Annual r eport 2002 Annual r eport 2002 - Boskalis

Annual report 2002 

Rosmolenweg 20 

3356 LK Papendrecht 

The Netherlands 

P.O. Box 43 

3350 AA Papendrecht 


Telephone +31 (0)78 69 69 000 

Telefax +31 (0)78 69 69 555 

E-mail royal@boskalis.nl 

Internet www.boskalis.com 

We move the earth to a better place 

Annual report 2002 Royal Boskalis Westminster nv 

Annual report 2002 

We move the earth to a better place

Annual Report 2002 

1 Royal Boskalis Westminster nv

Innovation: where professionalism and high tech meet 

As the market leader, Boskalis wants to show the way. Innovation is vital. That is why it is an important 

component of all Boskalis operations. So this year’s annual report spotlights the theme of ‘innovation’. 

We look at, for example, technical innovations in the ships and on projects, but also at innovative 

solutions in other areas. 

2 

Annual Report 2002

Table of contents 

Table of contents 

Company profile 6 

Mission, objectives and strategy 9 

Basic principles of the corporate strategy 12 

Management 18 

Key figures 22 

Investor relations 23 

Message to shareholders 25 

Report of the Board of Management on 2002 30 

Report of the Supervisory Board 40 

Financial statements 2002 45 

Principles of financial reporting 45 

Consolidated balance sheet before proposed profit appropriation 48 

Consolidated profit and loss account 49 

Consolidated cash flow statement 50 

Explanatory notes to the consolidated balance sheet and profit and loss account 51 

Company balance sheet before proposed profit appropriation 60 

Company profit and loss account 61 

Explanatory notes to the company balance sheet and profit and loss account 62 

Other information 65 

Provisions in the articles of association relating to profit appropriation 65 

Proposed profit appropriation 66 

Auditor’s report 66 

Stichting Continuïteit KBW 67 

Report 67 

Declaration of Independence 67 

Ten years Boskalis 68 

Innovation: where professionalism and high tech meet 4 

Precision dredging with high-tech equipment 10 

Total solutions and innovative contracts 16 

The Waterway: Ship of the Year 2002 20 

Wave patterns translated into working days 28 

Fast settling with BeauDrain soil improvement technique 38 

Knowledge transfer creates a lead 42 

Rostock tunnel project: innovative approach 70 

Legal structure 69 

The world of Boskalis 72 

Organization 73 

Offices around the world 75 

Glossary 80 

Equipment 83 

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. 


Fast settling with BeauDrain soil 

improvement technique. 

“Where professionalism and high tech meet” 

In his ‘Innovation Lecture 2001‘ (The Hague, 3 December 2001), the celebrated American economist 

Michael E. Porter made a plea for ‘cluster innovation’: 

"Innovation means more than just spending money on research and development. Innovation is driven 

to a major degree by the formation of industrial ‘clusters’: concentrations of companies and knowledge 

institutions with a shared area of expertise who do business with each other and who are in close geographical 

proximity." 

In other words, branch-based innovation, driven by 

shared enthusiasm, the grouping of expertise and 

creativity, and the transformation of commercial 

opportunities into solutions. High-grade and local 

in origin, leading and global in application. 

Porter’s view of innovation has been the approach 

in the dredging industry for years. Sliedrecht is the 

international knowledge centre for the specialist 

construction of dredgers and supplies of electronic 

systems and dredging equipment. Delft houses various 

scientific civil-engineering institutions. Ede is 

home to the Maritiem Research Instituut Nederland 

(MARIN), one of the five Major Technological 

Institutes (GTIs) in the Netherlands. Dutch dredging 

companies are also permanently engaged in fundamental 

research, both jointly and independently. 

Precision dredging with high-tech equipment. 

Total solutions and 

innovative contracts. 

Waterway: Ship of the Year 2002. 

Knowledge transfer 

creates a lead. 

4 Annual Report 2002

Wave patterns translated 

into working days. 

Boskalis plays a prominent role in this successful industrial cluster. Permanent innovation is 

inherent in the culture of the company and it has many facets. Innovation affects not only the 

technical core activities such as working methods and equipment, it also affects matters such 

as environmental dredging, innovative contracts and financing, and staff training. Boskalis sails 

full ahead when it comes to devising and introducing innovations in numerous areas. There is 

also intensive collaboration between the company, its suppliers and other business partners. 

An important innovation at present is the fleet overhaul, a program that has been in place for 

a number of years now. Modern insights and practical working experience on projects result 

in cost-leading designs for new ships. Existing fleet units are also regularly modified to incorporate 

the latest techniques. 

Environmental dredging is also an important area in which Boskalis makes innovations. Not only 

are clients' environmental requirements transformed into appropriate solutions, Boskalis also 

looks at clients' wishes in terms of the possible risks for the environment. Clients’ technical 

specifications are also regularly examined and improved in certain areas. Its continuous innovations 

and specialist expertise in the area of the environment allow Boskalis to provide actual practical 

solutions that benefit the environment. Here, the risk monitoring systems developed by the 

company itself play an increasingly important role in the environmental implementation of projects. 

Innovative contracts and financing are other facets of innovation. More and more often, 

Boskalis is asked to provide clients with total solutions for their infrastructure needs. 

This covers the entire project cycle: from functional requirements through design and implementation 

to financing and complex project management. The client benefits as a result of 

cost savings generated by the early introduction of expertise into the design process. 

