Index

Chapter page

1 Messagetotheshareholders 2

2 Management 4

3 CorporateprofileofBrunelInternational 5

4 FinancialHighlights 6

5 ReportfromtheSupervisoryBoard 7

6 CorporateGovernance 10

7 Risks,RiskManagementandControlSystems 14

8 BrunelInternational’svision,objectivesandstrategy 18

9 ReportfromtheBoardofDirectors 22

10 GeneralShareholderInformation 32

11 AnnualAccounts2007 33

12 Additionalinformation 68

13 Auditor’sreport 69

14 Groupfinancialrecord 71

15 Addresses 72

AnnualReport2007 1

Index

1 Messagetotheshareholders

2 AnnualReport2007

ItiswithpleasurethatIcanreporttoyouthat2007hasbeenaprosperousyearforBrunel.Worldwide,turnovergrewby16%toEUR580million.EBITincreasedby45%tooverEUR51million.NetincomeincreasedfromEUR26.3milliontomorethanEUR36million,arecordinBrunel’shistory.

EquallysatisfyingisthefactthattheobjectiveswithregardtoturnoverandEBITwereachievedandinmostcasesevensurpassed.EBITasaper-centageofturnoverincreasedfrom7.1%in2006to8.8%in2007.TheexcellentperformanceofBrunelNetherlandsresultedinanEBITof20%.BrunelGermanyachievedthelargestincreaseinturnover(24%).IntermsofturnoverBrunelEnergyisthelargestofBrunel’sdivisions.ItsachievementofEUR287millioninturnoverrepresentsanincreaseof13%comparedto2006.

ThemarketconditionsinBrunel’ssegmentsandregionshavebeenfavourable.InmostmarketsBruneloutperformeditscompetitorswhichweconsiderevidenceofthestrengthofbothourmarketapproachandourorganisation.ThefocusonparticularsegmentsandregionsandtheworldwidenetworkofBrunelsalesofficesarekeyelementsinthecompany’sgrowthstrategy.

Theimprovementingrossprofitisaresultoftheuseofwell-adjustedstandardisedoperatingprocessesaswellasastrongcostawarenessthroughouttheorganisation.

Brunel’smostimportantassetisitscompanyculture.Thatcultureisreflectedintheattitudeanddailyeffortofourpeople.Theyarethebridgebetweenourclientsandourspecialists.TheyaccountforthesubstanceoftheBrunelbrand.Talentedandpracticalpeoplewhocarryouttheirworkinaclimateofsimplicityandtranspar-ency.Entrepreneurswithintheenterprise.

Generaleconomicprospectscompelustoexerciseacertainvigilance.Evenso,theoutlookforBrunel’sownsectorscontinuestobefavourable.Demandforengineersandotherspecialistsintheworld-wideoilandgasindustrycontinuestobestrongandtheshortageofhighlyeducatedprofessionalsintheNetherlandsandGermanycontinuestogrow.Asin2007,Brunel’sBoardofDirectorsexpectstobeabletoprofitfromthesedevelop-mentsin2008andanticipatesasignificantgrowthinallsectors,bothinturnoverandgrossprofit.Moreover,weexpecttoseeanimprovementinEBITforbothBrunelGermanyandBrunelEnergy.

Thetightemploymentmarketinthevarioussegmentsishavingadualeffect.Ontheonehand,strongdemandisthreateningtoexceedsupply.Ontheotherhand,inthissellers’marketemploy-eesaremoreinclinedtoswitchemployer.Self-con-fidenceishigh;peoplearen’tafraidofchange.

AnnualReport2007 3

J.A. van BarneveldChiefExecutiveOfficer

Oneofthemostimportantfactorsforsuccesswillbetheextenttowhichweareabletocontinuestrength-eningourorganisationwithtalentedaccountman-agersandrecruiters.Brunelisoftheopinionthattheemploymentmarketwillcontinuetoofferstrongcommercialopportunitiesinthecomingyear.

Iwouldliketothankallofouremployeesacrosstheworldfortheirdedicationandtheircontributionstothecompany’ssuccess.IhopethatallofyouarejustasproudasIamoftheresultswehaveachieved.And,ofcourse,mythankstoourcustomersfortheircooperationandtoourshareholdersforthetrusttheyhaveplacedinthecompany.

Brunelremainsambitiousanddeterminedtomake2008anothersuccessfulyear.

The Board of Directors

JanArievanBarneveld

Messagetotheshareholders

4 AnnualReport2007

SuperviSoryBoard

J.E. Jansen (70, male), ChairmanFormermaindirectorship: ChairmanoftheManagingBoardofDeltaLloydVerzekeringsgroepN.V.otherdirectorships: ChairmanoftheSupervisoryBoardofTransmarkFCXN.V.,memberofthe

SupervisoryBoardofDeltaDeelnemingenN.V.andDeltaLloydInvestmentManagersGmbH.

Nationality: Dutchappointed: May21st,1999,re-appointedonMay23rd,2003andonMay24th,2007fora

periodoffouryears

A. Schouwenaar (61, male), Vice-ChairmanMaindirectorship: ChairmanoftheManagementBoardandChiefExecutiveOfficerofEndemol

GroupB.V.otherdirectorships: ChairmanoftheSupervisoryBoardofTalpaMediaHoldingN.V.andAsito

DienstengroepB.V.,memberoftheSupervisoryBoardofHollandCasinoandStageEntertainmentB.V.

Nationality: Dutchappointed: May22nd,2001,re-appointedonMay19th,2005foraperiodoffouryears

D. van Doorn (59, male), Supervisory DirectorMaindirectorship: ChiefExecutiveOfficerandChairmanoftheExecutiveBoardofVionN.V.otherdirectorships: MemberoftheGeneralExecutiveoftheNationalCooperativeCouncilfor

AgricultureandHorticultureNationality: Dutchappointed: May18th,2006foraperiodoffouryears

BoardoFdireCtorS

J.A. van Barneveld (58, male), Chief Executive Officer JanArievanBarneveldwasappointedCEOofBrunelInternationalN.V.on

September29th,2000.

AfterhavingcompletedhisQuantativeBusinessEconomicsandAccountingstudiesattheVrijeUniversiteitofAmsterdam,hestartedhiscareerasaseniormanageratCoopers&Lybrand.VanBarneveldthenheldsuccessivemanage-mentpositionsatengineeringfactoryMeijn,BelgianinsurancecompanyCoronaandHoogeHuysVerzekeringenoftheNetherlands.HismostrecentpositionbeforetransferringtoBrunelwasasdirectorofAvéroLife&Mortgages,whichispartoftheAchmeaInsuranceGroup.

2 Management

AnnualReport2007 5

3 CorporateprofileofBrunelInternational

BrunelInternationalN.V.isaninternationalprovid-erofbusinessservicesthatspecialisesintheflexibleplacementofspecialistsindefieldsofEngineering,ICT,Legal,FinanceandInsurance&Banking.BrunelInternationalprovidessuchspe-cialiststhrougharangeofstaffing,projectman-agement,recruitmentandconsultancyservices.

Brunelservestheworldmarketforprofessionalstaffingandrecruitmentservicesfromtwomainperspectives.Ontheonehand,Brunelfocusesonspecificcoun-triessuchastheNetherlands,Germany,BelgiumandCanada.Ontheotherhand,thecompanyaimsitsservicesatspecificsupra-regionalsegments.Examplesincludeourfocusontheoilandgasindustriesandontheinternationalautomotive,railandaerospacesectors.

Thecompanyoperatesfromitsowninternationalnetworkof90branchofficesin25countries.

Brunelprovidesaddedvalueforclientsinbusinessandgovernmentbyfillingtheirknowledgeandcapacityneedsinahighlyeffectivemanner.Thecompanystandsoutfromitscompetitorsthankstothesuperiorservices,whichcentrearoundhigh-qualityaccountmanagementandrecruitmentmanagementandin-depthknowledgeoftherelateddisciplinesandlabourmarketsegments.

Sinceitsincorporationin1975,Brunelhasdevel-opedintoaninternationalgroupwithover7,000employeesandanannualturnoverof580millioneuros(2007).

BrunelislistedonEuronextAmsterdamN.V.andisincludedintheNextPrimesegmentandtheAmsterdamSmallCapIndex(AscX).

6 AnnualReport2007

EUR million, unless stated otherwise 2007 2006profitEURmillion EUR EURNetturnover 579.9 499.1Grossprofit 136.3 115.3Operatingcosts 85.1 80.0Operatingprofit(ebit) 51.2 35.3Resultbeforetax 51.3 35.3Tax 14.4 11.1Groupincome 36.9 26.7Netincome 36.1 26.3

Ratios Changeinturnoveronpreviousyear 16.2% 27.7%Grossmargin 23.5% 23.1%Operatingprofit/netturnover 8.8% 7.1%Groupincome/netturnover 6.4% 5.4% Balance EURmillion Workingcapital 118.6 98.9Groupequity 135.4 113.6Balancesheettotal 197.9 178.5Netcashflow 15.0 -4.1 Ratios Groupequity/totalassets 68.5% 63.6%Currentassets/currentliabilities 2.91 2.54 Workforce Employeestotal(average) 7,248 6,148Employeesindirect(average) 855 752Employeestotal(yearend) 7,896 6,792Employeesindirect(yearend) 920 813 Shares ineuros Earningspershare 1.59 1.16Shareholders’equitypershare 5.93 5.00Dividendpershare 0.70 0.50Highestprice 26.66 34.94Lowestprice 14.86 16.95Closingpriceat31December 16.35 26.00

4 FinancialHighlights

AnnualReport2007 7

2007wasasuccessfulyearforBrunelInternational.Impressivegrowthwasagainachievedintermsofsalesandprofit.Inaddition,Brunelincreaseditsmarketshareinvirtuallyallofthemarketsegmentsinwhichitoperates.

TheSupervisoryBoardisawarethatthissuccessisduetothecommitmentandeffortofBrunelemployeesacrosstheworldanddulycomplimentsallofthoseinvolvedfortheresultsachieved.

Brunel’sperformancewasoptimalandwecanlooktothefuturewithconfidence.TheSupervisoryBoardendorsestheproposaloftheBoardofDirectorstopayoutadividendofEUR0,70incash.Wealsosupporttheproposaltoretaintheremainingnetprofitandaddittothereserves.Theprofitappropriationproposalisbasedontheannualaccountsasincludedinthis2007AnnualReport.TheannualfiguresweredrawnupbytheBoardofDirectorsanddiscussedintheAuditCommitteeandSupervisoryBoard.Theannualaccounts,aswellasthequalitativenotes,wereauditedbyDeloitteAccountantsBV,whichhasissuedanunqualifiedauditopinion(seepage69).

TheannualaccountswillbepresentedduringtheGeneralMeetingofShareholderson15May2008fordiscussionandapproval.WerecommendthattheMeetingadopttheannualaccountsandagreetotheappropriationofthenetprofitasproposedbytheBoardofDirectors.

Composition of the Supervisory BoardInaccordancewiththeminimumnumberestab-lishedinitsArticlesofAssociation,BrunelInter-national’sSupervisoryBoardconsistsofthreeindividuals.Furthermore,theSupervisoryBoardisoftheopinionthatitscompositionisappropriatetothecompany’scurrentnatureandsize.MrJ.E.JansenwasreappointedforatermoffouryearsduringtheGeneralMeetingofShareholderson24May2007.

Structure of the Supervisory BoardAccordingtotheguidelinesoftheCorporateGovernanceCode,BrunelInternationalisnotobligedtosetupseparateauditing,remuneration,andselectionandappointmentscommittees.However,BrunelhashadanAuditCommitteeforalongtimeandhasoptedtoretainthisstructure.TheAuditCommitteeregulationshavebeenpublishedonthecorporatewebsite.TheSupervi-soryBoard,BoardofDirectorsandtheexternalauditorarerepresentedintheAuditCommittee.

ThecompleteSupervisoryBoardalsoservesastheRemunerationCommitteeandSelection&AppointmentsCommittee.Thesetasksareexecutedinfullcompliancewiththeregulationsthatgovernthem,regulationsthatcanlikewisebefoundonthecorporatewebsite.

Meetings of the Supervisory BoardTheSupervisoryBoardconvenesregularlythrough-outtheyearaccordingtoameetingscheduleestablishedinadvance.Duringthesemeetings,consultationtakesplacewiththeBoardofDirec-torsandwithSeniorManagement.Inaddition,theSupervisoryBoardperiodicallyholdsclosedmeet-ings.Outsidethemeetingschedule,itsmembersareavailableforconsultationwiththeBoardofDirectorsifnecessary.

5 ReportfromtheSupervisoryBoard

8 AnnualReport2007

Duringtheyearunderreview,theSupervisoryBoardmetfivetimesinthepresenceoftheBoardofDirectors.Noneofitsmemberswereeverabsent.Furthermore,twomeetingswereheldatwhichtheChiefExecutiveOfficerwasnotpresent.TheAuditCommitteemetfourtimesduringtheyearunderreview,priortothepublicationofthe2006figuresandpriortoannouncingthe2007semi-annualfigures.ThefindingsoftheAuditCommitteeweresubsequentlyreportedbyitschairmantoallmembersoftheSupervisoryBoard.

Supervision and advice in 2007TheSupervisoryBoardconsidersthecompany’sstrategyandgrowthinturnovertobeitskeyareasoffocusand,intheyearunderreview,itwascloselyinvolvedinassessingbusinessobjectivesandstrategicplanningforthefuture.

ThefollowingissueswereregularlydiscussedinthepresenceoftheBoardofDirectors:• Thefinancialandcommercialperformanceofthecompanyasawholeandofindividualbusinessunitspercountryandpersegment

• Trendsanddevelopmentsinthevariousinternationalsecondmentmarkets

• Brunel’sinternationalstrategyaswellasitsspecifictranslationintermsofsegmentsandregions

• TheacquisitionorsaleofbusinessunitsbasedonproposalstothisendbytheBoardofDirectors,andperformancemonitoringofbusinessunitsacquiredinrecentyears

• CompliancewiththeCorporateGovernanceCode

• RiskManagement,administrativeorganisationandinternalauditing;in2007theSupervisoryBoardoversawafurtherstrengtheningofperformanceintheseareas

ThefollowingmatterswerediscussedduringclosedmeetingsoftheSupervisoryBoard:• TheperformanceoftheSupervisoryBoardasawholeandofitsindividualmembers

• Thequalityofbusinessoperations;theperformanceoftheChiefExecutiveOfficer

• TheremunerationstructurefortheChiefExecutiveOfficer

TheAuditCommitteeaddressedthefollowingissuesduringitsmeetings:• The2006annualaccounts• Theauditingprocessandthefindingsoftheexternalauditor

• Thecompany’sfinancialresultsforeachcompletedperiod

• Specificriskaspects• RiskManagement,administrativeorganisationandinternalauditingingeneralandperbusinessunit

Remuneration structure for the Board of DirectorsRemunerationoftheChiefExecutiveOfficerisbasedontheremunerationpolicyadoptedbytheGeneralMeetingofShareholders.TheSupervisoryBoardisoftheopinionthatremunerationofthepartiesconcernedaccordingtotheguidelineswaseffectivein2007.FurtherinformationabouttheremunerationoftheChiefExecutiveOfficerisincludedintheCorporateGovernancechapter.

Independence and conflicts of interestTheSupervisoryBoarddeclaresthattheguidelinesoftheCodepertainingtotheindependenceofmanagementwerecompliedwithinfullduringtheyearunderreview.Nosituationsoccurredandnotransactionstookplacethatcouldbeconstruedasinvolvingconflictsofinterest.Furthermore,theSupervisoryBoardconfirmsthatnoneofitsmembersheldBrunelInternationalsharesin2007.

ReportfromtheSupervisoryBoard

AnnualReport2007 9

ResultsThemainobjectivefor2007wastoachievefurthergrowthinturnoverandprofit.Anadditionalaimwastoimprovethesalesandrecruitmentstrength.Substantiallyrefiningandtighteningthemonitor-ingstructurewithrespecttoRiskManagement,administrativeorganisationandinternalauditingwasalsoanexplicitaim.

BrunelInternational’sSupervisoryBoardnoteswithsatisfactionthatallobjectiveswereachieved.BrunelInternationalisawellmanagedcompanythatcanfacethefuturewithconfidence.WeagaincongratulateBrunel’smanagementandemployeesfortheexcellentresultsandwisheveryoneanequallysuccessful2008.

