Report of the Executive Board

Review of 2008

Batenburg Beheer closed the year 2008 with net income of EUR 6.0 million on revenue of EUR 156.0 million. Compared to 2007, which was a record year, the result for 2008 was 9% lower and turnover 6%. On balance, acquisitions and disinvestments affected neither the result nor the turnover for 2008. The small-scale operations of TIP with annual turnover of less than EUR 1 million were taken over by Bevar in mid-September of the year under review. In December, Hoogendoorn sold Hoogendoorn Projects, its technical installation operations with eight employees.

The technical installation group's turnover was down from EUR 114 million to EUR 103 million, or 10%. This turnover was evenly divided over the year, but that of the Technical Trading group slowed down in the latter half of 2008. Adjusted for the acquisitions and disinvestments in 2007, the turnover of the other technical installation companies achieved organic growth of 5% in 2008. For the whole of 2008, the turnover of the Technical Trading group rose 4%, from EUR 51 million to EUR 53 million. Ignoring the contribution of the technical trading companies taken over in 2007 and 2008, the turnover of the other technical trading companies suffered negative organic growth of 8%.

Operating income amounted to EUR 7.3 million, which is 7% lower than in 2007 (EUR 7.9 million). The first half of the year under review was difficult owing to disappointing Technical Installation group operations. This segment achieved a strong recovery in its result in the second half, ultimately resulting in an Ebit margin of 2.5% (2007: 2.2%). The Technical Trading group turned in a good performance in the first half. A slowdown in the result had been expected in the Technical Trading segment mid-way through 2008. It duly materialised, so that the Ebit margin for 2008 amounted to 10,1% (2007: 11.2%).

Overall, the effect of the credit crisis on the economies of the Netherlands and Belgium was first felt in the early-cyclical technical trading sector. The good performance of the technical installation segment in the second half helped reduce the impact of the economic slowdown on Batenburg Beheer N.V.'s total result. Net income for 2008 was down by EUR 0.6 million, a situation that had already been reached mid-way through the year. The result achieved in the second half was comparable to that for the same period a year earlier. Earnings per share for the whole of 2008 amounted to EUR 2.50 (2007: EUR 2.75).