Imtech in the first half of 2007: robust growth, heading for 5 billion revenue in 2012

21 augustus 2007 Highlights first half of 2007 * Robust growth: o EBITA: +38%, 62.1 million euro (organic +16%) o Net profit: +30%, 35.1 million euro o Revenue: +18%, 1,517 million euro o Order portfolio: +19%, 3,549 million euro o Operational EBITA margin: up from 4.0% to 4.6% * Recovery continued in the Benelux, Germany profited from the positive effects of economic growth, robust growth in the UK & Spain and explosive growth in ICT & Marine * An update of the successful growth strategy and refinancing enable further growth * Objective: revenue of 5 billion euro in 2012, whilst maintaining an operational EBITA margin of 6% * Intended share split (3:1) 21 August 2007 René van der Bruggen, Chairman of the Board of Management of the European technical services provider Imtech N.V.: 'During the first half of this year our development was excellent with a 38% increase in EBITA, of which 16% was organic. This robust growth was the result of our strong market positions in growing markets, our technological expertise and our successful acquisition policy. The operational EBITA margin rose from 4.0% to 4.6%. In the Benelux business continued to improve, in Germany we profited from the positive effects of the economic growth, in Spain, and in particular the UK, Imtech's growth was excellent. In the technological market of ICT & Marine our growth was explosive - EBITA rose by 66%. And we once again acquired a number of successful companies that fit in well with Imtech. The order portfolio reached a record high of over 3.5 billion euro. Our strategy is paying off. We want to continue this growth in the future, which is why we have updated our growth strategy. Our objectives: revenue of 5 billion euro in 2012 while maintaining our target of an operational EBITA margin of 6%. Robust growth Imtech N.V. can look back on an excellent first half of 2007 with EBITA, net profit, revenue and the order portfolio all making robust growth. The organic growth was robust and the contribution of the companies acquired last year and during the first half of this year was good. EBITA rose by 38% (17.0 million euro) from 45.1 million euro to 62.1 million euro, of which 16% was organic. Net profit in the first half of 2007 rose by 8.2 million euro to 35.1 million euro, an increase of 30%. Revenue rose to 1,517 million euro (first half of 2006: 1,290 million euro), an increase of 18%. This shows that EBITA growth was far greater than revenue growth. The order portfolio grew by 19% and reached the historic high of over 3.5 billion euro (3,549 million euro) compared with 2,978 million euro in the first half of 2006 (an increase of 571 million euro). There has also been a further improvement in the quality of this portfolio. The operational EBITA margin (before deducting group management expenses) rose from 4.0% to 4.6%. The combination of technologies (electrical engineering, ICT - information and communications technology - and mechanical engineering), innovation and positions attained in the various geographical and technological markets as well as technological expertise, rapidly increasing size and successful acquisition strategy meant that with improving market conditions Imtech's development during the first half of 2007 was excellent. The Imtech strategy, which has once again proven its worth, has been updated to enable us to continue to grow in the future. Imtech has also undergone a refinancing to create the right conditions for a healthy financing of its growth strategy. Acquisitions To further strengthen Imtech's strategic portfolio and achieving future growth, the following acquisitions, which fitted in with Imtech's strategy, were completed: * Strengthening of the position in the mobility market through the acquisition of Peek Traffic (April 2007). Peek Traffic offers high-tech and intelligent solutions to the fast-growing mobility markets in the UK, Ireland, the Netherlands, Belgium, Germany and (parts of) Eastern Europe. Peek Traffic's annual revenue, with over 600 employees, is around 90 million euro; * Strengthening of the position in the UK through the acquisition of Aqua Group - a multidisciplinary technical services provider and maintenance specialist in the East England region (May 2007). Aqua Group's annual revenue is around 60 million euro with over 210 employees; * Strengthening of the marine position in the USA through the acquisition of Seacoast Electronics (March 2007). Seacoast is a full-service marine contractor and service provider with a strong position in the marine market of the USA. Seacoast's annual revenue, with 50 employees, is over 11 million euro; * Strengthening of the ICT activities in Germany through the acquisition of BMS Systems IT Solutions (May 2007). BMS is a strong regional player (Frankfurt) in the field of IBM