Difference between revisions of "BAM"

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'''Royal BAM Group''', stylized as '''BAM''', designs, builds and maintains buildings, homes and infrastructure for public- and private-sector clients.<ref>https://www.bam.com/en/about-bam</ref> Its history goes back to 1869, although the current name derives from 1927.<ref>https://www.bam.com/en/about-bam/history</ref> Headquartered in the Netherlands, BAM has divisions in the Netherlands, the United Kingdom and Ireland, as well as Belgium and Germany. It has about 15,000 employees and annual revenues of approximately €7 billion.<ref>https://www.bam.com/en/about-bam</ref> Net result was 18,1 million <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 4</ref> Due to deferred taxes, BAM’s effective tax rate was 74 percent. Without deferred taxes the effective tax rate would have been 23 percent. <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 25</ref> Some of BAM’s highlights in 2021 were the completion of Zeesluis IJmuiden en de Zalmhavens (Rotterdam). <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 28</ref> Balance sheet value in 2021 was a little over 2 billion euro. <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 170</ref> Shares of BAM Group are listed on Euronext Amsterdam. <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 199</ref>
'''Royal BAM Group''', stylized as '''BAM''', designs, builds and maintains buildings, homes and infrastructure for public- and private-sector clients.<ref>https://www.bam.com/en/about-bam</ref> Its history goes back to 1869, although the current name derives from 1927.<ref>https://www.bam.com/en/about-bam/history</ref> Headquartered in the Netherlands, BAM has divisions in the Netherlands, the United Kingdom and Ireland, as well as Belgium and Germany. It has about 15,000 employees and annual revenues of approximately €7 billion.<ref>https://www.bam.com/en/about-bam</ref> Net result was 18.1 million <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 4</ref> Due to deferred taxes, BAM’s effective tax rate was 74 percent. Without deferred taxes the effective tax rate would have been 23 percent. <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 25</ref> Some of BAM’s highlights in 2021 were the completion of Zeesluis IJmuiden en de Zalmhavens (Rotterdam). <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 28</ref> Balance sheet value in 2021 was a little over 2 billion euro. <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 170</ref> Shares of BAM Group are listed on Euronext Amsterdam. <ref>bam-2021-annual-report-606-1645685232618911579.pdf p. 199</ref>


== Company Structure ==
== Company Structure ==

Revision as of 08:19, 19 April 2022

Royal BAM Group
Bedrijf Logo
Quick Facts
TypePublic
sectorConstruction
Headquarters (Benelux Organization)Bunnik, the Netherlands
Year of Origin1869
Emissions (All Scopes)7.87 megatons of CO2 (2020)
Total RevenueEUR 7.3 billion (2021)
Stock ExchangeEuronext (BAMNB)
Key PeopleRuud Joosten, Henk Rottinghuis
Number of Employees15,739
Subsidiaries
  • Interbuild
  • Kairos
  • Wayss & Freitag Ingenieurbau

Royal BAM Group, stylized as BAM, designs, builds and maintains buildings, homes and infrastructure for public- and private-sector clients.[1] Its history goes back to 1869, although the current name derives from 1927.[2] Headquartered in the Netherlands, BAM has divisions in the Netherlands, the United Kingdom and Ireland, as well as Belgium and Germany. It has about 15,000 employees and annual revenues of approximately €7 billion.[3] Net result was 18.1 million [4] Due to deferred taxes, BAM’s effective tax rate was 74 percent. Without deferred taxes the effective tax rate would have been 23 percent. [5] Some of BAM’s highlights in 2021 were the completion of Zeesluis IJmuiden en de Zalmhavens (Rotterdam). [6] Balance sheet value in 2021 was a little over 2 billion euro. [7] Shares of BAM Group are listed on Euronext Amsterdam. [8]

Company Structure

BAM is a large European construction firm with operating companies active in two business lines, Construction & Property and Civil engineering, as well as in public-private partnerships. BAM is active in the Netherlands, UK, Ireland, Belgium, Germany and Denmark [9] BAM's leadership structure is a two-tier structure, where the day-to-day management is executed by a executive board and an executive committee and overseen by a supervisory board. In the Netherlands, most of BAM's activities take place in BAM Infra or BAM Bouw en Techniek. Next to those there is the smaller operations in BAM Residential en BAM Specials. [10]

Most shares of BAM group are hold by Dutch shareholders. Currently, no shareholders hold more than 3 percent of all outstanding shares. [11]

