Arcadis First Quarter 2024 Trading Update

Continued client demand driving strong pipeline while delivering significant margin
expansion
• Significant multi-year project wins resulted in an order intake of €1,129 million, organically up by 6.0%, with
investment programs increasingly contributing
• Record backlog net revenues at €3,316 million
• Net revenues of €968 million, organically up by 4.4% despite 1.2 fewer working days
• Operating EBITA margin increased to 10.7% (Q1 ‘23: 9.8%)

Amsterdam, 30 April 2024 – Arcadis, the world’s leading company delivering data-driven sustainable
design, engineering, and consultancy solutions for natural and built assets, secured significant multi-
year project wins and delivers continued profitable growth in the first quarter of 2024; with Net
Revenues of €968 million and an improved operating EBITA of 10.7% (Q1‘23: 9.8%).

Alan Brookes, CEO Arcadis, said: “Arcadis delivered another strong quarter with significant multi-year
project wins and continued margin expansion. Client demand was particularly strong in environmental
remediation, energy transition, rail and highways, with projects funded by large investment programs
increasingly contributing to our backlog and securing revenues for years to come. The need for our
complementary and integrated set of sustainable and digitally enabled services continues to drive increased
levels of business collaboration. Our long-standing relationships, global expertise and complementary
services allow us to enhance our leading market positions. I am convinced that with the talent and expertise
within the organization, we are well positioned to seize the market momentum and deliver profitable growth.”

KEY FIGURES
in € millions First Quarter
Period ended 31 March 2024 2024 2023 change
Net revenues 968 940 3%
Organic growth (%)1) 4.4% 12.3%
Operating EBITDA2) 131 120 8%
Operating EBITDA margin (%) 13.5% 12.8%
EBITA 97 87 11%
EBITA margin (%) 10.0% 9.2%
Operating EBITA2) 104 92 12%
Operating EBITA margin (%) 10.7% 9.8%
Net Working Capital (%)3) 11.6% 12.1%
Days Sales Outstanding (days)3) 64 67
Free Cash Flow4) -97 -108
Net Debt 963 1,072 -10%
Order intake 1,129 1,062 6%
Organic order intake (%)1) 6.0% 10.5%
Book-to-Bill5) 1.17 1.13 3%
Backlog net revenues 3,316 3,192 4%
Backlog organic growth (%, qtd)1) 4.8% 3.9%
Backlog organic growth (%, yoy)1) 4.9% 4.3%
1)
Underlying growth excl. impact of FX, acquisitions, footprint reductions, winddowns or divestments
2)
EBIT(D)A excluding restructuring, integration, acquisition, and divestment costs
3)
2023 revised to reflect the adjustments to the provisional opening balances of acquired entities recognized 31 Dec. 2022 (in accordance with IFRS 3.49)
4)
Free Cash Flow: Cash Flow from Operations adjusted for Capex and Lease liabilities
5)
Order Intake / Net Revenue

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INCOME STATEMENT
Net revenues totaled €968 million and increased organically by 4.4%, despite 1.2 fewer working
days in the quarter compared to last year. Growth was solid in most markets while North American
growth was outstanding. We saw continued strong momentum in Resilience, Mobility and
Intelligence, while project choices at Places during 2023 resulted in lower growth for this quarter.
The operating EBITA margin improved to 10.7% (Q1‘23: 9.8%) driven by operating leverage, cost
synergies, and the Middle East winddown.

ORDER INTAKE & BACKLOG

Order intake was strong in the quarter, growing organically by 6.0% to €1,129 million, resulting in a
strong book-to-bill of 1.17x, and a record backlog of €3,316 million (Q1‘23: €3,192 million). The
strong order intake reflected continued solid client demand for Resilience and Mobility solutions,
offsetting lower intake at Places due to project selectivity. We continue to see ample opportunities in
our project pipeline or “soft” backlog, while we enhance the positions in our high-growth end
markets and seize the opportunities from stimulus-driven investments.

BALANCE SHEET & CASH FLOW

Net working capital as a percentage of annualized gross revenues improved to 11.6% (Q1‘23:
12.1%1)) and Days Sales Outstanding (DSO) was 64 days (Q1‘23: 67 days1)). As a result of
disciplined working capital management, free cash flow in the quarter was €-97 million (Q1‘23:
€-108 million), in line with seasonal trends, despite the first interest payment of €24 million on our
Eurobond issued February 2023.
1)
2023 revised to reflect the adjustments to the provisional opening balances of acquired entities recognized 31 Dec. 2022 (in accordance with IFRS 3.49)

PERFORMANCE BY GLOBAL BUSINESS AREAS

RESILIENCE
(37% of net revenues)
in € millions First Quarter
Period ended 31 March 2024 2024 2023 change
Net revenues 354 332 7%
Organic growth1) 8.2% 13.0%
Order intake 449 423 6%
Backlog net revenues 1,063 980 8%
Backlog organic growth (%, qtd)1) 9.7% 10.0%
Backlog organic growth (%, yoy)1) 10.8% 10.6%
1)
Underlying growth excl. impact of FX, acquisitions, footprint reductions, winddowns or divestments

Resilience performed strongly across the board, with continued solid results in our largest markets,
North America and the UK. Multiple significant wins in Water relating to AMP8 in UK, Environmental
Restoration and Energy Transition have substantially contributed to the quarter’s order intake and
provide revenue visibility for the remainder of the year.

