Dear stakeholders of Koninklijke HaskoningDHV Groep B.V.
This annual report including our financial statements of Koninklijke HaskoningDHV Groep B.V. for the year 2019 has been prepared by the Executive Board. On the 6th of March 2020 the annual report was provided with an unqualified auditor's report by our external auditor PwC and signed following consultation by the Supervisory Board (please download the audited report here).
Just after signing the annual report of Koninklijke HaskoningDHV Groep B.V. on the 6th of Mach 2020, the COVID-19 outbreak has developed rapidly, with a significant number of infections around the world. Measures taken by various governments to contain the virus include limiting the movement of people, restricting flights and other travel, temporarily closing businesses and schools, and cancelling events have affected economic activity significantly.
Because the annual report of Koninklijke HaskoningDHV Groep B.V. was already signed on the 6th of March 2020 no further information nor disclosure was included with regards to the COVID-19 outbreak and the disruption to economic activity. This is fully in accordance with law and regulation nevertheless by means of this letter the Executive Board would like to provide further disclosure.
Since the COVID-19 outbreak we have taken various measures to monitor and prevent the effects of the COVID-19 virus amongst other health and safety measures for our people (like social distancing and working from home). We have followed and will continue to follow the various national institutes, policies and advice and in parallel will do our utmost to continue our operations in the best and safest way possible without jeopardizing the health of our people, clients, partners and other stakeholders.
The macroeconomic uncertainty causes disruption to economic activity and it is unknown what the longer-term impact on our business may be. Depending on the duration of the COVID-19 crisis and continued negative impact on economic activity, we may experience a material decrease in revenue, results and liquidity. The exact impact on our activities in the remainder of 2020 and thereafter cannot be predicted.
As to date the impact on our business, results and liquidity is yet limited however we have already taken a number of preventive measures to limit the impact on our future results and/or liquidity. Business continuity plans have been drafted and measures taken, amongst others are postponing salary increases (normally per April 1) and pay-out of the company profit 2019 related variable pay (normally in May) till October 2020, limiting non-essential expenditures and assessing all vacancies as well as the flexible shell of professionals who work with us and for us. The variable pay for the EB, as mentioned in the Annual Report, has not been paid out. Finally, we will apply for government assistance measures if possible, which may mitigate the impact of the COVID-19 outbreak on our results and liquidity.
Taken into account our current liquidity and solvency and the measures taken for the longer-term health of our company and thus our colleagues, we still conclude it’s appropriate to use of the going-concern assumption as basis of accounting.
Jasper de Wit