Profit after taxes is expected to grow by 15% from €82.5 million in 2006 to approximately €95 million in 2007

5/16/2007, 8:24 AM (Source: GlobeNewswire)
- Revenues in 2007 are projected to grow by about 25% to
approximately €3.7 billion.
- At €3.6 billion, the orderbook at the end of March 2007 is at a
respectable level.
- The Denne Construction (United Kingdom), Burgers Ergon, Oevermann
(Germany) and Bouwfonds-Langewold acquisitions contribute to the
growth in the operating result, revenues and orderbook.
- The sale of the INIT Amsterdam office building has a positive
effect on the financial position and the capital invested.


Result trends
The profit after taxes for 2007 is projected to be approximately €95
million (2006: €82.5 million). This implies an increase of
approximately €13 million or about 15%.
Furthermore, in 2006 there were two nonrecurring income items
totalling €12 million (€5 million income from the sale of a
participating interest and a €7 million tax benefit) and a
nonrecurring charge of €9 million (fine related to the EC Bitumen
Affair). The Burgers Ergon, Oevermann (Germany) and
Bouwfonds-Langewold acquisitions completed in the first quarter of
2007, as well as the Denne Construction acquisition completed in the
last quarter of 2006, each separately positively contribute to the
increase in the 2007 operating result.

Property Development Netherlands
The 2007 operating result for the Heijmans Property Development
division is expected to at least reach the superior levels achieved
in 2006 (€80 million). The division has set the sale of approximately
4,000 homes as its target for 2007. In spite of favourable housing
market conditions, spatial planning procedures continue to regularly
cause delays in the sale and development of homes. The risk profile
of delivered but not yet sold commercial real estate has
significantly decreased as a result of the €96 million sale of the
INIT Amsterdam office building. The €5 million in income after taxes
resulting from this sale is recorded at the holding level in view of
the fact that in the past, the charges related to the risks
associated with this office building were also recorded at this
level. As of 30 April 2007, approximately 14,500 m2 delivered unsold
commercial real estate remains, of which approximately 8,300 m2 has
not been leased.

Building Netherlands
The 2007 operating result of the Heijmans Building division is
expected to show a limited increase (2006: €6 million). The new
division management team appointed in early 2007 is currently
primarily focused on the necessary organizational changes required to
further improve risk and project management competences. One of the
intended organizational measures involves the creation of a separate
business unit for larger, as well as complex projects. Furthermore,
for reasons of efficiency and to create optimal economies of scale, a
number of regional units will also be amalgamated. The regional units
will primarily focus on regular projects, as well as the construction
of homes developed and sold by the Property Development division from
the land bank. In addition, investments in the development of project
management knowledge and skills will be increased.

Infrastructure Netherlands
Projections for 2007 call for the Heijmans Infrastructure division to
achieve approximately the same operating result as it did in 2006
(2006: €25 million). The volume of smaller projects is increasing at
slightly improved price levels. The contribution to profits derived
from the new larger projects acquired since 2006 is, for the time
being, expected to be insufficient to produce an increase in the
operating result this year.

Burgers Ergon Acquisition
The Burgers Ergon acquisition in January 2007 fulfils a component of
the strategy that calls for installation engineering technologies and
the associated maintenance activities to supplement current
operations. The Burgers Ergon result is expected to grow in relation
to 2006 and make a positive contribution to the Heijmans' 2007
operating result. The Burgers Ergon results will be reported as a
separate segment, starting with the 2007 semi-annual results.

Foreign Operations
The 2007 operating result for the activities in Belgium, Germany and
the United Kingdom is expected to increase as result of autonomous
growth, as well as completed acquisitions (2006: €20 million). The
Denne Construction and Oevermann acquisitions also contribute to
improved operating results in England and Germany. Improved results
are also being achieved in both countries on the basis of existing
activities. A slight improvement in the operating result is projected
in Belgium.

Revenue and orderbook trends
2007 revenues are expected to rise by 25% to approximately 3.7
billion (2006: €2.9 billion). For 20% this relates to the completed
acquisitions of Denne Construction (United Kingdom, included in the
consolidation as of October 2006), Oevermann (Germany) and Burgers
Ergon (both included in the consolidation as of January 2007).
Current estimates would indicate that approximately 70% of 2007
revenues will be realized in the Netherlands and about 30% abroad.
The orderbook at 31 March 2007 stood at almost €3.6 billion (end
2006: €3.2 billion) and is of good quality. The total Heijmans
orderbooks based on or related to its land positions is, however,
significantly higher and amounts to approximately €7 billion.

