Heijmans N.V. realised a profit after tax of ¤82.5 million for 2006, compared to profit of ¤87.1 million in 2005. The profit per ordinary share amounts to ¤3.43 as against ¤3.67 in 2005. Heijmans will propose a dividend of ¤1.45 per ordinary share (2005: ¤1.45) to the General Meeting of Shareholders. The result benefited from a substantial increase in profit in the development of owner-occupied homes and profit increases in England, Belgium and Germany. A non-recurring gain of ¤5 million was realized on the sale of the associate Vebo. The performance of the Building division was disappointing, with a sharp decline in profit partly due to an order book compiled under less favourable circumstances and shortcomings in project management on a number of major projects. A non-recurring reduction in profit was due to an additional charge of ¤9 million for a penalty of ¤17 million imposed by the European Commission, which was higher than initially foreseen. Following the decreased Dutch Corporate Tax rate as per January 1st 2007, a non recurring tax gain of ¤7 million was realised. Net debt increased from ¤403 million as at the end of 2005 to ¤497 million, mainly owing to an increased working capital requirement for the activities in the Dutch infrastructure market. Strong progress was made in 2006 on the implementation of the strategy designed to turn Heijmans into a full-service provider. Operational processes were improved amongst others by (proposed) organizational adjustments in Infrastructure and Building. The installation and railway construction activities considered necessary were announced or added through acquisitions. The land bank was replenished with new acquisitions, development competitions were won and in the United Kingdom and Germany the position was reinforced by acquisitions of companies. In 2007 Heijmans is expecting a profit after tax of approximately ¤90 million. The profit per share is expected to rise by approximately 10% in 2007. Key points * Property Development: higher margins on the sale of homes. Sharp reduction of the risk profile of completed vacant unsold property. Good results from land operations. Development potential remains at high level with 45,000 homes and 675,000 m² of non-residential property. This potential will improve upon completion of the acquisition of Bouwfonds Langewold. * Building: execution of order book built up under less favourable circumstances and shortcomings in project management on a number of major projects led to disappointing results. Management has been strengthened and organizational adjustments are being prepared. * Infrastructure: decrease of profit was less than expected owing to increase in profit from regular activities and prior-year income from large projects. Organizational adjustment improves competitive position. Acquisition of Heitkamp provides access to railway construction activities in the Netherlands. * International: profit and margin improvement, also on organic basis, in all countries. Acquisition of Heitkamp Rail (2006) and Oevermann (2007) in Germany, Denne Construction (2006) in the United Kingdom and Verbraeken (announced in 2007) in Belgium strengthen market positions. * Other: disposal of non-core activities is progressing successfully: sale of Vebo completed. Strong improvement in performance of loss-making Heijmans Bestcon. * Entry in installation engineering market, partly with a view to strengthening Service and Maintenance activities, by the acquisition of Burgers Ergon in early 2007. * Innovation: launched three new concepts onto the market: Starter homes, Waterwonen (Living on Water) and further development of Wenswonen® (Tailor Housing). * Financial position: Negative operational cash flow of ¤34 million owing to increased working capital requirements of Infrastructure division and payment of ¤30 million in penalties in relation to the building industry investigation. * Order book: at substantially higher level at ¤3,196 million, especially in Property Development, Infrastructure and England. For more information Press: Frank Janssen Director of Group Communications +31 73 543 51 69 [email protected] Analysts: Fons van Lith Director of Investor Relations +31 6 51314952 [email protected]