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

Foreword
Royal BAM Group nv hereby presents the Annual Report for the financial year 2011 with a net
result of €126.0 million and a revenue of €7.9 billion. Although the European construction and
property markets were under great pressure for the third year in a row (and it is not clear when
volumes and margins may start to recover), BAM can look back on a successful 2011. BAM’s
operating companies are obviously not immune to decreasing volumes, stiff competition and
a sharp drop in prices, but thanks in large part to the Group’s earlier strategic decisions
– including a focus on excellence in project execution, risk management and sustainable
operations – BAM was able to deliver solid and stable performances given the conditions on
the market.
The currently limited prospects for further growth for
the Group on most of BAM’s markets were the main
reason why the Executive Board took the decision in 2011
to revise the Group’s strategic agenda for 2010-2012. The
result is an enhanced focus on core business, optimum
deployment of the Group’s strengths through increased
synergy, a reinforced financial position and the
development of new growth opportunities. This revised
agenda represents a solid basis for the new strategic
agenda 2013-2015 which will be presented towards the
end of 2012. As part of the process of updating the
Group’s strategy, BAM has gained access to new growth
opportunities by establishing permanent branches in
Switzerland and Luxembourg, organising closer
cooperation between companies in the BAM Group and
reinforcing BAM International’s positions in growth
markets outside Europe. More information about the
Group’s strategic choices can be found in this Annual
Report, starting on page 8.
This report is structured differently than those of
previous years, as the information in this Annual Report
2011 is presented according to the Group’s new
organisational breakdown into four sectors: construction
and mechanical and technical services, civil engineering,
property and public-private partnerships (PPP). This
simplified structure improves opportunities to increase
focus and achieve optimum synergy.
Everyone in the BAM Group continues to work with
undiminished enthusiasm and commitment to further
improve the Group’s sustainability performance. BAM’s
ambitions and the results achieved in this area are briefly
discussed in this Annual Report on page 64. More details
can be found in a separate sustainability report, which
we highly recommend. Across the board, BAM is fully
engaged in corporate social responsibility, especially
with regard to the key priorities of safety, reduction of
CO emissions and waste.
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BAM started the 2012 financial year with an order book
standing at €10.4 billion (year-end 2011: €12.1 billion).
In addition, the Group has approximately €2.9 billion
worth of contracts in the order book for post-2016
(mainly maintenance work under PPP contracts and
concession income). This healthy amount of work in the
order book demonstrates the customers’ appreciation
of BAM’s constructive role as a partner in the
implementation of often large-scale and complex
development and construction projects. This situation
is an excellent starting point from which to expand on
BAM Group’s good reputation and its leading position
in the international construction and property markets in
the interests of all stakeholders.
Bunnik, Netherlands, 7 March 2012
N.J. de Vries
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2011