Ballast Nedam Annual Results 2008: Results in Line With Expectations

    - Operating result in line with expectations: EUR 42 million (2007: EUR
      42 million)

    - Higher revenue: EUR 1.4 billion (2007: EUR 1.3 billion)

    - Increase in order book: EUR 1.7 billion (2007: EUR 1.4 billion)

    - Net result lower: EUR 24 million (2007: EUR 27 million)

    - Forecast for 2009: lower operating result of approximately EUR 25
     million


    Key figures

    EUR 1 million               2008   2007

    Revenue                    1 426  1 270
    EBIT                          42     42
    Margin                      2.9%   3.3%
    Profit before taxation        31     38
    Net profit                    24     27
    Order book                 1 667  1 438
    Shareholders' equity         168    172
    Capital ratio                17%    19%
    Net financing position      (41)   (63)

Results in line with expectations

Ballast Nedam achieved a revenue of EUR 1.4 billion with an operating result of EUR 42 million. The result was in line with the profit forecast announced in March 2008, which was for a virtually unchanged operating result on higher revenue. The result was achieved in a year in which market conditions changed substantially. The first three quarters of 2008 saw sharp price rises from suppliers and subcontractors, with consequently disappointing results from the construction companies. The property market came almost to a standstill in the fourth quarter of 2008, which will have a negative impact on the result in 2009 and beyond. The margin declined from 3.3% to 2.9%. 95% of the revenue was earned in the Netherlands (2007: 91%).

    Financial results


    Revenue

    x EUR 1 million              2008    2007

    Infrastructure                708     675
    Building and Development      735     601

                                1 443   1 276
    Other / elimination           (17)     (6)

    Total                       1 426   1 270

    Revenue rose by 12% to EUR 1 426 million.
    Infrastructure

The revenue of the Infrastructure division was EUR 708 million. The main contribution to this 5% rise was the higher revenue from major projects.

The Infrastructure division again improved its operating result. The result was in line with the forecast, and was satisfactory in view of the deterioration in market conditions. Volumes were excellent in all segments of the infrastructure market. The price level in the public procurement market for traditional contracts remained unsatisfactorily low. The sharp price rises imposed by suppliers and subcontractors depressed the margins even further. The regional companies, which are largely dependent on public tenders of this kind, suffered most severely from this trend. The large projects were better able to elude these problems, and they booked an excellent result. One factor in their favour was the good performance of projects in new contract forms, and another was the focus on niche segments, such as industrial construction and offshore wind farms. The price rises and the satisfactory volume in the market enabled the specialized companies, the prefabricated concrete companies and the raw material companies to achieve satisfactory results.

In 2008 the strategy of strengthening the specialized companies was implemented by enhancing the product range, expanding the positions in raw material extraction and increasing the added value for the internal regional companies and major projects. This strategy was achieved through the acquisition of Hamstra B.V., a specialized drilling company, the acquisition of Lugo N.V., with positions in future gravel extraction in Belgium, and an indirect participation in Antwerp Stone Terminal, a concession holder and licensee of a terminal in Antwerp. A reason for Infrastructure's improved result was that the regional companies and the large projects engaged the specialized and the prefabricated concrete companies more often at an early stage. There was a consequent marked increase in the internal revenue of the specialized companies and the prefabricated concrete companies.

Infrastructure has been successful in recent years in the growing market for offshore wind farms. The heavy lift vessel Svanen achieved high utilization on three British offshore wind farms. For the next few years the Svanen will complete the current project of 32 foundations at Gunfleet Sands in England and start the project of 22 foundations for Baltic I off the German Baltic coast.

Various innovations are helping strengthen our position on this niche market. Infrastructure has developed a frame that enables the heavy lift vessel Svanen to pick up complete heavy windmills in the harbour, transport them to the offshore location, and then install them on site. This development renders unnecessary the assembly of wind turbines from multiple modules in expensive and risky offshore time. Furthermore, the technical feasibility of a drilled prefabricated concrete pile as an offshore wind turbine foundation has been demonstrated. The advantages of this foundation are reduced noise levels, because no percussion is needed, lower manufacturing costs, and the greater price stability of concrete compared with steel.

We foresee no reduction in volumes in the infrastructure market in the coming years in view of the expected additional government spending. Despite hindrance from the more limited availability of finance, we see good opportunities in the markets for offshore wind farms in Europe, for industrial construction in the energy sector, and for international infrastructure projects on and around waterfronts.

