Annual General Meeting of Shareholders 2006 10th March 2006

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Annual General Meeting of Shareholders 200610th
March 2006
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Agendapunt 1

• Opening / mededelingen.
• Opening / announcements.

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Proefstemming
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Agendapunt 2

• Verslag van de Raad van Bestuur omtrent de gang
  van zaken van de
• vennootschap en het gevoerde beheer gedurende het
  boekjaar 2005.
• Report by the Board of Management about the
  business of the
• company and the managerial control during the
  financial year 2005.

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Highlights

• Record earnings
• Build on three pillars
• Aerospace
• Food Systems
• Technical Services (focussed on industry)
• 2 divestments in 2006
• Prints
• WorkSphere
• Capital repayment/share buy back
• Investigation Public to Private

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Results 2005

• Revenues increased with 5 to 1,818 mln
• Profit improved to a record of 93 mln
• Maintained strong balance sheet, net cash
  position of 182 mln

x mln 2004 2005 ? ? Revenues 1,729 1,818 89 5.
1 EBITDA 152 173 21 13.8 EBIT 105 129 24 22.9 N
et profit 74 93 19 25.7 Capital
employed 340 365 25 7.4 Net cash 112 182 70 62.5
EPS 2.31 2.92 0.61 26.4
Adjusted for IFRS
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Prints 2005

• 2005 showed continuing pressure on the textile
  market
• Price erosion is bottoming out
• Screens continue to perform at acceptable levels
• Shift of production of analogue textile printing
  machines to Asia
• Restructuring on its way
• Development graphics activities positive
• Restructuring charges 4 mln in Q4

Revenues
-3.4
200.1
207.2
51.2
56.8
EBIT
-51.0
21.0
10.3
3.1
0.0
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Food Systems 2005

• Double digit growth thanks to innovative products
• Major order from Saudi-Arabia in summer
• Acquisition Townsend important step in the field
  of further processing
• Good results over entire product range

Revenues
14.4
171.1
149.6
48.9
45.9
EBIT
55.0
20.3
13.1
5.5
5.8
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Aerospace 2005

• Aerospace Industries
• Agreement Pratt Whitney for JSF engine parts
• Development and management electric systems for
  Multi-Mission Maritime Aircraft (Boeing)
• Wiring and switchboxes 737s from Boeing
• Opening Fokker Engineering Romania
• Agreement Shenyang Aircraft
• Ramping up successful
• Aerospace Services
• Strong performance in Component Maintenance and
  Material Support
• Modification 3 (K)DC-10s
• Service activities back to normal levels
• Release pension fund provision 2.2 mln in Q4
• Recognition from the industry
• Boeing Supplier of the Year
• Paris Airshow 2005 flight Award for
  FUTURE-Programs

Revenues
10.2
551.3
500.3
131.9
172.3
EBIT
39.7
62.3
44.6
15.8
21.5
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Industry Services Specialists 2005

• Revenues Industry Services improved in difficult
  market
• New business group Oil Gas to focus on this
  attractive sector
• Good workload from NAM and Shell Expro
• Specialists shows improved margins
• Announced acquisition of Technical Services
  department of Akzo Nobel Base Chemicals
• Acquisition of Koster in January 06

mln
Revenues
FY 05
23.8
684.0
552.7
EBIT
8.9
37.9
34.8
Not adjusted for elimination
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Worksphere 2005

• Increased revenues despite market characterized
  by fierce competition
• Program for further structural productivity
  improvement rolled out
• Company ready to realize further margin
  improvements

Revenues
mln
FY 05
6.4
167.8
157.7
EBIT
28.6
5.4
4.2
Not adjusted for elimination
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Agendapunt 3

• Corporate Governance.

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Agendapunt 4

• Vaststelling jaarrekening 2005 van Stork N.V.,
  zoals deze door de
• Raad van Bestuur is opgemaakt.
• Approval of the financial statements of Stork
  N.V. for 2005, as
• prepared by the Board of Management.

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Agendapunt 5

• Reserverings- en dividendbeleid.
• Reservation and dividend policy.

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Agendapunt 6

• Vaststelling van het dividend 2005 en van het
  tijdstip waarop het
• dividend betaalbaar zal zijn.
• Determination of the dividend for 2005, and of
  the date on which the
• dividend will be payable.

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Agendapunt 7

• Decharge van de leden van de Raad van Bestuur
  voor hun
• taakuitoefening in het afgelopen boekjaar.
• Discharge of the members of the Board of
  Management for their
• responsibilities in 2005.

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Agendapunt 8

• Decharge van de leden van de Raad van
  Commissarissen voor hun
• taakuitoefening in het afgelopen boekjaar.
• Discharge of the members of the Supervisory Board
  for their
• responsibilities in 2005.

