KEMA Achieves 48% Profit Growth in 2008

ARNHEM, The Netherlands - Favorable Market for Energy Consulting, Testing and Certification
Activities

KEMA has realized continued growth in sales and results over 2008. Global
developments in energy, like the transition to sustainable energy and a
stronger international position, pushed net sales by 13.3% to EUR 226.7
million (2007: EUR 200.1 million). Autonomous sales growth increased to
15.2%, while net profit rose by 48.1% to EUR 16.6 million (2007: EUR 11.2
million) as a result of higher sales and continued improvement of operating
processes. As in 2007, all business units contributed to this growth, which
occurred in both the Dutch and the international offices.

Major developments in 2008

KEMA’s growth strategy again proved successful in 2008. Autonomous
growth, both in the Netherlands and internationally, contributions by new
offices and acquisitions, and continued professionalization boosted the
operating result by 66.8% to EUR 15.9 million. The cost level was marginally
higher than in 2007. In spite of the economic recession, the markets in which
KEMA operates did not show any significant slowdown. Particularly the
operations in the U.S. grew strongly (sales up by 22%). The number of FTEs at
the end of 2008 increased by 13.4% to 1,751 (end of 2007: 1,544). For the
first time in KEMA’s 80-year history, the firm’s international staff
outnumbered its Dutch staff. Its development in 2007 and 2008 earned KEMA a
nomination for the prestigious King Willem I Award in 2008.

Global energy consulting operations benefited from the strong emphasis on
transition to sustainable energy, strict environmental targets and
regulations, and new technology like ’smart grids’ and ’smart metering’.
Moreover, there was a strong demand worldwide for services relating to
electric power generation and optimization of obsolete energy plant and
infrastructure.

KEMA continues to play a prominent role in the field of testing and
certification in the high-voltage and medium-voltage sectors. Developments
like the installation of ultra-high-voltage lines in China and a strong
demand for third-party certificates in the Middle East had a favorable
effect. The low-voltage sector also developed positively. The clear trend
towards global testing and certification standards, and the strong focus on
health, safety and the environment had a positive impact. This also applies
to the continued internationalization of manufacturers, retailers and
wholesalers of electrical appliances and components.

Innovation

In 2008, KEMA continued to invest in innovation. It commissioned its new
Flex Power Grid Lab, while further optimizing and integrating internal
innovation processes into the organization. Concrete results of these efforts
include successful projects and services in the area of electric transport,
energy storage, ’smart grids’ and ’smart metering’, ‘green buildings’,
certification of LED lighting, ultra-high-voltage level testing and
sustainable energy. KEMA also further developed services promoting innovation
in client organizations, such as support to energy companies in their energy
transition process.

Investments

In the past year, KEMA continued to invest in growth and
internationalization. A new office was opened in Lisbon and two companies,
Northeast Inspection Services, Inc. (NISI) and RLW Analytics, were acquired
in the U.S. Existing offices were able to expand and reinforce their
positions, like in the United Arab Emirates, Germany, Spain and the U.S.
Construction of a new high-voltage laboratory - the world’s biggest
commercially operating high-voltage lab - was close to completion. KEMA also
invested in other test facilities in the Netherlands and abroad, like the
moving and expansion of the Shanghai lab. Substantial investments were also
made in staff training and processes relating to project and account
management and finance. In spite of these investments, KEMA managed to
further reinforce its financial position.

Comment by Pier Nabuurs, KEMA CEO:

‘Last year was a good one for KEMA. Not only because we continued to
improve our results, but also because we reinforced our market position. In
2008 again, we clearly noticed that major global players are calling in our
expertise for increasingly more complex projects; not only international
energy utilities or producers, but also government bodies. However, the
economic recession has intensified and we too will experience an impact.
Nevertheless, our focus for 2009 is still on continued growth.’

Financial summary (figures in millions of euros)

Profit and loss account 2008 2007 Movement (%)
Net sales 226.7 200.1 13.3%
Operating result (EBIT) 15.8 9.5 66.8%
Net result 16.6 11.2 48.1%
Balance sheet 2008 2007 Movement (%)
Total 133 112.4 18.3%
Shareholders’ equity 64.9 49.6 30.9%
Net liquidities 27.2 27.8 -2.2%
Ratios 2008 2007 Movement
Net margin 7.3% 5.6% -
Return on shareholders’ equity 25.6% 22.6% -
Return on capital invested 42.2% 49.6% -
Solvency 49.7% 44.9% -
Workforce (FTEs at year end) 1,751 1,544 13.4%

Prospects

Fundamental developments in the area of energy and testing and
certification are promising for KEMA’s activities. However, the current
global economic situation is unprecedented and will likely affect KEMA as
well. At this point, KEMA cannot predict its potential impact on the future
results. Nonetheless, KEMA believes it is right on target in continuing its
successful implementation of the strategy launched in 2007.

The forecast of continued growth assumes unchanged accounting principles
and stable exchange rates, and excludes special items and unforeseen
developments.

About KEMA

Founded in 1927, KEMA (www.kema.com) is an independent knowledge
provider operating globally in the energy chain and specializing in
high-quality services in the field of business & technical consultancy,
operational support, measurements & inspections and testing & certification.
As an independent organization, KEMA provides consultancy and support to both
government bodies and manufacturers, suppliers and end-users of energy.
Moreover, KEMA certifies products, systems and individuals for a wide range
of clients. KEMA employs 1,800 professionals in 20 countries worldwide.

Source: KEMA

Message to the editors (not to be published) For more information on this press release, please contact Rolf van Stenus, KEMA Corporate Press Officer, at +31-26-3-56-2607 or rolf.vanstenus at kema.com. For the U.S. please contact Kristen Brewitt, KEMA Press Officer U.S., at +1-781-418-57-14 or kristen.brewitt at kema.com.