlook in Scandinavia and the other countries in which Rail is active is predominantly positive.

At Strukton Civil, the strategy of increased scale and specialisation led to sharp growth in revenue and profit. Not only did the company carry out large, usually complex jobs, including the major maintenance of trunk roads in the provinces of Brabant and Limburg and in the Rotterdam region, but also many other engagements in the Netherlands. In South Korea, a good start was made on the construction of the deepest and longest immersed tunnel in the world. Strukton Civil broadened its position in the supply chain through the acquisition of Grondbank Nederland, a certified specialist in the processing of clean and slightly contaminated soil, dredging spoil and secondary building materials.

Collaboration
Together with Strukton Construction & Property, Strukton Civil is working on several combined projects such as the town hall and bus station in Zaanstad, the Damsterdiep car park in Groningen, the enlargement of Groningen University and the PPP project for the IBG and Tax Administration in Groningen (DUO²). Strukton Worksphere is also involved in this PPP project. As a consortium member, Strukton Civil worked on the Holland Bridge project on the A1-A6 motorway. Several new alliance contracts were also concluded in 2008, including one for the entrance to Oosterdok Island in Amsterdam with a hotel and an underground car park.

Strukton Construction & Property incurred a loss again in 2008. A large number of project delays in the second half of the year led to serious losses on capacity utilisation. Strukton Construction & Property has traditionally had a high exposure to the private market, where the slowdown is currently the greatest. Measures have been taken to bring the size of the organisation back into line with the current order book. A number of large projects were delivered during the year. New projects and maintenance contracts were also added to the order book, including three building-related PPP projects. In this light, Strukton Construction & Property expects to increase its revenue in 2009 and return to the black.

Strukton Worksphere can look back on an excellent year with a considerable increase in its profit even though the company made substantial investments in setting up a project organisation and a special business unit, Operations Management. This business unit will respond to the growing demand for integrated (technical, structural and facility management) solutions. With its extensive knowledge of the lifecycle costs of critical building services, Strukton Worksphere played a decisive role in the acquisition of the recent PPP projects. Further growth of the organisation is still being restrained by the tight labour market. On 1 February 2009, 110 employees were acquired from Dalkia to fill some of the vacancies.