Key points Q4 2014
Revenue up 5% to EUR 357 million
Gross margin at 18.4%, down from 18.7%
EBIT down by 17% to EUR 19 million

Key points FY 2014
Revenue up 8% to EUR 1,387 million and gross profit up by 8% to EUR 249 million
Gross margin stable at 18.0%
EBIT up 3% to EUR 75 million
Net profit down 2% to EUR 49 million
Proposed dividend EUR 0.70 per share (2013: EUR 0.55 per share)

Brunel International (unaudited)
P&L amounts in EUR million
Q4 2014 Q4 2013 Change % FY 2014 FY 2013 Change %
Revenue 356.7 339.6 5% * 1,386.6 1,283.4 8% **
Gross Profit 65.6 63.6 3% 249.0 230.7 8%
Gross margin 18.4% 18.7% 18.0% 18.0%
Operating costs 46.5 40.8 14% 174.3 158.4 10%
EBIT 19.1 22.8 -17% 74.7 72.3 3%
EBIT % 5.3% 6.7% 5.4% 5.6%

Average directs 12,041 11,927 1% 12,101 11,573 5%
Average indirects 1,663 1,513 10% 1,624 1,500 8%
Ratio direct / Indirect 7.2 7.9 7.5 7.7
* In constant currency 2%
** In constant currency 10%

Q4 2014 results

Revenue
Revenue in the fourth quarter improved by 5% compared to Q4 2013 to EUR 357 million, mainly driven by Brunel Netherlands and the Oil & Gas division. Brunel Netherlands' main growth driver is the Finance business, while the Engineering business line stayed behind. The Energy division's growth in the Q4 is mainly exchange result driven, while revenue in constant currencies slightly dropped. The Projects division had a successful quarter, generating 21% growth. Revenue in Germany dropped by 2%.

YoY revenue for the Group grew by 8% to EUR 1,387 million, again mainly driven by the Energy division (+7%), the Projects Division (+27%) and Brunel Netherlands (+10%), while Germany remained flat.

Average direct headcount grew by 5% to over 12,000.

Gross Profit
Q4's gross margin slightly dropped to 18.4% from 18.7% in Q4 2013, mainly as a result of the drop in gross margin in The Netherlands due to a change in the revenue mix and continued price pressure.

YoY gross margin stayed flat compared to 2013 at 18.0%, coming to a gross profit of EUR 249 million. Gross margin in Europe dropped caused by a changing revenue mix and pricing pressure, while Energy's gross margin increased, helped by foreign exchange results.

Operating Costs
Operating costs in Q4 2014 increased compared Q4 2013 by 14%, to EUR 47 million, driven by strengthening of the commercial organisation during the year, increased marketing costs and increased IT costs driven by the further roll out of the Global IT infrastructure.

YoY operating costs increased by increased by 10% to EUR 174 million, caused by the same drivers.

EBIT
Following the increased costs base, QoQ EBIT dropped by 17% to EUR 19 million (5.3% EBIT margin).
YoY EBIT grew by 3% to EUR 75 million.

Q4 2014 results by division
Brunel Oil & Gas (unaudited)
P&L amounts in EUR million
Q4 2014 Q4 2013 Change % FY 2014 FY 2013 Change %
Revenue 254.2 239.4 6% * 981.7 894.4 10% **
Gross Profit 32.6 30.1 8% 118.0 101.9 16%
Gross margin 12.8% 12.6% 12.0% 11.4%
Operating costs 18.9 17.2 10% 68.5 62.0 10%
EBIT 13.7 12.9 6% 49.5 39.9 24%
EBIT % 5.4% 5.4% 5.0% 4.5%

Average directs 7,473 7,419 1% 7,624 7,213 6%
Average indirects 785 718 9% 771 702 10%
Ratio direct / Indirect 9.5 10.3 9.9 10.2
* In constant currency 2%
** In constant currency 12%

The Oil & Gas division consist of the Energy division and the Projects division.
Brunel Energy (unaudited)
P&L amounts in EUR million
Q4 2014 Q4 2013 Change % FY 2014 FY 2013 Change %
Revenue 210.1 203.0 4% * 806.0 755.7 7% **
Gross Profit 28.4 26.4 8% 100.4 88.7 13%
Gross margin 13.5% 13.0% 12.5% 11.7%
Operating costs 17.6 15.8 11% 63.8 56.8 12%
EBIT 10.8 10.6 2% 36.6 31.9 15%
EBIT % 5.1% 5.2% 4.5% 4.2%

Average directs 6,954 6,901 1% 7,013 6,741 4%
Average indirects 757 687 10% 745 670 11%
Ratio direct / Indirect 9.2 10.0 9.4 10.0
* In constant currency -1%
** In constant currency 9%

Revenue

Revenue increased by 4% in the Energy division in Q4 to EUR 210 million, although the growth is largely foreign exchange result driven. Revenue pressure is felt in the Americas, where the decrease in headcount in Q2 following cancelled oil sands projects and capex cuts is still impacting this region. The majority of the other regions continued to grow compared to Q4 2013.

