Annual Report 2016
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ANNUAL REPORT 2016 CREATE THE FUTURE 130353 cover JV 2016.indd 1 16/03/17 14:15 TBI ANNUAL REPORT 2016 This integrated Annual Report provides a cohesive insight into TBI’s financial performance and its non-financial performance. It has been prepared in accordance with the guidelines of the Integrated Reporting Framework and the Global Reporting Initiative, G4 (Core). The GRI G4 content index with references to where information can be found in this report is available on the annual report site at http://jaarverslag.tbi.nl/en/ To realise our ambition of leadership in sustainability, we will review our sustainability strategy in 2017 and revise our goals and KPIs. The new strategy and goals will be guided principally by the Sustainable Development Goals (SDGs). The main target groups of this Annual Report are our shareholder, clients, employees, partners, suppliers and NGOs. We would be pleased to receive your questions, comments and suggestions by email: [email protected] This is an English translation of the Dutch language integrated Annual Report 2016. Should different interpretations arise, the Dutch version prevails. The annual reports are also available at http://jaarverslag.tbi.nl/en/. prefab TBI Holdings B.V. Wilhelminaplein 37 3072 DE Rotterdam The Netherlands P.O. Box 23134 3001 KC Rotterdam The Netherlands T +31(0)10 – 2908500 www.tbi.nl [email protected] Chamber of Commerce number 24144064 CONTENTS MESSAGE FROM THE CEO 5 SCOPE AND RESPONSIBILITY 66 ABOUT TBI 6 ANNUAL ACCOUNTS 67 • TBI’s field of operations 6 • Consolidated balance sheet as at 31 December 2016 68 • Profile 7 • Consolidated profit and loss account for 2016 69 • Consolidated statement of cash flows for 2016 70 STAKEHOLDERS DIALOGUE 8 • Notes to the consolidated accounts 72 • Notes to the consolidated balance sheet 77 MATERIAL THEMES 11 • Notes to the consolidated profit and loss account 83 • Company balance sheet as at 31 December 2016 87 HOW TBI CREATES VALUE • Notes to the company accounts for 2016 88 • Mission 12 • Appropriation of the result for 2015 92 • TBI’s business model 12 • Proposed appropriation of the result for 2016 92 • Strategic framework 13 • Subsequent events 92 KEY FIGURES TBI 14 OTHER INFORMATION 93 • Provisions of the Articles of Association TBI IN THE MARKET - Strengthen the market position 18 on the appropriation of the result 93 • Development 18 • Housing 22 INDEPENDENT AUDITOR’S REPORT 94 • Non-residential 28 • Engineering 32 ASSURANCE REPORT OF THE INDEPENDENT AUDITOR 96 • Mobility 38 • Sustainable innovation and cooperation 40 MANAGEMENT BOARDS OF THE TBI COMPANIES 100 • Innovations in the supply chain 42 OPERATIONAL STRUCTURE TBI 101 FINANCIAL - Maintain a solid profile 43 • Operating income and results 43 GLOSSARY 102 • Orders received and order book 44 • Balance sheet 44 CREDITS 103 • Financing 45 • Engineering, Construction & Development, and Infrastructure results 45 • Prospects 46 EMPLOYEES - An attractive workplace 47 • Employee development 47 • Training and development 48 • Labour relations and employment conditions 49 • Health and safety 50 ENVIRONMENT - Reducing the impact 51 • Energy and CO2 51 • Raw materials and supply chain cooperation 52 SOCIETY – Corporate responsibility and engagement 53 • Integrity 53 • Respect for the community 54 • Corporate social responsibility 55 GOVERNANCE 56 • Risk management 56 • Corporate governance 59 • Report of the Supervisory Board 61 • Composition of the Executive Board 64 • Composition of the Supervisory Board 65 CREATE THE FUTURE 4 TBI Annual Report • 2016 MESSAGE FROM THE CEO The economic recovery in the Netherlands continued in 2016. Thanks to historically low interest rates and firmer consumer confidence, investments picked up again. Our industry profited mainly from the strong growth of the housing market. The infrastructure and non-residential markets are also showing tentative signs of recovery. TBI achieved a modest improvement, with its operating income rising to €1,573 million in 2016. A substantial provision for losses on the project for the European Patent Office (EPO), however, meant we closed 2016 with a negative result from normal activities of €7 million. After adjustment for this provision, the result from normal activities was €15 million positive. TBI’s financial position remains strong, with a solvency ratio of 36%. The EPO project unequivocally demonstrates the overriding need for active and professional risk management in combination with strict project control when working on high-risk design and build contracts. WORKING TOGETHER ON CONSTRUCTION PROJECTS The interaction between our companies when they share We will have to overcome major social challenges in the decades knowledge and work together. The