Amsterdam, 25 March 2008

The Supervisory Board

J.E.Jansen(chairman)A.Schouwenaar(vicechairman)D.vanDoorn

ReportfromtheSupervisoryBoard

10 AnnualReport2007

iNtroduCtioN

BrunelInternational’sBoardofDirectorsandSuper-visoryBoardfullyacknowledgetheDutchCorporateGovernanceCode(Code).TheBoardofDirectorsandtheSupervisoryBoardareoftheopinionthatBrunelInternationalN.V.iscomplyingwithallapplicableprinciplesoftheCodeandvirtuallyallbestpracticesmentionedintheCode.ThecompanyhasalsotakennoteofthereportfromtheCorporateGovernanceCodeMonitoringCommittee.

IntheeventthattheapplicationofabestpracticestipulationshouldconflictwithBrunelInternational’sinterests,theBoardofDirectorsandtheSupervisoryBoardreservetherighttodeviatefromtheCodeinthatparticularrespect.Thismayoccur,forexample,incasesinwhichtheopennessofinformationasrequiredbytheCodewouldbedetrimentaltoBrunelInternational’scompetitiveposition.

Compliance and continuationAtpresent,BrunelInternational’sBoardofDirectorshasonemember,theChiefExecutiveOfficer(CEO).TheSupervisoryBoardconsistsofthreemembers.TheBoardofDirectorsandSupervisoryBoardareresponsibleformaintainingthecorporategover-nancestructureandforensuringcompliancewiththatstructure.TheyrenderjointaccountontheseissuestotheGeneralMeetingofShareholders.Thischapterdescribestheprincipalaspectsofthecorporategovernancestructure.Ifapplicable,explanationsfordeviatingfromtheCode’sbestpracticestipulationsareprovided.Itshouldalsobenotedthat,inaccordancewithbestpracticeprovi-sionI.2.,everysubstantialchangetothecorporategovernancestructureandcompliancewiththeCodewillbesubmittedtotheGeneralMeetingofShareholdersfordiscussion,eachlistedasasepa-rateagendaitem.Duringtheyearunderreviewnosubstantialchangestothecorporategovernancestructurewereapplied.

Duties and working methods of the Board of DirectorsTheBoardofDirectorsperformsitsdutiesandappliesitsworkingmethodswithdueobservanceoftheprovisionsoftheCode.ContrarytotheprovisionsofbestpracticestipulationII.1.1,thesolememberoftheBoardofDirectorsundertheArticlesofAssociationhasbeenappointedforanindefiniteperiodoftime.BrunelInternationalintendstocomplywithbestpracticeprovisionII.1.1whenmakingnewappointments.However,theCEOwasappointedbeforetheCodewasimple-mentedandthecompanywishestorespectitsexistingcontractwiththeCEO.

6 CorporateGovernance

AnnualReport2007 11

CorporateGovernance

TheBoardofDirectorssubmitsforapprovaltotheSupervisoryBoardthecompany’soperationalandfinancialobjectives,thestrategytoachievethesegoalsaswellasthepreconditionsassociatedwiththatstrategy.

Operational and financial goalsBrunelInternational’sprincipalobjectiveistorealisesustainablegrowthinrevenuesandprofit-ability.EachoftheregionsormarketsinwhichBruneloperatesisexpectedtocontributetothisgrowth.Thebusiness’senvisionedgrowthisstructural.Sustainabilityisessentialinordertocounterbal-ancethecycliccharacterofBrunel’scoremarkets.

StrategyThestrategyadoptedtorealisetheobjectivesdescribedisprimarilybasedontheutilisationofsuperioraccountmanagement.Accountmanage-menthasapivotalfunctioninmatchingclientsandprofessionals.Speakingthelanguage,under-standingclient-specificdemands,andunderstandingthebackgroundandmotivationsoftheavailablecandidatesultimatelydeterminethequalityofthematchingprocess.Inaddition,Brunel’sstrategyisbasedonfocusingitsservicestoallowtheorganisationtogaindominantpositionsincertainmarketsegments.Dependingonthespecificcircumstances,thefocusmaybeonindustries,professionaldisciplinesand/orregions.Brunelalsostrivesforoperationalexcellenceinitsfrontandbackofficeprocessestosupporttheprimaryprocess.BrunelInternational’snetworkallowsthecompanytopursueitsstrategybothonalocallevelandonaglobalscale.

PreconditionsTheprincipalpreconditionsthatapplyinachievingthedefinedobjectivesandpursuingthecompany’sstrategyare:

• Continualinvestmentintheglobalaccountmanagementandrecruitmentorganisations,inqualitativeaswellasinquantitativeterms;

• Athoroughunderstandingoflabourmarketsinthevariousregions,industriesandprofessionaldisciplines;

• InvestmentinthequalityoftheauxiliaryprocessesforboththebackofficeandforCustomerRelationsManagementandtheglobalcandidatedatabase.

oBJeCtiveS,StrategyaNdpreCoNditioNS

12 AnnualReport2007

CorporateGovernance

TheBoardofDirectorsandtheSupervisoryBoardareoftheopinionthatriskmanagementisextremelyimportantforthecontinuityofBrunelInternationalN.V.InthisconnectionwerefertothechapteraboutRisks,RiskManagementandControlSystems.Thissectionalsohighlightsthecompany’ssensitiv-itytoexternalcircumstancesandvariables,aswellasthewhistleblowerpolicy.

Remuneration of the members of the Board of DirectorsBrunelInternationalN.V.endorsesprincipleII.2oftheCode.TheremunerationpackageoftheBoardofDirectorsconsistsofabasesalary,avariableshorttermlot,avariablelongtermlotandapension.Thebasesalaryisperiodicallytestedagainstagroupofcomparablecompanies.Thevariableshorttermlotisforonehalfbaseduponfinancialgoalsandfortheotherhalfbaseduponindividualtargets.ThesefinancialgoalsandindividualtargetsareassignedpriortotherelevantyearbytheSupervisoryBoard.Assessmentofrealisationisconductedafteryear-endbytheSupervisoryboard.Thevariableshorttermbonusismaximizedto50%ofthebasesalary.Astheindi-vidualtargetsimplysensitiveinformationinrelationtothecompany’scompetitiveposition,nofurtherinformationcanbeprovided.Thelongtermlotconsistssolelyofoptions.Grantingofoptionsdependsonsustainablegrowthofoperatingprofitandmarketshareaswellasrealisationofthecompany’slongtermpolicies.Optionsmaybeexercisedthreeyearsaftervesting.Thepensionremunerationisadefinedbenefitplan.Theremunerationreport,thecompany’sremunera-tionpolicyandtheregulationsconcerningshare-holdingsarepublishedonthecorporatewebsite.

Conflicts of interest involving the Board of DirectorsNotransactionswereeffectedduringtheyearunderreviewwhichinvolvedaconflict,orthesemblanceofaconflict,betweentheinterestsoftheChiefExecutiveOfficerandthoseofthecompany.

Duties and working methods of the Supervisory BoardTheSupervisoryBoardperformsitsdutiesandappliesitsworkingmethodswithdueobservanceoftheprovisionssetoutintheCode.BestpracticestipulationsIII.1.2toIII.1.9inclusivearedealtwith,asfarasapplicable,inthesectionsManagementandtheReportoftheSupervisoryBoard.ThesegregationoftheSupervisoryBoard’srespon-sibilitiesanditsworkingmethodsarelaiddowninregulationstobefoundonthecorporatewebsite.

Independence, expertise and composition of the Supervisory BoardThecompositionofthecurrentSupervisoryBoardissuchthatthememberscanoperateindepen-dentlyfromandcriticallytowardsoneanother,theBoardofDirectorsandanysecondaryintereststhatmayapply.EachofthemembersoftheSupervisoryBoardiscapableofjudgingthemainpointsoftheoverallpolicyandpossessesthespecificexpertiserequiredtocarryouthisdutieswithinhisroleassetoutintheprofilefortheSupervisoryBoard.Noneofthememberscarrymorethanfiveothercommission-erships.TheprofileoftheSupervisoryBoardformsthebasisoftheselectionandappointmentofnewmembers.TheprofileandresignationschedulearepublishedontheBrunelwebsite.

iNterNalriSkMaNageMeNtaNdCoNtrolSySteMS

CorporateGovernance

AnnualReport2007 13

The roles of the Chairman and the Secretary of the Supervisory Board TheChairmanoftheSupervisoryBoardperformshisdutiesincompliancewiththeprovisionsofsectionIII.4.oftheCodeandisassistedbytheCorporateLegalCounsel.

Conflicts of interest involving the Supervisory BoardDuringtheyearunderreviewnotransactionstookplacewhichinvolvedaconflict,orthesemblanceofaconflict,withtheinterestsofthecompany.

Remuneration of members of the Supervisory Board Theremunerationofthemembersofthesuper-visoryBoardtakesintoaccounttheprovisionsofsectionIII.7oftheCode.Theregulationsforshare-holdingsarepostedonthecorporatewebsite.

General Meeting of ShareholdersBrunelInternationalN.V.complieswithprincipleIVoftheCode.TheArticlesofAssociationofthecompanyaswellastheagendafortheGeneralMeetingofShareholdersreflecttheapplicablebestpracticeprovisionslaiddowninthisprinciple.

Provision of informationInformationforanalysts,shareholders,thepressandotherpartiesinthefinancialmarketsisprovidedinaccordancewiththerelevantrecom-mendationsintheCode.Analysts’meetingsareannouncedonthecorporatewebsite.TheonlystipulationBruneldoesnotentirelycomplywithconcernsthepublicnatureofanalysts’meetings,forexamplethroughtransmissionontheinternet.Nocommentsotherthanreferencetofactualinaccuraciesareaddedtoanyanalysts’reportnorisanyfeepaidforsuchreports.Brunelalsoobservestherulethattheprovisionofcurrentfinancialornon-financialinformationtoanalystsshouldbe

suspendedforaperiodoftwomonthspriortothepublicationofannualandsemi-annualfigures.

Priority shareOneprotectivemeasureexistsregardingBrunelInternationalN.V.Thepriorityshare,whichhasaparvalueof€10,000,hasbeenissuedtoStichtingPrioriteitBrunel,subjecttotheconditionprecedentthatthemajorityshareholderlosesitsmajorityshareinBrunelInternationalN.V.’ssharecapital.Theprioritysharewillbefullypaidupassoonastheissuebecomesunconditional.Theprotectivestipulationsareincludedinthearticlesofassocia-tionofBrunelInternationalN.V.andcanbefoundonthecorporatewebsite.

Financial Reporting and AuditTheBoardofDirectorsandtheSupervisoryBoardcomplywiththeCode’sprinciplesregardingfinancialreporting,theexternalauditorandinternalauditing.ThechapterRisks,RiskManage-mentandControlSystemsdiscussestheseprinciplesinmoredetail.

14 AnnualReport2007

TheBoardofDirectorsofBrunelInternationalNVisoftheopinionthattheabilitytocontroloperation-al,financialandmarketrisksiscrucialtothecontinuityofthecompany.Forthatreason,riskmanagementandinternalcontrolaresubjectstowhichthemanagementpaysconsiderableatten-tionatallrelevantlevels.Inthisconnection,inthereportingyearmorethoroughpolicieswereintro-ducedonvariouspointsandexistingproceduresweretightenedup.

Operational risksIntheoperationalfield,BrunelInternationalhasidentifiedanumberofriskswhichalsoqualifyasdistinctivevaluedrivers:• attractionandretentionofqualifiedemployeesproductivity;

• managementandretentionofsuccessfulemployeesinkeypositions;

• executionandcontrolofadministrativeprocessesforbothemployeesandclients.

BrunelInternationaliscontinuouslymonitoringtheserisksandimprovingbothit’sadministrativeprocessesaswellasit’sorganizationalcapabilitiesonanongoingbasis.

Financial risksBrunelInternationalhasalwaysbeencharacterisedbyexceptionallyhighsolvencyrates.Thecompanydoesnotuseanylong-termcreditlinesandboastsfavourableliquiditypositionsandbankfacilitieswhichaccommodatetheday-to-daymanagementoftheworkingcapital.

BrunelInternational’sassetsincludealimitedamountofgoodwill.Asaresult,impairmentrisksandtheassociateddeteriorationofthesolvencylevelareruledout.

BrunelInternational’smostimportantassetsareitsaccountreceivables,spreadovermorethanathousandclients.Despiteinternalprocedures,significantuncollectibledebtscannotberuledout,buttheriskofamaterialerosionoftheoperatingprofitisverysmall.

InseveralcasesBrunelcompaniesconducttheirbusinessthroughsizableandsometimeslongrunninglocalcontractswithcustomers.Forvariousreasonsthesecontractsorthefinancialoutcomeofthesecontractsmightturnouttobelessfavour-ablethananticipated.

TheBrunelGroupdoesincurcurrencyrisks.Revenuesandexpensesareoftenstatedinthesamecurrency,whichhelpstoreducetheeffectofexchangeratedifferences.Therearealsotransla-tionrisksinconnectionwithforeignparticipations.

Awardedpensionschemesconcerndefinedcontributionschemesmanagedbyexternalparties.

7 Risk,RiskManagementandControlSystems

AnnualReport2007 15

Risk,RiskManagementandControlSystems

Market risksDespitethehighdegreeofuniformitywithinBrunelInternational’srangeofactivities,theytargetdifferentmarkets,clientsandsectors.Giventhatthosemarketsandsectorshavedifferenteconomiccycles,BrunelInternationalislesssensi-tivetocyclicaltrendsthancompaniesthatoperatewithinjustoneortwoofthosemarkets.Thisreduc-estheimpactofcyclicaleffectsontheGroup.Examplesare:• TheGermanmarketversustheDutchmarket• Theglobaloilandgasindustryversusthestaff-ingsectorsintheNetherlandsandGermany

• ThevariousbusinesslineswithinwhichBrunelInternationaloperatesontheDutchmarket.

Marketrisksalsoincludeeconomic,politicalandsocialrisks.BrunelInternationalfocusespredomi-nantlyoncountriesinororientedtowardstheWesternpartoftheworld,wheretheserisksareacceptable.

Internal risk management and control systemsTheBoardofDirectorsofBrunelInternationalNVisresponsibleforinternalriskmanagementandinter-nalcontrolsystems.ThepurposeofthosesystemsistoensureoptimummanagementofthemostsignificantrisksthathavebeenidentifiedwithintheGroup.Evenso,thesesystemsarenotdesignedtoguaranteefullprotectionagainstmaterialerrorsandviolationsoflawsandregulations.BrunelInternational’sinternalriskmanagementandcontrolmeasuresarebasedontheCOSOframeworkanddistinguishfivecomponents:

1.CoNtrolFraMework

TheBoardofDirectorsisresponsibleforthecoherencebetweenthevariousinternalcontrolelements.Factorsthatinfluencethecontrolframeworkincludeintegrity,managementstyle,delegationofpowersandresponsibilities,generallyacceptedbusinessstandardsandvalues,andtheextenttowhichtheorganisationisabletosteerthesefactors.

PeriodicallytheCEOvisits,togetherwithaseniorofficerfromCorporateFinanceandControl,themostimportantoperatingcompaniestofacilitatecomplexdecision-making,tocontrolfinancialprogressandmonitorrealisationofthebusinessobjectives.

Anotherimportantaspectofthecontrolframe-workisthecodeofconduct,whichincludestheWhistleblowerScheme.ThecodehasbeenpostedontheBrunelInternationalNVwebsite.

2.riSkaNalySiS

TherisksBrunelInternationalanditsoperatingcompaniesareconfrontedwith,areidentifiedandassessedpersegment,andthencomparedandassessedatacorporatelevel.

16 AnnualReport2007

Risk,RiskManagementandControlSystems

3.iNterNalCoNtrolMeaSureS

Alldivisionsaresubjecttogeneralpolicyrulesandproceduresaimedatcontrollingrisksthathavebeenidentified.Themostimportantpoliciesandproceduresare:• Anannualbudgetingcyclewhichincludesfinancialandnon-financialinformation,followedbyquarterlyevaluationsofthetargets(forecasts).

