Annual Report 2003 Rosmolenweg 20 Annual Report · PDF fileAnnual Report 2003 Rosmolenweg 20...
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An
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03
An
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03
Rosmolenweg 20
3356 LK Papendrecht
The Netherlands
P.O. Box 43
3350 AA Papendrecht
The Netherlands
Telephone +31 (0)78 69 69 000
Telefax +31 (0)78 69 69 555
E-mail [email protected]
Internet www.boskalis.com
We move the ea r th to a be t te r p l ace We move the ea r th to a be t te r p l ace
An
nu
al Rep
ort 2003
Ro
yal Bo
skalis Westm
inster n
v
Compiled and
coordinated by Royal
Boskalis Westminster nv
Design and realisation
Photography
Lithography and printing
Corporate Communications Department
Handelskade, Rotterdam
H.H.G. Been, A.D. van Gool, A. van Gutter, Van der Kloet Fotografie, G.W.L. Koejemans,
Klaas Laan, Norman Childs, R.A. Snoep and others
PlantijnCasparie Capelle a/d IJssel
Colophon
1 Roya l Boska l i s Wes tm ins te r nv
Annua l Repor t 2003
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2
‘Mak ing the d i f f e rence ’
Annua l Repo r t 2003
Boskalis offers its employees flexibility, clear-cut objectives, effective management and frequent
feedback. And provides them with the tools to do their jobs well. The people at Boskalis are deeply
committed to their work; they are entrepreneurial, solutions-orientated, and always ready to take on
an exciting challenge. These elements characterize the passion of Boskalis. The passion to want and
to be able to make the difference.
-00148_JV1_TekstENG 07-04-2004 09:26 Pagina 2
Table of contents
Tab le o f con ten ts
3 Roya l Boska l i s Wes tm ins te r nv
Company profile 6
Mission, objectives and strategy 9
Corporate social responsibility 12
Statement of General Business Principles of Royal Boskalis Westminster nv 14
Basic principles of the corporate strategy 18
Corporate Governance 24
Management 26
Key figures 30
Investor Relations 31
Message to shareholders 33
Report of the Board of Management on 2003 38
Report of the Supervisory Board 50
Financial statements 2003 56
Principles of financial reporting 56
Consolidated balance sheet before profit appropriation 60
Consolidated profit and loss account 61
Consolidated cash flow statement 62
Explanatory notes to the consolidated balance sheet and profit and loss account 63
Company balance sheet before profit appropriation 74
Company profit and loss account 75
Explanatory notes to the company balance sheet and profit and loss account 76
Other information 79
Provisions in the articles of association relating to profit appropriation 79
Proposed profit appropriation 80
Auditor’s report 80
Stichting Continuïteit KBW 81
Report 81
Declaration of Independence 81
Ten years Boskalis 82
‘Making the difference’ 4
Risk management makes the difference; safe dredging around active gas pipeline 10
New technology for installing pipelines safely and accurately 22
Developing the best equipment 28
Modified dredging method and innovative monitoring system protect the environment 36
From fragmentation to cohesion: ICT as lynchpin 48
Public-Private Initiatives lead to greater efficiency 54
Investing in people 84
Legal structure 83
The world of Boskalis 86
Organization 87
Offices around the world 89
Glossary 94
Equipment 99
Unless stated otherwise, all amounts in this report are in euros (€).
Some of the projects referred to in this report were carried out in joint venture or in a sub-contractor role.
This is a translation of the official Annual Report in the Dutch language.
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4 Annua l Repo r t 2003
The people at Boskalis are deeply committed to
their work; they are enterpreneurial, solutions-
orientated, and always ready to take on an exciting
challenge. The maxim ‘there’s no such thing as
can’t’ is put into practice with enthusiasm,
creativity, and a strong dose of perseverance.
At Boskalis, the focus is on practical solutions that
benefit the customer.
Boskalis gives its employees the flexibility they
need. Since they are the ones working on the
projects, often far from home and under difficult
conditions, they must be self-reliant and decisive
and have the ability to work as part of a team and
use high-tech equipment. Resourcefulness,
cooperation, and expertise are the core values of
the Boskalis culture. In addition, ingenuity runs in
our blood, as do a sense of responsibility, knowing
when to take action, and risk management.
What distinguishes a company for its customers, competitors, business partners, employees, work
environment, suppliers, and for its shareholders? First of all, it must have the will to stand out, and
this ambition has to be embedded in the personnel, culture, and objectives of the company.
‘Making the difference’
Risk management makes the difference;
safe dredging around active gas pipeline.
Developing the best equipment.
Public-Private Initiatives
lead to greater efficiency.
“At Boskalis, the focus is on
that benefit the customer.”
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Roya l Boska l i s Wes tm ins te r nv
Boskalis is a company of people willing to win in the broadest sense, considering
all the battles there are to be fought and won. These can range from winning a
contract to solving a technical problem or negotiating a solid legal position.
The competition is always on the alert, and the market is tough.
All of this is only possible with quality employees, quality resources, and quality
systems. And over the last several years, Boskalis has invested heavily in all of
these. Management-development programs, training initiatives and courses,
fleet renewal, state-of-the-art ICT systems – these are all tools that allow our
employees to do their jobs well.
Despite the strong growth of the company over the last fifteen years, our
structure has remained transparent, lines of communication direct and
responsibilities well defined. Boskalis offers its employees flexibility, clear-cut
objectives, effective management and frequent feedback.
These elements characterize the passion of Boskalis and our people:
we can and want to make the difference.
Modified dredging method and
innovative monitoring system
protect the environment.
From fragmentation to cohesion:
ICT as lynchpin.
Investing in people.
practical solutions
New technology for installing
pipelines safely and accurately.
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6
Company profile
Company p ro f i l e
Annua l Repo r t 2003
We move the earth to a better place. Boskalis, a leading international dredging company with a unique
market position.
Royal Boskalis Westminster nv is an international dredging company active in the area of maritime
infrastructure. Its core activities include the construction and maintenance of harbors and water-
ways, the creation of land in water, and coastal defense and riverbank protection. The company also
operates in numerous home markets in a wide range of related activities such as sand and gravel
production, soil improvement, dry earth movement, environmental activities, marine offshore services,
munitions clearance and tunnel building. Boskalis has a wide spread of operations worldwide. It has
a unique market position with ten home markets that together generate some 60% of turnover.
In addition, Boskalis has operations in over 50 countries on five continents.
The company has grown at an average annual rate of more than 10% in the past decade. This growth
was achieved both autonomously, and by takeovers and participating interests in other companies.
The company has a solid financial basis and a healthy cash flow.
Core activities
The global market for maritime infrastructure is driven by long-term economic factors such as increases
in the global population, the growth of the global economy and international trade volumes. The prospects
in the long term with respect to these factors are positive, despite the current global stagnation in economic
growth and the uncertainties in various countries. Its global spread and operational flexibility mean that
Boskalis can respond to changing opportunities in different markets. The world picture is currently
dominated by political and economic uncertainties. In the short term, this will have an effect on some
Boskalis markets.
Construction and maintenance of harbors and waterways. The growth in the volume of global trade has
increased the demand for container ports on international shipping routes. Not only are the ports
becoming larger and deeper as a result of the scaling up of container ships, the number of ports is also
increasing as more and more countries get involved in the global production and exchange of goods.
The established ports are competing with each other for regional leadership, as we can see in Asia
(Singapore, Hong Kong, Pusan), Western Europe (Rotterdam, Antwerp, Hamburg, Felixstowe) and
North America (New York, Halifax). Ports are also being built or scaled up in numerous industrially-
developing countries such as India, Malaysia, and Mexico. The increasing demand for larger and
deeper ports is accompanied by the need for keeping them at depth. This results in increases in
maintenance volumes, particularly in areas with strong currents or tidal variations.
Strong growth in container turnover (in million TEU).
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Company profile
7 Roya l Boska l i s Wes tm ins te r nv
Creation of land in water. The global population continues to increase and economic centers are
congested and overpopulated. Solutions for the increasing scarcity of available land are being sought
in the creation of new land. Boskalis plays a prominent role here. It uses innovative, large trailing suction
hopper dredgers to generate a favorable ratio of cost price to market price per square meter of new land.
Coastal defense and riverbank protection. Here also, Boskalis expects continuing market growth given
the intensification in the global focus on environmental protection. The market will also benefit from the
ongoing growth of tourism.
Related activities
In addition to these core activities, Boskalis is involved in a range of related activities (the ‘dredging-
plus’ activities) such as offshore services, gravel and sand trading, soil improvement, dry earth moving,
environmental activities, munitions clearance, underwater rock fragmentation, pipeline construction
and hydraulic engineering. These activities are an extension of the range of services, and the margins
are generally attractive.
Markets
The global dredging market consists of numerous submarkets with individual development patterns.
This means that the market as a whole is heterogeneous, with varied patterns of market dynamics. The
annual volume of sales on the global dredging market is approximately € 7 billion. Half of these sales
(approximately € 3.5 billion) are made to reasonably open markets. Four large Western European
dredging companies account for approximately 60% of operations in these open markets, with roughly
40% of the ‘free sales’ going to large numbers of smaller regional and local players. With a share of
approximately 20%, Boskalis is the market leader in the open market segment. In less open markets,
dredging work is generally done by local players or state companies and there are no openings for
private international dredging companies like Boskalis.
The last decade saw extensive deregulation of global trade and economic development in traditionally
closed markets. As a result, the free market has expanded in favor of professional dredging companies,
which can provide economies of scale and competitive cost levels.
Major factors in terms of access to the global dredging market are scale, professional staff, technical
know-how, a flexible fleet, cost leadership and financial strength.
The trailing suction hopper
dredger Coastway in the
morning mist in Estonia.
The Coastway is at work
here on the Muuga Coal
Terminal Project, where
Boskalis is reclaiming a
harbor area and dredging
out an entrance channel
and harbor basin.
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The cutter suction dredger Edax
at work in Point Fortin, Trinidad.
In addition to land reclamation,
the contract also includes
dredging out the harbor,
widening the entrance channel
and bank protection. The project
will continue until late 2004.
8
Company profile
Annua l Repo r t 2003
However, the broad geographical spread means that a global player such as Boskalis can achieve
balanced growth. The main Boskalis clients are governments (national, regional and local), harbor
operators, international project developers, oil companies, mining companies and other contractors.
Boskalis offers its customers high-quality products and services at competitive prices.
Home markets. For many years now, Boskalis has had a home market strategy which distinguishes it
from its competitors. A home market means that Boskalis has a permanent presence in countries
where this presents commercial advantages. The strengths of the concept are the stable flow of projects
and the opportunities to extend the range of activities.
The home market organizations have local marketing profiles, as well as their own fleets and infra-
structures. They also know that they have the support of the financial and technical resources of the
global Boskalis organization. Particularly in the home markets, there are opportunities to generate
additional margins with associated activities. Boskalis now has ten home markets in Europe and else-
where which together account for approximately 60% of group turnover: The Netherlands, the United
Kingdom, Germany, Finland, Sweden, the Iberian Peninsula, Italy, Nigeria, the United States and Mexico.
In some home markets, Boskalis collaborates with strong local partners. The home markets constitute
a stable and healthy basis for the group.
International projects market. Approximately 35% of turnover is generated in the international projects
market, which focuses primarily on dredging and on coastal and riverbank projects. These are generally
larger works involving investments in construction activities and/or extensions. In addition, there are
projects which regularly involve cooperation with third parties. This makes it possible to provide clients
with optimal services and to share risks.
Specialist niche markets. Approximately 5% of turnover comes from specialist niche markets like the
offshore market and the market for underwater rock fragmentation.
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Mission, objectives and strategy
Miss ion , ob jec t i ves and s t ra tegy
9 Roya l Boska l i s Wes tm ins te r nv
Transparent, consistent and result-driven
Mission
Boskalis is always aiming to maintain and strengthen its leading position in the global dredging market.
The company is committed to giving its shareholders excellent profitability and value creation.
Boskalis wants to be an attractive employer, the customer’s first choice and a responsible citizen in
those countries where it operates.
Boskalis aims for an optimal balance in its services between functionality and the effects on people
and the environment.
Objectives
For the next one to two years the key objectives will be to maintain the market position and strong
cash flow generation. The central objectives for the longer run are solid growth (both in the core
activities and through broadening of activities) and the realization of above-average profitability*).
Strategy
The core Boskalis activity is dredging. The company also engages in related - ‘dredging-plus’ -
activities, particularly in the home markets. These activities fit in with the core activities and core
competences of the company.
The corporate strategy consists of growth in the core activities and in the ‘dredging-plus’ activities,
both autonomously and by means of acquisitions.
Strategy for the core activity of dredging
• maintain and, where possible, increase market share;
• broaden and extend home market positions;
• improve the competitive position, for example through investments in cost leadership.
Strategy for the ‘dredging-plus’ activities
Active portfolio management in both home markets and specialist niche activities, for example by:
• extending and expanding activities that contribute to the achievement of the growth target;
• making the most of home market positions in the core activity for the extension of ‘dredging-plus’
activities.
In most markets where Boskalis is active, there will be even more emphasis in the future on the
competitive position. The lead given by its competitive position therefore plays a major role in the
Boskalis strategy. The key to this position is continued innovative investment in:
• staff quality, primarily in the form of training and competence management;
• fleet innovations and fleet rationalization;
• processing technology;
• improvements in business processes;
• the development and optimization of modern ICT systems.
*) We consider profitability to be above average if the annual return on capital employed exceeds the cost
of capital (WACC) relevant for Boskalis.
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10 Annua l Repo r t 2003
Dredging near a gas pipeline containing natural gas
at high pressure is an extremely risky undertaking.
Knowing exactly where you are is a matter of life and
death; one false move can mean disaster. Boskalis
has developed software that prevents the grab from
rupturing the gas line.
“Because of erosion, the Eemszinker gas line in the
north of The Netherlands was continually exposed.
The long-term solution was to dig the pipeline further
into the seabed. After a year and a half of research,
the project has been implemented successfully”, says
Dieuwertje Klazinga, project engineer at Hydronamic.
“When an invitation to tender like that comes in, you sit
down with your project team and brainstorm about
possible solutions based on the experience you’ve
gained on other projects. But these are set off against
the conditions stipulated by the customer — the unin-
terrupted flow of natural gas and the ability to monitor
the procedure — and the natural conditions in the area.
This unique combination of factors makes it impossible
to adopt a particular procedure without adapting it.
An innovative approach is the only way to provide a
customized solution that a complex job of this kind
requires.”
“Additional soil investigation and in-depth safety
analyses led us to the conclusion that suspending the
pipeline in slings and dredging underneath it was the
best approach”, says project manager Frank Stikkel.
“This project involves enormous safety risks, which you
have to be able to manage. We succeeded by building
in as many controls as possible. We developed a colli-
sion-avoidance system — software that takes over if
the operator gets too close to the gas line with his
equipment. This system has increased productivity
dramatically. Operators now know that an extra check
is in place and, for that reason, are no longer afraid of
getting close to the gas line with the grab. Other adjust-
ments to the equipment were made to ensure that the
work would be done as efficiently as possible and to
minimize human error. This type of innovation increases
employees’ confidence in their own ability.”
Left Frank Stikkel, project manager
and right Dieuwertje Klazinga,
project engineer Hydronamic.
Risk management makes the difference;
safe dredging around active gas pipeline
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Roya l Boska l i s Wes tm ins te r nv
The backhoe Rocky has been
fitted with the collision-avoid-
ance system making it possible
to dredge down to depths of
22 meters alongside and under a
steel gas pipeline at a pressure
of approximately 60 bars, even
when there are fast currents.
“We have reduced the enormous risks involved
in this project to a manageable level.”
View of the work from
the backhoe Rocky. In the
foreground, the screens
of the collision-avoidance
system.
One of the screens of
the collision-avoidance
system.
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12
Corporate social responsibility
Corpora te soc ia l respons ib i l i t y
Annua l Repo r t 2003
Boskalis has a clear view of its role in society and its responsibilities towards the global community.
Code of conduct
Boskalis has a Statement of General Business Principles that applies to all the relationships it maintains
throughout the world. This document is the guide for the company in the area of social responsibility
and is freely available from the company website. The basic idea behind corporate social responsibility
is that Boskalis is a decent company where respect for people and the community is an accepted
value. Boskalis accepts responsibility for matters that it can influence. However, the world is large and
Boskalis is only one of many actors. Boskalis respects local rules and customs: ‘so many countries,
so many customs’. How those rules and customs evolve is a matter for governments and peoples
and Boskalis plays only a very minor role in that respect.
The responsibility of Boskalis
Boskalis has its own standards for its organization.
Boskalis has a direct responsibility for, among other things, its own workforce, suppliers and sub-
contractors, safety and the environment.
Boskalis acts like a responsible member of society: decently and properly. That means complying with
local legislation, being a good employer for the workforce and working on enduring relationships with
suppliers and sub-contractors.
Boskalis does its utmost to meet quality, safety and environmental standards covering dredging and
other company activities. Initially, these standards are set by clients (often governments) but Boskalis
also brings its professional know-how and commitment to their implementation. Boskalis also assumes
responsibility for the proper disposal of the work spoils, such as waste and contaminated material.
Boskalis in the world
National laws and rules apply in countries where Boskalis works. The company does not make cultural
judgements. Boskalis conducts itself like a responsible member of society or a good guest. National
laws and rules are the guidelines for Boskalis activities, in combination with Dutch norms that cover
international dealings.
Boskalis does not get involved in national politics, nor does it state opinions about political issues.
These are the responsibility of national government. Boskalis also follows the guidelines of the United
Nations, WHO and the Dutch government for travel to, or business dealings with, certain countries.
Contribution to sustainable development
The nature of the services supplied by Boskalis means that the company is closely involved in sustain-
able developments in society. Maritime infrastructure is for many countries a precondition for structural
economic development and increasing prosperity. Because Boskalis works on the basic infrastructure,
the company is involved directly and positively in the social benefits of its services.
Sometimes, economic interests can clash with other community interests. It is the responsibility of
local governments to make the appropriate choices. It is up to Boskalis to work as professionally as
possible within the resulting framework.
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Corporate social responsibility
13 Roya l Boska l i s Wes tm ins te r nv
An important aspect of dredging is the impact it has on the ecology. Boskalis has the expertise to
advise clients how to measure environmental impact and keep it to a minimum. Furthermore, Boskalis
always makes its own assessment to determine the best working method for the environment. The
company develops its own systems for precise monitoring of the dredging work. In that way, clients
understand the environmental impact of the work; working methods can also be adapted if there is a
possibility of tolerances being exceeded.
Environmental monitoring in
Chile, near Mejillones, where
Boskalis International and
Dragamex worked together on
the dredging work for a new
harbor. Very strict environmental
requirements applied to the work.
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14
Statement of General Business Principles
Annua l Repo r t 200314
Statement of General Business Pr inciples of Royal Boskal is Westminster nv
1. Mission
Royal Boskalis Westminster nv (‘Boskalis’) is an international dredging company with worldwide opera-
tions. Its core activities are the creation, construction and maintenance of harbours and waterways,
land reclamation, coastal defence and shore protection. In addition, the company operates in various
home markets in a wide range of related activities such as sand and gravel production, dry earth
movement, environmental clean-up, marine aggregate dredging, marine offshore services, munition
clearance and tunnel building.
Boskalis is focused on continuity and retaining its leading position in the world market for dredging
services. The company is committed to excellent profitability and value creation for its shareholders.
Boskalis wants to be an attractive employer, the customer’s first choice and a responsible citizen in
those countries in which it operates. Boskalis adheres to internationally agreed conventions insofar
as these supersede applicable legislation and regulations in the countries of operation.
In addition, Boskalis operates this company code for all relationships that it maintains everywhere in
the world.
Boskalis distinguishes the following principal area’s of conduct to:
• society;
• the environment;
• employees;
• quality;
• clients;
• capital providers;
• suppliers.
2. Obligations to society
Society provides Boskalis with the social and physical infrastructure to be entrepreneurial.
Boskalis therefore will:
• not do business in countries subject to international and relevant national embargoes;
• respect human rights;
• not undertake commercial activities in countries where it is made impossible, in our own activities,
to adhere to this code;
• strive for fair competition by respecting tangible and intellectual property rights of competitors and
respecting the relevant competition laws.
3. Obligations to the environment
Boskalis often operates in environmentally sensitive areas. Boskalis therefore adheres to:
• complying with the applicable statutory environmental provisions and regulations and, where
possible, going further than required;
• focusing policy on the permanent prevention or limitation, as far as possible, of pollution of soil,
water and air, noise creation, creation of waste products and use of dangerous materials;
• collecting and having waste processed separately, and using water and energy efficiently;
• translating policy into clear practical guidelines and, furthermore, ensuring that the policy and the
guidelines are implemented in practice;
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Statement of General Business Principles
15 Roya l Boska l i s Wes tm ins te r nv
• permanently ensuring that the environmental awareness and motivation of the employees and others
who work on the premises of Boskalis is such that environmental protection – although primarily the
management’s responsibility – is everybody’s concern.
4. Responsibilities towards employees
Employees make a considerable portion of their time, knowledge and expertise available to Boskalis,
all over the world. Boskalis therefore has the responsibility for:
• adhering to applicable national and international employment standards;
• creating a climate of motivation, work-pleasure and satisfaction;
• pursuing a personnel policy in which the best possible use is made of each person’s skills and where
personal development is encouraged;
• offering good and competitive terms of employment and safe and healthy working conditions;
• preventing undesirable conduct such as discrimination, intimidation and abuse of authority;
• communicating in an honest and clear manner;
• being open to suggestions, ideas and criticism;
• preventing, as far as possible, problems of conscience in the performance of their work and striving
to find a proper solution to them where these arise;
• creating a climate in which employees are encouraged to embody this code.
5. Focus on quality assurance
Boskalis must conduct its business at the highest level of quality. Boskalis therefore focuses on:
• ensuring, where applicable, the implementation and compliance with the safety rules and codes and
ISO 9001 and ISO 9002 codes;
• upholding a Quality Assurance programme;
• employing qualified personnel;
• ensuring that the Central Plant Department complies with the International Safety Management
Code;
• building state of the art equipment;
• maintaining an up to date Research and Development programme;
• employing efficient Integrated Information and Communication Technology.
