ANNUAL REPORT 2019 1 ANNUAL REPORT 2019 CREATING SUSTAINABLE CLIENT VALUE ANNUAL REPORT 2019 3 TABLE OF CONTENTS DIRECTORS’ REPORT FINANCIAL STATEMENTS A sustainable 4 Ramboll in numbers 50 Accounting policies 6 Key statistics 53 Financial ratios 7 Letter from CEO and Chair 54 Income statement building 10 Delivering on our strategy 55 Cash flow statement 1 5 Financial review 56 Balance sheet, assets 20 Highlights of 2019 57 Balance sheet, equity and liabilities 58 Equity 25 PROGRESS ON OUR COMMITMENTS 59 Notes King’s Cross W3 is a state-of-the-art building with extensive sustainability credentials 26 CLIENTS NON-FINANCIAL STATEMENTS using timber in both the structure and the 26 Shaping the future project by project cladding. 28 Timber is the sustainable future 7 1 Accounting principles 30 Creating value through innovation 72 About this report and sustainability strategy “Ramboll’s expertise in timber has been of 32 PEOPLE 73 Policies implemented particular value on this project…” 32 Diverse workforce 74 Materiality & Boundaries 33 People engagement 76 GRI index 34 Health, safety and security 8 1 Key performance indicators per principal business unit 38 SOCIETY 38 Contribution to UN’s Sustainable ADDITIONAL INFORMATION Development Goals 40 Advocacy on climate action 84 Management’s Statement 4 1 Community engagement on the Annual Report 85 Independent Auditor’s Report 44 COMPANY 87 Limited assurance report of the 44 Strong growth and a solid independent auditor platform for the future 88 Board of Directors 45 Energy consumption 89 Group Executive Board 46 Sustainability enabled through project management 48 Anti-corruption Ramboll is a leading engineering, architecture and consultancy company founded in Denmark in 1945. The company has especially strong representation in the Nordics, UK, North America, Continental Europe, Middle East and Asia Pacific. We are present in 35 countries and combine local experience with a global knowledge-base, constantly striving to achieve inspiring and exacting solutions that make a genuine difference to our clients, end-users, and society at large. Ramboll works across the following markets: Buildings, Transport, Water, Environment & Health, Energy and Management Consulting. 4 RAMBOLL IN NUMBERS ANNUAL REPORT 2019 5 RAMBOLL IN NUMBERS 2019 59% 65% 35% Sustainable contribution Private Public Per cent of revenue contributing Revenue split between directly and positively to UN SDGs. the private and public sector 25% 66% 8,409 34% Sustainable contribution 14,189 DKK million in revenue contributing to UN Revenue in DKK million Sustainable Development Goals (SDG) Employee gender split 7,676 Client satisfaction 15,947 Order book in DKK million 4.4 Employees, end of year 4.35 4.3 76328% 4.25 DKK million 6,000 4.2 in operating profit (EBITA) 468 2015 2016 2017 2018 2019 Volunteering DKK million in free cash flow Hours spent on volunteering throughout Client feedback on Ramboll projects the Ramboll Group 5.4% 308 36,546 36,200 EBITA margin DKK million Tonnes CO2 Projects finalised in profit before tax Total measured emission from Ramboll 6 ANNUAL REPORT 2019 7 KEY STATISTICS Key figures and financial ratios 2019 2019 2018 2017 2016 2015 Income statement, DKK million EUR m LETTER FROM CEO Revenue 1,899.4 14,188.8 11,351.0 10,740.3 10,607.7 10,589.3 EBITDA 130.7 976.0 759.5 788.3 782.5 652.2 EBITA 102.1 762.5 597.0 618.9 602.1 474.7 EBIT 45.7 341.1 317.9 441.1 338.0 146.7 AND CHAIR Profit before tax 41.2 307.9 360.8 307.8 342.0 222.6 Profit for the year 23.0 171.9 237.8 146.1 176.9 76.3 Balance sheet, DKK million Total assets 1,171.2 8,748.8 7,566.3 6,412.6 6,383.8 6,837.5 Total equity 340.2 2,541.4 2,350.6 2,180.1 2,162.3 2,113.1 Net interest bearing cash/(debt) (26.3) (196.7) (701.4) 81.3 27.3 (194.1) Cash flow, DKK million Cash flow from operating activities 91.9 686.7 496.0 317.1 453.6 515.8 Investment in tangible assets, net (29.3) (218.7) (237.0) (147.9) (124.6) (166.7) Free cash flow 62.7 468.0 259.1 169.2 329.0 349.1 Acquisition of companies 12.4 92.6 (996.2) (116.0) (50.2) (1,081.4) Employees Number of employees, end of year 15,947 14,443 13,401 13,024 13,074 Number of full-time employee equivalents 14,843 13,276 12,527 12,497 12,269 Financial ratios in % Revenue growth 25.0 5.7 1.2 0.2 27.7 Organic growth 4.2 7.0 2.8 0.4 1.5 EBITDA margin 6.9 6.7 7.3 7.4 6.2 EBITA margin 5.4 5.3 5.8 5.7 4.5 EBIT margin 2.4 2.8 4.1 3.2 1.4 Return on invested capital (ROIC) 18.6 17.0 17.9 16.9 16.9 Return on equity (ROE) 7.0 10.5 6.7 8.3 3.8 Cash conversion ratio 111.1 116.2 64.5 119.9 125.8 Equity ratio (solvency ratio) 29.0 31.1 34.0 33.9 30.9 The figures in EUR have been translated from DKK using an exchange rate of 7.47. 