Building and Development

The revenue of the Building and Development division rose by 22% to EUR 735 million. This rise was largely attributable to major projects, and includes recovery of lost ground caused by the delays in 2007 in awarding contracts for these projects.

The result achieved by the Building and Development division was lower than in 2007, in line with our forecast of March 2008.

Volumes in both the housing and commercial construction markets remained reasonable in 2008. The commercial construction volume was generated largely by semipublic and public works contracts. The market picture was extremely variable in 2008. The first three quarters saw sustained high prices from suppliers and subcontractors. The purchase prices stabilized in the fourth quarter, but the property market then stagnated. The door to the housing market closed as consumer confidence dropped and the availability of finance dwindled. For the slightly longer term our positive outlook on the housing market in the Netherlands remains undiminished in view of the structural shortage of homes, in terms of both quantity and quality.

A number of regional construction companies produced a disappointing performance. The regional companies bore the brunt of greatly elevated costs, which could not be charged on in full to customers. Errors made in the primary process in some regions were then duly magnified in a financial sense. Organizational adjustments and changes in working methods have since been put in place in the regions concerned. The large projects performed well in line with expectations. Property development produced excellent results, as did the division's two prefabricated concrete companies.

The number of residential property completions decreased from 1 579 to 1 128, of which 452 were from in-house development. The number of homes under construction increased from 2 532 to 3 217, of which 28% were developed by Ballast Nedam. The unsold stock at year-end consisted of 11 residential properties and 712 m2 of leased commercial space. There has been a policy of restraint in recent years in entering into new land bank obligations. This policy has achieved a 1% reduction in development potential to 14 800 homes. Outstanding unconditional purchase obligations for land at year-end halved from EUR 32 million in 2007 to EUR 16 million. The carrying amount of the land positions increased by EUR 11 million to EUR 142 million.

In the coming years, as in 2008, we expect a substantial fall in the volumes of both housing and commercial construction. For housing we foresee a similar decline in the number of homes due for completion. In the commercial property market the proportion of semipublic and public works contracts, for instance in the care sector, is set to increase.

Ballast Nedam Concessies

Concessies finalized contracts in 2008 for three major PPP projects. They were the Zestienhoven Detention Centre in Rotterdam, offices for the IB Groep and the tax authorities in Groningen, and the Kromhout Barracks in Utrecht. Another contract was finalized in February 2009 for a substantial extension to the Kromhout Barracks, which will increase the personnel capacity of this military accommodation by 1 000, bringing the number to 3 000. The consortium succeeded in raising a EUR 90 million loan in a turbulent financial market. In acquiring these projects, Concessies has made excellent progress in line with the strategy of gaining a leading position in the semipublic and public-private partnership market. Alongside these projects that are in the construction phase, Concessies also has the PPP infrastructure project Waldwei N31, which is now in the operational phase. The PPP receivables associated with these projects have reduced slightly from EUR 30 million at year-end 2007 to EUR 27 million. Based on the current PPP project portfolio, these PPP receivables will rise to approximately EUR 100 million at year-end 2009. In 2009 Concessies expects to participate in tenders for the A15 Maasvlakte - Vaanplein and A12 Utrecht - Veenendaal highway infrastructure projects, and various PPP real estate projects. Ballast Nedam Concessies works on projects for both divisions, and is proportionately consolidated on a 50% basis in each division.

Ballast Nedam Beheer

Ballast Nedam Beheer was formed in 2008 through the merger of activities from the two divisions. Ballast Nedam Beheer manages the maintenance and operation of infrastructure items, real estate, and energy-related projects alike. Beheer was involved in the successful acquisition of PPP projects and of design & construct infrastructure projects with a long-term maintenance management component. The ongoing Waldwei N31 road project, the N210 road project now under construction, the real estate portfolios of Alliance Apotheek, SEB and Belgravia, the Egmond offshore wind farm, and the CNG Net natural gas filling stations are examples of projects under management. Ballast Nedam Beheer works on projects for both divisions, and is proportionately consolidated on a 50% basis in each division.

    EBIT

    x EUR 1 million              2008    2007

    Infrastructure                20      18
    Building and Development      29      33

                                  49      51
    Other                         (7)     (9)

    Total                         42      42

The operating result was unchanged from 2007, at EUR 42 million.