Implementation is also more efficient and the completion stage is reached earlier by means 

of effective project management. This sort of innovation fits in with a modern partnership 

approach to customers and contractors. 

Boskalis also innovates in the area of knowledge transfer. You can't learn about dredging from books alone. Practical experience 

makes the world of difference in dredging. Much of that expertise and experience is lodged in the minds of experienced 

personnel. It needs to be transferred properly to the large group of new personnel who have joined Boskalis in recent 

years. One example of knowledge transfer is the use of cutter suction dredger and hopper dredger simulators. These make 

it possible for fleet crews and superintendents to acquire practical experience that can also include new techniques. In 

addition, the International Dredging Academy and the supervision in practice of controllers on international projects are just 

some examples of structured knowledge transfer within the company. 

Rostock tunnel project: 

innovative approach. 

It is vital for technical training to keep up with dredging innovations. Specialized departments such as Research & 

Development and the engineering consultancy Hydronamic bv work to strict theoretical standards in order to bring theory 

and practice together. With the same end in mind, Boskalis is also involved on the educational level with training institutes 

(including Delft Technical University and other educational establishments at all levels throughout the Netherlands). 

Royal Boskalis Westminster nv

Company profile 


We move the earth to a better place. Boskalis, a leading international company with a unique 

market position. 

Royal Boskalis Westminster nv is an international service company active in the area of maritime 

infrastructure. Its core activities include the construction and maintenance of harbors and waterways, 

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 developing 

countries such as India, Malaysia and Mexico. The increasing demand for larger and deeper ports is 

accompanied by the need for keeping them deep. This leads to increases in maintenance volumes, 

particularly in areas with strong currents or tidal variations. 

Strong growth container turnover (in million TEU) 

6 



Trailing suction hopper dredger 

Coastway and the backhoe 

Nordic Giant at work in the port 

of Gothenburg, Sweden. 

This large project includes the 

redevelopment, broadening and 

deepening of the main fairways 

of this port and will last until 

early 2004. 

Creation of land in water. The global population is still increasing and economic centres 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 jumbo 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 extend our 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 and it continues 

to increase by approximately 5% a year. Half of these sales (approximately € 3.5 billion) are made to 

reasonably open markets. Five large Western European dredging companies account for approximately 

60% of operations in these open markets, with roughly 40% of ‘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. 



However, the broad geographical spread means that a global player such as Boskalis can achieve 

balanced growth. Boskalis’ main 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 strength of the concept is that it generates a stable 

flow of projects and opportunities to extend the range of activities. The home market organizations 

have local marketing profiles, as well as their own fleets and infrastructures. 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 elsewhere that together account for 

approximately 60% of group turnover: The Netherlands, the United Kingdom, Germany, Finland, 

Sweden, Portugal, 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 collaboration 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. 

Cutter suction dredger Jokra 

was used in the Amwaj islands 

project in Bahrain, where four 

islands were created for 

housing, shops, an amusement 

park, and a range of sports and 

relaxation facilities. 

8 


Mission, objectives and strategy 

Mission, objectives and strategy 

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 

the countries where it operates. 

Boskalis wants an optimal balance in its services between functionality and the demands of the 

environment. 

Objectives 

Boskalis’ main objective is structural growth in both operations and profitability. Financially, the goal 

is an average annual return on capital employed of at least 15%. 

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; 

• continue efforts to achieve consolidation in the industry. 

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. 


Robert de Vlaming, Regional Manager 

Boskalis Offshore 

Precision dredging with high-tech equipment 

The fallpipe vessel Seahorse is equipped with a 

grab that can work at depths up to 1,000 meters 

below the surface. The state-of-the-art steering 

system means that the grab can be kept in position 

within tolerances of only a few centimeters. 

More and more often, oil and gas are being drilled for 

in deep waters. The Grand Banks near Newfoundland, 

Canada are a case in point. In order to protect the 

underwater oil and gas drilling installations against 

passing icebergs, Boskalis Offshore dredges ‘glory 

holes’ here. These are nine-meter-deep pits the size 

of a football field. They are located in the seabed at 

a depth of 120 meters. The new grab was specially 

developed for this purpose. 

“Development and production took more than a year,” 

explains Robert de Vlaming, Regional Manager for 

Boskalis Offshore. “A great deal of very high-grade 

technology was used. For example, the positioning 

system contains technology that is used in the 

aerospace technology. Nevertheless, the grab can 

be controlled by a single operator on the bridge.” 

The grab, with the remote system, weighs 80 tons 

and it is lifted on board by a hydraulic hoisting 

frame (an A frame). Furthermore, a second hoisting 

point was installed on the Seahorse so that the grab 

can be moved over the full length of the ship using 

a winch. And then there is the ‘umbilical cord’. This 

line feeds the grab with electricity, and with data in 

three dimensions about the position of the ship and 

its movements. 

The three links ensure that close steering of the grab 

remains possible, even at large depths. The active 

swell compensation also positions the grab with 

respect to the movements of the ship so that work 

is still possible in heavy seas. 


“Innovation means constantly pushing at your limits, 

literally and figuratively.” 

Computer animation of 

the grab, that can work 

precisely down to depths 

of 1,000 metres. 

The fallpipe vessel Seahorse 

testing the new grab. 

The 80-ton grab 

being lifted on deck. 


Basic principles of the corporate strategy 


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. 

The PFI (Private Financing 

Initiative) project in Pevensey 

Bay involves the construction of 

an eight-kilometer-long shingle 

bank between Eastbourne and 

Bexill in East Sussex. 

