Boskalis Annual Report 2020

report of the board of management ANNUAL REPORT 2020 – BOSKALIS OPERATING RESULT BY SEGMENT (in EUR million) Dredging & Inland Infra Offshore Energy Towage & Salvage Non-allocated group (costs) result Operating Result Exceptional items EBIT NET PROFIT The pre-tax loss amounted to EUR 70 million, resulting in a net loss attributable to shareholders of EUR 97 million (2019: profit of EUR 95 million and EUR 75 million, respectively). Adjusted for the exceptional charges, the 2020 net profit amounted to EUR 90 million. ORDER BOOK In 2020, Boskalis acquired, on balance, EUR 3,405 million worth of new contracts. At the end of the year the order book, excluding our share in the order books of joint ventures and associates, 40 The operating result, defined as EBIT adjusted for exceptional items, increased to EUR 140 million (2019: EUR 28 million). EBIT amounted to minus EUR 56 million (2019: EUR 111 million). The result includes our share in the net result of joint ventures and associates of EUR 19 million (2019: EUR 26 million). This decline is largely attributed to Horizon which in 2019 was an associated company and is consolidated as per the beginning of 2020. The divisional operating result of Dredging & Inland Infra amounted to EUR 53 million (2019: EUR 108 million). The lower result is a consequence of COVID-related productivity inefficiencies and the associated lower activity level as well as very competitive market circumstances. Within Offshore Energy, the operating result amounted to EUR 66 million (2019: minus EUR 71 million). The strong increase was driven by a combination of factors. Within the services cluster this resulted from an improvement within marine transport services and the consolidation of Horizon. Within the contracting cluster, the wind activities contributed to the improved result together with a strong year from seabed intervention in addition to claim settlements on a limited number of offshore wind projects. The Towage & Salvage operating result increased to EUR 46 million (2019: EUR 38 million). A decline within the Towage activities was more than offset by the strong performance at Salvage. Non-allocated group income and expenses amounted to negative EUR 25 million and relate primarily to the non-allocated head-office costs (2019: negative EUR 46 million). The decline in the expenses reflects the COVID-19 cost savings measures taken. 2020 2019 53.2 66.3 45.6 -25.3 139.8 107.6 -70.9 37.9 -46.1 28.5 -195.4 82.3 -55.6 110.7

stood at a record high level of EUR 5,306 million (end-2019: EUR 4,722 million).

2020

2019

ORDER BOOK

(in EUR million) Dredging & Inland Infra

4,075.7 1,226.8

3,192.4 1,524.2

Offshore Energy Towage & Salvage

3.8

5.4

5,306.3

4,722.0

Total

DREDGING & INLAND INFRA

Construction, maintenance and deepening of ports and waterways, land reclamation, coastal defense and riverbank protection, underwater rock fragmentation and the extraction of minerals using dredging techniques. Construction of roads and railroads, bridges, aqueducts, viaducts and tunnels including earthmoving, soil improvement and remediation – mainly in the Netherlands.

2020

2019

DREDGING & INLAND INFRA

(in EUR million) Revenue

1,315.7

1,517.7

177.3

EBITDA

241.6

2.6

Net result from JVs and associates

3.3

53.2

Operating result

107.6

4,075.7

Order book at year-end

3,192.4

EBITDA and operating result include our share in the net result of joint ventures and associates.

REVENUE Revenue from the Dredging & Inland Infra segment amounted to EUR 1,316 million (2019: EUR 1,518 million).

2020

2019

REVENUE BY REGION

(in EUR million) The Netherlands Rest of Europe Rest of the world

456.3 302.2 557.2

485.2 231.1 801.4

1,315.7

1,517.7

Total

The Netherlands Revenue in the Netherlands totaled EUR 456 million in 2020. The largest revenue contribution came from the projects Markermeerdijken, IJburg II (the construction of an artificial island in the IJmeer lake for the city of Amsterdam), the road projects N69 and N3 and miscellaneous riverbank and dike reinforcement projects. Rest of Europe Revenue in the rest of Europe amounted to EUR 302 million consisting of numerous mainly port-related capital and maintenance projects throughout the home markets (United Kingdom, Germany, Sweden and Finland). Furthermore, early works commenced on the Fehmarnbelt tunnel project thereby