Koninklijke Bam Groep Nv · EURONEXT:BAMNB
Koninklijke Bam Groep Nv — Royal BAM Group — FY2023 Earnings Presentation
29 slides from Koninklijke Bam Groep Nv's earnings presentation, Feb 15, 2024
Slide 1: Annual results 2023
Annual Annual results results 2022 2023 BAM BAM delivers delivers adjusted adjusted EBITDA EBITDAof of €350 €304 million million in in 2022, 2023 Dividend and proposal of dividend proposes €0.20 per share ofand announcement €0.15 per shareof €30 million share buyback Ruud RuudJoosten Joosten Frans F
Slide 2: Disclaimer
Disclaimer • This presentation contains ‘forward-looking statements’, based on currently available plans and forecasts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future, and B
Slide 3: Fotografie: Evabloem
Fotografie: Evabloem
Slide 4: Key points 2023
Key points 2023 BAM delivers adjusted EBITDA of €304 million in 2023 Dividend proposal of €0.20 per share and announcement of €30 million share buyback FY 2023 versus FY 2022 • Revenue in Netherlands, UK and Ireland combined increased by 2% Revenues Adjusted EBITDA • Adjusted EBITDA of €304m (margin
Slide 5: Division Netherlands
Division Netherlands Royal BAM Group nv FY 2023 results 67 very energy-efficient apartments in De Weef project, Helmond – BAM Wonen 5
Slide 6: Performance Division Netherlands
Performance Division Netherlands Contribution Dutch activities further increased in 2024 (x € million, unless otherwise indicated) Full-year 2023 Full-year 2022 • Revenue increased by 3% to €3.0bn Revenue Result Revenue Result • Adjusted EBITDA improved by 4% to €179m, reflecting Construction and Pr
Slide 7: Division United Kingdom and Ireland
Division United Kingdom and Ireland Royal BAM Group nv FY 2023 results Herring Bridge, Great Yarmouth, a third road crossing over the River Yare estuary in Norfolk – BAM Nuttall (in joint venture). 7
Slide 8: Performance Division United Kingdom and Ireland
Performance Division United Kingdom and Ireland High contribution Civil engineering UK, Construction UK impacted by supply chain issues (x € million) Full-year 2023 Full-year 2022 • Revenue stable versus FY 2022, lower in Ireland due to Revenue Result Revenue Result progress on large projects Constr
Slide 9: Financial review
Financial review Royal BAM Group nv FY 2023 results New Lock Terneuzen (427m long, 55m wide and 16.44m deep) ensures that access to the ports of Ghent and Terneuzen is future-proof - BAM Infra Netherlands In joint venture. 9
Slide 10: Income statement
Income statement Net result of €175 million, reflecting earnings per share of €0.65 (x € million) FY 2023 FY 2022 • Adjusted EBITDA of €304m (FY 2022: €350m), adjusted Division Netherlands 179.0 172.5 EBITDA division Netherlands and division United Kingdom Division United Kingdom and Ireland 121.5 8
Slide 11: Cash flow
Cash flow Cash flow from operations further improved and cash position remained at €0.8 billion (x € million) FY 2023 FY 2022 • Cash flow from operations further improved • Working capital increased: Cash flow from operations 276 246 Cash flow from working capital -99 -466 - Higher interest rates ha
Slide 12: Financial position
Financial position Capital ratio improved to 23.4 per cent while BAM resumed dividend payment (x € million) FY 2023 FY 2022 • Net cash position somewhat lower versus year-end 2022 Cash position 757 841 - Trade working capital increased, still at good level of -13.2% Borrowings -62 -53 (2022: -16.8%)
Slide 13: Looking ahead
Looking ahead Royal BAM Group nv FY 2023 results Production hall BAM Wood Concepts, Heerhugowaard. 13
Slide 14: Order book and market trends
Order book and market trends Solid order book, BAM well positioned while market conditions are mixed Order book development • Solid order backlog of €9.8bn (2022: €10.0bn) 6000 - Reduction of €0.3bn due to UK government roads programme review 5000 - Increase of €0.1bn due to British pound exchange r
Slide 15: Outlook 2024-2026
