Key points Q2 2018
EBIT up to EUR 4 million
Revenue up by 17% to EUR 221 million

Key points H1 2018

EBIT up 148% to EUR 11 million
Revenue up by 13% to EUR 435 million

Jilko Andringa, CEO of Brunel International N.V.:
"I'm excited to see our growth accelerate, and to present a strong increase in profitability. I'm thrilled by the underlying level of activities we see in our internal teams, in the sales pipeline and in our communities of professionals. With strong global collaboration, we are able to help our global clients with our entrepreneurship and compliant delivery. The economic conditions in our key markets remain healthy, whilst the segments of the global Oil & Gas market we operate in are clearly recovering. All Brunel colleagues keep demonstrating our unique capabilities to attract and retain specialists to help our clients continue to grow, while talent is scarce. I trust we will be able to maintain this performance in the rest of the year, especially considering that not all the initiatives we have started are fully contributing yet."

Brunel International (unaudited)
P&L amounts in EUR million
Q2 2018 Q2 2017 Change% H1 2018 H1 2017 Change%
Revenue 221.3 188.9 17% a 435.1 385.3 13% b
Gross Profit 48.7 39.7 23 98.7 86.9 14%
Gross margin 22.0% 21.0% 22.7% 22.6%
Operating costs 44.6 40.8 9% c 87.4 82.4 6% d
EBIT 4.1 -1.2 n/a 11.3 4.6 148%
EBIT % 1.8% -0.6% 2.6% 1.2%

Average directs 11,889 9,201 29% 11,558 9,093 27%
Average indirects 1,539 1,496 3% 1,533 1,478 4%
Ratio direct / Indirect 7.7 6.2 7.5 6.2
a 16 % like-for-like

b 14 % like-for-like

c 10 % like-for-like

d 7 % like-for-like

Like-for-like is measured excluding the impact of currencies and acquisitions

H1 2018 results by division
P&L amounts in EUR million
Summary:
Revenue
Q2 2018 Q2 2017 Change% H1 2018 H1 2017 Change%
DACH region 65.8 56.6 16% 130.0 117.9 10%
The Netherlands 54.1 46.6 16% 110.3 94.5 17%
Australasia 28.2 21.5 31% 56.0 45.4 23%
Middle East & India 20.3 15.1 34% 39.5 31.0 27%
Rest of world 52.9 49.2 8% 99.4 96.4 3%

Total 221.3 188.9 17% 435.1 385.3 13%

EBIT
Q2 2018 Q2 2017 Change% H1 2018 H1 2017 Change%
DACH region 4.7 2.7 70% 10.4 10.1 2%
The Netherlands 1.1 0.6 84% 5.3 3.2 68%
Australasia -0.5 -0.6 12% -0.5 -0.7 32%
Middle East & India 1.7 0.3 557% 3.4 0.7 404%
Rest of world -0.4 -1.9 77% -2.3 -3.9 41%
Unallocated -2.4 -2.3 6% -5.0 -4.8 4%

Total 4.1 -1.2 -453% 11.3 4.6 148%

Revenue

Rest of World includes Americas, Russia, Belgium and South East Asia. Americas and Russia are achieving significant growth. South East Asia is also growing week on week, but still has challenging comparatives due to significant projects that ended in Q2 last year.

Gross profit

The increased gross margin is due to a change in the contribution of several regions.



Effective tax rate

The effective tax rate in the first half year of 2018 is 54.4% (2017 at 75.6%). As a greater part of our businesses is profitable again, the impact of tax losses not recognized as deferred tax asset on the effective tax rate has reduced. Due to the seasonality in our Netherlands and DACH business we expect the effective tax rate for the full year to come down significantly to just under 40%.



Risk profile

Reference is made to our 2017 Annual Report (pages 69 - 86).
Reassessment of our earlier identified risks and the potential impact on occurrence has not resulted in required changes in our internal risk management and control systems.



Cash position

Brunel's cash position decreased to EUR 100 million, due to an increase in working capital as a result of the growth, our normal seasonality in our cash flow and the dividend payment in June.



Segment reporting

In Q1, we have changed our segment reporting in accordance with Brunel's regional approach. The main regions are: DACH (Germany, Austria, Switzerland and Czech Republic), The Netherlands, Americas, Australasia, Europe & Africa, Middle East & India, Russia & Caspian area and South East Asia. This is the basis on which internal reports are provided to the Chief Executive Officer for assessing performance and determining the allocation of resources within the Group.

From Q1 onwards, all regions exceeding 10% of total revenue or EBIT are reported separately. The remaining regions are combined in Rest of World. Main changes in our segment reporting are:

Austria, Switzerland and Czech Republic are now included in DACH and were previously reported under Other Europe.
Australasia and Middle East & India were previously reported under Global Business.
The other regions within Global Business, and Belgium, are now reported under Rest of World.
The change in segment reporting has no impact on the net profit or loss of the Group. To enable comparisons with prior period performance, the 2017 segment information is updated accordingly.

The main items for the adjusted segment reporting for 2017 are included in the appendix to this press release.



Outlook for 2018

Throughout our business, we see the growth and profitability accelerating. We see an opportunity to benefit from the scarcity in the labour market with our strong brand and communities of professionals. Across the globe the investment level is increasing and our diversification efforts will continue to contribute to our growth.

For the full year, we expect revenue between EUR 875 million and EUR 925 million and EBIT between EUR 32 million and EUR 38 million.



Statement of the Board of Directors

The Board of Directors of Brunel International N.V. hereby declares that, to the best of its knowledge, the interim financial statements give a true and fair view of the assets, liabilities, financial position and result of Brunel International N.V. and the companies jointly included in the consolidation, and that the interim report gives a true and fair view of the information referred to in the eighth and, insofar as applicable, the ninth subsection of Section 5:25d of the Dutch Act on Financial Supervision and with reference to the section on related parties in the interim financial statements.

Amsterdam, 14 August 2018
Brunel International N.V.

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