First nine months 2020 trading update
BAM reports solid third quarter with adjusted pre-tax result of €51.7 million,
reiterates full year outlook
Royal BAM Group nv reports for the first nine months of 2020 an adjusted loss before tax of €81.8
million, which is a €51.7 million improvement versus the first half year result. The cash position and
the order book remained solid. During the third quarter, the situation regarding Covid-19 was
generally stable. BAM maintains its outlook of a positive adjusted result before tax for the second
half of the year, although the Covid-19 situation still causes uncertainty.
• Both business lines improved performance in third quarter after being hit hard in second quarter by Covid-19
• Revenue of €1.7 billion in third quarter 2020, in line with comparable period 2019
• Adjusted result before tax of €51.7 million in third quarter 2020, a margin of 3.0%
• Programme to structurally lower BAM’s cost base by €100 million initiated; first benefits in 2021
• Cash position remained strong at €1.2 billion, which includes fully drawn €400 million revolving credit facility
• Capital ratio improved to 12.6%
• Order book at €13.3 billion, stable versus mid-year 2020
1 Before restructuring costs, impairments and pension one-offs.
Ruud Joosten, CEO of Royal BAM Group:
‘First of all, I would like to express my appreciation for the commitment of our people which I saw during my
recent onboarding programme, especially during these difficult and uncertain times. When visiting some of
BAM’s fantastic projects, I saw that our teams are well-prepared and extremely motivated. It is also clear that
BAM’s financial performance is not where it should be. We consider it our main priority to structurally improve
the profitability and predictability of the Group. I am looking forward to achieving this ambition in close
cooperation with my colleagues at BAM.
In the third quarter, BAM’s performance improved substantially versus the first half of the year. After the
severe impact of Covid-19 in the second quarter, most operating companies succeeded in bringing their
activities to more normalised efficiency levels. Furthermore, our de-risking and improvement initiatives
resulted in a somewhat better performance in German construction and Dutch civil engineering, while the
wind-down of BAM International is progressing.
At the end of September, we announced a major restructuring programme which will deliver cost savings of
€100 million annually. In addition, we have started to define our new strategic agenda in order to create more
value for our shareholders and solid prospects for all our stakeholders, including our employees. We will
inform the market about our new way forward in the first quarter of 2021.
Key financials
(in € million, unless otherwise indicated)
9 months
2020
9 months
2019
Full year
2019
Revenue 4,830 5,203 7,209
Adjusted result before tax 1
-81.8 20.5 74.1
Order book (end of period) 13,300 12,200 12,700
Trade working capital efficiency -12.9% -9.6% -10.4%
Royal BAM Group nv Runnenburg 9, 3981 AZ Bunnik
P.O. Box 20, 3980 CA Bunnik, Netherlands
Telephone +31 (0)30 659 89 88
Postbank 2903344 / ABN AMRO bank ’s-Gravenhage 43.00.08.97
Date 5 November 2020
No. of pages 2
Royal BAM Group nv
Press release of 5 November 2020, page 2 of 2
The current worsening of Covid-19 conditions increases uncertainty. We continue to focus on the health and
safety of our people and our clients. Financially, our focus is on the conservation of cash. BAM reiterates its
outlook for a positive adjusted result before tax for the second half of 2020.’
Business review third quarter 2020
The operating companies in the business line Construction and Property (excluding BAM International),
contributed positively to the result in the third quarter. The performance of the Dutch property development
and residential construction activities remained strong, with 691 homes sold in the third quarter versus 594 in
the comparable period last year. Germany and Belgium operated around break-even while the activities in
the United Kingdom and Ireland contributed well.
In the business line Civil engineering (excluding BAM International), the performance in most markets
improved. The Netherlands reported a positive result, mainly due to cost savings. After a strong first half
year, the UK contribution was lower. Germany returned to profit after the first half loss due to the Cologne
Metro settlement, while the activities in Belgium benefited from a claim settlement.
BAM PPP delivered another solid quarter from its existing portfolio while the tender pipeline remains healthy.
The discussions with PGGM regarding the extension of the long-term PPP partnership are progressing.
BAM International remained loss making in the third quarter. The process to wind down BAM International
has started, and the associated restructuring costs for 2020 will be around €13 million.
Financial position
Trade working capital efficiency remained on a good level and the cash position was solid at €1.2 billion. The
capital ratio improved by 1.3% points to 12.6% compared to the first half year, supported by the positive
result and a shorter balance sheet.
Live audio webcast
On 5 November 2020, at 10.00 hrs CET, there will be a conference call in English for analysts. This can be
followed via live audio webcast (www.bam.com).
Next event
18 February 2021: Publication of annual results 2020.