6. Conduct towards clients
Clients rely on Boskalis for the realisation of their expectations. Boskalis therefore adheres to:
• supplying high quality services;
• performing our contracts to the highest standards;
• providing a competitive market price;
• meeting agreed deadlines;
• showing respect for the wishes, interests and ethical standards of clients, in all aspects
of the business;
• supporting clients by the development and design of projects;
• informing clients properly and in good time.
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16
Statement of General Business Principles
Annua l Repo r t 200316
7. Commitment to capital providers
Capital providers enable Boskalis to finance its activities. Boskalis is therefore committed to:
• ensuring the continuity of the company;
• achieving, also in the long term, a competitive return on the capital employed, which is in fair
proportion to the degree of risks in the line of business;
• the timely provision of relevant information;
• taking all necessary measures to prevent insider trading.
8. Conduct towards suppliers
Suppliers provide Boskalis with the products and services that Boskalis subsequently uses.
Boskalis therefore adheres to:
• selecting suppliers on the basis of generally accepted market considerations;
• paying competitive market prices and making reasonable demands;
• striving for long-term stability in the relationship, in exchange for value, quality, competition
and reliability;
• paying suppliers on time, according to agreements made;
• being open and reliable in all our activities;
• not accepting any invitations or favours that could affect the integrity of the business relationship.
9. Dilemmas
Because of the highly demanding and complex environment in which Boskalis conducts business, the
above mentioned rules can at times conflict with each other. This may create dilemmas, which shall be
resolved within the applicable legal and generally accepted Business Principles.
10. Accountability
Everybody who is addressing Boskalis, on the basis of actual involvement for and understanding of
the activities and position of Boskalis, about observing the above-mentioned principles can expect
an open attitude.
Furthermore, where appropriate, Boskalis is accountable for observation of this code. We take all
sincere requests, suggestions and complaints seriously.
This Statement of General Business Principles shall every 2 years be evaluated by Boskalis.
-00148_JV1_TekstENG 07-04-2004 09:28 Pagina 16
In 2003, Boskalis was at work
in the Ketelmeer lake in
The Netherlands, where it
completed the construction of
a number of islands for nature
development.
17 Roya l Boska l i s Wes tm ins te r nv
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18
Basic principles of the corporate strategy
Annua l Repo r t 20031818
Bas ic p r inc ip les o f the corpora te s t ra tegy
The key success factors for a leading international service company in the area of maritime
infrastructure are:
• enterprise and risk management;
• transparency in corporate governance;
• employee efficiency;
• professional expertise and skills;
• a large and versatile fleet;
• efficient organizational and communications structures.
Enterprise and risk management
Enterprise means dealing every day with uncertainties, opportunities and risks. International enterprise
is highly developed at Boskalis and is encouraged by the top of the company on the basis of freedom
and discipline. Extensive decentralization for marketing operations and work contracting is linked to
regular feedback, coordination and reporting. As an international dredging company, Boskalis has to
deal with risks on a day-to-day basis. There are three kinds of risks:
Economic and market risks. The Boskalis markets are heterogeneous and often develop in different ways.
Boskalis is well placed to respond to both positive and negative developments in individual market
segments because of its global spread of activities, its broad-based, versatile and internationally-based
fleet and its occupation of strong positions in the home markets. The dredging industry also focuses
to a major degree on the maintenance and development of infrastructure. This means that long-term
economic developments are more important than short-term economic fluctuations.
The dredging industry is a capital-intensive industry with high entry and exit barriers. Price competition
for large projects is often fierce. Cost leadership is a key success factor. It receives a great deal of
emphasis in terms of both investment strategy and as a critical component of operational management.
In Dubai, Boskalis collaborated
with its partner Archirodon on
the crescent, the protective dike
around the ‘Palm Island I’
project. The project included
the construction of an additional
coastline of 120 kilometers in
the form of a palm tree. Eighty
luxury hotels, 2,000 villas, ports,
water parks, restaurants,
shopping malls and cinemas will
be built on this island.
-00148_JV1_TekstENG 07-04-2004 09:28 Pagina 18
19 Roya l Boska l i s Wes tm ins te r nv19
Operational risks. Various risks must be taken into account when calculating costs and carrying out
projects. These range from unexpected soil conditions and variable weather conditions to the technical
suitability of equipment. Boskalis seeks to control risks by means of thorough project preparation and
activities such as soil research, maintenance of easily-accessible databases with information about
past experience and the use of detailed risk analysis techniques. In addition, a lot of work goes into
staff training, a certified Quality Assurance program and equipment maintenance. Risks are also
insured where possible. The key to Boskalis’ professionalism and skills lies in its ability to prepare for
these risks effectively and responsibly.
Financial risks. Boskalis has a strict acceptance and hedging policy for political and payment risks.
Payment risks are hedged by means of bank guarantees, insurance, etc., except in the case of credit-
worthy, first-class debtors. A large proportion of projects are contracted in foreign currency. Generally,
positions in foreign currency are fully hedged, usually with forward contracts.
The development of the US dollar rate to the euro is particularly relevant. Firstly, a large proportion of
the contracts is dollar related. Secondly, the key associated companies (Archirodon, Bean Stuyvesant
and Lamnalco) are fully dollar denominated. These associated companies are long-term investments.
Therefore, their transaction risks are not hedged, under the assumption that currency fluctuations even
out in the longer run. Real committed cash flows between Boskalis and its associated companies are
hedged. On balance, the currency risk for Boskalis is limited.
In addition, contract prices can be affected in dollar-related markets and this may affect margins.
Financial derivatives (forward contracts, options, swaps, etc.) are not used unless there is an
underlying real transaction.
As is usual in the contracting industry, Boskalis also has large amounts outstanding in the form of bank
guarantees, usually in favor of customers. Adequate credit, and particularly bank guarantee facilities,
are essential for the uninterrupted conduct of business so the Boskalis financing policy is conservative.
At the end of 2003, the company had extensive and largely unused credit and bank guarantee facilities
at its disposal.
Transparency in corporate governance
Boskalis considers clarity and openness in supervision and accountability to be the cornerstones of good
management and business practice. So the company has a sound corporate governance system. As this
annual report shows, the objectives are clearly defined and the company has a clear strategy.
Future prospects and associated risks have been identified as thoroughly as possible. Boskalis is aware
of the interests of all the company stakeholders. A great deal of attention is paid to investor relations and
dealings with shareholders.
Boskalis has a Statement of General Business Principles, which sets out the duties and responsibilities
with respect to society at large, the environment and all Boskalis stakeholders. This Statement can be
found on pages 14, 15 and 16 of this annual report.
Given developments and discussions in society as a whole with respect to proper company management,
as well as the publication of the Dutch Corporate Governance Code of the Tabaksblat Commission, this
annual report includes a separate chapter on this subject on pages 24 and 25.
Basic principles of the corporate strategy
-00148_JV1_TekstENG 07-04-2004 09:28 Pagina 19
20
Basic principles of the corporate strategy
Annua l Repo r t 20032020
Employee efficiency
At Boskalis, the workforce is central. They are the critical success factor of the company. They are the
people who, in day-to-day operations, deal with changing circumstances and challenging operational
situations. The company works globally with high-grade technical production resources, dealing with a
very wide range of physical and cultural conditions.
There are many other nationalities involved alongside the Dutch, both onshore and offshore. It is vitally
important in a complex environment of this kind for people to collaborate and develop.
Boskalis aims to provide an attractive working environment in which employees can make the most of
their abilities. To this end the company has an active human resources policy in which the personal
development of employees takes priority. The policy is based on the continuous matching of the
requirements of the company and the quality of the workforce. This takes the shape of a coordinated
program for Human Resources Development consisting of long-range forecasts, planning, development,
training and rewards. An important HR tool in this context is the competence management program,
which focuses specifically on the systematic development of employees on the basis of their talents
and competences.
Professional expertise and skills
Research and development. Unremitting efforts to develop new techniques and extend our under-
standing are of major strategic importance. The Research & Development department (R&D) at Boskalis
has an experienced workforce, simulation and computer models and laboratory facilities. The R&D staff
are regularly to be found at projects and on board ships both in the Netherlands and abroad. A steering
group, that includes representatives from the Board of Management, the operational units and the
technical staff departments, determines priorities and appraises the longer-term plans for R&D.
Engineering capacity. More and more large infrastructure works are being tendered as Design &
Construct projects. Here, the engineering capacity of Boskalis and its own engineering consultancy,
Hydronamic, are of major importance. The working methods and possibilities afforded by available
equipment are taken into account at the design stage. As a result, solutions can be proposed that are
efficient in terms of costs and construction time. Boskalis’ engineering capacity is also deployed during
the implementation stage.
A large and versatile fleet
Boskalis has a large and versatile fleet. It includes every variety of dredging equipment so that the
right tool can be used at all times. Innovations in the fleet and modifications to existing units keep the
fleet in line with modern requirements. Fleet automation is a highly-developed area, and this means that
productivity during dredging work is high. Meticulous maintenance work is carried out on the fleet and
auxiliary equipment, with modernization and improvements where necessary.
With the exception of the basic equipment in the home markets, all Boskalis equipment is managed
centrally by the Central Technical Department in Papendrecht. The Central Technical Department makes
its units available for operating companies in The Netherlands and abroad. A lot of attention is paid to
the quality of the services provided by the department. The organization is ISM-certified. A Plant
Management System creates the conditions for the optimal deployment and structured management of
the ships. In fleet management, an important element is the safety of the ships and the crews.
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Basic principles of the corporate strategy
21 Roya l Boska l i s Wes tm ins te r nv21
Efficient organization and communications
Health, safety and the environment. Boskalis’ policy is to provide the entire workforce with healthy,
safe and environmentally-friendly working conditions. The prevention of hazardous and/or unhealthy
working conditions applies to all workers, including those from subcontractors and suppliers.
This principle is expressed in the Boskalis slogan: ‘Safety matters’.
In order to raise safety awareness and increase the understanding of safety risks, Boskalis organizes
training courses and information meetings, both at offices and on works. In addition, safety audits
are carried out as the first step towards reducing risks. Concern for environmental protection is a
component of quality control, and of day-to-day thinking and working at Boskalis. The company is
continuously looking at dredging processes in order to make them more environmentally-friendly.
It develops techniques for reducing environmental loads during dredging work.
These activities result in a structural, systematic and transparent approach in the area of safety, health
and the environment. Healthy, safe and environmentally-acceptable working methods require cooperation
and communications, not only within the company but also with third parties, partners and service
providers.
Quality assurance. One of the basic principles of quality assurance at Boskalis is the wish to meet
customer requirements efficiently and as planned. Another involves the continued professionalization
of the internal organization. A lot of work goes into continuous improvements in the quality of the
preparation, execution and evaluation of the projects. The same applies to the availability of equip-
ment, as well as staff planning and supervision: they are all critical success factors. The quality
systems in place are structured around the Boskalis core business: contracting and executing
dredging and dredging-related work. These systems are certified in accordance with ISO-9001.
Information and communications technology. Boskalis sees information and communications technology
as an instrument for improving efficiency and management information. But ICT is also a way to make
work easier and, above all, to operate more effectively in the market. Boskalis has an integrated ICT sys-
tem which covers the entire business process worldwide, at all levels of the organization; from projects,
through country organizations, to the head office in Papendrecht. The use of modern standardized soft-
ware, hardware and communications technology is vital here.
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22 Annua l Repo r t 2003
On the seabed off Singapore, Boskalis and Archirodon
are using an innovative approach to lay outlet pipes
from a wastewater treatment plant.
“The total length of the pipes - eleven kilometers - and
the depth at which they had to be positioned - down to
50 meters - meant that it would have been inefficient and
risky to work with divers here”, explains Ab van Gool, the
desk coordinator for the project. “So we went looking for
an alternative approach that would be cost-effective for
the client. It took the project team a month to establish
the broad outlines. To be able to innovate, you must have
a team in which every member makes a contribution.
Bringing together knowledge and experience in this way
led to the development of a high-grade, automated idea:
a pontoon carrying a specially designed portal crane.
Beneath the crane, there is a framework specially built
for this project that lowers the pipes in a controlled way.
And the system includes a high-tech measurement and
control system that makes it possible to link up the pipes
very precisely from the control room.”
The measuring equipment and the control system are
the brainchild of Jürgen König, manager Electronics &
Instrumentation. “The complexity of this job was in part
the result of the customer’s strict requirements for the
positioning of the pipes. To meet them, we developed an
advanced measuring system. We purchased a number
of software components and then linked them up but we
also had components made to our specifications. This
allowed us to achieve the level of control needed and we
can now position the pipes with a degree of precision we
couldn’t before. We are using new technology to extend
the boundaries of what is possible.”
Left Ab van Gool, desk coordinator
and right Jürgen König, manager
Electronics and Instrumentation.
New technology for installing pipelines
safely and accurately
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Roya l Boska l i s Wes tm ins te r nv
The pipe installation pontoon
Arta leaving the production site
in Singapore. This pontoon can
install wastewater pipes over a
distance of eleven kilometers
and at depths up to 55 meters
without using divers.
“We are using new technology to extend
the boundaries of what is possible.”
Artist’s impression of
the pipe installation
pontoon Arta.
Trailing suction hopper
dredger Cornelia dredging
the trenches for the waste-
water pipes.
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24
Corporate Governance
Corpora te Gover nance
Annua l Repo r t 2003
Dutch Corporate Governance Code in place from 1 January 2004 onwards
The Dutch Corporate Governance Code drafted by the Tabaksblat Commission (the ‘Code’) came into
effect as at the beginning of the financial year starting on 1 January 2004.
The Code applies to Dutch listed companies and includes a system of norms for proper and respon-
sible management, and for the proper supervision of that management, including accountability for
the supervisory activities.
The basic principle underlying the Code is that a company is a long-term collaboration between various
parties involved with that company.
The stakeholders are the groups and individuals who have a direct or indirect effect on the achievement
of the corporate objectives or who are affected by them, such as employees, shareholders and other
financiers, suppliers and customers. Equally, stakeholders may include the government or community
organizations.
The Board of Management and the Supervisory Board of the company have full responsibility for taking
these interests into consideration, generally with the emphasis on the continuity of the company and
the creation of shareholder value in the long term.
The norms consist of about twenty principles and a large number of associated best-practice provisions.
As a whole, the principles can be thought of as modern, general views about good Corporate
Governance that now enjoy broad support.
Listed companies are expected to describe the broad outlines of their Corporate Governance structure
for the first time in their annual report on the 2004 financial year, together with an indication of the
extent to which they deviate from the norms of the Code (i.e. ‘comply or explain’).
The Boskalis approach to implementation and compliance
Boskalis agrees that a sound and transparent system of checks and balances is an important instrument
in terms of establishing confidence in companies operating on the capital market.
The safeguards for proper corporate governance at Boskalis consist primarily of the open corporate
culture characterized by enterprise, technical professionalism and normal civil behavior.
In 1998, the Board discussed this issue extensively with shareholders against the background of
the report ‘Corporate Governance in The Netherlands: the Forty Recommendations of the Peters
Commission’.
In addition, on 29 May 2001, Boskalis already said farewell to the system of depositary receipts for
shares, a system that is not generally thought to benefit shareholders.
Many of the best-practice provisions in the Code are in line with the principles and codes of conduct
that are already in place at a focused dredging contractor such as Boskalis. A small number of best-
practice provisions are less applicable to Boskalis.
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Corporate Governance
25 Roya l Boska l i s Wes tm ins te r nv
All things considered, Boskalis finds that the company already fulfils the requirements of the Code in
many respects. Where adjustments are required, they will be addressed during the course of 2004.
Examples are the appointment of committees to assist the Supervisory Board and the amendment and
elaboration of procedures. A detailed review will also be conducted to determine whether amendments
are required to the Articles of Association of the company in order to make compliance with the Code
possible.
This is also necessary given the introduction of the Act on the Alteration of the Regime for Dual-Board
Entities that has now been adopted by the Lower House and that is expected to come into effect in
late 2004.
Boskalis expects to be in a position to implement most of the best-practice provisions. Where the
company deviates from these provisions, it will give reasons for doing so.
Any departures will mainly be linked to the specific nature and character of Boskalis as a specialist
dredging contractor with global operations using high-grade technology, specific expertise and
experience, and very capital-intensive equipment.
Sometimes, transitional arrangements will be required but, in general, major problems are not anticipated
with the implementation of the Code in our company.
The approach described above to the implementation of, and compliance with, the Code will be
discussed at the Annual General Meeting of Shareholders on 17 May 2004.
In the annual report for the 2004 financial year, the Board will explain the broad outlines of the
Corporate Governance structure of Boskalis and explain any deviations from the best-practice
provisions of the Code. The Annual General Meeting of Shareholders in 2005 will then be able to
state its opinion of the Corporate Governance policy adopted by the company.
-00148_JV1_TekstENG 07-04-2004 09:29 Pagina 25
26 Annua l Repo r t 20032626
Management
Management
Supervisory BoardS.D. de Bree, chairman (1937)• former chairman of the Board of Management of DSM N.V.• chairman of the Supervisory Board of Stork N.V.• chairman of the Supervisory Board of Norske Skog Parenco B.V.• member of the Supervisory Board of ‘Fondation Maison de la Chimie’, Paris• member of the Supervisory Board of Siemens Nederland N.V.• director of Entergy Corp, New Orleans, USA• first appointment: 1998, current term: 2002-2006
M.W. Dekker (1938)• former general director of NPM Capital N.V.• chairman of the Supervisory Board of Algemeen Trust Kantoor N.V., Amsterdam• member of the Supervisory Board of Arklow Shipping Ltd, Ireland• member of the Supervisory Board of Solvus N.V., Antwerp • chairman of the Supervisory Board of Dutch Flower Group B.V.• member of the Supervisory Board of FinAce B.V.• member of the Supervisory Board of Fugro N.V.• member of the Supervisory Board of IHC Holland N.V.• member of the Supervisory Board of JSI N.V.• member of the Supervisory Board of F. van Lanschot Bankiers N.V.• member of the Supervisory Board of Van Wijnen Holding N.V.• member of the Supervisory Board of Belron SA• first appointment: 1989, current term: 2001-2005
M. van der Vorm (1958)• chairman of the Board of Management of HAL Holding N.V.• member of the Supervisory Board of Anthony Veder Group N.V.• member of the Supervisory Board of Koninklijke Vopak N.V.• member of the Supervisory Board of Univar N.V.• first appointment: 1993, current term: 2003-2007
A.A. Westerlaken (1955)• chairman of the Board of Management of ’s Heeren Loo Zorggroep• member of the Supervisory Board of the Free University of Amsterdam (VU) and the Medical Center
of the Free University of Amsterdam• member of the Supervisory Board of the Netherlands Institute for Care and Welfare (NIZW)• member of the Supervisory Board of Coöperatieve Bloemenveiling FloraHolland U.A.• first appointment: 1999, current term: 2003-2007
J. Aalberts (1939)• chairman of the Board of Management of Aalberts Industries N.V.• member of the Supervisory Board of Stork N.V.• member of the Supervisory Board of Van der Moolen Holding N.V.• first appointment: 2001, current term: 2001-2005
All members of the Supervisory Board are Dutch. They do not hold shares in Royal Boskalis Westminster nv or associated option rights.
9513023_JV1_TekstENG 15-04-2004 14:24 Pagina 26 macuser Jaarverslagen:B:BOSKALIS:9513023%0:JV1_ENG/NED:
27 Roya l Boska l i s Wes tm ins te r nv27
Management
From left to right:
A.H.A. Hoevenaars,
Dr. P.A.M. Berdowski,
R. van Gelder BA,
K.G. van Nes.
Board of Management R. van Gelder BA, chairman (1945)• member of the Board of Management since 1985• chairman of the Board of Management since 1993• member of the Supervisory Board of HES Beheer N.V.• member of the Supervisory Board of Brunel International N.V.• member of the Supervisory Board of Rodamco Asia N.V.• chairman of the International Association of Dredging Contractors• member of the Advisory Board of ABN AMRO Bank N.V.• member of the Board of Management of Nederland Maritiem Land
Dr. P.A.M. Berdowski, vice-chairman (1957)• member of the Board of Management since 1997• vice-chairman of the Board of Management since 2001• chairman of the Supervisory Board of Amega Holding B.V.• member of the Supervisory Board of Scope Publishing B.V.• former Managing Partner of Krekel Van der Woerd Wouterse
K.G. van Nes (1944)• member of the Board of Management since 2000• former managing director of Boskalis bv in Rotterdam• a range of previous management positions with CB, CSB, NVWB and CUR
A.H.A. Hoevenaars (1949)• member of the Board of Management since 2003• member of the Supervisory Board of Schouwburg Orpheus• member of the Supervisory Board of Nijenrode University• member of the Supervisory Board of Atlant Zorggroep• chairman of the Board of Het Gelders Orkest• member of the Supervisory Board of Escador
All members of the Board of Management are Dutch.One member of the Board of Management has shares in Royal Boskalis Westminster nv. This is discussed in further detail in the explanatory notes to the company balance sheet and profit and loss account.
SecretaryM.J. Kielstra (1972)
The above information is valid as at 9 March 2004.
9513023_JV1_TekstENG 15-04-2004 14:25 Pagina 27 macuser Jaarverslagen:B:BOSKALIS:9513023%0:JV1_ENG/NED:
28 Annua l Repo r t 2003
At Boskalis, we don’t just order a ship ‘off the shelf’.
Using our employees’ expertise and experience, we
have ships designed and built that are cost leaders
in their class – ships that make the difference.
“Traditionally, Boskalis has had both a strong Construction
Department and a strong Research & Development
Department”, says Hendrik Postma, manager of the
Dredging Department. “These departments combine
shipbuilding and dredging know-how. But to be a cost
leader, you have to be familiar with the economic per-
formance of the ships – the costs per cubic meter of
dredged material. This input is provided by the Dredging
Department. Since we encourage our engineers to look
beyond their field of expertise, innovations result.