The resulting improvement to 

the bank will provide protection 

against flooding for storms that 

may occur once every 300 years. 

The project includes maintenance 

work on the coastal 

defenses for 25 years. In the 

U.K., the project has already 

received 2 awards. 

12 



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 creditworthy, 

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. 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 2002, 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. 

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 understanding 

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 bv, 

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. 

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. 

14 



In Ensenada, Mexico, Dragamex 

executed a contract for a new 

container terminal. The access 

channel and basin were dredged 

and the outcoming dredge spoil 

was used to create an artificial 

peninsula to accommodate 

Ensenada Cruise Port Village 

and cruise ship berths. 

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 equipment, 

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 system 

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 software, 

hardware and communications technology is vital here. 


Jelke Jan de With, director Boskalis bv 

Total solutions and innovative contracts 

More and more often, Boskalis thinks up and 

implements its own solutions rather than carrying 

out other people’s plans. That results in innovative 

contracts. 

“Together, you try to think up the best solutions. 

It makes our work more interesting and challenging, 

opening up the way for innovation”. These are the 

words of Jelke Jan de With, director at Boskalis bv. 

“These days, contracts bring together the expertise 

and skills of two (or more) parties in order to achieve 

the best possible result. The client and the contractor 

are both responsible for the progress of the project”. 

Good collaboration means being able to act quickly. 

“An advanced public-private initiative”, continues 

Jelke Jan de With, “also means that Road 11 between 

Alphen aan den Rijn and Bodegraven in South Holland 

can go into use two years earlier than planned.” 

The road is being built under a Design, Build, Maintain 

& Finance contract involving a consortium led by 

Boskalis. 

A step further is taken by the contract used for a 

section of the Betuwe route, the railway for freight 

transport from the port of Rotterdam to Germany. 

For the construction of the Sliedrecht-Gorinchem 

section, Boskalis (acting in a joint venture) and the 

client, Dutch Railways, split up the original Design, 

Structure & Maintain contract into a building 

contract and an alliance agreement. The building 

contract covers construction and maintenance. 

The alliance is responsible for the design and risk 

management. The public and private parties collaborate 

closely in the alliance, which is led by an alliance 

manager from Boskalis. Together, they manage all the 

project risks and strive after efficiency and profit. 

According to Jelke Jan de With, alliance and implementation 

interact. “And that is good for the project: 

this part of the route is the only one that will be 

completed on time and within budget”. 


“Innovation means working more intelligently, faster 

and better thanks to new types of contracts.” 

Work on the Sliedrecht- 

Gorinchem section of the 

Betuwe route. 

“Road 11 between Alphen aan 

den Rijn and Bodegraven 

in South Holland will go into 

use two years earlier than 

planned thanks to the advanced 

Design, Build, Maintain & 

Finance contract”. 

“This part of the Betuwe 

route is the only one that 

will be completed on time 

and within budget”. 


Management 

Management 

Supervisory Board 

S.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 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. 

• member 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 Creyf’s Interim N.V.-SA, 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. 


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 Stichting Algemeen Christelijk ROC-ASA 


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. 


All members of the Supervisory Board are Dutch. 

They do not hold shares in Royal Boskalis Westminster nv or associated option rights. 

18 


Management 

From left to right: 

K.G. van Nes, 

Dr. P.A.M. Berdowski, 

R. van Gelder BA 

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) 


• 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) 


• former managing director of Boskalis bv in Rotterdam 

• a range of previous management positions with CB, CSB, NVWB and CUR 

All members of the Board of Management are Dutch. 

One member of the Board of Management has shares and options on 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. 

Secretary 

M.M.A. van den Berg (1961) 

The above information is valid as at 11 March 2003. 


Carel Stetter, head of the building team of 

the Waterway 

The Waterway: Ship of the Year 2002 

The Waterway is a trailing suction hopper dredger 

that was specially designed for work in shallow 

waters. On 25 May 2002, it was chosen as ‘Ship of 

the Year’ by the Royal Netherlands Association of 

Maritime Technicians (KNVTS). 

The Waterway is broad and flat. During the design 

phase, it was known affectionately as “the littl’un”. 

The specifications for the ship were drafted entirely 

by Boskalis. Its unusual shape (length = 97 meters, 

width = 23 meters) means that the ship has a shallow 

dredging draft of 6.58 m. Despite this, her hopper is 

quite large at 4,900 m 3 . “That means the ship is 

eminently suitable for work in shallow waters like 

beach and foreshore replenishment”, says Carel 

Stetter, the head of the building team. “The Waterway 

has a number of special technical features. 

For example, two of the four discharge doors are 

positioned so high that they are not under the ship 

during discharge work.” 

This feature proved useful during the first job done 

by the Waterway in the spring of 2001. During repair 

work on the coast of South Holland (foreshore 

replenishment), there was sometimes only twenty 

centimeters of water under the ship during the 

discharge of, in total, 750,000 m 3 of sand! 

The Waterway has been added to the fleet of 

Westminster Dredging Company in the United 

Kingdom. The ship is used in Europe and elsewhere, 

for example for foreshore and beach replenishment, 

and for dredging and maintenance work in 

shallow waters. 


“Innovation is essential for Boskalis and a challenge 

for our construction department. Our ships build our 

future competitive position!” 

The Waterway in open sea. 

The Waterway is perfect for work 

in shallow waters. Here, she is 

working on the Escravos project 

in Nigeria, where Chevron is 

building a ‘gas-to-liquids’ plant. 