software. BMS' annual revenue is around 6 million euro with 25 employees; * Strengthening of the position in Luxembourg through the acquisition of part of the activities of Cegelec (maintenance services and energy, January 2007) and all the activities of Hoffmann (specialist in electrical engineering and security, June 2007). Combined annual revenue of nearly 3 million euro and 53 employees. The total annual revenue of these acquisitions amounts to around 170 million euro. The acquired companies employ over 900 staff. The total purchase price (including earn-out) was 116 million euro. All these acquisitions contribute towards earnings per share. The expected annual EBITA of the companies acquired during the first half of 2007 is around 15 million euro. Only a small portion of this is included in the 2007 half-yearly figures. Segmentation Imtech is segmented into four clusters: * The Benelux (Buildings, Industry, Infra); * Germany & Eastern Europe (Buildings, Industry); * The UK & Spain (Buildings, Industry); * ICT & Marine (ICT, Technology, Marine, Mobility). Benelux: the recovery continues Imtech is one of the largest technical services providers in the Benelux. In the first half of 2007 the activities developed well and the good market position provides a solid basis for further growth. Revenue rose by 11% to 487 million euro (first half of 2006: 439 million euro) and EBITA rose by 31% to 15.9 million euro (first half of 2006: 12.1 million euro). The order portfolio showed a healthy development and increased by 8% to 1,100 million euro (first half of 2006: 1,015 million euro). In Belgium and Luxembourg growth continued while in the Netherlands, where market conditions have been difficult in recent years, the recovery continued and prices improved although competition remained fierce. Partly due to more selective project acquisition EBITA rose faster than revenue and resulted in an EBITA margin of 3.3% (first half of 2006: 2.8%). The 'Imtech heading for the top' recruitment campaign was successful and, in part due to this campaign the number of technical staff rose by 793 (13%) to 6,920 (30 June 2006: 6,127). Buildings The demand for a total approach increased, as did the number of building teams, partnering with customers and co-operation with suppliers. A successful start was made on the maintenance contract for all the Shell offices in the Netherlands. This contract is worth 100 million euro. For Corus a total approach was developed. Imtech is the technology partner for the new Stedelijk Museum (Museum of Modern Art) that will be built in Amsterdam. In Brussels orders were received for the Sheraton hotel, the technological renovation of a Fortis building and the upgrading of the Swedish Embassy. The mix of projects reflects Imtech's broad spectrum. Energy saving and improved air quality are key areas of interest. The acquisition of part of Cegelec and all the activities of Hoffmann has strengthened the position in Luxembourg. In the care sector Imtech is developing well, for example with orders for the large Jeroen Bosch hospital in the Netherlands and the Sint-Trudo hospital in Belgium. Excellent progress has been made in the field of security, for example in the financial sector. Imtech also maintains the X-ray security systems in several premises of the European Parliament in Luxembourg. Industry The industry market improved across a broad front. Once again Imtech was able to strengthen its position in this market. The large (300 million euro) maintenance contract for Shell in Pernis and Moerdijk was started successfully. New orders were received from Teijin Twaron, BASF and for a bio-ethanol factory for sugar producer Südzucker. Growth was achieved in the industrial automation market with orders from, among others, Opel, Volvo and Audi. Growth was robust in the international oil and gas market. The export of technological solutions from the Netherlands to oil and gas producing countries increased. Special attention was paid to Eastern Europe and Imtech is now the technology partner for the Romanian national oil company, Petrom. Imtech focussed, with success, on innovative solutions in the fields of energy (saving) and the environment, such as biomass, heat/power combination and integrated power stations. At Schiphol airport Imtech is working on an innovative solution whereby harmful kerosene emissions are converted into electricity - a technology in which there is worldwide interest. Infrastructure The infrastructure market improved, a situation from which Imtech was able to benefit. After several slow years revenue and EBITA rose. Particularly good progress was made in the Dutch energy-saving lighting market, for example with an order for tailor-made energy-economical and safe lighting along the A50 motorway and public lighting based on sustainable LED technology (Light Emitting Diode). The market for traffic solutions also