Boskalis Annual Report 2018

ANNUAL REPORT 2018 – BOSKALIS 4 CHAIRMAN’S STATEMENT Reflecting on 2018, it was a year with some appealing highlights in a market that continues to be challenging. With our offshore transport activities we set a new record with the transport of the heaviest cargo ever whilst in dredging we concluded a very large dry-excavated harbor basin in Duqm, Oman. In the market environment in which we operate we see cautious signs of recovery in due course, although we are still a long way away from the exuberant market climate of three to five years ago. We closed 2018 with an order book of EUR 4,292 million, almost 23% higher than twelve months earlier. Revenue amounted to EUR 2,570 million and there was a sharp decline in the net proft adjusted for impairments and extraordinary charges to EUR 83 million. The decline in proftability was mainly due to a steep drop in the result of the Offshore Energy division where the transport activities suffered, in particular at the low end of the market. Following a review of our position, in a market which offers no prospects for improvement, it was decided to fully exit this loss-making segment. Due in part to this decision, as well as impairment charges in the towage division, an extraordinary charge of EUR 519 million was recognized, consisting mainly of goodwill impairments and a write-off of vessels. Based on our solid balance sheet and the strong cash flow we expect to continue to generate, we have for the purpose of the dividend adjusted the net loss for the extraordinary charges. We propose to pay-out 79% of the adjusted net proft equivalent to a dividend of EUR 0.50 per share, which will be paid out in cash. During the year further progress was made in the execution of our strategy. In February the 3,000-ton crane vessel Bokalift 1 entered into service. It is a truly unique transport and installation vessel with its revolving crane and large deck area and it had a busy frst year installing turbine foundations for a sizable wind farm. Following the strong performance by the mid-2017 acquired survey activities of Gardline, we further expanded our position in survey by investing in a new vessel and acquiring a majority stake in the Middle East survey operator Horizon. In 2018 we also strengthened our offshore cable installation position through the intended acquisition of the cable-laying assets of Bohlen & Doyen in Germany. A welcome addition following a string of large contract wins in this market. And in the closing weeks of the year we signed a multi-year charter for a construction support vessel, a necessary addition to strengthen our proposition in the higher end of the installation market. CHAIRMAN’S STATEMENT

DREDGING & INLAND INFRA Early 2018 we secured two prestigious projects which are critical for the further development of Singapore with a combined value of EUR 700 million. The frst project relates to the expansion of Tuas Port. For Finger Pier 3 we will design and construct 387 hectares of land reclamation works bounded by 9.1 kilometers of caisson walls in consortium with Penta Ocean and Hyundai. The second project marks the construction of Singapore’s frst polder, Pulau Tekong. The project comprises dike closures, dike reinforcements, drainage of the reclamation area and extensive dry earthmoving activities in joint venture with Penta Ocean. Early October the green light was given for the LNG Canada export facility contract in Kitimat. The dredging scope for Boskalis includes the removal and cleaning of contaminated and non-contaminated soil from the site of the future facility. In the Netherlands we acquired the contract for the expansion of the IJburg district of Amsterdam, involving the construction of an artifcial island in the IJmeer lake, adjacent to the existing IJburg islands. In addition, in the course of the year, we acquired numerous Inland Infra projects in the Netherlands, including the N69 project, involving the construction of the new road connection linking the N69 provincial road with the A67 motorway in the south of the Netherlands.