Outlook 2024-2026 • BAM is in good shape to benefit from its strong market positions and structural growth opportunities • For the strategic period 2024-2026, BAM expects to deliver an adjusted EBITDA Other picture margin between 4 and 6 per cent Royal BAM Group nv FY 2023 results Sky Studios Elstre
Slide 16: Strategy 2021-2023 Building a sustainable tomorrow
Strategy 2021-2023 Building a sustainable tomorrow Royal BAM Group nv FY 2023 results 16
Slide 17: Key performance indicators
Key performance indicators All strategic targets set for 2023 realised 2021 2022 2023 Target 2023 Adjusted EBITDA margin 3.8% 4.5% 1 4.9% Approx. 5% Revenue €7.3 bn €6.6bn €6.3bn Approx. €5.5bn Return on average capital employed 5.6% 16.8% 13.7% >10% Trade working capital efficiency -16.9% -15.8% -1
Slide 18: BAM is ready for the next phase in Building a sustainable tomorrow
BAM is ready for the next phase in Building a sustainable tomorrow Royal BAM Group nv FY 2023 results 18
Slide 19: Building a sustainable tomorrow: Strategy 2024-2026
Focus Building a Focus on selected markets with favourable risk- sustainable reward profile and sustainable impact tomorrow Transform Transform in markets through differentiation on sustainable and industrialised products and Strategy 2024-2026 services Expand Expand in growth markets that are align
Slide 20: Focus
Focus Adjust foto Differentiate on process capability Focus on framework agreements Focus on <€150m infrastructure Focus on selective multi-asset in economic core projects clients UK&I and NL Non-residential NL Non-residential and infrastructure UK&I Infrastructure NL Non-residential NL Zalmhaven, R
Slide 21: Transform
Transform Industrialise housing through Flow Transform education and health Innovate roads through sustainable Unlock advantages through cross concept through standardised designs asphalt segment collaboration Residential NL Non-residential UK&I Infrastructure NL Non-residential UK&I BAM Wood Concep
Slide 22: Expand
Expand Adjust picture and/or project for best visual Expand in grids and EV charging Expand in green infra rail and grids Expand in housing renovations Expand in commercial renovation and retrofitting Infrastructure NL Infrastructure UK&I Residential NL Non-residential UK&I Transform station Wijk aa
Slide 23: Financial targets 2024-2026
Financial targets 2024-2026 BAM aims to deliver: • Predictable performance on >€6 billion Other picture! revenue • Strong capital ratio: ~25 per cent Other picture • Adjusted EBITDA margin: 4-6 per cent • Return to shareholders: 30-50 per cent of net income from operations for dividend, potentially
Slide 24: Sustainability targets 2026 and 2030
Sustainability targets 2026 and 2030 Royal BAM Group nv FY 2023 results 24
Slide 25: Building a sustainable tomorrow: 2024-2026 and beyond
Building a sustainable tomorrow 2024-2026 and beyond Revenue development BAM in 2030 Leading construction company in selected markets that are Rail sustainable and profitable Renovation Green asphalt Driven by high performance Grids & EV organisation with highly engaged people Flow Strong financial
Slide 26: Key points 2023
Key points 2023 BAM delivers adjusted EBITDA of €304 million in 2023 Dividend proposal of €0.20 per share and announcement of €30 million share buyback FY 2023 versus FY 2022 • Revenue in Netherlands, UK and Ireland combined increased by 2% Revenues Adjusted EBITDA • Adjusted EBITDA of €304m (margin
Slide 27: Annex: Performance on half-year basis
Annex: Performance on half-year basis Full year Full year Revenue / Adjusted EBITDA 2023 H2 2023 H1 2023 2022 H2 2022 H1 2022 EUR x 1 m Division Netherlands Revenue Construction and Property 1 2,072 1,110 962 1,978 1,014 964 Civil engineering 964 564 400 967 531 436 Other including eliminations (29)
Slide 28: Contact
Contact Michel Aupers (Investor Relations) Runnenburg 9 PO Box 20 +31 (0)30 659 89 88 3981 AZ Bunnik 3980 CA Bunnik ir@bam.com The Netherlands The Netherlands www.bam.com Royal BAM Group nv FY 2023 results 28
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