Annual Report 2020 Leading sustainable change First Nordic Swan Ecolabel Primary School in Denmark Henning Larsen will be designing the new Sundby School, Lolland. With the awarding of the Nordic Swan Ecolabel, the school ensures both a healthy and productive learning environment for all its pupils. Timber Read more on page 22 Nordic Swan FSC & Ecolabelled PEFC School certified for 8,453 580 2 m kids Annual Report 2020 3 Table of contents Directors’ report 50 Company Additional information 5 1 Celebrating 75 years of sustainable solutions 4 Ramboll in numbers 52 SDG revenue target 94 Management’s Statement 6 Key statistics 53 Environmental impact on the Annual Report 7 Letter from CEO and Chair 54 Energy consumption 95 Independent Auditor’s Report 1 1 Delivering on our strategy 97 Limited assurance report of the 1 5 Financial review Financial statements independent auditor 2 1 Highlights of 2020 98 Board of Directors 58 Accounting policies 99 Group Executive Board 27 Progress on Our Commitments 6 1 Financial ratios 62 Income statement 28 Clients 63 Cash flow statement 29 Supporting clients during the crisis 64 Balance sheet, assets 30 Delivering value to clients 65 Balance sheet, equity and liabilities 34 Creating value through innovation 66 Equity 67 Notes 36 People 37 Engagement and well-being of our people Non-financial statements 39 Diversity, Inclusion and non-discrimination 42 Health & safety 80 Accounting principles 82 About this report and sustainability strategy 44 Society 83 Policies implemented 45 Taking climate action 84 GRI index 46 Third party assessments of Ramboll’s 90 Key performance indicators performance on sustainability 47 Volunteering Ramboll is a global engineering, architecture and consultancy company founded in Denmark in 1945. Our 16,000 experts create sustainable solutions across Buildings; Transport; Water; Environment & Health; Architecture, Landscape & Urbanism; Energy and Management Consulting. Across the world, Ramboll combines local experience with a global knowledgebase to create sustainable cities and societies. We combine insights with the power to drive positive change to our clients, in the form of ideas that can be realised and implemented. We call it: Bright ideas. Sustainable change. ramboll.com 4 Grass Ramboll in numbers Ramboll presence Ramboll head oce Ramboll oce 13,613 682 5.0% Revenue in DKK million DKK million in operating profit (EBITA) EBITA margin Annual Report 2020 5 Revenue split between the private 67% and public sector 33% 62% Private Public Sustainable contribution Per cent of revenue contributing directly and positively to UN SDGs. Client satisfaction Client satisfaction 2020 15,896 4.40 2019 34,394 2019 15,947 4.4 4.35 Projects finalised 2020 2018 14,443 4.35 Employees, end of year 4.30 4.3 4.25 2.08 2.07 4.25 1.05 4.20 2016 2017 2018 2019 2020 4.2 Client feedback on Ramboll projects 2018 2019 2020 1,127 CO2 emissions per employee DKK million in free cash flow (tonnes/FTE) 65% Order book 246 35% 6.8 DKK billion DKK million in profit before tax Employee gender split 6 Ramboll in numbers Key Key figures and financial ratios 2020 2020 2019 2018 2017 2016 Income statement, DKK million EUR m statistics Revenue 1,827.3 13,613.3 14,188.8 11,351.0 10,740.3 10,607.7 EBITDA 122.3 911.1 976.0 759.5 788.3 782.5 EBITA 91.5 681.8 762.5 597.0 618.9 602.1 EBIT 37.3 278.0 341.1 317.9 441.1 338.0 Profit before tax 33.0 246.0 307.9 360.8 307.8 342.0 Profit for the year 17.4 129.3 171.9 237.8 146.1 176.9 Balance sheet, DKK million Total assets 1,168.3 8,704.1 8,748.8 7,566.3 6,412.6 6,383.8 Total equity 329.3 2,453.1 2,541.4 2,350.6 2,180.1 2,162.3 Net interest bearing cash/(debt) 68.5 510.5 (196.7) (701.4) 81.3 27.3 Cash flow, DKK million Cash flow from operating activities 169.0 1,259.2 686.7 496.0 317.1 453.6 Investment in tangible assets, net (17.8) (132.6) (218.7) (237.0) (147.9) (124.6) Free cash flow 151.2 1,126.6 468.0 259.1 169.2 329.0 Acquisition of companies (38.9) (289.9) 92.6 (996.2) (116.0) (50.2) Employees Number of employees, end of year 15,896 15,947 14,443 13,401 13,024 Number of full-time employee equivalents 14,950 14,843 13,276 12,527 12,497 Financial ratios in % Revenue growth (4.1) 25.0 5.7 1.2 0.2 Organic growth (4.9) 4.2 7.0 2.8 0.4 EBITDA margin 6.7 6.9 6.7 7.3 7.4 EBITA margin 5.0 5.4 5.3 5.8 5.7 EBIT margin 2.0 2.4 2.8 4.1 3.2 Return on invested capital (ROIC) 16.6 18.6 17.0 17.9 16.9 Return on equity (ROE) 5.2 7.0 10.5 6.7 8.3 Cash conversion