6.3 Revenue

The disaggregation of revenue into categories that reflect the nature, the amount, the timing and the uncertainty of revenues and cash flows are affected by economic factors runs along the lines of the segment information by sector.

Revenue by sector

x € 1,000

2022

2021

Property Development

569,685

548,184

Building & Technology

932,513

788,647

Infra

661,219

737,592

Eliminations

-351,209

-325,939

1,812,208

1,748,484

Property Development revenue mainly relates to revenue from residential and investment property projects developed by Heijmans for private buyers, of €461 million (approx. €385 million in 2021), and for property investors and housing associations together, of approximately €109 million (approx. €163 million in 2021), in general involving the delivery of both the land and the buildings. Projects for private buyers are usually not started until at least 70% has been sold. Invoicing of private buyers is according to the schedule adopted by the SWK (Stichting Waarborgfonds Koopwoningen - Owner-Occupied Housing Guarantee Fund) that is linked to predefined stages. The first instalment is invoiced when title to the land is transferred. Construction work on projects for property investors and housing associations does not start before the sale has been completed. The invoicing schedule is agreed with each client and, as in the case of private buyers, is generally linked to the completion of stages, the first instalment being invoiced upon conveyance of the land.

The revenue from the land is recognised at the time of legal conveyance whereas the revenue from the buildings is recognised during the course of the construction period.

The revenue generated by Building & Technology mainly relates to the construction of housing and non-residential buildings and related installation work on behalf of clients in the private sector and the public or semi-public sector, amounting to approximately €650 million (approx. €543 million in 2021). Construction only commences when orders have been confirmed. Invoicing is according to a stage-based schedule, which may differ from one contract to another. Revenue is recognised during the course of the construction period. Other work involves service activities on clients’ buildings and installations. Revenue from these activities, of approximately €283 million (approx. €246 million in 2021), is recognised as and when this service and maintenance work takes place. A major client for the construction of residential property is Heijmans Property Development, representing internal sales that are eliminated.

The revenue generated by Infra mainly relates to the construction of roads and other civil engineering works on behalf of public authorities, of approximately €438 million (approx. €521 million in 2021). Construction only commences when orders have been confirmed. Invoicing is according to a stage-based schedule, which may differ from one contract to another. Revenue is recognised during the course of the construction period. Other work involves service and maintenance activities on pieces of infrastructure. Revenue from these activities, of approximately €223 million (approx. €217 million in 2021), is recognised as and when this service work takes place.

In 2022, revenue totalling €185 million (2021: €170 million) was recognised and this amount was included in work in progress liabilities as at 1 January.

In 2022, revenue totalling €6 million (2021: €4 million) was recognised relating to performance obligations fulfilled in earlier periods.

The amount of the transaction price that has been attributed to performance obligations that have not been fulfilled (in whole or in part) is approximately €2.2 billion (2021: €1.9 billion). Of this, approximately 53% will be fulfilled in 2023, 29% in the period 2024 and 2025 and 18% in 2026 and beyond (2021: approximately 54% in 2022, 26% in the period 2023 and 2024 and 20% in 2025 and beyond). The disclosed amounts concern contracted revenue and do not include any revenue that is not highly probable. Revenue generated by contracts for which the unit price but not the volumes has been agreed have been included in the disclosed amounts. The Group has not made use of the practical possibility of not disclosing performance obligations forming part of a contract with an originally expected completion date of 12 months or less.

The Group has not adjusted revenue for significant financing components partly because the period between fulfilment of the performance obligations and payment by the client is less than one year.

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