Combining the best technical and economic options is
one of our strengths.
“Cost leadership is essentially determined by various
factors. For the mega and jumbo trailing hopper suction
dredgers, which are used primarily in large land reclama-
tion projects, these mainly involve hopper capacity,
sailing distance, and dredging depth. Increasingly, sand
winning is done at remote locations; in these cases,
a large hopper capacity is the most economic solution.
We capitalized on that with the lengthening of the
W.D. Fairway. After an increase in the hopper volume
of 12,000 m3, this vessel is once again at the forefront
in this particular market segment.”
“For the medium-sized trailing hopper suction dredgers,
the optimum length-to-width ratio is the key to cost
leadership”, says Jan Eygenraam, manager of the
Research & Development Department. “In the 1970s, a
16- or 18-meter-wide ship was thought of as big. The
Barent Zanen and the Cornelis Zanen, which we built in
the early 80s, were the first dredgers that measured 23 m
wide. They will be replaced by the Prins der Nederlanden
and her sister ship the Oranje, both 28 m wide. With these
new ships, which once again are first in their class,
Boskalis has met market demand.
“We focus extensively on developing equipment that will
allow us to do our jobs as effectively and as cost-efficient-
ly as possible. By thinking creatively and capitalizing on
our expertise, we stay one step ahead of the competition.”
Left Jan Eygenraam, manager
Research & Development Department
and right Hendrik Postma,
manager Dredging Department.
Developing the best equipment
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Roya l Boska l i s Wes tm ins te r nv
The mega trailing suction hopper
dredger W.D. Fairway at work in
Malaysia. “Increasingly, sand
winning is done at remote
locations; in these cases, a
large hopper capacity is the
most economic solution.
We capitalized on that with the
lengthening of the W.D. Fairway.
After an increase in the hopper
volume of 12,000 m3, this vessel
is once again at the forefront in
this particular market segment.”
“You can make the difference if your people are not
afraid of looking beyond their field of expertise.”
Her Majesty the Queen
during the naming of the
Prins der Nederlanden on
26 August 2003. To her left,
Mr. Rietdijk, director of
Merwede Shipyard. To her
right, Mr. Van Gelder,
chairman of the Board
of Management.
The launch of the trailing
suction hopper dredger
Prins der Nederlanden.
“Both the Prins der
Nederlanden and her sister
ship the Oranje are
28 meters wide. With
these new ships, which
once again are first in
their class, Boskalis has
met market demand.”
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Key figures
30
Turnover completed contracts – 1,124
Turnover work done 1,046 1,035
Orderbook (work to be done) (3) 1,124 1,273
EBIT (4) 77.9 109.3
EBITDA (5) 157.2 175.9
Net result 70.9 82.1
Depreciation 79.3 66.6
Cash flow 150.2 148.7
Shareholders’ equity (3) 455.2 413.0
Average number of outstanding shares (x 1,000) (9) 26,630 25,949
Number of outstanding shares (x 1,000) (10) 27,256 25,970
Personnel (number of persons) (3) 3,186 3,285
Ratios ( in percentages)
Operating result as % of the turnover completed contracts 6.7 8.9
Return on capital employed (6) 16.0 20.3
Return on equity (7) 16.3 20.8
Solvency (3/8) 42.5 41.6
Figures per share ( amounts x € 1.00 )
Profit (9/11) 2.66 3.16
Cash flow (9) 5.64 5.73
Shareholders’ equity (3/10) 16.70 15.90
Dividend 1.04 1.26
Share information Euronext Amsterdam
Ordinary shares ( amounts x € 1.00 )
• Price range 16.51/23.15 17.80/35.55
• Closing price at year-end 20.91 19.27
• Price/earnings ratio 7.9 6.1
(1) Figures taken from the respective financial statements.
(2) Results on work in progress from 2003 onwards based on work done, and up to and including 2002
based on completed contracts.
(3) As at 31 December.
(4) Consists of earnings before interest and taxation.
(5) Consists of earnings before interest, taxation, depreciation and amortization.
(6) Net result + interest paid on long-term loans as % of the average capital employed (shareholders’
equity + long-term loans).
(7) Net result as % of the average shareholders’ equity.
(8) Shareholders’ equity as % of the balance sheet total (fixed assets + current assets).
(9) Weighted average number of outstanding ordinary shares less the number of shares owned
by the company.
(10) Number of outstanding ordinary shares less the number of shares owned by the company
as at 31 December.
(11) The dilution effect was practically nil up to the financial year 2003.
Key f igu res(1)
Annua l Repo r t 2003
(amounts x € 1 million, unless stated otherwise) 2003(2) 2002
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31 Roya l Boska l i s Wes tm ins te r nv31
Investor Relations
I nves to r Re la t ions
Boskalis values good communications with its existing and potential shareholders, institutional
investors and financial analysts. The key objective is to provide transparency about value creation
within the company, so that the valuation of Boskalis shares reflects as accurately as possible the
developments and prospects in the markets and the company’s performance in those markets.
Intensive communications with media and investors
Boskalis has an active investor relations policy which involves open communications with analysts,
shareholders, investors and media. A steady flow of information provides a picture of day-to-day
matters and strategy, business drivers and the company’s critical success factors. Boskalis communi-
cations primarily target investors interested in the long-term potential of small cap stocks. New contacts
are established regularly with investors in Europe, the United States and Canada. There is a strong
emphasis on private investors as well as institutional investors. The Boskalis share is monitored with
great interest in international circles.
Boskalis has its own website (www.boskalis.com), providing financial information as well as general
company information, vacancies, fleet composition, projects and the latest press releases.
Presentations for analysts are also published on the site. The website is maintained and improved
continuously.
Increase in share price of more than 8%
Despite the uncertainties in the short term, there was still considerable interest in Boskalis shares from
analysts and investors. This was primarily true of investors with a longer-term investment strategy.
The share price went up in 2003 by more than 8%, from € 19.27 to € 20.91.
Share price in euros, closing prices (1 January 1999 through 31 December 2003).
The Boskalis share price followed the market in 2003:
2003 2002 2001 2000 1999-2003
Boskalis share price: +8% -36% +14% +47% +52%
AEX index: +5% -36% -20% -5% -37%
AMX index: +15% -35% -20% -8% -45%
On the basis of the closing rate as at year-end 2003, the dividend yield for Boskalis shares in the past
year was 5.0% (€ 1.26 per share).
40
35
30
25
20
15
101999 2000 2001 2002 2003
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 31
32 Annua l Repo r t 20033232
Investor Relations
Large shareholders
As at 9 March 2004, the following shareholders are known to have a holding of at least 5% in Boskalis:
HAL Holding N.V. 31%
Delta Lloyd N.V. 5%
Egeria Luxembourg S.A. 5%
In addition to the holdings of these ‘regular’ shareholders, most Boskalis shares are in foreign hands.
An estimated 20% are held in the United States and Canada, with 25% being held in the United
Kingdom and the remainder in some ten European countries.
Dividend policy
The main principle underlying the Boskalis dividend policy is to distribute 30% to 40% of the net result
from normal operations in the form of dividend. A proposal will be submitted to the General Meeting of
Shareholders on 17 May 2004 for a dividend of € 1.04 per share in accordance with the dividend policy.
Shareholders may opt to take this dividend entirely in shares or entirely in cash. This dividend is payable
as from 9 June 2004.
Euronext listing
Royal Boskalis Westminster nv shares are listed on the Euronext Exchange and are traded there
continuously. The share is listed on the Next 150 Index and the AMX index in Amsterdam.
Financial agenda
Agenda in 2004
10 March Publication annual figures for 2003
mid-April Publication annual report 2003
17 May Annual General Meeting of Shareholders
19 May Shares go ex-dividend
19 May through 3 June Option period stock dividend or cash dividend
4 June Fixation of stock dividend conversion ratio
9 June Dividend payment for 2003
17 August Publication of 2004 half-year results
Information
Investor Relations
R.T. Berends
Telephone +31 (0) 78 69 69 822
Telefax +31 (0) 78 69 69 805
E-mail [email protected]
Internet www.boskalis.com
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 32
33 Roya l Boska l i s Wes tm ins te r nv33
Message to shareholders
Message to shareho lders
Dear shareholders,
2003 has been a difficult year for Royal Boskalis Westminster nv. Worsening market conditions, the
malaise of the American dollar and the stagnation of the works in Singapore have put the dredging
sector under pressure. Nevertheless, Boskalis performed well in 2003 given the circumstances.
The company is fighting fit: it has a broad, versatile market position and a strong financial base.
Uncertainty will persist in the coming period. Our expectations are not high for 2004.
Group turnover was comparable to last year, with the volume of our dredging activities declining
both in the home markets and in large international projects. The operating margins were under
pressure in this segment and fleet utilization was down. Earnings per share fell by 16% to € 2.66.
Caution was the keyword when it came to the acquisition of new orders, particularly in the markets
for larger, multi-year land reclamation projects. The orderbook decreased to € 1,124 million.
New orders were acquired in 2003 amounting to € 897 million.
As in the past year, the focus in 2004 will be on a selective market approach. In recent years, the com-
pany has made major investments against a backdrop of favorable market conditions and put a lot of
energy into the quality of its workforce, fleet and ICT systems. It is precisely when market conditions
are less favorable, as we expect in the period to come, that quality and cost leadership will make the
difference in the market. In 2004, certain parts of our organization will be tightened up even further
given the expectations referred to here. We expect the costs associated with this to be charged to
the result on a one-off basis in 2004. The positive effects of this operation are expected to emerge to
a lesser extent in 2004 and to a greater extent in 2005.
Corporate Governance has, in the last year, been the focus of attention from the media, public opinion,
the financial markets and regulators. The safeguards for proper Corporate Governance at Boskalis
consist primarily of the open corporate culture characterized by enterprise, technical professionalism
and normal civil behavior. The Dutch Corporate Governance Code (‘Tabaksblat’) was published on
9 December 2003. The reader can find a review of our approach on pages 24 and 25 of this annual
report.
Boskalis communicates intensively with the financial markets; the company has an active investor
relations policy and is the target of much interest from investors. In the past year, we saw interest
continuing to spread to shareholders with a long-term focus.
Although the result for 2003 is lower than in the previous year and although expectations for 2004
are not high, we continue to expect developments in the longer term to be positive. Boskalis will also
continue to have a healthy cash flow in the longer term. In the first six months of 2004, the level of
investments will continue to be high. Given the uncertainties relating to trends in demand in our
markets, the current continuation of the impasse relating to sand supplies in Singapore and a one-off
charge taken in 2004 for the margin enhancement program, we cannot at present make any firm
statement about expected profits. We propose the distribution of a dividend of € 1.04 per share
from the results for 2003 (2002: € 1.26), to be taken in stock or in cash.
R. van Gelder BA, chairman of
the Board of Management.
9513023_JV1_TekstENG 15-04-2004 15:53 Pagina 33 macuser Jaarverslagen:B:BOSKALIS:9513023%0:JV1_ENG/NED:
34 Annua l Repo r t 20033434
Message to shareholders
In 2002, there was a chill in the air; in 2003, the international dredging industry really started to feel the
cold of worsening conditions.
In the past year, the picture in our markets was determined, on the one hand, by a fall in demand in most
of our home markets and, on the other hand, by temporary or enduring price pressures in the segment
of the multi-year land reclamation projects. The latter was a result of the stagnation that continues for the
time being to affect the land reclamation projects in Singapore. The decline in the American dollar also
had a negative effect on market demand and on margins in countries with currencies linked to the dollar.
It is difficult to predict how these factors will develop in the short term. As far as the large land
reclamation projects in Singapore are concerned, Boskalis only expects the current impasse to be
resolved in the second half of the year. Furthermore, we are certainly not counting on market recovery
in 2004 for our Western European home markets and are assuming that the American dollar will
continue to fluctuate at its present low level.
Despite the current uncertainties, the longer-term prospects remain favorable. The demand for maritime
infrastructure is driven by the increasing global trade volume, the growth of the global population and
the shortage of space in densely-populated coastal areas. Furthermore, the energy sector (offshore) and
the tourist industry (land reclamation) have generated steadily rising demand for our services. The world
still needs building and, in the long term, dredging is a profession with a future.
Boskalis has made major investments in recent years in the development of its workforce, modern
systems and fleet innovation. As a result, it is precisely at this time that we make the difference
with our competitors because of our considerable innovative capacity and cost leadership. Modern,
cost-leading ships will push out older, more expensive equipment, especially on the market for
one-off large international projects.
In the market, price levels are under pressure. We have adopted a selective approach to price cuts. On
balance, this has led to a fall in the orderbook. At present, we are targeting smaller and medium-sized
projects with reasonable margins more than larger multi-year projects with poor margins. Alertness and
a focus on the market are essential. Our strategy aims to provide our clients with both the best and the
most price-effective solution. That is only possible by linking quality and resourcefulness to a strict
costs policy.
The turn in the tide is a good moment to take a critical look to see where the organization can be
optimized. Any adjustments will be made in accordance with the current prospects for work volumes.
Utilization levels for the hopper fleet are uncertain for 2004. This is because of the situation in Singapore
as well as the opportunities for alternative projects elsewhere. Higher utilization levels than last year are
expected for the cutter fleet.
We believe that a capital-intensive company like Boskalis should have sound capital ratios. Our fleet
innovation program, that started in 1996, will continue until mid-2004. More than half a billion euros
have been invested during this time in, among other things, renewal of our fleet of trailing suction hop-
per dredgers. This segment focuses primarily on maintenance work for ports, fairways and coastlines
on the one hand, and on large-scale land reclamation on the other. All investments are financed from
the company’s own funds and cash flow. After termination of this program in mid-2004, we can count
on a healthy, positive cash flow. We propose the distribution of a dividend of € 1.04 per share from the
results for 2003, to be taken in stock or in cash. The dividend yield is high.
Worsening conditions
meant that 2003 was
a less successful year
Uncertainties of 2003
persist in 2004
The prospects for the longer
term remain favorable
Innovation and cost
leadership make
the difference
Price levels in the market
are under pressure;
Boskalis is selective
Size of fleet and organization
being reviewed critically
Fleet utilization for hoppers
uncertain in 2004; improvement
for cutters compared to 2003
Capital ratios remain firm;
dividend € 1.04 per share
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 34
35 Roya l Boska l i s Wes tm ins te r nv35
Message to shareholders
We must be realistic about the coming year: 2004 will not be a fantastic year. In terms of turnover and
fleet utilization, we do not expect it to be, on balance, an improvement on 2003. For the time being,
we are seeing a tendency towards tighter margins.
It will also be necessary to take € 15 – 20 million into account for our margin enhancement plans.
This will be offset by a structural enhancement of the margin in time of more than € 20 million a year.
At this time, given all the uncertainties, it is not possible to state what the concrete impact will be on
profitability.
Our efforts in 2004 will be directed towards improving our basic position still further and to achieving
sound performance for the year, this time in worsening circumstances.
On behalf of the Board of Management,
R. van Gelder
No high expectations
for 2004
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 35
36 Annua l Repo r t 2003
In Gothenburg, Boskalis bv and Boskalis Nordic have
widened and deepened the fairways to the harbor.
To protect valuable nature areas in the vicinity, the
work was subject to strict environmental standards.
Hydronamic, Boskalis’s own engineering consultancy,
developed a reliable environmental monitoring system.
Boskalis was able to make the difference by working
alongside the customer and participating in the
decision-making process.
Hans Lindström, general manager of Boskalis Sweden:
“We got the contract, even though our price was not the
lowest one. Our proposals and measures for limiting the
negative effects on the environment in the vicinity made
the difference for the client.”
“Because of the environmental risks involved, this was
a politically sensitive project”, explains Henk Smink, area
manager of Boskalis bv. “For this reason, it was important
to work alongside the client and to interpret correctly the
information they provided. Our specialized knowledge
enabled us to come up with practical solutions which
actually protected the environment – for example, limiting
hopper overflow by stopping dredging earlier than usual
and making adjustments to the dredge head.”
To ensure that the procedure implemented did in fact pro-
tect the environment adequately, Hydronamic developed
an environmental monitoring system that also gives the
customer a reliable and up-to-date picture of the situation.
The specifications included the parameters that had to
be measured - for example, the concentration of sus-
pended matter in the water within a 1,000-meter radius
of the site 24 hours a day. Hydronamic used this to work
out how to take the measurements. Once that was
decided, among other things by on-site testing, the
necessary equipment was purchased. Hydronamic also
developed certain components itself. For example, it
developed software that collected all the measurements
in a database. This ensured that all the measurements
were interpreted correctly. That kind of software is not
available off the shelf. It had to be custom-made for the
equipment used for this project. The advantage is that
Boskalis now has a program and a measuring system
that it can build on - a blueprint for environmental
monitoring in the future.
Left Hans Lindström, general manager Boskalis Sweden
and right Henk Smink, area manager Boskalis bv.
Modified dredging method and innovative
monitoring system protect the environment
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 36
Roya l Boska l i s Wes tm ins te r nv
View of a part of the dredging
area in the port of Gothenburg
from the bridge of the trailing
suction hopper dredger
Coastway.
“Our specialized knowledge enabled us to make
the difference and come up with practical solutions
which actually protected the environment.”
The environmental
monitoring vessel with the
measuring equipment on
board. Hydronamic
developed a monitoring
system for measuring the
concentration of suspended
matter 24 hours a day in
a radius of 1,000 meters
around the working area.
Diagram showing environ-
mental monitoring system.
In addition to the
parameters shown in the
diagram, the database also
includes noise, vibration
and the weather conditions,
together with the amount
of dredged and blasted
material.
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 37
38
Report of the Board of Management on 2003
Annua l Repo r t 2003
Turnover work done
(x € 1 million)
200220012000199919981997199619951994
582
493
569
697
801851
960
1,0831,035
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
2003
1,046
383838
Repor t o f the Board o f Management on 2003
INTRODUCTION
The adverse developments in the markets in 2003 have been reflected in less positive financial
results. Boskalis looks back at a difficult year in which the results have been pleasing given the
circumstances. In 2004, it will continue to sharpen up the organization. The company is fighting
fit in financial terms and in good condition to compete in the market. In the last year, Boskalis
has also made considerable investments in its market punch, with quality people and quality
equipment. The Board of Management is pleased to report to you on the past year.
FINANCIAL MATTERS
Headlines in 2003 were:
• net profit € 70.9 million;
• margins and fleet utilization under pressure;
• very strong cash flow generation;
• net profit per share € 2.66; dividend per share € 1.04;
• financial position remains strong;
• orderbook € 1.1 billion.
Turnover and orderbook
Turnover work done, which is the basis for the published net profit with effect from the 2003 financial
year, was € 1,046 million in that year (2002: € 1,035 million). In Europe, turnover was stable on
balance. Outside Europe, turnover increased in the Far East, Mexico and the Caribbean, whereas
volume in Nigeria fell compared to 2002.
Turnover work done by market
(x € 1 million)
Home markets 2003 2002 2001 2000 1999
• The Netherlands 230 254 283 223 160
• Rest of Europe 181 166 177 181 228
• Outside Europe 173 186 167 190 108
584 606 627 594 496
International projects market ‘hit and run’ 371 377 400 302 285
Specialist niche markets 91 52 56 64 70
1,046 1,035 1,083 960 851
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 38
Report of the Board of Management on 2003
39 Roya l Boska l i s Wes tm ins te r nv3939
Home markets. On the home markets, turnover decreased in 2003 to € 584 million (2002: € 606 million).
The share of the home markets in group turnover was 56% (2002: 59%).
The Boskalis home markets are:
The Netherlands Iberian Peninsula
Germany Italy
United Kingdom Mexico
Finland United States
Sweden Nigeria
In Europe, turnover in The Netherlands remained reasonably equal, despite the difficult market conditions
there. Turnover improved in Scandinavia, with a major contribution from the successful deepening of
the entrance channel to Gothenburg harbor. In Germany, turnover fell due to the sale of the inland
canal-construction activities. Volumes in the United Kingdom were lower because of cautious govern-
ment spending. Volumes on the Iberian Peninsula were stable.
Outside Europe, turnover in Nigeria was well down on 2002, when work was still in full progress on a
large contract for Chevron. Turnover in the United States and Mexico was slightly up on 2002.
Turnover work done according to geographical area
(x € 1 million)
2003 2002 2001 2000 1999
The Netherlands 230 254 283 223 160
Rest of Europe 219 189 208 234 276
Australia / Asia 223 207 265 148 146
Middle East 113 132 61 64 66
Africa 106 115 77 103 55
North and South America 155 138 189 188 148
1,046 1,035 1,083 960 851
International projects market. On the international projects market, turnover in 2003 was € 371 mil-
lion (2002: € 377 million). Turnover in the Far East was slightly higher because of large works in
Malaysia (Pelepas harbor extension), Singapore (land reclamation with local sand, wastewater
drainage system, gas pipeline in sea) and South Korea (Pusan harbor extension). Turnover in the
Middle East fell after the completion of the dredging work in early 2003 for ‘Palm Island 1’ in Dubai
(a tourist island in the sea), because of the war in Iraq and the loss of the cutter suction dredger Oranje.
The company reclaimed land for an LNG plant in Trinidad on behalf of Bechtel, extended the harbor
of Le Havre in France and made preparations in Kazachstan for the construction of islands in the sea
for oil production platforms. For the first time in its history, Boskalis succeeded in deploying equip-
ment in China.The participating interest in Archirodon increased from 30% to 40% in the fourth quar-
ter. This was one reason why the share in turnover of Archirodon in 2003 increased to € 70 million
(2002: € 53 million). The activities and results of this company, which is included in consolidation on
a proportional basis, developed favorably.
Turnover work done
by market
Home markets (56%)
Specialist niche markets (9%)
International projects markets (35%)
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 39
40
Report of the Board of Management on 2003
Annua l Repo r t 2003
Acquired work and orderbook
as at 31 December
(x € 1 million)
2002200120001999
886820
1,354
1,214
1,093
1,224
1,084
1,273
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
1400
2003
acquired work orderbook
897
1,124
4040
Specialist niche markets. In the specialist niche markets, the volume of activities for the offshore
industry increased. Turnover was € 91 million (2002: € 52 million). An important project was the
dredging work for the construction of a gas pipeline between Libya and Italy.
