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Annual Report 2009 DHV Group

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  • Consultancy and Engineering

    Annual Report 2009 DHV Group

    dhvgroup.com

    Gateway to solutions

    Annual Report DHV Group 2009

  • 9 Jan SSI wins Consulting Engineering South Africa Award for Mentoring Company of the year. 16 Jan DHV and Delcan commissioned to develop flood protection plan for Canadas Fraser delta. 17 Jan Dutch State Secretary Huizinga visits Sea Defense project in Aceh, Indonesia.1 March Acquisition of NPC strengthens capability in stations and rail.11 March Aviation consultancy profile expanded with increased stake in North American Innova.16 March Fifth contract signed for Wastewater Treatment Plant in Australia. 24 April Annual prize from the Dutch Amstel, Gooi and Vecht Water Board for 'Sustaenergy - Green Gas' innovation. 10 May DHV joins the Dutch economic mission to South Africa and the opening of the Plakkies plant. 2 June Delcan iMove-system for Traffic Management and ITS wins Global Road Achievement Award. 2 June Hydroprojekt wins contracts for Polish Wloclawek dam and 160-MW hydropower project. 17 June NACO wins International Award Royal Institute of British Architects for Beijing Capital Airport Terminal Building.30 June TEC wins design contract for bridge and tunnel linking Hong Kong, Macau and China. 30 July Contract awarded for clean and safe drinking water project for 1,5 million people in Malawi.27 Aug Renovation of the head office is started, leading to significant energy savings.3 Sep Project award for new eco-city on the Bohai Sea, China.12 Sep Launching sponsor of the Henry Hudson 400 H209 water conference in New York. 24 Sep NACO wins The Hague Entrepreneurship Award.25 Sep Funding of two new biodiversity concepts by Dutch Ministry of Agriculture, Nature and Food Quality.29 Sep DHV, the Municipality of Utrecht and Maurik Groot Ammers win Dutch SIKCup for the Utrecht Griftpark project.15 Oct SSI wins two project awards for Engineering Excellence from the South African Institution of Civil Engineering.21 Oct DHV led consortium upgrades Polish infrastructure for the 2012 European Football Championship.15 Nov DHV wins the Rietveld 2009 Public Prize for the design of the Simed Healthcare building, the Netherlands.20 Nov DHV designs movable storm surge barrier for Nakdong river in South Korea. 9 Dec Contract signed for the expansion of the Dutch Eems harbor in Groningen. 14 Dec Significant commission for improving navigability in Mekong delta project in Vietnam. 31 Dec DHV is the first climate-neutral engineering and consultancy company in the Netherlands.

    The project illustrated on the cover is the extension of the A2 motorway near Utrecht, the Netherlands.

    Highlights 20092009 was a year of challenges in many respects. The DHV Group met these challenges head-on. Through the combined efforts of 5,500 people at 75 locations in 9 home countries, we connected and delivered. Our turnover continued to grow and operational results remained positive. We also continued to invest in the future through training programs, cross-assignments, and one-company initiatives such as the extension of our ICT platform and knowledge sharing.

    9-1 CESA Award

    3-9 Eco-city China

    1-3 Acquisition NPC

    10-5 Economic mission

    2-6 Wloclawek dam

    9-12 Harbor expansion

  • Key Figures 2

    Profile 4

    Report of the Supervisory Board 6

    Report of the Executive Board 8 Strategy and Policy 8

    Main Developments of 2009 12

    Financial Performance 2009 16

    Prospects for 2010 17

    Developments in our Global Network 18

    Projects - Connect & Deliver 27 Transportation 28

    Water 30

    Building and Industry 32

    Spatial Planning and Environment 34

    Aviation 36

    Financial Statements 2009 38 Consolidated Balance Sheet 38

    Consolidated Profit and Loss Account 39

    Consolidated Statement of Changes in Equity 40

    Consolidated Cash Flow Statement 41

    Summary of Significant Accounting Policies 42

    Notes to the Consolidated Financial Statements 46

    Company Balance Sheet 58

    Company Profit and Loss Account 58

    Notes to the Company Financial Statements 59

    Other Information 64

    Shareholding Structure 67

    Risks and Risk Management 68

    Structure and Management DHV Group 70

    Addresses 71

    Colophon 73

    Corporate GovernanceThe DHV Group is guided by the Dutch corporate governance code, inasmuchas it applies to DHV Holding B.V. as a private, unlisted company. Exceptions tothe Codes principles and best practice provisions are listed in our CorporateGovernance Report. The Report and further information concerning the DHVGroups Code of Conduct, whistle-blower scheme, and regulations for theExecutive Board, Supervisory Board, and Audit Committee can be found atwww.dhvgroup.com/corporategovernance.

    Contents

    JV 2009 Content ENG.indd 2 23-03-10 16:11

  • 52

    17

    15

    9

    7

    Turnover by client group(in %)

    Turnover by market(in %)

    Turnover by region(in %)

    The NetherlandsAfricaAsiaEurope (excl. the Netherlands)North America

    TransportationWaterBuilding and IndustrySpatial Planning and EnvironmentAviation

    GovernmentPublic utilitiesIndustryInternational Development Agencies

    46

    24

    24

    6

    37

    24

    20

    14

    5

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    2005 2006 2007 2008 20090

    10

    20

    30

    40

    50

    60

    70

    80

    2005 2006 2007 2008 20090

    100

    200

    300

    400

    500

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    2005 2006 2007 2008 2009

    2005 2006 2007 2008 2009

    229.0

    269.4 274.8

    325.3

    50.8

    58.3 59.963.2

    3.7

    7.3

    6.0

    9.4

    5.0

    2,171

    1,883

    2,055

    2,298

    2,196

    2,534

    3,030

    2,290

    4,0544,353

    4,730

    5,320

    3,159

    2,338

    5,497

    300.6

    351.6

    395.0

    467.7

    346.5

    480.8

    72.5

    Shareholders equity( millions)

    Net profit( millions)

    Net turnover and Added value( millions)

    Net turnover

    Added value

    The Netherlands

    Outside the Netherlands

    Workforce

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    2005 2006 2007 2008 20090

    10

    20

    30

    40

    50

    60

    70

    80

    2005 2006 2007 2008 20090

    100

    200

    300

    400

    500

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    2005 2006 2007 2008 2009

    2005 2006 2007 2008 2009

    229.0

    269.4 274.8

    325.3

    50.8

    58.3 59.963.2

    3.7

    7.3

    6.0

    9.4

    5.0

    2,171

    1,883

    2,055

    2,298

    2,196

    2,534

    3,030

    2,290

    4,0544,353

    4,730

    5,320

    3,159

    2,338

    5,497

    300.6

    351.6

    395.0

    467.7

    346.5

    480.8

    72.5

    Shareholders equity( millions)

    Net profit( millions)

    Net turnover and Added value( millions)

    Net turnover

    Added value

    The Netherlands

    Outside the Netherlands

    Workforce

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    2005 2006 2007 2008 20090

    10

    20

    30

    40

    50

    60

    70

    80

    2005 2006 2007 2008 20090

    100

    200

    300

    400

    500

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    2005 2006 2007 2008 2009

    2005 2006 2007 2008 2009

    229.0

    269.4 274.8

    325.3

    50.8

    58.3 59.963.2

    3.7

    7.3

    6.0

    9.4

    5.0

    2,171

    1,883

    2,055

    2,298

    2,196

    2,534

    3,030

    2,290

    4,0544,353

    4,730

    5,320

    3,159

    2,338

    5,497

    300.6

    351.6

    395.0

    467.7

    346.5

    480.8

    72.5

    Shareholders equity( millions)

    Net profit( millions)

    Net turnover and Added value( millions)

    Net turnover

    Added value

    The Netherlands

    Outside the Netherlands

    Workforce

    0

    1

    2

    3

    4

    5

    6

    7

    8

    9

    10

    2005 2006 2007 2008 20090

    10

    20

    30

    40

    50

    60

    70

    80

    2005 2006 2007 2008 20090

    100

    200

    300

    400

    500

    0

    1,000

    2,000

    3,000

    4,000

    5,000

    6,000

    2005 2006 2007 2008 2009

    2005 2006 2007 2008 2009

    229.0

    269.4 274.8

    325.3

    50.8

    58.3 59.963.2

    3.7

    7.3

    6.0

    9.4

    5.0

    2,171

    1,883

    2,055

    2,298

    2,196

    2,534

    3,030

    2,290

    4,0544,353

    4,730

    5,320

    3,159

    2,338

    5,497

    300.6

    351.6

    395.0

    467.7

    346.5

    480.8

    72.5

    Shareholders equity( millions)

    Net profit( millions)

    Net turnover and Added value( millions)

    Net turnover

    Added value

    The Netherlands

    Outside the Netherlands

    Workforce

    2 Key Figures

    Financial JV 2009 UK-V15.indd 2 23-03-10 15:59

  • 3Key Figures

    Key Figures

    Turnover

    Added value

    Results

    Operating profit before profit sharing and goodwill amortization

    Profit sharing

    Operating profit before goodwill amortization

    Net profit

    Return on average shareholders equity (%)

    Operating margin before goodwill (%)

    Earnings per share (e)

    Dividend per issued class B share (e)

