BAM is a large European construction firm with ten operating companies active in two business lines, Construction and Property and Civil engineering. The company employs 20,000 people in its business lines and public private partnership activities.
The Group’s activities are in five home markets:
the Netherlands, Belgium, the United Kingdom, Ireland and Germany. The Group also delivers projects in Denmark, Luxembourg and Switzerland. In addition, BAM International provides services to clients outside Europe: Africa, the Americas, Asia Pacific, Australia, the Middle East and Antarctica. In BAM home countries BAM International collaborates with local operating companies on specific services and competencies.
Construction and Property
BAM operates non-residential construction activities in all its home markets, as well as in Switzerland and Denmark. In addition, BAM delivers residential construction projects, primarily in the Netherlands and Belgium.
Non-residential property development activities are carried out in the Netherlands, the United Kingdom, Ireland and Belgium. Family homes are developed and built mainly in the Netherlands, where development and construction is provided as a full integrated solution to clients. The business line Construction and Property employs approximately 9,000 professionals.
The civil engineering activities cover all BAM’s home markets, as well as Denmark and Luxembourg. BAM International carries out civil engineering works in niche markets around the world. The business line Civil engineering employs approximately 10,500 professionals.
Public private partnerships
BAM is a well-respected player in the European market for public private partnership (PPP) projects. These projects deliver construction and recurring maintenance revenue for BAM’s business lines, and operates concessions for roads, rail, education, health care and government buildings. BAM PPP employs approximately 100 professionals.
In December BAM announced it will change the top structure of the company in the first quarter of 2019. BAM will establish an Executive Committee in addition to a two-person Executive Board. With the appointment of a COO for each of its two business lines, the Group will create more focus on its customers and markets as well as strategic and operational priorities. By bringing together executives in an Executive Committee, each with a clear responsibility, BAM will be better able to use its economies of scale in line with the One BAM philosophy.
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
Figure 2 is based on the International Integrated Reporting Council’s Integrated Reporting <IR> framework and gives an overview of how BAM creates value. BAM uses valuable resources in its primary process and through its activities the Group creates output that generate value for stakeholders and society. 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.
2 - Value creation model
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 BAM 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 the best company 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 adopting circular business principles and implementing innovative solutions. BAM will work in close collaboration with its supply chain in achieving common goals and addressing global environmental challenges.
Shareholders and financial institutions provide funds that BAM invests in its business lines, as well as in PPP, with a divestment strategy for a part of BAM’s current land bank and property investments. BAM uses free working capital from the (non-)residential construction and civil engineering activities in selected property and PPP projects. These projects contribute to BAM’s target of 2 to 4 per cent range margin.
More details on BAM’s primary process and stakeholders can be found in figure 3.
Building the present, creating the future
It is BAM’s mission to create sustainable environments that enhance people’s lives by enabling the right people to capitalise on state-of- the-art knowledge, resources and digital technologies, providing solutions across the total construction lifecycle for the Group’s clients and generating maximum value for its stakeholders.
It’s BAM’s vision that by 2020 the Group will be recognised as one of Europe’s leading sustainable and innovative construction businesses, with healthy profits and a strong balance sheet, active across the total construction lifecycle in its European home markets and in selected growing economies around the world.
3 - How we create value