Royal BAM Group maintains profit projection for 2003

15 May 2003 22:07 - Royal BAM Group nv

Royal BAM Group is forecasting higher earnings per share in 2003 Resolution amending Articles of Association carried Proposed dividend (€1.55 in cash) approved by shareholders’ meeting

Progress

At the Annual General Meeting of Shareholders held in Amsterdam this afternoon, Royal BAM Group announced that - on the basis of existing information - the profit projection for 2003, of higher earnings per share (2002: €4.35), is maintained.

As at the end of March Royal BAM Group had an order book containing a good volume of work. Although the value of the work on order, at €10.0 billion, was down by 2% compared with the situation as at year-end 2002, on an organic basis the drop was 1%, the effect of lower exchange rates for the UK and US currencies in particular being 1% negative.

Of the total order book, €5.1 billion relates to 2003, €3.1 billion to 2004 and €1.8 billion to later years. Of the forecast turnover in 2004, approximately 40% was secured as at the end of March 2003.

Amendment of the Articles of Association

The amendment of the company’s Articles of Association - which was approved by the shareholders - means that the share premium reserve formed at the time of issue of the convertible financing preference shares will be converted into a reserve pursuant to articles. This represents a simplification of the procedure for converting the financing preference shares into ordinary shares. Additionally, the transfer of the financing preference shares currently placed with investors has been simplified in that the approval procedure no longer applies.

Dividend

The Annual General Meeting of Shareholders declared a dividend on the ordinary shares, as proposed, of €1.55 in cash (2001: €1.55 in cash).

Pursuant to the provisions of the Articles of Association concerning profit appropriation, the Executive Board has also decided to award the holders of cumulative financing preference shares a dividend on the basis of a yield of 8.83% per annum of the amount of €21 paid in at the time of issue for the convertible preference shares and 9.13% per annum of the amount of €21 paid in at the time of issue for the non-convertible preference shares. In respect of the period between 16 December 2002 and year-end 2002 this means an amount of €0.081284 per convertible financing preference share (or depositary receipt) and €0.084046 per non-convertible financing preference share (or depositary receipt).

The shares and depositary receipts will be traded ex dividend with effect from 20 May 2003. The dividend will be made payable as from 3 June 2003.

Bunnik, 16 May 2003
Executive Board, Royal BAM Group

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