    Capital employed

    Total assets

    Long term capital

    Shareholders equity

    Group equity

    Group equity as a percentage of total assets (%)

    Financial position

    Net working capital

    Cash flow

    Change in net cash

    Workforce

    Staff costs

    Number of staff (ultimo)

    ( millions, unless otherwise stated)

    300.6

    229.0

    7.7

    1.4

    6.3

    3.7

    7.3

    2.7

    0.68

    0.25

    137.4

    83.7

    50.8

    51.3

    37.4

    26.7

    10.6

    0.3

    160.1

    4,054

    351.6

    269.4

    17.0

    3.8

    13.2

    7.3

    13.4

    4.9

    1.39

    0.50

    163.4

    90.7

    58.3

    59.7

    36.5

    20.1

    14.8

    15.0

    180.1

    4,353

    395.0

    274.8

    18.9

    5.9

    13.0

    6.0

    10.2

    4.7

    1.24

    0.45

    191.7

    96.4

    59.9

    61.7

    32.2

    19.9

    12.8

    -9.6

    186.5

    4,730

    467.7

    325.3

    27.6

    6.8

    20.8

    9.4

    15.3

    6.4

    1.97

    0.70

    231.9

    99.8

    63.2

    65.3

    28.2

    26.2

    19.0

    -23.6

    209.8

    5,320

    480.8

    346.5

    18.9

    4.9

    14.1

    5.0

    7.4

    4.1

    1.04

    0.40

    242.0

    123.8

    72.5

    76.9

    31.8

    8.1

    15.4

    37.8

    229.7

    5,497

    DefinitionsAdded value Operating income less cost of work subcontracted and other external cost

    Operating margin Operating profit / Added value

    Earnings per share Net profit / Number of ordinary shares issued

    Net working capital Current assets less current liabilities (excluding cash and cash equivalents less amounts owed to credit institutions)

    Cash flow Net profit plus amortization and depreciation

    Change in net cash Movement in cash and cash equivalents less amounts due to credit institutions

    * The 2006 figures include 18 months results of the Africa region.

    20052006*200720082009

    Financial JV 2009 UK-V15.indd 3 23-03-10 15:59

  • 4Funae Award - SEED, Mozambique

    Impact Assessment, Czech Republic

    Mekong delta-project, Vietnam

    Charity outing, the Netherlands

    Mission Our mission is to provide multidisciplinary services for the sustainable development of our living environment, in a close relationship with clients, employees, and partners, based on mutual loyalty, while providing a solid return to our shareholders.

    VisionWe aim to be a leading international engineering consultancy firm, active in both public and private sectors, open to partnerships based on shared values.

    ClientsOur major clients are: Governments Public Sector and Semi-Government Industry, Commercial Services, Contractors, and Developers International Development Agencies

    Key valuesWe are an independent, employee owned company.Our key values are integrity, respect and freedom. We act with a deep commitment to social responsibility, integrity, and accountability. Our activities are characterized by respect for others and the environment. We promote empowerment, coupled with strong personal and professional responsibility. We welcome different perspectives and support freedom of thought and action.

    The DHV Group is a global provider of consultancy and engineering services in the following markets: Transportation, including Aviation Water Building and Industry Spatial Planning and Environment

    Profile

    JV 2009 profiel ENG def.indd 1 23-03-10 15:37

  • 5Profile

    Added valueClients call on us to achieve their ambitions through projects and partnerships. We provide our services with passion and pride, adding value through: Reliable quality performance, delivered on time and

    within budget. An understanding of the clients needs and respect for

    their stakeholders. State-of-the-art expertise and innovative solutions. Local delivery of world-class solutions.

    Corporate responsibilityAt the DHV Group we aim for a positive impact on economies, societies and eco-systems through the services that we provide and in our own operations. We are signatory to the United Nations Global Compact and the Partners Against Corruption Initiative (PACI) of the World Economic Forum.

    Profile

    ServicesWe develop innovative concepts in consultancy and engineering. Services cover the entire project cycle and include: Business and Policy Consultancy Technical Advice Planning Design and Engineering Program, Project, and Construction Management Project Development and Turnkey Delivery Operations Management Asset Management

    Expertise positionsLooking to client needs, we focus on: Airports Buildings Environmental Management Highways, Bridges, and Tunnels Intelligent Transport Systems Marine, Ports, and Waterways Mass Transit and Rail Urban and Regional Planning Water Management Water Treatment

    Key Figures 2009Net turnover 481 millionNet profit 5 million

    Staff and Offices by RegionEurope 2,950 in 20 officesAsia 900 in 10 officesAfrica 1,000 in 25 officesNorth America 650 in 20 officesTotal 5,500 in 75 offices

    We are active worldwide through a network of local offices in Europe, Asia, Africa, and North America. Operations in the following home countries account for the greater part of our total turnover: Europe: The Netherlands, Poland, and Portugal Asia: China, India, and Indonesia Africa: South Africa North America: Canada and the United States of America

    JV 2009 profiel ENG def.indd 2 23-03-10 15:37

  • Report of the Supervisory Board

    Recommendations to the Annual Shareholders MeetingWe have pleasure in presenting the DHV Group Annual Report for 2009. The annual accounts were prepared by the Executive Board and audited by PricewaterhouseCoopers Accountants of the Netherlands. The annual accounts were signed following discussions with the Executive Board and the external accountants. We support the proposal of the Executive Board to distribute a dividend of 0.40 (2008: 0.70) per depositary receipt for issued B shares from the 2009 profits. We recommend that the annual accounts for 2009 be adopted and the incorporated dividend proposal be approved. Lastly, we call on you to discharge the Executive Board from liability for its management, and the Supervisory Board for its supervision during the 2009 financial year.

    6

    A.B.M. van der PlasSeen van der Plas (b. 1938, Dutch, m) joined the DHV Group Supervisory Board in 1998. His last term of office will

    expire in 2010. Mr. Van der Plas is chairman of the Supervisory Board of the Netherlands Research School on Transport, Infrastructure and Logistics TRAIL (a collaborative initiative of five Dutch universities), board member of the Next

    Generation Infrastructures Foundation (a large international consortium of knowledge institutions, market players and governmental bodies), and member of the Supervisory Board of the Rotterdam Philharmonic Orchestra.

    W. van VonnoWim van Vonno (b. 1941, Dutch, m) joined the DHV Group Supervisory Board in 2006. He has been Chairman since 2007. His current term of office will expire in 2010. Mr. Van Vonno is Chairman of the Supervisory Boards of Convest and Publiek Belang Electriciteitsproductie B.V. and Van Nieuwpoort, and a member of the Supervisory Boards of Van Oord, Optimix Investment Funds, Van Boldrik Group, Royal BAM Group, SADC, Bank for the Construction Industry, and Mammoet Holding. He is also a member of the Investment Committee of NPM Capital, member of the Boards of ING Continuity Foundation, Foundation Protection TNT, and Mediq Preferential Stock Foundations. Furthermore, he is Arbitrator with the Arbitration Board for the Metal Trade and Industry Foundation, member of the Executive Board of NEN, and President of the Nomination Committee Dockwise.

    J.H.M. LindenberghHessel Lindenbergh (b. 1943, Dutch, m) joined the DHV Group Supervisory Board in 2003. His current term of office will expire in 2011. Mr. Lindenbergh is chairman of the Supervisory Boards of Fortis Bank Nederland, NIBC, Agendia, and the Bank for the Construction Industry. He is also member of the Supervisory Boards of the University of Amsterdam in the Netherlands, Gamma Holding, Ortec International, Doctors Pension Funds Services, and Zeeman Group. He is also a member of the Boards of Stichting Vopak, Foundation Protection TNT, and Wolters Kluwer Preference Shares Foundation.

    A.P.M. van der PoelArthur van der Poel (b. 1948, Dutch, m) joined the DHV Group Supervisory Board in 2004. His current term of office will expire in 2012. Mr. Van der Poel is chairman of the Supervisory Board of semiconductor equipment manufacturer ASML, member of the Board of smartcard company Gemalto, and member of the Supervisory Board of Dutch soccer club PSV.

    S.M. DekkerSybilla Dekker (b. 1942, Dutch, f) joined the DHV Group Supervisory Board in 2007. Her current term of office will expire in

    2011. Mrs. Dekker is a former Netherlands Minister of Housing, Spatial Planning and the Environment. She is a member of the Supervisory Boards of Dutch Municipalities Bank, AKZO Nobel Nederland and Kristal. She chairs the Strategic Advisory Council of TNO Built Environment and Geosciences and the Supervisory Councils of the Antillean

    Co-Financing Organization, the Dutch Diabetes Fund, and the Dutch Cadastre (Land Registry and Mapping Agency). She is also member of the Supervisory Council of the Knowledge for Climate Research Program, and MDLI Moroccan

    Dutch Leadership, President of the Dutch Taskforce Talent to the Top, the Committee Fundamental Exploration Building, and Round Table on Project Mainport Rotterdam.

    JV 2009 RvC ENG def.indd 1 23-03-10 15:38

  • Report for 2009Supervisory Board MeetingsDuring 2009, the Supervisory Board met with the Executive Board and the Director of Finance & Control on eight occasions, the external accountants also attended when the first half-year and annual figures were discussed. All board members had a good record of attendance. Ongoing matters were also regularly discussed by the Chairmen of the Supervisory and the Executive Boards outside the context of these meetings.

