Boskalis_Annual_Report_2016

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EXPLANATORY NOTES TO THE COMPANY FINANCIAL STATEMENTS

1. GENERAL The company financial statements of Royal Boskalis Westminster N.V. (the ‘Company’) are included in the Consolidated Financial Statements 2016 of Royal Boskalis Westminster N.V.

2. PRINCIPLES OF FINANCIAL REPORTING ACCOUNTING POLICIES 2.1

The company financial statements have been drawn up using the reporting standards applied for preparing the consolidated financial statements, in accordance with Section 362(8), Part 9 of Book 2 of the Dutch Civil Code except for with regard to the investment in its subsidiary. Based on Section 362(1), Part 9 of Book 2 of the Dutch Civil Code, the consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. These accounting principles are disclosed in note 3 of the consolidated financial statements, unless stated otherwise below. 2.2 Unless stated otherwise, all amounts in these explanatory notes are stated in thousands of euros. The company statement of financial position is drawn up before profit appropriation. 2.3 Investments in Group companies are accounted for using the accounting policies for assets, liabilities, provisions and profit or loss, as described in the principles of financial reporting and applied in the consolidated financial statements of Royal Boskalis Westminster N.V. 2.4 Amounts due from Group companies are stated initially at fair value and subsequently at amortized cost, using the effective interest rate, less impairments. 2.5 Amounts due to Group companies are recognized initially at fair value and subsequently at amortized cost, using the effective interest rate. 2.6 The result of Group company consists of the share of the Company in the result after taxation of this Group company. Results on transactions, where the transfer of assets between the Company and its subsidiary and mutually between Group companies are incorporated insofar as they can be deemed to be realized as a transaction with third parties and joint venture partners. 3. INVESTMENTS IN GROUP COMPANIES Investments in Group companies solely consist of the 100% investment in Boskalis Westminster Dredging B.V., Papendrecht. The table below shows the movements in this investment: FORMAT INVESTMENTS IN GROUP COMPANIES AMOUNTS DUE FROM GROUP COMPANIES AMOUNTS DUE TO GROUP COMPANIES RESULT OF GROUP COMPANY

Balance as at 1 January ANNUAL REPORT 2016 – BOSKALIS FINANCIAL STATEMENTS 2016 Dividend received Profit/loss (-) for the year Balance as at 31 December

2015

2016

3,148,676

3,708,614

- 50,000 440,178 169,760

- 51,000 - 563,730

Movements directly recognized in equity of group company

26,352

3,708,614

3,120,236

See notes 17 and 30.1 of the consolidated financial statements 2016 for an overview of the most important directly and indirectly held Group companies.