The Infrastructure division improved its result by EUR 2 million to EUR 20 million. This is in line with the expectations of a higher operating result announced in March 2008, and is satisfactory in view of the sustained low price levels in the public procurement market. The regional companies and major projects made a significant contribution to the improved result.

The Building and Development division achieved a lower operating result of EUR 29 million on a higher revenue, in line with the expectations that were announced. The higher results on property development, major projects, and prefabricated concrete did not compensate for the decline in the results of the regional construction companies.

The 'Other' result improved by EUR 2 million. The holding company costs were almost unchanged. The improvement was attributable to the settlement of the former international activities.

    Margin

                               2008   2007

    Infrastructure             2.8%   2.7%
    Building and Development   3.9%   5.5%

    Total                      2.9%   3.3%

On a group level, the margin decreased to 2.9% on a 12% higher revenue. This margin was slightly below the target range of 3% to 5%. The Infrastructure margin increased from 2.7% to 2.8% on a slightly higher revenue. On a much higher revenue, Building and Development saw the margin fall from 5.5% to 3.9%.

    Net result

    x EUR 1 million                   2008    2007

    EBIT                                42      42
    Interest income and charges        (11)     (4)

    Profit before taxation              31      38
    Income tax expense                  (7)    (11)

    Net result                          24      27

The net result declined by EUR 3 million to EUR 24 million, in particular because of the lower result before taxation.

The result before taxation decreased to EUR 31 million because of a EUR 7 million lower interest result. Interest charges increased by EUR 5 million, consisting of EUR 2 million for the interest on provisions, a EUR 1 million write-down of interest rate derivatives and an average higher working capital owing to investments in plant and equipment and land positions, combined with a higher interest rate for the short-term working capital loans. Conversely, interest income decreased by EUR 2 million because of lower capitalized interest on the PPP receivables.

    Tax costs fell by EUR 4 million to EUR 7 million. The effective tax
burden went down from 28% in 2007 to 23%, owing to the recognition of a EUR 3
million liquidation loss of the former German operations. The deferred tax
asset at year-end was EUR 37 million, including EUR 33 million of
carry-forward losses.

    Order book

    x EUR 1 million                2008     2007

    Infrastructure                  705      541
    Building and Development      1 005      916

                                  1 710    1 457
    Other                           (43)     (19)

    Total                         1 667    1 438

The order book increased by 16% from EUR 1 438 million at year-end 2007 to EUR 1 667 million. The quality and size of the order book puts us in a fairly strong starting position in a declining market with increased debtor risks. One factor is that the order book is largely filled with creditworthy semipublic and public sector clients, and another is that purchase prices are expected to fall.

In 2008 the two divisions acquired impressive, large, long-term projects, such as the construction of the new Netherlands Ministries of Justice and the Interior in The Hague, the Kromhout Barracks in Utrecht, the multifunctional Medimall care centre alongside the Maasstad hospital in Rotterdam, the A12 Zoetermeer - Gouda highway reconstruction and the multifuel power station for Nuon Magnum in the Eemshaven in Groningen. The client is expected to obtain the permits for the construction of the multifuel power station in the second half of 2009, and construction will accordingly start at that time.

Recent developments that are a perfect fit with the Ballast Nedam strategy include the final contract award of the offshore wind farm Baltic 1 and a contract for the construction of Nieuwegein town hall. CNG Net's contract with public transport operator HTM in 2008 for the design, construction, maintenance, financing and operation of a natural gas filling station for 125 city buses, which was concluded in 2008, has recently been followed by a collaboration agreement with Tamoil Nederland B.V. for building at least 10 natural gas filling stations. This is an important step in rolling out a nationwide filling station network. There were 13 operational filling stations at the end of 2008, with a further 7 under construction. Ballast Nedam Concessies and its partner Econcern have also acquired the exclusive development rights for two Dutch offshore wind farms: Helmveld 493 MW and Rotterdam NW 180 MW.

Equity and cash flows

Shareholders' equity decreased by EUR 4 million to EUR 168 million. The decrease comprised the net result of EUR 24 million less the dividend distribution of EUR 14 million, the formation of a hedging reserve of EUR 11 million for interest rate derivatives and of EUR 3 million for exchange differences. The hedging reserve was for the interest rate derivatives that substitute a fixed interest rate for the variable interest rates of the PPP loans. These represent temporary differences over the term of the loans. Total assets increased by EUR 106 million to EUR 1 004 million. The increase in assets and the decrease in shareholders' equity reduced the capital ratio from 19% at year-end 2007 to 17%. The working capital at year-end was EUR 252 million, which was approximately the same as last year. However, the average working capital was higher in the course of the year. In the next few years total assets and working capital will continue to rise as the PPP projects progress.

