Message from the CEO
'Strong delivery on the first year of our strategic plan Building a sustainable tomorrow’
For the full-year 2021, Royal BAM Group nv reports an adjusted EBITDA of €278.4 million (2020: €200.8 million) at a margin of 3.8 per cent (2020: 2.9 per cent). The net result of €18.1 million (2020: €122.2 million negative) was held back by non-cash tax and other impairments totaling €82 million, due to changes in Dutch and UK tax laws and the effect of divestments. Our liquidity position remains strong and the capital ratio improved. The order book of €13.2 billion (2020: €13.8 billion) remains at a high level, supported by demand in BAM’s Platform for growth markets.
I’m pleased to report that BAM is making good progress with its new strategy, with continued focus on portfolio restructuring, de-risking and creating a sustainable platform for future growth. Our Group improved its operational, financial and safety performance and strong delivery on the first year of our strategic plan ‘Building a sustainable tomorrow’.
All our businesses improved their performance, except Dutch civil engineering where the large contracts division continued to underperform. Our other activities in the Netherlands, United Kingdom and Ireland performed well, especially our Dutch residential activities which delivered a substantial contribution supported by high demand for new homes. Although we repaid the unsecured convertible bond our capital ratio improved. The ratio is still below our strategic target and therefore no dividend is recommended for 2021.
We are one year into our three-year strategic plan to create a more predictable, profitable and sustainable company. We have made good progress with de-risking of the Group. We divested several business units including BAM Deutschland and BAM Galère in Belgium, with combined revenues of approximately €600 million. In addition, earlier this month we announced the divestment of BAM Contractors in Belgium. We are nearing completion of the wind-down of BAM International.
At the same time, we have increased our emphasis on modern and sustainable building methods and invested in industrialised and modular construction capacity. We implemented a new operating model from 1 January, which will drive further operational excellence, knowledge sharing and development of life-cycle solutions.
In 2021, we continued to strive for the best possible health and safety standards, and to support our employees, partners and communities. I thank all our people for their enthusiasm and determination to push ahead with organisational improvements while delivering great projects for our clients through the stressful times of the Covid-19 pandemic.
For the third consecutive year, BAM has been commended for its climate action, achieving a place on CDP’s Climate Change A list. This is one of the key objectives of our strategic plan 2021-2023, ’Building a sustainable tomorrow’. It is a clear illustration of BAM’s ambitious carbon reduction targets and of the progress we made so far. We have delivered a strong year-on-year reduction in our carbon footprint, driven by initiatives, such as electric transport, purchasing green electricity and electrification of construction sites and equipment. We consider it as a recognition for the transparency of our reporting, including insight into climate risks and opportunities for BAM.
Our order book is supported by good demand for infrastructure improvement, housing and sustainable buildings. At the same time, we continue to face industry-wide pressure in some parts of our supply chain, with added uncertainty regarding energy costs, and high competition to attract and retain skilled employees. Discussions with some our clients regarding the timing and settlement of some substantial claims are ongoing.
Against this background, we are on track to deliver our strategic targets for 2023 and we expect a further improvement of our adjusted EBITDA margin in 2022.
Finally, also on behalf of the Executive Committee, I would like to thank all our stakeholders for their confidence in BAM. I would like to especially thank our employees for their hard work and commitment to serve our clients.
Bunnik, the Netherlands, 23 February 2022
CEO Royal BAM Group nv
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