‘We are done with the coronavirus, but the virus is not done with us’ is the statement of the Dutch government to keep the residents alert and indicating that the end of the covid crisis is not yet in sight. Unchanged, ROTO follows the measures of the authorities and these measures have a major impact on the way in which our employees have to do their work: in the workplace, in the office, but also in sales, for example, because visiting customers is subject to restrictions.
The economic reality in the countries in which ROTO operates has an impact on the group’s results. One Business Unit is more affected than the other, but the general tendency is that the impact is substantial. The future consequences of the covid pandemic are incalculable and depend on possible mutations of the virus, the effectiveness of vaccines and their availability. The main risks for ROTO are indicated in the management report. The uncertainties about the impact and duration of the measures make it difficult to make accurate statements about the economic consequences.
“ TOGETHER flexible, TOGETHER strong
Fortunately, ROTO’s solvency and liquidity position are strong and form a solid financial basis from which ROTO can continue to develop. This is also evident from the various investment initiatives that were launched in 2020 and will continue in 2021. Management therefore expects ROTO to be well equipped to deal with the consequences of covid, partly supported by the compensation measures taken by the authorities. Despite halving the result for 2020 compared to the budget, the management is looking positively at the challenging 2021. New initiatives and strategic focus of the Business Units give confidence.
Expectations for economic recovery after the covid crisis are high. However, ROTO also has to deal with developments in the construction sector as a result of the nitrogen and PFAS policies, which will undoubtedly continue to play a role and become visible to ROTO with delay because the ROTO companies often operate at the end of the (building construction) chain. In addition, other uncertainties, such as the price fluctuations of key commodities, also play a role. On the other hand, there are government measures aimed at preserving employment and incentive programmes to provide economic impetus to initiatives that would not otherwise be taken in the existing precarious situation.
The start of 2021 meets the relatively low and budgeted expectation. The zinc price shows a moderately positively trend, so that the positive operational result for the first months of 2021 is in any case not affected by negative price adjustments. Steel prices have continued to rise for the time being, but market conditions are erratic.
At the beginning of 2021, ROTO took new initiatives to further explore its strategic choices. Safety is number one and remains an important spearhead within the operational management of the Business Units. In 2021, for the first time an employee survey, the RPS (Roto People Survey) will be carried out among all ROTO employees in the Netherlands and abroad. All employees are encouraged to participate, because the broader the group of participants, the broader the support for linking concrete actions to the results
Ger de Kwaasteniet
Innovation and digitalisation are permanent spearheads that can no longer be ignored in the way of working. Commerce and marketing go hand in hand and need to develop new markets to allow more customers to encounter the goods and services of the ROTO companies. Sustainability is further anchored in the DNA of the organisations, partly based on the 17 SDGs of the United Nations. With the commissioning of the first solar panels in Uitgeest, another step has been taken within Corporate Social Responsibility. Several locations are expected to follow this initiative and thus also contribute to reducing CO2 emissions. Group-wide KPIs have been developed for all the above themes, based on which initiatives are stimulated and achieved goals can be measured. Social developments encourage ROTO to continue with this policy.
“ Many thanks Ger!