• Amonthlyfinancialreportingcyclewhich,again,includesfinancialandnon-financialinformation.Thereportsareanalysedandcomparedwithpreviouslyadoptedbudgetsandreports.Theresultsarediscussedwithlocalmanagement.

• AnAccountingManualthatincludesvaluationprinciples,definitions,explanationsofthevariousreports,internalprocedures,acodeofconductandanethicscode.

• AnInsurancePortfolioincludinginsurancepoliciesinthefieldsofemploymentrelation-ships,liabilitiesandbusinesscontinuity.

• AnInternalLetterofRepresentation,inwhichthegeneralandfinancialmanagersoftheoperatingcompaniesconfirmtheaccuracyandcomplete-nessofthesubmittedfinancialreportsandtheproperuseoftheBrunelFinancialManual.

• PeriodicfieldvisitsbymembersoftheCorporateFinanceandControldepartment,toreviewtheinternalfinancialreportsaswellastoassessthelocaladministrativeorganizationandmeasuresofinternalcontrol.

• AsregardstoTreasury,dualauthorisationisrequiredandexternalfinancingarrangementsarenotpermitted.

• CommercialtransactionswiththirdpartiesworthmorethanUSD1millionrequiretheBoardofDirectors’priorapproval.ThisalsoappliestoinvestmentsinexcessofUSD25,000.

Inordertofurtherenhanceinternalriskmanage-mentandcontrolsystems,financialmanagementandworkforceoftheBrunelgroupwillbestrength-enedandstepswillbetakentofurtherimplementandformaliseinternalcontrolin2008.Oneoftheprioritiesfor2008istorationaliseandsimplifythelegalstructure.

4.iNForMatioNaNdCoMMuNiCatioN

Theinformationandcommunicationpolicyforinternalriskmanagementandcontrolsystemsisaimedatacceptanceandimplementationatallorganisationallevels.Thishasresultedinagener-allyacceptedcodeofconduct,internaltrainingcoursesfornewemployeesandtraining-on-the-jobprogrammes.Inaddition,varioustypesofbusinessdeliberationconducted.

Atleastonceayear,BrunelInternationalholdsaninternationalmeetingwhichisattendedbyallcontrollerstodiscussthelatestdevelopmentsinfinancialmanagementandinternalcontrols,subsequentlydocumenttheseandimplementthemcompany-wide.

5.MoNitoriNg

Monitoringtheadequacyandeffectivenessofinternalriskmanagementandcontrolsystemsisanon-goingimprovementprocess.MonitoringactivitiesarearrangedinperiodicconsultationbetweentheBoardofDirectorsandlocalmanag-ers,andthroughfrequentcontactbetweenCorporateFinance&Controlandlocalfinancialmanagement.Thesediscussionsarepartlybasedupontheissuedmonthlyfinancialreports.

AnnualReport2007 17

Risk,RiskManagementandControlSystems

DespitetheabsenceofaninternalauditoratBrunelInternational,reviewsaremadebothatHoldinglevelbyCorporateFinance&Controlandatsegmentlevelbyregionalcontrollers.CorporateFinance&ControlisanindependentdepartmentthatreportsdirectlytotheBoardofDirectorsandtheAuditCommittee.Inaddition,itadviseslocalmanagementinconnectionwithpossibleimprovementsininternalriskmanage-mentandcontrolsystems.

Theexternalauditorisresponsibleforauditingtheannualfinancialstatements.TheauditorreportshisfindingsintheformofmanagementlettersattheleveloftheGrouporindividualoperatingcompanies.Inaddition,hereportsdirectlytotheAuditCommittee.TheexternalauditorattendsthemeetingsoftheSupervisoryBoardatwhichtheannualaccountsareadopted.Theauditoralsoattends–andisauthorisedtoaddress–theGeneralMeetingofShareholders.

ConclusionTheBoardofDirectorsisresponsibleforthequalityandcompletenessofallfinancialstatementspublishedbythecompany.TheSupervisoryBoardoverseesthewayinwhichtheBoardofDirectorsexercisesthatresponsibility.Takingtheaforedescribedrisksandcontrolsystemsintoconsideration,accordingtotheBoardofDirectorstheinternalriskmanagementandcontrolsystemsprovidereasonableassurancethatthefinancialreportdoesnotcontainmaterialmisstatements.TheBoardofDirectorsofBrunelInternationalNVisnotawareofanysignsthat,inageneralsense,theriskmanagementandcontrolsystemsweremate-riallyineffectiveduringtheyearunderreview,norofanysignsthatthesemeasurescanbeexpectedtobeineffectivein2008.

18 AnnualReport2007

Thedevelopmentoftheworldeconomycannotbeseeninisolationfromtrendsinthenationalandinternationallabourmarkets.Theavailabilityofasufficientsupplyofadequatelytrainedworkersisabsolutelyessentialtotheeconomicdevelopmentofanycountryorregion.Structuralstaffshortagesinaninflexiblelabourmarketwillimpedethedevelopmentofeconomiesand,assuch,willcauselastingdamagetothecompetitivepositionofcompanies,regionsandcountriesinaninternation-alcontext.

Brunelrecognisesthefactthatthedynamicsoftheworldeconomycallforaflexibleorganisationofthelabourfactor.Weaimtopromotesuchflexibil-itybydevelopinginnovativeservicesintheareasofprofessionalstaffingandprojectmanagement.

BrunelInternational’smissionistogainaleadingroleinspecificsegmentsoftheinternationallabourmarket.Asanauthorityinthefieldofnationalandinternationalrecruitment,Brunelisabletoidentifydevelopmentsandhelpbusinessestoswiftlyparticipateinthem.Brunelembracestheconceptofincreasedflexibility,innovationandlong-termsolutions,andinthiswayadoptsanadvisoryandoperationalroleinensuringthecontinuityofitsclients,insofarasthatcontinuityisrelatedtothedeploymentofspecialistknow-how.

developMeNtSoNtheiNterNatioNallaBourMarket

Manyindustrialisedcountriesareexperiencinggrowingshortagesofqualifiedworkers,andaparticulardearthofhighlyeducatedtechnicalspecialists.Theeconomicupswinghasaggravatedthisproblem,andtraditionallabourmarketmecha-nismsnolongersufficetorestorethemarketbalance.Theshortageofhighlytrainedengineersis

acaseinpoint:thecurrentpopulationisinsufficienttomeetfuturedemand,andtheaverageageofengineersisrising.Thelocalinfluxofgraduatedtechniciansistoosmalltocompensatefortheage-relatedoutflow.

Atboththeinternationalandnationallevels,increasedflexibilityoflabourwillbecomeanimportantphenomenon.Businesseswillmakethestrategicchoicetosurroundanucleusofperma-nentstaffwithaflexiblering,allowingthemtorespondfasterandmoreefficientlytoeconomicdevelopmentsandotherchangesinmarketcondi-tions.Theworldwideflexibilitytrendwillgeneratenewconceptsinwhichtraditionalassignmentmethodswilltendtobecombinedwith,orreplacedbynoveltypesofprojectmanagementandflexibleprojectteams.

Becauseofthegeneralscarcityonthelabourmarket,recruitingtherightstaffwillbecomeaspecialisedjob.Brunelwillbeamongthepartiesthatareexpectedtogiveshapetothis.However,thedemandsmadeinthisrespectwillchange.Thetraditional‘invoicingbythehour’will,inmanyinstances,makewayformoreinnovativeandcomprehensiveflexiblesolutions.

Thelabourmarketwillbecomemoreinternational.Labourshortageswillmeanthatspecialistswillincreasinglyworkacrossnationalborders.Inglobalindustries,suchastheoilandgasindustry,itisalreadycommonpracticetoshiftknow-howandcapacity.However,manynationaleconomiesarestillclosed.Here,too,globalisationofthelabourmarketwillprovetobeoneofthesolutionsforbalancingsupplyanddemand.

Educationandtrainingwillbecomemoreimpor-tantthanever.Thetimeittakesforknow-howtobecomeobsoletewillshorten,particularlyin

8 BrunelInternational’svision,objectivesandstrategy

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BrunelInternational’svision,objectivesandstrategy

segmentssuchasICT,wheredevelopmentsaresofastthatknowledgeacquiredtodayisoutofdatetomorrow.Inaddition,theanticipatedshortagesinspecificsegmentsofthelabourmarketwillresultinrenewedpopularityofretrainingandadditionalschooling.

CorporateoBJeCtiveS

BrunelInternationalstrivestoachievebalancedgrowthinturnoverandprofitsinallregionsinwhichitoperates.Brunel’sturnoverincreasedsubstantiallyoverthepastfiveyears.Forthecomingyears,too,theorgani-sationassumesthatgrowthisachievable.Fortheyear2008specificallytheBrunelInternationalBoardofDirectorsexpectssignificantgrowthinturnoverfiguresforallmainregions.EBIThasalsodevelopedveryfavourably.TheEBITmarginincreasedfrom7.1%in2006to8.8%in2007.For2008theBrunelmanagementexpectsafurthersignificantincreaseinEBITcomparedto2007.

Generaleconomicprospectscompelustoexerciseacertainvigilance.BrunelInternational’sboardwillmonitordevelopmentscloselyandanticipatebreaksintrendsthatcouldaffectthecompany.

Expectationsattheregionallevelsaredescribedinmoredetailinthe‘Outlook‘sectionsofthe‘ReportoftheBoardofDirectors’inthisreport.

Strategy

Brunel’sstrategyisbasedonprovidingsuperiorservicestoitsclientsandemployees.Obviously,oursuccessdependsonthedegreetowhichwearecapableofconductingourcorebusiness:finding,selectingandsupervisingtherightspecialistsfor

ourclients.Inthiscontextthequalityofouraccountandrecruitmentmanagementisacrucialfactor.Aspectssuchasindustry-specificknowledge,proactiveinterestintheclient’sbusinessandtrans-parentcommunicationaboutcurrentprojectsareultimatelythebuildingblocksforlong-termrelationshipswithclientsaswellaswiththeBrunelspecialists.Accountmanagementandrecruitmentmanagementarepivotalelementsintheprocess.Theyhelpusmapouttheclient’sandcandidate’sdemandsandgiveshapetothesolutionsintheinterestofboth.

Toalargedegree,Brunelwillstandoutfromtheotherbusinessesinitssectorthankstothesupe-riorqualityofitsservices.

Thestrategyoutlinedaboveconsistsofthefollow-ingsub-strategies:

Highly specialised servicesBrunelhasoptedforaspecialisedapproachtothemarket.Selectingspecificsegments,regionsordisciplinesallowsustogainathoroughunder-standingofthelabourmarket.Inadditiontofocusingonspecificoccupationalgroups(engineers,lawyers,andspecialistsinthefieldsofICT,FinanceandInsurance&Banking)andspecificcountries(theNetherlands,Germany,BelgiumandCanada),BrunelconcentratesoninternationalsegmentssuchasOil&Gas,Auto-motive,Rail&Aerospace,andtheTelecomsector.

Intensive marketing in the specialists’ poolInatightlabourmarket,havingaccesstotherightspecialistsisadecisivefactor.Brunelhaslargedatabasesatitsdisposalforeachregionorsub-segment,providingareservoirofavailablespecialists.Thedatabasesarecontinuallyexpanded,throughregularcommunicationsandtheutilisationofabroadsetofsearchtoolstoacquirenewspecialists.

20 AnnualReport2007

BrunelInternational’svision,objectivesandstrategy

Excellence in processesSpeed,anabsenceoferrors,andtransparencyarethebasicfeaturesofourprocessesthatenableustoprovidehigh-qualityservicestoclientsandemployeesalike.Inthepastfewyears,Brunelhasconsciouslyinvestedinstate-of-the-artcomputeri-sationsolutionsinallregions,whichhaveprovidedanimportantimpulsetotheongoingimprove-mentintheefficiencyandeffectivenessofourmarketingeffortsandadministrativeprocesses.

Global distributionAlocalpresence,closetoourclients,isavitalconditionforsuccess.Onlythencanwegainthespecificunderstandingofthelabourmarketandmaintainintensivecontactswithclientsandthespecialists’market.

Brunelhasaworldwidenetworkof90ownofficesin25countries.Theextensivecoverageofourofficenetworkallowsustoserveinternationalclientsbasedonworldwideagreementsthatarethenimplementedonalocallevel.

orgaNiSatioNaNdhuMaNreSourCeS

Brunel International management modelBrunelInternationalhasthreecoreregions:BrunelNetherlands,BrunelGermanyandBrunelEnergy(agloballyoperatingnetworkofspecialisedoffices).BrunelalsooperatesinBelgiumandCanada,albeitonasmallerscale.Eachregioniscontrolledbyitslocalmanagementteamwhich,withinthelimitsofBrunelInternation-al’smissionandstrategy,isdirectlyresponsibleformarketingmethodsandday-to-daybusinessaffairs.

PeriodreportsaresubmittedtotheCEOofBrunelInternationalandtoCorporateFinance&Control.

Besidesreviewingtheperiodicreports,theCEOandtheCorporateFinance&Controlmanagervisittheprincipallocationsseveraltimeseachyear,toconductprogressmeetingswiththeboardandmanagement.

FurtherdetailsabouttheBrunelInternationalmanagementmodelcanbefoundintheRiskMan-agementchapterelsewhereinthisannualreport.

Human ResourcesBrunel’scorecompetencyismediatingforhighlyeducatedprofessionals.Intimesofscarcityonthelabourmarket,findingandbindingprofessionalsisaspecialisedactivitywhosesuccessdependslargelyonthecompetitiveedgeofthemarketproposition.Specialistsareindemandandcanchoosefromawiderangeofalternatives.Theirchoiceswilldependgreatlyontheaddedvaluethatthevariouspartiescanofferthem.Thisaddedvaluetranslatesasemploymentconditions,careercounselling,oppor-tunitiesforpersonaldevelopmentandforincreasingknow-how,coachingfacilitiesand,obviously,theappealoftheprojectsandclientstowhichthespecialistswillbeassigned.

Brunel’sHumanResourcespolicyisgearedspecifi-callytothesethemes.Theemploymentconditionspackagesareatleastonaparwiththemarketineveryregion,andcentrearoundindividualoptions.Possiblecareermovesaremappedoutonanindividualbasis.Asarule,Brunelspecialistsareemployedforalimitednumberofyears.Bydefini-tion,thewidevarietythatBrunelcanofferintermsofclientsandprojectsincreasesthemobilityoftheemployeesconcerned,andvastlyincreasestheircareeroptionsoncetheyleaveBrunel.

SupervisionandcoachingofstaffisensuredbyBrunel’sprimaryprocess,inwhichtheaccountmanagersandrecruiters,assistedbyHRM,

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BrunelInternational’svision,objectivesandstrategy

regularlydiscusstheprogressofcurrentprojectswithboththeclientandthespecialistinquestion.

Ourlong-standingcooperationwithprominentfirmsinthevarioussegmentsguaranteesaselectionofdiverseandchallengingprojects.Thegrowthofourworldwidenetworkprovidesmoreandmoreopportunitiesforemployeestooptforaninternationalcareer.Inrecentyears,employeeshaveregularlytransferredbetweenthevariousregions.Weactivelyencouragetalentexchange.

TrainingBrunel’sstrategyisaimedatprovidingsuperiorservicestoitsclients.Thequalityoftheservicesdependsprimarilyonthequalityofouraccountmanagementandrecruitmentmanagementefforts,andontheavailabilityofspecialistswithup-to-dateknow-howandskills.

Inlinewiththisstrategy,Bruneldevotesagreatdealofefforttotrainingbothindirectemployees(centralstaff)anddirectemployees(feeearners).IndirectemployeesjoiningBrunelareenrolledinanextensiveintroductionprogrammewhichisorganisedseveraltimesayear.Participantsaretrainedinvariousmodulesinthefieldsoflegisla-tion,interviewingandsalestechniques,accountmanagementandrecruitmentskills.

Inaddition,dedicatedprogrammesareorganisedtoprovideexperiencedaccountandrecruitmentmanagers.Finally,BruneloffersaninternationalManagementDevelopmentProgramme.Thisprogrammeenablessuccessfulandtalentedsalesstafftoachievehigherpositions,andservesasagatewayforthemtoreachinternationalmanage-mentpositions.

