In the memorable year 2023, we demonstrated that our aligned business activities put us in an excellent position as a national market player to work in a solution-oriented way on the complex construction, development and infrastructure challenges our country is facing. From this position, we see plenty of opportunities to continue our strong performance in 2024. This optimism is driven by our sharpened vision of the future under the banner ‘Together towards 2030’. In 2024, we will take new steps on the road to realising our ambitions. One way we will do this is by linking concrete objectives to our strategic vision. In every step we take, we need to continue to take into account the potential impact of the major societal themes at play.
The outlook for Building & Technology and Infra is certainly favourable. As a result of recovering residential sales, especially in suburban areas, we are also optimistic about Property Development and Van Wanrooij and confident about a healthy housing market. Thanks to the acquisition of Van Wanrooij’s development and construction activities, we have been able to further strengthen our position in this market. Van Wanrooij will be included in our business figures for the full year 2024. Upon the acquisition of Van Wanrooij in 2023, we expressed the expectation that Heijmans will once again be in a net cash position by the end of 2026. We expect to take a major step in that direction in 2024 thanks to a positive cash flow. We are also aiming for healthy balance sheet ratios, with solvency exceeding 30% and a leverage ratio (net debt / underlying EBITDA) that remains well below 1.0. In terms of results, we expect an underlying EBITDA margin of at least 6.5%.
Strategy 2030
Heijmans wants to play a more prominent role in the realisation of solutions for the complex challenges facing our country. These challenges - especially in the areas of housing, accessibility, the labour market, the energy transition and climate change - are wide-ranging, far-reaching and rather complex because they are interrelated. As a society, we need to find a powerful response to these issues. This requires strong direction and connections. Heijmans sees good opportunities to take on a more central role in this playing field. We believe that we need to join forces and work together to make a difference. Heijmans wants to make a meaningful contribution to the development of the Netherlands.
In 2024, we will translate our five strategic pillars (Well-being, Sustainability, Connection, Makeability and Collaboration) into financial and other quantitative targets and put the new plans into practice in a targeted and ambitious way. At the same time, we will continue to build a flexible and robust organisation.
Confidence in the housing market
We are counting on the recent signs of an improving housing market becoming stronger in 2024. The housing shortage in the Netherlands has continued to rise over the past few years, creating significant demand for new build homes. The government’s ambition is still to build 900,000 new homes in the Netherlands before 2030. The acquisition of Van Wanrooij puts us in a good position to help achieve this. After all, the housing challenge calls for a varied supply for all target groups, both for apartments and for houses in inner-city and suburban areas. The affordability of new-build housing remains an issue, partly because of the higher materials and labour costs. Heijmans’ Horizon modular building concept is firmly based on building sustainable homes quickly and at relatively low cost. At the same time, we also need to take into account circulation in the housing market.
Infra challenge for the future
We are also facing major challenges in the infrastructure market. The need to protect the Netherlands from water is only increasing, but so is the need to realise water collection, storage and distribution, and safeguard water quality. The energy transition requires substantial infrastructural adjustments, especially as far the expansion of electricity grids is concerned. We need to devote additional attention and public sector investment to clear the backlog of maintenance on our road network. Moreover, we urgently need new, future-proof infrastructure to relieve the growing congestion on our infra network. This is preceded by a planning procedure of some eight years, and we cannot wait any longer to start this. We are already seeing accelerated road congestion, with a concomitant negative impact on passenger and freight transport. At the same time, we urgently need investments in the public transport network. Heijmans has the necessary expertise and is keen to help smooth out current and future bottlenecks.
Social themes
Heijmans wants to make a positive contribution to the numerous developments coming our way and the changes in the world around us. Care and attention for people, animals and nature remain our guiding principles in this context. In 2024, we are also committed to continuing to improve the sustainability of our operations and our range of products and services.
The European Water Framework Directive (WFD) plays an increasingly important role in the implementation of our projects. This directive requires construction projects to make a positive contribution to improving ecological water quality by 2027. Biologists and ecologists at Heijmans have been working for some time to create a good habitat for plants and animals. On top of that, we see that the availability of drinking water is reaching its limits. The current consumption of drinking water in our society contributes to the depletion of this precious natural resource. Heijmans will focus on reducing drinking water consumption in its own operations and projects, and in the production of raw materials.
We have set hard targets for reducing CO2 emissions generated by our own activities, the so-called scope 1 & 2 emissions. In 2024, we want to take additional steps to reduce scope 3 emissions, the emissions produced in our chain. We expect to increase our positive impact by working closely with our partners on environmentally friendly practices and innovations. We will report on our progress on this front, as well as on the results of the other sustainability measures, in accordance with the latest reporting requirements of the EU Corporate Social Responsibility Directive (CSRD) as of the financial year 2024.
Heijmans is well prepared for new legal and regulatory requirements. At the same time, social desires are not always clear cut, so legal embedding and implementation sometimes falters. Consistent long-term policy and more central government direction in areas related to societal challenges, from spatial planning and mobility to housing construction and water quality, remains extremely important if Heijmans is to be in a position to take responsibility and take its own well-considered steps towards the creation of a healthy living environment.
Robust organisation
Heijmans wants to continue to build on the path we have taken in recent years. There is no need to change course radically, because Heijmans is in great shape. In 2024 and beyond, we want to continue to develop in our role as a sustainable leader in tackling the major construction and development challenges in this country. This is only possible if we remain in top condition and invest in a robust, predictable and agile organisation, where safety comes first and value creation, quality and risk management are self-evident. We will need to do some smart manoeuvring among all the rapid developments, and keep our costs under control. The latter may not be an easy task, but it is essential.
Healthy growth
We have a solid foundation, which is a pleasant thought when working on a better Netherlands and a better Heijmans. The knowledge that we operate in a playing field where there is still a lot of work to be done and where our expertise is of immense value also inspires optimism. We feel empowered by our vision of the future and the ambitions set out in our refined strategy for the period to 2030. All of this certainly points to further healthy growth and the profitability that comes with it. We are looking to the future with confidence. A future in which revenue and profit, along with a healthy and positive impact on the world around us, go hand in hand.
Sybren Hahn
“Schiphol is never finished. We are working and building day and night to make our airport quieter, cleaner and better. We are well on our way to achieving a better balance with the living environment, improving working conditions for employees and offering the best service to our passengers and airlines. Quality is key and good assets are the foundation of that quality. This is why we are catching up on maintenance backlogs and improving, renewing and making the airport more sustainable. We cannot do this alone, only together with our main contractors such as Heijmans. From the recycling point for concrete rubble to the maintenance of the runways, Heijmans helps improve our quality and sustainability. We value our long-term collaboration and the commitment of Heijmans employees. Together we are Team Schiphol.”