Key points Q2 2016
Revenue down by 27% to EUR 231 million
Gross margin at 20.6%, up from 17.1%
EBIT down by 19% to EUR 8 million

Key points H1 2016
Revenue down by 28% to EUR 470 million
Gross margin at 20.4%, up from 17.5%
EBIT down by 29% to EUR 17 million

Brunel International (unaudited)
P&L amounts in EUR million
Q2 2016 Q2 2015 Change % H1 2016 H1 2015 Change %
Revenue 231.2 317.1 -27%a 469.6 650.8 -28% b
Gross Profit 47.7 54.3 -12% 95.6 113.6 -16%
Gross Margin 20.6% 17.1% 20.4% 17.5%
Operating costs 40.2 45.1 -11% c 79.0 90.1 -12% d
EBIT 7.5 9.2 -19% 16.6 23.5 -29%
EBIT % 3.2% 2.9% 3.5% 3.6%
Average directs 9,336 10,983 -15% 9,629 11,171 -14%
Average indirects 1,500 1,677 -11% 1,526 1,648 -7%
Ratio direct/indirect 6.2 6.5 -5% 6.3 6.8 -7%

a -25% in constant currency (cc)
b -26% in cc
c -10% in cc
d -11% in cc

H1 2016 results by division

Brunel Energy (unaudited)
P&L amounts in EUR million
Q2 2016 Q2 2015 Change % H1 2016 H1 2015 Change %
Revenue 119.8 220.8 -46% a 248.3 452.5 -45% b
Gross Profit 13.3 26.6 -50% 27.3 53.0 -48%
Gross Margin 11.1% 12.1% 11.1% 11.7%
Operating costs 12.7 17.0 -25% c 25.0 35.5 -30% d
EBIT 0.6 9.6 -94% 2.3 17.5 -87%
EBIT % 0.5% 4.3% 0.9% 3.9%
Average directs 4,656 6,544 -29% 4,911 6,739 -27%
Average indirects 598 778 -23% 613 752 -18%
Ratio direct/indirect 7.8 8.4 8.0 9.0
a -43% in cc
b -42% in cc
c -22% in cc
d -27% in cc

Key points Q2 2016
Revenue down by 46% to EUR 120 million
Gross margin 11.1%, down from 12.1% last year
EBIT down by 94% to EUR 1 million

Key points H1 2016
Revenue down by 45% to EUR 248 million
Gross margin 11.1%, down from 11.7% last year
EBIT down by 87% to EUR 2 million

Revenue
Revenue in Q2 decreased by 46% year on year, and 7% compared to Q1. Our clients continue to delay and terminate projects and to reduce the number of staff. The focus in the industry on capex cuts and cost savings keeps influencing our business significantly. Consequently our headcount decreased by 29%. The decline in revenue is also affected by reductions of our contractors' rates.


Gross profit
Due to the nature of our contracts, the increased price pressure so far only has had limited effect on our rates, resulting in a decline in gross margin. Adjusted for negative currency effects (mainly by the appreciating Ruble), the gross margin for Q2 is 11.3%. In combination with the lower top line, gross profit dropped by 50% to EUR 13 million. The impact of the price pressure on our existing business is likely to increase in the near future.

Operating costs
We continue to right size our organisation. Overhead decreased by 25%, mainly driven by the reduction of internal staff costs, following the ongoing efficiency programme and investments in operating efficiencies. Q2's overhead expenses included EUR 1 million of one off expenses for redundancies and doubtful debt.

EBIT
As a consequence of the decrease in activities, EBIT declined to EUR 0.6 million for Q2.

Effective tax rate
The effective tax rate in the first half year of 2016 is 37.9%, at the same level as the same period last year. For the full year we project the effective tax rate to come down.

Risk profile
Reference is made to our 2015 Annual Report (pages 63 - 81). 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 remained strong compared to December 2015 at EUR 137 million, despite the dividend and super dividend payment in June 2016.


Outlook for 2016
The difficult circumstances in the Energy market still cause uncertainty around the developments for the rest of the year, and will continue to impact our results. Our organisation continues to win new clients and projects, also outside Oil & Gas. However, these developments are not yet sufficient to compensate the decline in our existing business. We are adjusting our organisation and business model to the changing market circumstances.

In The Netherlands, our growth will be temporarily affected by the reduction in freelancers following the recent change in labour law, and we expect limited growth in the remainder of the year. We will continue to invest in our organisation by strengthening our sales force, but also by further improving our online sourcing capabilities.

In Germany we foresee continued strong growth.

For the full year, we expect revenue between EUR 850 million and EUR 900 million and EBIT between EUR 30 million and EUR 35 million.

Jan Arie van Barneveld, CEO of Brunel International N.V.: "Our business in the Oil & Gas market remains very challenging, and at this moment we feel that this market will not improve in the coming twelve months. We continue to improve our operational performance and processes in Energy to remain profitable in this challenging environment. In the past Brunel has shown the capability to use difficult circumstances to make the company stronger, with Germany and The Netherlands being the most recent examples. I am very proud of our achievements in the German organisation, where we found the growth path again and I am confident we will stay on this track."

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, 19 August 2016
Brunel International N.V.


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tijd 09.04
Brunel EUR 16,81 -1,23 vol. 67.360