The total amount of acquired orders in 2003 was € 897 million (2002: € 1,084 million). Important new
assignments were the PFI project for widening the A59 freeway in The Netherlands, the construction of
islands for oil drilling in the Caspian Sea (Kazachstan), expansion of the ports of Le Havre (France) and
Coega (South Africa) and land reclamation for an LNG plant in Trinidad. On balance, the orderbook fell
from € 1,273 million at year-end 2002 to € 1,124 million as at 31 December 2003. € 361 million of this
is for uncompleted land reclamation work in Singapore. The share in the orderbook accounted for by
Archirodon increased from € 93 million at year-end 2002 to € 182 million as at 31 December 2003.
Orderbook by market as at 31 December
(x € 1 million)
Home markets 2003 2002 2001 2000 1999
• The Netherlands 143 199 241 243 231
• Rest of Europe 61 89 71 75 99
• Outside Europa 38 131 83 91 166
242 419 395 409 496
International projects market ‘hit and run’ 819 761 781 765 256
Specialist niche markets 63 93 48 40 68
1,124 1,273 1,224 1,214 820
Results
Earnings before interest and tax (EBIT) fell to € 77.9 million (2002: € 109.3 million).The operating result
of € 69.6 million was lower than in 2002 (€ 99.5 million). The ratio of operating result to turnover was
6.7% (2002 – on the basis of completed contracts: 8.9%).
Equipment utilization in 2003 was lower than in recent years. The average utilization rate of the hopper
fleet of 37 weeks was less than in 2002 (40 weeks), mainly because a mega and a jumbo hopper were
not fully available in the first six months of the year: the W.D. Fairway was undergoing extension work
prior to March 2003 and the Queen of the Netherlands went in for major servicing. In addition, the fall
in market demand was seen in a lower utilization rate for the medium-sized and smaller hoppers.
The cutter fleet was in use for 26 weeks on average (2002: 31 weeks). During the first six months of
the year, the Taurus went in for extensive servicing, and utilization of the smaller cutters was down
due to reduced market demand.
2002200120001999
29
40
30
40
29
43
31
40
0
5
10
15
20
25
30
35
40
45
2003
cutter suction dredgers trailing suction hopper dredgers
26
37
Equipment utilization
(in weeks per year)
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 40
Report of the Board of Management on 2003
41 Roya l Boska l i s Wes tm ins te r nv4141
The operating result for 2003 benefited from a number of incidental items amounting on balance to
€ 1.6 million. In particular, there was a positive result of € 26.7 million from the change in the valuation
system of work in progress to a full ‘percentage of completion’ method, a one-off charge as a result of
an additional payment into the Dutch company pension fund (€ 18.0 million), as well as an additional
depreciation item of € 7.1 million due to writing off a number of older units for the purposes of fleet
rationalization. The taxation of the incidental items in the operational result amounted to € 3.3 million.
In addition, the settlement of a number of tax disputes and the resulting increase in clarity in the fiscal
position of the company meant that it was possible to include deferred tax claims in the year under
review to an amount of € 17.7 million.
On balance, the incidental items had a positive effect on the net result for 2003 amounting to € 16.0 million.
The result from associated companies was € 8.3 million (2002: € 9.8 million). The largest associated com-
pany, Lamnalco, which is primarily active in the Middle East and Nigeria in harbor and offshore services,
had another excellent year, even though the result was lower in euros as a result of the fall in the dollar
rate.
The tax burden in 2003 was relatively low as a result of the incidental items referred to above.
Excluding one-off items, the tax burden fell to € 21.5 million (2002: € 27.9 million). This is equivalent to
28.2% (2002: 25.4%). This higher tax percentage is linked to the spread of the results over the many dif-
ferent countries where the company works and the way in which the results are taxed in those countries.
Cash flow rose in 2003 to € 150.2 million (2002: € 148.7 million).
In line with the net profit, net profit per share fell to € 2.66 (2002: € 3.16). For 2003, the return on
average capital employed was 16.0% (2002: 20.3%) while return on equity was 16.3% (2002: 20.8%).
Investments and balance sheet
Capital expenditure was high again in 2003, mainly because of the fleet extension and modernization
program for 2001-2004. An amount of € 149 million (2002: € 152 million) was invested in tangible fixed
assets. The main investments were the construction of two trailing suction hopper dredgers, both with
a capacity of 16,000 m3, the extension of the mega trailing suction hopper dredger W.D. Fairway (to
more than 35,000 m3), the modification of the cutter suction dredger Cyrus that was acquired in 2002,
and the modification of the trailing suction hopper dredger Cosmos I.
The book value of the divestments was € 7 million (2002: € 12 million). A major book profit (€ 13.3 million)
was generated by the insurance payment for the cutter suction dredger Oranje, that sank in January 2003.
Net result
(x € 1 million)
40
3228
37
47
58
67
7882
0
10
20
30
40
50
60
70
80
90
2003
71
200220012000199919981997199619951994
Cash flow
(x € 1 million)
200220012000199919981997199619951994
88
7871
8593
112
122
140149
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
2003
150
2002200120001999
86
10
99
9
124
10
140
12
0
20
40
60
80
100
120
140
160
2003
divestmentsnet investments
142
7
Investments
(x € 1 million)
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 41
42
Report of the Board of Management on 2003
Annua l Repo r t 20034242
A start was made in 2003 on a critical evaluation, mainly of older fleet units, with a view to the rationali-
zation and modernization of the fleet. This will lead to the scrapping or laying up of a number of older
units during 2004. The book value of the units in question was therefore readjusted during the year
under review to the estimated residual value.
The market position for soil improvement activities was improved in late 2003 by the merger of these
activities with those of the Cofra group, the global leader in vertical drainage and foundation engineering.
Boskalis has a participating interest of 51% in the new company.
As a result of the exercising of an option acquired at the same time as the original 30% interest, the
participating interest in Archirodon was increased in the fourth quarter to 40%.
The capital tied up in the associated companies fell by € 4.2 million to € 52.1 million, mainly as a result
of currency translation differences. Working capital (stocks, work in progress, receivables less short-
term liabilities) continued to be very negative: € 224 million as at year-end 2003 (2002: € 167 million
negative).
Provisions fell to € 64 million as at year-end 2003 (2002: € 76 million). The principal components of this
item are maintenance of equipment and deferred tax liabilities. Another major repairs program was carried
out in the financial year. This led to both a reduction in the repairs provision and an increase in fleet
quality.
All capital expenditure was financed from company funds. Nevertheless, the large cash flow from oper-
ations pushed up liquidity to € 161 million at the end of the financial year (year-end 2002: € 109 million).
A part of this cash, € 61 million, was held by projects being executed in cooperation with third parties
(2002: € 47 million).
Equity, before inclusion of the proposed profit distribution, increased to € 455 million at the end of the
financial year (year-end 2002: € 413 million).
Equity to total assets as at 31 December 2003 was 42.5% (year-end 2002: 41.6%).
Proposed profit appropriation
In accordance with the dividend policy, it is proposed to appropriate 40% of the result after taxation, in
other words € 28.3 million, for a dividend payment of € 1.04 per share, to be taken in stock or in cash.
The remainder of € 42.6 million will be added to other reserves.
POLICY AND OPERATIONAL MATTERS
Emoluments for directors and members of the Supervisory Board
For company policy with respect to emoluments for directors and members of the Supervisory Board,
the reader is referred to the Report of the Supervisory Board.
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 42
Report of the Board of Management on 2003
43 Roya l Boska l i s Wes tm ins te r nv4343
Personnel & Organization
With their expertise and skills, the employees are a critical success factor for Boskalis. Some years ago,
Boskalis initiated a process of change and development in which knowledge transfer and employee
development play an important role. Concrete initiatives in this context are competence management,
the Boskalis Leadership Development program, the International Dredging Academy and the Dredging
in Practice training program.
In 2003, Boskalis continued to work on the implementation of competence management. The benefits of
the system have now become apparent within the organization. A better picture has been established
of individual employees, allowing the company to make the most of their knowledge and experience.
In addition, shortcomings in the workforce can be identified at an early stage and employees them-
selves get a good idea of their current situation and how they can develop further.
The Boskalis Leadership Development program has now been completed twice and it has made a
positive contribution to the development of about forty promising employees. A large number of them
have now been appointed to positions at the middle and senior management levels.
The International Dredging Academy for fleet crews has been in operation successfully for the third
year in succession. More than 150 Dutch, Russian, Baltic and Philippine employees have participated
in the various modules.
The Dredging in Practice course developed by the company itself for Dutch and foreign superintendents
has been well received. A total of approximately 100 employees have now followed this course in six
sessions.
In late 2003, the first implementation stage was completed for Prinses, the new records and information
system for human resources. The second stage was launched in early 2004. After completion, Boskalis
will have a modern and complete human resources management tool.
Workforce size. In 2003, the average size of the workforce was 3,202. At year-end 2003, the number of
employees was 3,186 (3,285 at the end of 2002).
During the year, there were regular consultations about a variety of subjects with the Works Council
and its Committees. The active approach of the Works Council and the way in which it fulfilled its
duties were felt to be constructive.
Health, safety and the environment
The concern for safe and healthy working at Boskalis has been an important component of policy for
many years. The ongoing encouragement of safety awareness within the organization plays a central
role here. Against this background, 2003 saw an intensification of communications about safety in the
periodical safety publication ‘Safety Matters’ and the introduction of a ‘Safety Newsflash’ for the ships
covering safety issues of various kinds throughout the fleet. 2003 also saw the launch of on-site safety
inspections by senior managers and safety awareness training was also given to managers. Individual
safety performance is an integral component of the rewards policy at Boskalis.
Average workforce
3,246 3,233 3,257 3,192
2002200120001999
3,202
0
500
1000
1500
2000
2500
3000
3500
2003
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 43
44
Report of the Board of Management on 2003
Annua l Repo r t 20034444
Given terrorist threats to shipping, the implementation began in the year under review of the ISPS Code
(the International Ship & Port Facility Security Code) of the International Maritime Organisation.
Seagoing ships must meet these requirements from July 2004 onwards. Boskalis is on schedule; all the
plans for implementation have been completed and all ships will be inspected and certified on time.
In 2003, Boskalis companies received two awards from outside the company for safety performance.
Westminster Dredging Company Ltd in the United Kingdom won the National Safety Award 2002 of the
British Safety Council, one of the world’s largest independent organizations in the field of safety, health
and environmental protection. The award was given for excellent performance in the area of safety, and
in particular the reduction in the number of accidents. Boskalis Westminster International bv in Nigeria
received the President’s Praise Award from Chevron Texaco Overseas Petroleum for the Escravos Gas
to Liquids Project. More than a million man-hours were spent on this project without absenteeism
caused by accidents.
The number of accidents in 2003 was down slightly compared to 2002, as was the number of hours
worked. On balance, the accident rate (LTIF, the number of accidents per million hours worked)
increased slightly in 2003. The policy objective is a continued reduction in LTIF.
In addition to the unremitting emphasis on safety and health, the development of environmental dredging
techniques is an important aspect of policy. Clients regularly ask for practical advice about designing
dredging projects on environmentally acceptable lines. Boskalis has a team of environmental experts
for providing its clients with professional assistance. Within the company, the expertise in this area is
maintained and used for the continuous improvement of working procedures. In 2003, work took place
on ISO-14001 environmental certification for the organization in Singapore. Certification will go into
effect from July 2004. Preparations were also launched there for certification in accordance with the
safety and environmental standard OSHAS-18001.
Equipment
Cost leadership is essential for the competitive position of Boskalis. In recent years, the company has
made considerable investments in an extensive fleet program, increasing capacity in accordance with
market developments and replacing older tonnage with highly efficient, state-of-the-art ships.
The extension of the mega trailing suction hopper dredger W.D. Fairway was completed in early 2003,
increasing her capacity from 23,000 m3 to 35,500 m3. Immediately thereafter, the W.D. Fairway was
successfully used for phase II of the ‘Port of Tanjung Pelepas’ project in Malaysia. In August, the trailing
suction hopper dredger Prins der Nederlanden was named and launched by Her Majesty the Queen of
the Netherlands. This is the first of two new innovative ships measuring 16,000 m3 each, that are being
built as part of the multi-year Boskalis fleet plans. The second ship will be launched on 20 March 2004.
Both ships will be completed in 2004.
In January 2003, one of the three largest cutter suction dredgers of Boskalis, the Oranje, sank. To replace
it, the cutter suction dredger Cyrus, that was acquired in 2002 from the liquidation of the Italian dredging
company Dragomar, was refitted to meet Boskalis standards. This vessel has now been operational
since mid-2003.
The trailing suction hopper dredger Cosmos I, with a capacity of 6,000 m3, was also purchased and
went into service in 2003.
0
2
4
6
8
10
12
14
16
2003200220012000
11.411.1
12.2
14.3
Number of accidents per
million hours worked
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 44
Report of the Board of Management on 2003
45 Roya l Boska l i s Wes tm ins te r nv
Research and development
At Boskalis, research and development for dredging equipment and techniques enjoy a high priority.
The company has a great deal of expertise and experience in this area. These things are the basis for
continuous innovations. For many years, Boskalis has been engaged in research, partly on its own and
partly in joint projects with other companies working in the branch and with knowledge institutions.
For example in the past year the company has conducted its own research project into a new way
of removing sand in an environmentally friendly way from beneath a contaminated or unusable layer
without affecting that layer. This is known as ‘selective dredging’. A range of improvements to working
methods were also introduced, with practical experience being at the root of structural innovations.
A number of innovations were also developed in-house for the fleet. Examples are the dredging unit
of the new hopper Prins der Nederlanden and an advanced pontoon for the installation in sea of large
wastewater pipelines in Singapore. In collaboration with The Netherlands Organization for Applied
Scientific Research (TNO), work took place on the optimization of the dredging process on a trailing
suction hopper dredger. This study will continue in 2004.
Information and communications technology (ICT)
The major investments it has made in ICT infrastructure in recent years mean that Boskalis has the
right tools to operate efficiently in this area. Innovations continued during the year under review. For
example, Prinses, the new records and information system for human resources, went into operation.
The system will be extended further in 2004, finally being transformed into a fully integrated Human
Resources Management system. From that point onwards, it can be used effectively in the area of
competence management. The ERP system was implemented in Germany in 2003 and all office com-
puter systems were upgraded throughout the world to the present generation of software systems (XP).
The development and implementation were also completed of the new generation of production report-
ing systems for trailing suction hopper dredgers and cutter suction dredgers. Production levels can
now be reported on, analyzed and validated on board these ships. This makes it possible to tighten up
production processes and adjust them in good time.
In 2003, access protection in the Boskalis central systems was tightened up so that the systems are
now available to employees throughout the world.
Boskalis received the ‘ICT Boardroom Award’ in May 2003. This is a prestigious award for the most
innovative and successful use of ICT in the Dutch corporate sector. The award is an initiative of the
Ministry for Economic Affairs.
Prospects for the coming year
In 2004, capital expenditure will be lower than in 2003. The current extension and modernization
program for the fleet will be completed in mid-2004. It is expected that the capital expenditure will
be financed from the company’s own funds. This does not take into account the possibility of major
expansion opportunities.
In 2004, Boskalis will continue to focus on maintaining and, where possible, strengthening its market
position. This will involve tightening up the organization further, an operation involving the preparation
of a broad package of measures that will, over time, generate a structural margin enhancement of more
than € 20 million a year. The measures focus on sharper purchasing, the rationalization of equipment
and the organization, as well as better portfolio management for the home markets. Worldwide,
they will lead to a reduction in the workforce of approximately 450, roughly 200 of which will be in
The Netherlands. For this package of measures, a one-off charge is foreseen for the result for 2004
(order of magnitude € 15 – 20 million).
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 45
46
Report of the Board of Management on 2003
Annua l Repo r t 2003
Boskalis does not have high expectations for the results for 2004. On balance, turnover and fleet utilization
are not expected to be an improvement on 2003, and margins are tending to tighten. Given all the
uncertainties at present, a specific profit forecast for 2004 is not feasible.
In conclusion
In 2003, the Boskalis workforce demonstrated its commitment and professionalism. They have responded
to challenges presented by the adverse market conditions and their contributions have allowed Boskalis to
achieve a good result in 2003. The Board of Management is grateful to the workforce for their contribution
and wishes to express its sincere thanks to them.
Papendrecht / Sliedrecht, 9 March 2004
Board of Management
R. van Gelder BA
Dr. P.A.M. Berdowski
K.G. van Nes
A.H.A. Hoevenaars
-00148_JV1_TekstENG 07-04-2004 09:30 Pagina 46
47 Roya l Boska l i s Wes tm ins te r nv
The cutter suction dredger
Tejo busy with maintenance
work on the entrance channel
in the Bahía de Cadiz,
San Fernando, Spain.
-00148_JV1_TekstENG 07-04-2004 09:31 Pagina 47
48 Annua l Repo r t 2003
Winning the prestigious ICT Boardroom Award, given
for the most innovative and successful implementation
of information and computing technology in the Dutch
corporate sector, was the crowning glory of the ICT
Department in May 2003. In five years’ time, this
department transformed the fragmented ICT infra-
structure into an up-to-date and coherent whole.
“The jury was impressed by management’s courage in
jumping in at the deep end to reorganize and streamline
the entire infrastructure, which consisted of numerous
applications and systems”, was the comment made by
ICT manager Sjaak Stam about the award, “especially
because of the project-based approach of our company,
our sites all over the world, and the complex logistics
that these involve. This transformation would never have
succeeded without the commitment of management,
who realize that ICT is a cornerstone of business
operations in today’s world.
“With the old system, data interchange, which is vital if a
company wants to operate efficiently and be competitive,
was cumbersome. We now have a system that links all
the different business units, thereby optimizing internal
procedures. We’ve also built a global network that gives
our employees access to the information essential to
the planning and implementation of their work no matter
where they are in the world – on land or at sea.”
“We’ve been working with the ERP-system Baan since
1 January 2002”, says Kees Wielaart, financial manager
of Boskalis bv. “The people who use the system every
day have invested a great deal of energy to get this far,
and their efforts are paying off now. We’ve also laid the
foundation on which future improvements to the system
can be made.
“I personally think that the reports generated by the
system offer the greatest advantage. In the past, each
person had his or her own way of doing it. Now there’s
a standard that everyone must adhere to, which means
that the data is more reliable and that we have a better
tool for managing the organization.”
Left Sjaak Stam, ICT manager
and right Kees Wielaart,
financial manager Boskalis bv.
From fragmentation to cohesion:
ICT as lynchpin
-00148_JV1_TekstENG 07-04-2004 09:31 Pagina 48
Roya l Boska l i s Wes tm ins te r nv
“We’ve also built a global network
that gives our employees access
to the information essential to
the planning and implementation
of their work, no matter where
they are in the world – on land
or at sea.”
“Our ICT infrastructure makes the difference;
it is one of the lynchpins of our business operations.”
The establishment of a
global network makes the
exchange of data possible
and optimizes the internal
working procedures.
The sites around the world
and the complex logistics
this involves are the
daily challenge for the
purchasing department.
-00148_JV1_TekstENG 07-04-2004 09:31 Pagina 49
50 Annua l Repo r t 2003505050
Report of the Supervisory Board
Repor t o f the Superv i so ry Board
Financial statements
In accordance with Article 26 of the Articles of Association of Royal Boskalis Westminster nv, the
Supervisory Board presents the Annual Report for 2003 to the Annual General Meeting of Shareholders.
The Annual Report 2003, including the financial statements for the same year, was presented to the
Supervisory Board by the Board of Management. The financial statements, which have been audited
and approved by KPMG Accountants N.V., have been adopted unchanged by the Supervisory Board.
We recommend to the Annual General Meeting of Shareholders:
• the adoption of the annual accounts, including the proposed profit appropriation;
• the discharge of the members of the Board of Management in respect of their management activities;
• the discharge of the members of the Supervisory Board for their supervision of management during
the year 2003;
• the distribution of a dividend to shareholders of € 1.04 per share.
Membership of the Board of Management
There was a change to the Board of Management in the year under review. Mr. A.H.A. Hoevenaars was
appointed by our Board to the Board of Management of the company with effect from 1 July 2003 after
the General Meeting of Shareholders had been informed of his nomination during an Extraordinary
General Meeting of Shareholders on 30 June 2003. The Board of Management now consists of
four members.
Membership of the Supervisory Board
Messrs. M. van der Vorm and A.A. Westerlaken retired by rotation on 14 May 2003 and were
reappointed with effect from the same date for a period of four years.
Mr. S.D. de Bree, whose current period of office ends at the 2006 Annual General Meeting of Shareholders,
has decided to resign his position at the end of the next Annual General Meeting of Shareholders.
The reason for this step is that both the Tabaksblat Code and the Sarbanes Oxley Act have generated
an excessive increase in his workload. The Supervisory Board intends to appoint Mr. M.W. Dekker as
chairman and to fill the resulting vacancy in the near future.
Activities of the Supervisory Board
The Board had six meetings with the Board of Management during the period under review.
Preparations for the meetings were made by the chairman of the Supervisory Board and the chairman
of the Board of Management. Permanent items on the agenda were the results and the balance sheet,
as well as industry and market developments. Other subjects discussed included strategic positioning,
corporate budget, liquidity, continuity, acquisition and investment proposals, organizational structure,
internal control and risk management, as well as the personnel policy, health, safety and the environ-
ment. It was decided, subject to approval from the shareholders, to distribute a dividend for 2003 of
€ 1.04. Shareholders may opt to take this dividend entirely in stock or entirely in cash.