Former Minister Netelenbos 

hands over the ‘Ship of 

the Year 2002’ award to 

K.G. van Nes, member of 

the Board of Management. 


Key figures 

Key figures (1) Annual Report 2002 

(amounts x € 1 million, unless stated otherwise) 2002 2001 

Turnover completed contracts 1,124 1,081 

Turnover work done 1,035 1,083 

Orderbook (work to be done) (2) 1,273 1,224 

EBIT (3) 109.3 103.4 

EBITDA (4) 175.9 165.6 

Net result 82.1 77.7 

Depreciation 66.6 62.2 

Cash flow 148.7 139.9 

Shareholders’ equity (2) 413.0 376.0 

Average number of outstanding shares (x 1,000) (8) 25,949 25,900 

Number of outstanding shares (x 1,000) (9) 25,970 25,917 

Personnel (number of persons) (2) 3,285 3,119 

Ratios (in percentages) 

Operating result as % of the turnover completed contracts 8.9 9.0 

Return on capital employed (5) 20.3 21.4 

Return on equity (6) 20.8 22.1 

Solvency (2/7) 41.6 38.4 

Figures per share (amounts x € 1.00) 

Profit (8/10) 3.16 3.00 

Cash flow (8) 5.73 5.40 

Shareholders’ equity (2/9) 15.90 14.51 

Dividend 1.26 1.20 

Share information Euronext Amsterdam 

Ordinary shares (amounts x € 1.00) 

• Price range 17.80/35.55 25.15/37.15 

• Closing price at year-end 19.27 30.10 

• Price/earnings ratio 6.1 10.0 

(1) Figures taken from the respective financial statements. 

(2) As at 31 December. 

(3) Consists of earnings before interest and taxation. 

(4) Consists of earnings before interest, taxation, depreciation and amortization. 

(5) Net result + interest paid on long-term loans as % of the average capital employed (shareholders’ 

equity + long-term loans). 

(6) Net result as % of the average shareholders’ equity. 

(7) Shareholders’ equity as % of the balance sheet total (fixed assets + current assets). 

(8) Weighted average number of outstanding ordinary shares less the number of shares owned 

by the company. 

(9) Number of outstanding ordinary shares less the number of shares owned by the company 

as at 31 December. 

(10) The dilution effect was practically nil up to the financial year 2002. 

22

Investor relations 


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 the 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 communications focus 

primarily on investors who are interested in the long-term growth potential of small cap growth stock. 

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 information, projects and the latest press releases. 

Presentations for analysts are also published on the site. The website is maintained and improved 

continuously. 

Fall in share price of 36% in line with stock market 

World-wide economic stagnation and political uncertainties also had a negative effect in 2002 on 

global financial markets. The Boskalis share was no exception. The share price fell in 2002 by 36%, 

from € 30.10 to € 19.27. 

Despite the uncertainties in the short-term, there was still considerable interest in the share from 

analysts and investors. This was primarily true of investors with a longer-term view of investment. 

Share price development in euros, closing prices (1 January 1999 through 31 December 2002) 

After a few years in which the share out-performed the leading market indices, the Boskalis share 

price performed in line with the markets in 2002: 

40 

35 

30 

25 

20 

15 

10 

1999 2000 2001 2002 

2002 2001 2000 1999 1999-2002 

Boskalis share price: -36% +14% +47% +30% +40% 

AEX index: -36% -20% -5% +25% -40% 

AMX index: -35% -20% -8% +1% -52% 

On the basis of the closing rate as at year-end 2002, the dividend yield for Boskalis shares in the 

past year was 6.2% (€ 1.20 per share). 



Large shareholders 

As at 11 March 2003, the following shareholders are known to have a holding of at least 5% in Boskalis: 

HAL Holding N.V. 29% 

Commercial Union Assurance PLC 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 twelve 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. Subject to approval of the financial statements, 

a dividend of € 1.26 will be distributed to the shareholders for the year 2002. Shareholders may opt 

to take this dividend entirely in stock or entirely in cash. 

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. Since 1 March 2003, it has been listed on 

the Amsterdam AMX index. 

Boskalis aims to have options on its shares traded on the Euronext Options Exchange in Amsterdam. 

Financial agenda 

Agenda in 2003 

12 March Publication annual figures for 2002 

mid-April Publication annual report 2002 

14 May Annual General Meeting of Shareholders 

16 May Shares go ex-dividend 

16 to 27 May (inclusive) Option period stock dividend or cash dividend 

27 May Fixation of stock dividend conversion ratio 

4 June Dividend payment for 2002 

21 August Publication of 2003 half-year results 

Information 


R.T. Berends 

Telephone +31 (0) 78 69 69 822 

Telefax +31 (0) 78 69 69 805 

E-mail 

ir@boskalis.nl 

Internet 

www.boskalis.com 

24 


Message to shareholders 


Dear shareholders, 

Royal Boskalis Westminster nv booked altogether satisfactory results in 2002, despite increasingly 

difficult circumstances. The company is in good condition: it is a market leader with broad international 

operations and a strong financial position that is, on balance, debt-free. 

Despite predominantly favorable market prospects in the long-term, it became clear in the latter 

half of 2002 that the effects of a stagnating global economy, falling share markets and geopolitical 

uncertainties are also being felt in our dredging markets. For the time being, we are still assuming 

that the uncertain situation will continue in 2003. 