The cash flow for 2008 was EUR 40 million positive, compared with EUR 10 million negative for 2007.

The operating cash flow for 2008 was EUR 66 million positive compared with EUR 26 million negative for 2007. One reason for the change is a sharp reduction in working capital towards year-end.

The cash flow from investing activities was EUR 42 million negative, and consisted largely of investments of EUR 60 million, disposals of EUR 21 million and company acquisitions of EUR 4 million. Investments and acquisitions included EUR 44 million of tangible assets, EUR 2 million of intangible assets and EUR 14 million of financial assets. The disposals were primarily concerned with receipts against PPP receivables. Net investments in tangible assets of EUR 41 million exceeded the depreciation of EUR 24 million.

The positive cash flow from financing activities of EUR 15 million consisted of the net increase of EUR 29 million for long-term loans drawn and the dividend payment for 2007 of EUR 14 million.

    Net financing position

    x EUR 1 million                    2008     2007

    Net cash                             92       52
    Current portion of long-term         (7)     (18)
    loan
    Long-term loans                    (126)     (97)

                                        (41)     (63)

The net financing position improved by EUR 22 million to EUR 41 million. Long-term loans rose by EUR 29 million to EUR 126 million. This increase included a EUR 10 million net increase in PPP loans and a EUR 15 million increase in the loan for land positions. The current portion of the long-term loans was mainly concerned with the PPP loans, and decreased by EUR 11 million to EUR 7 million. Net cash rose by EUR 40 million to EUR 92 million. Project prepayments rose from EUR 68 million at year-end 2007 to EUR 79 million. There was a greater capital requirement in the course of the year than at year-end.

Financing

There will be no need to refinance the long-term loans in the coming years. The EUR 50 million general loan matures on 1 April 2012 and has a fixed interest rate of 4.63%. Mortgages were taken out on a number of properties in use by Ballast Nedam as security for the loan. Furthermore, the terms of the loan involve no financial covenants. The other large loan of EUR 33 million is for financing several land positions in a separate company. This loan matures on October 2012 and the interest rate is Euribor plus 100 basis points. The land positions concerned were mortgaged as security for the loan. The other long-term loans of EUR 43 million are mainly the PPP loans, which provide no opportunity for recourse on Ballast Nedam, and for which the interest rate is fixed by means of derivatives.

The Ballast Nedam share

There were 9 900 000 shares in issue at year-end 2007 out of the 10 million issued shares. A repurchase programme of 100 000 shares was started in 2008 in order to cover the obligations arising from the current management option scheme. 29 751 depositary receipts for shares were repurchased under this programme in 2008. Ballast Nedam had 129 751 shares in portfolio at year-end. The repurchase programme ended on 24 February 2009 with the number of shares in issue standing at 9 800 000. The net result per share based on average number of shares in issue decreased from EUR 2.75 in 2007 to EUR 2.46.

The Ballast Nedam share price quoted at the end of 2007 on NYSE Euronext was EUR 28.30. The share price at the end of 2008 was 51% lower at EUR 13.83. The highest price of EUR 27.85 was on 2 January 2008. The lowest price of EUR 9.37 was on 5 December 2008. The liquidity of Ballast Nedam shares went down from 39 744 per trading day in 2007 to 27 452. The AScX index, which includes Ballast Nedam shares, dropped by 53% in 2008.

According to shareholdings reported, Navitas was the largest shareholder at year-end 2008, with an interest of 15.4%. Other parties holding 5% or more of the shares or depository receipts for shares in Ballast Nedam were Hurks Group, Delta Deelnemingen Fonds, Delta Lloyd, Menor Investments and Bibiana Management. Hurks Group reported a 15.4% interest on 6 March 2009. This interest was still 10.3% at year-end.

Dividend policy

The current dividend policy is to place 50% of the net result at the disposal of the shareholders. According to this policy, the Board of Management, with the approval of the Supervisory Board, proposes to distribute a dividend of EUR 1.24 per share in issue for 2008. The dividend for 2007 was EUR 1.38. Distribution will take place on 15 May 2009. The date of the ex-dividend listing will be 8 May 2009.