-00148_JV1_TekstENG 07-04-2004 09:31 Pagina 50
51 Roya l Boska l i s Wes tm ins te r nv5151
Report of the Supervisory Board
Furthermore, the Supervisory Board was interested to take note of the publication on 9 December 2003
by the Tabaksblat Commission of the Dutch Corporate Governance Code (the ‘Code’). The principles of
sound corporate governance and best-practice provisions stated both in the Code and in the draft version
were discussed during joint meetings of our two boards. The Supervisory Board is of the opinion that
the company already acts in accordance with a large number of the recommendations or that simple
steps will be adequate to achieve compliance. Nevertheless, the Board believes that a critical appraisal
of the recommendations is appropriate. For a further provisional discussion of the Code of the
Tabaksblat Commission, the reader is referred to the Corporate Governance section in the report of
the Board of Management on pages 24 and 25.
The Board discussed membership and the allocation of duties within the Board of Management.
Possible succession options for the Board of Management and top management were also discussed.
The chairman of the Supervisory Board has had regular discussions at other times with the chairman of
the Board of Management and with other members of the Supervisory Board.
The Supervisory Board determines the remuneration for the members of the Board of Management
pursuant to the recommendations of the Remuneration Committee. The policy focuses on the success-
ful recruitment and retention of qualified managers for a listed company with international operations
and a global presence that uses specialized technological activities and capital-intensive equipment.
The remuneration includes a fixed salary, a variable salary and a pension plan. The amount and compo-
sition of the package is determined on the basis of the Dutch labor market and also on the basis of a
reference group of companies that are comparable to Boskalis in terms of size and complexity.
In addition to the fixed salary, there are bonus arrangements for the short term (i.e. 1 year) and the long
term (i.e. 3 years). The short-term bonus can amount to a maximum of 60% of the fixed annual salary.
There are two types of criteria that determine the amount of the short-term bonus. One half is linked to
the return on capital employed, the other half to clearly defined personal targets. The long-term bonus
can also amount to a maximum of 60% of the fixed annual salary. One half depends on the criterion
‘creation of shareholder value’; the other half is determined by two other criteria linked to long-term
policy objectives.
For an overview of individual payments to the members of the Board of Management, the reader is
referred to page 71 of the annual report. The variable payment awarded in 2003 relates to the 2002
financial year. In addition, one of the members of the Board of Management, Mr. P.A.M. Berdowski,
received an additional payment of € 633,000. This is linked to an agreement made between
Mr. Berdowski and the Supervisory Board upon his appointment in 1997 with respect to his long-
term incentive. He has, for good reasons, not participated in the option scheme currently in place.
-00148_JV1_TekstENG 07-04-2004 09:31 Pagina 51
52
Report of the Supervisory Board
Annua l Repo r t 2003
In addition, the Supervisory Board, pursuant to the recommendations of the Remuneration Committee,
has examined the payments made to the members of the Supervisory Board. The current arrangements
were adopted at the Annual General Meeting of Shareholders in 1992 and they have not changed since.
The Supervisory Board will submit a proposal to the shareholders at the 2004 Annual General Meeting
of Shareholders for the updating of payments for the chairman and members of the Board.
The Supervisory Board has met twice without the Board of Management. A range of subjects were
discussed on those occasions. Items on the agenda included the performance of the Board and of
individual members of the Supervisory Board as well as that of the Board of Management, and appoint-
ments to cover expected vacancies. Decisions were also taken about the remuneration policy and its
practical implementation.
Members of the Supervisory Board were also interested participants at consultative meetings of the
Works Council. There were also discussions between the members of the Supervisory Board and the
Works Council.
All activities of the Supervisory Board were carried out in accordance with its standing rules.
The Board extends its compliments to the company’s employees and the Board of Management for the
results achieved and for the policy pursued in 2003 – a year dominated by difficult market conditions –
and expresses its special appreciation for the dedication and commitment shown by all.
Papendrecht / Sliedrecht, 9 March 2004
The Supervisory Board
S.D. de Bree 1)
J. Aalberts
M.W. Dekker 1)
M. van der Vorm
A.A. Westerlaken
1) Members of the Remuneration Committee
9513023_JV1_TekstENG 15-04-2004 14:25 Pagina 52 macuser Jaarverslagen:B:BOSKALIS:9513023%0:JV1_ENG/NED:
In 2003, the crane vessel Kreeft
used an environmental grab
with a horizontal action to
dredge the polluted harbor
of Urk in The Netherlands.
53 Roya l Boska l i s Wes tm ins te r nv
-00148_JV1_TekstENG 07-04-2004 09:31 Pagina 53
54 Annua l Repo r t 2003
Increasingly, infrastructure projects are being imple-
mented by means of Public-Private Initiatives (PPI).
Boskalis also stands out by offering customized
financing solutions for such projects.
“PPI is an umbrella term for various types of projects in
which the government joins forces with the business
community. The objectives are to capitalize on the
qualities and potential of both parties and jointly manage
risks intelligently,” says Jelke Jan de With, manager of
Boskalis bv. “Over the last several years, the first such
initiatives in The Netherlands have been carried out –
the construction of the Betuwe line and the RW 11 and
A59 freeways, for example. PPI actually increases the
chances of success of complex projects like the Tweede
Maasvlakte and coastal defense works.
“PPI allows us to participate with the client in the
decision-making process and to propose innovative
solutions, leading to greater efficiency both in terms
of design and implementation. Basically, it’s a win-win
situation, not least for the ‘real’ customers like those who
use the roads, which can be laid faster thanks to PPI.
“The success of a Public-Private Initiative depends on
trusting each other and sharing the passion for creating
the best product possible are the keys to a fruitful part-
nership.”
“Boskalis is also active in the most progressive form of
PPI,” says Group Treasurer Frank Rousseau. “In this type
of initiative, the business community is responsible for
financing the project. We have many years’ experience
in project financing abroad. With this expertise, we can
offer customers a comprehensive package – the techni-
cal solution, implementation, project management, and
access to funding. In The Netherlands, the role of the
business community in financing projects is becoming
increasingly important as a result of greater demand for
new infrastructure and limited government budgets.
It is important to take advantage of this development.
Clearly, these kinds of innovative contracts are a means
of generating work.”
Left Frank Rousseau, Group Treasurer
and right Jelke Jan de With,
manager Boskalis bv.
Public-Private Initiatives lead
to greater efficiency
Roya l Boska l i s Wes tm ins te r nv
Work on the A59. The first DBFM
(Design, Build, Finance & Maintain)
contract for road infrastructure in
The Netherlands was drawn up
for this restructuring of the N50
road between Rosmalen and
Geffen.
“PPI allows us to participate with the client in the
decision-making process. So we can make the difference.”
Work on the N11 road
between Alphen aan
den Rijn and Bodegraven,
carried out under a pioneer-
ing Design, Build, Maintain
& Finance contract.
The PFI (Private Financing
Initiative) coastal defense
project in Pevensey Bay in
the United Kingdom, that
has now received 2 awards.
9513023_JV1_TekstENG 15-04-2004 14:27 Pagina 55 macuser Jaarverslagen:B:BOSKALIS:9513023%0:JV1_ENG/NED:
56
Financial Statements 2003
Annua l Repo r t 20035656
General
The financial statements on pages 56 to 78 have been prepared on the basis of historical cost. Unless
stated otherwise, assets and liabilities have been included at nominal value less such provisions as are
considered necessary. Profits are accounted for when realization is sufficiently certain; losses are provided
for as soon as they are foreseen.
Change in accounting principles
In previous years, the result on work in progress was based on completed contracts, with the exception
of major long-term projects (with a contract value in excess of € 25 million). If the result could be deter-
mined reliably, the profit on these projects was taken in proportion to the progress of work on the basis
of costs spent. With effect from the 2003 financial year, results on all work in progress will be stated on
the basis of the expected result on completion of the work, and in proportion to progress made on the
basis of the cost price of the work done during the period under review. The profit will not be taken on
work in progress until a reliable estimate can be made of the result on completion of the work. Provi-
sions will be made for expected losses as soon as they are foreseen and deducted from the cost price.
Turnover consists of the cost price of the work done during the period under review, plus the result
determined in accordance with the system described here. This procedure is usual in the contracting
world and is the method preferred by the Dutch Guidelines for annual reporting. This system is also
required by the International Financial Reporting Standards (IFRS), which the company will meet with
effect from the 2005 financial year. The change has been implemented through the profit and loss
account. The result for the financial year has been determined using the new system. The one-off
cumulative effect for the position as at 1 January 2003 has been entered under other operating
income in the operating result. The effect on the comparative figures for 2002 has been explained in
the explanatory notes.
Change in estimation principles
The settlement of a number of tax assessments that have been outstanding for some time now and of
associated tax disputes have made the tax position of the company clearer. Consequently, on the basis
of the prevailing reporting standards, deferred tax claims have been included in the balance sheet for
the 2003 financial year.
These deferred tax claims, which are in part offset by related deferred tax liabilities, consist
primarily of:
• a higher tax valuation of equipment;
• provisions not formed for tax purposes;
• timing differences relating to costs and revenues;
• future recapture foreign branch losses.
The balance of the deferred tax claims has been entered at nominal value. Given the fact that the timing
of the settlement of these deferred tax claims coincides to a large extent with the timing of the settle-
ment of the tax liabilities included in the long-term liabilities, the two amounts have been netted.
Principles of f inancial report ing
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Financial Statements 2003
57 Roya l Boska l i s Wes tm ins te r nv575757
Consolidation
The consolidated statements include Royal Boskalis Westminster nv and its group companies. Group
companies are those companies in which Royal Boskalis Westminster nv, either directly or indirectly,
solely or on the basis of an agreement with other shareholders, holds more than 50% of the voting
shares and has a decisive management influence. The statements for these group companies are
fully consolidated.
The key consolidated group companies are listed in note 1. of the explanatory notes to the consolidated
balance sheet and profit and loss account. Joint ventures are consolidated in proportion to the interest
held therein, in so far as the activities are identical or complementary to those of the group. Jointly
controlled entities are also consolidated in proportion to the interest held therein.
Goodwill
The difference between acquisition cost and net asset value, based on the accounting principles of
Royal Boskalis Westminster nv, arising from the acquisition of group companies or from investments in
associated companies, is capitalized and consistently amortized through the profit and loss account
during the estimated economic lifetime.
Foreign currencies
All assets and liabilities of foreign group companies are translated at the rates of exchange prevailing at
the end of the year, with the exception of tangible fixed assets used internationally, which are translated
at the rates of exchange prevailing at the time of acquisition of the assets concerned. The results of
foreign group companies are translated at the average rates of exchange prevailing during the year,
with the exception of the amounts charged for depreciation, which are translated at the same rates of
exchange as the assets concerned.
Currency translation differences resulting from the application of these principles are directly credited
or charged to other reserves.
In principle, contracts for projects which are denominated in foreign currencies are fully hedged by
means of financial derivatives, usually forward exchange contracts. Valuation of these contracts and
the relevant assets and liabilities is based on the prevailing forward rate. Financial derivatives are not
used when there are no real underlying transactions.
Other assets and liabilities denominated in foreign currencies are translated at the rates of exchange
prevailing at the end of the year. Exchange differences relating to transactions in foreign currencies are
included in other operating income.
-00148_JV2_CijfersENG 07-04-2004 10:04 Pagina 57
58
Financial Statements 2003
Annua l Repo r t 20035858
Tangible fixed assets
The book value of tangible fixed assets is calculated by deducting the accumulated depreciation charges
from the cost of acquisition. Interest paid during construction is not capitalized. Investment grants
received as subsidies for the building of sea-going vessels are deducted from the acquisition cost.
Large equipment commissioned since 1996 is depreciated on the basis of acquisition cost. The depre-
ciation charges are based upon the expected economic lifetime of the assets. For the fleet, life expect-
ancy is in general 15 - 18 years. For other construction equipment, it is an average of 5 years. Large
equipment commissioned before 1996 is depreciated using the declining balance method on the basis
of a fixed percentage of the book value, taking into account an estimated residual value. Investments in
floating and other contract-related construction equipment are depreciated over a shorter period of time.
The remaining assets are depreciated on the basis of a fixed percentage of the acquisition cost, based
upon a period of use of 10 - 50 years for buildings, and 4 years for furniture, fixtures and fittings, etc.
Land is not depreciated, with the exception of land for sand production, which is depreciated according
to the tonnage principle.
The long-term operational lease agreement for the trailing suction hopper dredger Stuyvesant concluded
by a foreign group company has not been capitalized due to the fact that Royal Boskalis Westminster
nv is not the economic owner of this vessel. The financial commitments relating thereto are accounted
for under Commitments and contingent liabilities.
Financial fixed assets
The valuation of associated companies is based upon the Royal Boskalis Westminster nv share in the
net asset value, in accordance with the balance sheets prepared by the companies concerned, less such
provisions as are deemed necessary. Profits made in countries with weak currencies and/or transfer
restrictions are only accounted for when conversion into hard currency has been secured. The valuation
of other financial fixed assets is based upon nominal value or acquisition cost, less such provisions as
are deemed necessary.
Inventory
The inventory consists mainly of consumables and spare parts and is valued at average cost less such
provisions as are considered necessary.
Work in progress
Work in progress is valued at the cost price of work done, plus a part of the expected results on completion
of the work in proportion to the progress made. Provisions are made for expected losses on work in pro-
gress as soon as they are foreseen and deducted from the cost price. The cost price includes direct project
costs, consisting of direct payroll costs, materials, costs of subcontracted work, other direct costs and
rates for equipment used. The progress of a project is determined on the basis of the cost of the work
done in relation to the expected cost price of the project as a whole. The profit will not be taken on work
in progress until a reliable estimate can be made of the result on completion of the work. Progress pay-
ments invoiced and advance payments received are deducted from work in progress.
-00148_JV2_CijfersENG 07-04-2004 10:04 Pagina 58
Financial Statements 2003
59 Roya l Boska l i s Wes tm ins te r nv59
Provision
Provisions are made for commitments of uncertain size or uncertain timing which relate to the activities
of the company. The provision for deferred taxation results mainly from temporary differences between
the commercial and taxable results and is calculated at nominal value by using the applicable rate of
corporate income tax.
The provision for repairs is made for regular and overdue maintenance of plant and equipment, in order
to achieve a fair allocation of the repair costs over the years.
The provision for pensions relates to pension liabilities for past service costs not yet paid of a foreign
group company and has been discounted at the rate of 6%.
Net turnover
Net turnover consists of the cost of the work done during the period under review, plus a part of the
expected results on completion of the work in proportion to the progress made during that period, and
including and/or deducting the provisions formed, used or released during the period under review for
expected losses.
Operating result
The operating result consists of:
• actual results from the work done during the period of review in proportion to progress made;
• additions to, use or release of provisions for expected losses on work in progress;
• deferred profits from contracts completed in earlier years, realized during the reporting year;
• operational results of equipment, determined as the difference between the hire charges to projects
and the operational costs of equipment, including depreciation;
• general overhead costs;
• all other income and expenditure resulting from normal operations, including book profits on the sale
of tangible fixed assets and currency profits and losses.
Result from associated companies
This is the share of Royal Boskalis Westminster nv in the results after tax of associated companies.
Taxation
Corporate income tax is accounted for on the basis of the results reported, taking into consideration
the applicable fiscal rules and rates. Temporary differences are valued as deferred tax claims and/or
commitments, in so far as it is probable that tax profits will be available for settlement in the future.
The carrying forward of tax losses is not generally taken into account given the project-based approach
to activities in most countries.
Cash flow
The consolidated cash flow statement has been drawn up using the indirect method. Cash is defined
as bank deposits, cash and short-term bank debts.
-00148_JV2_CijfersENG 07-04-2004 10:04 Pagina 59
60
Financial Statements 2003
Annua l Repo r t 20036060
Fixed assets
Tangible fixed assets (2) 607,756 544,700
Financial fixed assets
• associated companies (3) 52,051 56,271
• other financial fixed assets (4) 995 4,152
53,046 60,423
Total fixed assets 660,802 605,123
Current assets
Inventory 30,842 25,769
Work in progress (5) ( 112,329 ) ( 126,938 )
Debtors and prepayments (6) 331,682 380,771
Bank deposits and cash (7) 161,159 108,574
Total current assets 411,354 388,176
Current liabilities
Creditors and accruals (8) 474,115 446,521
Repayments and bank debts (9) 8,823 8,807
Total current liabilities 482,938 455,328
Net current assets ( 71,584 ) ( 67,152 )
Total assets less current liabilities 589,218 537,971
Long-term loans (10) 9,028 8,707
Long-term liabilities (11) 61,345 40,571
Provisions (12) 63,604 75,703
Shareholders’ equity (13) 455,241 412,990
589,218 537,971
(1) The figures in brackets outside the columns refer to the explanatory notes (see pages 63 - 73).
Consol idated balance sheet before prof i t appropriat ion(1)
( in € 1,000 ) 31 December 2003 31 December 2002
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Financial Statements 2003
61 Roya l Boska l i s Wes tm ins te r nv61
Net turnover (16) 1,045,523 1,123,510
Movement in work in progress – ( 88,704 )
Other operating income (17) 41,356 983
Total operating income 1,086,879 1,035,789
External costs (18) ( 745,756 ) ( 703,746 )
Wages and salaries (19) ( 144,586 ) ( 139,069 )
Social security costs (20) ( 47,640 ) ( 26,814 )
Depreciation of tangible fixed assets (2) ( 79,296 ) ( 66,649 )
Total operating costs ( 1,017,278 ) ( 936,278 )
Operating result 69,601 99,511
Interest received 3,019 4,497
Interest paid ( 3,016 ) ( 3,778 )
Result from associated companies (3) 8,337 9,758
Net financial income 8,340 10,477
Result before taxation 77,941 109,988
Taxation (21) ( 7,087 ) ( 27,892 )
Net result 70,854 82,096
Profit per share (€ 1.00) *) 2.66 3.16
Profit per share, fully diluted (€ 1.00) **) 2.66 3.16
(1) The figures in brackets outside the columns refer to the explanatory notes (see pages 63 - 73).
*) Net profit for the financial year divided by the weighted average number of outstanding ordinary shares.
**) Profit for the financial year divided by the weighted average number of outstanding ordinary shares,
adjusted for all potential ordinary shares which will cause dilution effects.
Conso l ida ted p ro f i t and loss account(1)
( in € 1,000 ) 2003 2002
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Financial Statements 2003
Annua l Repo r t 20036262
Cash flow from operations
Net result 70,854 82,096
Depreciation 79,296 66,649
Cash flow 150,150 148,745
(Increase) / decrease working capital 59,377 ( 12,360 )
(Increase) / decrease financial fixed assets 124 ( 6,653 )
(Decrease) / increase long-term liabilities 18,829 ( 10,649 )
Decrease provisions ( 8,667 ) ( 15,119 )
Direct movements in reserves and other movements 495 ( 54 )
Net cash flow from operations 220,308 103,910
Investments
Net investments in tangible fixed assets ( 148,257 ) ( 140,089 )
(In) / out of consolidation – ( 1,774 )
Acquisitions and disposals of group companies
and associated companies (7,807 ) 1,231
Total investments ( 156,064 ) ( 140,632 )
Financing
Decrease long-term loans + repayments on long-term loans ( 3,757 ) ( 2,866 )
Payment of dividend previous financial year ( 9,810 ) ( 30,960 )
Total financing ( 13,567 ) ( 33,826 )
Net cash flow from investments and financing ( 169,631 ) ( 174,458 )
(Decrease) / increase in bank deposits and
cash / other short-term bank debts 50,677 ( 70,548 )
Bank deposits and cash / other short-term bank debts
As at 1 January 103,047 173,595
As at 31 December 153,724 103,047
(Decrease) / increase in bank deposits and
cash / other short-term bank debts 50,677 ( 70,548 )
Conso l ida ted cash f low s ta tement
( in € 1,000 ) 2003 2002
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Financial Statements 2003
63 Roya l Boska l i s Wes tm ins te r nv63
1. General
Unless stated otherwise, all amounts in these explanatory notes are in thousands of euros. The consol-
idated balance sheet was drawn up before profit appropriation. The most important group companies
and proportionally consolidated participating interests included in the consolidation of Royal Boskalis
Westminster nv are:
The Netherlands
Aannemersbedrijf M. de Haan bv,
Drachtstercompagnie
Aannemingsmaatschappij Markus bv,
Halfweg
Archirodon Group NV, Dordrecht (40%)
Baggermaatschappij Boskalis bv,
Papendrecht
Baggermaatschappij Holland bv,
Papendrecht
Boskalis Cortlever Holding bv,
Amsterdam (51%) (new)
Boskalis Dolman bv, Dordrecht
Boskalis International bv, Sliedrecht
Boskalis Markus bv, Papendrecht
Boskalis Offshore bv, Papendrecht
Boskalis bv, Rotterdam
Boskalis Westminster Dredging bv,
Papendrecht
Boskalis Westminster International bv,
Papendrecht
Boskalis Finance bv, Papendrecht
BW Soco bv, Sliedrecht
A.H. Breijs & Zonen Onroerend
Goed bv, Rotterdam
A.H. Breijs & Zonen bv, Rotterdam
J. van Vliet bv, Wormerveer
Hydronamic bv, Sliedrecht
The complete list of consolidated group companies, joint ventures and associated companies has been filed at the Chamber of
Commerce in Rotterdam. Section 403, Part 9, Book 2 of the Netherlands Civil Code is applicable to a number of group companies
included in this list.