After years of strong growth, 2002 was a year in which activity flattened out. The volume of 

work done did not reach the record level of 2001. Nevertheless, increased turnover in completed 

contracts, plus the effect of the participation in Archirodon acquired in 2001, pushed earnings 

per share up by 5% to € 3.16. 

Despite the hesitant mood in most of our markets, € 1.1 billion in new orders was won in 2002 

and the orderbook remained well-filled. 

Although current uncertainties about 2003 require a cautious approach, we are certainly not 

pessimistic. 

Nevertheless, the short-term emphasis for the market position will shift from growth to consolidation 

(and where possible strengthening). The optimization of operational efficiency will also be prioritized. 

There will be no let-up in our efforts to strengthen our enterprise for the future. This applies in 

particular to the following focus areas: 

• staff training and development; 

• investments in innovative equipment and new techniques; 

• development and implementation of all systems, and particularly ICT. 

Boskalis continues to invest in its future. Our ‘sow and reap’ policy is also important in less straightforward 

circumstances. Our ‘sowing’ activities will be more focused; even more determination and 

effort will go into ‘reaping’. 

Structural growth and development have been central in recent years. Our strategy continues to 

target this long-term objective. In the shorter-term, we will concentrate primarily on market position, 

competitive position, maintaining stable capital ratios and achieving the return target. 

As the only listed dredging company in the world, we will continue to seek the attention of the 

financial markets by means of an active investor relations policy. Against this background, the 

Boskalis share returned to the AMX index as at 1 March 2003. This will result in an increase in 

media interest in the Netherlands. 

We would like to be as clear as in previous years about our profit expectations. Unfortunately, 

prevailing conditions force us to be cautious. We propose increasing the dividend from the results 

for 2002 to € 1.26 per share (2001: € 1.20). 



The tide turned in 

the second half of 2002 

After a run of years with a highly favorable international business climate, the tide in the dredging 

industry turned in the second half of 2002. 

The short-term is uncertain 

There has been continuing economic stagnation in Europe, Japan and the United States. We have also 

seen, in general, an increase in international political tensions with respect to the Middle East in general. 

In particular, there has been a slowdown in the Dutch civil sector and problems with sand production in 

Indonesia for the purposes of the land reclamation mega-projects in Singapore. These factors have, for 

the time being, changed the look of the international dredging landscape. The short-term climate is 

uncertain. 

The prospects for the longerterm 

remain favorable 

Despite the current uncertainties, the longer-term prospects remain favorable. The demand for infrastructure 

on the waterline is directly linked to developments in the volume of world trade, the increase 

in the global population and the shortage of space in densely-populated coastal areas. There is also 

increasing demand for our services from the energy sector (offshore) and the tourist industry (land 

reclamation). Dredging is an industry with a future. 

Global spread and prominent 

position provide Boskalis with 

a firm base 

Thanks to its broad global spread and its prominent position, Boskalis has managed to perform well, 

even in more difficult market conditions. A series of fixed home market positions and regional alliances 

make for solid foundations, precisely in uncertain times. We expect competition to intensify in the market 

for one-off large international projects. Modern ships will push out older equipment in this segment. 

Operating margins in international 

projects will come 

under pressure 

In addition, operating margins will come under pressure here and there. Quality and innovation will 

continue to open up opportunities in specialist niche segments such as the energy sector and environmental 

activities. 

On balance, in the coming period, the market picture will involve uncertainty and hesitation but also, 

and especially for Boskalis, numerous opportunities. 

Archirodon alliance bears fruit 

For the first time last year, Boskalis was able to pluck the fruits of its alliance with Archirodon. In addition 

to good collaboration in the Middle East, a joint project was contracted for the drainage of waste water 

in Singapore and a large order was acquired recently in Kazakstan. 

Consolidation in Europe 

in final stages 

The consolidation process involving dredging companies in Western Europe (i.e. The Netherlands and 

Belgium) has gradually reached the final stages. 

26 



Policy focus remains on 

‘sowing and reaping ‘ 

Even in more difficult conditions, we are maintaining a clear and consistent policy of ‘sowing and reaping’. 

The ‘sowing’ side mainly involves the positioning of the company in the future. Especially now, it is 

important to keep intact our programs for the development of young personnel, the next generation 

of ships and techniques, and the implementation of new systems in ICT and elsewhere. Future results 

depend on current investments. 

The ‘reaping’ side now involves a greater emphasis on cost leadership and improving the efficiency of 

the organization. Strict cost control, and the use of ICT systems developed in recent years - the implementation 

of which is in progress or complete - will make a major contribution to the second of these 

areas. In terms of cost leadership, our new modified ships will make the difference in the market. 

We have the extended W.D. Fairway in the jumbo trailing suction hopper dredger class. In the smallsize 

trailing suction hopper dredger class, there is the award-winning Waterway with its advanced 

design and development, and her sister ship, the Coastway. Furthermore, the two multi-functional 

16,000 m 3 trailing suction hopper dredgers that are now being built and that will go into service in 2004 

will undoubtedly improve our competitive position. 

Continued profit growth 

in 2002, in part accounted 

for by good results on 

completed contracts 

Despite the global downturn, Boskalis profits still increased in 2002. The home markets, international 

projects, and niche activities all contributed. Nevertheless, the stagnating situation in Singapore exerted 

downward pressure in the second half of the year. It was possible to limit the effects by deploying ships 

elsewhere. Although the volume of work done in 2002 did not reach the level of 2001, the amount of 

completed contracts pushed up turnover (completed contracts) and the net profit. 