Strategy

Ballast Nedam's three main strategic priorities in 2009 are as follows.

To increase the value of the business through further improvements in its operating performance ('operational excellence') and to increase margins on a structural basis through a change in the mix of activities: a greater proportion of development and of management of maintenance and operation compared with construction, and a greater proportion of operations in niche segments (such as offshore wind farms, industrial construction, international projects, large complex projects, high-rise construction and compressed natural gas [CNG] stations). Achieving an improvement in the operational performance of the regional companies is a major priority for 2009.

To strengthen the front and back ends of the horizontal value chain by acquiring land positions and to strengthen the activities in the field of project development, by strengthening management of maintenance and operation, and by gaining a leading position in the PPP market. A prudent approach will be taken in 2009 regarding investment in land positions.

To strengthen the supply companies in the vertical value chain by enhancing the product range and expanding the specialized companies, continuing to improve the operating performance of the prefabricated concrete companies, and replacing and possibly expanding the raw-material concessions.

Outlook for Ballast Nedam in 2009

The market for property development stagnated in the fourth quarter of 2008. The Board of Management expects a lower operating result for 2009 of approximately EUR 25 million on a lower revenue. The operating result for 2008 was EUR 42 million.

For 2009 the Board of Management expects the operating result of the Infrastructure division to remain almost unchanged on a likewise unchanged revenue.

The Board of Management expects the Building and Development division to achieve a lower operating result on a lower revenue in view of the virtual standstill in the market for property development, and in particular the housing market. No improvement is foreseen in this situation in the short term. Building and Development will accordingly adjust the cost level of development activities, intensify cooperation with housing associations, and accelerate the development or redevelopment of less expensive homes.

    Key figures

    x EUR 1 million            2008    2007

    Revenue                   1 426   1 270
    EBIT                         42      42
    Margin                     2.9%    3.3%
    Profit before taxation       31      38
    Net profit                   24      27
    Order book                1 667   1 438
    Shareholders' equity        168     172
    Capital ratio               17%     19%
    Net financing position      (41)    (63)

    The consolidated income statement, balance sheet, and cash flow statement
included in this press release are based on sections of the financial
statements prepared as at and for the year ended 31 December 2008. In
accordance with statutory provisions, the financial statements will be
published after adoption by the Annual General Meeting of Shareholders on 6
May 2009. The external auditors have issued an unqualified auditors' report
on the financial statements.

    Segmentation

    Revenue

    x EUR 1 million                   2008      2007

    Infrastructure                     708       675
    Building and Development           735       601

                                     1 443     1 276
    Other / elimination                (17)       (6)

    Total                            1 426     1 270

    EBIT

    x EUR 1 million                   2008      2007

    Infrastructure                      20        18
    Building and Development            29        33

                                        49        51
    Other                               (7)       (9)

    Total                               42        42

    Margin

                                      2008      2007

    Infrastructure                    2.8%      2.7%
    Building and Development          3.9%      5.5%

    Total                             2.9%      3.3%

    Net result

    x EUR 1 million                   2008      2007

    EBIT                                42        42
    Interest income and charges      ( 11)      ( 4)

    Profit before taxation              31        38
    Income tax expense                ( 7)     ( 11)

    Net result                          24        27


    Order book

    x EUR 1 million                 2008     2007

    Infrastructure                   705      541
    Building and Development       1 005      916

                                   1 710    1 457
    Other                            (43)     (19)

    Total                          1 667    1 438

    Cash flows from operating
    activities

    x EUR 1 million                 2008     2007

    Infrastructure                    43       20
    Building and Development          26      (31)

                                      69      (11)
    Other                             (3)     (15)

    Total                             66      (26)

    Cash flows from investing
    activities

    x EUR 1 million                 2008     2007

    Infrastructure                   (36)     (22)
    Building and Development          (6)      (7)

                                     (42)     (29)
    Other                              -        -

    Total                            (42)     (29)


    Consolidated income statement

    x EUR 1 million                                      2008           2007

    Revenue                                             1 426          1 270

    Raw materials and subcontractors           (1 077)          (923)
    Employee benefits                            (267)          (260)
    Other operating expenses                      (15)           (25)

                                                       (1 359)        (1 208)
    Share in results of associates                          -              1

    EBITDA                                                 67             63

    Depreciation and amortization of tangible and         (25)           (21)
    intangible assets

    EBIT                                                   42             42

    Finance income                                  2              4
    Finance expense                               (13)            (8)