interaction between our skills ahead. Society is changing rapidly. Digitisation, energy transition and the sophisticated digitisation and industrialisation of the and urbanisation are shaping the country’s built environment and construction process. We are using the Building Information the way we work. This is prompting us to reconsider our approach Model, for example, on more projects. The interaction between to the construction projects of the future. How will we meet the experienced staff and young talent. And the interaction with our demand for housing? How can we make the existing housing customers so that we can serve them even better. stock more sustainable? How can we make sustainable, smart buildings? How can we make mobility safe and accessible? And Our companies worked on inspirational projects in 2016. Some of how can we remain an attractive employer for professionals and them are highlighted in this report. Each one of them illustrates young talent? A healthy construction industry is of vital our commitment to professionalism and reflects our values. They importance if we are to meet the challenges of the future. are the distillation of our skills, business flair, innovative strengths and cooperation. Safety was also a high priority during the year. In More construction projects will have to be carried out in 2016, for instance, we introduced a group-wide TBI Safety Day for partnership. Rijkswaterstaat, the Dutch Directorate-General for all employees. We also developed new tools to improve safety Public Works and Water Management, has taken a positive step in awareness and safe conduct. this direction by launching its “Market Vision 2020” project in cooperation with other public contracting authorities and the A WORD OF THANKS construction industry. The Vision lays the groundwork for better We are looking to the future with confidence. Our companies are cooperation and a fair and realistic allocation of risks. bursting with ambition and are eager to make smart use of the opportunities that arise. Our order book has increased by 20% to A second initiative to address the challenges of the future is the €2.1 billion. Thanks to the synergies generated by our companies, Construction Agenda 2017-2021 prepared by the Construction TBI commands a distinctive position on the market and can satisfy Taskforce. It considers ways to future-proof the nation’s the increasingly complex demands made by our clients. We have infrastructure, make the existing housing stock more sustainable won some excellent contracts. They include the construction of a and improve the use of renewable raw materials. A million extra new lock at Eefde, the renovation of Huis ten Bosch Palace, homes must be built in the coming years. We can realise these renovation of Naturalis natural history museum in Leiden and the ambitions only if the construction industry innovates and the construction of the Rijnlandroute, a new connection between the government relaxes regulations where appropriate. A44 and A4 motorways. All these projects are a good match for TBI’s profile. CREATE THE FUTURE We would like to thank everyone who contributed their The Construction Agenda’s ambitions are reflected in our mission: commitment, know-how, skills, experience and professionalism to TBI – create the future. Sustainability is a key factor in all our TBI in the past year. And we would like to thank our clients, projects – from newbuilds to existing stock – and in all our partners and shareholder for their support and trust. markets. Technology is interwoven throughout all our work. By innovating we can develop our company and devise strong, Rotterdam, 21 March 2017 sustainable solutions for the built environment. We again concentrated on doing what we do better and smarter Daan Sperling in the past year. At the end of 2016, for example, we rounded off CEO of the Executive Board, the merger of Croon Elektrotechniek and Wolter & Dros into a TBI Holdings B.V single strong technology firm operating under the name Croonwolter&dros. We have pooled the electrical engineering, mechanical engineering and automation and information disciplines in this company. The key word in 2016 was “interaction”. TBI Annual Report • 2016 5 ABOUT TBI TBI’s field of operations ENGINEERING CONSTRUCTION INFRASTRUCTURE Comfort Partners ERA Contour Mobilis Croonwolter&dros Groothuis Mobilis Danmark Eekels Hazenberg Servicis WTH HEVO Timmermans Infratechniek J.P. van Eesteren Voorbij Funderingstechniek Koopmans MDB Nico de Bont Synchroon Voorbij Prefab DEVELOPMENT Strong in housing, retail and social real estate HOUSING Space for housing wishes NON-RESIDENTIAL Making buildings smarter ENGINEERING Intelligence through technology MOBILITY Working from cooperation 6 TBI Annual Report • 2016 Profile TBI is a group of companies