CONTENTS 3. THE COMPANY 5. GLOBAL PRESENCE 7. PERFORMANCE 9. THE BUSINESS 11. THE TEAM 13. THE FUTURE
120.000 MT2 BUILT
5.500 CLIENTS SERVED
15.500 SERVICE CALLS
35% INCOME GROWTH
ABOUT THE COMPANY Dannan’s operations are in Construction, Residential Development, Commercial Property Development and Infrastructure Development. The Business Units within these streams collaborate in various ways, creating operational and financial synergies that generate increased value.
Dannan is one of the world’s leading project development and construction groups, concentrated on selected home markets in the Nordic countries, other European countries and in North America. With a focus on sustainability, Dannan offers competitive solutions – not least for the most complex assignments. Dannan’s Purpose – to build for a better society – sets out the direction in which the Group is heading. The Purpose reflects the company’s role in society, a position that enables Dannan to create shareholder value. Dannan provides innovative and sustainable solutions to create a sustainable future for its people, customers and communities. This is reinforced by a continued commitment to Safety, Ethics, Green, Corporate Community Investment as well as Diversity and Inclusion. All topics relate to our core business and expertise, and have an impact on our surroundings. Values serve as a moral foundation for the company. Clearly articulated values are proactive and aspirational, and guard and continue to build Dannan’s culture – a culture that is vital to the Group’s continued success. We care for life of people and the environment. We work safely, or not at all. We never walk by if we notice unsafe actions. We support health and well-being. We promote green solutions and conduct our operations in a green way. We are accountable to future generations. We do business with a high degree of integrity and transparency. We live by our Code of Conduct and never accept shortcuts. We foster a work environment where everyone can speak their mind. We always strive to be better in all we do. We are a learning organization and generously share our expertise. We take pride in quality and innovation. We build Dannan teams together with customers, partners and communities. We leverage diversity to deliver the best solutions. We foster an inclusive culture where we are open and fair, showing trust and respect for each other.
A GLOBAL PRESENCE The Nordics, Europe, Australia, Dubai and North America are our home markets. In North America, which is our single largest market, we are a leading company within building and civil engineering projects. We are also targeting the U.S. Public Private Partnerships (PPP) segment. In the Nordic region, Czech Republic, Slovakia and Poland, our operations cover the construction and investment businesses. In the UK, we are a leading player in construction as well as within PPP. In Latin America, all construction projects were concluded and most of the operations and maintenance units were divested in 2015.
ABOUT THE COMPANY
USA UK GERMANY FRANCE SWITZERLAND DUBAI AUSTRALIA
ABOUT OUR PERFORMANCE Our business model is the core of Dannan’s strategy, where projects play the central part. Value to our shareholders and benefits to stakeholders is generated in the thousands of projects the Group executes each year.
Our overall goals are to generate customer and shareholder value.
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We aim at becoming a leader in the home markets of our construction business units and a leading project developer in local markets. As a
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means to reach our financial targets, we have qualitative targets. A cornerstone in Dannan’s strategy is to take advantage of financial
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synergies within the Group by investing the cash flow from construction operations in project development.
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Our construction business stream operates with free working capital and generates a positive cash flow. The free working capital combined
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with the profits generated by the Group enables the financing of investments in project development which generate an excellent return on invested capital.
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THE GHERKIN Our headquartes operate in one of the London postcards, the Gherkin, the commercial neo-futuristic skyscraper in London’s primary financial district, the City of London. Designed by the awarded architect Norman Foster, it was completed in December 2003 and opened in April 2004. We work in 3 of its 41 storeys, it is 180 metres (591 ft) tall. The building has become an iconic symbol of London and is one of the city’s most widely recognised examples of contemporary architecture.
ABOUT THE BUSINESS The demand for modern commercial properties with high-quality tenants will continue to increase. Increased investments are creating new opportunities in Dannan’s home markets. A focus on customers, cost efficiency and internal collaboration are key to success.
