Strategy 2021-2023

Strategic plan: Building a sustainable tomorrow

Early 2021, BAM launched the strategy Building a sustainable tomorrow. This strategy is mainly focused on increased profitability and continued de-risking the company by focusing on markets and projects where BAM has proven competitive strengths – ensuring a solid platform for future growth.

The strategic plan 2021-2023 serves BAM’s corporate purpose to provide clients with best-in-industry capabilities, contribute to the global movement toward sustainability, provide employees a safe and rewarding work environment and generate attractive returns for shareholders. See figure 3 for BAM’s 2023 financial targets and commitment to sustainability and safety. 

Strategy highlights: 
Restructure portfolio to focus on markets, projects and partnerships where BAM can leverage its proven competitive strengths:

  • Platform for growth in the Netherlands, United Kingdom and Ireland;
  • Manage businesses in Germany and Belgium for value, supported by operational improvements and divestment;
  • Expand partnerships for creating assets with fixed long-term income by growing the current Private Public Partnerships (PPP) business and establishing new partnerships to develop residential properties;
  • Leverage expertise in sustainability, digitalisation, modularisation and industrialised construction;
  • Continue de-risking the project portfolio.


Sustainability forms an integral part of BAM’s 2023 corporate strategy to de-risk its portfolio and move towards product leadership and lifecycle solutions to reach a strong financial base with approximately 5 per cent EBITDA margin and approximately €5.5 billion revenue by 2023. 

Mid-2021, BAM started expanding the corporate strategy by strengthening the sustainability focus of the company. Closely linked to the Sustainable Development Goals (SDGs), BAM identified critical People and Planet issues that are shaping the construction industry. BAM will be focusing on themes where specific solutions offer most value to tackle key sustainability issues like global warming and resource depletion. 

BAM’s sustainability focus supports clients accelerating their sustainability objectives with new and better sustainability solutions and strengthen the Company’s industry-leading position to build a sustainable tomorrow for People and Planet. Sustainability focuses on two strategic pillars:

  • Achieving process and product leadership is the key to offer clients scalable solutions that help them realise their sustainability goals;
  • Focusing on lifecycle solutions allows BAM to control the lifecycle of materials and carbon across the lifespan of assets, instrumental to lower the Company’s footprint and that of the clients.

BAM will further commit to impactful long-term ambitions and clear short-term goals. Tangible progress on BAM’s sustainability strategy and performance will be released in the second quarter of 2022.

Focus on profitable growth platform

BAM is focusing on growing its business in the Netherlands, United Kingdom and Ireland. These are the markets where BAM has the largest scale. In these countries, BAM holds strong positions in both the Construction and Property and the Civil engineering business lines and a strong position in Public Private Partnerships (PPP).

In these markets, BAM will focus its portfolio, strive for business excellence and product leadership, and grow life-cycle solutions, providing clients with innovative and sustainable design, development, construction and facilities management solutions that can be integrated. BAM will prioritise projects where such innovation is replicable, in order to reduce risk and increase profitability. Examples include:

  • Offering energy/climate-neutral residential concepts for new-build schemes and refurbishment programmes for social housing cooperatives;
  • Rolling out sustainable lifecycle energy solutions for offices and homes;
  • Focusing on two-stage tenders and framework agreements / maintenance contracts in the Civil engineering business line.

Continue de-risking

The strategic plan specifically focuses on improving BAM’s risk/ reward profile. BAM moves its project portfolio away from large unrewarded risk by limiting the size of single-stage, lump-sum tenders to €150 million. For example, in 2021 BAM has withdrawn from tenders for the extension of the A27 near Utrecht and the construction of a new station on Amsterdam’s Zuidas, both projects with a projected unbalanced risk/reward profile for BAM. BAM is also cautious in tenders due to increasing costs of raw materials. BAM’s activities in Germany and Belgium, markets where scale, risks and competitive dynamics have been more challenging, are managed for value through further operational improvement actions. In 2021, BAM made progress with the divestment programme (see page 13, acquisitions and divestments). BAM is selective in its order intake in Germany and Belgium while maintaining optimal services to clients, efficiency of operations and commitment to employee safety and development. 

3 - Strategy 2021-2023

Progress made in 2021

Platform for growth:

  • BAM completed restructuring programme early 2021;
  • BAM implements plans shifting away from two business lines by moving towards a regional business orientation with two divisions; 
  • Company-wide transformation programme started based on co-creation to further shape BAM’s strategy.

Manage for value - clear progress on divestments:

  • BAM Swiss (completed);
  • BAM Facilities Services (Germany; completed);
  • BAM Deutschland (completed);
  • Transition of BAM International’s Indonesian subsidiary to management team (completed);
  • BAM Galère (completed early 2022);
  • Quarry Großtagebau Kamsdorf (completed).
  • Announced divestment BAM Contractors in Belgium.

Furthermore, wind-down BAM International nearing completion.

Market choices:

  • Healthy pipeline of opportunities, mainly driven by public stimulus programmes in the United Kingdom and Ireland and high demand for sustainable solutions and for new homes in the Netherlands.

Avoid disproportionate risk in project portfolio:

  • BAM stopped multiple large single-stage lump-sum tenders with unrewarded risk profile.

Towards process and product leadership:

  • BAM is focusing on process and product leadership by investing in scalable-off site manufacturing through the centralised initiative ‘building 2.0’.

