Boskalis_Annual Report_2017

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EXPLANATORY NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

1. GENERAL Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, dry and maritime infrastructure and maritime services sectors. Royal Boskalis Westminster N.V. (the ‘Company’) has its registered office in Sliedrecht, the Netherlands, and its head office is located at Rosmolenweg 20, 3356 LK in Papendrecht, the Netherlands. The Company is registered at the Chamber of Commerce under number 23008599 and is a publicly listed company on the Euronext Amsterdam. The consolidated financial statements of Royal Boskalis Westminster N.V. for 2017 include the Company and group companies (hereinafter referred to jointly as the ‘Group’ and individually as the ‘Group companies’) and the interests of the Group in associated companies and entities over which it has joint control. The consolidated financial statements were prepared by the Board of Management and were signed on 7 March 2018. The financial statements for 2017 will be submitted for approval to the Annual General Meeting of Shareholders on 9 May 2018. 2. COMPLIANCE WITH INTERNATIONAL FINANCIAL REPORTING STANDARDS COMPLIANCE STATEMENT 2.1 The consolidated financial statements and the accompanying explanatory notes have been prepared in accordance with International Financial Reporting Standards, as adopted by the European Union (EU-IFRS), and with Part 9 of Book 2 of the Dutch Civil Code. 2.2 The accounting principles applied to the valuation of assets and liabilities and the determination of results are the same as the valuation principles applied to consolidated financial statements in prior years. The following amendment is effective for 2017 and has been adopted by the European Union for 2017, however, it has no impact on the equity, results of and/or presentation by the Group. Amendments to IAS 7 ‘Statement of Cash Flows’ The Group has applied the amendments to IAS 7 ‘Statement of Cash Flows’ as of 1 January 2017 and as a result has included a movement schedule of interest-bearing borrowings (see note 24). ADOPTED NEW AND REVISED STANDARDS

Group does not adopt these standards and interpretations early and the exact extent of the possible impact has not been determined. The most important possible changes for the Group can be summarized as follows:  IFRS 9 ‘Financial instruments’ addresses the classification, measurement and recognition of financial assets and financial liabilities. This new standard replaces the guidance provided in IAS 39. The Group has assessed IFRS 9 ‘Financial Instruments’ and it is expected that the effect of implementation of this standard on the Group’s Statement of Profit or Loss and Statement of Financial Position and equity will be limited. This new standard does not change hedge accounting and allows more hedges to qualify for hedge accounting. The introduction of the required expected credit loss model may result in a non-material increase in the allowance for receivables at implementation and the changed accounting for modifications in fixed-rate financial instruments may affect the investment in joint ventures and associated companies. IFRS 9 is not expected to materially impact the results of the Group in subsequent periods. Quantitative analysis will be finished in the first half of 2018 and will be included in our 2018 half-year report. This new standard was endorsed by the European Union in the second half of 2016 and will be effective as of 1 January 2018.  IFRS 15 ‘Revenue from Contracts with Customers’ provides a framework for the recognition of income and will replace the current standards IAS 18 ‘Revenue’ and IAS 11 ‘Construction Contracts’. The Standard was endorsed by the European Union in the second half of 2016 and will be effective as of 1 January 2018. The effects of IFRS 15 include changing the thresholds for the recognition of variation orders and variable considerations, such as claims and incentives. The Group has assessed the possible effects. The impact is not expected to be material. Also, this standard requires additional internal documentation and additional disclosures, including disclosures regarding the order book. The Group intends to apply the fully retrospective approach and considers using certain practical expedients facilitated by IFRS 15 for the transition towards this new standard. The impact can therefore only be quantified from the effective date of 1 January 2018. Preparations for quantitative analysis commenced in the second half of 2017 and will be finished in the first half of 2018. This quantitative analysis will be included in our 2018 half-year report.  IFRS 16 ‘Leases’ replaces the current standard for leases (IAS 17) and provides a new framework for the recognition of lease contracts. The new standard mainly requires lessees to recognize a liability in their Statement of Financial Position and to capitalize the right-of-use of a leased asset if

ANNUAL REPORT 2017 – BOSKALIS FINANCIAL STATEMENTS 2017 ANNUAL REPORT 2017 -- BOSKALIS FINANCIAL STATEMENTS 2017 2.3 ADOPTED

NEW STANDARDS AND INTERPRETATIONS NOT YET

The following standards, amendments to standards and interpretations, were not effective in 2017 and / or not yet adopted by the European Union. As a consequence, these new standards, amendments and interpretations have not been applied in these consolidated financial statements. The