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Agendapunt 9

• Bespreking strategie Stork.
• Discussion of the strategy of Stork.

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Achievements
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3 years of improving operational performance has
paid off

• Profitability significantly improved from -42
  mln in 2002 to 93 mln in 2005
• Underlying autonomous growth 8 (2004-2005)
• Significantly improved financial strength from a
  net debt of 53 mln in 2002 to a net cash
  position of 182 mln in 2005
• Increased dividend from 0.45 to 1.10 per
  share
• We clearly exceeded our WACC economic profit
  improved from 144 mln negative end 2002 to 18
  mln positive end 2005

Net earnings ( mln) and dividend/share ()
Revenues and EBIT ( mln)

proposal
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Improvement recognised by the market

• Share price increased from 4.40 early 2003 to
  47.21 on 8 March 2006, significantly
  outperforming the AMX
• Average trading volumes almost doubled in 2005
  compared to 2003

47.21
AMX
09-03-2004
08-03-2006
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Driving value

• Building on three divisions
• Food Systems
• Aerospace
• Technical Services (focussed on industry)
• Divesting in 2006
• Prints
• WorkSphere
• Capital repayment/share buy back
• Investigating Public to Private

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Driving valueKey features of the Stork company

• Industrial group with strong brand name within
  the industry
• Triple A customer base
• Long standing record of innovation
• Technology drive
• Operational excellence
• Sustained financial performance
• Coupled with a human resource pool which excels
  in managing mature businesses

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Divestments WorkSphere

• Worksphere is focussed on the service
  maintenance of technical installations in
  buildings and not on the industrial market which
  is the core of Stork
• Consolidation in value chain requires growth in
  non core direction (construction industry or
  facility management), other players could realize
  synergies that Stork cannot
• WorkSphere has reorganised its operations to
  focus on the more stable maintenance market in
  which it now holds a leading position. This
  already has attracted attention of potential
  buyers
• Third parties better positioned to unlock the
  potential for growth

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Divestments Prints

• In Q3 we embarked on a reorganization to bring
  Prints in the best position going forward
• Primary focus in textiles on sustained market
  leadership in screens
• Strategy to expand graphics successful, but
  significant steps are required to accelerate
  growth
• Unique technology can be applied in other markets
• Positive effects restructuring will start to
  materialize in the course of 06
• Third parties better positioned to unlock the
  potential for growth

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Building on three divisions
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Build on three divisionsblueprint

• AerospaceSolid cash flow from services
  business. Significant order potential Aerospace
  Industries basis for further growth
• Food ProcessingLeading market position in
  Poultry and the acquisition of Townsend opening
  the door to new markets. Strong autonomous
  growth profile.
• Technical ServicesIn-depth knowledge of
  integrated maintenance concepts.Long-term
  contracts with first-class customers.Strong
  growth oil, gas and power markets

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Aerospace
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Aerospace Industrieskey value drivers

• High growth driven by
• Outsourcing of design and build activities
• Focus on efficiency of aircraft. The use of
  composites and laminates and development of new
  aluminium alloys
• Well balanced and promising portfolio (JSF,
  Airbus Boeing, business jets, NH90- helicopters
  etc.)
• Partner of choice for almost all leading aircraft
  manufacturers
• Optimizing supply chain and lean manufacturing
• New programs will at the end of the decade turn
  into significant free cash flow generators

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Aerospace Industrieskey competences

• A technology leader in complex structural parts
  made of innovative materials with innovative
  production technology (Glare)
• Top three position in wiring systems with unique
  design software

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Aerospace Serviceskey value drivers

• Market growth driven by
• Outsourcing of integrated MRO (maintenance,
  repair, overhaul services)
• 3rd parties gaining ground on OEMs
• Market leader for the long term support of Fokker
  aircraft, good potential for increasing role for
  other aircraft types
• Strong cash flow

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Aerospace Serviceskey competences

• As type certificate holder in depth knowledge of
  aircraft design and aircraft operations
• Offers continued competitive operation for
  fleet owners
• Knowledge of specific logistics concept for fleet
  support
• Aircraft conversions/modifications

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Aerospace Group

• Market growth 3 - 5
• ROS benchmark 10 - 12

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Food Systems
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Food Systemskey value drivers

• High growth in convenience food 5-7, stable
  growth in poultry processing 2-4
• Market leader in primary secondary poultry
  processing
• Ambition accelerated growth in convenience food
• 30 of revenue comes from products introduced in
  the last 3 years
• Townsend provides additional technology in new
  market segments
• Global design and production infrastructure

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Food Systemskey competences

• In-depth understanding of food processing and
  customer value chain
• Strong engineering and manufacturing skills
  leading to innovative product range