Other areas
Boskalis Westminster Ltd, Fareham
(United Kingdom)
Rock Fall Company Ltd, Ayrshire (United Kingdom)
Westminster Dredging Company Ltd, Fareham
(United Kingdom)
Irish Dredging Company Ltd, Cork (Ireland)
Boskalis Sweden AB, Gothenburg (Sweden)
Atlantique Dragage SARL, Nanterre (France)
Boskalis Offshore A/S, Randaberg (Norway)
Terramare Oy, Helsinki (Finland)
Sociedad Española de Dragados SA, Madrid (Spain)
Dragapor Dragagens de Portugal S.A., Alcochete
(Portugal)
Bagger- und Bauunternehmung Delta GmbH, Bremen
(Germany)
Heinrich Hirdes GmbH, Hamburg (Germany)
Heinrich Hirdes Wasser- und Tiefbau GmbH, Duisburg
(Germany)
Boskalis Westminster Middle East Ltd, Nicosia (Cyprus)
Beaver Dredging Company Ltd, Toronto (Canada)
Boskalis Westminster Inc., Wilmington
(United States of America)
Bean Stuyvesant LLC, Delaware
(United States of America) (50%)
Coastal and Inland Marine Services Inc., Ancon (Panama)
Dragamex SA de CV, Coatzacoalcos (Mexico) (50%)
Boscampo, Douala (Cameroon)
Boskalis Taiwan Ltd, Taipei (Taiwan)
Boskalis International (S.) Pte Ltd (Singapore)
Riovia SA, Montevideo (Uruguay)
Zinkcon Marine Singapore Pte Ltd (Singapore)
Explanatory notes to the consolidated balance sheet and profit and loss account
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Financial Statements 2003
Annua l Repo r t 20036464
2. Tangible fixed assetsLand and Floating Other Fixed assets Tangible Total
buildings and other fixed not engaged fixed assets
construction assets in normal under
equipment operations construction
Balance as at 1 January 2003
Cost 56,552 1,048,523 33,830 452 101,305 1,240,662
Depreciation ( 22,788 ) ( 651,258 ) ( 21,745 ) ( 171 ) – ( 695,962 )
Net book value 33,764 397,265 12,085 281 101,305 544,700
Movements
Additions 1,564 22,139 12,463 – 113,081 149,247
In / (out of) consolidation ( 57 ) 4,966 ( 134 ) – – 4,775
Taken into service 2,399 92,061 ( 12 ) – ( 94,448 ) –
Disposals at net book value ( 17 ) ( 4,959 ) ( 1,778 ) – 82 ( 6,672 )
Depreciation ( 2,871 ) ( 70,905 ) ( 5,505 ) ( 17 ) 2 ( 79,296 )
Currency translation differences
and other movements ( 908 ) ( 2,673 ) ( 952 ) ( 30 ) ( 435 ) ( 4,998 )
Total movements in 2003 110 40,629 4,082 ( 47 ) 18,282 63,056
Balance as at 31 December 2003
Cost 61,050 1,094,917 38,494 392 119,587 1,314,440
Depreciation ( 27,176 ) ( 657,023 ) ( 22,327 ) ( 158 ) – ( 706,684 )
Net book value 33,874 437,894 16,167 234 119,587 607,756
Depreciation includes an additional item for a number of older units as a result of fleet rationalization
(€ 7.1 million). The current value of floating and other construction equipment considerably exceeds
the book value, which is based on historical cost and related depreciation. For land and buildings it is
reasonable to assume that the current value exceeds the net book value to some extent. An amount
of € 1.0 million, representing land used for sand production, has been accounted for under land and
buildings (2002: € 1.5 million).
3. Associated companies
The key associated companies are:
Bean Meridian Holding LLC, Delaware, United States of America 25%
Bean Excavation LLC, Delaware, United States of America 25%
Bean Meridian LLC, Delaware, United States of America 25%
Lamnalco Ltd, Nicosia, Cyprus 50%
RW Aggregates Ltd, Dorking, United Kingdom 50%
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Financial Statements 2003
65 Roya l Boska l i s Wes tm ins te r nv65
Movements during 2003 were as follows:
Book value as at 1 January 2003 56,271
Share of results 8,337
Dividends received ( 2,239 )
Investments / divestments ( 2,361 )
Currency translation differences and other movements ( 7,957 )
Book value as at 31 December 2003 52,051
4. Other financial fixed assets
Movements during 2003 were as follows:
Book value as at 1 January 2003 4,152
Other movements ( 3,157 )
Book value as at 31 December 2003 995
5. Work in progress 2003 2002
Work in progress 1,048,091 894,607
Progress payments ( 1,160,420 ) ( 1,021,545 )
( 112,329 ) ( 126,938 )
Work in progress includes contracts of which the value of work done exceeds
customer progress payments. At year-end 2003, the total amounts of the value
of work done and the customer progress payments of these contracts were
€ 400.8 million and € 356.6 million respectively (2002: € 427.2 million and
€ 374.0 million respectively).
As a result of the change in the system for profit-taking on work in progress,
the value of the work in progress was increased with effect from 1 January
2003 by the accumulated profit on work in progress before taxation in
proportion to progress.
6. Debtors and prepayments 2003 2002
Trade debtors 183,770 196,003
Amounts due from associated companies 14,955 22,077
Other debtors and prepayments 132,957 162,691
331,682 380,771
Included in Other debtors and prepayments as at the end of 2003 are
receivables amounting to € 2.1 million which do not fall due within one
year (2002: € 4.7 million).
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Financial Statements 2003
Annua l Repo r t 20036666
7. Bank deposits and cash
This includes € 60.6 million (2002: € 46.9 million) of joint-venture funds.
In addition, at year-end 2003, € 6.3 million was in restricted cash (2002:
€ 6.2 million). The remaining funds at the end of 2003 are at free disposal.
In order to hedge exchange and interest rate risks related to lease obligations
for the trailing suction hopper dredger W.D. Fairway, a currency swap has been
concluded and two deposits are held.
The commitments related to this swap have been fully paid in advance. The dis-
counted value of these lease obligations, amounting to € 67.9 million as per
31 December 2003 (2002: € 69.0 million), is offset against the value of the cur-
rency swap and the related deposits, which also amounts to € 67.9 million.
8. Creditors and accruals 2003 2002
Trade creditors 94,700 85,544
Amounts due to associated companies 4,356 8,426
Corporate taxes 28,736 55,334
Other taxes and social security payables 40,218 29,422
Pensions 6,000 –
Other creditors and accruals 300,105 267,795
474,115 446,521
9. Repayments and bank debts 2003 2002
Repayments on long-term loans 1,388 3,280
Other debts 7,435 5,527
8,823 8,807
With respect to an amount of € 0.3 million in other bank loans, securities have
been provided by means of the assignment of debts, a mortgage on equipment
and silent pledge for the same amount.
10. Long-term loans
As at 31 December 2003, the average interest rate for the long-term loans was
2.7%. The average remaining maturity period of these loans is approximately
2.5 years. Long-term loans with a remaining term in excess of five years are
approximately nil. The repayments due in 2004 are accounted for under repay-
ments and bank debts. By means of a mortgage on equipment and silent
pledge, securities have been provided in respect of € 0.5 million of the long-
term loans outstanding as at year-end 2003.
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Financial Statements 2003
11. Long-term liabilities 2003 2002
Taxes 19,134 16,142
Pensions 12,000 –
Other creditors and accruals 30,211 24,429
61,345 40,571
Long-term taxes payable consist of taxes that are due after one year but expected
to be due within five years. Pension liabilities elapse within five years. No interest
is due on creditors and accruals and payment is expected to be due after
five years.
12. Provisions
Deferred Maintenance Pensions Other Total
taxation and repair
Balance as at 1 January 2003 22,811 45,837 3,810 3,245 75,703
Additions 5,292 71,572 90 22 76,976
Withdrawals – ( 80,333 ) – – ( 80,333 )
Released / Change in
estimation principles ( 4,580 ) – ( 96 ) ( 272 ) ( 4,948 )
Currency translation
differences ( 1,075 ) ( 2,430 ) – ( 289 ) ( 3,794 )
Balance as at
31 December 2003 22,448 34,646 3,804 2,706 63,604
The provision for deferred taxation mainly refers to temporary differences
between the fiscal and commercial valuation of equipment lasting more than
one year. The provision for pensions relates to pension liabilities involving
employees and former employees of a foreign group company. These liabilities
are not reinsured except for the widow’s and orphan’s pensions. Included under
Other provisions are provisions for warranties, current legal proceedings and
submitted claims. The provisions are predominantly long-term in nature, with
the exception of the provision for maintenance and repair, of which an
estimated € 25 million is short-term in nature.
13. Shareholders’ equity
Reference is made to notes 3. - 5. of the explanatory notes to the company
balance sheet and profit and loss account.
67 Roya l Boska l i s Wes tm ins te r nv
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Financial Statements 2003
14. Financial instruments
General. Pursuant to a financial policy agreed by the Board of Management, Royal Boskalis Westminster
nv and its group companies use several financial instruments in the ordinary course of business. These
are financial instruments that are accounted for under assets and liabilities as well as instruments not
accounted for on the balance sheet. A large proportion of projects are contracted in foreign currencies.
In principle, positions in foreign currency are fully hedged, usually by means of forward contracts. Financial
derivatives (forward contracts, options etc.) are not used unless there is an underlying real transaction.
In respect of controlling interest risks, the premise is that, in principle, interest rates for loans payable
are fixed for the entire maturity period. This is achieved by contracting loans that carry a fixed interest
rate or by using derivatives such as interest rate swaps.
Given the nature of the activities and the corresponding strongly fluctuating cash flows, the available
cash funds are usually not tied up for periods longer than one year.
Royal Boskalis Westminster nv has a strict acceptance and hedging policy for political and payment
risks. In principle, payment risks are hedged by means of bank guarantees, insurance, etc., except in
the case of credit-worthy, first-class debtors. These procedures and the geographical diversification of
the group companies’ activities reduce the risk carried by Royal Boskalis Westminster nv with regard to
credit concentration and market risks.
Financial instruments accounted for on the balance sheet. Financial instruments accounted for under
assets and liabilities are financial fixed assets, cash and accounts receivable, as well as short- and long-
term liabilities. The estimated real value of these financial instruments resembles the nominal value.
Off-balance-sheet financial instruments. The real value of the off-balance-sheet financial instruments as at
31 December 2003 reflects the unrealized result at revaluation of the contracts against calculated forward
exchange rates. As at 31 December 2003, the unrealized positive result amounts to € 28 million (2002:
€ 39 million positive). These unrealized results have been taken into account in the determination of the
book value of the underlying balance sheet items or the estimate of the results for ongoing projects and
acquired orders. The nominal value is € 406 million (2002: € 362 million).
Annua l Repo r t 2003
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Financial Statements 2003
69 Roya l Boska l i s Wes tm ins te r nv696969
15. Commitments and contingent liabilities
The guarantee commitments as at 31 December 2003 amount to € 501 million
and can be specified as follows (x € 1 million):
Guarantees provided by third parties on behalf of: 2003 2002
• associated companies 25 30
• contracts and joint ventures 441 475
• lease obligations and other financial obligations 35 46
501 551
For the above guarantees outstanding at the end of 2003, counter-guarantees
have been provided to financial institutions for approximately € 501 million
(2002: approximately € 551 million). Two key group companies are jointly and
severally liable in respect of several guarantees. In respect of credit facilities, it
has been agreed that no further securities on existing tangible fixed assets will
be provided.
Group companies are jointly and severally liable for the non-consolidated part
of the liabilities of their joint ventures, in total € 275 million. In addition, certain
recourse obligations exist in respect of project financiers. Where deemed nec-
essary, provisions have been made. In some countries, local group companies
have concluded long-term lease agreements on which the annual instalment
payments total approximately € 5 million. In respect of some matters, legal
proceedings and investigations have been instituted against Royal Boskalis
Westminster nv or group companies. Where deemed necessary, provisions
have been made. Investment commitments as at year-end 2003 amounted to
approximately € 75 million.
16. Net turnover
For the net turnover in respect of contracts completed and specified per geo-
graphical region, reference is made to note 22. of these explanatory notes.
The turnover in respect of work done, defined as the total value of work done for
third parties in 2003, amounted to € 1,046 million (2002: € 1,035 million).
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Financial Statements 2003
Annua l Repo r t 20037070
17. Other operating income
Other operating income includes, in addition to currency results and book results,
the one-off cumulative effect of the change in the revenue recognition for work
in progress. The book result consists mainly of the book profit pursuant to the
insurance payment for the sunken cutter suction dredger Oranje (€ 13.3 million).
The cumulative effect of the change to the system, consisting of the accumulated
profits on work in progress in proportion to progress made in previous years,
amounts to € 26.7 million (the balance of the net turnover of € 301.2 million
and external costs of € 274.5 million). The inclusion of this item and associated
tax burden is, together with the pro forma results for the financial year 2002,
shown on the basis of the new system below in so far as there have been
changes.
One-off cumulative Pro forma
effect of change to system results
1 January 2003 2002
Net turnover – 1,037,845
Movement in work in progress – –
Other operating income 26,694 983
External costs – ( 710,028 )
Operating result 26,694 96,268
Taxation 7,235 ( 26,882 )
Net result 19,459 79,863
18. External costs
This includes costs related to the turnover and general operations, either paid
or payable to outside parties. Furthermore, this item includes the balance of
additions to, and withdrawals from, the provisions, excluding the provision for
deferred taxation and the provision for pensions.
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Financial Statements 2003
71 Roya l Boska l i s Wes tm ins te r nv71717171
19. Wages and salaries
The emoluments for directors and members of the Supervisory Board of Royal Boskalis Westminister nv
for 2003 were as follows:Periodical Payments Profit share and Total 2002
payments due bonus payment
Members of the Board of Management
R. van Gelder 377 82 166 625 666
P.A.M. Berdowski 322 55 759 1,136 534
K.G. van Nes 266 47 104 417 450
A.H.A. Hoevenaars (from 1.7.2003 onwards) 149 27 – 176 –
1,114 211 1,029 2,354 1,650
Members of the Supervisory Board
S.D. de Bree 25 – – 25 25
J. Aalberts 18 – – 18 18
M.W. Dekker 18 – – 18 18
M. van der Vorm 18 – – 18 18
A.A. Westerlaken 18 – – 18 18
97 – – 97 97
Total 1,211 211 1,029 2,451 1,747
The bonuses were given in part for the achievement of certain targets during the 2002 financial year.
These targets have been achieved. In addition, one of the members of the Board of Management, Mr.
P.A.M. Berdowski, received an additional payment of € 633,000. This is linked to an agreement made
between Mr. Berdowski and the Supervisory Board upon his appointment in 1997 with respect to his
long-term incentive. He has, for good reasons, not participated in the option scheme currently in place.
No loans or guarantees have been provided to, or on behalf of, the managing and supervisory directors.
At the end of 2003, the group companies included in the consolidation had a total of 3,186 employees
(2002: 3,285), of whom 1,680 (2002: 1,804) were paid on a weekly basis. The average number of
employees in 2003 was 3,202 (2002: 3,192).
20. Social security costs
These include an amount of € 31.1 million for pension costs (2002: € 11.4 million).
This figure also includes an additional charge for pensions of € 18 million resulting from a new financing
agreement entered into in 2003 with the Boskalis Westminster Nederland Pension Fund.
In that agreement, the company has undertaken to make an additional payment in three-year instalments
as part of the Recovery plan for the improvement of the financial position of the Pension Fund drawn up
in consultation with the Pensions and Insurance Supervisory Board.
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Financial Statements 2003
21. Taxation
The operational activities of Royal Boskalis Westminster nv are subject to various
tax regimes with tax rates varying from 10% to 46%. These different tax rates, in
connection with fiscal facilities in various countries, results not subject to taxation
and non-deductible costs, lead to an effective tax rate in the reporting period of
9.1% (2002: 25.4%).
The average effective tax rate is calculated by dividing the taxation by the result
before taxation shown in the consolidated profit and loss account. The reconciliation
between the weighted average tax rate and the effective tax rate is as follows
(in percentages):
2003 2002
Weighted average tax rate 32.0 28.1
Tax effect of:
Utilization of non-capitalized losses carried forward ( 1.8 ) ( 4.9 )
Non-capitalized future losses carried forward 10.1 3.9
Results not subject to taxation and non-deductible costs ( 6.7 ) ( 5.2 )
Non-deductible and exceptional regimes ( 1.8 ) 3.5
Change in estimation principles ( 22.7 ) –
Effective tax rate 9.1 25.4
In addition to taxes on profits from operating activities, taxation includes the
effect of the change in estimation principles made during the financial year with
respect to deferred taxation claims. This effect amounts to € 17.7 million.
22. Segmentation
Royal Boskalis Westminster nv is a dredging contractor with international
operations and a strong focus. The necessary assets are generally not region-
specific and can be deployed worldwide. Given the nature of the activities, each
individual project at Royal Boskalis Westminster nv has its own risk and return
profile. A correct picture can only be obtained by evaluating the activities jointly
as a complete portfolio. To understand the risk and return profile of Royal
Boskalis Westminster nv, it is therefore less relevant to provide detailed infor-
mation on the various activities and geographical regions. Although not decisive
for the risk and return profile, the organizational and management structure of
the corporation and the internal system of financial reporting to the Board of
Management are mainly based on geographical regions. These regions are
therefore used as a secondary segmentation basis.
Annua l Repo r t 2003
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Financial Statements 2003
73 Roya l Boska l i s Wes tm ins te r nv
The consolidated information per geographical segment can be specified
as follows (2003: turnover work done, 2002: turnover completed contracts)
(in € 1 million):
2003 2002
Net Total Total Net Total Total
turnover book value investments turnover book value investments
work tangible tangible completed tangible tangible
done fixed assets* fixed assets* contracts fixed assets* fixed assets*
The Netherlands 230 311
Rest of Europe 219 174
Australia / Asia 223 209
Middle East 113 162
Africa 106 114
North and South America 155 154
1,046 608 149 1,124 545 152
*) The tangible fixed assets of Royal Boskalis Westminster nv mainly consist of equipment used
globally on a project basis. As a consequence this equipment could not be allocated to the individual
geographical segments.
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Financial Statements 2003
Annua l Repo r t 20037474747474
Fixed assets
Investment in group company (2) 458,602 414,705
Total fixed assets 458,602 414,705
Current assets
Amounts due from group companies – –
Total current assets – –
Current liabilities
Amounts due to group companies 3,361 1,715
Total current liabilities 3,361 1,715
Net current assets ( 3,361 ) ( 1,715 )
Total assets less current liabilities 455,241 412,990
Shareholders’ equity
Issued and fully paid share capital (3) 65,415 63,520
Share premium reserve (4) 14,635 17,650
Other reserves (5) 304,337 249,724
Non-distributed profit 70,854 82,096
455,241 412,990
(1) The figures in brackets outside the columns refer to the explanatory notes (see pages 76 - 78).
Company ba lance sheet before prof i t appropr ia t ion(1)
( in € 1,000 ) 31 December 2003 31 December 2002
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Financial Statements 2003
75 Roya l Boska l i s Wes tm ins te r nv75757575
Company result ( 281 ) ( 1,512 )
Result of group company (2) 71,135 83,608
Net result 70,854 82,096
(1) The figures in brackets outside the columns refer to the explanatory notes (see pages 76 - 78).
Company pro f i t and loss account(1)
( in € 1,000 ) 2003 2002
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Financial Statements 2003
Annua l Repo r t 20037676767676
1. General
Unless stated otherwise, all amounts in these explanatory notes are stated in
thousands of euros. The company balance sheet was drawn up before profit
appropriation. The company profit and loss account is limited in accordance
with Section 402, Part 9, Book 2 of the Netherlands Civil Code.
2. Investment in group company
This refers to the 100% investment in Boskalis Westminster Dredging bv,
Papendrecht.
Movements during 2003 were as follows:
Book value as at 1 January 2003 414,705
Dividend received 2002 ( 16,000 )
Changes in ownership of own ordinary shares 8,050
Currency translation differences ( 19,288 )
Result of group company 71,135
Book value as at 31 December 2003 458,602
3. Issued and fully paid share capital
The authorized share capital of € 240 million is divided into 50,000,000 ordinary
shares and 50,000,000 cumulative protective preference shares of € 2.40 par
value each.
Movements of the issued and fully paid share capital were as follows:
2003 2002
Balance as at 1 January 63,520 63,520
Stock dividend 1,895 –
Balance as at 31 December 65,415 63,520
Movements in the number of ordinary shares
owned by the company were as follows: 2003 2002
Balance as at 1 January 496,744 550,244
Exercised option rights ( 30,000 ) ( 53,500 )
Stock dividend ( 466,744 ) –
Balance as at 31 December – 496,744
The issued and fully paid share capital as at 31 December 2003 consists of
27,256,249 ordinary shares of € 2.40 par value each and consequently amounts
to € 65.4 million. In 1997 and 1998, option rights were granted to twenty senior
managers of Royal Boskalis Westminster nv and its group companies.
The remaining rights were exercised in 2003.
Furthermore a stock dividend was distributed for 2002 and charged to the share
premium reserve. For that purpose, 789,396 new shares were issued in addition
to 466,744 ordinary shares owned by the company. Of the issued and fully paid
share capital as at 31 December 2003, no ordinary shares were owned by Royal
Boskalis Westminster nv.
Explanatory notes to the company balance sheet and profit and loss account
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Financial Statements 2003
77 Roya l Boska l i s Wes tm ins te r nv77777777
The number of outstanding options as at 31 December 2003, with one option
entitling the holder to one ordinary share, was as follows:
Year Outstanding Exercised Outstanding Exercise Maturity
granted options as at options options as at price until
31 December 31 December
2002 2003
Directors
R. van Gelder 1998 20,000 ( 20,000 ) – € 15.70 8 April 2003
20,000 ( 20,000 ) –
Staff 1998 10,000 ( 10,000 ) – € 15.70 8 April 2003
10,000 ( 10,000 ) –
Total 1998 30,000 ( 30,000 ) – € 15.70 8 April 2003
30,000 ( 30,000 ) –
The number of shares owned by directors as at 31 December 2003 is as follows:
R. van Gelder 37,500
37,500
4. Share premium reserve
Movements were as follows: 2003 2002
Balance as at 1 January 17,650 17,650
Stock dividend ( 3,015 ) –
Balance as at 31 December 14,635 17,650
The entire share premium reserve is distributable free of tax.
5. Other reserves
Movements were as follows: 2003 2002
Balance as at 1 January 249,724 217,081
Profit appropriation for previous reporting year 73,406 46,758
Issue of formerly purchased own ordinary shares
for purposes of exercised options 495 893
Currency translation differences and other movements ( 19,288 ) ( 15,008 )
Balance as at 31 December 304,337 249,724
A legal reserve for non-distributed profits of group and/or associated
companies was not required at the end of 2003.
