Business model


BAM is a large European construction firm with operating companies active in two business lines, Construction and Property and Civil engineering, as well as in public-private partnerships. The Company employs approximately 17,966 people.

BAM’s activities are in five European home markets: the Netherlands, Belgium, the United Kingdom, Ireland and Germany. The Company also has a presence in Denmark, Luxembourg and Switzerland.

In July 2020, BAM announced it would wind down the operating company BAM International, active outside the Company’s European markets, given the lack of a positive outlook.

Construction and Property
BAM carries out non-residential construction activities in all its home markets and also in Switzerland and Denmark. In addition, BAM delivers residential construction projects (apartment buildings) primarily in the Netherlands and Belgium. Family homes are developed and built mainly in the Netherlands, where development and construction is provided as a fully integrated solution to clients.

Non-residential property development activities are carried out in the Netherlands, the United Kingdom, Ireland and Belgium. The business line Construction and Property employs approximately 7,765 people.

Civil engineering
The civil engineering activities cover all BAM’s home markets and also Denmark and Luxembourg. The business line Civil engineering employs approximately 9,806 people.

Public-private partnerships
BAM is a well-respected player in the European market for public-private partnership (PPP) projects. BAM PPP delivers construction and recurring maintenance revenue for both business lines, and operates concessions for roads, rail, education, health care and government buildings. BAM PPP employs approximately 100 people. On 23 December 2020 it was announced that PGGM Infrastructure Fund had acquired a 50 per cent interest in BAM PPP and that from 1 January 2021 BAM PPP would operate as a joint venture between Royal BAM Group and PGGM Infrastructure Fund.

BAM’s top structure
The Company’s top structure consists of two governing bodies: the Executive Committee and the two-person Executive Board. The Executive Committee consists of the Executive Board members, the chief operating officers of both business lines, the chief business excellence officer and the chief human resources officer. The Executive Committee decides – with final responsibility lying with the Executive Board – on strategic issues and policies, based on input from the operating companies and staff departments. Each member has a clearly defined focus and responsibility.

The financial, social and environmental performance of BAM’s business lines are described in chapter 3.

1 - Organisational structure

What we do and how we create value

- Value creation model

BAM’s value creation model is based on the International Integrated Reporting Council’s Integrated Reporting framework and gives an overview of how BAM creates value.

The cycle of integrated thinking and reporting supports financial and sustainability results. BAM discloses a combination of quantitative and qualitative information to describe how value is created.

Creating social value

Planet Creating environmental value

Profit Creating
financial value

BAM’s approach to sustainability delivers benefits to clients and communities in which the Group works. BAM aims to create a safe and more sustainable built environment. Within communities, the Company wants to positively enhance the lives of more than one million people by 2020 by creating skills and learning opportunities and through voluntary and charitable work. BAM continues to target talent to maintain its position as one of the best companies to work for.

BAM wants to mitigate the impact of its operations on climate change and resource consumption. The Company is working towards having a net positive impact by reducing carbon emissions and waste intensity, as well as by adopting circular business principles and implementing innovative solutions. BAM works in close collaboration with its supply chain in achieving common goals and addressing global environmental challenges (see paragraph 3.2).

Shareholders and financial institutions provide funds that BAM invests in its two business lines as well as in PPP, with a divestment strategy for a part of BAM’s current land bank and property investments.

For BAM’s social performance, see
paragraph 3.2.

For BAM’s environmental performance, see
paragraph 3.3.

For BAM’s financial performance, see paragraph 3.1.

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