6.3 Revenue

The disaggregation of revenue into categories that reflect the nature, the amount, the timing and the uncertainty of revenues and cash flows are affected by economic factors is in line with the segment information per sector.

Revenue per sector

x € 1,000

The revenue from Property Development is primarily related to revenue from residential and property development projects developed by Heijmans for private buyers, amounting to approximately € 296 million (in 2022, approximately € 461 million), and approximately € 116 million (in 2022 approximately € 109 million) for real estate investors and housing associations, generally involving the delivery of both the land and the buildings. Projects for private buyers are usually not started until at least 70% of the homes have been sold. Invoicing of private buyers is in line with the schedule adopted by the SWK (Stichting Waarborgfonds Koopwoningen - Owner-Occupied Housing Guarantee Fund), which is linked to predefined milestones. The first instalment is invoiced when title to the land is transferred. Construction work on projects for property investors and housing associations does not start before the sale has been completed. The invoicing schedule is agreed with each client and, as in the case of private buyers, is generally linked to the completion of milestones, the first instalment being invoiced upon conveyance of the land. Revenue from the land is recognised at the time of conveyance at the notary, while the revenue from the buildings is recognised during the course of the construction period.

The revenue from Van Wanrooij, acquired in September 2023, is mainly related to revenue from residential and real estate projects developed in-house for private buyers of approximately € 89 million (in 2022: nil), and for real estate investors and housing corporations of € 35 million (in 2022: nil), generally involving the delivery of both the land and the buildings. Projects for private buyers are usually not started until at least 70% of the homes have been sold. Invoicing to private individuals is in line with the Woningborg (housing guarantee) schedule that is linked to predefined milestones. The first instalment is invoiced upon delivery of the land. Construction work on projects for property investors and housing corporations does not start until the sale has been completed. Invoicing is agreed with each client and, as in the case of private buyers, is generally linked to the completion of milestones, with the first instalment being invoiced upon conveyance of the land. Revenue from the land is realised at the time of conveyance at the notary, while revenue from the buildings is recognised in the course of the construction period.

The revenue generated by Building & Technology mainly relates to the construction of homes and non-residential buildings and related installation work on behalf of clients in the private sector and the public or semi-public sector, amounting to approximately € 729 million (approx. € 650 million in 2022). Construction only commences when orders have been confirmed. Invoicing is according to a stage-based schedule, which may differ from one contract to another. Revenue is recognised during the course of the construction period. Other work involves service activities on clients’ buildings and installations. Revenue from these activities, of approximately € 347 million (approx. € 283 million in 2022), is recognised as and when this service and maintenance work is carried out. A major client for the construction of residential property is Heijmans Property Development, representing internal revenue that is eliminated.

The revenue generated by Infra mainly relates to the construction of roads and other civil engineering works on behalf of public authorities, and amounted to approximately € 494 million (approx. € 438 million in 2022). Construction only commences when orders have been confirmed. Invoicing is according to a stage-based schedule, which may differ from one contract to another. Revenue is recognised during the course of the construction period. Heijmans also carries out service and maintenance work on pieces of infrastructure. Revenue from these activities, of approximately € 306 million (approx. € 223 million in 2022), is recognised as and when this service work are carried out.

In 2023, Heijmans recognised revenue totalling € 196 million (2022: € 185 million) and included this amount in work in the item ‘work in progress liabilities’ as at 1 January.

In 2023, Heijmans recognised an expense of € 3 million (2022: revenue of € 4 million) related to performance obligations fulfilled in earlier periods.

The amount of the transaction price that has been attributed to performance obligations that have not been fulfilled (in whole or in part) is approximately € 2.6 billion (2022: € 2.2 billion, excluding Van Wanrooij). Of this, approximately 58% will be fulfilled in 2024, 26% in the period 2025 and 2026 and 16% in 2027 and beyond (2022: approximately 53% in 2023, 29% in the period 2024 and 2025 and 18% in 2026 and beyond). The disclosed amounts concern contracted revenue and include only revenue that is highly probable. Revenue generated by contracts for which the unit price but not the volumes has been agreed have not been included in the disclosed amounts. The Group has not made use of the practical option of not disclosing performance obligations forming part of a contract with an originally expected completion date of one year or less.

The Group has not adjusted revenue for significant financing components partly because the period between fulfilment of the performance obligations and payment by the client is less than one year.