    On several occasions the Supervisory Board discussed the Groups strategy for the longer term, the main risks of the business and the result of the assessment by the Executive Board of the design and effectiveness of the internal risk management and control systems.

    Naturally, the impact of the financial and economic crisis and the measures taken to deal with its effects were tabled at every meeting of the Supervisory Board. Other items on the agenda were the adjustment of the Business Control Frame-work, the Corporate Responsibility Report, the renovation of the Amersfoort office and compliance. As in previous years, the Supervisory Board conducted an assessment of the suitability of internal candidates for senior management positions. The Supervisory Board approved the acquisition of the shares in Innova Aviation Consulting in the USA, and the acquisition of NPC rail consultants in the Netherlands.

    Audit Committee MeetingsThe Audit Committee, consisting of Mr. Lindenbergh and Mr. Van der Plas, met on three occasions. The first meeting dealt with the annual accounts for 2008, the external auditors report and the finalization of the budget for 2009, the second with the first half-year figures, the auditors Audit Service Plan and the evaluation of the outsourcing of the ICT. The third meeting was dedicated to the budget for 2010. In addition, the Committee reviewed progress reports on the replacement of the business information system and the annual report of the Internal Audit.

    Internal Deliberations The board members met to discuss their Boards own performance, the performance of the Audit Committee, and the contribution of each member, and to assess the Boards composition. They concluded that the Board is properly constituted and that its members possess the desired competencies, all in accordance with the Profile of the Supervisory Board. All members are independent as provided in best practice provision III.2.2 of the Dutch Corporate Governance Code.

    Mr. Lindenbergh is a financial expert as provided in best practice provision III.3.2 of the Code. The Supervisory Board also reviewed the performance, composition and remuneration of the Executive Board. In the judgment of the Supervisory Board, the Executive Board both as a group and in terms of its individual members possesses the requisite competencies and functions appropriately.

    Corporate Governance DHV Groups Corporate Governance Report and further information concerning the remuneration policy, the Code of Conduct, whistle-blower scheme, and regulations for the Executive Board, Supervisory Board and Audit Committee can be found at www.dhvgroup.com/corporategovernance. The remuneration of the Supervisory Board is reported on page 53.

    Composition of the Supervisory Board There were no changes in the composition of the Supervisory Board in 2009. On the occasion of the 2010 Annual Share-holders Meeting, Mr. Van der Plas will step down after having served the maximum term of 12 years. The members of the Supervisory Board wish to express their appreciation of his valuable contribution over the years. The Supervisory Board nominates Mr. C.P. Veerman for appointment as a member of the Supervisory Board. At the 2010 Annual Shareholders Meeting Mr. Van Vonno will step down after having completed his first four-year term. The Supervisory Board nominates Mr. Van Vonno for reappointment for a further term of four years.

    In closing The Chairman and Vice Chairman of the Supervisory Board, as well as the Executive Board met with a delegation of the Works Council of DHV B.V. to discuss the general course of events of the company. All parties appreciated the open dialogue.

    The year 2009 was marked by the economic downturn. The DHV Group shows a positive result, the organization is tailored to market developments and is ready to meet the future, thanks to the efforts and flexibility of the staff. The Supervisory Board wishes to express its appreciation to all staff for their contribution in 2009.

    Amersfoort, the Netherlands, 12 March 2010

    W. van Vonno (Chairman)S.M. DekkerJ.H.M. LindenberghA.B.M. van der Plas (Vice Chairman)A.P.M. van der Poel

    7Report of the Supervisory Board

    JV 2009 RvC ENG def.indd 2 23-03-10 15:38

  • Report of the Executive Board

    Strategy and Policy

    Ambition, Goals and Objectives

    The DHV Group aspires to a prominent position among the worlds leading engineering consultancies. In order to achieve this ambition, we focus on four main goals:

    Growth and ProfitabilityGrowth is essential to our continuity. The size and complexity of challenges that clients face require significant depth and breadth of expertise, for which large firms are better positioned. Growth provides more opportunity for our company and people. Therefore we strive to achieve annual growth in turnover averaging at least 10%, of which half will be organic and half through mergers and acquisitions. Sound financial performance enables us to invest in our future and reward employees for their contribution. Our objectives are an operating margin of 7% on added value and an average return on shareholders equity of 15%.

    InternationalizationInternationalization is important to continuity and risk distribution. Our international network is focused on building relationships that help deliver better service locally and provide insights for future innovation. We have chosen to concentrate our operations on a limited number of home markets: Canada, China, India, Indonesia, the Netherlands, Poland, Portugal, South Africa, and the United States. This selection is based on the business environment, loyalty to customers, our market position and the opportunities for growth. We aim to be recognized in these markets as a top player in our fields of expertise. Home markets will account for at least 90% of the Groups turnover.

    InnovationIn order to fulfill our promise to deliver sustainable and state-of-the-art knowledge, we must continuously improve our skills and expertise. Innovative solutions are constantly

    Bertrand M. van Ee(b. 1957, Dutch) was appointed to the Executive Board in 2004, becoming its President on 1 January 2007.External appointments include: Member of the Dutch Trade Board. Member of the Advisory Board of the

    Dutch faculty Technology, Policy and Management Support of the Technical University Delft.

    created for projects, but we also leverage strategic innovations and invest in R&D. Our objective is to apply for at least one new patent per year. We actively participate in external platforms and aim to receive industry recognition for technical excellence and innovation each year.

    Corporate ResponsibilityThe DHV Group is a company for people from people. We recognize the interconnectivity of the triple bottom line for sustainable development (people, planet and profit). We have identified four key areas: integrity, sustainability in our projects, the impact of our own operations, and people development. Our objectives are to maintain a top quartile ranking in the annual Transparency Benchmark for Corporate Responsibility reporting of the Dutch Ministry of Economic Affairs, which is aligned with the Dow Jones Sustainability Indexes, and to achieve a 25% CO2 reduction per employee in our

    8

    JV 2009 RvB ENG def.indd 1 23-03-10 15:40

  • operations against a baseline of 2008 by 2015. In terms of people development, we provide extensive opportunity for our staff and emphasize building futures through education and capacity building in community investments. Our Corporate Responsibility reporting and our Business Integrity Management System are externally audited in support of transparency and continuous improvement.

    Corporate Strategy

    Our strategy for serving clients is Local delivery of world-class solutions. We aim to be top player in our home countries and international player in select expertise positions. Our strategy rests on three pillars: Differentiation, Home markets and a One-company concept. Together these three pillars provide the path to achieving our goals.

    9Report of the Executive Board

    Strengths Expertise in water, and transportation,

    including our own investments in innovation and R&D.

    Culture of sustainable development and corporate responsibility.

    Strong local presence leveraged with international network.

    Known for finding integrated and multi-disciplinary solutions to complex issues.

    One-company concept.

    Opportunities Renewed focus on infrastructure as part of

    government stimulus packages. Impact of climate change on flooding and

    the availability of fresh water. Population growth and higher standards of

    living exponentially increase demand for energy, water and mobility.

    Strong development of eastern economies.

    Weaknesses Low profile approach, resulting in

    insufficient exposure of capabilities. Responsiveness and efficiency must be

    improved in parts of our organization. Undercapitalizing on our innovations. Lower profitability related to portfolio mix

    and a tendency to go beyond scope.

    Threats Economic slowdown. Projects are cancelled

    or delayed and prices are under pressure. Consolidation of mid-sized competitors and

    new entries increases competition in our home markets.

    Labor markets for top talent remain tight. Business integrity pressures.

    Piet W. Besselink(b. 1958, Dutch) joined DHV in 1989. Appointed to the Executive Board in 2006 and became its Vice President on 1 January 2007.External appointments include: Member of the Advisory Board of Deltares,

    the Dutch institute for Delta Technology. Member of the TNO Geological Survey of

    the Netherlands. Member of the Board of Railforum (a Dutch

    platform for the exchange of knowledge and experience in rail transport).

    The following SWOT table illustrates the most significant factors which influence our current business and future strategy.

  • into regional expertise centers and collaborate on larger projects with shared resources. Strong local presence ensures that solutions are tailored to local conditions and that close relations are maintained with customers. With the choice of countries and market segments in which we operate, our zero tolerance policy on corruption has been turning the threat of business integrity pressure into a strength.

    Retain and attract talent in tight labor market. Despite the economic crisis, we see a tight labor market for the type of talent that our business requires. This is a threat to further growth and must be addressed, especially as a key part of the previous two challenges. Employee feedback indicates that the innovative quality of the work that we do, and our culture of corporate responsibility and sustainable development, are strengths in attracting and retaining employees. However, capabilities and opportunities are still not sufficiently recognized nor communicated. This weakness needs to be addressed. Internally, by focusing on better knowledge sharing, communications, mentoring and career planning. Externally, by seeking greater public exposure for our projects and our commitment to sustainability. These initiatives will be implemented on a local basis, but with a one-company framework in order to increase impact.

