Boskalis Annual Report 2020
Key achievements in 2020: We installed more than 5,350 solar panels on the roof of our distribution center in Vlaardingen, the Netherlands, generating around 15% of our total energy consumption in the Netherlands. In 2020, 80% of our tenders in the Netherlands incorporated a sustainability component of which over 90% were climate related. On successful tenders, we typically work with our client to develop a sustainability plan. The carbon reduction measures are often a combination of project design, the use of low carbon fuels and increased energy efficiency. Boskalis continues to research alternative fuel types – ultimately, cleaner fuels will be the biggest enabler of global, sustainable business practices. Besides the continued application of biofuel in projects, we are part of a global initiative looking at the potential of hydrogen for the shipping industry, as well as a joint industry project, Green Maritime Methanol, exploring the possibilities methanol could hold for the industry. Furthermore, in 2020 we became part of a joint academic and private sector consortium ‘Clean Shipping’ led by the Delft University of Technology. This research will advance knowledge for the scaling of sustainable biobased value chains for maritime biofuels. For a more detailed overview of our recent sustainability achievements, please refer to our latest Sustainability Report (boskalis.com/reports). HUMAN EXCELLENCE Our clients demand more integrated and innovative solutions and expect us to have a thorough understanding of their operating environments and stakeholders. Additionally, they expect us to provide ever more value for money often in combination with increased local content requirements. The fact that technology is commoditizing rapidly and capital is in abundance at low cost, makes human capital the main differentiator for a sustainable competitive advantage. In view of the above, recruitment, retention and development of excellent staff is considered the main pillar of our strategic framework. For this purpose, we have intensified the development and implementation of initiatives and tools to source the right talent from the international labor market as well as to monitor, develop and steer internal talent and improve internal mobility. We will also continue to refresh and optimize our HR-processes around performance management, leadership- and talent development, knowledge sharing and employee engagement. Key achievements in 2020: In light of the COVID-19 pandemic, we moved our recruitment activities online, creating ‘e-house’ days instead of in-house days, and promoting them through social media. By digitally interacting with potential new employees, we were able to conduct conversations with candidates from all over the world, broadening our reach and our access to professionals with strategically important competencies. With so many of our employees working at home, or away on ships for longer periods than usual due to COVID-19 related (travel) restrictions, we undertook a range of initiatives to keep our employees motivated and engaged. Details of all these
initiatives can be found in the special COVID-19 section of our Sustainability Report. In 2020, we set ourselves the target of improving internal mobility and retention as well as for reviewing and refreshing our approach to performance management and talent development. Development tracks have been developed for employees involved in primary processes, a development toolbox for teams and individual employees and a new Development Framework were introduced. For a more detailed overview of our talent management and engagement results, please refer to our latest Sustainability Report (boskalis.com/reports). IN CONCLUSION What was expected to be the promising start of an auspicious new business plan period has turned into a period in which the COVID-19 pandemic has dictated our daily lives. We entered 2020 on a very solid basis, both in terms of business fundamentals and financial resilience. In addition, we have a strong global client base, highly committed and passionate employees and a state-of-the-art versatile eet. Despite the immediate impact of COVID-19 on our day-to-day operations, good progress was made on many of the strategic initiatives that successfully strengthened the company. Furthermore, the balance sheet remained extremely solid, selective acquisitions were completed and we ended 2020 with a record high orderbook. We expect the COVID-19 pandemic will gradually be brought under control in the coming six to twelve months. Boskalis will again review its relevant end-markets in the second half of 2021 with the intent to publish a new Corporate Business Plan for the period 2022-2024 in March 2022. A healthy balance sheet is essential for our lines of business. We believe a net debt/EBITDA ratio in a range of 1 to 1.5 throughout the cycle to be appropriate for our mix of activities. We expect to be at or below this range in the coming years, both as a matter of prudence and in order to have the exibility to further expand if opportunities present themselves. We remain committed to our shareholders and maintain our current dividend policy which is based on distributing 40-50 percent of the net profit from ordinary operations. Whilst depressed earnings are recovering, a stable all cash dividend with a higher payout ratio is expected to continue. Furthermore, the current share buyback program is expected to be completed in the course of 2021. Subject to market conditions at that point in time a new share buyback program may be considered.
ANNUAL REPORT 2020 – BOSKALIS
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