2019 was a satisfying year for recorded an all-time-high client sustainable projects in 2019 were Ramboll. Overall revenue grew to satisfaction with the projects we assisting with development and DKK 14.2 billion and operating delivered. We also started measuring implementation of a Smart City profit (EBITA) grew 28 per cent to the general satisfaction and loyalty concept in eight Southeast Asian Key Non-Financials 2019 2018 2017 2016 2015 DKK 763 million. of our clients, and the response was countries and developing a new vision equally at a very high level. for Lake Ontario in the US. Total CO2 emission per employee (tonnes/FTE) 2.07 2.08 - - - In 2019, we continued to develop Gender diversity of employees (female/male %) 34/66 34/66 34/66 34/66 34/66 our global offering and geographical Ramboll continued our strong focus Regarding our global offering, our presence in order to serve our on sustainability which is reflected in seventeen Spearheads continued Lost time incident rate 0.76 2.0 - - - clients better and deliver sustainable the performance of our portfolio. In to be drivers of growth and form a Anti-corruption training (%) 95 75 97 - 91 solutions that benefit societies and 2019, activities supporting the United strong competitive advantage when SDG market revenue increase compared to 2016 (%) 57 16 6 0 - stakeholders across the world. Nations Sustainable Development combined with deep client insight Goals accounted for 59 per cent and local presence. Spearheads are At Ramboll we strive to build close of company revenue representing services that are offered globally partnerships with our clients in a growth of 57 per cent compared and target a specific sector or client order to fully understand and truly to 2016. Specifically, in Energy and segment. In 2019, our Spearheads support what drives their long-term Water we have achieved strong grew 15 per cent, and they build on sustainable success. In 2019 we growth. Among our most prominent expertise areas where Ramboll has a 8 LETTER FROM CEO AND CHAIR ANNUAL REPORT 2019 9 2017 2018 2019 2017 2018 2019 2017 2018 2019 2017 2018 2019 5.8 5.3 5.4 1.2 5.7 25.0 2.8 7.0 4.2 -0.2 0.8 20.3 14,189 763 EBITA margin % Revenue Growth % Organic growth % Acquisition growth % Revenue in DKK million EBITA in DKK million Revenue (DKK million) 15,000 14,000 13,000 12,000 11,000 leading edge, such as Offshore Wind, that will strengthen our value-add All in all, Ramboll delivered a solid 10,000 High Rise Buildings, Digital Rail or to clients. We have accelerated our result in 2019 and progressed 9,000 Environmental Impact Assessment. automation and digital deliveries the strategic development of the through our Digital Development company further. In addition, we 8,000 In High Rise we significantly Centre in India. have re-organised our support 7,000 strengthened our offering through functions and conducted a thorough the acquisition of Web Structures A key milestone in 2019 was the review of our operations leading to 6,000 – a Singapore-based leader in tall acquisition of the globally renowned divestment, closing, or re-scoping of 5,000 buildings – which will be effective architecture company Henning departments and offices that were 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 as of 2020. The acquisition of the Larsen. The acquisition means that underperforming. Both initiatives strategic transport planning and Smart Ramboll and Henning Larsen will be have given a good foundation for able to create value for our clients Ramboll’s future performance and EBITA (DKK million) earlier in the project cycle and more development. Geographically, we holistically through integrated design 800 solutions combining architecture The solid foundation and good financial have strengthened 750 our position in North services with technical and economic result in 2019 have made Ramboll expertise. The acquisition is effective well equipped to steer through the 700 America, UK and from 2 January 2020. COVID-19 situation arisen early in 2020. 650 Germany For now, the virus’ impact on Ramboll Geographically, we have cannot be fully estimated. 600 strengthened our position in North 550 America, UK and Germany.