Orderbook remains healthy 

The orderbook at the end of the year amounted to € 1,273 million and was therefore still well filled. 

New orders were acquired in 2002 amounting to € 1,084 million. Given the conditions, this is altogether 

satisfactory. However, € 382 million of the portfolio did consist of work on land reclamation in Singapore, 

for which the completion timetable is currently uncertain. 

With respect to 2003: not 

pessimistic, but cautious 

Boskalis is certainly not pessimistic about 2003. The company will continue to invest in its leading 

market position and cost leadership. Investments in 2003 will be maintained at the same high level as 

2002. The modernization and extension program for the fleet will last until mid-2004. Investments will 

be financed from the company's own funds. This does not take into account the possibility of major 

expansion opportunities. 

The prevailing geopolitical and economic uncertainties do require a cautious approach to a numerical 

profit forecast for 2003. In qualitative terms, 2003 is expected to be a year with a lot of activity, increasing 

competition, pressure on margins here and there, high energy prices, and lower dollar rates. In short, 

2003 will be an uncertain year for the sector in which Boskalis will perform well given the circumstances. 

On behalf of the Board of Management, 

R. van Gelder 


Left Edgar van Herwijnen 

and right Gertjan Grundlehner. 

Wave patterns translated into working days 

Boskalis engineers defy the waves. Literally. 

The waves of the sea are the basis for their calculations 

about how many days a ship can work. 

“Satellites measure the waves around the globe”, 

explains engineer Edgar van Herwijnen. “We adapt 

that data for the region where we have projects planned 

or in progress.” To optimize these calculations, 

Boskalis is engaged in a research project with other 

dredging companies. In collaboration with the 

Norwegian meteorological institute Oceanor, World 

Waves is being developed, a computer program 

that makes projections on the basis of deep-sea 

wave movements for the project sites. 

But this information is not enough for Boskalis. 

The data about the waves then has to be linked up 

to the equipment used. This is the job of engineer 

Gertjan Grundlehner. “We try to decide exactly what 

a ship’s limits are in terms of where she can work. 

We have a theoretical model for the physical reality. 

What wave size, direction and frequency can a ship 

manage given her build? We work that out and then 

test our conclusions in practice.” 

Boskalis has developed its own computer models 

in this area and it is also involved in a joint research 

project for the dredging industry conducted by the 

Dutch Maritime Research Institute, MARIN. 

It is partly due to the emphasis on the development 

of support techniques of this kind that Boskalis 

can work efficiently and competitively on the international 

dredging market. But the effect is broader. 

Gertjan Grundlehner explains: “Once we have 

determined a ship’s limitations, we try to improve 

performance by making technical modifications. 

In this way, we can get more out of the ships.” 


“When it comes down to it, we make innovations 

so that other innovations will be possible.” 

Computer model with 

workable wave heights, 

wave directions and wave 

frequencies for the new 

grab on the fallpipe vessel 

Seahorse. 

“We try to determine exactly 

what a ship’s limits are in terms 

of when she can work”. 

Computer model showing 

wave diffraction round a 

breakwater. 


Report of the Board of Management on 2002 


INTRODUCTION 

After years of strong growth, it became clear in the second half of 2002 that the consequences of 

economic stagnation and geopolitical uncertainty were also being felt in the markets for maritime 

infrastructure. Nevertheless, 2002 was a year in which Boskalis was very active. Utilization of the 

fleet was again above-average, many projects were successfully completed and good progress 

was made with programs of innovation, fleet extension and fleet modernization. The past year was 

satisfactory, both in terms of the financial results, and policy and operational matters. 

FINANCIAL AFFAIRS 

Results and cash flow 

The results for 2002 were in accordance with expectations. Activities picked up slowly in the first half 

of the year in a few market segments (Scandinavia, Mexico and the Middle East) and the consequences 

of the sand problems in Singapore were clearly felt in the second half of the year. Nevertheless, turnover 

(completed contracts) was higher than in 2001 and a net result was achieved of € 82.1 million, more 

than 5% higher than in the previous year (€ 77.7 million). 

Net result 

This was mainly due to healthy margins on completed contracts, good fleet utilization and good 

(x € 1 million) 

contributions from Archirodon (30%) and associated company Lamnalco. 

90 

80 

78 

82 

Depreciation on fixed assets increased in 2002 as a result of investments in replacements and new 

70 

60 

58 

67 

equipment amounting to € 66.6 million (2001: € 62.2 million). 

50 

40 

30 

20 

10 

0 

47 

40 

37 

35 

32 

28 

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 

On balance, the operating result in 2002 increased to € 99.5 million (2001: € 97.7 million). In addition 

to good results, both in the home markets and on the international projects market, this increase was 

achieved thanks to the contribution from Archirodon and the completion of contracts that were carried 

out in part in previous years. The ratio of the operating result to turnover (completed contracts) was 

8.9% (2001: 9.0%). 

Cash flow 


149 

150 

140 

140 

130 

122 

120 

112 

110 

100 

93 

88 

90 

85 

80 75 

78 

71 

70 

60 

50 

40 

30 

20 

10 

0 

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 

The result from associated companies increased to € 9.8 million (2001: € 5.7 million). The largest 

associated company, Lamnalco, which is primarily active in the Middle East and Nigeria in harbor and 

offshore services, had another excellent year, in which the fruits were plucked of the investments in 

equipment made in 2001. 