    Taking into account the SWOT factors and our overall goals, we have chosen to focus on the following key challenges:

    Grow significantly in the Water and Transportation markets to meet increased demand. Our strengths in Water Treatment, Water Management and Coastal Protection are differentiaters which apply directly to opportunities related to climate change and population growth. Particular issues include water scarcity, sanitation and flood protection. Areas in which we could be capitalizing more on our expertise and innovation. We aim to support stimulus packages in Transportation by providing multi-disciplinary consulting and program oversight services. There is significant opportunity to enhance mobility through our innovative Intelligent Transport Systems. The high growth in eastern economies entails more regional, as well as international travel. To this end, we aim to further develop regional aviation capability.

    Mitigate threat of new competition through depth of local knowledge and ready access to international network. Our home markets are projected to have some of the highest growth levels of their regions. This is attracting new competition and mid-sized players are consolidating to address these opportunities. In order to mitigate the threat of this competition, we will further build up local capability. We aim to selectively develop local expertise

    Strengthen financial performance using current economic pressures as an impetus. The possibility of a prolonged economic slowdown presents a continued threat to growth and profitability, but is also a stimulus to increase efficiency and develop in higher margin services. The responsiveness of units to minimize underutilization has greatly improved with additional attention. There was good use of our integrated and multi-disciplinary capabilities to provide consultancy and process management for the planning and implementation of stimulus packages. Financial discipline is increasing and will be further improved through stricter project and portfolio management. This will be supported by one-company platforms such as the Business Control Framework, roll-out of our business information system and management training.

    Strategy evaluationOur strategy of Local delivery of world-class solutions and the strategic pillars: Differentiation, Home markets and One-company concept have served us well over the past years. The DHV Group is on track in achieving its goals. We have grown and improved profitability relative to our peers. The latter is not developing as rapidly as originally planned, however we continue to strengthen our balance sheet and our financial position is solid. We have begun to leverage innovation across our network and demonstrate leadership in Corporate Responsibility. Overall our

    The business group, region and holding directors. Together with the Executive Board they form the Executive Council of the DHV Group.

    Arnold Galavazi (Asia)

    Chris Engelsman (Europe)

    Roel Overakker (Aviation)

    Eugene Grter (Building and Industry)

    Vic Prins (Environment and Transportation)

    10

    JV 2009 RvB ENG def.indd 3 23-03-10 15:41

  • performance gives us the expectation that our long- term goals are achievable.

    Looking to our strategy pillars we conclude the following:

    DifferentiationWe have sharpened our profile by better aligning with defined markets and benchmarking our performance. This has guided organic growth and organizational restructuring. Our range of services and market reach have been expanded through selective mergers and acquisitions. Significant innovations have been taken to the level of registered products and successfully launched. Corporate responsibility and a focus on sustainable development is becoming a recognized quality in all our projects.

    Home marketsWe have grown operations in home countries, are taking on increasingly larger projects and have expanded into different sectors. Examples include aviation in Africa, water and environmental projects in Asia and coastal protection in North America. This was made possible by strong local presence and now offers opportunities for taking on even larger integrated projects such as eco-cities and multi model transportation hubs. The intimate knowledge of the local situation also enables us to create more sustainable solutions, involve capacity building in the community and understand environmental complexities. Our

    customers are appreciating this added value, which is resulting in more repeat business and long-term relationships. One-company conceptThe benefit of a common culture, processes and ICT platforms is starting to be realized. This shortens learning curves, increases efficiency and facilitates cooperation. Plans for the future include a high level of cooperation between units in both national and international work. A key enabler has been the interpersonal networks which were established through joint training and international expertise meetings.

    Path forwardDuring 2010 we will complete some remaining one-company items and will move ahead on the foundation

    11

    that has been built these past years. Given the risk of a prolonged economic slowdown, we will preserve and improve profitability by staying close to our customers and paying close attention to our cost base, investment levels and cash flow.

    In 2009 we began dialogue for Vision 2015, our corporate strategy paper for the coming five years which will be issued mid 2010. Vision 2015 will be about making a step change in profitability and growth compared to previous years. Home countries will feature prominently. We will focus investment on our strongest international expertise positions. The SWOT analysis on page 9 reflects key developments which we are taking into account.

    The Group provides its services through a family of brands: DHV, SSI, NACO and Delcan. These

    brands are leading players in their respective fields and actively collaborate to meet specific client

    needs, e.g. NACO-SSI for airports on the African continent and Delcan-DHV for international ITS

    solutions.

    The DHV Group has a decentralized organizational structure in order to stay close to selected

    markets. The four business groups focus on market specific consulting and engineering expertise.

    Regional operations maintain client relationships and tailor the Groups expertise to local

    circumstances, language, and culture.

    Business Groups: Environment and Transportation, Water, Building and Industry, Aviation.

    Regions: Europe, Asia, Africa, North America.

    Jim Kerr (North America)

    Eugene Grter (Building and Industry)

    Piet van Helvoort (Water)

    Marga Donehoo (Corporate Initiatives)

    Naren Bhojaram (Africa)

    Johan van Manen (Finance and Control)

    For the complete organizational structure of the DHV Group, please refer to page 70.

    11Report of the Executive Board

    JV 2009 RvB ENG def.indd 4 23-03-10 15:41

  • 2009 was a challenge on many fronts. With 5,500 people, working in 75 offices and 9 home countries, the DHV Group met these challenges head on, connected and delivered. Our turnover has continued to grow and operational results remained positive. We also continued to invest in the future, with training programs, cross assignments of people, and one-company initiatives such the extension of our ICT platform and knowledge sharing.

    Our concentration on the public sector has been positive for DHV, as well as for SSI and Delcan. We are active in large multiple-year programs supported by government stimulus packages. Work for private sector clients experienced a significant downturn. The aviation industry has also been hit hard. The flexible and entrepreneurial approach taken by Group members, adjusting to market circumstances and reducing cost, made a distinct difference in weathering the storm. Our strategy of Local delivery of world-class solutions is working better all the time. By sharpening our focus on the market and clients, and combining expertise we were able to win significant projects.

    Growth and Profitability

    The DHV Group continued to grow in 2009 despite the impact of the worldwide economic recession. Net turnover grew with 3% to 481 million, mainly through acquisitions. The operating margin was 4.1%, coming from 6.4% in 2008 and below our overall 7% target. The strongest performers this year were Africa and North America which achieved the highest margins and Asia which showed significant margin improvement. Within the markets Water, Environment and Transportation

    there were also strong results, especially from consultancy, project management and operations. Overall, the profitability of the Group was negatively impacted by a combination of underutilization of staff in parts of the organization, and price pressure on projects. Restructuring costs and additional efforts for the introduction of a new business information system were taken into account at the corporate level. The actual return on our shareholders equity is 7%, which is below the targeted average level of 15%.

    Strategic actions for 2009 Develop strategy for energy and resources.

    Deliver synergies with new member

    companies.

    Strengthen transportation and water

    profile.

    Results in 2009 Focus on mining consultancy, expanding

    services in Asia and Africa.

    Joint projects with InterVISTAS (aviation

    consultancy), Turgis (mining) and NPC

    (stations and rail).

    Acquisition of NPC, the leading rail station

    designer in the Netherlands and previously

    a part of the Dutch Railways. DHV

    participated as launching sponsor of the

    Henry Hudson 400 water conference in New

    York.

    Main Developments of 2009

    Expansion Wilhelminaharbor, the Netherlands

    12

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  • Internationalization

    The DHV Group is fortunate to be positioned in markets with relatively sound economic growth rates. Our home countries in Asia showed economic growth in the order of 5 to 10% and Poland also realized positive growth. The other home countries experienced negative growth between -2 and -5%, however all our home countries have positive economic growth projections for 2010.

    In China the results in the water market have increased significantly, with the emphasis on turnkey delivery of water treatment facilities for public and private sector clients. Sanitation and flood protection projects in Indonesia made good progress and improved the quality of life of many people. In India developments in Public Private Partnerships (PPP) show great promise. In the Netherlands, our position in the national highway and rail sector was strengthened, supported by additional government funding and government measures to expedite project implementation. Most of our industry clients showed a significant downturn in 2009, with some indications for modest recovery in 2010. We have improved our position on asset management of infrastructure and buildings based on reducing total cost of ownership. The demand for water, environmental and sustainability services remained at a high level. Regional and urban planning for municipal clients experienced a decline towards the end of the year. EU funding and Eurocup 2012 fueled an impressive series of highway projects in Poland, providing new opportunities for DHV in the role of independent engineer. The market for flood management and hydropower is showing a healthy outlook and our combined companies are well positioned to increase their market share. Restructuring in Portugal resulted in new management and a new company profile, now focusing on water and environment consultancy, project supervision and asset management. Several signature projects were awarded

    including the environmental study for Lisbon airport and the river basin projects for the Tejo and Douro rivers. South Africa showed very strong results, based on major ongoing projects for rail and road infrastructure, as well as water and energy supply. This included the countrys largest environmental compliance analysis for the Gautrain rapid rail link and projects related to the World Cup 2010. New activities, such as the turnkey delivery of schools are also paying off. The allocation of funds for the Cup resulted in lower spending on other basic services, which is expected to increase again in the second half of 2010. Aviation activities on the continent are expanding. NACO-SSI is involved in supervision contracts in Kenya, Botswana and Tanzania.