Board of Directors

Executive Board 2021 [12]
Name Function Remuneration x1000 EUR
Ruud Joosten CEO 1691 EUR
Frans den Houter CFO 1287 EUR

Executive Committee

The Executive Committee consists of the Executive Board and two Chief Operating Officers (one for the Netherlands division and one for the United Kingdom and Ireland division). 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 functions. Their remuneration is not disclosed.[13]

Management Board
Name Function
Joost Nelis Chief operating officer (NL)
John Wilkinson Chief operating officer (UK & Ireland)

Supervisory Board

Supervisory Board [14]
Name Function Remuneration x1000 EUR
Henk Rottinghuis Chairman 102 EUR
Gosse Boon Vice-chair 67 EUR
Bob Elfring Member 62 EUR
Denise Koopmans Member 65 EUR
Paul Sheffield Member 59 EUR
Nina Skorupska Member 42 EUR

Accountant

The external accountant of BAM Groep is Ernst & Young Accountants LLP [15]

Main Activities

BAM's companies are active in Business lines Construction and Property, Civil Engineering and Public-Private Partnerships (PPP). Construction and Property is all about building. This includes residential, non-residential, technical installations, accomodation and design. Civil Engineering encompasses all larger projects, like infrastructural works, civil architecture and industrial construction. BAM also carries out international civil and marine engineering works. [16]

Public-Private Partnerships are carried out by Invesis. This is a global investor and developer in infrastructural projects. Invesis manages all aspects of an investment from development and financing through to design, construction, maintenance, operations, all the way through to hand back. It is jointly owned by Royal BAM Group and pension fund manager and global investor, PGGM. [17]

Government

BAM has completed numerous projects for the Dutch Government. Notable are the building of the Dutch Hoge Raad, the renovation of the Afsluitdijk, expansion of Maasvlakte 2 and the construction of Zeesluis IJmuiden. [18] However, in the recent decade, the risk to profit ratio has changed drastically, making BAM hesitant to take on new projects of a similar scale. The construction of Zeesluis IJmuiden came with unexpected costs for BAM of nearly 100 million, putting great pressure on profit margins. [19]

BAM received royal status during its 125th anniversary in 1994. [20] BAM has not received NOW-support during corona-times. [21]

Paris Agreement untill Today

BAM states the following CO2 reduction targets in its 2021 Annual Report: Reduce Scope 1 and Scope 2 CO2 intensity by 50 per cent compared to 2015; Reduce Scope 3 CO2 emissions by 20 per cent compared to 2017 (the first year BAM assessed its entire Scope 3 emissions).[22]

Financial Results since 2015

No dividend is proposed over 2021. [23] Also, no dividend has been paid over 2020 [24]

Financial situation
Year Revenue Profit Dividend
2015 [25] 7.4 billion EUR 10.2 million EUR 5 million EUR [26]
2016 [27] 7 billion EUR 48.6 million EUR 24.3 million EUR [28]
2017 [29] 6.6 billion EUR 12.5 million EUR 27.3 million EUR [30]
2018 [31] 7.2 billion EUR 23.8 million EUR 38.3 million EUR [32]
2019 [33] 7.2 billion EUR 11.8 million EUR 5.5 million EUR [34]
2020 [35] 6.8 million EUR 122.2 million EUR (loss) 0 EUR [36]
2021 [37] 7.3 billion EUR 18.1 million EUR 0 EUR [38]

Scandals and controversies

During 2017, a car park under construction by BAM at Eindhoven Airport collapsed.[39] In the aftermath of the disaster, BAM identified a further 25 hazardous constructions at other locations, also including the Ministry of the Interior as well as the Ministry of Justice and Security.[40]

The same year, the construction by BAM of a new pier for large cruise ships on Curaçao destroyed a large portion of coral reef.[41] Investigations indicated that BAM had neglected to follow the rules and regulations for the protection of the coral reef, to which it had consented in the building permit.[42]

In 2020, BAM agreed to a €200-million settlement with the City of Cologne over the ill-fated construction of a new metro line in 2009. Among other things, these construction works caused the collapse of the Historical City Archives, killing two people as well as damaging adjacent buildings.[43]

Current Emissions

It is notable that BAM discloses more information on emissions (especially in scope 3) to the non-profit organization The Carbon Disclosure Project than to its own shareholders through its annual reports.

