Boskalis_Annual Report_2017

ANNUAL REPORT 2017 – BOSKALIS 15

IN CONCLUSION Boskalis entered the 2017-2019 business plan period on a very solid basis, with a net debt-free balance sheet. Despite the challenging outlook our operating model based on our own assets means that we will continue to generate a healthy cash flow. In addition we have a strong global client base, highly committed and passionate employees and a state-of-the-art, versatile fleet. While we expect the operating environment to remain challenging during the business plan period, we want to use this period to invest counter-cyclically – sowing the seeds so we can reap the benefts in the future. In the course of 2017, we took a number of these steps and looking ahead we will continue to invest prudently in the business. Total capital expenditure over the business plan period is projected at around EUR 250 million per annum, in line with depreciation. This amount excludes any asset acquisitions, bolt-on acquisitions or consolidation opportunities that may arise. A healthy balance sheet is essential in our line of business. We believe a net debt/EBITDA ratio in a range of 1 to 1.5 through the cycle to be appropriate for our mix of activities. We expect to remain below this range during the business plan period, both as a matter of prudence and in order to have the flexibility to expand if opportunities present themselves.

We remain committed to our shareholders and recognize the importance of a healthy dividend. Our policy is to distribute 40% to 50% of the net proft from ordinary operations as dividend but we also strive to achieve a stable development of the dividend in the longer term, taking into account both the company’s desired balance sheet structure and the interests of shareholders. These considerations have led to the proposal to the Annual General Meeting of Shareholders to pay a dividend of EUR 1.00 per ordinary share resulting in a pay-out ratio of 87%. The dividend will be paid out in ordinary shares, unless shareholders opt to receive the dividend in cash.