    Nelson Mandela Stadium, Port Elizabeth, South Africa

    Canada and the USA showed overall strong results, with Delcan providing project oversight within large infrastructure programs such as the New York MTA Independent Engineering contract and as solution provider for traffic management systems. Projects of note include sustainable building design. We are particularly delighted with the Richmond skating oval for the 2010 Winter Olympics. InterVISTAS has brought a full new avia-tion sector of strategic planning, design, and consulting to the DHV Group. Our home markets account for 85% of our total turnover versus our objective of 90%.

    Strategic actions for 2009 Review portfolio of countries vs. goals of the

    Group, which may result in adjustments,

    investment and divestment.

    Roll-out business information system.

    Leverage international network. Increase

    agility to address national investment plans

    and regional dynamics.

    Results in 2009 Portugal restructured. Kenya divested.

    Africa connected to ICT network, Roll-out

    business information system delayed until

    2010.

    Strong sales increase due to government

    stimulus in China (airports, tunnel infra-

    structure, coastal eco-cities), the Netherlands

    (highways, water management), Poland

    (highways), North America (highways).

    Mergers & Acquisitions, Divestments The consultancy and project management agency NPC, formerly owned by Dutch Railways,

    joined the DHV Group. This acquisition entails a considerable strengthening of the Groups

    position in stations and rail.

    NACO and Delcan increased their stake in the North American aviation consulting firm Innova

    from 40% to 100%. Innova has merged with InterVISTAS.

    SSI sold Panafcon Ltd. in Kenya to the local management.

    13Report of the Executive Board

    JV 2009 RvB ENG def.indd 6 23-03-10 15:41

  • Innovation

    The DHV Group remains known for innovation on projects and increasingly through technological products such as Nereda and Intelligent NETworks. Building on the success of the demo facility in Gansbaai, South Africa, roll-out of Nereda has begun in earnest. The first full-scale Nereda water treatment plant was awarded in the Netherlands. This year one new patent was requested for a process to harvest green power and fertilizer from wastewater and a total of 12 patents for previous innovations were granted in various countries. In the Netherlands, DHV actively contributed to the implementation of a charter on Intellectual Property for the consulting-engineering and construction sector. The leverage of expertise has been increased through better use of the Group wide ICT system with an improved intranet and more than 100 active Community of Practice sites. International Expertise Meetings were held for Aviation, Water, Rail & Stations and Mining in order to share and scale-up the available top-expertise in the DHV Group.

    Nereda is DHVs innovative biological wastewater treatment technology, based on the unique

    characteristics of granular aerobic biomass. It provides excellent water quality through compact

    and easy to operate installations, at low energy consumption. Nereda is cost-effective and can

    be applied in new and upgrades of municipal and industrial wastewater treatment facilities.

    Strategic actions for 2009 Scale-up and commercialize technology

    innovations.

    Results in 2009 Contract awarded for first full-scale Nereda

    facility. International launch of Intelligent

    NETworks, with significant awards in the

    US and initial projects in Canada, Europe,

    Africa and South America.

    AwardsOur awards underscore our drive for excellence and innovation. Among others:

    NACO: International Award from the Royal Institute of British Architects (RIBA) for the Beijing

    Capital International Airport Terminal Building 3, China. NACO was responsible for the design

    together with Foster + Partners and Arup.

    SSI: Two Project Awards for Engineering Excellence from the South African Institution of Civil

    Engineering (SAICE) for the Nereda Waste Water Treatment Works project in Gansbaai, South

    Africa, and for the Mandena Mine Salinity Control Weir project in Madagascar.

    SSI: Mentoring Company of the Year from the Consulting Engineers South Africa (CESA).

    Delcan: Award of Merit in transportation from the Consulting Engineers of Ontario for the

    iMoveTM Advanced Traveler Information System project for Metro Vancouver, Canada.

    DHV: Annual prize for Sustae nergy Green Gas as the most notable water project in

    the Business Sector category from the Dutch Amstel, Gooi and Vecht Water Board, the

    Netherlands.

    DHV together with the Municipality of Utrecht and the company Maurik Groot Ammers:

    the Dutch SIKCup for the most innovative and cost effective soil management team for the

    Utrecht Griftpark project, a former garbage dump and gas plant site, the Netherlands.

    DHV won the Rietveld 2009 Public Prize for Simed Healthcare building, the Netherlands.

    The acquisition of NPC considerably strengthened the Groups capability in stations and rail.

    Water Treatment Technology Nereda

    Corporate Responsibility

    Transparency and IntegrityTransparency is a key factor in Corporate Responsibility. We have therefore set an objective that benchmarks our performance in this regard. The DHV Group placed 16th of over 180 entrants in the annual Transparency Benchmark for CR reporting of the Dutch Ministry of

    Intelligent NETworks is a state-of-the art software platform for traffic management designed to

    integrate a variety of control devices. It is a modular system of open architecture that is scalable

    from a small city or district, up to a full featured state wide Traffic Management Center.

    Economic Affairs, well within our target of the top 25% and in first place for the services sector.We updated our Global Code of Business Principles. The code was developed with input from many people across our company. Our principles and key values of integrity, respect and freedom are

    14

    JV 2009 RvB ENG def.indd 7 23-03-10 15:41

  • core to daily business. When we speak with clients and colleagues around the world, there is a very positive recognition for our culture and the commitment to our Business Integrity Management System (BIMS).External audits of the BIMS were conducted. The audits will be the basis for external certification. In addition, the system for whistle blowing (internal reporting) was revised and outsourced to an external party in order to ensure anonymity and an international reach. In 2009 four integrity incidents were reported and duly investigated. Two cases were closed and no violation was found. Two cases are pending.

    Community InvestmentOur focus on environmental and social aspects in the community makes a difference to the lives of people, through our projects, personal coaching and supporting initiatives such as weekend schools for disadvantaged children and Plakkies in the Netherlands and South Africa. The latter is an initiative to help people help themselves through the set-up of a commercial enterprise for fashionable slippers made from discarded tires. It was initiated by two students from the Delft University of Technology, who rallied major companies and government support to make a dream happen.

    People DevelopmentWe place a high emphasis on professional and management development opportunities for our staff. In 2009 we conducted training programs throughout the company, including the Executive Development Program at Group level. A Group wide Management Development Program and Project Management training were prepared and will be launched in early 2010 as part of our overall training house, DHV University. Added attention is being given to promoting diversity in the management levels of the company through our Management Development process, with an increased focus on developing local management and female talent.

    Climate PolicyThe DHV Group supports national and international initiatives to curb the effects of climate change. We incorporate mitigation and adaptation in projects, demonstrate our commitment in the public arena and commit to emission reduction in

    Strategic actions for 2009 Conduct Group wide professional and

    management development programs.

    Improve measurement of CO2 emissions

    and focus on reduction.

    Results in 2009 Executive Development Program continued

    in cooperation with TIAS Nimbas business

    school. Management Development Program

    to be launched in 2010.

    CO2 reduction target and policy developed.

    More information can be found in our Corporate

    Responsibility Summary. Detailed reporting is

    available on www.dhvgroup.com/cr-report.

    The acquisition of NPC considerably strengthened the Groups capability in stations and rail. DHV supports the initiative for a commercial Plakkies enterprise of fashionable slippers from car tires.

    Participants of the Executive Development Program.Call on Dutch government to reduce CO2 emissions.

    our own operations. In advance of the Copenhagen Climate Conference we signed the Copenhagen Communiqu and joined a small group of business leaders to call on the Dutch government to take real and substansive action to cut CO2 emissions by investing in clean energy, cleaner transportation, sustainable buildings and new techniques such as carbon capture and storage (CCS). In 2009 we took additional steps to solidify our own CO2 reduction through policies for facilities and transportation. We initiated the sustainable renovation of our Dutch head office building to the highest energy efficiency rating. And we have set a Group target of 25% reduction per employee by 2015. In recognition of the spirit of the Copenhagen Accord, we have also committed to compensate our reported CO2 emissions starting in 2009 for Dutch operations and Group wide from 2010 onwards.

    Report of the Executive Board 15

    JV 2009 RvB ENG def.indd 8 23-03-10 15:41

  • Financial Performance

    Key Figures ( million, unless otherwise stated) 2009 2008 change

    Net Turnover 480.8 467.7 + 3%

    Added Value 346.5 325.3 + 7%

    Operating Profit before Goodwill (EBITA) 14.1 20.8 - 32%

    Operating Margin on Added Value (%) 4.1 6.4

    Turnover Net turnover of the Group increased by 3% to 481 million, mainly as a result of mergers with InterVISTAS (end of 2008) and NPC (beginning of 2009). These two companies added 19 million to the Groups turnover.

    The economic crisis precipitated a drop in the Building and Industry and the Aviation markets. The North American region was not affected and still showed strong growth. Exchange rate differ-ences had a negative impact of 2.3 million on turnover.

    Added ValueAdded value (revenue produced by the Groups own staff) increased by 21 million (+ 7%) to 347 million in 2009, due to the two mergers (+ 19 million), organic growth of 3 million, and a negative impact of exchange rate differences of 0.7 million.

    Operating ProfitAlthough the Groups top-line growth was not heavily affected, the EBITA dropped by 7 million to 14 million, resulting in a narrower EBITA margin of 4.1%. The economic crisis mainly decreased the EBITA of the business groups Building and Industry, and Aviation.

