Press release: Annual result 2014
Ramboll Group delivers solid growth
The engineering, management and design consultancy increased revenue by 8%in 2014 measured in local currencies. Globally, more than 2,000 new colleagues joined the company,after the acquisition ofthe US-based consultancy ENVIRON announced at the end of 2014. Ramboll now has more than 12,300 employees worldwide.
The Ramboll Group delivered solid growth in 2014. Revenue increased by 8.0% measured in local currencies and by 6.4% in Danish kroner from DKK 7,794 million in 2013 to DKK 8,292 million.As the acquisition of ENVIRON announced in December 2014 is with effect from 1 January 2015, ENVIRON is not included in the 2014 figures.
Organic growth was 3.0%, which was primarily due to strong organic growth in the UK and Denmark and modest organic growth in Norway, Sweden, Finland, and New Markets and in the company’s international business units within Oil & Gas and Energy.
Operating profit before goodwill amortisation (EBITA) was DKK 413 million compared to DKK 390 million in 2013, giving an EBITA margin of 5.0%, which was on the same level as in 2013.
The unchanged EBITA margin compared to 2013 was a result of improvements in Denmark, Sweden, Finland, New Markets, and Ramboll’s international Energy business unit. This was offset by declining margins in the UK, Norway and our international business units within Management Consulting and Oil & Gas.
Signature infrastructure projects
During 2014 Ramboll secured several high profile transportinfrastructure contracts in the Nordics, as well as a number of hallmark projects in other regions such as the Middle East.
The project wins include a pilot scheme for a new high speed rail crossing over Vejle Fjord in western Denmark, project planning for an express light rail link between Helsinki and Espoo in Finland, and a signaling scheme for the Oslo-Ski rail line, currently Norway’s largest transport project. In Stockholm, Ramboll has in partnership with Tyréns and White architects been chosen to conduct a study and plan for the new subway line betweenAkalla and Barkarby station – one of the city’s most important infrastructure projects right now.
In Qatar, Ramboll is the Design Verification Engineer ofThe Green Line in Doha– an important element in Doha’s new metro system. The project comprises 16.6 kmof twin bored tunnels, 6 underground stations and a number of other constructions.
“By utilising our global competence base more effectively we have succeededin winning a number of the largest and most exciting infrastructure projects in the Nordics and the Middle East. This includes utilisationof our global engineering center in Delhi, India which increasingly is becoming a competitive advantage when bidding for buildings and transport projects in our traditional home markets”, says Ramboll’s CEO Jens-Peter Saul.
Acquisitions drive internationalisation
A number of strategic acquisitions during 2014 have added skills and competencies to the work force, as well as consolidated Ramboll’s existing presence and boosted entrance into new markets.
In Finland Ramboll took over a significant part of Pöyry’sbuildings and construction management businesses becoming the largest engineering consultancy operating in the Finnish market. In Germany the acquisition of the management consultancy companyPutzPartner strengthened Rambollin the private sector segment as well as provided access to a number of large energy customers.
Just before year-end Ramboll announced the acquisition of US-based global consultancyENVIRON. The acquisition moves Ramboll into the global Top 10 among environmental consultancies, and represents a major step for the company in becoming truly global.
“The acquisitions made in 2014 support our strategy of having a strong home market position while strengthening our portfolio in high growth market areas such as environment where we are now a globally leading company. In addition to this,ENVIRON coming onboard gives us a strong platform in the US that has been on our strategic agenda for the last years and it gives our international ambition a big push forward”, says Jens-Peter Saul.
Key figures and financial ratios / 2014 / 2014 / 2013Income statement, DKK million / EUR m
Revenue / 1,113.0 / 8,291.9 / 7,794.1
Operating profit before goodwill amort. (EBITA) / 55.5 / 413.2 / 389.9
Operating profit (EBIT) / 38.5 / 286.7 / 287.2
Profit beforetax / 35.6 / 265.1 / 252.3
Profit for the year / 22.0 / 163.7 / 142.8
Balance sheet, DKK million
Total assets / 722.3 / 5,381.3 / 4,289.5
Shareholders' equity / 249.2 / 1,856.3 / 1,699.8
Net interestbearingcash / 51.0 / 380.2 / 590.0
Cash flow, DKK million
Cash flow from operating activities / 49.4 / 368.6 / 463.2
Investment in tangible assets, net / - 22.4 / - 166.6 / - 104.4
Freecash flow / 27.1 / 202.0 / 358.8
Acquisitions of companies / - 49.5 / - 368.7 / - 114.9
Employees
Number of employees, end of year / 10,809 / 10,161
Number of full time employee equivalents / 10,256 / 9,593
Financial ratios in %
Revenuegrowth / 6.4 / 3.2
Organicgrowth / 3.0 / 3.7
EBITA margin / 5.0 / 5.0
Operating margin (EBIT margin) / 3.5 / 3.7
Return on invested capital (ROIC) / 15.2 / 11.2
Return on equity (ROE) / 9.2 / 8.5
Cash conversion ratio / 82.1 / 129.3
Equity ratio / 34.5 / 39.6
The key figures in EUR have been translated from DKKR using an exchange rate of 7.45. All key figures and financial ratios are excluding ENVIRON, as the acquisition is with effect from 1 January 2015.
About Ramboll
Ramboll is a leading engineering, design and consultancy company founded in Denmark in 1945. Including the acquisition of ENVIRON, the company employs more than 12,300 experts globallyand is presentinthe Nordics, North America, the UK, Continental Europe, Middle East, India, Asia, Australia, South America and Sub-Saharan Africa. With more than 300 offices in 35 countries, Ramboll combines local experience with a global knowledgebase constantly striving to achieve inspiring and exacting solutions that make a genuine difference to our customers, the end-users, and society as a whole.Ramboll works across the markets: Buildings, Transport, Environment & Health, Water, Energy, Oil & Gas, Planning & Urban Design and Management Consulting.
Ownership
The Ramboll Foundation is the main owner of Ramboll Group A/S and its main objective is to promote the company’s continuance alongside the longterm development of the company, its employees and the communities it serves. All shares in Ramboll Group A/S are owned either by the Ramboll Foundation (97%) or by employees in Ramboll (3%).
Contact
Jens-Peter Saul, Group Chief Executive Officer,
Michael Rosenvold, Group Chief Financial Officer,
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