FordirectemployeeswedrawupPersonalDevelop-mentPlansandreviewtheseannually.Theelementoftrainingplaysanimportantpartintheseplans.Anygapsintheemployee’sknow-howandskillsarefilledthroughgenerictrainingor,dependingonthesituation,throughpersonalimprovementschedules.AlltrainingprogrammesarearrangedbytheBrunelAcademy.Someoftheprogrammesareprovidedin-house,butinmostcaseswecooperatewithreputableexternalinstitutestoensurethattheeducationaltermsareformalisedinaprofes-sionalmanner.

22 AnnualReport2007

GEnERAl REPORT

BruNeliNterNatioNal

2007: significant growth in turnover, 45% increase in operating resultIntheyearunderreview,BrunelInternationalbrokeallitspreviousgrowthrecords,bothintermsofturnoverandearningsperformance.Thegraphbelowmakesclearthatthe2007turnoverofEUR580millionisalmosttriplethecorrespondingamountfor2002,theyearinwhichBrunelembarkeduponitsseriesofsuccesses.

Brunel’soperatingresulthasalsoshownastrongupwardstrendsince2002.In2007,EBITmadeupalmost9%ofthecompany’stotalturnover.

Brunel International

9 ReportoftheBoardofDirectors

2007 2006 %Netturnover 579,889 499,070 16%Grossprofit 136,306 115,275 18%Gross margin 23.5% 23.1%Operatingprofit(EBIT) 51,247 35,276 45%EBIT percentage 8.8% 7.1%

Netprofit 36,133 26,274 37.5%Totalaverageworkforce 7,248 6,148 18%

AnnualReport2007 23

ReportoftheBoardofDirectors

net TurnoverBrunelInternational’stotalgrowthinturnoveramountedto16%:fromEUR499millionin2006toEUR580millionin2007.

Allcorebusinessunitscontributedtothegrowthachieved.Inrelativeterms,BrunelGermany’sincreaseinturnoverwasthelargest,risingtoEUR129million(up24%).BrunelNetherlandsachieved18%growth,whichmeantaturnoverofEUR138million,whileBrunelEnergyachievedanincreaseof13%,toEUR287million.

Intermsofturnover,BrunelEnergy’ssharein2007wasthelargest(50%ofthegroup’stotalturnover),followedbyBrunelNetherlands(24%)andBrunelGermany(22%).

Gross Profit and Gross MarginIn2007BrunelInternational’sgrossprofitincreasedby18%relativeto2006.AtotalgrossprofitofEUR136millionwasachievedintheyearunderreview.

Thegrossmarginimprovedfrom23.1%in2006to23.5%in2007.

BrunelInternational’sthreelargestbusinessunitsadheretodifferentdynamics.Thesecanbeexplainedbythedifferenteconomiccyclesofeachmarketaswellasthestageofdevelopmentofthebusinessunits,regionsandsegmentsinwhichthebusinessunitsoperate.

BrunelNetherlandsandBrunelGermanyachievedgrossmarginsof40.2%and32.3%,respectively,whileBrunelEnergyrecordedagrossmarginof10.9%.

IntermsoftheshareofBrunelInternational’stotalgrossprofit,BrunelNetherlandstookfirstplacewith41%,followedbyBrunelGermany(31%)andBrunelEnergy(23%).Theother5%wascontributed

bythesmallerBrunelBelgiumandBrunelCanadabusinessunits.

OverheadBrunelInternational’soverheadcostsincreasedby6%.Thisrelativelysmallincreasemeantasignificantimprovementinthecost/revenueratio.Thiskeyindicatorimprovedfrom16.0%in2006to14.7%in2007.

Operating ProfitThesignificantincreasesinturnoverandgrossprofitincombinationwiththerelativelymoderateincreaseinoverheadcostsresultedinanincreaseinoperatingprofitof45%,fromEUR35.3millionin2006toEUR51.2millionin2007.Operatingprofitasapercentageofturnoverincreasedfrom7.1%in2006to8.8%in2007.

Balance sheet 2007 BrunelInternational’ssolvencyrateimprovedfrom63.6%in2006to68.5%in2007.

Totalcapitalisedgoodwillin2007wasEUR4million,orlessthan3%ofshareholders’equity.

AccountsreceivableamountedtoEUR111.7millionasat31December2007(2006:EUR105.4million).

Atthecloseof2007,BrunelInternational’scashpositionwasEUR39.7million(2006:EUR25.1million).

Theabovefiguresconstituteoutlines.Thevariousbalancesheetitemsarespecifiedinmoredetailinthefinancialstatementsincludedinthisreport.

24 AnnualReport2007

ReportoftheBoardofDirectors

WorkforceTheaveragenumberoffeeearnersover2007increasedby19%,considerablymorethantheincreaseinthenumberofindirectemployees(up14%),asaresultofwhichleverageimprovedstrongly.Thistrendwasvisibleacrossthewholerangeofactivities.

Anotherimportantindicatorofthecompany’sgrowthwastheamountofgrossprofitperindirectemployee,whichincreasedfromEUR153,300in2006toEUR159,400in2007.

Average work force 2007 2006 %Directemployees 6,393 5,396 19%Indirectemployees 855 752 14%Totalworkforce 7,248 6,148 18% Averagegrossprofitper €159,400 €153,300 4%indirectemployeeDirect/indirectratio 7.4 7.2 4%

AnnualReport2007 25

ReportoftheBoardofDirectors

BrunelNetherlandsexperiencedaverygoodyearin2007.Turnoverincreasedby18%toEUR138millionwhilegrossprofitincreasedby22%toEUR55mil-lion.Thisresultedinanincreaseingrossprofitfrom38.7%in2006to40.2%in2007.

ThestrongincreaseingrossprofitresultedinanEBITofEUR27.6million,65%morethanin2006.TheEBITpercentageincreasedfrom14.3%to20.0%.

BrunelNetherlands’goodperformancecanalsobeseeninthedevelopmentofemployeenumbers.Thenumberoffeeearnersgrewby18%to1,610,whiletheincreaseinthenumberofindirectemployeeswaslimitedto13%to277.

BrunelNetherlands’positiveperformanceappliestoallactivities;BrunelEngineering,ICTandInsurance&Bankingwerethekeycontributorstogrowthinturnover.

BrunelNetherlandshasastrongpositionintheDutchstaffingmarketasanintermediaryforhighlyqualifiedspecialists.Bruneliscapableofmakinganimportantcontributiontoitsclient’sbusinesspro-cesses.Brunel’sservicesenableorganisationstobemoreflexibletoadapttocontinuouschangesintheirbusinessenvironments.EquallyimportantistheroleBrunelcanplayinthecareersofyoung,highlyqualifiedprofessionalsbyofferingthemvariedandchallengingworkintheirrespectiveareasofexpertise.

Brunel netherlands in 2007 2007 2006 %Netturnover 138,101 117,465 18%Grossprofit 55,453 45,494 22%Gross margin 40.2% 38.7%Operatingresult(EBIT) 27,624 16,779 65%EBIT percentage 20.0% 14.3% Totalaveragedirectworkforce 1,610 1,359 18%Totalaverageindirectworkforce 277 246 13%

BruNelNetherlaNdS

ProfessionalstaffingintheNetherlandsisamaturemarketthatcomprisesvarioussegments.BrunelNetherlandsoperatesinfivespecialisedareasandtargetsthesethroughseparate(sales)organisations,so-calledbusinesslines.InorderofturnoversizetheseareBrunelEngineering,BrunelICT,BrunelInsurance&Banking,BrunelLegalandBrunelFinance.

Eachbusinesslinehasitsownmanagementwithregardtoclientserviceandrecruitment.Forefficiencyreasons,DutchbackofficefunctionsarecentralisedinAmsterdam.ThebusinesslinesareoperatedfromninesalesofficesacrossTheNetherlands.Allbusinesslinesaimtoattracthighlyeducatedcandidatestoprovideclientswithhigh-qualitystaffing,recruitment&selectionandprojectmanagementservices.

26 AnnualReport2007

ReportoftheBoardofDirectors

Findingandselectingtherightstaffisaspecialisa-tion.Ontheonehand,itrequiresathoroughknowl-edgeofthecandidatemarketand,ontheother,anin-depthunderstandingoftheclient’sorganisationandthespecificpositionsthatmustbefilled.InrecentyearsBrunelhasinvestedsubstantiallyinthequalityofitsownorganisation,particularlywithregardtotheknowledgeandskillsofrecruitersandaccountmanagers.TheserolesaredecisiveforthedegreetowhichBruneliscapableofmeeting,atanygiventime,therequirementsandwishesofitsownemployeesaswellasclientneeds.Inaddition,alotofefforthasbeendevotedtotheefficientset-upofthebackofficethatsupportsthecommercialorganisationonadailybasis.

Asinpreviousyears,BrunelNetherlandsincreaseditsmarketshare.Brunel’sboardseesthisasvalida-tionthattheinvestmentshavebeeneffective.Theoperationalfocusonstrengtheningemployeerecruitmentandcommercialmanagementwillbecontinued.Satisfactiononthepartofemployeesandclientsmirrorsthequalityoftheaccountandrecruitmentorganisation,anditisthissatisfactionthatremainsthefoundationofoursuccess.

BrunelEngineering,BrunelNetherlands’largestbusinessunit,isleadingsupplierofhighlyeducat-edandexperiencedprofessionalsfortheDutchengineeringsector.TheavailabilityofasufficientnumberofengineersisastructuralproblemintheDutchmarket.Formanyyears,thenumberofindividualsgraduatingfromuniversitiesanduniversitiesofprofessionaleducationhasbeeninsufficienttomeetfuturedemand.BrunelEngi-neeringhasanextensivedatabaseofcandidatesandacomprehensivearsenalofrecruitmentinstru-mentstocompensatefortheimbalanceinthelabourmarket.

BrunelICTfurtherdevelopedin2007intoastrongbusinessline.DemandforICTspecialistsishigh.BrunelICTdevotesconsiderableefforttothetrainingandeducationofitsemployeesinordertocontinuetobeabletomeetclient’sneeds.

BrunelInsurance&BankingisBrunelNetherlands’realisedstronggrowthintheyearunderreview,havingnowbecomeapreferredsupplierofmanylargebanks,insurers,brokeragefirmsandotherfinancialinstitutions.Thefinancialsectorwillstillhavetodealwithmajordevelopmentsinthecomingyearsrelatingtolegislationandthetransparencyofserviceprovision.Demandfor(temporary)specialisedprofessionalslookssettokeepongrowing.

BrunelLegalactsasanintermediaryforlawyerstostafflawfirms,companiesandgovernmentbodies,andhasastrongpositioninthisrelativelysmallmarket.Theincreasing‘juridification’ofsocietyisanimportanttrendinthissector.

BrunelFinanceisdevelopingsteadily.DemandforfinancialspecialistswillcontinuetogrowinthecomingyearsandtheexpectationisthatBrunelFinancewillbeabletobenefitoptimallyfromthistrend.

OutlookAtthebeginningof2007BrunelNetherlandsclaimedthatfurthergrowthinthevarioussegmentsoftheDutchmarketwouldbepossible.The18%growthachievedunderlinestheaccuracyofthisclaim.

Brunel’sboardseesfurtheropportunitiesforgrowthin2008.Withinthepresentphase,therearenoindicationsthatdemandforhighlyqualifiedspecialistswillrecede,theavailabilityofsuitablecandidatesbeingakeypointinthisregard.Theboardviewsthisdevelopmentasanopportunityratherthanasathreat.

AnnualReport2007 27

ReportoftheBoardofDirectors

In2007BrunelGermanyachievedagrowthinturnoverof24%,resultinginturnoverofEUR129million.Grossprofitincreasedinthesameperiodby22%toEUR42million.Relativeto2006,thegrossmarginfellslightlyfrom33.1%to32.3%.Overheadcostsincreasedintheyearunderreviewby24%.

BrunelGermany’sEBITimproved15%toEUR11.5million.Sinceoverheadcostsincreasedmoresharplythanthegrossprofit,theEBITasapercent-ageofturnoverdevelopedfrom9.6%in2006to8.9%in2007.

BrunelGermany’saveragenumberoffeeearnersgrewby22%to1,529.Thenumberofindirectemployeesincreasedby25%to243.

TheperformanceofBrunelGermanyintermsofturnoverandEBIThasbeensatisfying.EBIThow-everwaseffectedbyarestructuringwhichwasexecutedsuccessfullyin2007.EBITpercentageof6.9%forthefirsthalfof2007improvedsubstan-tiallyto10.6%forthesecondhalfoftheyear.

BrunelGermanyoperatesinthetopendoftheGermanmarket,whichconsiderablyenhancesitsappealtospecialistsandclientsalike.BrunelGermanyhassetupengineeringcompaniesbasedonitsmarketspecialisationsthatbringknowledge,experienceandreferencestogether.Thisknowl-edge-basedstructureisofhighstrategicimpor-tance,asitemphasisesthecompany’spositioninthetopendofthemarket,furthercontributesto

Brunel Germany in 2007 2007 2006 %Netturnover 129,334 103,961 24%Grossprofit 41,832 34,365 22%Gross margin 32.3% 33.1%Operatingresult(EBIT) 11,478 9,947 15%EBIT percentage 8.9% 9.6% Totalaveragedirectworkforce 1,529 1,256 22%Totalaverageindirectworkforce 243 195 25%

BruNelgerMaNy

BrunelGermanymeetsthegrowingneedsofitsclientsforhighlyqualifiedengineers,techniciansandICTspecialists.Brunel’sspecialistsusuallycarryouttheiractivitiesonatemporarybasis.Inadditiontotraditionaltemporarystaffing,BrunelGermanyprovidesconsultancy,projectmanagementandinterimservices,andoperatesintheautomotive,ICT,aerospace,mechanicalandplantengineering,railsystemsandshipbuildingsegments.

BrunelGermany’sheadquartersareinBremen.Thecompanyhas34branchofficesfromwhichservicesareprovidedtothevariouscandidatesandclientmarkets.

28 AnnualReport2007

Brunel’sattractivenessasanemployeranddistin-guishesthecompanyinaveryrelevantwayfromthecompetition.

BrunelGermanyoffersalayeredprovisionofspecialistservices.Thetraditionaltemporarydeploymentofengineersconstitutesthemainactivityintermsofthevolumeofservicesprovided.Theservicespackageiscomplementedbyconsul-tancyandinterimactivitiesandprojectmanage-mentknow-how.ThisstructureenablesBrunelGermanytoprovideadviceandsupporttoitsclientsacrossabroadspectrumofspecialisations.

TheGermanmarketfortechnicalprojectmanage-mentandtemporarystaffingisgrowingstronglyfromyeartoyearasGermanyisfastcatchingupwiththerestofEuropeasregardsmakingitslabourmarketmoreflexible.ThisfactorconstitutesanadditionalbasisforBrunelGermany’sfurtherdevelopment.

Withitsuniqueprofileandlargecapacityforgrowth,BrunelGermanyiseminentlyequippedtoexpanditsmarketshareinGermanyintheyearstocome.

OutlookAtthebeginningoftheyearunderreview,BrunelGermany’sboardpredictedthatitwouldachievefurthergrowthinturnoverandprofit.Turnovergrowthof24%anda15%increaseintheoperatingresultmeanthestartingassumptionswererealistic.

TheboardexpectsfurthergrowthoftheGermanstaffingmarketin2008.BrunelGermanyiswellequippedtotakeoptimaladvantageofthisfavour-ablesituation.Thereorganisationcarriedoutintheyearunderreviewwillleadtoafurtherimprove-mentintheEBITpercentagein2008.

ReportoftheBoardofDirectors

AnnualReport2007 29

Brunel Energy in 2007BrunelEnergyachievedaturnoverofEUR287million–a13%increasecomparedto2006.Grossprofitgrewby9.0%toEUR31millionwhilethegrossmarginfellslightlyfrom11.3%in2006to10.9%in2007.Overheadcostsincreasedby5%toEUR19.7millionin2007.One-offcostsofareorganizationalnatureareincludedinthe2007amount.EBITincreasedby16%toEUR11.7million.TheEBITmarginincreasedfrom4.0%in2006to4.1%in2007.