    Projects were delayed and cancelled faster than the Group was able to adjust (primarily by transfer and reduction of staff costs). The 2009 restructuring of our Portugal operations had a one-of impact of 0.6 million on the EBITA, also the development of a new business information system negatively impacted the result with 1.0 million.

    Mergers had a break-even impact on the EBITA and currency rate differences 0.1 million positively. Total operating charges, including one-of costs of 2.1 million, increased with 27.8 million.

    GoodwillThe Group amortizes paid goodwill over a 20-year period unless there is an indication of impairment, in which case an additional component of goodwill is amortized. In 2009, 1.9 million was amortized without the need for any impairment.

    Net Interest ExpenseThe balance of acquisitions at the end of 2008 and the beginning of 2009 and a reduced working capital led to a decrease in net interest payments to a total of 3.3 million, a slight decrease compared to 2008. In 2009 no losses or gains were incurred on financial hedging instruments. The average interest rate decreased from 5.0% in 2008 to 3.0%.

    TaxesA reason for the high effective tax rate of 35% is the one-of expenses of restructuring our operations in Portugal. It is the Groups policy not to defer tax assets if it is not certain whether these tax benefits can be realized in the short term. The effective tax rate is also negatively influenced by 4.2% for non-tax deductable costs of goodwill amortization.

    Balance SheetPer 31 December 2009 the balance sheet total is 242 million. A 5% growth, which is primarily caused by a 7 million increase of intangible assets, due to goodwill payments and investments in the new business infomation system.Net working capital decreased by 18 million to 8 million, which is 1.7% of turnover compared to 5.6% in 2008.Reduced working capital financing needs and low investments in intangible assets resulted in a net decrease of net debt of 24 million.The equity ratio increased to 31.8%, which is in line with the long-term target of 30-35%. Shareholders equity increased by 9 million to 73 million, due to currency rate changes and retained earnings.New shares were issued for a total amount of 0.7 million.

    Cash FlowThe business operation cash flow total is 36 million. Total investment amounted to 12 million, mainly as a result of goodwill payments and business information system investments. Total cash flow before financing activities came to a positive amount of 24.0 million (2008 - 30.7 million).In 2009 DHV secured a medium-term loan of 20 million.

    16

    JV 2009 RvB ENG def.indd 9 23-03-10 15:41

  • The world economy is expected to grow again in 2010. Most national economic projections in western economies still remain conservative. Eastern economies anticipate stronger growth. Despite these signs of recovery, the consulting engineering sector will be facing an-other year of stress. Budget constraints will become apparent in the public sec-tor and the construction and real estate development market remains under pressure.

    In this context, the DHV Group clearly has much to offer. The world is facing ecological and economical challenges and the consulting engineering sector plays a decisive role to effect the neces-sary changes. Effective use of resources and infrastructure, through innova-tion, integration and technology will be crucial. The DHV Group aspires to be front-runner in the market with respect to sustainability and innovation. We are active in the stronger economies and see the demand for sustainable solutions increasing world wide.

    Prospects for 2010

    During 2010, we will focus on organic growth and further integration with our newest DHV Group members. We will concentrate on preserving and growing our profitability through growth with key clients and sound financial manage-ment. We will complete and roll-out the remaining initiatives of the One-company concept. With the exception of completing the renovation of our Dutch head office building, we expect no major external investments in 2010.

    Strategic actions for 2010 Focus on sustainability.

    Scale-up and commercialize technology

    innovations.

    Leverage international network.

    Roll-out of business information system in

    the Netherlands.

    Launch new leadership development and

    project management programs within the

    DHV University.

    By focusing on our clients and top-notch project delivery we will make a step change in our performance. Healthy margins are the basis of a healthy business, and give us the room to invest in our business propositions, in our people, and also in our corporate responsibility and innovation. With the quality and dedication of our people, we have confidence in the future.

    Amersfoort, the Netherlands,12 March 2010

    Bertrand M. van Ee (President) Piet W. Besselink (Vice President)

    Concluding remarks

    Pilzen stadium, Czech Republic

    Nakdong Barrier, South Korea

    Eco-school, China

    Renovated office, the Netherlands

    17Report of the Executive Board

    JV 2009 RvB ENG def.indd 10 23-03-10 15:41

  • 18

    18

    Although the impact of an economic slowdown was felt worldwide, there was significant demand to look beyond the recession. Customers wanted to know options and make plans for future growth in terms of increased mobility, improving the living environment and finding ways to use technology to enhance sustainable development.

    As a consultancy and engineering firm, we had the privilege of looking into the future with our customers and communities all over the world. Listening and imagining together imagining what can be and defining what needs to be. The challenges of growing population, economic shifts and climate change will not be met through incremental change alone. Planning for tomorrow means making better use of what we have today and looking to new solutions.

    On the following pages the Business Group and Region Directors look back at the 2009 developments and look forward to business and challenges in 2010.

    Developments in our Global Network

    Local delivery of world-class solutions

    JV 2009 GN ENG def.indd 1 23-03-10 15:44

  • 12

    3

    19DevelopmentsinourGlobalNetwork

    The Environment and Transportation business group works for government and industry and provides policy development, legal and financial advice, master planning, project and program management, design and engineering, and asset management services. We advise on transportation, urban and regional development and environmental issues. Our clients also know us for our integrated, sustainable approach to complex projects and our expertise in Intelligent Transport Systems (ITS), Highways (including bridges and tunnels), Rail, Transit and Stations, Urban Planning and Environmental Management.

    Government spending on transportation infrastructure was accelerated in 2009, resulting in an increased workload for the business group. Units active in consultancy services, project and program management, related traffic-forecast and planning activities, environmental assessment and the highly specialized fields of air quality and noise predictions performed well throughout the year, exceeding budgets and expectations. At the same time, spending on urban development and housing declined, causing some overcapacity in the units active in these markets. The net result for the business group was satisfactory.

    In March 2009 we were joined by NPC, a consultancy specialized in railway stations, from the NS (Dutch National Railways), significantly strengthened our railways and stations profile. NPC has been successfully integrated into DHV, and we have already realized synergy benefits through the joint acquisition of projects. NPC will continue as a brand, but as part of our Rail & Stations business unit.

    We expect the economic conditions to be tight in 2010. The medium to longer-term prospects for the transportation and related urban planning and environmental markets remain positive. Demand for sustainable mobility and

    Environment and Transportation

    Embedding Sustainability

    Objectivesfor2009Alignservicestothemarket.

    Improveportfoliomanagement.

    Managebusinessbasicswell.

    Objectivesfor2010GrowsignificantlyinTransportation,improvetoppositionbasedonexpertisepositions.

    Improveexternalprofileandclientrelations.Sharpennationalfocus.

    Strengthenfinancialperformance.

    Resultsin2009Fullyalignedorganizationperthestartof2010.ImplementedDutchregionalaccountmanagement.InternationalexpertisemeetingheldonRail,TransitandStationsinSeptember.

    SuccessfulintegrationofacquisitionNPContrack,contributingtoastrongerrailandstationsprofile.Advantagetakenoftheacceleratedgovernmentspendingontransportationinfrastructure.FruitfulcooperationwithDHVsCzechbranch.

    Withinaturbulenteconomicclimateasatisfactoryresult.Reducedexternalcosts.Activecapacitymanagementresultedinlesstemporarystaff.

    Actionsfor2010ImplementinternationalbusinessplansforRail,Transit&StationsandforIntelligentTransportSystems.ContinuealignmentofservicesandexpertisewithDHVGroupcompanies.

    Increaseexternalexposureandinteractionwithour(key)clients.Definenational,focusedprofilespermarketarea.

    Adjuststaffinginlinewithmarketdevelopments.Optimizeutilizationofworkforce.Closemonitoringofcostmanagementandoverhead.Improvecommercialandmarketingdrive.

    urban development will continue to grow, especially in densely populated delta areas. We will continue to adjust our portfolio toward the higher end of the market and further embed sustainability in our business. We expect to focus increasingly on more effective utilization of existing facilities (through increased application of information technology) and on professionalizing the maintenance of the related infrastructure. Our business unit structure allows us to focus specifically on each of these issues, putting the Environment and Transportation business group in an excellent position to provide sustainable and innovative solutions to the needs of the market.

    Vic Prins

    Local delivery of world-class solutions

    1 Prins Claus Bridge Inspection, the Netherlands

    2 Roparun from Paris to Rotterdam

    3 Opening of Frysln House, New York City

    JV 2009 GN ENG def.indd 2 23-03-10 15:44

  • 20

    Objectivesfor2009Maintainandbuildourstrongprofileasaninnovativeandsustainablecompanyinthewatermarket.

    IncreaseturnoverbasedoninnovativeproductssuchasNeredaandMBR.

    Furtherdevelopourinternationalpositioninwatermanagement,ports,waterways,andcoastaldevelopment.

    Achieveselectivegrowthintheinternationalcontractingmarketforwatertreatment.

    Objectivesfor2010Buildonourreputationasawell-recognizedcompanywithastrongprofile,toattractmorebusinessandemployees.

    SignificantlygrowWaterbusinessthroughafocusonselectedmarkets,businessconcepts,productsandservices.

    Innovativeproductswillaccountfor30%oftheturnoverinwatertreatment.