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Food Systems

• 1st/2nd processing convenience
• Market growth 2 - 4 5 - 7
• ROS benchmark 10 - 12

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Technical Services
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Industry Services Specialistskey value drivers

• Growth general maintenance 1-2, maintenance
  management exceeds 10
• Growing Oil Gas market with
• Increasing need for maintenance at aging (North
  Sea) installations and new investments in Middle
  East and Middle Americas
• Increased outsourcing due to the changing role of
  oil majors and entrance of independent oil
  companies
• Selective growth internationally, built on
  National Champion position
• Specialists niche markets with room for
  consolidation

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Industry Services Specialistskey competences

• In-depth knowledge of integrated maintenance
  management concepts for industrial customers
• Strong customer and site-intimacy
• Performance based integrated service contracts
  with first class customers
• Unique asset improvement consultancy within Stork
  Maintenance Management
• Unique knowledge of process management for
  progress and budget monitoring
• Joint responsibility with customer for optimizing
  total cost of ownership
• Specialist knowledge of equipment, components and
  technology

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Industry Services Specialists

• Market growth 2 - 4
• ROS benchmark 5.5 7.5

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Investigating Public to Private
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Investigating Public to PrivateBackground

• Strategy well received
• Already discussed this option from time to time
• Also considered a break up would destroy value
• Mixture of long and short term shareholders
  increasingly geared towards shareholders who have
  a shorter time horizon than our business strategy
  requires
• After evaluating internally and in receiving
  feedback the decision has been made to carry out
  investigation
• Operating as a private company could possibly
  allow best environment to implement the strategy

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Investigating Public to PrivateNext steps will
be

• Contact with a wide range of interested parties
  and seek response against a range of pre-selected
  criteria including value, strategic intent for
  the business and ability to execute the
  transaction.
• Well be open to any contact from interested
  parties
• Well provide sufficient information for selected
  parties to fully understand the value of our
  businesses

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Investigating Public to Privateto ensure
transparency and an unbiased outcome

• Supervisory board will be involved to ensure a
  proper process and to ensure that shareholder
  value is maximized within the context of all
  shareholders and that the interests of the
  various stakeholders are safeguarded in a
  balanced manner
• Shareholders will be kept informed as much as
  possible, ensuring all disclosure requirements
  are met
• Supervisory board will request a fairness opinion

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Investigating Public to PrivateTiming

• Preparations have already commenced, a number of
  advisors already appointed
• Speed is important to minimise business
  disruption but not at the expense of a full and
  thorough process aimed at maximizing value
• Expectation that a minimum of 3- 4 months will be
  required to ensure a thorough process

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Agendapunt 10a

• Kapitaalreductie
• a. terugbetaling op aandelen/aanpassing
• van de statuten.
• Capital reduction
• a. repayment to shareholders/amendment of
• the Articles of Association.

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Adjusting capital structure

• Strong balance sheet with excess cash and
  expected inflow from scheduled divestments
• Right balance between return funds to
  shareholders and financial flexibility to pursue
  acquisitions
• Overall program 300 - 350 mln over 3 years
• Returning funds to shareholders in 2006 will be
  done in two ways
• Capital return 130 mln
• Share buy back 70 mln
• We will not use the authorisation during the
  Public to Private investigation
• Additional share buy back up to 75 mln in 2007
  and 2008 each, unless such funds are required for
  other purposes
• Continuation dividend policy

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Agendapunt 10b

• Kapitaalreductie
• b. machtiging inkoop eigen aandelen.
• Capital reduction
• b. authorisation of share buy back.

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Agendapunt 11

• Benoeming van de heer C.J. van den Driest tot
• lid van de Raad van Commissarissen volgens
• voordracht.
• Appointment of Mr. C.J. van den Driest as
• a member of the Supervisory Board according
• to nomination.

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Agendapunt 12

• (Her)benoeming van de externe accountant.
• (Re)appointment of the external auditor.

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Agendapunt 13a

• Uitgifte aandelen
• a. Bevoegdheid van de Raad van Bestuur voor
• een periode van achttien maanden tot het
• uitgeven van gewone aandelen en preferente
• aandelen A.
• Share issue
• a. Authorisation of the Board of Management
• for a period of 18 months to issue ordinary
• shares and cumulative preference shares A.

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Agendapunt 13b

• Uitgifte aandelen
• b. Bevoegdheid van de Raad van Bestuur voor
• een periode van achttien maanden om bij de
• uitgifte van gewone aandelen het voorkeursrecht
• te beperken of uit te sluiten.
• Share issue
• b. Authorisation of the Board of Management
• for a period of 18 months to restrict or
• exclude the right of preference on the issue
• of ordinary shares.

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Agendapunt 14

• Rondvraag / sluiting.
• Questions / closure.

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