Theaveragenumberoffeeearnersincreasedby17%to2,934.Thenumberofindirectemployeesincreasedby10%to252.Intheglobaloilandgasindustry,BrunelEnergyisaleadingsupplierofengineers,technicalspecialists

andprojectmanagers.Thecompany’sglobalnet-workofofficesisunique.BrunelEnergyhasdevel-opedintoatrulyglobalplayerandapartnerforvirtuallyalloilandgasmajorsandrelatedindustriesonallthefivecontinentswhereBruneloperates.

Theavailabilityofengineersandtechnicalspecial-istshasbeenunderpressureformanyyears.Giventheexpansionofactivityintheoilandgasindustry,dueinparttohighoilprices,thistensionismorelikelytoincreaseratherthandecrease.Brunelhasanextensive,internationaldatabaseofcandidates.Thismakesitpossibleforthecompanytoresolvecapacityshortagesanywhereintheworld.Bydefinition,thelabourmarketfortheoilandgassectorhasastronginternational

ReportoftheBoardofDirectors

2007 2006 %Netturnover 287.322 255,251 13%Grossprofit 31,419 28,816 9%Gross margin 10.9% 11.3%Operatingresult(EBIT) 11,711 10,080 16%EBIT percentage 4.1% 4.0%

Totalaveragedirectworkforce 2,934 2,511 17%Totalaverageindirectworkforce 252 230 10%

BruNeleNergy

BrunelEnergyprovideshigh-qualitystaffingservicestotheglobaloilandgasindustryanditsassociatedupstreamanddownstreamsectors.Inaddition,thecompanyprovidesprojectmanagementandconsultancyservices.Brunel’scorebusinessistheprovisionofwhite-collarspecialists.Withregardtotheoilandgasindustry,however,projectstaffingwith(semi-)blue-collarworkersisacomplementaryactivitythatBruneldevelopedinordertobeabletoprovidetotalsolutionstoourclients.

BrunelEnergyoperatesfromofficesthroughout25countries.MainofficesarelocatedinBangkok,Glasgow,Houston,KualaLumpur,London,Moscow,Paris,Perth,Rotterdam,SingaporeandUnitedArabicEmirates.

30 AnnualReport2007

dimension,andeachworkinglocationissubjecttoitsownemploymentlegislation.Throughouttheyears,Brunelhasacquiredextensiveexperiencewithregardtothepayrollingofexpatriates.Thecompany’spresenceandknowledgeinthisareaaddsuniquevaluetoitsclients.

OutlookAtthebeginningoftheyearunderreviewBrunelEnergy’sboardpredictedfurthergrowthforthecompany’sturnoverandoperatingresult.Theboardalsostatedthatgrossmarginwouldfluctu-atebetween11%and12%overthelongterm.TheanticipatedfluctuationwithrespecttotheEBITmarginwasbetween5%and6%.Duetorestruc-turingthisobjectivehasnotfullybeenmetin2007.Brunel’sboardexpectsfurthergrowthofturnoverin2008.Thelong-termexpectationthatthegrossmarginwillfluctuatebetween11%and12%re-mainsunchanged.AnEBITmarginofbetween5%and6%isexpectedfor2008.

Brunel Staffing in other regionsBrunelNetherlands,GermanyandEnergyareBrunelInternational’slargestbusinessunits.Inaddition,BrunelalsohasbusinessactivitiesinBelgiumandCanada.Forreasonsofefficiency,theoperatingresultsoftheserelativelysmallbusinessunitsareconsolidatedinthisannualreport.

BrunelBelgiumspecialisesinprovidingengineersandICTspecialists.ItsheadquartersareinMechelen.

BrunelCanadafocusesonrecruitmentandselec-tionaswellasprovidingtemporarystaffprimarilyfortechnicalindustries,healthcare,financeandIT.ItsheadquartersareinToronto.Inaddition,BrunelCanadahasalimitednumberofsalesofficesspreadacrossthecountry.

BrunelBelgiumandBrunelCanadacontributedtoBrunelInternational’sgoodperformancein2007.OperationsintheirrespectiveregionsachievedajointturnoverofEUR25.1millionandagrossprofitofEUR7.6million.TotalEBITforthetwocompanieswasEUR1.8million(2006:EUR0.7million).

ReportoftheBoardofDirectors

Staffing Other in 2007 2007 2006 %Netturnover 25,132 22,393 12%Grossmargin 7,602 6,600 15%Gross margin percentage 30,2% 29.5%Operatingresult(EBIT) 1,567 681 130%EBIT percentage 6.2% 3.0%

Totalaveragedirectworkforce 320 270 19%Totalaverageindirectworkforce 83 81 2%

AnnualReport2007 31

BrunelBelgiumisarelativelysmallbutdynamiccompanywhoseturnoverhasgrowninrecentyears.Itisfurthermoreasound,effectiveorganisa-tion.ICT-relatedactivitiesofferopportunitiesinavarietyofsectorsforthecomingyears.Engineeringservicesmainlyoperateintheconstructionandpetrochemicalsectors.

BrunelCanadaoperatesinalargemarketinwhichtheprovisionofstaffingservicesisstilldeveloping.Therearecommercialopportunitieswithregardtobothstaffingandrecruitmentandselection.BrunelCanadafocusesontheengineering,healthcareandICTsectors.Theopportunitiesintheengineeringsector(oilandminingindustry)areparticularlypromising.

Theboardexpectsthatin2008bothBrunelBelgiumandBrunelCanadawillmakeacontributiontoBrunelGroup’sgrowthinturnoverandoperatingresult.

Amsterdam, 25 March 2008

TheBoardofDirectors

JanArievanBarneveld,CEO

ReportoftheBoardofDirectors

32 AnnualReport2007

StruCtureaNdShareS

BrunelInternationalisapubliclimitedliabilitycompany.Itsauthorizedcapitalis€5million,dividedinto99.8millionordinarysharesandonepriorityshare.Theparvalueoftheordinarysharesis€0.05each.Theparvalueofthepriorityshareis€10,000.

On31December2007,thenumberofoutstandingshareswas22,742,257.Atotalof83,515optionrightswereexercisedduringtheyearunderreview.Foralltheoptionrightsnewshareswereissued.Theprioritysharehasnotbeenissued.

Share option schemeIn2007,optionrightsweregrantedtothemanag-ingdirector,MrVanBarneveld,undertheArticlesofAssociation.Anoteexplainingthisgrantisinclud-edintheSupervisoryBoard’sremunerationreport,whichisavailableonthecompany’scorporatewebsite.Severalseniormanagementmemberswerealsograntedoptionrights.

InterestsAccordingtotheAFMregisteronnotificationofsubstantialholdings,MrJ.Brand,thecompany’sfounder,directlyorindirectlyholdsacapitalinter-estof63.01%,withcorrespondingvotingrights.AtacertainpointinthereportingyearFidelityInternationalLtdandCapitalGroupInternationalInc.eachheldaninterestinexcessofthe5%limit.On31December2007,however,bothinterestshadbeenreducedtolessthan5%.

DividendAttheGeneralMeetingofShareholderstobeheldon15May2008,theBoardofDirectorswillaskthemeetingtoapproveaproposaltodistributeadivi-dendfor2007of€0.70pershare,payableincash.

Financial Agenda for 200815May GeneralMeetingofShareholders15May Tradingupdateforthefirstquarter of200819May Ex-dividendlisting11June Dividendavailableforpayment29august Publicationofthe2008semi- annualfigures04November Tradingupdatetotheendofthe thirdquarterof2008

10 GeneralShareholderInformation

AnnualReport2007 33

11 AnnualAccounts2007

BruNeliNterNatioNalN.v.

aNNualaCCouNtS2007

34 AnnualReport2007

Consolidatedbalancesheetasper31 December2007

X EUR 000, before profit appropriation

2007 2006non-current assets Goodwill(1) 4,024 4,154Otherintangibleassets(2) 909 ,740Property,plantandequipment(3) 8,457 7,661Financialassets(4) 384 ,593Deferredincometaxassets(11) 3,536 1,939 17,310 15,087

Current assets Tradeandotherreceivables(5) 139,645 137,795Incometaxreceivables 1,253 ,518Cash(6) 39,665 25,091Total current assets 180,563 163,404Currentliabilities(7) 58,751 61,557Incometaxpayables 3,213 2,897Total current liabilities 61,964 64,454Working capital 118,599 98,950

non-current liabilities Deferredincometaxliabilities(11) ,462 ,445 135,447 113,592

Group equity (8) Sharecapital 1,137 1,133Sharepremium 36,595 36,173Reserves 61,025 49,625Unappropriatedresult 36,133 26,274Minorityinterest 557 ,387 135,447 113,592

Balance sheet total 197,873 178,491

AnnualAccounts2007

AnnualReport2007 35

Consolidatedprofitandlossaccount2007

AnnualAccounts2007

X EUR000 2007 2006 net turnover 579,889 499,070Directpersonnelexpenses(9) 443,583 383,795Gross profit 136,306 115,275 Indirectpersonnelexpenses(9) 49,841 44,346Depreciation(10) 3,114 2,981Othergeneralandadministrativeexpenses 32,104 32,672Total operating costs 85,059 79,999 Operating profit 51,247 35,276 Interestincome 43 ,57Financial income and expense ,43 ,57 Result before tax 51,290 35,333 Tax(11) 14,412 11,148Group result after tax 36,878 24,185 Resultparticipations(12) ,34 2,517 net income for the year 36,912 26,702 Netincomefortheyear 36,912 26,702Netincomeattributabletominorityinterest -779 -428net income attributable to equity holders of the parent (ordinary shares) 36,133 26,274 Basic earnings per share in € (13) 1,59 1,16Diluted earnings per share in €(13) 1,58 1,15

36 AnnualReport2007

AnnualAccounts2007

Consolidatedcashflowstatement2007

X EUR 000

2007 2006 Cash flow from operational activities Resultbeforetax 51,290 35,333Adjustmentsfor:Depreciation(10) 3,114 2,981Othernoncashexpenses(4,5) -320 3,025Interestincome -43 -57Sharebasedpayments 723 414Changesin:Receivables(14) -4,791 -31,966Currentliabilities(15) -3,610 8,085Cash flow from operations 46,363 17,815Incometaxespaid(11) -15,989 -12,005 30,374 5,810

Cash flow from investments Additionstoproperty,plantandequipment -4,334 -4,532Disposalsofproperty,plantandequipment 201 356Acquisitions(1) 0 -246Proceedsfromdivestmentofbusiness(16) 143 1,473Financialfixedassets -100 -500Interestincome 43 57 -4,047 -3,392

Cash flow from financial operations Re-issueofpurchasedordinaryshares 0 323Issueofnewshares 426 0Minorityinterest(8) -385 -94Dividend(8) -11,370 -6,795 -11,329 -6,566

net decrease/increase in cash 14,998 -4,148

CashpositionatJanuary1 25,091 28,952Exchangeratefluctuations -424 287Cash position at December 31 39,665 25,091

AnnualReport2007 37

AnnualAccounts2007

Consolidatedstatementofchangesinshareholders’equity

Share Share R e s e r v e s Unappro- Attributa- Minority Total capital premium Share priated bletoordi- interest Translation based Treasury Retained result naryshare- reserve payments shares earnings holdersBalance at 1 January 2006 1,133 36,143 -750 306 -232 44,198 15,885 96,683 64 96,747

Exchangedifferencesarisingontranslationofforeignoperations -3,134 -3,134 -9 -3,143

Net income recognised directly in equity ,0 0 -3,134 0 0 0 0 -3,134 -9 -3,143Transfertoprofitondisposalforeignoperations -557 ,-557 -557Resultfinancialyear 26,274 26,274 428 26,702

Total recognised income and expense for the year 0 0 -3,691 0 0 0 26,274 22,583 419 23,002

Cashdividend -6,795 -6,795 -96 -6,891Approprioationofresult 9,090 -9,090 0 0Sharebasedpayments 414 414 414Optionrightsexercised 232 58 290 290Issueofsharecapital 30 30 30

Balance at 1 January 2007 1,133 36,173 -4,441 720 0 53,346 26,274 113,205 387 113,592

Exchangedifferencesarisingontranslationofforeignoperations -2,604 -2,604 -2,604

Net income recognised directly in equity 0 0 -2,604 0 0 0 0 -2,604 0 -2,604

Resultfinancialyear 36,133 36,133 779 36,912

Total recognised income and expense for the year 0 0 -2,604 0 0 0 36,133 33,529 779 34,308

Cashdividend -11,370 -11,370 -385 -11,755Approprioationofresult 14,904 -14,904 0 0Sharebasedpayments 723 723 723Optionrightsexercised 4 422 426 426Acquisitionminorityinterest -1,623 -1,623 -224 -1,847

Balance at 31 December 2007 1,137 36,595 -7,045 1,443 ,0 66,627 36,133 134,890 557 135,447

38 AnnualReport2007

AnnualAccounts2007

Participations

BrunelInternational’smainparticipationsarelistedbelow.TheseareincludedintheconsolidatedfinancialstatementsofBrunelInternational.Withoutexceptionalltheseparticipationsare,directlyorindirectly,wholly-ownedandBrunelhasfulloroverhalfthevotingpower.Somenon-materialparticipationsarenotincludedinthelist.

BrunelNederlandBV,Rotterdam

BrunelEnergyHoldingBV,Rotterdam

BrunelEnergyEuropeBV,Rotterdam

BrunelICTNV,Mechelen

BrunelEngineeringConsultantsNVC,Mechelen

BrunelInternationalUKLtd,Glasgow

BrunelGmbH,Bremen

CarSynergiesGmbH,Bochum

FalkenburgerundpartnerGmbH,Reutlingen

BrunelEnergyDubaiLLC,Dubai

BrunelOil&GasServicesWLL, Qatar

BrunelInternationalSouthEastAsiaPteLtd,Singapore

BrunelTechnicalServices,PteLtd,Singapore

BrunelEnergyMalaysiaSDNBHD,Kuala Lumpur

BrunelTechnicalServicesThailandLtd,Bangkok

BrunelEnergy(Thailand)Ltd,Bangkok

BrunelEnergyPtyLtd,Perth

BrunelTechnicalServicesPtyLtd,Perth

BrunelEnergyInc.,Houston

BrunelEnergyNigeriaLtd,Lagos

BrunelRecruitmentKazachstanLLP,Atyrau

BrunelEnergyCanadaInc, Calgary

MultecCanadaLtd,Toronto

AnnualReport2007 39

AnnualAccounts2007

Notestotheconsolidatedfinancialstatements

geNeraliNForMatioN

BrunelInternationalN.V.isapubliclimitedliabilitycompanydomiciledinAmsterdam,theNetherlandsandlistedontheEuronextAmsterdam.TheheadofficeofthecompanyislocatedinAmsterdam,theaddressis:Hullenbergweg385-4111101CSAmsterdamTheNetherlands

TheconsolidatedfinancialstatementsofBrunelincludethecompanyanditssubsidiaries(togetherreferredtoas‘Brunel’)andBrunel’sinterestinjointventures.Asummaryofthemainsubsidiariesisincludedonpage38ofthisreport.

ThefinancialstatementsweresignedandauthorizedforissuebytheBoardofDirectorsandreleasedforpublicationon25March2008.ThefinancialstatementsandthedividendproposalaresubjecttoadoptionbytheAnnualGeneralMeet-ingofShareholderson15May2008.

AlltheinformationinthesefinancialstatementsisinthousandsofEuro,unlessstatedotherwise.

Brunel’sactivitiesaremainlytemporarystaffing,projectmanagement,recruitmentandconsultancy.

Statement of complianceThefinancialstatementshavebeenpreparedinaccordancewithInternationalFinancialReportingStandards(IFRS)asadoptedbytheEuropeanUnion.AllstandardsandallinterpretationsissuedbytheInternationalAccountingStandardsBoard(theIASB)andtheInternationalFinancialReportingInterpreta-tionsCommittee(theIFRIC)effectivefor2007havebeenadoptedbytheEU,exceptthattheEUcarvedoutcertainhedgeaccountingprovisionsofIAS39.BruneldoesnotutilizethiscarveoutpermittedbytheEU.Consequently,theaccountingpoliciesappliedbyBrunelalsocomplyfullywithIFRS.