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PLACES
(39% of net revenues)
in € millions First Quarter
Period ended 31 March 2024 2024 2023 change
Net revenues 374 388 -3%
Organic growth (%)1) -1.1% 8.7%
Order intake 383 407 -6%
Backlog net revenues 1,493 1,555 -4%
Backlog organic growth (%, qtd)1) 0.0% 1.3%
Backlog organic growth (%, yoy)1) -4.0% -2.5%

Good revenue growth in North America and Europe was offset by the effects of strategic refocus on
core competencies at Arcadis DPS and repositioning of China towards project management for
international clients. We saw good order intake in the quarter in Continental Europe, in particular in
data center design for technology clients and retrofitting of federal client’s assets such as national
hospitals and universities. The pipeline is solid on the back of tightening regulation and investment
programs, such as the EU Directive on Energy for Buildings and the US Chips Act.

MOBILITY
(22% of net revenues)
in € millions First Quarter
Period ended 31 March 2024 2024 2023 change
Net revenues 216 200 8%
Organic growth1) 8.2% 15.3%
Order intake 273 211 30%
Backlog net revenues 637 545 17%
Backlog organic growth (%, qtd)1) 10.3% 1.8%
Backlog organic growth (%, yoy)1) 18.5% 4.7%

Mobility revenue growth continued to be strong across solutions with outstanding results for the US.
Stellar backlog growth was driven by large wins in all key markets on the back of large government
investment programs such as Hudson Tunnel Project of the Gateway Development Commission
and California High-speed Rail in the US, and Ontario’s Pape Tunnel Underground Stations in
Canada. The pipeline remains strong driven by the need for efficient transportation systems and our
sustainable, data-driven offerings. Global collaboration and the utilization of Global Excellence
Centers (GECs) is positioning Arcadis well to win large projects.

1)
Underlying growth excl. impact of FX, acquisitions, footprint reductions, winddowns or divestments

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INTELLIGENCE
(2% of net revenues)
in € millions First Quarter
Period ended 31 March 2024 2024 2023 change
Net revenues 23 21 8%
Organic growth1) 7.2%
Order intake 24 21 14%
Backlog net revenues 123 111 11%
Backlog organic growth (%, qtd)1) 0.3% 0.0%
Backlog organic growth (%, yoy)1) 9.4%
1)
Underlying growth excl. impact of FX, acquisitions, footprint reductions, winddowns or divestments

Good revenue growth was achieved especially in North America. Backlog growth was driven by
order intake from large Key Clients, such as Ontario Ministry of Department for our Enterprise
Decision Analytics (EDA) solution and Nevada Department of Transportation for multiple digital
solutions including Travel-IQ. We continue to invest in collaboration with our other businesses, to
leverage existing relationships and deliver a wide range of digital solutions and services to our
clients.

2024-2026 STRATEGY “ACCELERATING A PLANET POSITIVE FUTURE”

On 16 November 2023 Arcadis presented its 2024-2026 Strategy “Accelerating a planet positive
future” and its 2026 financial targets; these include: organic net revenue growth of mid to high single
digits over the cycle, operating EBITA margin of 12.5% in 2026, Net Debt / Operating EBITDA of
1.5-2.5x with an Investment Grade credit rating and a dividend payout ratio of 30-40% of Net
Income from Operations.

FINANCIAL CALENDAR
• 8 May 2024 – Annual General Meeting of Shareholders
• 25 July 2024 – Second quarter and half year 2024 results
• 31 October 2024 – Third quarter 2024 trading update
Please visit https://www.arcadis.com/en/investors/investor-calendar for more information on the
upcoming investor events.

ARCADIS INVESTOR RELATIONS

Christine Disch | +31 (0)615376020 | [email protected]

ANALYST WEBCAST
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q1-2024

ABOUT ARCADIS
Arcadis is the world’s leading company delivering data-driven sustainable design, engineering, and
consultancy solutions for natural and built assets. We are more than 36,000 architects, data
analysts, designers, engineers, project planners, water management and sustainability experts, all
driven by our passion for improving quality of life. As part of our commitment to accelerating a planet
positive future, we work with our clients to make sustainable project choices, combining digital and
human innovation, and embracing future-focused skills across the environment, energy and water,
buildings, transport, and infrastructure sectors. We operate in over 30 countries, and in 2023
reported €5.0 billion in gross revenues. www.arcadis.com

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REGULATED INFORMATION
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meaning of Article 7(1) of the EU Market Abuse Regulation.

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reflected in such forward-looking statements are based on reasonable assumptions, our actual
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