BAM strategic plan 2021-2023: Building a sustainable tomorrow

Increased profitability and continued de-risking by focus on markets and projects where BAM has proven competitive strengths, creating a platform for future growth


  • Restructure portfolio to focus on markets, projects and partnerships, where BAM can leverage its proven competitive strengths:
    • Platform for growth in Netherlands, United Kingdom and Ireland
    • Manage businesses in Germany and Belgium for value, supported by operational improvements and, potentially, divestment
    • Expand partnerships for creating assets with fixed long-term income by growing the current Private Public Partnerships (PPP) business and establishing new partnerships to develop residential properties
    • Leverage expertise in sustainability, digitalisation, modularisation and industrialised construction
    • Continue de-risking project portfolio
  • Mid-term financial targets (by 2023)
    • Adjusted EBITDA margin to increase to approximately 5%
    • Revenue to decrease to approximately €5.5 billion
    • ROCE >10%
    • Trade working capital efficiency <-10%
    • Grow capital ratio to 20% over strategic period
    • Maintain dividend policy of 30-50% pay-out of net result
  • Commitment to sustainability and safety
    • Sustainability: Maintain ranking CPD A-list and, in line with Science-Based Targets initiative (SBTi), reduce the CO2 intensity of BAM’s operations by 50% in 2030 compared to the 2015 base year
    • Employee safety: incident frequency <3.5 and zero fatalities

Serving BAM’s corporate purpose

The strategic plan 2021-2023 serves BAM’s corporate purpose to provide clients with best-in-industry capabilities, contribute to the global movement toward sustainability, provide employees a safe and rewarding work environment and generate attractive returns for shareholders.

Strategy driven by market opportunities

BAM’s strategic plan is aimed at the significant and expanding part of the construction industry being driven by clients’ growing emphasis on sustainability. Clients are increasingly demanding resource conservation, energy efficiency and carbon reduction during the design, construction and operational phases of their projects. Another major market trend is the substantial shortage of housing. These are areas where BAM has strong experience and expertise and is investing to expand its capabilities.

Platform for growth

BAM will focus on growing its business in the Netherlands, United Kingdom and Ireland. These are the markets where BAM has by far the largest scale. In these countries, BAM starts with top-3 positions in both the Construction and Property (and the Civil engineering business lines and with a strong and growing position in Public Private Partnerships (PPP).

In these markets, BAM will focus its portfolio, strive to business excellence and product leadership, and grow life-cycle solutions, providing clients with innovative and sustainable design, development, construction and facilities management solutions that can be integrated.

BAM will prioritise projects where such innovation is replicable, in order to reduce risk and increase profitability. Examples include:

  • Offering energy/climate-neutral residential concepts for new build schemes and refurbishment programmes for social housing cooperatives;
  • Rolling out sustainable lifecycle energy solutions for offices and homes (ESCos);
  • Focussing on two-stage tenders, framework agreements and repeat business.

Managing for value

BAM’s activities in Germany and Belgium, markets where scale, risks and competitive dynamics have been more challenging will be managed for value through further operational improvement actions and, potentially, divestments. BAM will be selective in its order intake while maintaining optimal services to clients, efficiency of operations and commitment to employee safety and development.


The strategic plan will specifically focus on improving BAM’s risk/reward profile. As such, BAM will move its project portfolio away from large unrewarded risk by limiting the size of single-stage, lump sum tenders in which it will participate in its Construction and Property, and Civil engineering businesses to €150 million.

Organisational commitment

BAM’s new Executive Board has confidence that the Group, based on this strategic plan, can create greater, and more sustainable value to its clients, employees, communities and investors. Tangible progress will be reported over the course of 2021.