Ballast Nedam Trading Update Third Quarter 2012

Ballast Nedam accelerates change in profile

<pre>    
    - Forecast for 2012: due to expected reorganization costs and impairment
      amounting to EUR 45 million, the forecast for 2012 has been revised to an operating
      loss of approximately EUR 30 million
    - Accelerated change in Ballast Nedam profile: EUR 15 million reorganization
      expenses
    - Impairment of EUR 30 million: on land positions, goodwill and property, plant
      and equipment
    - Stable order book of EUR 1.8 billion
</pre>    Ballast Nedam is accelerating its execution of the strategy of focusing on the growth
market of integrated projects and specific niche markets. This decision was prompted by
the sustained poor market outlook. The company's profile will change faster as a result,
with substantial consequences for several companies that operate in strongly
capacity-driven markets. Accordingly there will be less exposure to these loss-making
traditional markets.

    Situation in the third quarter of 2012

    Ballast Nedam's operational results in the third quarter were approximately the same
as in the first half.

    Excellent results were achieved on several large multiyear projects and in the niche
markets. The results endorse Ballast Nedam's strategy of focusing on the growth market of
integrated projects and the niche markets of industrial construction, offshore wind
turbines, secondary raw materials and alternative fuels. On the other hand losses
increased in the regional companies: in building and infrastructure, and some specialized
companies. These companies operate mainly on the strongly capacity-driven markets.

    The markets have deteriorated more than we foresaw at the half-year point. The lower
volume in the market provoked fierce competition and greater price pressure in several
strongly capacity-driven market segments. Our expectation is that these poorer market
conditions will persist.

    The above has led to accelerated execution of the strategy of focusing on integrated
projects and niche markets, which are performing well. The pace of the shift in Ballast
Nedam's profile from a major player on the traditional markets to a prominent player on
the integrated projects market, such as the PPP projects and specific niche markets,
including offshore wind turbines, has been stepped up accordingly. There will be radical
changes in the regional companies and some specialized companies that operate mainly in
the strongly capacity-driven markets. A number of reorganizations are now in progress and
others will be defined and initiated in the fourth quarter. For the full year of 2012 this
means between 400 and 500 fewer jobs and the formation of a reorganization provision of
approximately EUR 15 million. Ballast Nedam's current redundancy package will apply and
there is a mobility centre to help employees move from work to work. The number of
employees at the end of 2011 was 3,989.

    These deteriorating prospects and the persistently poor situation on the property
market are expected to lead to a total impairment of approximately EUR 30 million in the
fourth quarter. Some two-thirds of the impairment is on land positions, and the rest
mainly on goodwill and property, plant and equipment.

    Among the additions to the order book in the third quarter are Venlo's new city
council offices (EUR 35 million), the Futura atrium building in Zoetermeer (EUR 16
million) and the renovation of the A50 highway bridge over the river Waal at Ewijk (EUR 68
million in consortium).

    The order book contracted in the third quarter by EUR 51 million to EUR 1,848 million
because of good progress in particular on the prominent multiyear major projects, such as
the A2 integrated project in Maastricht, the A15 Maasvlakte - Vaanplein PPP and the
Erasmus MC university medical centre in Rotterdam.

    On the niche market for secondary raw materials Feniks Recycling signed the contract
for an installation in Norfolk. This is Feniks Recycling's eighth installation in England
for recovering secondary raw materials from waste incinerator bottom ash, and it will be
operational in late 2015.

    The net financing position decreased in the third quarter by EUR 19 million to EUR 174
million negative. Much of the decrease corresponds with an increase in the non-recourse
loans because of progress on the major A15 Maasvlakte - Vaanplein highway construction PPP
in Rotterdam.

    The extension in March 2012 of one of the long-term loans renders refinancing of the
two long-term loans amounting to EUR 83 million unnecessary in the coming years.
Refinancing will not need to be considered until 2015 and 2017, respectively. There are no
financial covenants in the conditions of these loans.

    Revised profit forecast for 2012

    Due to expected reorganization costs and impairment amounting to EUR 45 million, the
forecast for the full year of 2012 has been revised to an operating loss of approximately
EUR 30 million.

    We stated in the half-year report that the earlier forecast of approximately unchanged
profit for the full-year of 2012 was under pressure. The operating profit for 2011 was EUR
19 million.

    Ballast Nedam engages in integrated projects in The Netherlands in four areas of work:
housing, mobility, energy and nature. Within this area we focus on the niche markets:
industrial construction, offshore wind turbines, secondary raw materials and alternative
fuels. In a number of areas of expertise, we also operate internationally. The Ballast
Nedam share is included in the Amsterdam Small Cap Index (AScX) of NYSE Euronext.

    Ballast Nedam's approach is based on life cycle thinking and acting: we develop,
construct, manage and recycle. We are involved in long-term management, maintenance and
operation of projects and organize financial feasibility. Our supply and specialized
companies deliver competitive edge through innovation, cost leadership and purchasing
strength. Ballast Nedam's range of services is shifting towards specific product-market
combinations with greater added value.

    Ballast Nedam creates enduring quality combined with lower life cycle costs for its
customers and society. http://www.ballast-nedam.com



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