BAM Abbreviated Annual Report 2011 - Siteseeing in the world of ...

2. Optimum exploitation of strength through synergy
There are very limited prospects for further growth in
the current sectors and geographic markets.
Accordingly, the Executive Board wants to create new
opportunities by presenting BAM more expressly as a
provider of full and multidisciplinary solutions – a
full-service provider for the built environment. The new
sector-based organisational structure referred to above
will also promote synergy. Previously initiated
programmes with regard to lean management, virtual
construction and enhanced collaboration have reduced
costs and increased operational excellence.
3. Strengthen financial position
The Group’s current financial position is solid and stable.
Nonetheless, the Executive Board aims to improve the
balance sheet. The priority is to reduce the capital
invested in property, the aim being to reduce the amount
invested in property by a third. In light of the current
difficult market conditions, this will take several years.
The Group’s control of the working capital has greatly
improved over the last few years. The focus now is on
further improvement where possible. On the one hand,
the joint venture with PGGM limits the capital invested in
previously acquired PPP contracts, while, on the other
hand, it offers financial support for further growth.
2.4-kilometres long LNG jetty near Port Moresby,
Papua New Guinea.
BAM International (in joint venture).
4. Invest in new growth tracks
The Executive Board sets great store by the Group’s further
growth and development and has therefore decided to
build on the success of business activities in Switzerland
and Luxembourg by establishing permanent branches in
those countries (BAM Swiss and BAM Luxembourg). In
addition, market growth should be achieved by full-service
and multidisciplinary projects through more intensive
collaboration between BAM companies and active entry
onto markets outside Europe. BAM International is using
all available opportunities within the Group to expand the
organisation and achieve sustainable market positions in
South-East Asia, Australia, Africa and the Middle East.
The targets for 2012 that were set by BAM in 2009 are not
achievable under the given market conditions.
Strengthening the financial position remains a priority.
Royal BAM Group continues to do its utmost to offer its
shareolders a solid profit with an attractive dividend and
an increase in the value of shares in the Group.
11
2011