Adoption of new and revised StandardsInthecurrentyear,BrunelhasadoptedallofthenewandrevisedStandardsandInterpretationsissuedbytheIASBandtheIFRICoftheIASBthatarerelevanttoitsoperationsandeffectiveforannualreportingperiodsbeginningon1January2007.For2007itmeansthatBrunelhasadoptedIFRS7FinancialInstruments:Disclosureswhichiseffectiveforannualreportingperiodsbeginningonorafter1January2007,andtheconsequentialamendmentstoIAS1PresentationofFinancialStatements.TheadoptionofthesenewandrevisedStandardsandInterpretationshasnotresultedinchangestotheGroup’saccountingpolicies.StandardsandInterpretationsthatwereissuedbutnotyeteffectivehavenotbeenadopted.HoweverthecompanyanticipatesthatadoptionoftheseStandardsandInterpretationsinfutureperiodswillhavenomaterialfinancialimpactonthefinancialstatementsofBrunelInternationalN.V.

40 AnnualReport2007

AnnualAccounts2007

Principles of consolidationTheconsolidatedannualaccountsincludethefinancialinformationofBrunelInternationalN.V.anditssubsidiaries.SubsidiariesrelatetocompaniescontrolleddirectlyorindirectlybyBrunelInternationalN.V.Thesecompaniesarelistedonpage38.Controlisachievedwherethecompanyhasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Theresultsofacquiredordisposedcompaniesareconsolidatedfromthedateofacquisitionorsale,respectively.Allintra-grouptransactions,balances,incomeandexpensesareeliminatedonconsolidation.

MinorityinterestsinthenetassetsofconsolidatedsubsidiariesareidentifiedseparatelyfromBrunel’sequitytherein.Minorityinterestsconsistofthenetequityvalueofthoseinterestsatthedateoftheoriginalbusinesscombinationandtheminority’sshareofchangesinequitysincethedateofthecombination.Lossesapplicabletotheminorityinexcessoftheminority’sinterestinthesubsidiary’sequityareallocatedagainsttheinterestsofBrunelexcepttotheextentthattheminorityhasabindingobligationandisabletomakeanaddition-alinvestmenttocoverthelosses.

Accounting principles for the valuation of assets and liabilities and determination of profitThebookvalueofBrunel’sassetsisreviewedforimpairmentwhenevereventsorchangesincircum-stancesindicatethatthebookvaluemaynotberecoverable.Incaseoftheseeventsorchangesincircumstancestherecoverablevalueoftheassetconcernedisdetermined.Ifthisisnotpossible,therecoverableamountofthecash-generatingunittowhichtheassetbelongs,isdetermined.Forpurpos-esofimpairmenttesting,assetsaregroupedatthelowestlevelsforwhichthereareseparatelyidenti-fiablecashflows.Anassetisimpairedifitsbookvalueisexceedingtherecoverablevalue.Therecoverablevalueisthehigherofanasset’sfairvaluelesscoststosellanditsvalueinuse.Thevalueinuseisdeterminedbymeansofthepresentvalueofestimatedcashflowprojections.

Allbusinesscombinationsareaccountedforbyapplyingthepurchasemethod.Whenacompanyorbusinessisacquired,theacquirerrecognizesgood-willasanasset.Theassetrecognizedismeasuredastheexcessofthecostofacquisitionovertheacquir-er’sinterestinthefairvalueofassets,liabilitiesandcontingentliabilitiesacquired.Impairmentofgoodwillwillbetestedatleastannually.Animpair-mentlossrecognizedforgoodwillisnotreversedinasubsequentperiod.IntheeventBruneldecidestoacquireapartorthecompleteminorityinterest,IFRS3BusinessCombi-nations,doesnotapplywheretheinterestinanexistingsubsidiarycompanyitalreadycontrolsisexpanded.Brunelhasdecidedtousetheequitytransactionmethodfortherecognitionofthedifferencethatarisesbetweenthetransactioncostandthepurchaseoftheminorityinterests.Withtheequitytransactionmethodthedifferenceisaccount-edforasanequitytransactionbetweenowners.

AnnualReport2007 41

AnnualAccounts2007

Software,plant,propertyandequipmentarevaluedathistoricalcostlessdepreciationusingthestraight-linemethodovertheirexpectedusefullife.

Financialassetsare,dependingonthenatureoftheassetconcerned,valuedateitheramortisedcosts,usingtheeffectiveinterestmethodlessimpairmenteithertheequitymethod.

Tradereceivablesareinitiallystatedatfairvalue.Subsequentmeasurementisatamortisedcostslessprovisionforimpairment.

Theotherassetsandliabilitiesareinitiallystatedatcost.

Allreceivablesandliabilitiesareclassifiedasoriginatedloansandreceivables.

Balancesheetitemsdenominatedinforeigncurrenciesaretranslatedattheratesofexchangeprevailingatthebalancesheetdate;profitandlossaccountitemsaretranslatedattheaverageratesduringthefinancialyear.Exchangedifferencesduetotheconsolidationofforeigncompaniesarechargedorcrediteddirectlytothetranslationreserve.

Sharebasedpaymentsaregrantedtothedirectorofthecompanyandseniormanagement.Theseoptionplansaresettledinordinaryshares.Thefairvalueoftheseshare-basedpayments,calculatedongrantdate,isincludedintheindirectpersonnelexpenses.Theexpensesarecreditedtoequityforthesameamount.ThefairvalueiscalculatedbasedontheBlackandScholesoptionvaluationmodel.Ateachbalancesheetdate,Brunelrevisesitsestimatesofthenumberofoptionsthatareexpectedtobecomeexercisable,takingintoaccountthelapseofoptionsandtheconditionalrequirements.Theimpactoftherevisionoforiginal

estimates,ifany,isrecognizedintheincomestatementwithacorrespondingadjustmenttoequityovertheremainingperiod.

Netturnoverrelatestoamountschargedtothirdpartiesduringthefinancialyear,excludinganytaxesleviedthereon.Revenuesandcostsarechargedtotheyearinwhichtheservicesarerendered.

Directcostsrelatetocostsattributeddirectlytotheservicesprovided,withpersonnelcostsasthemaincostitem.Retirementbenefitcosts:Allpensionplansprevail-ingwithinBrunelaredefinedcontributionplans.Paymentstotheseplansarechargedasanexpenseastheyfalldue.

Leasing:Rentalspayableunderoperatingleasesarechargedtoprofitorlossonastraight-linebasisoverthetermoftherelevantlease.Benefitsre-ceivedandreceivableasanincentivetoenterintoanoperatingleasearealsospreadonastraight-linebasisovertheleaseterm.

Taxation:Incometaxexpenserepresentsthesumofthetaxcurrentlypayableanddeferredtax.

Thetaxcurrentlypayableisbasedontaxableprofitfortheyear.Taxableprofitdiffersfromprofitasreportedintheincomestatementbecauseitexcludesitemsofincomeorexpensethataretaxableordeductibleinotheryearsanditfurtherexcludesitemsthatarenevertaxableordeduct-ible.Brunel’sliabilityforcurrenttaxiscalculatedusingapplicablerates.

42 AnnualReport2007

AnnualAccounts2007

Deferredtaxisrecognisedondifferencesbetweenthecarryingamountsofassetsandliabilitiesinthefinancialstatementsandthecorrespondingtaxbasesusedinthecomputationoftaxableprofit.Deferredtaxliabilitiesaregenerallyrecognisedforalltaxabletemporarydifferencesanddeferredtaxassetsarerecognisedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichdeduct-ibletemporarydifferencescanbeutilised.

Thecarryingamountofdeferredtaxassetsisreviewedateachbalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitswillbeavailabletoallowallorpartoftheassettoberecovered.

Deferredtaxiscalculatedatthetaxratesthatareexpectedtoapplyintheperiodwhentheliabilityissettledortheassetrealised.Deferredtaxischargedorcreditedtoprofitorloss,exceptwhenitrelatestoitemschargedorcrediteddirectlytoequity,inwhichcasethedeferredtaxisalsodealtwithinequity.

Accounting principles for determining the consolidated cash flow statementThecashflowstatementhasbeenpreparedac-cordingtotheindirectmethod,wherebyprofitorlossisadjustedfortheeffectsoftransactionsofanon-cashnature,anydeferralsoraccrualsofpastorfutureoperatingcashreceiptsorpayments,anditemsofincomeorexpenseassociatedwithinvest-ingorfinancingcashflows.Theacquisitionpriceoftheacquiredparticipationshasbeenincludedinthecashflowfrominvest-mentactivities.

Accounting principles for segment reportingAbusinesssegmentisagroupofassetsandoperationsengagedinprovidingservicesthataresubjecttorisksandreturnsthataredifferentfromthoseofotherbusinesssegments.Ageographicalsegmentisengagedinprovidingservicesinaparticulareconomicenvironmentwhicharesub-jecttorisksandreturnsthataredifferentfromthoseofsegmentsoperatinginothereconomicenvironments.Brunel’sprimaryformatforsegmentreportingisgeographically,whereasthesecondaryformatisperbusinesssegment.

Accounting estimates and judgmentsManagementmakesestimatesandassumptionsconcerningthefuture.Theseestimatesandassoci-atedassumptionsarebasedonhistoricalexperi-enceandotherfactors,includingexpectationsforfutureeventsthatarebelievedtobereasonableunderthecircumstances.Actualresultsmaydifferfromtheseestimates.Themainuncertaintiesareapplicabletoestimationsandassumptionsusedforimpairmenttestofgoodwillanddeterminationofdeferredtaxassets.Thedifferencesareexpectednottohaveasignificanteffect.

Theestimatesandunderlyingassumptionsarereviewedonanongoingbasis.Revisionstoac-countingestimatesarerecognizedintheperiodinwhichtheestimateisrevisediftherevisiononlyaffectsthatperiod,orintheperiodoftherevisionandfutureperiodsiftherevisionaffectsbothcurrentandfutureperiods.

AnnualReport2007 43

AnnualAccounts2007

Capital risk managementBrunelmanagesitscapitaltoensurethatentitiesinthegroupwillbeabletocontinueasagoingconcernwhilemaximizingthereturntostakehold-ersthroughtheoptimizationofthedebtandequitybalance.ThedividendpolicyofBrunelisaimedatmaximizingthedistributionstoshareholders,whilereservingenoughcapitaltoensuretheabilitytocontinueasagoingconcernandtofundplannedgrowth.Brunel’sstrategyisnottouseanylong-termcreditlines.Thistypicallyleadstohighsolvencyrates.

Financial risk managementBrunel’sactivitiesareexposedtoavarietyoffinancialrisks,includingtheeffectofchangesindebtandequitymarketprices,foreigncurrencyexchangeratesandinterestrates.Brunel’soverallriskmanagementprogramfocusestominimizepotentialadverseeffectsonthefinancialperfor-manceofBrunel.ThisprogramisimplementedandcarriedoutunderpoliciesapprovedbytheBoardofDirectors.

liquidity riskTheBrunelmaintainssufficientcashtofundherongoingoperations.Inadditionthereistheavail-abilityoffundingthroughadequatecreditfacilitiestominimizeliquidityrisk.WithinBrunelderivativefinancialinstrumentsarenotusednorhedgingactivitiesundertaken.

Foreign exchange riskCurrencyfluctuationsaffecttheconsolidatedresults,becauseaportionofthecashflowisgeneratedinothercurrenciesthantheEuro.Brunellimitstheforeignexchangeriskbymaintainingaback-to-backpolicy,meaningthatthemanage-mentstrivestohavebothincomeandexpensestobegeneratedlocallyinthesamecurrency.Duetotheback-to-backpolicy,theforeignexchangerisk

ofBrunelislimitedtotheexchangeriskovertheprofitsearnedinforeigncurrencies.TheforeigncurrenciesthatcanhaveamaterialeffectontheincomestatementofBrunelaretheUSDollarandtheAustraliandollar.ThecarryingamountsoftheGroup’sforeigncurrencydenominatedmonetaryassetsandmonetaryliabilitiesatthereportingdateareasfollows:

liabilities AssetsX EUR 000 2007 2006 2007 2006USDollar 6,774 7,893 47,429 41,072AustralianDollar 5,103 7,294 12,762 17,769 11,877 15,187 60,191 58,841

ThefollowingtabledetailstheGroup’ssensitivitytoa10%increaseanddecreaseintheEuroagainsttherelevantforeigncurrencies.Thesepercentagesrepresentmanagement’sassessmentofthereasonablypossiblechangeinforeignexchangerates.Thesensitivityanalysisincludesonlyout-standingforeigncurrencydenominatedmonetaryitemsandadjuststheirtranslationattheperiodendforachangeinforeigncurrencyrates.Thesensitivityanalysisincludesexternalloansaswellasloanswithinthegroup,wherethedenomina-tionoffinancialpositionisinacurrencyotherthanthecurrencyofthelenderortheborrower.ApositivenumberbelowindicatesanincreaseinprofitandotherequitywheretheEurostrengthens10%againsttherelevantcurrency.Fora10%weak-eningoftheEuroagainsttherelevantcurrency,therewouldbeanequalandoppositeimpactontheprofitandotherequity,andthebalancesbelowwouldbenegative.

44 AnnualReport2007

AnnualAccounts2007

US Dollar Australian impact Dollar impactX EUR 000 2007 2006 2007 2006Profitorloss -128 -181 -37 157OtherEquity 3,029 2,472 636 869Total Equity 2,901 2,291 599 1,026

Turnover 7,060 7,905 5,890 5,948

Credit riskCreditriskreferstotheriskthatacounterpartywilldefaultonitscontractualobligationsresultinginfinanciallosstothecompany.Brunelhasnosignifi-cantconcentrationsofcreditrisk.Themostimpor-tantbalancesheetitemsthatareimposedtocreditriskarethetradeandotherreceivables.Thetradeaccountsreceivabledoincludeanallowanceforbaddebts,referenceismadetonote5.Generallyservicesareprovidedtolargeandfinanciallystrongcompanies.Inordertominimizecreditriskexpo-sure,Brunelintensivelymonitorsthepaymentbehavioroftheircustomers.Otherpolicieslimittheamountofcreditexposuretoanyfinancialinstitution.Despitetheseinternalprocedures,uncollectibledebtscannotberuledout,buttheriskofamaterialerosionoftheoperatingprofitissmall.Asper31December2007thelargestreceiv-ableagainstasinglecounterpartyamounted€9.3million.

Interest rate riskDuetothenatureofBrunel’sbusinesstheoperat-ingcashflowsaresubstantiallyindependentofchangesinmarketinterestrates.Interestcoverageistheleadingparameterinmanaginginterestexposure.DuetothecapitalstructureofBrunel,theinterestpaidandreceivedareimmaterialamountsandhencenomaterialinterestrateriskapplies.

AnnualReport2007 45

AnnualAccounts2007

Notestotheconsolidatedbalancesheet

X EUR000, unless stated otherwise

1.goodwill

Movementsduringtheyearunderreview: 2007 2006Atcostat1January 6,778 4,463Accumulatedimpairmentandexchangerateadjustments 2,624 2,544Atcostat1January 4,154 1,919

Changesinbookvalue:Additions 0 2,315Impairment 0 0Exchangerateadjustment -130 -80Bookvalueat31December 4,024 4,154

Atcostat31December 6,634 6,778Accumulatedimpairmentandexchangerateadjustments 2,610 2,624Bookvalueat31December 4,024 4,154

Goodwillhasbeenallocatedforimpairmenttestingpurposestofourindividualcashgeneratingunits:

CarSynergiesGmbH 2,055BrunelCarltechInc 827FalkenburgerundpartnerGmbH 889BrunelCommonwealthResources 253 _______________

4,024

46 AnnualReport2007

AnnualAccounts2007

2.otheriNtaNgiBleaSSetS

Theotherintangibleassetsconsistsofsoftware 2007 2006Atcostat1January 1,627 953Accumulateddepreciation 887 464Atcostat1January 740 489

Changesinbookvalue:Additions 874 674Depreciation -705 -423Bookvalueat31December 909 740

Atcostat31December 2,501 1,627Accumulateddepreciation 1,592 887Bookvalueat31December 909 740

Depreciationrate:20-40%perannum.

Theresidualvaluesareassumedtobezero.

