Boskalis 2018 Half Year Report

HALF YEAR REPORT 2018 – BOSKALIS 13

The Bokalift 1 installing jacket foundations for a wind farm in the North Sea.

ORDER BOOK The order book, excluding our share in the order book of joint ventures and associated companies, was EUR 16.6 million on 30 June (end-2017: EUR 6.7 million). The order book relates solely to the Salvage business unit.

In recent years, all the harbor towage activities were transferred to joint ventures. Our share in the net results of the towage joint ventures is recognized as net result from joint ventures and associated companies. SEGMENT RESULT EBITDA for the Towage & Salvage segment totaled EUR 15.4 million, with an operating result of EUR 14.0 million (H1 2017: EUR 17.8 million and EUR 16.7 million, respectively). The Salvage result includes results from ongoing projects in addition to financial settlements from projects that were executed in previous years. Such settlements are a common part of the salvage business. The actual size and timing thereof are however unpredictable. The segment result includes our share in the net result from joint ventures and associated companies, the main ones being Smit Lamnalco, Keppel Smit Towage, Saam Smit Towage and Kotug Smit Towage. The contribution from these joint ventures was EUR 11.9 million (H1 2017: EUR 15.7 million). The Keppel Smit and Kotug Smit joint ventures continue to feel the effects of increased competition and price pressure, in particular from the container shipping industry. These developments led to a critical evaluation of the book value of these joint ventures, resulting in an impairment charge relating to goodwill embedded therein.

HOLDING AND ELIMINATIONS

Non-allocated head office activities.

1 ST HY 2018 1 ST HY 2017

2017

HOLDING AND ELIMINATIONS

(in EUR million) Revenue

-10.8 -18.8

-7.5

-28.3 -38.7

EBITDA

-10.4

-

Net result from JVs and associates

-

1.1

-21.2

Operating result

-12.8

-43.3

SEGMENT RESULT The operating result for the reporting period mainly includes the usual non-allocated head-office costs, as well as various non-allocated (in many cases non-recurring) income and expenses. The operating result in the first half of 2017 included a positive result on the sale of real estate.