Total emissions since 2015 ( in megatonnes CO2-eq.)
Year Scope 1 Scope 2 Scope 3 Total
2015 [44], [45], [46] 0.2 0.04 5.16 5.4
2016 [47], [48] 0.17 0.04 8.78 8.99
2017 [49], [50] 0.15 0.03 7.79 7.97
2018 [51], [52] 0.16 0.03 7.69 7.88
2019 [53], [54] 0.14 0.02 8.72 8.88
2020 [55], [56] 0.12 0.03 7.72 7.87
2021 n/a n/a n/a n/a

Climate Policy and Plans

BAM formulated a strategy from 2021-2023, called a sustainable tomorrow. This strategic plan is mainly dedicated to de-risking BAM’s portfolio and building on profitability in market where BAM has competitive strengths. Reducing carbon emissions is not a main point of focus in this strategy. [57]

By 2030 BAM wants to achieve relative emission reduction in scope 1 and 2 of 50 percent compared with 2015 as baseyear. According to own reports, BAM achieved 44 percent intensity reduction so far since 2015. [58] BAM however only very limited reports its scope 3 emissions in its annual report. It does however mention that it discloses its full scope 3 reports tot he Carbon Disclosure Project. [59] BAM wants to reduce scope 3 emissions by 20 percent by 2030 in comparison to base year 2017. This was the first year BAM fully disclosed its scope 3 emissions. [60] BAM plans to release new sustainability targets in 2022. [61]

Due Diligence

According to the environmental targets in its 2021 Annual Report, BAM strives to use 100% sustainable timber. It claims that 99% of its timber was sustainable in 2021, when looking at 89% of its organisation. However, it admits that it struggles to use sustainable timber in Ireland, which it excludes from this figure. In addition, it excludes its activities in Germany and Belgium, which would lower the percentage of coverage to 82%.[62]

Conclusion

BAM Group is one of the largest construction companies in the Netherlands. It is mainly known from huge infrastructural projects. BAM has a yearly revenue of around 7 billion, but the profit margins are very small (less than 1%). Therefore, hardly any dividend has been paid out over the last years. BAM formulated clear targets for 2030 and wants to be climate positive by 2050. Despite being clear, the targets are not enough to be in line with the Paris Agreement. This is due to the scope 3 target being only 20% reduction. Looking at the emission numbers of the past years, there is no declining trend. Emission numbers have been stable at around 8 megatonnes since 2016. BAM is currently not on track to reach its own climate targets, let alone the targets set out by the Paris Agreement.