ratio 194.7 111.1 116.2 64.5 119.9 Equity ratio (solvency ratio) 28.2 29.0 31.1 34.0 33.9 The figures in EUR have been translated from DKK using an exchange rate of 7.45. Key Non-Financials 2020 2019 2018 2017 2016 Total CO2 emissions per employee (tonnes/FTE) 1.05 2.07 2.08 - - Gender diversity of employees (female/male %) 35/65 34/66 34/66 34/66 34/66 Lost time incident rate 0.89 0.76 2.0 - - Global Compliance, Business Integrity & 48* 95 75 97 - Data Privacy Training SDG market revenue increase compared to 2016 (%) 60 57 16 6 0 *The completion rate as per 25 February 2021 was 95 per cent globally. Annual Report 2020 7 Letter from CEO and Chair 2020 was an unprecedented and been won and delivered during the year. challenging year, characterised by the Our client satisfaction remained at the global health crisis and the resulting partial same high level as the year before. and complete lockdowns of societies and economies around the world. For some of Ramboll’s employees COVID-19 had more negative consequences. Some Overall Ramboll managed to navigate colleagues had to accept salary reductions through the crisis while still developing and furlough and others unfortunately had the company in line with our strategy to leave the company as it was necessary and purpose. While our financial result to adjust capacity to demand. These with revenue of DKK 13.6 billion and an colleagues have our deepest respect. operating profit (EBITA) of DKK 682 million was satisfactory, the contribution of our Throughout the crisis, our key concern 16,000 colleagues that made the result has been to minimise the negative impact possible was truly extraordinary. on our colleagues, while protecting the company’s long-term continuation. An Throughout the year our colleagues all-time high employee engagement worked with immense dedication and focus score and a comparatively low number of to serve our clients. Across the company, employees who were let go testifies that we adjusted to new ways of working we managed to balance commitment to which required flexibility and willingness people with financial resilience and stability. to engage from both colleagues and clients and accelerated our ability to collaborate This was also possible due to the support and engage digitally. and goodwill from governments and public institutions, who offered support schemes This way we managed to maintain close that allowed us to retain colleagues who relations with our clients and partners and would otherwise have been adversely many significant and exciting projects have impacted by the pandemic. 8 Letter from CEO and Chair 1,127 25.0 20.3 468 7.0 259 5.3 5.4 5.0 5.7 4.2 2.8 -4.1 -4.9 0.8 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 2018 2019 2020 EBITA margin % Revenue growth % Organic growth % Acquisition growth % Free Cash flow DKK million ‘Our shared ambition We would like to express our thankfulness sustainable societies where people and Within our Management Consulting and appreciation of the strong public/ nature flourish. business unit, we formed a new global is to pioneer holistic private collaboration during 2020. We also spearhead organisation that will and sustainable thank our owners, The Ramboll Foundation With the acquisition of Henning Larsen and offer strategic advice to private and and other shareholders, who abstained Web Structures in 2020, we made another public organisations on sustainable architecture and from receiving dividend. important strategic step to deliver on our transformation. We consider this an landscape solutions mission. import development in our sustainability by combining 2020 was the year where Ramboll portfolio that will benefit many of our celebrated its 75-year anniversary. The In 2020 Henning Larsen delivered their clients and stakeholders going forward. cutting-edge design legacy of our founders Børge Ramboll and best result ever and during the year thinking with deep Johan Hannemann and the core beliefs we worked to shape the strategy and All in all, we would like to express our technical insight.’ they instilled in the company continue to organisational model for our new shared thankfulness and deep appreciation to guide and inspire, and has been a solid business unit for architecture, landscape our colleagues and stakeholders whose cornerstone in how we handle the crisis and urbanism employing 600 colleagues dedication and engagement made 2020 ‘The Ramboll Way’ just as it informs the globally.