Boskalis Annual Report 2020

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KEY AUDIT MATTER

OUR AUDIT APPROACH

KEY OBSERVATIONS

RECOGNITION AND VALUATION OF UNCERTAIN TAX POSITIONS (SEE NOTES 3.28 AND 12, 13, 14) Boskalis operates in a range of jurisdictions

We tested the acceptability of the accruals formed in this estimation process. In doing so, we used tax specialists in reviewing the assumptions underlying the estimates and discussing them with management in the light of (local) tax rules & regulations and revisions to the transfer pricing policy. In connection with this, we also devoted attention to the substantiation of the estimated probability of the positions taken and details provided thereon by management and we assessed the historical accuracy of management’s assumptions. We have, amongst others, inspected the agreements, confirmed that the correct accounting treatment has been applied and appropriate disclosures have been made. We evaluated the work of the management’s specialist used for the purchase price allocation. We also audited the identification and fair valuation of the assets and liabilities the group acquired. In doing so we have utilized valuation specialists to assist us.

We assessed that the Company’s accounting policies were appropriately applied. Furthermore, we have assessed that management assumptions and estimates are within an acceptable range. We further assessed that the disclosure notes relating to uncertain tax positions are appropriate.

subject to different tax regimes. The cross-border operations may result in estimation differences or disputes with national tax authorities. If management considers it probable that such disputes will lead to an outflow of resources, accruals have been formed accordingly. Based on the above, we identified correct and complete recognition of accruals for uncertain tax positions and adequate disclosure of uncertain tax positions as significant to our audit. in the Horizon Group. At the end of 2020 Boskalis acquired all of the shares of Revers Offshores’ subsea services business. We considered management override of controls relating to significant judgments and assumptions involved. The increase in the goodwill recognized under intangibles related to the Horizon transaction amounted to EUR 73 million. The acquisition of Rever Offshore resulted in a gain on acquisition of EUR 6 million. These acquisitions are significant to our audit due to the impact on the financial statements and because of significant judgments and assumptions involved in the purchase price allocation. ACCOUNTING FOR BUSINESS COMBINATIONS (SEE NOTE 5) During 2020 Boskalis obtained control through the acquisition of the remaining shares (37.5%)

We have assessed that management assumptions and estimates are within an acceptable range. We evaluated the adequacy of the company’s disclosures regarding the accounting of these business combinations. Furthermore, the disclosures are in accordance with IFRS.

Management is responsible for the preparation of the other information, including the management board report in accordance with Part 9 of Book 2 of the Dutch Civil Code, other information required by Part 9 of Book 2 of the Dutch Civil Code and the remuneration report in accordance with Sections 2:135b and 2:145 sub-section 2 of the Dutch Civil Code.

REPORT ON OTHER INFORMATION INCLUDED IN THE ANNUAL REPORT

In addition to the financial statements and our auditor’s report thereon, the annual report contains other information that consists of: ‚ the Report of the Board of Management and the Report of the Supervisory Board (including the remuneration report); ‚ the Chairman’s Statement, Boskalis at a Glance and Other Information; ‚ other information required by Part 9 of Book 2 of the Dutch Civil Code. Based on the following procedures performed, we conclude that the other information: ‚ is consistent with the financial statements and does not contain material misstatements; ‚ contains the information as required by Part 9 of Book 2 and Sections 2:135b and 2:145 sub-section 2 of the Dutch Civil Code. We have read the other information. Based on our knowledge and understanding obtained through our audit of the financial statements or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of Part 9 of Book 2 and Section 2:135b sub-Section 7 of the Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the financial statements.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS AND ESEF

ENGAGEMENT We were engaged by the Annual General Meeting as auditor of Royal Boskalis Westminster N.V. on 13 May 2014, as of the audit for the year 2014 and have operated as statutory auditor ever since that date. NO PROHIBITED NON-AUDIT SERVICES We have not provided prohibited non-audit services as referred to in Article 5(1) of the EU Regulation on specific requirements regarding statutory audit of public-interest entities. EUROPEAN SINGLE ELECTRONIC REPORTING FORMAT Royal Boskalis Westminster N.V. has prepared the annual report in the European single electronic reporting format (ESEF). The requirements for this format are set out in the Commission Delegated Regulation (EU) 2019/815 with regard to regulatory technical standards on the specification of a single electronic reporting format (hereinafter: the RTS on ESEF).

ANNUAL REPORT 2020 – BOSKALIS