Net interest revenues in 2002 were € 0.7 million (2001: € 3.4 million). The lower net revenues were 

caused by a lower liquidity position, primarily as a result of an intensive investment program. 

Taxation decreased to € 27.9 million (2001: € 29.1 million), which implies a tax rate of 25.4% (2001: 27.3%). 

Cash flow in 2002 rose to € 148.7 million (2001: € 139.9 million). 

30 



Turnover completed contracts 


Turnover, utilization and work done 

Turnover on the basis of completed contracts amounted to € 1,124 million in 2002, compared to 

€ 1,081 million in 2001. 

The turnover of work done, the volume of activity, was € 1,035 million (2001: € 1,083 million). 

1200 

1100 

1,081 1,124 

1000 

900 

800 

782 784 

882 

Turnover of work done according to market 

700 

600 

500 

486 

594 

499 520 

637 


400 

300 

200 

100 

0 

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 

Home markets 2002 2001 2000 1999 1998 

• The Netherlands 254 283 223 160 142 

• Rest of Europe 166 177 181 228 235 

• Outside Europe 186 167 190 108 76 

606 627 594 496 453 

Turnover work done 


1200 

International projects market ‘hit and run’ 377 400 302 285 306 

Specialist niche markets 52 56 64 70 42 

1,035 1,083 960 851 801 

1100 

1000 

900 

800 

700 

600 

500 

400 

300 

200 

100 

0 

1,083 

1,035 

960 

851 

801 

697 

582 

545 

569 

493 

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 

Home markets. In the home markets, turnover fell in 2002 to € 606 million (2001: € 627 million). 

The share of the home markets in the turnover of work done was 59%, as in 2001. The Boskalis 

home markets are: 


Portugal 

Germany 

Italy 

United Kingdom 

Mexico 

Finland 

United States 

Sweden 

Nigeria 

In Europe, the main fall in turnover was in the Netherlands. Here, after the record year of 2001, 

volume mainly fell in the sand trading and dry earth moving segments. Weaker markets also meant 

that turnover was down in Germany and Scandinavia compared to 2001. The United Kingdom had a 

better year and Portugal performed at the same level as in 2001. 

Outside Europe, turnover in Mexico was well down on 2001 and the level of activity in the United States 

was stable. Home market Nigeria had a strong year as the result of a sizeable order for Chevron. 

There was no turnover in Brazil in 2002 and the activities there were wound down because of the 

poor market prospects in that country. 




by market 

Home markets (59%) 

Specialist niche markets (5%) 

International projects markets (36%) 

Turnover of work done according to geographical 

area (x € 1 million) 

2002 2001 2000 1999 1998 

The Netherlands 254 283 223 160 142 

Rest of Europe 189 208 234 276 282 

Australia / Asia 207 265 148 146 143 

Middle East 132 61 64 66 90 

Africa 115 77 103 55 54 

North and South America 138 189 188 148 90 

1,035 1,083 960 851 801 

International projects market. On the international projects market, turnover in 2002 was € 377 million, 

6% less than in 2001. In addition, turnover in the Far East was lower on balance because of the sand 

problems on the land reclamation projects in Singapore in the second half of the year. Other large projects 

included harbor extensions in Pusan, South Korea and Jubail, Saudia Arabia, as well as ‘Palm Island’, 

the tourist island in sea in Dubai, and a new road link in Sri Lanka from the airport to the capital, Colombo. 

The level of activity was moderate in Africa, as in South America. Archirodon contributed throughout 

2002 and doubled its turnover contribution compared to 2001 to € 53 million. 

Specialist niche markets. In the specialist niche markets, the volume of activities for the offshore industry 

was comparable to 2001, with turnover amounting to € 52 million. 

Equipment utilization 

(in weeks per year) 

45 

43 

40 

40 

40 

40 38 

35 

31 

30 

30 

29 

29 

26 

25 

20 

15 

10 

5 

0 

1998 1999 2000 2001 2002 

cutter suction dredgers trailing suction hopper dredgers 

Equipment utilization in 2002 was good. The major cutter works in the Middle East meant that the large 

self-propelled cutter suction dredgers were well utilized, after an initially hesitant start to these works in 

the first quarter. The utilization rates for the smaller cutter suction dredgers were lower than in 2001, 

primarily because of the fall in turnover in home markets. On balance, utilization of the cutter suction 

dredger fleet rose to 31 weeks (2001: 29 weeks). Utilization of the trailing suction hopper dredger fleet 

was, as expected, down on 2001; this was primarily caused by the planned extension of the jumbo 

trailing suction hopper dredger W.D. Fairway, putting this vessel out of operation in the fourth quarter. 

Furthermore, this jumbo trailing suction hopper dredger was inoperative for seven weeks in the third 

quarter because no sand could be produced for the land reclamation project in Singapore. The other 

trailing suction hopper dredgers had high utilization rates. On balance, the trailing suction hopper 

dredger fleet was occupied for 40 weeks of the year (2001: 43 weeks). 

The total amount of acquired orders in 2002 was € 1,084 million (2001: € 1,093 million). Important 

new assignments were harbor extensions in Malaysia, Gothenburg, New York and Pusan (South Korea), 

a water drainage facility in Singapore (together with Archirodon) and a land reclamation project for 

Chevron in Nigeria. On balance, the orderbook increased from € 1,224 million at year-end 2001 to 

€ 1,273 million as at 31 December 2002. 