improved. Imtech developed innovative and safe traffic systems for the A2 motorway and, in co-operation with the acquired Peek Traffic, carried out a traffic signal project. This acquisition has considerably strengthened Imtech's market position. The 75 million euro maintenance contract at Schiphol airport started smoothly. Imtech acquired the technological maintenance of the flood barrier, which protects millions of residents from possible flooding. A good track record is being built-up in the railway infrastructure market. One new order is for the doubling of the track on the Woerden-Harmelen route. The co-operation with the Belgian network managers Eandis and Elia was expanded. Germany & Eastern Europe: positive effects from German economic growth Imtech experienced the first effects of the improving German economy right across the market. In 2006 the investment climate in the industry market improved as a result of a rising domestic demand and increasing exports. In the first half of 2007 the buildings market also improved. Imtech's position in several Eastern European countries was strengthened. With revenue 4% higher at 404 million euro (first half of 2006: 389 million euro) EBITA rose 21% to 15.9 million euro (first half of 2006: 13.1 million euro). As a result the EBITA margin also increased from 3.4% to 3.9%. The order portfolio showed a healthy 14% growth and reached well over a billion euro (1,117 million euro) compared with 984 million euro in the first half of 2006. At 4,062 the number of employees remained virtually unchanged (30 June 2006 4,031). Buildings Progress was achieved in several German market segments. Imtech is involved with the technological expansion of Frankfurt airport. In the banking segment more and more digital payment traffic is necessitating the renewal/expansion of existing computer capacity and Imtech offers total solutions, such as the one for Citibank's Frankfurt data centre. But Imtech is also active in the cultural sector (Deutsche Opera Düsseldorf), the education sector (Martin Luther University Halle-Wittenberg), the leisure sector (high-tech Wellness centre in Berlin-Zehlendorf) and the private office market (an office of the music channel MTV). In the care sector Imtech also developed into a strong partner in Germany, for example through the acquisition of all the energy solutions in the Bayreuth hospital which, thanks to the Imtech approach, has reduced its energy consumption by 15% per annum. In Poland Imtech has built up a strong position organically and was, for example, responsible for all the technological solutions in a number of Polish mega-cinemas. Industry The market potential showed further growth and Imtech was active on many fronts. For Siltronic in Freiburg Imtech was responsible for the extension of a factory producing mono-crystals, which form the basis for micro and nano electronics. The core of the project was high-tech clean room technology, a technology with which Imtech is also active in the bio-technology and pharmaceutical segments. In the automotive industry Imtech, the market leader in the development, construction and exploitation of advanced test technology, equipped a high-tech research and innovation centre in Munich for BMW and also worked for Audi. Imtech is a major player in the growing energy management market. The demand for energy-economic, alternative and decentralised energy supplies is increasing. Imtech offers total solutions that lead to substantial energy savings and reduced greenhouse gas emissions. Imtech was responsible for the technology in a bio-mass power station in Wittenberg-Piesteritz and also upgraded existing energy supplies for the city of Munich. Imtech is increasingly active in a number of Eastern European countries including Poland, Bulgaria, the Czech Republic and Romania. The orders from existing German customers carried out by Imtech in these countries included the technology in a new factory in Bulgaria for Liebherr and test technology in the Czech Republic for Skoda. The UK & Spain: robust growth Imtech developed positively in the UK & Spain cluster. Revenue and EBITA rose substantially, particularly in the UK, and further growth was also achieved in Spain. Revenue rose by 22% to 192 million euro (first half of 2006: 157 million euro) and EBITA rose by 19% to 13.4 million euro (first half of 2006: 11.3 million euro). The order portfolio showed robust growth and increased by 36% to 416 million euro (first half of 2006: 305 million euro). Because revenue rose faster than EBITA and the proportion of high-return maintenance contracts decreased, the EBITA margin fell slightly to a, still high, 7.0% (first half of 2006: 7.2%). The number of employees rose by 33% to 2,377 (30 June 2006: 1,786). Buildings In the UK, Imtech's excellent reputation and broad market scope made further growth possible. Imtech is active in the