    Maintainapositioninthetop10oftheworldwidewaterengineeringandconsultancycompanies.

    Resultsin2009Executedseveralprojectstoimple-menttheEUWaterFrameworkDirec-tive.GainedaleadingpositionforriverbasinstudiesinPortugal.

    Neredasalesincreased.Commenceddesignworkforthefirstfull-scalemunicipalNeredaplant.SuccessfulmarketintroductionofGreenGas(biogas)consultancyprojects.

    WonmajorprojectsinIsraelandViet-nam.HeldInternationalexpertmeet-inginPoland.IntensifiedcooperationwithDelcanonfloodprotection.

    ContractedtwonewprojectsintheDutchORIOprogramandstrength-enedmarketpositioninFrance.

    Actionsfor2010Continuegainingexposureofcapabili-tiesthroughparticipationinsignatureprojectsandprofessionalnetworks.Re-cruitnewemployeesviastaffnetworks.

    Buildrelationshipsandpartnershipsoninnovationwithkeyclients,sothattheyarewillingtobecomelaunchingcustom-ersfornewdevelopments.

    UseDesign&Deliverprojectsforimple-mentingourinnovativesolutions.AlignourinnovationagendawiththeGroup-wideagenda.

    Focusonorganicgrowthofaddedvalue.FurtheroptimizeOperation&MaintenancebusinessandGroup-widecooperation.

    We deliver top expertise in the fields of water treatment, water management, coastal development, and ports and waterways. Services include consultancy, design & engineering, product delivery, design & build and operation & maintenance. Our clients are from both the public and private sector, and include local and national governments, international financiers, multinationals and engineering contractors.

    Water

    Global water challenges

    Our approach is one of partnerships. Close relationships with clients enable us to go beyond meeting their present needs, supporting them in innovating their products and processes. Networking within the DHV Group and with knowledge institutes is of major importance for project execution and development of new technologies.In the water treatment market we strengthened our position in the public sector and adjusted our portfolio in the private sector. We were successful in the first tender round of the Dutch government funded ORIO export program and won two new projects. In 2009 we started the design for the full-scale Nereda water treatment plant in the Netherlands. A Nereda plant requires less surface area and uses considerably less energy. The realization of this plant will start in 2010.

    Our activities in the fields of water management, coastal protection and ports & waterways showed significant growth in 2009. Our Portuguese and Dutch companies gained a joint leading position in the Portuguese market for river basin studies. We are involved in coastal protection programs in the Netherlands and Indonesia. We have also expanded our activities in Israel, traditionally focused on water treatment, with projects such as the port Ashdod container terminal and the Dead Sea Lagoon project.

    The long-term outlook for the water business is favorable due to global challenges in the area of water treatment and management. Short-term market developments might be somewhat tense as government cost-cutting programs may result in changing priorities. We believe that our balanced portfolio, with regard to products and international diversity, and our technological competitive edge form a strong foundation for success.

    Piet van Helvoort1 World Water Forum in Istanbul, Turkey

    2 Aceh Tsunami warning system, Indonesia

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  • 21DevelopmentsinourGlobalNetwork 21

    The Building and Industry business group focuses on buildings and industrial installations with specialized requirements and a high level of technical or organizational complexity. We serve clients in the public and private sectors throughout the Netherlands, and are an internationally recognized player in the field of integrated design for solar plants and R&D facilities. Our professionals are guided by the motto: proven better buildings and industrial installations. All disciplines required for this purpose are available in-house. We are dedicated team players who are guided by the specific needs of the client.

    In 2009, our clients faced a shortage of investment capital, which resulted in fewer new building initiatives. However, the demand to augment the sustainability and the efficiency of existing buildings increased. Buildings are responsible for 40% of CO2 emissions. As experts in the field of increasing the sustainability of buildings and industrial sites, we assist clients in demonstrably lowering their CO2 emissions, energy costs, and water consumption. In the past period, we have again invested considerably in innovation. We incorporated the Cradle-to-Cradle philosophy through intensive training of selected staff, actively participated in the Dutch Green Building Council, and became a founding partner of the Dutch Building Brains innovation initiative. The latter concentrates on green building concepts and virtual design.

    We believe that continued investment in our employees through education and training translates directly into an increase in added value for our clients. Our project managers continuously strive to bring their skill level even higher. They are currently completing the IPMA program (International Project Management Association). The steps taken in 2009 to improve our client focus, knowledge development, project control and organizational

    efficiency will be further implemented in 2010. The focus on sustainable renovation of buildings and our approach to asset management (management and maintenance) are proving to be a success. We will continue to focus on these aspects in order to further expand our good reputation in the Netherlands. Moreover, we will expand our international activities by strengthening relationships with our international clients and by contributing expertise to joint projects with other members of the DHV Group, such as in the field of sustainable airports.

    Eugene Grter

    Building and Industry Superior buildings and industrial installations

    Objectivesfor2009Sharpenprofile;focusonmarketdemand.

    Attainqualitativegrowth.

    Strengthenpositioninassetmanagement.

    Adapttochangingmarketconditions.

    Objectivesfor2010Continuegrowthinquality,attractingandretainingrequisitetalent.

    Clientfocuswithinpreferredmarketwindows.

    Knowledgeinnovation.

    Improveefficiencyandstrengthenfinancialperformance.

    Resultsin2009Businessprofilesharpenedandfocusmarketsdesignated.

    Achievedgrowthinaddedvalueperemployee.

    Strongoperationalresultsinassetmanagementbusiness.

    Adaptedorganizationtochangingmarketconditions.

    Actionsfor2010Investinmarketalignmentandemployees.

    Pro-activeanddedicatedmarketapproach.Concentrateonnationalandexpandselectivelytointernational.

    Investininnovation(a.o.BuildingInformationModeling).

    Implementneworganization.

    1 Multi-disciplinary Top Team Award, the Netherlands

    2 Provada real estate fair, the Netherlands

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  • 22

    1 NACO, The Hague Entrepreneur Award, the Netherlands

    2 Identification of CO2 mitigation measures

    3 FOD Walk InterVISTAS, Canada

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    Objectivesfor2009IntegrateInterVISTAS.

    Increaseturnoverbyaminimumof30%.

    Developreputationasthedesignerofgreenairports.

    Maintainapositioninthetop10oftheworldwideairportengineeringandplanningcompanies.

    Objectivesfor2010GrowbusinessinAsia.

    CreateimageofTHEdesignerofgreenairports.

    Extendportfoliotohighermarginservices.

    Resultsin2009SuccessfullyintroducedInterVISTAStoNACOclientsandrealizedgoodcooperationinprojects.

    Turnovergrowthofapproximately50%throughmergerwithInterVISTAS.

    InvolvedintheKunminggreenairportproject.DevelopmentofGRIcriteriaforsustainableairportsisontarget.

    EngineeringNews-Record2009ranking:11thposition.

    Actionsfor2010StartaviationofficeinIndia.

    Winatleasttwogreenairportprojects.

    Startnewservicesinprogrammanagementandairportrevenuerecovery.

    The Aviation business group offers comprehensive planning and top-end design excellence to clients who are facing capacity shortages and the need for airport facility upgrading. Commercial development, air service development and revenue management are answers to the growing need to maximize non-aviation revenues. We work for airport authorities and operators, governments, airlines, and private investors in Europe, Asia, the Middle East, Africa, North America and the Caribbean.

    The economic crisis continues to have a massive impact on the aviation industry, putting large investments on hold. The Middle Eastern countries were less affected and went ahead with major airport development plans. Focused marketing activities, and our strong presence in this region has enabled us to secure several high-profile contracts. Given the excellent reputation that NACO and InterVISTAS have earned in the region, we expect to be involved in a number of other projects as well. Since we have a license to operate as a main contractor in Abu Dhabi, we expect to be engaging in more projects there in the future. The Sub-Saharan region continues to be a source of projects. NACO-SSI is involved in supervision contracts in Kenya, Botswana and Tanzania. Supporting SSI will enable us to increase our expertise and intensify our marketing activities. InterVISTAS is working on a capacity building initiative for West African nations sponsored by the International Civil Aviation Organization (ICAO).The worldwide trend towards airport privatization is a source of potential projects for InterVISTAS. The Indian market is showing signs of recovery. We will cooperate closely with DHV in India to develop a concise strategy for addressing the urgent need for upgrading and modernization and regaining our position in this diversified market. In China, the market is still growing and we have distinguished ourselves through participation in several competitions.

    Due to the financial crisis, our profitability has been under pressure. However, given the signs of market recovery and the number of outstanding proposals, we are optimistic about restoring the balance.This year NACO celebrated its 60 year anniversary. We are excited about future growth. The successful integration of InterVISTAS and Innova and the optimized synergy between NACO and InterVISTAS have given the Group new means and opportunities to strengthen its global market position.Opportunities will be developed in new or emerging markets through the development of distinguishable services such as Airport Recovery Services and Program Management. Our active involvement in the Global Reporting Initiative and our role in the development of the new Kunming International Airport in China, the first Green Airport, will also help us position ourselves as a Green Airport Consultant.

    Roel Overakker

    Aviation

    Joining forces for airports

    JV 2009 GN ENG def.indd 5 23-03-10 15:44

  • 23DevelopmentsinourGlobalNetwork

    Objectivesfor2009CentralEurope:increasemarketshareinITS.

