We notice the uncertainty in the markets we operate in is increasing. Several global developments continue to create a tough business environment. It is not easy to predict how the developments will play out for our clients and for our company. However, more than 140 years of experience gives us confidence that we can weather any storm. Our focus on our strategy, Stronger25, and our Global Leading Markets help us concentrate on what is significant. Our purpose, Enhancing Society Together, guides us towards the areas where we can make the most impact.
Maintaining financial sustainability, while realising opportunities
We are confident that our growth rate will continue in 2023. It is our ambition to improve our profitability as well. Despite the economic uncertainty, high inflation, and geopolitical tensions, the outlook for our financial performance remains positive. Looking at the group’s current liquidity and solvency as well as the forecast stable operating cash flow, Royal HaskoningDHV's financial position is very healthy and strong. We have long standing relationships with our clients. Over the past years, there has been an increasing call for sustainable solutions, driven by legislation, political leaders, organisations and companies, including larger investments and more demand for projects with sustainable profiles. The climate transition, investments in emissions reduction and phasing out the fossil economy in the future is creating a substantial long-term opportunity and demand for our services.
Using our expertise in engineering, environment, energy, industry, building, mobility, transport, maritime and water supported by the accelerating digitalisation and technology we can develop solutions in many areas. Our continuing investments in our digital and consultancy capabilities, our domain expertise and recent acquisitions enable us to be a trusted partner for our clients.
Our people are working hard to support existing and new clients with their challenges. With increased operating costs and the status of the economy, we will continue to focus on our pricing strategy to ensure it reflects the market. We will be looking critically at our operations to identify areas where efficiency and digitisation can make our work simpler. In this way, we can support our company by reducing costs and help our people focus on what they do best: use their knowledge and expertise to address the challenges faced across our society and the environment.
Being an employer of choice for existing and new employees
We believe that our purpose brings a sense of direction and belonging which is attractive and motivating for our people. We are a “people first” company. Our employees have shown us that they are happy to work for Royal HaskoningDHV. We will continue our investments in talent development and training in key areas of our business – such as project management, digital capabilities and the Energy Academy. At the same time, attracting new talent will be key to ensuring our growth continues as a company. This will remain a priority in 2023. We want to ensure everybody feels welcome and valued at work by safeguarding and - where needed - improving diversity, equality, and inclusiveness. In 2023, we will set diversity targets across the organisation.
Related to our company portfolio, there is one change in 2023 and one intended change.
Our Canada and US-based consultancy firm InterVISTAS becomes an employee-owned company following a buyout from Royal HaskoningDHV. The separation from Royal HaskoningDHV took place on 1 March 2023 and will allow InterVISTAS the flexibility and freedom to pursue business and opportunities to execute its 2023-2027 strategic plan. Royal HaskoningDHV and InterVISTAS continue their collaboration as trusted partners on strategic projects.
There is a joint intention for the South African operation to become a local company, majority owned by management and employees in 2023. This will give them flexibility and independence to acquire work in profitable South African market segments that are not in the focus of our Stronger25 strategy. At the same time, it will improve their Broad-Based Black Economic Empowerment status which is needed to secure work in the public sector. Royal HaskoningDHV and the South African operation will continue their fruitful collaboration on strategic projects and the Global Leading Markets of Royal HaskoningDHV. Royal HaskoningDHV will maintain a minority share for at least 3 years.
Enhancing Society Together
Impact at scale can only be achieved through the work we do for our clients. Our purpose remains at the core of all our actions in 2023. The Purpose Matrix – which measures our contribution to society in five key areas - was launched last year. In 2023 we will start collecting the data and act on the insights. We will also extend the use of the matrix to guide us in measuring and improving our contribution to society.
Amersfoort, the Netherlands
March 16, 2023
Erik Oostwegel (CEO)
Jasper de Wit (CFO)