Greater London, the Midlands (around Nottingham) and south east England (around Cambridge). The prestigious redevelopment of the building which had formerly housed the Ministry of Defence (North Cumberland House Hotel) was completed. New projects included the technological renovation of the Royal Court Theatre and an extension of the Natural History Museum. In the Midlands various new buildings in the large-scale Clarence Dock development (an attractive urban waterfront) were acquired. Aqua Group, acquired in May 2007, made a good start as part of Imtech and was able to expand its position with Cambridge University. In Spain investments in offices continued to rise and the renovation and maintenance market improved. The newly-established separate maintenance unit made a good start by acquiring maintenance contracts for a large shopping centre in Cartegena and three hotels in Barcelona. New projects were the technology in an underground bus station in Madrid and the Alcalá Magna shopping centre. A new office was opened in the important Seville economic region. Industry Imtech's industrial activities are still only of a modest size in the UK. An automatic warehouse was equipped for manufacturer Boots. In Spain Imtech is one of the strongest players in the industrial assembly, maintenance, shutdowns and revamping market with a concentration on the (petro)chemical and steel industries. The customer base was expanded yet again. Many customers are preparing for major shutdowns and upgrading so as to meet the growing demand for oil products. Substantial tenders were prepared. Ongoing projects were major shutdowns for BP and Cepsa. Infrastructure Imtech occupies a very strong position in the UK water (treatment) market. One new project was the technology in a new water treatment centre to the northeast of London for the regional drinking water producer Anglian Water Services. This centre will provide around one million people with clean water produced in an environmentally-friendly manner. ICT & Marine: explosive growth Explosive growth was achieved in this technological cluster. Revenue rose by 42% to 434 million euro (first half of 2006: 305 million euro) and EBITA rose by 66% to 24.9 million euro (first half of 2006: 15.0 million euro). As a result, the EBITA margin increased substantially from 4.9% in the first half of 2006 to 5.7% in the first half of 2007. The order portfolio also showed good growth - it increased by 36% and, at 916 million euro (first half of 2006: 674 million euro), is approaching the one billion euro milestone. The number of employees rose by 28% to 4,232 (30 June 2006: 3,304) partly due to the acquisitions. ICT In the ICT market a growth spurt was achieved. ICT (information and communication technology) is increasingly forming a major component of Imtech's total solutions. The goals are to build-up an organic ICT position, improve profitability and develop innovative ICT solutions for and in co-operation with other Imtech companies. In this context the internal co-operation was intensified. The need for storage and bandwidth increased and this went hand-in-hand with a growing complexity in software, hardware and innovative web services. Both Imtech ICT Netherlandsand Imtech ICT Germany(the last year acquired Fritz & Macziol) responded to this trend. Partnerships with global market leaders IBM and Microsoft were strengthened, partly through the acquisition of BMS Systems IT Solutions in Frankfurt. Imtech received three prestigious Awards from IBM. Growth was achieved in the Swiss financial services for the public institutions segment. The demand for Service Oriented Architecture (SOA) increased. This is an ICT concept that supports companies to analyse business processes and adapt them to changing market conditions. In the field of Business Intelligence Imtech, one of the strongest players, received a platinum Reseller Award from Cognos. The demand for ERP solutions also increased. Imtech developed innovative IBM solutions for companies in the paper industry. The fading of the line between 'home' and 'work' is increasing the need for mobility of information, for example through web 2.0 services and VoIP solutions (information and telephony via the Internet) for various lawyers and solicitors' offices. Technology The Technology activities achieved further growth, especially in the fields of access technology, energy-economical process technology (Fluid Bed Technology) and fire security. Imtech maintained all TNT's vehicle accesses. Imtech was also responsible for the fire security of oil tanks in Tunisia. The international parking activities showed a modest growth. Marine Imtech's solid market position (global top-5) enabled it to respond successfully to the trend towards further internationalisation. This meant Imtech was able to profit from the booming luxury mega-yacht market. Orders for a total of ten