                                                          (11)            (4)

    Result before taxation                                 31             38
    Income tax expense                                     (7)           (11)

    Net profit                                             24             27

    Attributable to:
    Shareholders                                           24             27
    Minority interests                                      -              -

    Net result                                             24             27

    Attributable to shareholders:

    Net result per share (EUR)                           2.46           2.75
    Diluted net result per share (EUR)                   2.46           2.75


    Consolidated balance sheet

    x EUR 1 million              31 December 2008     31 December 2007

    Non-current assets
    Intangible assets                  25                     22
    Tangible assets                   176                    158
    Financial assets                   36                     23
    Investments in associates           -                      1
    Deffered tax assets                37                     38

                                               274                  242
    Current assets
    Inventories                       199                    179
    Work in progress                  127                    105
    Receivables                       295                    285
    Cash and cash equivalents         109                     87

                                      730                    656
    Current liabilities
    Bank loans                        (17)                   (35)
    Current portion of long-term       (7)                   (18)
    loan
    Inventories                       (29)                   (15)
    Work in progress                 (141)                  (130)
    Trade payables                   (300)                  (211)
    Income tax payable                  -                     (1)
    Other liabilities                (145)                  (156)
    Current portion of                (21)                   (24)
    provisions

                                     (660)                  (590)
    Working capital                             70                   66

                                               344                  308
    Non-current liabilities
    Loans                             126                     97
    Derivatives                        15                      -
    Deferred tax liability              3                      4
    Employee benefits                   4                      5
    Provisions                         28                     30

                                               176                  136
    Shareholders' equity
    Minority interests                  -                      -
    Equity attributable to            168                    172
    shareholders

    Total shareholders' equity                 168                  172

                                               344                  308
    Shareholders' equity

    x EUR 1 million                           2008                 2007

    Issued share capital                        60                   60
    Share premium                               52                   52
    Other reserves                              60                   46

    Opening balance                            172                  158

    Exchange differences                        (3)                   -
    Hedging reserve                            (11)                   -

    Results recognized directly                (14)                   -
    in equity

    Net result                                  24                   27
    Dividend                                   (14)                 (13)
    Others                                       -                    -

    Closing balance                            168                  172



    Consolidated cash flow
    statement

    x EUR 1 million                       2008           2007

    Net cash, 1 January                     52             62

    Net result                       24             27

    Depreciation                     24             20
    Amortization                      1              1
    Finance expense                  13              8
    Finance income                   (2)            (4)
    Equity-settled share-based        -              -
    payment transactions
    Income tax expense                7             11
    Share in results of               -             (1)
    associates
    Book result on fixed assets       -             (1)
    sold
    Movement in other                (1)            (3)
    investments
    Movement in other                (1)             2
    receivables
    Movement in work in progress    (11)           (23)
    Movement in inventories          (6)           (33)
    Movement in provisions and       (7)           (10)
    employee benefits
    Interest paid                   (10)            (8)
    Interest received                 1              1
    Taxes paid                       (2)            (4)
    Movement in other working        36             (9)
    capital

    Net cash flow from operating            66           (26)
    activities

    Intangible assets
    investments                      (2)            (2)
    disposals                         -              -
    Tangible assets
    investments                     (44)           (29)
    disposals                         3              3
    Financial assets
    investments                     (14)            (6)
    disposals                        18              4
    dividend received                 1              1

    Acquisition of subsidiary        (4)             -
    Cash from acquisition             -              -

    Net cash flow from investing         (42)          (29)
    activities

    Proceeds from long-term          43             71
    loans
    Repayment of long-term loans    (14)           (10)
    Dividend paid                   (14)           (13)
    Proceeds from repurchase of       -             (1)
    own shares

    Net cash flow from financing            15             47
    activities

    Effect of exchange rate                  1            (2)
    fluctuations on cash held

    Net cash, 31 December                   92             52


    Net cash

    x EUR 1 million                   2008    2007

    Cash and cash equivalents          109      87
    Bank loans                         (17)   (35)

                                        92      52

    Unrestricted cash balances          75      40
    Proportionately consolidated        17      12

                                        92      52

    Net financing position

    EUR 1 million                     2008    2007

    Net cash                            92      52
    Current portion of long-term        (7)    (18)
    loan
    Long-term loans                   (126)    (97)

                                       (41)    (63)

SOURCE Ballast Nedam NV