Duringthefinancialyearthecompanyassessedtherecoverableamountofgoodwillforthemainallocatedamounts.Noimpairmentwasrequired.Therecoverableamountswereassessedbyreferencetovalueinuse.Managementhasprojectedcashflowforecastsoveraperiodoftenyears.Agrowthrateof10%wasappliedfortheextrapolationoftheresultstotheperiodafterthesecondyear.Adiscountfactorof10%perannumwasappliedinthevalueintheusedmodel.Keyassumptionsusedinthevalueinusecalculationsare:• Budgetedrevenueandrevenuegrowth.Thesevaluesreflectpastexperienceaswellasmanagementplans.Forprojectionsbeyondtheperiodscoveredbybudgetsanaveragegrowthrateof10%hasbeenapplied.

• Budgetedgrossmargin.Basedonexperience,themanagementexpectsthattheplannedgrossmarginsareachievable.

• Overheadcosts.Theseamountsareinlinewithexpectedgrowthofbusiness.• Depreciationsandinvestmentplans.Itisassumedthatdepreciationsareusedforneworreplacinginvestments.

• Estimatedsynergyeffectsforthegroup.

AnnualReport2007 47

AnnualAccounts2007

3.property,plaNtaNdequipMeNt

Thisitemconsistsalmostentirelyofofficefurnitureandcomputersystems.

Movementsduringtheyearunderreview: 2007 2006Atcostat1January 16,977 11,148Accumulateddepreciation 9,316 -7,200Atcostat1January 7,661 3,948

Changesinbookvalue:Additions 3,460 3,858Disposals -201 -356Additionsthroughacquisitions 0 2,908Disposalsthroughdivestments 0 -44Depreciation -2,409 -2,558Exchangerateadjustment -54 -95Bookvalueat31December 8,457 7,661

Atcostat31December 16,941 16,977Accumulateddepreciation 8,484 9,316Bookvalueat31December 8,457 7,661

Depreciationrate:20-40%perannum.

Noleaseditemsareincludedinproperty,plantandequipment.Residualvaluesareconsideredtobenil.

48 AnnualReport2007

AnnualAccounts2007

4.FiNaNCialaSSetS

Thisitemcontainsaloanof€500,000providedtoathirdpartyanda50%shareina2007incorporatedjointventurewithINJOBItalia.

Movementsduringtheyearunderreview: 2007 2006Bookvalueat1January 593 65Investment 100 0Disposal -143 0Result 34 28Loanprovided 0 500Allowanceonloanprovided -200 0Bookvalueat31December 384 593

Theloanisprovidedunderthesecurityofamortgage.Thefinancialfiguresfor2007ofthejointventurearenotsignificant.Asper1January2007the50%stakeofLegalWorkforceB.V.hasbeensoldtotheother50%shareholder.

5.tradeaNdotherreCeivaBleS

2007 2006Tradeaccountsreceivable 111,707 105,382Otherreceivables 3,498 3,215Prepaymentsandaccruedincome 24,440 29,198 139,645 137,795

Allreceivableshaveanexpectedtermofflessthanoneyear.Thebookvalueofthesereceivablesequalsthefairvalue.

AnnualReport2007 49

AnnualAccounts2007

Thetradeaccountsreceivabledoincludeanallowanceforbaddebts.Themovementinthisallowanceisasfollows: 2007 2006Balanceatthebeginningoftheyear 4,817 4,338Amountswrittenoffduringtheyear -491 -2,535Increaseinallowancerecognizedinresult 0 3,025Decreaseinallowancerecognizedinresult -520 0Exchangeratefluctutations 0 -11 _______________ _______________

Balanceattheendoftheyear 3,806 4,817

Ageingofimpairedandpastduetradereceivables 2007Impairedtradereceivables 1,33260-90days 4,97790-120days 2,263120+days 8,584 _______________

Total 17,156

Thegrantedcredittermsmaydifferfrom14-90days.Thisisdeterminedonthegeneraltermsandcondi-tionsofBrunel’sprimarysegmentationand/orspecificagreementswithindividualcustomers.

6.CaSh

Thisitemconsistsmainlyofbankbalances,partofwhich,€1.9(2006:€3.2)million,isnotfreelydisposableongroundsofissuedbankguarantees.

7. CurreNtliaBilitieS 2007 2006Tradepayables 12,994 17,482Taxesandsocialsecuritycharges 18,809 15,147Pensions 970 2,048Otherliabilitiesandaccruedexpenses 25,978 26,880 58,751 61,557

Practicallyallliabilitieshaveanexpectedtermofflessthanoneyear.Themajorityoftradepayablesareduewithinarangeof0–45days.Themajorityoftheotherliabilitiesandaccruesexpensesareduewithinarangeof60–180days.Thebookvalueoftheseliabilitiesequalsthefairvalue.

50 AnnualReport2007

AnnualAccounts2007

8.groupequity

Theauthorizedcapitalis€5,000,000dividedintooneprioritysharewithanominalvalueof€10,000and99.8millionordinaryshareswithanominalvalueof€0.05.Thesubscribedcapitalconsistsof22,742,257ordinaryshares(2006:22,658,742).

Themovementinthenumberofissuedsharesis: 2007 2006Issuedat1January 22,658,742 22,650,742Issueofshares 83,515 8,000Issuedat31December 22,742,257 22,658,742

Furtherinformationisprovidedintheconsolidatedstatementofchangesinshareholders’equityonpage37ofthisreport.Intheyearunderreviewthecashdividendpersharewas€0.50.Theproposeddividendfor2007willbe€0.70pershare.

Minority interestThemovementinminorityinterestisasfollows: 2007 2006Balanceat1January 387 64Resultfortheyear 779 428Dividend -385 -96Acquisitionofminorityinterest -224 0Exchangeratefluctutations 0 -9Balance at 31 December 557 387

Theinterestofoneoftheassociateswasexpandedfrom80%to90%inDecember2007.Thepurchasepricewillbepaidin2008.Theshareintheassetsandliabilitiesacquiredasaresultofthistransactionisasfollows:

Cash 47Receivables 306Otherassets -14Currentliabilities -115Minorityinterestattransactiondate 224Goodwill 1,623Totalpurchaseprice 1,847

AnnualReport2007 51

AnnualAccounts2007

Option rights

Outstanding options:Yeargranted 2001 2002 2003 2004 2005 2006 2007 Total Exercisepriceaverage €8.00 €4.43 €2.55 €5.92 €11.65 €22.90 €24.59

Outstandingat31December2005 25,525 51,090 124,222 145,500 179,500 - - 525,837Grantedin2006 - - - - - 293,000 - 293,000Exercisedin2006 -25,525 -10,250 -27,325 - - - - -63,100Forfeitedin2006 - - - -41,000 -32,000 -8,000 - -81,000Outstanding at 31 December 2006 0 40,840 96,897 104,500 147,500 285,000 0 674,737Grantedin2007 - - - - - - 370,000 370,000Exercisedin2007 - -40,840 -9,175 -33,500 - - - -83,515Forfeitedin2007 - - -2,000 -7,000 -18,500 -107,500 -162,500 -297,500Outstanding at 31 December 2007 0 0 85,722 64,000 129,000 177,500 207,500 663,722 OfwhichBoardofDirectors 83,722 50,000 25,000 25,000 25,000 208,722Exerciseprice €2.55 €5.92 €11.65 €22.90 €23.77 Expirydate 2007 2007 2008 2009 2010 2011 2012

Theoptionsgrantedtopersonnelareconditionalandlinkedtoperformancetargetsfortheyearofallocation.Optionscanbeexercisedthreeyearsafterbeinggrantedonconditionthattheemployeeisstillintheserviceofthecompany.Themethodofsettlementcanbesaleoftreasurysharesorshareissue.TheoptionsgrantedtotheBoardofDirectorsareconditional,meaningthattheycanbeexercisedafterthreeyearsonconditionthattheapplicableboardmemberstillholdstheposition.

TheoptionvaluationmodeltocalculatethefairvalueoftheoptionsistheBlackandScholesmodel.Thismodelisbasedonhistoricalvolatilityoverthepastthreeyears,adividendpolicyof0.5%andcalculatesaninterestof3.0%.

Thereferencedatesarethedateofgranting,andpreciselythreeyearslater.Asper31December2007onlythe2003and2004outstandingoptionscanbeexercised.

52 AnnualReport2007

AnnualAccounts2007

Contingent liabilitiesBrunelhasenteredintolong-termnon-cancellablecommitmentsunderrentandleasecontracts.

2007 2006Expireinyear1 9,855 10,397Expireinyear2–5 13,863 17,493Expireinyear6andlater 0 0 23,718 27,890

AnnualReport2007 53

Notestotheconsolidatedprofitandlossaccount

AnnualAccounts2007

X EUR 000, unless stated otherwise

9. SAlARIES AnD SOCIAl SECURITy CHARGES

2007 2006Theprofitandlossaccountincludesthefollowingamounts:Salaries 309,937 297,887Socialcharges 33,065 26,673Pensioncharges 6,186 3,547 349,188 328,107

Atotalof€308millionoftheaboveamountsisincludedinthedirectcostofturnover(2006:€292million).Thepensionschemeisclassifiedasdefinedcontribution.

Remuneration of directors Thedirectors’remunerationspaidin2007(2006)aresetoutbelow: Salary Bonus Pension Share based Total payments

J.A.vanBarneveld,CEO 300(285) 125(124) 134(131) 134 (98) 693(638)J.E.Jansen,chairmanofthe 40 (40) 0 0 0 40 (40)SupervisoryBoardA.Schouwenaar,vice-chairman 30 (30) 0 0 0 30 (30)oftheSupervisoryBoardD.vanDoorn,memberofthe 25 (0) 0 0 0 25 (0)SupervisoryBoard

MrVanBarneveldhas3,782sharesinthecompany,inadditionto208,722conditionalshareoptions.Themembersofthesupervisoryboardholdneithersharesnorshareoptionsinthecompany.

10. DEPRECIATIOnS

2007 2006Thecostsfordepreciationsintheprofitandlossaccountconsistof:Software(2) 705 423Property,plantandequipment(3) 2,409 2,558 3,114 2,981

54 AnnualReport2007

AnnualAccounts2007

Other general and administrative expensesThe2007othergeneralandadministrativeexpensesincludefor€8.5million(2006:€7.4million)ofrentalcostsandleasingcosts.

11. TAx

Thetaxburdenintheprofitandlossaccountfor2007is€14,4million,makingup28.1%ofthepre-taxoperatingprofit(2006:taxburden€11.1millionand31.6%respectively).ThedifferencebetweentheeffectivetaxrateandtheapplicableDutchcorporationtaxrateof25.5%overtheoperatingprofitisexplainedbelow:

2007 2006Dutchcorporationtax 13,079 10,459Permanentdifferences:Differencewithforeigntaxrates 1,614 499Adjustmentpreviousyears -378 -451Nontaxableitems -151 123Taxlossesnotrecognizedasdeferredtaxasset(inpreviousyears) -9 536Othertaxes(withholdingtaxes) 257 0Effectofchangesintaxlaws 0 -18Effectivetaxcharge 14,412 11,148

Dutchcorporationtaxratewas25.5%over2007and29.6%during2006.Duringthefinancialyearasumof€590,000relatingtocurrenttaxwascreditedtotheshareholderequity(2006:creditedby€882,000relatingtodeferredtaxes).Thistaxrelatestoexchangeratedifferencesdirectlycharged/creditedtoequity.

AnnualReport2007 55

AnnualAccounts2007

Taxonprofitfromordinaryactivitiesconsistsofthecomponentslistedbelow:

2007 2006Taxontaxableprofit 16,225 9,942Changesindeferredtaxassets -1,813 1,206Taxonprofitfromordinaryactivitiescon-sistsofthecomponentslistedbelow: 14,412 11,148

Thedeferredincometaxassetsisbaseduponrecognizedassetsoriginatingfromexistingaccumulativetaxlosses.Deferredtaxassetsrecognitionissupportedbynearfutureresultforecasts.Thedeferredincometaxliabilitiesasper31December2007seetoretainedearningsinforeignsubsidiariessubjecttoDutchincorporationtaxoncetheseearningswillbedistributedtotheapplicableshareholdingcompany.Theamountnotrecognizedasdeferredtaxassetisnotsignificant.

Movement schedule tax assets and liabilities

Current Deferred TotalBalance at 1 January 2007 Taxasset 518 1,939 2,457Taxliability -2,897 -445 -3,342 -2,379 1,494 -885Movements during the year Paid/Received 15,989 0 15,989ThroughProfitandloss -16,225 1,813 -14,412ThroughEquity 590 0 590Exchangerateadjustment 65 -233 -168Balance at 31 December 2007 -1,960 3,074 1,114 Balance at 31 December 2007 Taxasset 1,253 3,536 4,789Taxliability -3,213 -462 -3,675 -1,960 3,074 1,114

56 AnnualReport2007

AnnualAccounts2007

12.reSultpartiCipatioNS

2007 2006Bookprofitfromdivestmentsofbusiness(16) 50 1,932Resultjointventure -16 28Transferofaccumulativeexchangeresultsfromequitytoprofitondisposalofforeignoperations 0 557 34 2,517

13.BaSiCearNiNgSperShare

2007 2006Weightedaveragenumberofordinarysharesforthepurposeofbasicearningspershare 22,700,500 22,627,192Effectofdilutivepotentialordinarysharesfromsharebasedpayments 149,722 137,377Weightedaveragenumberofordinarysharesforthepurposeofdilutedearningspershare 22,850,222 22,764,569Netincomeforordinaryshareholders €36,133,000 €26,274,000Basicearningspershare €1.59 €1.16Dilutedearningspershare €1.58 €1.15

AnnualReport2007 57

AnnualAccounts2007

notes to the consolidated cash flow statementThemajorityoftheitemsontheconsolidatedcashflowstatementare,onanindividualbasiscross-referencedtotherelevantnotesontheconsolidatedprofitandlossaccountandbalancesheet.Fortheremainderofthematerialitems,thereconciliationbetweenamountsincludedintheconsolidatedcashflowstatementandrelatedamountsinprofitandlossaccountandbalancesheetisshownbelow.

14.reCeivaBleS

2007 2006Receivables1January 137,795 111,580Receivablesthroughacquisitions 0 2,578Receivablesdivestments 0 -894Changeinallowanceforbaddebts 520 -3,025Exchangeratefluctuations -3,461 -4,410Changeinreceivables 4,791 31,966Receivables31December 139,645 137,795

15.CurreNtliaBilitieS

Currentliabilities1January 61,557 48,605Currentliabilitiesacquisitions 0 7,555Currentliabilitiesdivestments 0 -1,425Deferredpaymentacquisitionminorityinterest 1,847 0Exchangeratefluctuations -1,043 -1,263Changeincurrentliabilities -3,610 8,085Currentliabilities31December 58,751 61,557

58 AnnualReport2007

AnnualAccounts2007

16.proCeedSFroMdiveStMeNtSoFBuSiNeSS

Book value of net assets sold 2007 2006Currentassetsincludingcash 0 1,921Non-currentassets 0 44Currentliabilities 0 -1,397Netassetsdisposedof 0 568Gainondisposal 0 1,932 0 2,500 Consideration Considerationreceivedincash 0 2,500Cashdisposedof 0 -1,027 0 1,473 In2006itconcernsthesaleofTechnosoftBV.BrunelInternationalguaranteedsuretythefinancingofTechno-softBVtoamaximumamountof€0.85(2006:€1.0)million.Thisobligationisasper31December2007valuedatnil.

Transactions with related partiesIncludedunderreceivablesareamountspayablebylegalentitiesthatareaffiliatedtothemajorityshare-holderMr.JanBrand;thesetotal€51,254(2006:€60,000)andconcernprimarilyinvoicedrentsandservicecharges.Includedunderotheroperatingexpensesisanamountof€79,411(2006:€79,411)paidasconsul-tancyfeetothemajorityshareholderofBrunelInternationalN.V.

AnnualReport2007 59

AnnualAccounts2007

Segment reporting X EUR 000, unless stated otherwise

Segment activitiesBrunel’sactivitiesaremainlytemporarystaffing,projectmanagement,recruitmentandconsultancy.Theprimaryreportingprovidesageographicaloverviewoftheseactivities.TheEnergydivisionsuppliesengineers,projectmanagementandconsultancyservicestooilandgascom-paniesandrelatedindustries.Astheoperationsarespreadovermorethan25countriesandtheirnaturediffersfromthebusinessinNetherlandsandGermanyafurtherstratificationofthisdivisionisnotdeemedtobeuseful.