luxury mega-yachts (a length of between 100 and 160 metres) from Dutch, Russian, Chinese and German shipyards. Imtech worked on a number of large oil and gas projects (such as the high-tech 'Audacia' pipe layer for Allseas and mega-pontoons for Fairmount) and has several interesting tenders' outstanding. More and more navies are discovering the advantages of the innovative Imtech technology on board of their ships, for example the Turkish navy. The acquisition of Seacoast Electronics increased the number of marine offices in the USA to sixteen. The order portfolio in China increased to 240 vessels (tankers, crane ships etc.) with a combined value of over 120 million euro and Imtech is now active in tens of Chinese shipyards. Imtech has opened its own manufacturing facility which, as a result of the substantial order portfolio, has been busy right from the start. Mobility The acquisition of Peek Traffic has gained Imtech an excellent position in the fast-growing market for mobility, in which the ICT component is a major factor, in the UK, the Netherlands and parts of Eastern Europe. ICT is a fundamental driver for innovation and further margin increases. Co-operation with Imtech Infra and Imtech ICT will lead to a noticeable further strengthening of Imtech's position in the mobility market and this will generate a strong position for the development and execution of integrated projects in Europe. Imtech stands out due to its advanced project management, traffic management, and intelligent mobility solutions, ICT and execution capability. Peek Traffic's UK customers include the Highways Agency (manager of England's motorways and connecting roads) and Transport for London (manager of the road network in and around London). One important project is the NRTS project (National Roads Telecommunications Services), the high-tech data-backbone to which all the Highways Agency's roads are connected. This project is worth over 100 million euro. Imtech's position in the dynamic traffic solutions market is improving - 300 junctions in Glasgow, Edinburgh and Coventry were equipped with this type of intelligent solutions. Peek Traffic is one of the first players offering digital speed cameras to the Dutch mobility market. At many road junctions in for example Brussels and Eindhoven Imtech's high-tech mobility solutions are ensuring a minimum number of stops and improving throughput, which reduces emissions of harmful gasses. In Eastern Europe, especially Poland and Croatia, further growth was realised. Personnel On 30 June 2007 the number of employees was 17,626 compared with 15,279 on 30 June 2006 - an increase of 15%. This increase was the result of both organic growth (10%) and acquisitions (5%). The availability of qualified and experienced staff is the primary concern for the future and in view of this new activities and recruitment campaigns have been implemented on many fronts. This resulted in hiring hundreds of new employees. Contacts with education establishments have been strengthened further. Capital and financing On 30 June 2007 the shareholders' equity : total shareholders' equity and liabilities ratio was 19% (30 June 2006: 21%). Interest coverage was 7.2 (first half of 2006: 9.9). The shareholders' equity rose to 344 million euro. The profit over the first half of 2007 amounted to 36 million euro and the dividend paid out over the previous financial year amounted to 29 million euro. During the first half year the Company sold 99,000 shares for the exercising of staff option rights and, to cover a portion of the balance of exercised and newly awarded options, purchased 27,313 shares. The balance sheet total was 440 million euro higher than on 30 June 2006. This increase was mainly due to the acquisitions completed during the past twelve months and also the result of the organic growth of work in progress and receivables. The net cash position was 200 million euro negative (30 June 2006: 69 million euro negative). At the beginning of the year under review this position was 25 million euro negative. At 20 million euro negative the net cash flow from operating activities was 35 million euro higher than in the same period of the preceding year, mainly due to a relative reduction of the working capital commitment. The net cash flow from investment activities was 98 million euro negative, mainly as a result of acquisitions and investments in property, plants and equipment. The net cash flow from financing activities was 68 million euro negative due to the payment of dividend to shareholders and loans repaid at acquisitions. Overall, cash and overdrafts decreased by 186 million euro, which meant that on 30 June 2007 the balance of cash and overdrafts was 157 million euro negative. Refinancing In July 2007 a new multi-currency credit facility of 300 million euro was arranged. This new, committed facility will be used to cancel or repay