-00148_JV2_CijfersENG 07-04-2004 10:04 Pagina 77
78
Financial Statements 2003
Annua l Repo r t 20037878787878
6. Commitments and contingent liabilities
Royal Boskalis Westminster nv heads the fiscal entity which includes almost all
Dutch 100% subsidiaries.
The company is therefore liable for the tax obligations of the fiscal entity as a whole.
The company has issued guarantees on behalf of contracts, joint ventures
and group companies. These amounted to € 3 million at the end of 2003
(2002: € 4 million).
Furthermore, the long-term operational lease commitments of a foreign group
company have been guaranteed for approximately € 5 million (2002: € 5 million)
per annum. In addition, certain recourse obligations exist in respect of project
financiers. Where deemed necessary, provisions have been made. In respect of
some matters, legal proceedings and investigations have been instituted against
Royal Boskalis Westminster nv or group companies. Where deemed necessary,
provisions have been made.
Papendrecht / Sliedrecht, 9 March 2004
Supervisory Board
S.D. de Bree
J. Aalberts
M.W. Dekker
M. van der Vorm
A.A. Westerlaken
Board of Management
R. van Gelder BA
Dr. P.A.M. Berdowski
K.G. van Nes
A.H.A. Hoevenaars
-00148_JV2_CijfersENG 07-04-2004 10:04 Pagina 78
79 Roya l Boska l i s Wes tm ins te r nv79797979
Other information
Provisions in the articles of association relating to profit appropriation
Article 27.
1. From the profits realized in any financial year, first of all, distributions will be made on cumulative protective
preference shares if possible, in the amount of the percentage specified below of the amount that has to
be paid up on these shares as from the beginning of the financial year to which the distribution is related.
The percentage referred to above equals the average Euribor interest rate determined for loans with a
term of one year – weighted in respect of the number of days to which this interest rate applied – during
the financial year to which the distribution is related, increased with four percentage points at most; this
increase will be determined every five years by the Board of Management subject to approval of the
Supervisory Board. If in the financial year in respect of which the above-mentioned distribution takes
place, the amount that has to be paid up on cumulative protective preference shares has been reduced
or, pursuant to a resolution for further payment, has been increased, the distribution shall be reduced or,
if possible, be increased with an amount equal to the above-mentioned percentage of the amount of the
reduction or the increase, as the case may be, calculated from the moment of the reduction or from the
moment further payment became compulsory. If in the course of any financial year cumulative protective
preference shares have been issued, the dividend on those cumulative protective preference shares shall be
reduced for that year in proportion to the day of issue, taking into account a part of a month as a full month.
2. If and in so far as the profit is not enough to realize the distribution referred to in paragraph 1, the deficit
shall be distributed from the reserves, subject to statutory provisions.
3. If in any financial year the profit referred to in paragraph 1 is not enough to realize the distributions
referred to above in this article, and furthermore no distribution or only a partial distribution from the
reserves as referred to in paragraph 2 is realized, so that the deficit is not or not completely distributed,
the provisions of this article and the provisions of the following paragraphs shall only apply in the next
financial years after the deficit has been made up for. After application of paragraphs 1, 2 and 3, no
further distribution shall take place on the cumulative protective preference shares.
4. Out of the remaining profit, an amount shall be reserved annually to the extent as shall be determined
by the combined meeting of the Board of Management and the Supervisory Board.
The remaining part of the profits after reservation, as referred to in the immediately preceding sentence,
is at the free disposal of the General Meeting of Shareholders and in case of distribution, the holders
of ordinary shares will be entitled thereto in proportion to their holding of ordinary shares.
Article 28.
1. Dividends shall be made available for payment within thirty days of their adoption, or any sooner as
the Board of Management may determine.
2. Unclaimed dividends will revert to the company after five years.
3. If the Board of Management, subject to the approval of the Supervisory Board, so decides, an interim
dividend shall be distributed, subject to the preference of the cumulative protective preference shares
and the provisions of article 2:105 of the Dutch Civil Code.
4. The General Meeting of Shareholders, on proposal of the Board of Management, may decide that dividends
will be distributed totally or partially in the form of shares in the company or depositary certificates thereof.
Other i n fo rmat ion
-00148_JV2_CijfersENG 07-04-2004 10:05 Pagina 79
80
Other information
Annua l Repo r t 20038080808080
5. The company may only realize distributions to the shareholder to the extent that its equity capital exceeds
the amount of the subscribed capital, increased with the reserves that have to be maintained by law.
6. A deficit may only be offset against reserves that have to be maintained by law to the extent that this
is permitted by the law.
Proposed profit appropriation
In accordance with Article 27 of the articles of association, € 28.3 million of the net result after tax
will be appropriated for a dividend payment of € 1.04 per share. It is proposed to add the balance
of € 42.6 million to other reserves.
Shareholders may opt to take this dividend as follows:
• entirely in stock; the dividend will be charged to the tax-exempt share premium reserve or, if so
desired, to other reserves, or
• entirely in cash; € 1.04 per share will be distributed, after the deduction of dividend tax.
The option period will commence on 19 May and end on 3 June next. The conversion ratio between the
stock dividend and cash dividend will be announced on 4 June. The conversion ratio will be determined
on the basis of the average of the closing rate of the Boskalis share on 27 May, 28 May, 1 June, 2 June
and 3 June 2004. The new shares will share in the profit for the 2004 financial year and subsequent years.
Auditor’s report
Introduction. We have audited the 2003 financial statements as included in this annual report of Royal
Boskalis Westminster nv, Sliedrecht. These financial statements are the responsibility of the company’s
management. Our responsibility is to express an opinion on these financial statements based on our
audit.
Scope. We have conducted our audit in accordance with auditing standards generally accepted in
The Netherlands. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
Opinion. In our opinion, the financial statements give a true and fair view of the financial position of
the company as of 31 December 2003 and of the result for the year then ended in accordance with
accounting principles generally accepted in The Netherlands and comply with the financial reporting
requirements included in Part 9, Book 2, of The Netherlands Civil Code.
Rotterdam, 9 March 2004
KPMG Accountants N.V.
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81 Roya l Boska l i s Wes tm ins te r nv81818181
Stichting Continuïteit KBW
Report
The Stichting Continuïteit KBW has, pursuant to the decision of the General Meeting of Shareholders
held on 9 May 2001, acquired the right to take cumulative protective preference shares in Royal Boskalis
Westminster nv for a nominal amount which shall be equal to the nominal amount of ordinary shares
outstanding at the time of the issue.
The option of issuing the cumulative protective preference shares has not yet been exercised.
The Board of the Stichting Continuïteit KBW consists of three members:
W.E. de Vin
J.A. Dekker
J.F. van Duijne
Declaration of Independence
The Board of the Stichting Continuïteit KBW and the Board of Management of Royal Boskalis
Westminster nv hereby declare that, in their joint opinion, the requirements referred to in appendix X
of the Listing and Issuing Rules of Euronext Amsterdam N.V. in respect of the independence of the
Stichting Continuïteit KBW have been fulfilled.
Papendrecht, March 2004
Royal Boskalis Westminster nv
Board of Management
Stichting Continuïteit KBW
The Board
St ich t ing Cont inu ï te i t KBW
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82 Annua l Repo r t 200382
Ten years Boskalis
82828282
(amounts x € 1 million, unless stated otherwise)
2003(2)
2002 2001 2000 1999 1998 1997 1996 1995 1994
Turnover (work done) 1,046 1,035 1,083 960 851 801 697 569 493 582
Turnover (completed contracts) – 1,124 1,081 882 784 782 637 520 499 594
Orderbook (work to be done) (3) 1,124 1,273 1,224 1,214 820 785 661 593 400 322
EBIT (4) 77.9 109.3 103.4 89.7 77.6 63.2 44.2 32.0 33.8 41.0
EBITDA (5) 157.2 175.9 165.6 144.9 131.6 108.7 92.0 74.6 79.8 88.8
Net result 70.9 82.1 77.7 67.2 57.5 47.1 37.3 28.2 32.2 40.1
Depreciation 79.3 66.6 62.2 55.2 54.0 45.5 47.8 42.6 46.0 47.8
Cash flow 150.2 148.7 139.9 122.4 111.5 92.6 85.1 70.8 78.2 87.9
Shareholders’ equity (3) 455.2 413.0 376.0 327.4 288.8 253.5 225.3 203.2 184.0 165.0
Average number of outstanding shares
(x 1,000) (9) 26,630 25,949 25,900 25,784 25,902 25,941 25,788 25,650 25,441 25,200
Number of outstanding shares (x 1,000) (10) 27,256 25,970 25,917 25,881 25,902 25,941 25,788 25,650 25,441 25,200
Personnel (number of persons) (3) 3,186 3,285 3,119 3,295 3,186 3,115 3,075 3,179 2,679 2,905
Ratios (percentages)
Operating result as % of the turnover 6.7 8.9 9.0 9.6 9.4 7.3 6.5 5.5 6.2 6.5
Return on capital employed (6) 16.0 20.3 21.4 21.0 20.8 18.3 15.2 12.6 15.7 21.9
Return on equity (7) 16.3 20.8 22.1 21.8 21.2 19.7 17.4 14.5 18.4 26.9
Solvency (3/8) 42.5 41.6 38.4 37.5 39.6 18.7 16.6 16.8 17.2 15.4
Figures per share (x € 1.00)
Profit (9/11) 2.66 3.16 3.00 2.61 2.22 1.82 1.45 1.10 1.27 1.59
Cash flow (9) 5.64 5.73 5.40 4.75 4.30 3.57 3.30 2.76 3.07 3.49
Shareholders’ equity (3/10) 16.70 15.90 14.51 12.65 11.15 9.77 8.74 7.92 7.23 6.55
Dividend 1.04 1.26 1.20 1.05 0.90 0.73 0.57 0.50 0.50 0.57
Share price range (x € 1.00)
(Depositary receipts of) ordinary shares 16.51 17.80 25.15 16.50 10.50 8.85 13.93 10.39 8.08 15.61
23.15 35.55 37.15 30.50 18.40 18.38 20.42 16.38 16.25 23.60
(1) Figures taken from the financial statements.
(2) Results on work in progress from 2003 onwards based on work done and up to and including 2002 based on completed contracts.
(3) As at 31 December.
(4) Consists of earnings before interest and taxation.
(5) Consists of earnings before interest, taxation, depreciation and amortization.
(6) Net result + interest paid on long-term loans as % of the average capital employed (shareholders' equity + long-term loans).
(7) Net result as % of the average shareholders’ equity.
(8) Shareholders’ equity as % of the balance sheet total (fixed assets + current assets).
(9) Weighted average number of outstanding shares less the number of shares owned by the company.
(10) Number of outstanding ordinary shares less the number of shares owned by the company.
(11) The dilution effect was practically nil up to the financial year 2003.
Ten years Boska l i s(1)
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Legal structure
Lega l s t ruc tu re
83 Roya l Boska l i s Wes tm ins te r nv
Royal Boskalis Westminster nv
Boskalis Westminster Dredging bv
A selection of operating companies and participating interests.
Aannemersbedrijf M. de Haan bv Boskalis Infra bv
Aannemingsmaatschappij Markus bv Cofra Int bv (51%)
A.H. Breijs & Zonen bv Hydronamic bv
Baggermaatschappij Holland bv J. van Vliet bv
Boskalis bv Zinkcon Dekker bv
Boskalis Dolman bv
Boskalis Zinkcon Ltd Westminster Dredging Company Ltd
PVW Int. Dredging & Harbour Works Ltd Westminster Gravels Ltd
Rock Fall Company Ltd Zanen Dredging & Contracting Co. Ltd
RW Aggregates Ltd (50%)
Archirodon Group nv (40%) Coastal and Inland Marine Services Inc.
Atlantique Dragage SARL Delta GmbH
BKW Dredging and Contracting Ltd Dragamex SA de CV (50%)
Boskalis Australia Pty Ltd Dragapor Dragagens de Portugal S.A.
Boskalis Dredging India Pvt Ltd Dravensa CA
Boskalis International bv Heinrich Hirdes GmbH
Boskalis International Egypt SAE Heinrich Hirdes Kampfmittelräumung GmbH
Boskalis International (M) Sdn Bhd Koon Zinkcon Pte Ltd (50%)
Boskalis International (S) Pte Ltd Nigerian Westminster Dredging & Marine Ltd (60%)
Boskalis International Uruguay S.A. Paragon International Engineers & Consultants bv
Boskalis Dragomar S.r.l. P.T. Boskalis International Indonesia
Boskalis Guyana Inc. Riovia SA
Boskalis Polska Sp. z o.o. Soc. Española de Dragados SA
Boskalis South Africa (Pty) Ltd Stuyvesant Dredging Company
Boskalis Sweden AB Bean Stuyvesant LLC (50%)
Boskalis Taiwan Ltd Terramare Oy
Boskalis Westminster Aannemers N.V. Zinkcon Contractors bv
Boskalis Westminster Cameroun SARL Zinkcon Dekker Wasserbau GmbH
Boskalis Westminster (Oman) LLC (49%) Zinkcon International bv
Boskalis Zinkcon bv Zinkcon Marine Singapore Pte Ltd
Sandpiper A/S Boskalis Offshore A/S
Lamnalco Ltd (50%) Lamnalco (Nigeria) Ltd (50%)
Lamnalco (Malaysia) Sdn Bhd (24.5%) Lamnalco (Sharjah) Ltd (35%)
Lamnalco Namibia (Pty) Ltd (35%) Boskalis Westminster Al-Rushaid Ltd (49%)
Holding and service
companies
Baggermaatschappij
Boskalis bv
Boskalis
Westminster Ltd
Boskalis
Westminster
International bv
Boskalis Offshore bv
Boskalis Westminster
Middle East Ltd
Zanen Verstoep bv
BV Beheermaatschappij
T. den Breejen
van den Bout
Boskalis Finance bv
-00148_JV3_TekstENG 07-04-2004 09:33 Pagina 83
84 Annua l Repo r t 2003
A structured human resources policy is important
both for individual employees and for the company
as a whole. With the broad-ranging implementation
of competence management, Boskalis is continuing
on the course it set for itself last year. Because
quality people make the difference.
“The right man or woman at the right place”, says
human resources manager Peter Hinssen, “that’s our
motto. Only then can people thrive and achieve great
things. This belief meant that we opted for a struc-
tured human resources policy using competence
management. We evaluate the expertise and skills
required for every position and then determine
whether employees have the right skills for the job.
This provides us with a picture of the level of expertise
and experience of the organization as a whole and
allows us to manage our employees’ further develop-
ment better. This is essential in a market in which
customers are increasingly demanding. In addition,
the job market for professionals is depressed. Add to
that the fact that, today, people don’t just choose a
job – they choose a career. It’s obvious what you have
to do: invest in your people. After all, if you want the
company to stay in the lead, you need the right employ-
ees, and you have to know how to hold on to them.”
“Competence management provides a means of
communicating with and about people that enables
comparison”, says Frank Verhoeven, general manager
of Boskalis bv, where the competence management
tool is already in use. “Things emerge which you actu-
ally already know but which haven’t been addressed
systematically. So nothing has been done about them.
In our case, an analysis of our young supervisors’ ex-
pertise, skills, and wishes has resulted in our deciding
to set up an operational course in dry earth moving,
which will be taught by our own experienced people.
This allows us to combine supply and demand in a
very effective and efficient way.”
Left Frank Verhoeven, general manager Boskalis bv
and right Peter Hinssen, human resources manager.
Investing in people
-00148_JV3_TekstENG 07-04-2004 09:33 Pagina 84
Roya l Boska l i s Wes tm ins te r nv
“The right man or woman
at the right place.”
“If you want to make the difference as a company,
you need the right people at the right place, and
you have to be able to hold on to them.”
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 85
86
The world of Boskalis
The wor ld o f Boska l i s
Annua l Repo r t 2003
Area Middle
Area West
AreaMiddle East
Area East
Iberian Peninsula
ArchirodonLamnalco
Head office/Home market Home markets Offices of Boskalis
United States
of America
United Kingdom The Netherlands Germany
Sweden
Finland
Mexico Italy Nigeria
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 86
Organization
Organ iza t ion
87 Roya l Boska l i s Wes tm ins te r nv
International projects market
Boskalis International bv
Area Middle T.L. Baartmans, H.F.M. Hesseling,
C.N.A.M. Kootstra, L. Slinger
Area Middle-East B.M. de Witt MBA, W.D. Keij
Area East M.C. Dekker, Dr. K.F. Bogaert,
J.J. Scheele, B.J.H. Pröpper
Area West H.P.M. Sanders
Home market
The Netherlands
Boskalis bv F.A. Verhoeven, J.J. de With, C. Wielaart
United Kingdom
Westminster Dredging Company Ltd P.G. Roland, J.J. Dekker,
T.P. Greenall, N. Haworth
Germany
Heinrich Hirdes GmbH H.G. Peistrup, J. de Reus
Nordic (Finland and Sweden)
Terramare Oy and Boskalis Sweden AB J. Yletyinen, H. Lindström
Iberian Peninsula
Dragapor Dragagens de Portugal S.A. P. Venis
Sociedad Española de Dragados, SA P. Venis
Mexico
Dragamex SA de CV P. Klip, C.D. Versteeg Z.
Nigeria
Nigerian Westminster Dredging & Marine Ltd J.F.A. de Blaeij
Italy
Boskalis Dragomar S.r.l. B. Melchiorri
United States of America
Bean-Stuyvesant LLC J. Bean, B. Hoffman, M.C. van de Ven
Specialist niche markets
Offshore services
Boskalis Offshore bv J. Boender, W.B. Vogelaar
Underwater rock fragmentation
Rock Fall Company Ltd G. Steel
Environmental activities
Boskalis Dolman bv J.A. Dolman
Corporate staff departments
Controlling & Tax J.H. Kamps
Corporate Strategy & Business Development J.H. Kamps
Treasury F.A.J. Rousseau
Investor Relations & Corporate Relations R.T. Berends
Legal Affairs K. Duppen
Quality Assurance & Safety S.P. van Woensel
Information & Communications Technology J.A. Stam
Corporate Communications I.A.M. de Bus
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 87
88
Organization
Annua l Repo r t 2003
Operational staff departments
Personnel & Organization T.F. Buirma
Research & Development J.A. Eygenraam
Dredging Department H. Postma
Central Technical Department E.C. Holman
Works Council
T.A. Scheurwater, chairman
M.G. de Best
L.J. Bouwens
M.A. Buddingh’
M.H. Eekhout
M.C.P. Hanssen-van der Velden
M.J. Kooderings Clemens
B. Kooijman
H. van der Land
G.J. Lodonk, secretary
J.H.W. van der Pol
W.Th. La Rivière, vice-chairman
J.C. de Snoo
M. Treffers
M.F. van Wijk
L. Pasma, secretary
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 88
Offices around the world
Off i ces a round the wor ld
89 Roya l Boska l i s Wes tm ins te r nv
Head office
Royal Boskalis
Westminster nv
Rosmolenweg 20
P.O. Box 43
3350 AA Papendrecht
The Netherlands
Telephone +31 (0)78 69 69 000
Fax +31 (0)78 69 69 555
www.boskalis.com
The Netherlands
Baggermaatschappij
Boskalis bv
Boskalis International bv
Rosmolenweg 20
P.O. Box 43
3350 AA Papendrecht
The Netherlands
Telephone +31 (0)78 69 69 011
Fax +31 (0)78 69 69 555
Boskalis Offshore bv
Rosmolenweg 20
P.O. Box 43
3350 AA Papendrecht
The Netherlands
Telephone +31 (0)78 69 69 011
Fax +31 (0)78 69 69 571
Boskalis bv
Zinkcon Dekker bv
’s-Gravenweg 399-405
P.O. Box 4234
3006 AE Rotterdam
The Netherlands
Telephone +31 (0)10 28 88 777
Fax +31 (0)10 28 88 766
www.boskalisbv.nl
Boskalis Dolman bv
’s-Gravenweg 399-405
P.O. Box 4466
3006 AL Rotterdam
The Netherlands
Telephone +31 (0)10 28 82 800
Fax +31 (0)10 28 82 810
www.boskalisdolman.nl
Boskalis Infra bv
Nijverheidstraat 68
2901 AR Capelle a/d IJssel
P.O. Box 4290
3006 AG Rotterdam
The Netherlands
Telephone +31 (0)10 45 82 022
Fax +31 (0)10 45 83 775
Aannemersbedrijf
M. de Haan bv
Alde Wei 2, 9222 NG
Drachtstercompagnie
The Netherlands
Telephone +31 (0)512 341 770
Fax +31 (0)512 340 473
A.H. Breijs & Zonen bv
Nijverheidstraat 68
2901 AR Capelle a/d IJssel
P.O. Box 4290
3006 AG Rotterdam
The Netherlands
Telephone +31 (0)10 45 82 022
Fax +31 (0)10 45 83 775
Cofra BV
Zuider IJdijk 58
1095 KN Amsterdam
P.O. Box 94900
1090 GX Amsterdam
The Netherlands
Telephone +31 (0)20 69 34 596/
+31 (0)20 69 31 465
Fax +31 (0)20 69 41 457
www.cofra.com
Hydronamic bv
Rosmolenweg 20
P.O. Box 209
3350 AE Papendrecht
The Netherlands
Telephone +31 (0)78 69 69 099
Fax +31 (0)78 69 69 869
www.hydronamic.nl
Aannemingsmaatschappij
Markus bv
Haarlemmerstraatweg 149
1165 MK Halfweg
P.O. Box 88
1160 AB Zwanenburg
The Netherlands
Telephone +31 (0)20 49 74 871
Fax +31 (0)20 49 78 032
www.markusbv.nl
J. van Vliet bv
Krommenieerpad 42
P.O. Box 103
1520 AC Wormerveer
The Netherlands
Telephone +31 (0)75 62 84 558
Fax +31 (0)75 62 13 331
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 89
90
Offices around the world
Annua l Repo r t 2003
United Kingdom and Ireland
Westminster Dredging
Company Ltd
‘Westminster House’,
Crompton Way
Segensworth West, Fareham
Hampshire PO15 5SS, U.K.