Primary reporting Turnover Gross profit Operating profit 2007 2006 2007 2006 2007 2006Netherlands 138,101 117,465 55,453 45,494 27,624 16,779WorldwideEnergy 287,322 255,251 31,419 28,816 11,711 10,080Germany 129,334 103,961 41,832 34,365 11,478 9,947Otherregions 25,132 22,393 7,602 6,600 1,567 681Unallocated -1,133 -2,211 579,889 499,070 136,306 115,275 51,247 35,276

Balance sheet total Investment in FA Depreciation 2007 2006 2007 2006 2007 2006Netherlands 35,673 35,418 991 796 442 734WorldwideEnergy 102,042 97,128 805 743 495 406Germany 41,794 37,969 2,072 5,582 1,873 1,576Otherregions 18,364 7,976 466 319 304 265 197,873 178,491 4,334 7,440 3,114 2,981

External liabilities 2007 2006 Netherlands 16,377 13,713 WorldwideEnergy 27,240 32,129 Germany 11,581 15,997 Otherregions 6,766 3,060 61,964 64,899

60 AnnualReport2007

AnnualAccounts2007

EmployeesThetotalnumberofdirectandindirectemployeeswiththegroupcompaniesissetoutbelow:

Average workforce 2007 2006 Direct Indirect Direct IndirectNetherlands 1,610 277 1,359 246WorldwideEnergy 2,934 252 2,511 230Germany 1,529 243 1,256 195Unallocated 320 83 270 81 6,393 855 5,396 752 Totalworkforce 7,248 6,148

Workforce at 31 December 2007 2006 Direct Indirect Direct IndirectNetherlands 1,740 296 1,600 267WorldwideEnergy 3,123 264 2,742 241Germany 1,681 278 1,388 222Otherregions 432 82 249 83 6,976 920 5,979 813 Totalworkforce 7,896 6,792

AnnualReport2007 61

AnnualAccounts2007

Segment activitiesBrunel’sactivitiesaremainlytemporarystaffing,projectmanagement,recruitmentandconsultancy.Thesecondaryreportingprovidesanoverviewoftheseactivitieswithregardstoprofessionalspecialization.

Secondary reporting Turnover Gross profit Operating profit 2007 2006 2007 2006 2007 2006Engineering 207,157 169,514 72,773 59,433 24,886 18,086Energy 287,322 255,251 31,419 28,816 11,711 10,080ICT 48,797 38,850 16,956 12,743 7,206 3,824Unallocated 36,613 35,455 15,158 14,283 7,444 3,286 579,889 499,070 136,306 115,275 51,247 35,276

Balance sheet total Investment in FA Depreciation 2007 2006 2007 2006 2007 2006Engineering 46,643 42,260 2,212 5,689 2,024 1,695Energy 102,042 97,128 805 743 495 406ICT 4,962 4,078 54 214 107 91Unallocated 44,226 35,025 1,263 794 488 789 197,873 178,491 4,334 7,440 3,114 2,981

62 AnnualReport2007

AnnualAccounts2007

EmployeesThetotalnumberofdirectandindirectemployeeswiththegroupcompaniesissetoutbelow:

Average workforce 2007 2006 Direct Indirect Direct IndirectEngineering 2,480 389 2,084 335Energy 2,934 252 2,511 230ICT 558 69 468 64Unallocated 421 145 333 123 6,393 855 5,396 752 Totalworkforce 7,248 6,148

Workforce at 31 December 2007 2006 Direct Indirect Direct IndirectEngineering 2,734 433 2,275 364Energy 3,123 264 2,742 241ICT 589 71 525 64Unallocated 530 152 437 144 6,976 920 5,979 813 Totalworkforce 7,896 6,792

AnnualReport2007 63

Companybalancesheetasper31 December2007

AnnualAccounts2007

X EUR 000, before profit appropriation

2007 2006non-current assets Property,plantandequipment 207 35Investments(17) 67,040 55,063Deferredincometaxassets 661 0 67,908 55,098

Current assets Tradeandotherreceivables(18) 66,980 54,511Incometaxreceivables 1,241 3,110Cash(19) 4,040 3,701Total current assets 72,261 61,322Currentliabilities(20) 4,834 2,778

Working capital 67,427 58,544

non-current liabilitiesDeferredincometaxliabilities 445 437 134,890 113,205

Shareholders’equity (21) Issuedsharecapital 1,137 1,133Sharepremiumreserve 36,595 36,173Generalreserve 68,070 54,066Translationreserve -7,045 -4,441Resultfinancialyear 36,133 26,274 134,890 113,205

Balance sheet total 140,169 116,420

64 AnnualReport2007

Companyprofitandlossaccount2007

AnnualAccounts2007

X EUR 000

2007 2006Resultonparticipationsaftertax(22) 33,539 25,131Otherincomeandexpensesaftertax 2,594 1,143

net result 36,133 26,274

AnnualReport2007 65

Notestothecompanybalancesheetandprofitandlossaccount

AnnualAccounts2007

X EUR 000, unless stated otherwise

General ThefinancialstatementsofBrunelInternationalN.V.havebeenpreparedusingtheoptionofsection362ofBook2oftheNetherlandsCivilCode,meaningthattheaccountingprinciplesusedarethesameasfortheconsolidatedfinancialstatements.Foreigncurrencyhasbeentranslated,assetsandliabilitieshavebeenvalued,andnetincomehasbeendetermined,inaccordancewiththeprinciplesofvaluationanddeterminationofincomeonpages40andforward.SubsidiariesofBrunelInternationalN.V.areaccountedforusingtheequitymethod.

17.iNveStMeNtS

2007 2006Subsidiaries 66,740 42,363Receivablesfromsubsidiaries 0 12,200Thirdpartyloan 300 500 67,040 55,063 Movementsin2007: Subsidiaries Receivables Valueat1January 42,363 12,200Capitalcontributionsandacquisitions 0 0Repayments 0 -12,200Divestments 0 0Liquidations -51 0Profit2007 33,539 0Dividendpayment -5,000 0Acquisitionminorityinterest -1,623 0Exchangeratefluctuations -2,584 0Othermovements 96 0Valueat31December 66,740 0

18.tradeaNdotherreCeivaBleS

Subsidiaries 66,941 54,465Otherliabilities 39 46 66,980 54,511

66 AnnualReport2007

AnnualAccounts2007

19.CaSh

Anamountof€0.1(2006:€2.6)millionisnotfreelydisposable,butisreservedtocovertheamountsowedtobanksbytheDutchsubsidiaries.

20.CurreNtliaBilitieS Groupcompanies 1,280 1,641Otherliabilities 3,554 1,137 4,834 2,778

21.ShareholderS’equity

Composition of and changes in shareholders’ equity:

Share Share General Translation Unapropri- Total Total capital premium reserve reserve ated result/ 2007 2006 result fi- nancial year

Balanceat1January 1,133 36,173 54,066 -4,441 26,274 113,205 96,683 Exchangedifferencesresult -2,604 -2,604 -3,134Transfertoprofitondisposalforeignoperations 0 0 0 -557 Resultfinancialyear 36,133 36,133 26,274Cashdividend -11,370 -11,370 -6,795Resultappropriation 14,904 -14,904 0 0Sharebasedpayments 723 723 414Acquisitionminorityinterest -1,623 -1,623Optionrightsexercised 4 422 426 320 Balanceat31December 1,137 36,595 68,070 -7,045 36,133 134,890 113,205

Intheyearunderreviewthecashdividendpersharewas€0.50.Theproposeddividendfor2007willbe€0.70pershare.Informationonoutstandingoptionsisprovidedinthenotestotheconsolidatedbalancesheet.Thedetailsonthecompositionofandchangesintheshareholder’sequityof2006aredisclosedintheconsolidatedstatementofchangesinequity.

AnnualReport2007 67

AnnualAccounts2007

22.reSultpartiCipatioNS

2007 2006

Profitgroupcompanies(17) 33,539 22,614Bookprofitfromdivestmentsofbusiness(16) 0 1,960Transferofaccumulativeexchangeresultsfromequitytoprofitondisposalofforeignoperations 0 557

33,539 25,131

GuaranteesThecompanyhasguaranteedtheliabilitiesforitsDutchparticipationsBrunelNederlandB.V.andBrunelEnergyHoldingB.V.Guaranteestotheamountof€2.1million(2006:€2.4million)havebeenprovidedforforeignparticipations.BrunelInternationalN.V.formsataxgroupwithanumberofitsDutchgroupcompa-niesforthepurposesofcorporateincometaxandVAT,makingtheholdingseverallyliableforthetaxliabilitiesofthetaxgroup.

Amsterdam, 25March2008

The Board of Directors The Supervisory BoardDrs.J.A.vanBarneveldRA Mr.J.E.Jansen Drs.A.Schouwenaar Ir.D.vanDoorn

68 AnnualReport2007

Profit appropriation according to the articles of association Article26.2TheBoardofDirectorsdeterminesthepartoftheCompany’sprofitswhichwillbeaddedtothereserves,subjecttotheapprovaloftheholderofthepriority*share.Article26.3TheremainingpartoftheCompany’sprofitsisatthedisposaloftheshareholdersfordistributionofprofit.

Proposed profit appropriationItisproposedtotheGeneralMeetingofSharehold-ersthatadividendof€0.70persharewillbepaid.

*)PursuanttoArticle4.3,aslongasthepriorityshareisnotsubscribed,therightsattachedtothisshareareexercisedbytheGeneralMeetingofShareholders.

12 Additionalinformation

AnnualReport2007 69

13 Auditor’sreport

TotheGeneralMeetingofShareholdersofBrunelInternationalN.V.

Report on the financial statementsWehaveauditedtheaccompanyingfinancialstatements2007ofBrunelInternationalN.V.,Amsterdam.Thefinancialstatementsconsistoftheconsolidatedfinancialstatementsandthecompanyfinancialstatements.Theconsolidatedfinancialstatementscomprisetheconsolidatedbalancesheetasat31December,2007,profitandlossaccount,statementofchangesinequityandcashflowstatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatorynotes.Thecompanyfinancialstatementscomprisethecompanybalancesheetasat31December,2007,thecompanyprofitandlossaccountfortheyearthenendedandthenotes.

Management’s responsibilityManagementisresponsibleforthepreparationandfairpresentationofthefinancialstatementsinaccordancewithInternationalFinancialReportingStandardsasadoptedbytheEuropeanUnionandwithPart9ofBook2oftheNetherlandsCivilCode,andforthepreparationofthemanagementboardreportinaccordancewithPart9ofBook2oftheNetherlandsCivilCode.Thisresponsibilityincludes:designing,implementingandmaintaininginternalcontrolrelevanttothepreparationandfairpresen-tationofthefinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror;selectingandapplyingappropriateaccountingpolicies;andmakingaccountingestimatesthatarereasonableinthecircumstances.

Auditor’s responsibilityOurresponsibilityistoexpressanopiniononthefinancialstatementsbasedonouraudit.WeconductedourauditinaccordancewithDutchlaw.Thislawrequiresthatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassurancewhetherthefinancialstatementsarefreefrommaterialmisstatement.Anauditinvolvesperformingprocedurestoobtainauditevidenceabouttheamountsanddisclosuresinthefinancialstatements.Theproceduresselect-eddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalcontrolrelevanttotheentity’spreparationandfairpresentationofthefinancialstatementsinordertodesignauditproceduresthatareappropriateinthecircum-stances,butnotforthepurposeofexpressinganopinionontheeffectivenessoftheentity’sinternalcontrol.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesmadebymanagement,aswellasevaluatingtheoverallpresentationofthefinancialstatements.Webelievethattheauditevidencewehaveob-tainedissufficientandappropriatetoprovideabasisforourauditopinion.

70 AnnualReport2007

Opinion with respect to the company financial statementsInouropinion,thecompanyfinancialstatementsgiveatrueandfairviewofthefinancialpositionofBrunelInternationalN.V.asat31December,2007,andofitsresultfortheyearthenendedinaccordancewithPart9ofBook2oftheNetherlandsCivilCode.

Report on other legal and regulatory requirementsPursuanttothelegalrequirementunder2:393sub5parteoftheNetherlandsCivilCode,wereport,totheextentofourcompetence,thatthemanage-mentboardreportisconsistentwiththefinancialstatementsasrequiredby2:391sub4oftheNetherlandsCivilCode.

Rotterdam,25March2008

DeloitteAccountantsB.V.

A.G.vanBochoveRA

Auditor’sreport

AnnualReport2007 71

X EUR million, unless stated otherwise 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997profitNetturnover 579.9 499.1 390.8 312.7 245.7 204.7 210.5 214.5 237.3 233.9 163.6Grossmargin 136.3 115.3 88.4 67.8 55.7 48.8 58.9 64.8 75.8 72.2 53.4Operatingprofit 51.2 35.3 23.5 10.9 2.8 -7.6 3.9 0.9 14.4 23.1 20.5Resultbeforetax 51.3 35.3 24.1 11.3 3.4 -6.8 5.9 2.3 15.3 23.7 21.0Extraordinaryincomeandexpensesbeforetax - - - - - -1.4 -0.3 -2.5 - -Groupresultaftertax 36.9 24.2 16.0 7.5 2.2 -4.4 3.8 1.0 9.3 15.8 13.5Netresult 36.1 26.3 15.9 7.4 2.2 -4.4 3.8 1.0 9.3 15.7 13.5Cashflow(netprofit+depreciations/impairment) 39.2 29.7 18.7 11.0 5.4 -1.2 6.3 3.6 11.6 17.4 14.6Depreciationoftangiblefixedassetsandamortisation 3.1 3.0 2.8 4.1 3.2 3.2 2.5 2.6 2.4 1.6 1.0Additionstotangiblefixedassets 4.3 4.5 2.5 1.9 1.4 7.8 4.4 2.7 2.9 3.3 1.8

workforce Averageovertheyear 7.248 6,148 4,796 3,984 3,499 3,419 3,516 4,003 4,730 4,640 3,420

Balancesheetinformation Fixedassets 17.5 15.1 6.4 5.5 8.1 10.7 6.9 5.4 5.8 5.0 3.0Workingcapital 118.6 99.0 90.3 73.9 68.3 64.9 78.0 77.4 81.8 70.9 58.2Groupequity 135.4 113.6 96.7 79.4 75.8 75.0 81.8 80.2 85.2 75.1 60.4Balancesheettotal 197.9 178.5 150.3 118.9 106.4 100.1 113.0 105.9 107.3 109.3 86.1

ratios Changeinturnoveronpreviousyear 16.2% 28.0% 25.0% 27.3% 20.1% -2.8% -1.4% -9.6% 1.5% 43.0% 41.8%Grossprofit/netturnover 23.5% 23.1% 22.6% 21.7% 22.7% 23.9% 28.0% 30.2% 31.9% 30.9% 32.6%Operatingprofit/netturnover 8.8% 7.1% 6.0% 3.4% 1.2% -3.7% 1.9% 0.4% 6.0% 9.9% 12.5%Groupresult/netturnover 6.3% 4.8% 4.1% 2.3% 0.9% -2.2% 1.8% 0.5% 3.9% 6.7% 8.3%Groupequity/totalassets 68.5% 63.6% 64.4% 66.7% 71.3% 75.0% 72.3% 75.7% 79.3% 68.6% 70.1%Currentassets/currentliabilities 2.91 2.54 2.69 2.87 3.27 3.65 3.77 4.35 5.13 3.12 3.33

Shares(ineuros) Earningspershare 1.59 1.16 0.70 0.33 0.10 -0.19 0.17 0.04 0.42 0.71 0.64Shareholder’sequitypershare 5.94 5.00 4.27 3.49 3.35 3.32 3.61 3.54 3.81 3.39 2.75Dividendpershare 0.70 0.50 0.30 0.15 0.10 0.00 0.11 0.11 0.11 0.18 0.18Highestprice 26.66 34.94 18.00 9.00 5.60 5.83 5.20 12.40 21.50 41.97 21.78Lowestprice 14.86 16.95 8.65 4.86 2.35 2.35 3.06 3.65 8.00 13.98 16.15Closingpriceat31December 16.35 26.00 18.00 9.00 4.90 3.13 3.95 3.95 9.00 17.24 17.61

Priortotransitiondate(1January2005)thedatahavenotbeenadjustedtoIFRS.

14 Groupfinancialrecord

72 AnnualReport2007

15 BrunelGlobal-addresses

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