Trends in the Netherlands housing market
The government has announced its goal of adding an average of 90,000
new homes per year to the housing inventory over the coming years.
Planning and procedural delays, particularly on the municipal side,
continue to frustrate production, however. The demand for homes
remains consistently high. Prices rose in 2006 and also exhibited an
increase during the initial months of 2007. Heijmans' home building
activities are therefore expected to experience another good year.
Homes will be developed in part on Heijmans property or on properties
on which Heijmans has options and partially on lands associated with
competitive tenders awarded to the company. During the last few
months, Heijmans once again won development rights based on
competitive tenders, for example in Leusden (De Biezenkamp). A
comprehensive school complex is being developed here, including
approximately 400 regular and/or care apartments and parking
facilities. Based on owned lands and awarded competitive tenders,
Heijmans has a development inventory of approximately 45,000 homes
and 600,000 m2 of commercial real estate. More than ever, aside from
location, the product is a determining factor in the success of a
development project. Heijmans' development approach is target
group-oriented and involves new products such as water-based homes
and seniors' homes and continuously evolving products such as
Wenswonen® (Tailor Housing).

Trends in the Netherlands building market
The volume of the market for the construction of homes and
non-residential buildings is growing. This means that further price
increases can be expected on the purchasing side in 2007 and that the
already experienced labour market shortage will continue to increase.
Clients are noticeably responding to this trend by making use of
other forms of tendering, aside from public or multiple private
tendering procedures. The number of tenders handled by the building
team is consequently increasing. This is how contracts such as the
joint venture contract for the construction of the Rabobank's head
office in Utrecht (€145 million) were acquired.

Trends in the Netherlands infrastructure market
During the initial months of 2007, a number of large-scale projects
was brought to market. This resulted in a slight increase in price
levels and the use of available capacity. Additional tenders
involving large projects are expected to be issued during the coming
months.
The infrastructure market is also struggling with shortages of
qualified personnel. Heijmans wants to set itself apart from the
competition not only on the basis of its design and engineering
capacity, but also its innovative working methods and, for example,
by shortening project execution timeframes, as well as limiting
inconvenience to other road users. Examples of recent contracts
acquired this way include the "Maintenance of State Highways in the
Province of Zeeland" and the "Widening of the A2 Culemborg-Deil" with
contract values of €11 and €85 million, respectively.

Trends in the Netherlands installation engineering market
The installation engineering market is also characterized by growth
in volume and a larger share of this growth involves larger and more
complex projects in addition to the traditional labour-intensive
contracts of relatively short duration. The Burgers Ergon orderbook
improved, particularly as a result of projects with better margins
and longer duration. Contracts were recently awarded, for example for
the construction of the new PGGM head office (€11 million), Twente
Technical University (€18 million) and the University of Amsterdam
(€31 million). Aside from this, during the coming months, new larger
and more complex projects will be tendered, such as the Jeroen Bosch
Hospital and the Kromhoutkazerne barracks. The primary area of
concern related to the installation engineering market currently is
the availability of qualified personnel.

Trends related to activities external to the Netherlands
Many projects in the road construction market segment in Belgium are
in the preliminary preparation stage and are expected to enter the
production phase starting in 2008. The market for the sale of
apartments appears to have peaked, while the volume of the building
market, particularly related to cabling and pipes, is expanding.
Growth is expected in the German market this year, particularly in
the road construction segment. The concerted action of existing
activities in conjunction with the Oevermann activities acquired at
the beginning of this year are proceeding according to plan.
The market in Britain also remains positive. Heijmans' activities in
the social housing and public buildings market have been expanding as
a result of the Denne Construction acquisition in October 2006. A few
contracts recently awarded, totalling approximately €170 million, are
contributing to the further growth of Heijmans' activities in this
area in Britain. This includes projects in Ashford Kent (€105 million
new construction contract, including infrastructure for 442 homes and
the renovation of existing buildings) and in south-west Britain where
Leadbitter is developing 80 homes).

Financial position
Over €100 million was spent on the Burgers Ergon (€70 million),
Oevermann (€15 million) and Bouwfonds-Langewold (€18 million)
acquisitions during the first quarter of 2007. The associated
curtailment of financing room was largely offset by the sale of the
INIT Amsterdam with revenues amounting to €96 million. The current
financing room is sufficient to absorb the usual seasonal
fluctuations and to be able to finance the expected nonrecurring
income tax pre-payment of approximately €40 million in 2007. This
payment is a result of changes to the income tax act effective in
2007, related to the fiscal accounting of profits on projects.
Heijmans' financial position is healthy. The goal is to maintain the
net debt/EBITDA ratio below 3.5 and the EBITDA/interest paid ratio
greater than 3.5.

2007 semi-annual figures
Heijmans will present its semi-annual results prior to the opening of
the stock exchange on 23 August 2007.


For additional information
Media
Frank
Janssen
Director of Corporate Communications
+31 73 543 51
69
fjanssen@heijmans.nl

Analysts
Fons van Lith
Director of Investor Relations
+31 6 51314952
flith@heijmans.nl


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