In the YoY development, the Americas are the only exception. All other regions show continued growth, leading to 2014 FY revenue of EUR 806 million (+7%).

Gross Profit
We did not yet see a margin decrease in Q4. Due to the foreign exchange effects, the gross margin improved slightly to 13.5% in Q4.

The gross margin also improved YoY. This improvement is seen across the regions and represents a 0.8ppt increase to 12.5%. Combined with the revenue growth, the gross margin increase lead to a gross profit increase of EUR 100 million (+13%).

Operating Costs

Operating costs increased by 11% to EUR 18 million in the quarter, mainly driven by additional staff costs caused by the growing sales organisation and increased marketing costs, offset by a reduction in the write off of bad debts.

YOY a trend comparable to QoQ is seen, leading to a 12% higher operating expenses at EUR 64 million.

EBIT
The leverage effect of the growing Energy business resulted in YoY EBIT growth of 15% at EUR 37 million (4.5% EBIT margin). Quarter on Quarter EBIT growth was 2%.
Brunel Projects (unaudited)

P&L amounts in EUR million

Q4 2014
Q4 2013
Change %
FY 2014
FY 2013
Change %


Revenue
44.1
36.4
21% *
175.6
138.7
27% **

Gross Profit
4.1
3.7
12%
17.6
13.2
34%

Gross margin
9.4%
10.1%
10.0%
9.5%

Operating costs
1.2
1.4
-16%
4.6
5.2
-11%

EBIT
2.9
2.3
25%
13.0
8.0
61%

EBIT %
6.6%
6.4%
7.4%
5.8%



Average directs
520
518
0%
611
472
29%

Average indirects
27
31
-11%
26
32
-19%

Ratio direct / Indirect
19.1
16.8
23.5
14.8


* In constant currency 19%

** In constant currency 34%



Revenue
Revenue increased in the fourth quarter by 21%, where revenue is driven by three large offshore Projects in Australia.

YOY revenue increased by 27% to EUR 176 million, when Gorgon was the largest project, followed by Wheatstone.

Gross Profit
YOY gross margin increased as a result of low margin project termination payments in 2013.

Operating Costs
As a result of efficiency gains in the Projects division, overhead costs reduced by 11% YOY.

EBIT
Driven by the top-line growth and strengthened by the overhead reductions, EBIT grew by 25% and 61% QoQ and YOY respectively. YoY EBIT margin was 7.4% in 2014.

Brunel Europe (unaudited)
P&L amounts in EUR million
Q4 2014 Q4 2013 Change FY 2014 FY 2013 Change %
Revenue 102.5 100.3 2% 404.9 389.0 4%
Gross Profit 33.0 33.5 -2% 131.1 128.8 2%
Gross margin 32.2% 33.5% 32.4% 33.1%
Operating costs 25.1 21.2 19% 95.7 86.6 11%
EBIT 7.9 12.3 -36% 35.4 42.2 -16%
EBIT % 7.7% 12.2% 8.8% 10.8%

Average directs 4,568 4,508 1% 4,477 4,360 3%
Average indirect 878 795 10% 853 798 7%
Ratio direct / Indirect 5.2 5.7 5.2 5.5

Brunel Europe consists of Brunel Germany, Brunel Netherlands, Brunel Belgium, Brunel Czech Republic, Brunel Switzerland and Brunel Austria.

