In 2023, we entered the second phase of our strategy, DHI+, which was launched in 2021. Having successfully completed the ’Connecting’ phase, we moved forward into the ’Innovating’ phase. During the year, we have worked closely with our clients and partners to identify and prioritise the major innovation challenges they are facing, in order to direct our innovation efforts at where they matter the most.

And innovation is needed more than ever; 2023 was the warmest year on record. Sea temperatures reached an all-time high and biodiversity suffered. Some countries experienced the worst droughts in decades, others had the wettest year ever, and groundwater pollution was on the rise. The United Nations held a global Water Conference for the first time in 49 years, and DHI was present. At COP28, we saw countries unite to take real action.

Increasing investments in RD&I
At DHI, we intensify our innovation efforts to enable a sustainable future for water. During 2023, as part of the ‘Innovating’ phase of our strategy, we increased our investment in research, development and innovation (RD&I) to EUR 14.4 million, up 6.7% from last year, due to more internal investments and by attracting more external research funding. One of the outcomes is that we will increase our RD&I within wetlands, which are undervalued ecological systems critical for biodiversity and carbon capture.

During the year, we experienced increased innovation success with our newly launched solutions, including Future City Flow, which helps cities manage their water flow, and MUSE AI, which helps protect endangered bird species across the oceans. New developments in our MIKE Powered by DHI software suite ensured that MIKE continues to set the standard for modelling software globally.

Our financial results highlight another year of very high growth rates. Despite significant negative impact on revenue and earnings due to the economic downturn in the Chinese market, our order inflow was at an all-time high of EUR 120.4 million, up 13.3% from the year before. Revenue increased by 11.2% organically to a record high of EUR 132.1 million, surpassing the previous record set in 2022. EBITDA was EUR 2.4 million, which was 0.7 million higher than in 2022, and EBIT ended at EUR 0.0 million, after RD&I investment.

Developing our people
Innovation is deeply dependent on the capabilities of the people involved, and for many years the people at DHI have raised the bar for innovation in the water business. But we do not rest on our laurels. As part of the ‘Innovating’ phase, we have strengthened our innovation power by introducing new career paths and development opportunities, including global mobility programmes.

Our people engagement increased further, and our voluntary resignation rate declined. In addition, we attracted a lot of new talented colleagues all over the world, from East to West.

Advancing our sustainability efforts
DHI is a signatory member of the United Nations Global Compact (UNGC) and its 10 principles, and we took steps to advance our sustainability efforts further. We remain committed to reducing our own energy use and carbon footprint, aiming to achieve net zero by 2025 for sources that are owned or controlled by DHI.

In 2024, we are celebrating the 60th anniversary of DHI. Originating as a small carve-out from the Danish Technical University, we have grown into a global organisation thanks to the dedication, skills and innovative mindset of the people of DHI, who understand water and its impact on society and nature better than anyone.

Across DHI, we continue enabling a sustainable future for water and water-related ecosystems.