Boskalis_Annual Report_2017

report of the board of management ANNUAL REPORT 2017 – BOSKALIS 46 In 2017, a group of young professionals, with a background in cost engineering, embarked on a one-and-half-year post-bachelor Cost Engineer Program developed by Boskalis in collaboration with the Dutch Association of Cost Engineers, and approved by the International Cost Engineering Council. A Boskalis Surveyor Graduate Program was attended by a group of young survey professionals. The program is geared towards introducing participants to the diversity of Boskalis projects and work scope and preparing them to be able to operate independently and safely on-site at projects worldwide. Management Development Programs Leadership and personal development are ongoing points of attention within our organization. Developing personal leadership, building an internal network and encouraging innovation and entrepreneurship are important core values in our management development programs. Middle management should prioritize the learning and development of employees, creating a culture that stimulates open idea sharing. The new, one-year Boskalis Operational Development Program kicked off in March 2017. A group of twenty project managers from all three divisions worked on improving hard and soft leadership skills, safety, professional development and on stimulating company-wide knowledge sharing. Employee Engagement and Enhanced Employability An engaged workforce is key to achieving our ambitions. In a labor market where it is becoming more diffcult to attract certain specialists and where a proper work/life balance is increasingly valued as important, engagement is paramount. In order to remain successful in an increasingly competitive market, a four-day Contractual Awareness course has been developed in collaboration with TSM Business School. This course is focused on our project-driven business for people operating at the very frontline. The participants are coached to overcome challenges faced by them in the increasingly competitive and innovation driven marketplace. The course was given twice in 2017, with participants from throughout Boskalis. In addition, both the Dredging as well as the Offshore Energy divisions launched a Commercial Awareness program to improve competencies in this area. The Commercial Awareness training will be offered to a large number of colleagues in 2018. We refer to our CSR report for further information on social and personnel matters (including diversity) and our policies, outcome of these policies, risks, how these risks are managed and related non-performance indicators. FLEET DEVELOPMENTS Boskalis makes targeted investments in new build and existing vessels to retain or expand our market position. At the same time, old or non-strategic vessels are taken out of service. In 2017, the following major developments took place: Dredging ‚ ‚ The self-propelled mega cutter Helios was taken into service in July 2017. With a total installed power of almost 24,000 kW,

a total pumping capacity of 15,600 kW and a maximum cutter power of 7,000 kW, the Helios is one of the most powerful cutter suction dredgers in the industry and the largest ever developed by Boskalis. The Helios is being deployed on the Duqm port development project in Oman. ‚ ‚ In 2017 the decision was taken to build a sister vessel of the Helios. This cutter suction dredger is expected to be taken into service in the course of 2020. ‚ ‚ 2017 saw the environmentally responsible dismantling of the trailing suction hopper dredger Meerval and the crane barge Schorpioen. The trailing suction hopper dredgers Flevo and WD Mersey as well as the multicat BKM101 were sold. Offshore Energy ‚ ‚ In February 2018 the transport and installation crane vessel Bokalift 1 was taken into service. This converted heavy transport vessel is equipped with a 3,000 tons capacity pedestal crane, dynamic positioning (DP2) and accommodation for up to 150 people. ‚ ‚ We strengthened our subsea services proposition in the area of inspection, repair and maintenance of subsea offshore installation, pipelines and cables with the addition of two large DSVs, the Atlantis and the Da Vinci. The vessels are equipped with two bells for saturation diving work to a depth of 300 meters and provide accommodation for 120 crew. ‚ ‚ Furthermore, through the acquisition of Gardline, Boskalis acquired 15 survey related vessels in addition to 25 smaller vessels including crew transfer vessels and survey catamarans. ‚ ‚ As announced previously the heavy transport vessel Tern, the floating sheerleg crane Taklift 6 and the offshore support vessel Smit Orca were dismantled environmentally responsibly in the course of 2017. At the end of 2017 the anchor handling tug President Hubert was taken out of service to be dismantled. REDUCTION OF EMISSIONS FROM FLEET Boskalis measures and reports on the fleet’s total CO 2 emissions based on fuel consumption. In 2017 total emissions of the group amounted to 1.23 million tons of CO 2 (2016: 1.25 million tons). With a large global fleet, Boskalis is constantly on the lookout for ways to reduce our dependence on fossil fuels and means to reduce emissions. We continually monitor and anticipate changes in national and international legislation and create the right conditions for rapid implementation of new technologies where required. In 2017, we followed up on the biofuel pilot program by operating one of our dredging vessels on a biofuel blend on the Marker Wadden project in the Netherlands. The biofuel pilot program was launched in 2015 in consortium with GoodFuels and Wärtsilä and was targeted at developing biofuels that meet the most stringent sustainability standards and offer substantial reductions in emissions. Early 2018, the biofuel initiative was stepped up by signing a fve-year biofuel supply contract with GoodFuels. The biofuel feedstock is highly sustainable and has a drop-in quality allowing in tank blending with conventional diesel or marine gas oil. Boskalis will initially be applying and offering the biofuel blend on