This page describes the governance of our business units, which are listed below with the president for each unit. The Dannan Group has a clearly decentralized structure characterized by a large measure of delegation of authority and responsibility to the business units. Each business unit is headed by a president and has its own administrative departments and other resources in order to conduct its operations effectively. Aside from day-to-day operations, the business units deal with matters such as their strategic development, and strategic investments and divestments. Proposals are prepared by the management team of each respective unit and then referred to the Senior Executive Team or to Dannan’s Board of Directors for a decision, depending on the magnitude of the matter. The boards of the business units consist of representatives from Dannan, individuals from other business units and the respective business unit’s own management team. The Chairman of each business unit is a member of Dannan’s Senior Executive Team. Where appropriate, employee representatives are included. Offices, homes, roads and bridges are just a few examples of what we do within Construction. We offer construction services in selected home markets in the Nordics, Europe and North America. Dannan’s construction services involve building tall buildings and bridges as well as private homes. We are active in selected home markets in the Nordic region, Europe and North America, both in the private and the public sector. Dannan’s Construction business stream builds and renovates buildings, industrial facilities, infrastructure and residences. It also executes service-related assignments, in areas such as construction services and facility operations and maintenance. In keeping with Dannan’s business model, contracting assignments are also executed for Dannan’s development streams. This collaboration generates large construction assignments, as well as synergies for the Group. Project and synergy opportunities are also generated thanks to the financial expertise within the Group. A combination of financial strength and global expertise in project development and construction enables Dannan to take on large, complicated projects for international clients with high expectations for quality and execution. In the very largest projects that require highlevel performance guarantees, few competitors can measure up to Dannan terms of skills and strength.
EMMA HADID HEAD OF ARCHITECTURE Emma gives to Dannan a genious and truly artistic aproach desingingand conceiving solutions in every situation. Her enthusiasm and energy contagiates the team and seduce clients avid forher blessed visions.
TOM LEWANSKY HEAD OF OPERATIONS Tom has been with Dannan for 19 years. Now he takes on his new role as member of Dannan’s management team with responsibility for all Worldwide construction and management operations.
JULES HARDY HEAD OF SALES Counting more than 30 years of experience dealing with a diverse array of business and operating in more than 10 countries, Hardy is the key piece to Dannan’s business. HIs personal approach and wisdom is driving the company to a glorious future.
ABOUT THE TEAM We have 3,000 employees in ten countries globally. In this section you can meet some of our people and get a feeling of what it is like to work at Dannan.
The CEO, Group staff units and support unit are based in Dannan’s head office in London, UK. The Group’s operations are based on local business units with good knowledge of their respective markets, customers and suppliers. These local units are backed by Dannan’s brand and financial strength as well as Group-wide expertise and values. The Board of Directors makes decisions concerning overall issues relating to the Parent Company and the Group, such as the Group’s strategy, investments and the organizational structure of the Group. The Board has established three special committees that take decisions on certain issues. The Board of Directors makes decisions concerning overall issues relating to the Parent Company and the Group, such as the Group’s strategy, publication of interim and annual reports, major construction projects, investments and divestments, appointment of the President and CEO and the organizational structure of the Group. The Board has established three special committees: the Audit Committee, the Compensation Committee and the Project Review Committee. In its Procedural Rules, the Board has specified the duties and decision-making powers delegated by the Board to its committees. All committees report orally to the Board at each meeting in accordance with the routines stipulated in the Procedural Rules. The President and Chief Executive Officer (CEO) is responsible for day-to-day management and oversight of the Company’s operations.
Working towards a sustainable future for employees, customers and communities.
ABOUT THE FUTURE Our Business Plan 2016-2020, outlines the strategic direction that will take Dannan to the next level. The aim is to increase shareholder value and at the same time make an even greater contribution to developing communities in the home markets. Working towards a sustainable future for employees, customers and communities.
Dannan’s business plan for the period 2016–2020 sets a number of targets. These financial targets are judged to be those that best reflect the profitability of operations and show the Group’s financial capacity for investment and growth. Return on equity and on capital employed are measures of how well shareholder and lender capital are being used (capital efficiency), and are considered a fair measurement for the Group and the project development streams. Operating margin, which indicates profitability in the business after selling and administrative expenses, is an important measure of performance in the Construction business stream. The margins depend on the type of business being conducted and can also vary between different geographical markets. We must create shareholder value in a responsible way and contribute to society at large. Given the business we are in and our size of our operations, we can have a considerable and positive impact on society as part of our profitable business. It is not about doing one or the other; it is about doing both at the same time. Profit is needed to deliver on Purpose; and a strong Purpose will contribute to our Profit. Generating value for shareholders and delivering an industry-leading total return to the shareholders will continue to be Dannan’s stated aim. A strong focus on profitability is combined with controlled growth. This will result in a stable, long-term earnings trend and provide the cash flow necessary for an attractive dividend. To achieve this, there will be a greater focus on: - Industry-leading total shareholder return - Balanced value creation between Construction and Project Development - Recognized as a preferred partner when it comes to creating solutions that meet customers’ needs - Living our values and recognized as a value-driven company building for a better society - An injury-free and ethical environment - The most attractive employer in our industry - Cooperation within and between units and business streams as Dannan in high-performing teams Improved operational efficiency