Trading update Royal Imtech - Seite 2

Constructive and advanced dialogue with financiers

To address the slower than anticipated return to profitability, Imtech and its financiers are in a constructive dialogue about all possible long term structural solutions and are in a constructive and advanced dialogue about an amendment to the financing arrangements including an increase in liquidity headroom for the group and its subsidiaries. A liquidity facility of €75 million, in addition to the existing facility of €700 million, has been agreed to, subject to credit committee approval of certain financiers.

Imtech agreed with its main financiers, subject to credit committee approval of certain financiers, to utilise a portion of its available guarantee headroom to facilitate such liquidity facility. The liquidity facility will be available until the end of December 2015 in two tranches of €37.5 million. The first tranche is expected to become available within the next week. The second tranche will be available within four weeks, provided that certain conditions are met. Final processing and signoff on this amendment of the financing arrangements is expected within a week and Imtech will update the markets in due course.

Hiring of Alvarez & Marsal and appointment of a Chief Restructuring Officer

In an effort to accelerate Imtech's turnaround, the company has hired Alvarez & Marsal, a leading global professional services firm specialised in providing comprehensive performance improvement, turnaround management and interim management services. Mr. Stefaan Vansteenkiste, an experienced turnaround manager and country head of Alvarez & Marsal Benelux, will assist and complement Imtech's management board as Chief Restructuring Officer effective the second half of August. Mr. Vansteenkiste will be responsible for reviewing and overseeing the implementation of Imtech's restructuring and performance improvement initiatives.

Outlook for the rest of the year

Based on the performance of the first half year and an updated forecast for the remaining of the year, Imtech announces that the return to profitability takes more time than previously anticipated. Particularly, this applies to the performance in Germany (challenges in downsizing the business and higher than expected losses in old projects), the Dutch building services business (higher than expected project losses and lower margins) and the water business in the UK (project losses in closure of several larger older contracts and market related start-up delays of new projects). For those reasons, achieving a positive operational EBITDA for the year will be very challenging.