existing (stand-by) facilities and, at the same time, provide the financing for further growth, both organic and through acquisitions. The facility is unsecured and the interest margin is linked to the net debt/EBITDA ratio. The new credit facility also serves the need for additional working capital arising from the rapid increase in scale of the activities. Imtech will also set up a group bank guarantee facility of around 550 million euro on behalf of the divisions and operating companies. The existing uncommitted bilateral credit facilities of around 200 million euro will be retained. The group bank guarantee that will be set up will, like the credit facility, benefit from Imtech's favourable credit profile and will lead to a substantial reduction in bank guarantee costs. This refinancing will enable Imtech to concentrate on the further achievement of its ambitious growth strategy. Intended share split The price of an Imtech share, which is listed on the Euronext Amsterdam stock exchange, rose by 75% in 2006 and 32% in the first half of 2007. On 30 June 2007 the price of the share had risen to 64.26 euro. To increase the tradability of its shares Imtech is intending a share split in the ratio of three new shares for each existing share. This share split is partly based on Imtech's confidence in its further growth and the achievement of its strategic goals for 2012. The amendment to the Articles of Association required for the share split will be discussed during an Extraordinary General Meeting of Shareholders that will take place on 1 October 2007 at the offices of Imtech N.V. in Gouda. Strategy update (scope: 2012) Imtech provides a cohesive package of technical services with a concentration on a number of European countries (the Benelux, Germany, Eastern Europe, the UK and Spain) and the, to an extent, international ICT & Marine market (ICT, Technology, Marine and Mobility). The combination of the technological core competencies electrical engineering, ICT (information and communication technology) and mechanical engineering is offered throughout the full depth (consultancy, design, engineering, implementation, maintenance management and maintenance services) in four markets (Buildings, Industry, Marine and Infrastructure/Mobility). This combination, together with the size of the company, distinguishes Imtech from the competition and gives it an unique profile. Continued growth since 1993 Since 1993 Imtech's strategy has been focussed on achieving increasing revenue with a higher EBITA margin and, therefore, improved profitability through: * robust organic growth in existing geographical and technological home markets; * strengthening its position through geographical acquisitions in the 'home' countries selected by Imtech in order to achieve at least a top-3 position in every Imtech country; * the acquisition of high-tech services in the, to some extent, international ICT & Marine market. This strategy has been successful: Imtech's revenue and EBITA have increased substantially every year since 1993. The CAGR (Compound Annual Growth Rate) in the period 1993 - 2006 was as follows: * revenue: 13.7% * EBITA: 20.8% This track record makes Imtech one of the fastest-growing technology companies in Europe. Scope for further growth Imtech has updated this successful strategy for the period until 2012. The most important conclusion is that Imtech's strategy offers sufficient scope for further growth until 2012. The geographical and technological markets in which Imtech operates offer sufficient possibilities for further organic growth and acquisitions. Trends and Imtech's strategic response The demand for technological services, and especially technical total solutions, is increasing across a broad front and is characterised by several trends. Imtech's strategy is aimed at responding actively to these trends both organically from within existing competencies and expertise and by intensifying internal co-operation and through the acquisition of new companies. Market trends The following communal market trends, the consequence of which is a rapid rise in investment in technology, are relevant for Imtech: * an increased demand for energy saving, alternative resources and solutions that contribute towards a better environment; * an increased demand for security from the authorities and in both the business and domestic environment; * an increased demand for care, health and welfare coupled with changes in the way the care is organised; * increased congestion and, as a result, an urgent demand for mobility solutions. In the energy and environment market Imtech has proven itself capable of developing innovative concepts, for example for energy contracting and the use of alternative energy sources. In the security market Imtech focusses on integrated, certified solutions with a guaranteed continuity and operational reliability. The