Brunel Germany (unaudited)
P&L amounts in EUR million

Q4 2014
Q4 2013
Change %
FY 2014
FY 2013
Change %


Revenue
48.6
49.6
-2%
201.7
201.5
0%

Gross Profit
17.8
17.6
1%
73.4
73.2
0%

Gross margin
36.7%
35.6%
36.4%
36.3%

Operating costs
12.8
10.7
20%
49.3
45.3
9%

EBIT
5.0
6.9
-28%
24.1
27.9
-14%

EBIT %
10.3%
14.0%
11.9%
13.9%
Average directs 2,164 2,239 -3% 2,171 2,194 -1%
Average indirects 449 403 11% 428 399 7%
Ratio direct / Indirect 4.8 5.6 5.1 5.5

Revenue
Revenue in Germany dropped by 2% to EUR 49 million in Q4. After growth in Q1, revenue dropped three consecutive quarters. To counter the disappointing revenue trend, the management team has been restructured and is focussing on further improving the sales organisation.
The YoY revenue remained flat at EUR 202 million, while average headcount slight dropped by 1%.

Gross Profit
Germany's gross margin grew by 1.1ppt to 36.7% in Q4, driven by an improved productivity, offset by pricing pressure.

Gross margin remained almost flat at 36.4% YoY, leading to a gross profit of EUR 73 million.

Operating Costs

Operating costs increased by 20% compared to Q4 2013; YoY operating costs increased by 9%. Main drivers of the increase are increased IT costs as a result of the implementation of the Global infrastructure, increased marketing costs and higher staff costs following an expanding sales organisation. The turnover in account managers appears to have normalized.

EBIT

The higher cost base reduced EBIT QoQ by 28%; YoY EBIT dropped by 14%.

Brunel Netherlands (unaudited)
P&L amounts in EUR million
Q4 2014 Q4 2013 Change % FY 2014 FY 2013 Change %
Revenue 46.4 43.9 6% 175.4 160.1 10%
Gross Profit 13.3 14.3 -7% 50.7 49.2 3%
Gross margin 28.7% 32.6% 28.9% 30.8%
Operating costs 10.2 8.6 20% 38.9 34.1 14%
EBIT 3.1 5.7 -46% 11.8 15.1 -22%
EBIT % 6.6% 12.9% 6.7% 9.4%

Average directs 2,068 1,937 7% 1,978 1,830 8%
Average indirects 350 325 8% 348 319 9%
Ratio direct / Indirect 5.9 6.0 5.7 5.7

Revenue
Revenue in Q4 2014 increased by 6% to EUR 46 million. The Finance business line continues to grow and is the dominant growth driver for Brunel Netherlands. Legal remained relatively flat over the quarter, while Engineering and IT showed dropping revenue.

Engineering had some turnover in account managers; part of management has been replaced to turnaround the revenue trend.

YoY Finance and Engineering show the same revenue trend as the quarterly development, while the Legal and IT business lines also grew YoY.

Gross Profit
Both the QoQ and the YoY gross margin levels reduced (to 28.7% and 28.9% respectively), mainly as result of the changing revenue mix towards the Finance business line, which generates lower margins, and pricing pressure in the Dutch market.

Operating Costs
During the year, the number of account managers increased as a result of Project 75, where 75 additional account managers were hired. This is the main driver of the increase in overhead costs of 20% in the fourth quarter and 14% YoY.

EBIT
The increased cost level caused a 46% EBIT drop in Q4 and a 22% drop YoY.

Effective tax rate
In 2014 the effective tax rate increased to 4.0ppt to 35.1% (2013: 31.1%) mainly driven by changes in our profitability throughout the world (more profits in countries with a high tax rate) and reassessments of prior years.

Cash position
The December 2014 cash balance increase to EUR 125 million compared to EUR 90 million at the end of 2013. Working capital levels (excluding cash) have increased by EUR 9 million compared to last year.

Dividend
Brunel International N.V. proposes to increase the dividend by 27% to EUR 0.70 per share, based on the strong cash position, solid balance sheet and further improvements in the cash flow in 2015.

Outlook
The drop in the oil price is impacting the industry. At this moment, the impact on our Energy business is not too significant, and partly offset by changes in exchange rates. However, it's hard to predict the impact of the current cost reductions in this sector on our business for 2015. We therefor cannot provide an outlook for our Energy activities for 2015. In the Projects division two of the major projects will be completed in 2015, resulting in an expected significant drop in revenue in this division in 2015. Based on the current market conditions and economic developments, we expect growth in The Netherlands, and Germany to return to growth in the course of the year.

Jan Arie van Barneveld, CEO of Brunel International N.V.: "Despite the turmoil on the Oil & Gas market due to the dropped oil price and the developments in the geo-political arena, Brunel again achieved top-line growth. The growth in The Netherlands, Energy and Projects confirms our strategy. At this moment, 2015 looks to be a challenging year, but I'm confident we will be able to turn these challenges into opportunities, as we always do".

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