Opmaak JV 05 eng.indd

2006 and beyondDHV operates based on the concept of‘Local Delivery of Global Solutions’: a localpresence in the most important marketsin order to make the company’s leadingexpertise available exactly where it is requiredby the client. During the year underreview, DHV devoted considerable attentionto rendering the organization moreflexible, to knowledge management andto the efficiency and market-orientation ofthe international network. These aspectswill continue to be developed in the yearsto come.Opportunities for DHV are to be seen inmany fields of endeavor and in many countries.There is a demonstrable demand forthe Group’s expertise and for the innovationswhich DHV develops. Today morethan ever before, the challenge facing DHVis to convert these opportunities into actualprojects.In practice, DHV wishes to achieve:• Growth of 10% in line with the long-termfinancial objectives: average growth inturnover of approximately 10% (half ofwhich will be achieved through acquisitions),with an operating margin of 7%on added value. It will do so by means of:- better budget discipline- limitation of project losses- further implementation of the ‘onecompanyconcept’ (to include outsourcingof ICT activities and furtherdevelopment of shared services)- greater emphasis on client-orientationand internal efficiency.• The process of internationalization willbe continued in line with the targetfor 2009 – deriving 60% of turnover incountries other than the Netherlands– through undertaking a greater numberof activities in fewer countries.• Reinforcing the innovative strength ofthe company, by encouraging developmentsand making manpower and resourcesavailable.Economic outlookThe developments of the coming yearswill be determined by a number of globaltrends. The most significant will be a shiftin the major centers of economic activity.Growth in Asia, and to a lesser extent inthe Middle East and Africa, is important.Energy, environment and safety are importantthemes. Both in the west and inthe emerging economies, there is likely tobe increasing demand for new solutionsin the sphere of public services. There willbe a substantially greater demand forraw materials and for water, as well as fornew methods and systems for production,transport and distribution.Increasingly, knowledge-intensive companiessuch as DHV will be forced to seekstaff on the international labor markets,where the supply of suitably qualifiedpeople is greatest.In the shorter term, there will be substantialgrowth in international investments.The European economy is now showingsigns of recovery, while growth in NorthAmerica remains constant. Investments inAsia are still at a very high level, while Africaseems to offer good opportunities. TheMiddle East is showing significant activity.Market growth in Central Europe is expectedto continue. However, the EuropeanUnion currently shows a lack of clear direction,while the Netherlands itself is stillsomewhat cautious.DHV is partly dependent on governmentinvestment. In the Netherlands, the investmentlevel remains relatively low, althoughnew possibilities may be seen to be emerging.Private sector investment levels areincreasing, and DHV will continue to followthe large multinational clients.Alongside opportunities come risks. Theseare largely due to the speed of the changesall around us and the level of alertnessthat is required to address such changeseffectively. Economy recovery in the Westremains fragile; stock exchanges are stillsomewhat volatile and markets are heavilydependent on local events.Objectives for 2006: to increase flexibilityand awareness. There will be greater focuson the synergy of global expertise and localpresence.MarketsThere is growing international demand forservices in the wide arena which includesroads and highways, railways, harboursand airports: from high-level consultancyto construction supervision. The introductionof new and extremely large airlinerswill produce additional demand for airportmodernization projects.DHV has now established a very respectableposition in this market. Its expertiseis ranked very highly, being among the topfive companies worldwide in the field of IntelligentTransport Systems, and among thetop ten in harbor development. Its positionin highways and railways falls just outsidethe top ten. Efforts will be made to improvethese positions further in the coming years.In many parts of the world, safety and securityrequirements have been made morestringent, whereupon there is also increasingdemand for services in this field. Thedevelopment of control systems for stationsand airports will continue unabated.Almost everywhere, there is growing dependencyon water. The demand for puredrinking water and purified waste water isincreasing. Reliable and manageable solutionsare sought, particularly in the largeurban areas. DHV offers internationallyrecognized expertise in various water treatmenttechnologies, such as Carrousel®,MBR and Nereda TM . DHV is among the topten companies worldwide in the field ofwater treatment, and among the top fivein drinking water supply. The objective is toconsolidate and build upon these excellentpositions.Demand is also growing in the area of assetmanagement and park management.Here too, DHV intends to establish a strongposition.The natural disasters of recent times, inboth Asia and the United States, causedunimaginable devastation. Reconstructionwork, as well as the development ofmeasures to preclude such dramatic consequencesin future, make significant demandson the expertise of the engineeringindustry as a whole, and in some cases onthat of DHV itself. There are, for example,20 Executive Board Report