challenge facing the care sector is to reduce costs, improve the care process and professionalise the maintenance of buildings and technology. Here too Imtech's answer is the integration of all the technological solutions. The same integration offers good solutions for improving safe traffic throughput, for example in the field of traffic management and intelligent traffic systems. The positions already achieved in the energy & environment, security, care & cure and mobility markets will be strengthened substantially in the coming years. Changing customer attitude More often customers are specifying their desired output (generally in the form of financial indices) and asking technical services providers how and with which concepts, services and technologies they can best achieve this output. Imtech is taking over more and more responsibility from customers who are concentrating on their own core-business. The trend towards the increasing outsourcing of the responsibility for technology in customers' primary and secondary processes is accelerating, generally combined with an up-scaling of projects or trajectories. This is partly the result of the increasing consolidation of the market through co-operation, mergers and acquisitions. In this context Imtech wants to increase its added-value. In concrete terms this means Imtech wants to make services like project management, asset management, project financing, risk management and energy contracting an integral component of the total services package. ICT as dominant factor The importance of software services in the technical services provision market is growing fast. More and more frequently ICT is forming the core of technological total solutions. From a strategic point of view Imtech wants to operate at the heart of primary and secondary processes in the buildings, industry, marine and infrastructure/mobility markets where Imtech's solutions are increasingly dominated by ERP, Business Intelligence and ICT applications. Which is why partnerships with global market leaders like IBM and Microsoft are gaining in importance. Imtech's strategic portfolio contains two 'types' of ICT: * 'hardcore' ICT: the spearhead of Imtech with ICT as a core business and which acts as an innovation and knowledge centre; * 'embedded' ICT: the integration of more or less standard ICT solutions into Imtech's technology services. Continuous transfer of knowledge and co-operation between both 'types' will result in Imtech achieving a dominant ICT position in the market. ICT is becoming a driver for increasing success in both the technological and geographical Imtech markets. Imtech will focus on: * creating internal co-operation and intensifying the interaction between existing ICT activities; * acquiring high-value ICT companies that fit within the Imtech profile; * strengthening existing partnerships with the global market leaders IBM and Microsoft so as to develop into a leading European partner. The labour market The shortage of technically qualified staff is a critical success factor. Not only are the education centres delivering fewer young qualified people, but slowly and surely a generation of older but also extremely experienced technicians are reaching retirement age. The technical know-how of people entering the labour market is insufficient to answer the market's demands, which means supplementary training is needed. Increasingly the available capacity of trained and qualified staff is a determining factor when it comes to awarding projects. Without human expertise, technological innovation is almost impossible. Imtech aspires to be the best employer in the technical services provision market. Imtech will fight the 'war for talent' that exists at every level of the scarce technical staff market. Additional attention will be paid to reputation management, branding, recruitment and training programmes and contacts with education establishments. Expansion of the geographical and technological scope In addition to the strategic strengthening of its position in existing 'home' countries, especially the UK, Spain and Eastern Europe, in the future Imtech wants to build-up a geographical position that, in terms of both market volume and expectations regarding the investment climate, business culture and availability of good acquisition candidates, meets Imtech's stringent criteria in several other countries: * Ireland; * Austria; * Scandinavia: Norway, Sweden and Denmark. Imtech also wants to further strengthen its technological position in the ICT, Technology, Marine and Mobility markets both organically and through acquisitions. Strategic action points Concrete action points for implementing this strategy are: * A focus on energy, environment, security, care and mobility; * Strengthening the industrial activities in the Netherlands; * Acquisitions in the field of ICT, especially in Belgium, the