References

  1. ↑ https://www.bam.com/en/about-bam
  2. ↑ https://www.bam.com/en/about-bam/history
  3. ↑ https://www.bam.com/en/about-bam
  4. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 4
  5. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 25
  6. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 28
  7. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 170
  8. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 199
  9. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 9
  10. ↑ https://www.bam.com/nl/over-bam/organisatie
  11. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 200
  12. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 83
  13. ↑ https://www.bam.com/en/about-bam/management
  14. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 84
  15. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 69
  16. ↑ https://www.bam.com/en/about-bam/organisation
  17. ↑ https://www.bam.com/en/about-bam/organisation
  18. ↑ https://www.bam150years.com/nl/bam-in-150-projecten?page=5
  19. ↑ https://www.ambassadorvermogensbeheer.nl/interview-rob-van-wingerden-koninklijke-bam-groep/#
  20. ↑ https://www.bam.com/nl/over-bam/geschiedenis
  21. ↑ https://www.uwv.nl/overuwv/Images/uwv-register-now-vijfde-aanvraagperiode.pdf
  22. ↑ https://www.bam.com/en/documents/annual-report-2021
  23. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 22
  24. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 158
  25. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-integrated-report-2015-606-14587241992045720041.pdf
  26. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-integrated-report-2015-606-14587241992045720041.pdf p. 195
  27. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2016-integrated-report-606-14882637411544098698.pdf
  28. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2016-integrated-report-606-14882637411544098698.pdf p. 224
  29. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2017-integrated-report-lr-606-1520439004332614648.pdf
  30. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2017-integrated-report-lr-606-1520439004332614648.pdf p. 250
  31. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-integrated-report-2018-606-1551175785769337001.pdf
  32. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-integrated-report-2018-606-1551175785769337001.pdf p. 210
  33. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2019-integrated-report-606-1582797940125197599.pdf
  34. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2019-integrated-report-606-1582797940125197599.pdf p. 2020
  35. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2020-integrated-report-606-16190809501197955203.pdf
  36. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2020-integrated-report-606-16190809501197955203.pdf p. 196
  37. ↑ https://www.bam.com/en/documents/annual-report-2021
  38. ↑ https://www.bam.com/sites/default/files/domain-606/documents/bam-2021-annual-report-606-1645685232618911579.pdf p. 194
  39. ↑ https://eenvandaag.avrotros.nl/item/bam-was-gewaarschuwd-voor-bouwfouten-parkeergarage/
  40. ↑ https://nos.nl/artikel/2228193-vloeren-ministeries-deels-afgezet-om-onveilige-constructie
  41. ↑ https://nos.nl/artikel/2170441-grote-schade-aan-koraal-curacao-vermoedelijk-door-bouwer-bam
  42. ↑ https://caribischnetwerk.ntr.nl/2017/06/13/17-jaar-nodig-voor-herstel-koraalschade-bouw-mega-pier-curacao/
  43. ↑ https://nltimes.nl/2020/06/30/engineering-firm-bam-pay-cologne-eu200m-fatal-metro-accident
  44. ↑ bam-integrated-report-2015-606-14587241992045720041.pdf p. 66
  45. ↑ https://www.cdp.net/en/formatted_responses/pages?locale=en&organization_name=Royal+BAM+Group+nv&organization_number=23119&program=Investor&project_year=2016&redirect=https%3A%2F%2Fwww.cdp.net%2Fsites%2F2016%2F19%2F23119%2FClimate+Change+2016%2FPages%2FDisclosureView.aspx
  46. ↑ https://www.cdp.net/en/formatted_responses/responses?campaign_id=74241094&discloser_id=897833&locale=en&organization_name=Royal+BAM+Group+nv&organization_number=23119&program=Investor&project_year=2021&redirect=https%3A%2F%2Fcdp.credit360.com%2Fsurveys%2F2021%2Fdbbr64mv%2F145961&survey_id=73557641
  47. ↑ bam-2016-integrated-report-606-14882637411544098698.pdf p. 75
  48. ↑ https://www.cdp.net/en/formatted_responses/pages?locale=en&organization_name=Royal+BAM+Group+nv&organization_number=23119&program=Investor&project_year=2017&redirect=https%3A%2F%2Fwww.cdp.net%2Fsites%2F2017%2F19%2F23119%2FClimate+Change+2017%2FPages%2FDisclosureView.aspx
  49. ↑ bam-2017-integrated-report-lr-606-1520439004332614648.pdf p. 95
  50. ↑ https://www.cdp.net/en/formatted_responses/responses?campaign_id=62255737&discloser_id=665048&locale=en&organization_name=Royal+BAM+Group+nv&organization_number=23119&program=Investor&project_year=2018&redirect=https%3A%2F%2Fcdp.credit360.com%2Fsurveys%2Fft9rgfbw%2F27270&survey_id=58150509
  51. ↑ bam-integrated-report-2018-606-1551175785769337001.pdf p. 46
  52. ↑ https://www.cdp.net/en/formatted_responses/responses?campaign_id=62255737&discloser_id=665048&locale=en&organization_name=Royal+BAM+Group+nv&organization_number=23119&program=Investor&project_year=2018&redirect=https%3A%2F%2Fcdp.credit360.com%2Fsurveys%2Fft9rgfbw%2F27270&survey_id=58150509
  53. ↑ bam-2019-integrated-report-606-1582797940125197599.pdf p. 43
  54. ↑ https://www.cdp.net/en/formatted_responses/responses?campaign_id=70692136&discloser_id=854830&locale=en&organization_name=Royal+BAM+Group+nv&organization_number=23119&program=Investor&project_year=2020&redirect=https%3A%2F%2Fcdp.credit360.com%2Fsurveys%2F2020%2F6sc15v4h%2F89214&survey_id=68887525
  55. ↑ bam-2020-integrated-report-606-16190809501197955203.pdf p. 37
  56. ↑ https://www.cdp.net/en/formatted_responses/responses?campaign_id=74241094&discloser_id=897833&locale=en&organization_name=Royal+BAM+Group+nv&organization_number=23119&program=Investor&project_year=2021&redirect=https%3A%2F%2Fcdp.credit360.com%2Fsurveys%2F2021%2Fdbbr64mv%2F145961&survey_id=73557641
  57. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 14
  58. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 40
  59. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 40
  60. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 40
  61. ↑ bam-2021-annual-report-606-1645685232618911579.pdf p. 45
  62. ↑ https://annualreportbam.com/business-performance/environmental-performance
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