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Ballast Nedam Annual Figures For 2012: Tough Year, Firm Intervention, Accelerated Profile Change

Building & Development incurred an operating loss van of € 26 million because of impairment losses on land, and reorganization expenses. However, even disregarding the write-downs and reorganization in both years, profit declined from € 17 million in 2011 to € 2 million. The major projects made an excellent contribution. The regional companies and property development produced a loss. The seven regional construction companies have been restructured in the past year, and have been transformed into three upscaled regional companies with a uniform structure, in order to raise efficiency and market orientation, and provide a better match for the new market volumes. In the reorganization more than 200 of the approximately 1,100 jobs were shed.

The revenue of Building & Development decreased by 11% to € 573 million. The underlying revenue of all operations was lower, with the exception of the management activities. Ballast Nedam Beheer, which has operations in housing, mobility and energy, achieved a higher revenue through multiyear management for the PPP projects.

Despite the difficult market conditions and the substantial regional company restructuring, the order book has expanded by € 38 million to € 731 million. Major projects that have been acquired, such as the public transport terminal in Breda, the new Hilton hotel at Schiphol Airport Amsterdam and the renovation and expansion of the ASR head office in Utrecht contributed to this increase.

Building & Development's assets decreased by € 32 million to € 314 million.

The residential construction operations declined from 1,147 homes under construction at year-end 2011 to 1,101, of which only 23 homes are from internal development. In 2012, 954 homes were completed.

    Exposure property development

    x EUR 1 million                                     2012   2011

    Land positions                                       152    154
    Unsold stock under construction                        6     13
    Unsold stock delivered                                18     12

    Total on balance                                     176    179

    Liabilities to complete projects under construction    1      7
    Liabilities to acquire land positions                 39     24

    Total liabilities off-balance                         40     31

    Exposure property development                        216    210

The total property development exposure, which consists of investments in land positions, investments in unsold stock and the related unconditional future liabilities, increased in 2012 by € 6 million to € 216 million. In addition, the conditional liabilities to acquire went down by € 16 million from € 159 million at year-end 2011 to € 143 million. Despite the ambition to lower the capital invested in property in the next few years, we expect little progress in the near future because of the sustained stagnation on the market.

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