Lifecycle solutions and selective investments:

  • In the Netherlands, BAM further strengthened the portfolio towards sustainability and industrialised construction with the acquisition of an off-site production scalable facility for timber modular houses. 

Safety and sustainability

  • While BAM improved its safety performance resulting in an IF BAM of 4,5 (5,3 in 2020) in 2021, this is still behind the target of < 3.5.
  • In 2021, BAM received an A and achieved leadership status on CDPs climate change benchmark for the third consecutive year.
  • BAM reduced its CO2 intensity in 2021 by 44 per cent compared to 2015 and is well on track in reaching its target of 50 per cent by 2030. 
  • BAM is increasingly offering sustainable solutions and wins tenders with a clear client demand. BAM aims to increase the share of sustainable projects in its portfolio. 

Accelerate oppurtunities for future growth

BAM’s strategic plan is aimed at the significant and expanding part of the construction industry being driven by clients’ growing emphasis on sustainability. Clients are increasingly demanding in the area of resource conservation, energy efficiency and carbon reduction during the design, construction and operational phases of their projects. Another major market trend is the substantial shortage of housing. These are areas where BAM has strong experience and expertise and is investing to expand its capabilities.

Acquisitions and divestments

During the financial year 2021, Royal BAM group took several major steps forward in delivering the strategy Building a sustainable tomorrow. BAM is focusing on growth markets in the Netherlands, United Kingdom and Ireland, where it has scale and competitive advantage. In other markets BAM is managing subsidiaries for value and potential divestment.

On 4 March 2021, Royal BAM Group (through its subsidiary BAM Bouw en Vastgoed Specials) announced the acquisition of all shares of Houtindustrie Stam & Landman bv (HSL) and Gevelelementen Noord-Holland bv (GNH) from the previous owners. 

HSL and GNH are leading producers of complete, prefabricated wooden facade elements. Located in Heerhugowaard, the Netherlands, the combined businesses employ approximately one hundred employees, with annual turnover over €20 million.

HSL was founded in 1983 as a specialist producer of wooden window frames and doors and established Gevelelementen Noord-Holland in the mid-1990s to produce facade elements for housing projects. Both businesses have been a strategic partner of BAM’s Dutch residential division BAM Wonen for 25 years. In 2018, BAM and HSL/GNH jointly invested in an innovative bricklaying robot system to clad prefabricated facade elements with brick slips for renovation projects.

On 30 March 2021, Royal BAM Group reached agreement to sell the shares of BAM Swiss AG (a subsidiary of BAM Deutschland AG) to Implenia AG. The transaction was closed in May. BAM Swiss was established in 2011. The company employed approximately 45 people, with annual revenues of approximately €45 million. 

On 1 April 2021, STRABAG Property and Facility Services GmbH acquired as part of an asset deal the business operations of BAM Facility Services GmbH, based in Hallbergmoos near Munich. BAM Facility Services was founded in 2007, has a revenue of around € 4 million and 40 employees. The company’s range of services includes technical and infrastructural services. These include the commissioning, maintenance and repair of technical building systems and systems for uninterruptible power supply (UPS) for commercial, infrastructure and residential properties. 

BAM International sold its subsidiary PT BAM Decorient Indonesia to the management on 4 May 2021. The company – which will continue its activities as PT Decorient Partaya Indonesia – was established in 1970 and is based in Jakarta. Over the past 50 years, Decorient Indonesia has successfully completed a wide range of building and civil engineering projects. The transaction followed BAM’s earlier decision to wind down the activities of BAM International, operating outside Europe.

On 9 September 2021, Royal BAM Group nv reached agreement to sell the shares of its German operating company BAM Deutschland (including subsidiaries BAM Immobilien-Dienstleistungen and BAM Sports) to Zech Group SE and Gustav Zech Foundation. The transaction was closed in mid-October. BAM Deutschland had annual revenues of approximately €500 million and 750 employees delivering projects including hospitals, offices, universities, prisons, residential buildings and sport stadiums. 

On 2 December 2021, Royal BAM Group reached agreement to sell the shares of its operating company BAM Galère (including its subsidiary BAM Lux and BAM Galère’s plant and equipment, managed by BAM Mat) to the Belgian construction company Thomas & Piron Group. The transaction is completed succesfully early 2022.  BAM Galère constructs buildings and infrastructure projects for both the public and private sectors. The company is active in Wallonia, Brussels and – via subsidiary BAM Lux – in the Grand Duchy of Luxembourg, has annual revenues of approximately €200 million and 650 employees delivering construction and civil engineering projects. 

On 15 December 2021, Royal BAM Group reached agreement to sell the quarry Großtagebau Kamsdorf (a subsidiary of Wayss & Freytag Ingenieurbau AG) to Remex GmbH. Remex is a subsidiary of the German recycling, industrial services and water management company Remondis. Großtagebau Kamsdof has annual revenues of approximately €4 million and employs approximately twenty people. 

On 15 February 2022, Royal BAM Group announced the divestment of BAM Contractors in Belgium.


BAM expects the economies in its home countries to rebound strongly after global events like the Covid crisis, unavailability of supplies as well as inflationary pressure. The construction industry will be an important sector for public stimulus programs and the need for affordable housing, repurposed building objects and assets with an overall lower footprint is expected to drive client demand. BAM is well positioned to utilise these opportunities and differentiate itself in the market.



Geen naam gevonden

Geen naam gevonden