Telephone
+44(0)1489885933
Fax +44(0)1489578588
www.westminsterdredging.co.uk
Boskalis Westminster Ltd
‘Westminster House’,
Crompton Way
Segensworth West, Fareham
Hampshire PO15 5SS, U.K.
Telephone
+44(0)1489885933
Fax +44(0)1489578588
Rock Fall Company Ltd
Unit A1a,
Olympic Business Park
Drybridge Road, Dundonald
Ayrshire KA2 9BE, U.K.
Telephone
+44(0)1563851302
Fax +44(0)1563851063
www.rock-fall.co.uk
Boskalis Zinkcon Ltd
‘Westminster House’,
Crompton Way
Segensworth West, Fareham
Hampshire PO15 5SS, U.K.
Telephone
+44(0)1489885922
Fax +44(0)1489578588
Irish Dredging Company Ltd
‘Pembroke House’,
Pembroke Street
Cork, Ireland
Telephone +353 214277399
Fax +353 214277586
Mobile +353 872550486
www.irishdredging.com
Rest of Europe
Boskalis Westminster
Aannemers nv
P.O. Box 159
2000 Antwerp, Belgium
Telephone
+32(0)32327340/2316979
Fax +32(0)32320704
Atlantique Dragage Sarl
9 Rue St Eloi
78100 St Germain en Laye,
France
Telephone +33(0)139040490
Fax +33(0)134517459
Boskalis Offshore AS
Tangen 12,
4070 Randberg
P.O. Box 5063 Dusavik,
4084 Stavanger, Norway
Telephone +4751411100
Fax +4751411101
Sociedad Española de
Dragados, S.A.
Plaza Castilla, 3 – 7º A
28046 Madrid, Spain
Telephone +34 91 323 7703
Fax +34 91 323 7128
Dragapor Dragagens de
Portugal S.A.
Av. D. Manuel I
2890 – 014 Alcochete,
Portugal
Telephone +351 21 234 82 40
Fax +351 21 234 82 69
Enka-Boskalis Su Yapilari
Inçaati Ticaret A.S.
Enka Binasi
Bestekar Sevki bey Sokak 32
Balmumcu 80780 Istanbul,
Turkey
Telephone
+902122742574/75
Fax
+902122728869/2122742567
Delta GmbH
Zinkcon Dekker Wasserbau
GmbH
11, zum Panrepel
28307 Bremen, Germany
Telephone +49(0)421438350
Fax +49(0)4214383519
Heinrich Hirdes GmbH
Bauhofstrasse 8b
21079 Hamburg, Germany
Telephone
+49(0)40 76 60 94-0
Fax +49(0)40 76 60 94-55
www.heinrichhirdes.de
Terramare Oy
Laurinmäenkuja 3a
P.O. Box 14
FIN-00441 Helsinki, Finland
Telephone +358(0)9613621
Fax +358(0)961362700
www.terramare.fi
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 90
Offices around the world
91 Roya l Boska l i s Wes tm ins te r nv
Boskalis Sweden AB
Lundbyhamnen 122
S-41754 Gothenborg, Sweden
Telephone +4631507330
Telefax +4631515039
www.boskalis.se
Boskalis Dragomar S.r.l.
c/o T.R. S.r.l. Via Leone XIII, 95
00165 - Rome, Italy
Telephone +39 06 39870456
Fax +39 06 39870263
Terramare Eesti Osauhing
Regati pst 1/3
10143 Tallinn, Estonia
Telephone/Fax
+372 6306 540
Middle East
Boskalis Westminster
Middle East Ltd
Flat no. 204, Saif Bin
Ghobash Bldg.
Zayed 2nd Street
P.O. Box 4831, Abu Dhabi,
U.A.E.
Telephone +971 2 6447306
Fax +971 2 6443158
Boskalis Westminster
Middle East Ltd
Falcon Tower Building
7th Floor, Suite 706
P.O. Box 23486
Diplomatic Area, Manama
Bahrain
Telephone +973 535757
Fax +973 535775
Boskalis International
(Egypt Branch)
Ground floor of 1, Al
Shaheed Gamal
El Fasakhani Street
5th Avenue Al Sabaa
Emarate
Almaza – Heliopolis 11361,
Cairo, Egypt
Telephone +20(0)24175688
Fax +20(0)24174262
Boskalis Westminster
(Oman) LLC
P.O. Box 5063,
RUWI, Muscat
Sultanate of Oman
Telephone +968 591244
Fax +968 591478
Al Rushaid Investment Co.
P.O. Box 539
Dhahran Airport 31932,
Saudi Arabia
Telephone +966 8933333
Fax +966 8647320
Lamnalco Ltd
P.O. Box 5687, Sharjah,
U.A.E.
Telephone +971 6 5692111
Fax +971 6 5691313
www.lamnalco.co.ae
Boskalis Dredging India
Pvt Ltd
23 Sangeeta, Tagore Road
Santacruz (West)
Mumbai 400 054, India
Telephone +91 22 26046699/
26050368/26488517/26488518
Fax +91 22 26040579
America
Boskalis International bv
(Guyana)
1, Water Street, Quarry
Wharf, Kingston
P.O. Box 101768,
Georgetown, Guyana
Telephone +592(0)2259241
Fax +592(0)2258666
Atlantique Dragage Sarl
Dégrad des Cannes, B.P. 139
97323 Cayenne Cedex,
French Guyana
Telephone +594594354459
Fax +594594354254
atlantique.dragage@
mdi-guyana.fr
Boskalis International bv
P.O. Box 10.021
Onverdacht, district Para,
Surinam
Telephone +597352177
Fax +597352177
Boskalis Westminster
Overseas
# 824 Kenneth Avenue
Gulf View
La Romain, Trinidad and
Tobago
Telephone +18686539150
Fax +18686539155
Coastal and Inland Marine
Services, Inc.
P.H. Centro Comercial
Ciudad Siglo XXI
Avendida Ricardo J. Alfaro y
Cl. Juan Pablo II
Bethania, Panama
Telephone
+5072600051/88/96
Fax +5072361776
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 91
92
Offices around the world
Annua l Repo r t 2003
Dravensa C.A.
Edificio ONIX, Piso 6,
Oficina 61,
Calle Sojo – El Rosal,
Caracas, Venezuela
Telephone
+58(0)2129517967/6712
Fax +58(0)2129512773
Boskalis International bv
Sucursal Argentina
Tucúman 540, piso 6 “H”
1049 – Capital Federal
Argentina
Telephone +54 11 43288566
Fax +54 11 43288566
Boskalis International
Uruguay S.A.
Luis Alberto de Herrera 1248
World Trade Center
Torre A – Officina 703
11300 Montevideo, Uruguay
Telephone +598(2)6285085
+598(2)6226402
Fax +598(2)6281563
Stuyvesant Dredging
Company
3525 North Causeway
Boulevard, Suite 612
Metairie, Louisiana 70002,
U.S.A.
Telephone +15048310880
Fax +15048370407
Bean Stuyvesant LLC
1055 St. Charles Avenue,
Suite 520,
New Orleans, LA 70130,
P.O. Box 51118
New Orleans, LA 70151-1118
U.S.A.
Telephone +1 504 587 8700
Fax +1 504 587 8717
www.cfbean.com
Dragamex SA de CV
Km 7.5 Carretera
Coatzacoalcos-Minatitlán
C.P. 96496 Coatzacoalcos
Veracruz, Mexico
Telephone +52 921 2118200
Fax +52 921 2118208
www.dragamex.com
Africa
Boskalis International bv
P.O. Box 189
31200 Arzew
Wilaya d’Oran, Algeria
Telephone +213 414 70586
Fax +213 414 79288
Boskalis South Africa
(via KPMG Services
(Proprietary) Limited)
Pretoria office
P.O. Box 11265
Hatfield
0028 Southfield
South Africa
Telephone +27 124311300
Fax +27 124311301
Boscampo G.I.E.
B.P. 4054, Douala,
Cameroon
Telephone +2373430307
Fax +2373430907
Boskalis International
Gabon Z.I. Owendo
Route du Barracuda
Boite Postale 336, Libreville,
Gabon
Telephone +241702186
Fax +241702185
Nigerian Westminster
Dredging and Marine Ltd
‘Westminster House’
Plot 1601 Adeola Hopewell
Street, Victoria Island
P.O. Box 1518,
Lagos, Nigeria
Telephone
+234(0)12624580/581
Fax +234(0)12624582
Lamnalco (Nigeria) Ltd
56, Ogunu Road,
P.O. Box 799
Warri, Delta State, Nigeria
Telephone +234(0)12646490
ext 44727
(via Shell Lagos)
Australia and Far East
Boskalis Offshore bv
The Forrest Centre, Level 29
221 St Georges Terrace
Perth WA 6000, Australia
Telephone +61(0)892880610
Fax +61(0)892880663
Boskalis Australia Pty Ltd
Suite 16-01, Tower A, Zenith
Centre, 821 Pacific Highway
Chatswood, NSW 2067
P.O. Box 341
Chatswood, NSW 2057
Australia
Telephone +61 2 941 544 55
Fax +61 2 941 510 99
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 92
Offices around the world
93 Roya l Boska l i s Wes tm ins te r nv
Boskalis International (S)
Pte Ltd
Koon Building
17B Pandan Road
#03-00/#04-00
Singapore 609269
Teban Garden Post Office,
P.O. Box 629
Singapore 916001
Telephone +65 67335622
Fax +65 67327530
Zinkcon Marine Singapore
Pte Ltd
Koon Building
17B Pandan Road
#03-00/#04-00
Singapore 609269
Jurong Post Office
P.O. Box 446
Singapore 916415
Telephone +6567333471
Fax +6567342510
Boskalis Westminster
International bv
Korea Branch
Suite 711, Hanaro Building
194-4, Insa-dong, Jongro-
Ku, Seoul, South Korea
Telephone +82(0)27338973
Fax +82(0)27338974
Boskalis International bv
Room 1702, Tower 1
China Hong Kong City
33 Canton Road, Tsim Sha
Tsui, Kowloon
Hong Kong SAR
Telephone +85223762330
Fax +85223763489
Boskalis International (M)
Sdn Bhd
Jalan Sultan Ismail
No. 4018, 4th Floor,
President House
50250 Kuala Lumpur
Malaysia
Telephone +60 32 1448092
Fax +60 32 1448093
P.T. Boskalis International
Indonesia
Plaza Centris, Floor 12A
Jl. H.R. Rasuna Said Kav. B-5
Kuningan Jakarta 12910
Indonesia
Telephone +62 21 5269020
Fax +62 21 5269022
Boskalis International bv
Suite 22, 3rd Floor
Legaspi Tower 300
2600 Roxas Blvd. Cor. Vito
Cruz, Manila
Philippines
Telephone +63(0)25241627
Fax +63(0)25217062
Boskalis International bv
Representative Office Beijing
Room 512, Lucky Tower B,
no. 3
Dongsanhuan Beilu,
Chaoyang District
Beijing 100027, P.R. China
Telephone +861064616458
Fax +861064616459
Boskalis started on its first job
in China in August 2003.
The cutter suction dredger
Orion is at work there, reclaim-
ing land for a logistical center
in the delta of the Yangtze river
20 kilometers south of Shanghai.
The work is expected to be
completed in late 2004.
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 93
94 Annua l Repo r t 2003
Glossary
Glossary
Acquired orders
The contract value of acquired assignments.
Backhoe
A large hydraulic excavating machine positioned on the end of a pontoon. The pontoon is held firmly in
place using spuds. Backhoes can dredge in a range of soil types with extreme precision.
Barge unloading dredger
A ship for discharging and pumping dredged material from barges lying alongside.
Booster station
Pumping station for the transportation of sediment through pipelines over longer distances.
Boskalis Leadership Development program
A management development program that, in collaboration with an external training institute, has been
designed according to Boskalis specifications. It will provide candidates for senior management
positions (national and international) within the organization.
Bucket dredger
The standard, anchored dredger with a revolving chain and buckets that dig into the bed and are
discharged. This type of equipment is now mainly used for environmental dredging and other jobs
requiring extreme precision, such as dredging tunnel trenches.
Competence management program
Program targeting the systematic development of the workforce in accordance with their talents and
competences.
Completed contracts
Contract value of completed work.
Cost leadership
Achieving lowest cost price.
Cutter
See Cutter suction dredger.
Cutter suction dredger
A vessel that dredges while being held into place using spuds and anchors. This technique combines
powerful cutting with suction dredging. Cutter suction dredgers are mainly used where the bed is hard
and compact. The dredged material is loaded into hoppers but is generally pumped to land through a
pressure pipeline.
Dredging in Practice
Practical course established by Boskalis for Dutch and foreign superintendents in which a theoretical
understanding of the dredging profession is combined with learning about practical dredging from
experienced employees with fleet and operational backgrounds.
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 94
95 Roya l Boska l i s Wes tm ins te r nv
Glossary
Dredging-plus activities
Activities that fit in with the core activity and core competences of the company. For example, off-
shore services, gravel and sand trading, soil improvement, dry earth moving, environmental activities,
munitions clearance, underwater rock fragmentation, pipeline construction and hydraulic engineering.
Dutch guidelines for annual reporting
Guidelines for annual reporting drawn up and promulgated by the Council for Annual Reporting
(Raad voor de Jaarverslaggeving), that represents providers, users and auditors.
Dynamic positioning system
System for keeping a vessel in place in which the propellers and rudders are controlled by an
automatic system.
EBIT
Earnings before interest and tax.
EBITDA
Earnings before interest, tax, depreciation and amortization.
Environmental disc cutter
The environmental disc cutter is a cutter suction dredger with an enclosed cutter head, an adjustable
vizor and controllable suction flow. A process control system controls the various parameters so that
high-density mixture concentrations can be achieved without turbidity and with high levels of precision.
This type of cutter suction dredger is preeminently suited for environmental projects.
ERP system
Enterprise Resource Planning System. An information system with full integration of primary business
processes.
Fallpipe vessel
Vessel that moves over the area to be covered, while dumping the stone on board through a fallpipe.
The end of the pipe is located just a few meters above the level of the surface to be covered.
The fallpipe is controlled using a precise positioning system. The fallpipe vessel Seahorse can also be
equipped with an A-frame on the aftship and a grab controlled by an ROV (Remotely Operated Vehicle).
This makes it possible to dredge down to depths of 1,000 meters.
Goodwill
The difference found at the time of the acquisition of participating interests between the acquisition
price paid for the shares and the net asset value.
Grab crane
A stationary pontoon with a crane that uses a crane shovel or grab. Dredged material is deposited in
barges that operate independently. Grabs can manage both sludge and hard objects and this makes
them suitable for, among other things, clearing up waters that are difficult to access, for gravel winning
and maintenance dredging on uneven beds.
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96
Glossary
Annua l Repo r t 2003
Home market
Boskalis distinguishes itself from its competitors by the use of a home market strategy. The home
market organizations have local marketing profiles, as well as their own fleets and infrastructures.
They can rely on the support of the financial and technical resources of the global Boskalis
organization. Home markets provide a stable flow of assignments and opportunities to generate
additional margins through associated activities.
Hopper
See Trailing suction hopper dredger.
IFRS
International Financial Reporting Standards: rules for financial reporting drafted and promulgated by
the IASB (International Accounting Standards Board). They will be compulsory within the European
Union from 2005 onwards for all listed companies.
International Dredging Academy
Collaboration with the Scheepvaart en Transportcollege in Rotterdam in which a modular curriculum
has been developed exclusively for Boskalis. The training is for Dutch employees and employees from
abroad (with nautical training) for work on the Boskalis fleet. This training will enable them to take up
officer positions in the future.
International projects market
Market that focuses primarily on larger capital expenditure projects for new buildings and/or
extensions. In addition, there are projects that regularly involve cooperation with third parties.
This makes it possible to provide clients with optimal services and to share risks.
ISM code
International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention:
an international standard for compliance with safety regulations and the prevention of pollution on
seagoing vessels. ISM requires shipowners to set up and maintain a safety management system.
Since 1 July 2002, all Boskalis seagoing self-propelled vessels have met the requirements of this code.
ISO standards
Standards of the International Organization for Standardization; the global federation of national
normalization organizations that issues standard requirements for, among other things, quality
management systems (ISO-9001) and environmental management systems (ISO-14001).
ISPS Code
International Ship & Port Facility Security Code of the International Maritime Organization regulating
precautions that deal with terrorist threats to shipping. All Boskalis seagoing ships are expected to
meet these requirements from July 2004 onwards.
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 96
Glossary
97 Roya l Boska l i s Wes tm ins te r nv
Orderbook
The turnover accounted for by parts of orders as yet uncompleted.
OSHAS-18001
Occupational Health & Safety Management System Specification. Standard for a safety management
system drawn up by, among others, the classification society Bureau Veritas.
Plant Management System
System that provides support for the clear and structured management of ships by means of internal
procedures.
PPI
Public-Private Initiative. An umbrella term for various types of projects in which the government joins
forces with the business community. The objectives are to capitalize on the qualities and potential of
both parties and jointly manage risks.
Stone-dumping vessel
A stone-dumping vessel is a ship with a deck on which stone can be loaded. Using a dynamic
positioning system and slides, the stones are pushed over the edge of the ship into the right position
in the water.
Suction dredger
Stationary, hydraulic vessel that sucks up the sediment/water mixture through a suction pipe.
Suction dredgers are generally used for sand winning.
TEU
Twenty feet Equivalent Unit. Unit used to indicate the capacity of a container or transport flows.
Tracked underwater dredging unit
Small vessel that can be remotely controlled for dredging underwater at large depths.
Trailing suction hopper dredger
A self-propelled unit that loads its well or hopper using centrifugal pumps and pipes that trail over the
bed as the ship sails. Trailing suction hopper dredgers can operate independently of other equipment
and can transport material over long distances. The dredged material is dumped through flaps or
bottom doors, by rainbowing, or pumped on to land using a pipeline.
Turnover work done
Volumes produced in a given period. The work may not yet be completed.
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 97
98
Glossary
Annua l Repo r t 2003
WACC
Weighted Average Cost of Capital. The weighted average of the cost of capital (required and after
taxation) for capital and reserves, and loan capital (interest-bearing).
Work in progress
Projects that have not been completed on the balance-sheet date but that have been finished in part.
The cutter suction dredgers
Taurus and Ursa on the
Ras Laffan project in Qatar
where they worked on a
2-kilometer-long channel
with a depth of 7.4 meters
in very hard ground. The
channel will supply Qatar
with drinking water and
industrial cooling water.
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 98
8 + 1* Trailing suction
hopper dredgers
Hopper capacity >6,000 m3
Equ ipment
99 Roya l Boska l i s Wes tm ins te r nv
8 Suction dredgers
Total installed power
from 656 to 4,050 kW
19 + 4* Backhoes
Bucket capacity
from 1.4 to 22 m3
123 + 108* Launches, tugs,
supply and crew boats
Propulsion power
from 30 to 4,412 kW
22 + 1* Floating grab cranes
(‘grab dredgers’)
Grab capacities
from 1.2 to 9.2 m3
4 Stone dumping vessels
Capacity
from 354 to 1,400 t
1 ‘Tracked’ underwater
dredging unit
Remote-controlled
30 + 4* Work boats
Propulsion power
from 133 to 918 kW
6 + 1* Drill barges
5 Floating hoisting pontoons
Hoisting capacities from
10 to 270 t
5 + 2* Screeder pontoons
For waterbed protection
(clay and stone)
7 Bucket dredgers
Bucket capacity
from 450 to 900 liters
25 + 14* Cutter suction and
bucket-wheel dredgers
Total installed power from
257 to 9,262 kW
18 + 9* Trailing suction
hopper dredgers
Hopper capacity <6,000 m3
3 Self-propelled seagoing
cutter suction dredgers
Total installed power
from 14,733 to 15,830 kW
* Owned by (non-controlled) associated companies. In addition to the equipment shown here, the group also owns a range of auxiliary
equipment such as floating pipelines, winches, pumps, drag lines, hydraulic excavators, wheel loaders, dumpers, bulldozers, mobile cranes,
crawler drill rigs, sand pilers, filling installations for shore protection mattresses, fixed land pipelines, various pontoons and houseboats.
1 Environmental disc cutter
21 + 5* Booster stations
Total installed power
from 390 to 6,150 kW
4 Barge unloading dredgers
Total installed power
from 1,650 to 4,300 kW
1 + 1* Dynamically
positioned fallpipe vessel
Capacity from 17,000 to 18,500 t
6 + 41* Stone transportation
barges
Capacity from 120 to 2,000 t
110 + 15* Hopper and
transportation barges
Hopper capacity from 300 to 2,336 m3
2 + 1* Remote-controlled
underwater dredging units
Maximum dredging depth 600 m
Equipment
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 99
100 Annua l Repo r t 2003
The cutter suction dredger
Cyrus in Arzew, Algeria, where
Boskalis is working on the main-
tenance and the expansion of
the oil and gas harbor. Together
with the trailing suction hopper
dredger Cornelia, a total of
1,500,000 m3 hard and soft
material will be dredged.
-00148_JV3_TekstENG 07-04-2004 09:34 Pagina 100
Compiled and
coordinated by Royal
Boskalis Westminster nv
Design and realisation
Photography
Lithography and printing
Corporate Communications Department
Handelskade, Rotterdam
H.H.G. Been, A.D. van Gool, A. van Gutter, Van der Kloet Fotografie, G.W.L. Koejemans,
Klaas Laan, Norman Childs, R.A. Snoep and others
PlantijnCasparie Capelle a/d IJssel
Colophon
An
nu
al
Re
po
rt
20
03
An
nu
al
Re
po
rt
20
03
Rosmolenweg 20
3356 LK Papendrecht
The Netherlands
P.O. Box 43
3350 AA Papendrecht
The Netherlands
Telephone +31 (0)78 69 69 000
Telefax +31 (0)78 69 69 555
E-mail [email protected]
Internet www.boskalis.com
We move the ea r th to a be t te r p l ace We move the ea r th to a be t te r p l ace
An
nu
al Rep
ort 2003
Ro
yal Bo
skalis Westm
inster n
v