    Poland:growpositionsinwaterma-nagement,sewerageanddrainage,andhighways.Strengthenpositioninairport,rail,wastewatertreatment,andindustrialmarkets.

    CzechRepublic:becometheleadingcityandregionalplanningconsultancywithasustainabilityfocus.

    Portugal:continuegrowthofexistingservicesinwaterandtransportation.Developnewservicesinenvironmentalfieldandsustainabledevelopment.

    Objectivesfor2010Poland:developnewbusinesspositionsinupcomingmarketssuchastrafficmanagementandrailwaystations

    Poland:capitalizeonleadershippositionsinwatermanagementandhydropower.Expandsewerageandwastewaterbusiness.

    CzechRepublic:becometheleadingcityandregionalplanningconsultancywithasustainabilityfocus.

    Portugal:growconsultancyservicesinwaterandenvironment;buildonsuccessoftheNeredawastewatertechnologydemonstrationprojectinFrielasLisbon.

    Resultsin2009Businessdevelopmenteffortsweresteppedupleadingtomajorproposalsforurbantrafficmanagementsystems.

    Acquiredsignificantnewprojectsinwatermanagementandhydropower.IntheroadsectordesignverificationandsupervisionoftheprestigiousA1andA2inPolandwereacquired.Activi-tiesinothermarketsremainedstable.

    Studiedanddesignednewsoccersta-diumsinPilzenandOstrava.

    WontheenvironmentalimpactstudyforthenewLisbonairportandseveralriverbasinplanningstudies.

    Actionsfor2010Poland:CombineinternationalexpertisefromNPCwithDHVsPolishtransportationexpertisetoserveclientsintherailwaystationmarket.

    Poland:expanddesignbusinessinfloodmanagementandhydropowerandwastewatertreatment.

    Broadentheintegratedservicescapabilitiestocityandregionalplanningclients.

    GrowconsultancyservicesinthewaterandenvironmentinPortugal.CompleteNeredatechnologydemonstrationprojectandapplyinnewfullscaleprojectsinPortugal.

    In Europe we are active in the fields of water, transportation, aviation, building and industry, spatial planning, and environment. Our clients - governments, industry, contractors and developers - increasingly demand efficient solutions to lower their capital investment and their operating and maintenance costs. There is a growing awareness of the importance of sustainable solutions. Our European home markets outside the Netherlands are Poland and Portugal. We also have an office in the Czech Republic and work in other European countries on a project-by-project basis.

    In 2009 investments in the Polish transportation infrastructure remained at a high level, partly driven by the Eurocup 2012. Important new projects are the A1 highway between Lodz and Katowice (180 km) for which DHV is the Independent Engineer, and the A2 highway between Lodz and Warsaw (90 km) for which DHV supervises Design Build Contractors. The demand for intelligent transport systems is gradually growing and is aimed at increasing efficiency of use. The market for flood control remains stable. DHV-Hydroprojekt completed the Design Built Dorbzen Small Hydropower plant (2MW) and won two projects for rehabilitation of Flood Protection Weirs in the Odra River. DHV operates in Poland through DHV-Hydroprojekt, DHV Polska and DHV-Prokom. The three companies benefit from cost savings and business synergies, while clients benefit from broader expertise and greater access to our international expertise.

    In the Czech Republic, the main focus continues to be on the new building code, sustainability, assessments in land-use planning, and the EU structural and cohesion funds. The downturn in investments in the building, industrial, and mining sectors continued through 2009. DHV won the feasibility study for the new football stadium of Pilzen.The Portuguese economic situation continued to be a constraint on the business. Our operations were restructured

    Europe

    Focus on our clients changing needs

    1 Employees of the DHV Polska office

    2 Viability Study Steel Mill Channel, Portugal

    to reduce costs and increase efficiency. Future activities in Portugal will be focused on consultancy studies and supervision/operations. We focus on clients for waterfront and coastal development, dams and hydropower, ports, water and environment. A leading position was achieved in river basin planning when DHV won the River Basin Plans for the Tejo and Douro Rivers.In Germany, France, the UK and other European countries we assist clients with high-profile projects involving airports, wastewater treatment, solar panel plants, intelligent transportation systems and mining.

    During this time of continuing economic uncertainty we will focus on supporting clients as their needs change and increase our organizational flexibility, so that we will be able to respond well to market developments.

    Chris Engelsman

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  • 24

    Objectivesfor2009ExtendlocaloperationsinChina.

    ExtendlocaloperationsinIndia.

    ContinueexpansionofprivatesectoractivitiesinIndonesia.

    Objectivesfor2010China:Expandtechnologydrivenwaterbusiness,coastaldevelopmentandsustainablebuildings.

    India:Growinwaterandtransportation.

    Indonesia:Expandthebusinessforminingclients.

    Vietnam:Builduplocaloperations

    Resultsin2009Localoperationsextendedwithindustrialwatertreatmentprojects.Participationinlargecoastaldevelopmentproject.Leedcertificationforvarioussustainablebuildings.

    DevelopedPPPprojectsforfourcities.Expandedbridgedesignteam.Watertechnologycapacityattracted.

    Increasedprivatesectorclientbasewithclientsfromtheminingsector.

    Actionsfor2010PromoteourwatertechnologiesatShanghaiExpo2010.Createspin-offofHongKong-Macaubridgeandtunnelprojectincoastaldevelopmentmarket.RepeatbusinessofLEEDcertificationofsustainablebuildingsinChina.

    Trainingandlocalcapacitybuildinginwatertechnology,highwaysandaviationinIndia.

    CapacitybuildingtoserveminingclientsinIndonesia.

    EstablishDHVVietnam.

    Our activities in Asia concentrate on our home markets of China, India and Indonesia. We also have important projects in Taiwan and Vietnam. We work for private industries and public sector authorities in need of cost-effective, sustainable solutions for complex challenges in the areas of water, spatial planning, transport, infrastructure and environment. Economic growth and large-scale urbanization fuel a growing demand for world-class solutions to our clients local requirements.

    China, India and Indonesia maintained positive economic growth rates throughout 2009. The respective governments stimulated their economies through investments in infrastructure while the level of private investments was low. The Hong Kong Zuhai Macau tunnel and bridge project is an example of a large-scale project initiated in 2009.

    In 2009 we successfully expanded our water treatment technology activities in China. We would like to thank corporate advisor Frans van Gunsteren for his valuable support with our capacity building in China. We contributed to sanitation development in Indonesia and successfully completed the Sea Defense project in Aceh. In India we developed public-private partnerships for infrastructure projects in four cities. Our expansion in sustainable building slowed down due to a decrease in private investments.

    A major trend is an increased awareness of the need to mitigate the environmental impact of rapid development and address issues such as water scarcity, water, soil and air pollution, flooding, traffic congestion and the impact of climate change. The demand for resources increases the need for mining expertise. In anticipation of these developments we will continue to innovate our water treatment technologies to meet our clients challenges in the face of increased effluent quality requirements, and to expand our

    Asia

    Capacity building

    capacity for Local delivery of world-class solutions in coastal development, water management, transportation, sustainable building, green airport design and mining.

    We attract people with a passion for sustainability, innovation and corporate responsibility and successfully retain the talent in our companies through our involvement in signature projects and by our shared values with our clients and partners.In the year ahead we will maintain our focus on home countries and expand our activities along our expertise positions.

    Arnold Galavazi

    1 DHV Shanghai

    2 DHV Vietnam

    3 Jakarta Dredging, Indonesia

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  • 25DevelopmentsinourGlobalNetwork

    1 Mgeni Viaduct, South Africa

    2 Powerhouse, Drakensberg Mountains, South Africa

    3 Pedestrian Bridge Community Event, South Africa

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    Objectivesfor2009Diversifyproductchain.

    IncreaseturnoveroutsideSouthAfrica.

    Furtherimplementtheone-companyconcept.

    GrowourbusinessforminingclientsthroughTurgis.

    Objectivesfor2010GetabiggersliceofashrinkingengineeringmarketinSouthAfrica.

    DiversifygeographicmarketbygrowingbusinessinSouthAfricaandinternational(SADC).

    Growselectedmarkets:water,transportationandenergy.

    Increasebusinessforminingclients.

    Resultsin2009ABuildings&Structuresunitwassetupin2009andabigprojectforanewlaboratorywaswon.Institutionalsupportprojectscommenced.

    ThepercentageoftheturnoveroutsideSouthAfricaremainedabout11%.

    ThecommonICTplatformwasestablished,thusenablingGroup-wideconnectivity.

    ThenumberofjointprojectsbetweenTurgisandtherestoftheDHVGroupincreased.

    Actionsfor2010Offeralternatedeliverymodelsforbasicpublicinfrastructure(schools,hostels,etc).

    Obtainatleastonemajorhighwaysproject,preferablyoutsideSouthAfrica.

    Secureatleastonemajorenergyproject.

    Doanacquisitionintheminingsector.

    Our goal in Africa is to be a leading consultancy by drawing on our solid understanding of the challenges faced by this continent. The DHV Group operates in Africa through SSI, SEED and Turgis. SSI and SEED work mainly in sub-Saharan Africa, with a primary focus on South Africa and Mozambique, o