UK and Spain; * Strengthening the partnerships with IBM and Microsoft; * Strengthening the position in the UK, both geographically in the buildings and industry markets and in the water and waste water treatment market; * Strengthening the position in Spain, both technologically and geographically; * Building-up the desired positions in Ireland, Austria and Scandinavia through acquisitions; * Strengthening the position in a number of Eastern European countries; * Further strengthening of the position of the international marine activities through both organic growth and acquisitions; * Increasing the added-value by strengthening existing activities in the field of project management, asset management, project financing, risk management and energy contracting; * The development of a preferred position in the technical labour market. Objective On the basis of this strategic update Imtech has formulated the following objective: revenue to reach 5 billion euro in 2012, whilst maintaining an operational EBITA margin of 6%. Outlook Imtech has a strong strategic portfolio of cohesive activities that can profit from the, according to current expectations, improving market conditions in the countries and technological markets relevant for Imtech. Good quality acquisitions during the first half of 2007 have also resulted in a further strengthening of Imtech's European position. Imtech is in a good position for further growth during the second half of 2007, for one reason because the quality of the order portfolio has also been improved. The opinion regarding the outlook for 2007 expressed in February 2007 remains the same: according to its current views the Board of Management expects a further increase of the EBITA through organic growth and acquisitions. 0-0-0-0-0-0-0-0-0-0-0 For further information Media Mark Salomons Company Secretary Telephone: Int. + 31 (0)182 54 35 14 E-mail: pers@imtech.eu www.imtech.eu Investors Boudewijn Gerner CFO Telephone: Int. + 31 (0) 182 54 35 06 E-mail: investors@imtech.eu www.investors.imtech.eu Imtech Profile Imtech N.V. is a European technical services provider in the fields of electrical engineering, ICT (information and communication technology) and mechanical engineering. With approximately 17,000 employees, Imtech realises annual revenue of 3 billion euro. Imtech holds strong positions in the buildings, industry, infrastructure and telecom markets in Belgium, Germany, Luxembourg, the Netherlands, Eastern Europe, Spain and the UK and in the global maritime market. Imtech provides services to a total of 12,000 clients. Imtech offers added value in the form of integrated and multidisciplinary total solutions that lead to improved operating processes and higher yields for clients and their clients in return. Imtech also provides solutions that contribute to a sustainable, liveable society, for example in the field of energy, mobility, safety and the environment. Imtech shares are listed on the Euronext Stock Exchange (Amsterdam), where Imtech is included in the Amsterdam SmallCap Index (AScX) and the Next 150 index. . Financial calendar * Extraordinary Meeting of Shareholders 1 October 2007 * Publication annual figures 2007, press conference and analysts' meeting: 26 February 2008 * General Meeting of Shareholders: 10 April 2008 Press conference and analysts' meeting 21 August 2007, Hilton Hotel, Amsterdam A press conference will be held in the Hilton Hotel, Apollolaan 138, 1077 BG Amsterdam starting at 10.00 hours. The analysts' meeting will commence at 12.00 hours. To register call Astrid Marré on Int. + 31 (0)6 11 39 69 98. Live-transmission via Internet (Webcast) The analysts' meeting on 21 August 2007 will be transmitted live via the internet (www.imtech.eu) from 12.00 hours until around 13.00. Photography Photographs of the Chairman of the Board of Management are available to the media via Fotopersbureau Dijkstra. For further information: Fotopersbureau Dijkstra, telephone Int. + 31 (0) 297 56 68 83, E-mail: dykfoto@wxs.nl. The following copyright free (high resolution) photographs are available to the media via e-mail: * At many of Brussels' road junctions Imtech's high-tech mobility solutions are improving traffic throughput and reducing harmful emissions. * Imtech is the permanent technology partner of Audi in Ingolstadt, Germany. Imtech ensures the supply of energy, electricity, high-tension and low-tension, steam, water and cooling to every part of the automated assembly line. But Imtech is also responsible for the extraction of harmful materials and helps create a good working environment. At Audi Imtech has also installed innovative decentralised power stations that help reduce energy consumption. For more information: Imtech Corporate Communications, telephone: Int. + 31 (0) 182 54 35 25, E-mail: pers@imtech.eu. For the complete press release, including tables, see the attached pdf.