Boskalis_Annual Report_2017

ANNUAL REPORT 2017 – BOSKALIS 5

SAFETY AND QUALITY Safety is paramount at Boskalis. For an increasing number of projects, Boskalis works with partners including subcontractors and suppliers who each have their own approach to safety. To guarantee safety on such projects, special NINA (No Injuries, No Accidents) training and induction sessions were introduced for these partners and toolbox sessions were held during operations. The NINA program was also successfully rolled out at VBMS and our Offshore Wind business unit. A Boskalis-wide NINA portal was launched to enhance internal knowledge and information sharing. In 2017, we also took an important step in the optimization of our organization with the introduction of our new quality management system: the Boskalis Way of Working (WoW). The system allows for an integrated business process and uniform customer approach, complementing existing processes, tools and certifications. WoW is a transparent and easy-to-apply approach accessible to every Boskalis employee. At the same time, it helps us present a single, recognizable face to our clients. ONE BOSKALIS 2017 was a challenging year. We went through a difficult period with the head office reorganization, but we are convinced that we have a bright future ahead of us. With the acquisition of Gardline and the two diving support vessels, we added a number of important building blocks and more additions are set to follow. With WoW we have taken a major step towards bringing together the various business units, each with their unique background. Nevertheless, we believe further steps need to be taken to create a unified Boskalis in which we make optimum use of our combined capabilities and innovative power. Such unity is also needed to present ourselves to the market as a single company, offering a unique combination of people, vessels and activities. In the course of 2018, we will therefore transition to a single brand name for our activities: Boskalis. OPPORTUNITIES The current market conditions are expected to continue in the period covered by our 2017-2019 business plan. We do not expect a swift recovery of the market, but are also convinced that the medium-term will once again offer us plenty of opportunities. We are well-disciplined in targeting the opportunities that arise in the market by being selective, customer-oriented, creative and persistent. With this focus we are convinced that our unique offering, together with our financial discipline, will help us come out of the current downturn as a winner. On behalf of the Board of Management I want to thank all colleagues for their contribution during the past year, as well as thank our clients, partners and shareholders for the trust and confidence they place in us.

In Brazil we successfully concluded the sizable expansion of the Porto do Açu Oil Transshipment Terminal along with many smaller international projects. In the Netherlands we were involved in high- profile projects such as the realization of the Marker Wadden nature area, the IJsseldelta Room for the River project, the Houtrib dike reinforcement and the completion of the impressive SAAone project. All-in-all, after a very lean 2016 we achieved some good successes in 2017, resulting in a higher utilization of the dredging fleet. OFFSHORE ENERGY Despite the difficult market conditions in the offshore sector, Boskalis acquired a healthy number of contracts in Offshore Energy. A major project over the coming two years is Nord Stream 2. The works are part of the construction of the planned twin 1,200 kilometer pipelines that will transport gas from Russia to Europe via the Baltic Sea. Our offshore cable-laying business had a very successful year, both in terms of order wins and project execution. Acquired contracts included East Anglia ONE, Hohe See and Borssele Beta. As for project execution activities, VBMS was busy carrying out cabling work for the Galloper, Dudgeon, Rampion and Horns Rev 3 wind parks. Highlight of the year for Dockwise came in December with the installation of the Aasta Hansteen topside. Earlier in the year the Vanguard transported the Aasta Hansteen SPAR platform from South Korea to Norway, whilst the White Marlin transported the topside. The subsequent unique catamaran topside float-over operation was carried out in a Norwegian fjord to the full satisfaction of Statoil. For the East Anglia ONE wind farm we are involved in three activities: transporting the jacket foundations, installing them and laying of cables. At Offshore Energy we also executed several multi-disciplinary projects involving various Boskalis business units and vessels. A good example was the installation of the DolWin Gamma platform for TenneT in the German section of the North Sea. This involved a unique combination of seabed preparation using a trailing suction hopper dredger and a fallpipe vessel, subsea work using a diving support vessel, and transport and installation work TOWAGE & SALVAGE At Towage, Kotug Smit Towage made good progress with the organizational integration as well as the optimization and reallocation of its fleet in 2017. Saam Smit Towage started operating in two new ports in Brazil and commissioned new tugs in Canada and Brazil, partly as replacement but also as an expansion of the fleet. Smit Lamnalco successfully extended a number of sizable multi-year terminal services contracts. Salvage can look back on a reasonable year. In the absence of major wreck removal projects, activities were limited to many smaller emergency response jobs in the second half of the year. Examples include the high-profile emergency response activities for a 14,000 TEU container vessel which ran aground near the port of Antwerp and the refloating of the Glory Amsterdam bulk carrier near the German Wadden island of Langeoog. using anchor handlers and a barge. It is precisely such combinations of activities and vessels that present us with opportunities in the market that set our company apart.

Peter Berdowski