Annual Figures 2010 DHV Group

- Good international performance, particularly in Africa and North America
- Restructuring in the Netherlands prompted by stagnating public sector market
- Leadership in sustainability confirmed

The DHV Group, an international engineering consultancy, achieved a turnover of 469 million euros in 2010, a modest decrease compared to 2009. Strong performance was once again seen in Africa - especially South Africa - and in North America. Asia showed a slight decline, while Poland and Portugal remained stable. DHV in the Netherlands faced stagnation in the public sector.

In 2010, the DHV Group played a role in a number of major events such as the Vancouver Winter Olympics, the World Expo in Shanghai and the FIFA World Cup in South Africa. The year brought many positive developments, including orders for DHV's innovative Nereda® water treatment technology from both the Netherlands and South Africa. A national company was established in Vietnam. However, some significant parts of the organization did not meet their profitability targets.

The weaker market in the Netherlands was the main cause of a decrease in recurring EBITA to 10.2 million euros. Capacity is being adjusted accordingly and activities with inadequate profitability are being wound down. The net result was a negative 9.3 million euros, taking into account an amount of 15 million euros for one-off items, mainly for restructuring in the Netherlands.  

Developments in home markets in 2010

The situation in the Netherlands was marked by overcapacity and price-based competition. A more positive note was the steady and growing workload for major infrastructure projects, national water programs and the demand for consultancy services in legal, finance and sustainability. Portugal performed well despite the difficult economic situation. Poland benefited from a number of new infrastructure, water and environment project orders in the run-up to the 2012 UEFA European Football Championship. It was a successful year for SSI in South Africa which also benefited from FIFA World Cup related project orders. Mining engineering consultancy Turgis benefited from the growing demand for raw materials. In China, DHV signed a number of contracts for new water treatment plants, coastal development projects and sustainable buildings. In Indonesia, the first mining engineering contracts were acquired. DHV in India performed well in water treatment and highways. In the United States and Canada, DHV's strategic partner Delcan achieved good financial results, primarily from large transportation projects.
In the Aviation sector, both NACO and InterVISTAS recovered from the significant market decline of 2009. The upturn was particularly marked in the Middle East, with new airport development projects in Kuwait and Saudi Arabia.

Sustainability

The DHV Group is highly committed to integrity, reduction of carbon emissions and increased diversity.
In 2010 the DHV Group climbed from 18th to 11th place in the Transparency Benchmark for CR Reporting of the Dutch Ministry of Economic Affairs, Agriculture & Innovation and was once again overall winner in the 'Services' category. The Group also came first in the Scenter survey of annual reports, which examines the transparency of policy.
In 2010, the DHV Group became the first engineering consultancy to have its Business Integrity Management System officially audited and assured, whereby the company was granted the Active Anti-Corruption Certificate.
The DHV Group operates climate-neutral. In 2012 the company will have its own emissions compensation program. Until then, excess emissions will be compensated externally. In 2010, the carbon footprint per FTE was 3.7 ton, representing an increase of 0.3 ton on the preceding year. This increase is primarily due to improved carbon emissions insights and reporting procedures world-wide.
In terms of diversity, DHV in the Netherlands is on track to having at least 20% of the top positions filled by women by the year 2013.

Sustainability within projects is our most significant contribution to a sustainable living environment. For example the master plan by DHV and the University of Wageningen for the Greenport Caofeidian Agropark, a sustainable agricultural production site which will ensure the continuity of food supplies to this rapidly growing region of China. The District Water Board Veluwe in the Netherlands will be able to make significant reductions in its use of space, energy and chemicals through the adoption of DHV’s new Nereda® water treatment technology. In California, Delcan has designed an advanced transportation management system which will ensure smoother traffic flow, and hence reduced vehicle emissions. NACO advised operators of the new international airport in Kunming (China) on measures to reduce air-pollution.

'Building Futures' is the motto for the DHV Group's contributions to society. In 2010, this was once again demonstrated through various sponsorship arrangements and staff initiatives, to which even more was devoted than in 2009. The best practice is the SSI Saturday School Initiative in which SSI employees tutor disadvantaged children in technical subjects.

Awards

Hydroprojekt in Poland was awarded the Green Laurels environment award. In the Netherlands, DHV won the 'Vernufteling' award for the most innovative project by an engineering consultancy. In South Africa, SSI collected a number of prizes, including the Consulting Engineers South Africa's Engineering Excellence Award for the Mgeni Viaduct in KwaZulu-Natal.

Strategy and prospects

The DHV Group will focus its innovative and sustainable solutions even more on the markets of Transportation and Water and Environment. The relevant areas of expertise include Aviation, Intelligent Transport Systems (ITS) and Water Treatment. The Group's home market strategy will remain, combining a strong client focus with top expertise. The target of achieving 90% of turnover on the home markets continues to apply, with an emphasis on acquiring more work in the private sector.

In Europe the outlook for growth is limited given the announced public sector budget cuts in both the Netherlands and Portugal. In Poland growth expectations are better, stimulated in part by the 2012 UEFA European Football Championship as well as Poland's plans for flood protection. In Africa and elsewhere mining activities continue to grow, providing opportunities for mining and related infrastructure work. In South Africa, SSI will focus on the government's ambitious plans to expand the rail infrastructure and improve access to drinking water. The aviation market will see further improvement worldwide. NACO anticipates growing demand for new airports in the Middle East and Asia in particular. Continued strong economic growth in Asia will have positive effects for all DHV home countries in the region. In China for example, the robust demand for water treatment technology is expected to continue. In North America, the government stimulus packages will continue to play an important role.

The DHV Group expects results to recover in 2011, partly due to the restructuring process implemented in the Netherlands.

Integrated Annual Report 2010

In the Annual Report the DHV Group integrates sustainability and financial reporting.
A printed summary will be available in limited numbers.