32 



Orderbook according to market 

as at 31 December (x € 1 million) 

Acquired work and 

orderbook 

as at 31 December 


1400 

1,354 

1300 

1,214 1,224 

1200 

1,093 

1100 

1000 924 

886 

900 

820 

785 

800 

700 

600 

500 

400 

300 

200 

100 

0 

1998 1999 2000 2001 

1,084 

2002 

1,273 

Home markets 2002 2001 2000 1999 1998 

• The Netherlands 199 241 243 231 177 

• Rest of Europe 89 71 75 99 132 

• Outside Europa 131 83 91 166 45 

419 395 409 496 354 

International projects market ‘hit and run’ 761 781 765 256 359 

Specialist niche markets 93 48 40 68 72 

1,273 1,224 1,214 820 785 

acquired work 

orderbook 

Investments, acquisitions, capital ratios and return 

The investment level was high again in 2002, mainly because of the fleet extension and modernization 

program that runs from 2001-2004. Investments of € 152 million (2001: € 134 million) were made in 

tangible fixed assets. The main investments were: 

• the construction of two trailing suction hopper dredgers, each with a capacity of 16,000 m 3 ; 

• the extension of the jumbo trailing suction hopper dredger W.D. Fairway (to more than 35,000 m 3 ); 

• the purchase of the fleet of the Italian company, Dragomar; 

• the completion of the Coastway, the new trailing suction hopper dredger (4,900 m 3 ); 

• a new sand dredger Hollandsch Diep in the Netherlands home market; 

• a new backhoe Nordic Giant in the Finland home market. 

Investments 


Furthermore, investments were made in numerous modifications and improvements in equipment, 

for example on Cosmos I, the trailing hopper suction dredger that operates in South America. 

160 

140 

120 

10 

12 

The book value of divestments was € 12 million (2001: € 10 million). The book result on divestments 

was € 0.4 million (2001: € 0.7 million), and this has been included under other operating income. 

100 

10 

9 

80 

60 

40 

12 

67 

86 

99 

124 

140 

J. van Vliet bv in Wormerveer (Holland) was taken over as at 1 January 2002. The company deals 

in reclaimed sand and operates as a contractor for civil and hydraulic engineering projects. 

20 

0 

1998 

1999 

net investments 

2000 

2001 

divestments 


The capital tied up in the associated companies increased by € 2 million to € 56 million, primarily 

because of growth achieved by Lamnalco. 

Working capital (stocks, work in progress, receivables less short-term liabilities) continued to be very 

negative: € 167 million (2001: € 179 million negative). 

Provisions fell to € 76 million as at year-end 2002 (2001: € 91 million). The principal components of this 

item were maintenance of equipment and deferred tax. Another major repairs program was carried out in 

the financial year. This led to both a reduction in the repairs provision and to an increase in fleet quality. 



All investments were financed with company funds. This meant that liquidity fell to € 109 million at 

the end of the financial year (year-end 2001: € 193 million). 

A part of this cash, € 47 million, was held by projects being executed in cooperation with third parties 

(2001: € 58 million). 

Equity, before inclusion of the proposed profit distribution, increased to € 413 million at the end of 

the financial year (year-end 2001: € 376 million). 

Equity to total assets as at 31 December 2002 was 41.6% (year-end 2001: 38.4%). 

The return on capital employed was 20.3% (2001: 21.4%), while return on equity was 20.8% (2001: 22.1%). 

Proposed profit appropriation 

An amount of € 49.4 million from the after-tax result will be added to other reserves. It is proposed 

to appropriate the balance of € 32.7 million for a dividend payment of € 1.26 per share, in stock or 

in cash. 

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. 

Average workforce 

3500 

3,246 3,233 3,257 

3,147 

3000 

2500 

2000 

1500 

1000 

500 

0 

1998 1999 2000 2001 

3,192 


Personnel & Organization 

At Boskalis, the workforce is central. With their expertise and skills, the employees are a critical success 

factor for the company. In order to safeguard the transfer of expertise and skills to the new generation of 

employees, systematic transfer was designated a focus area in 2002. 

In addition to a number of ongoing projects such as the International Dredging Academy – a training 

institution for people with a nautical background from the Netherlands and abroad for jobs on the Boskalis 

fleet – the Dredging in Practice course is now in place. This is a practical course for Dutch and foreign 

superintendents. The program covers all the theoretical areas of the dredging profession that superintendents 

may come across. The practical knowledge of experienced fleet and operational employees 

is also passed on. After the program, the participants receive individual assistance from mentors. 

In 2002, twenty members of staff took part in the Boskalis Leadership Development program. 

Specific career development, management development and competence-based management have 

enabled Boskalis to draw on its own potential for managerial positions. 

In the area of recruitment and selection, there was a particular emphasis, alongside the ongoing activities, 

on labor market communications and the relationship with schools and other training institutes. 

In 2002, the average size of the workforce was 3,192. At year-end 2002, the number of employees 

was 3,285 (3,119 at the end of 2001). 

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. 

34 



An encouraging development was the large number of new candidates for the elections in 2002. This 

is a sign that people know about the Works Council and that it plays an important role at our company. 

Number of accidents per 

million hours worked 

16 

14.3 

14 

12.2 

12 

10.9 

10 

8 

6 

Health, safety and the environment 

Safety-related activities in the past year were focused on further increasing safety awareness within the 

organization. This led to various safety inspections on works and ships. In the past year, a lot of work has 

also gone into training and the publication of a new in-house safety magazine with the title ‘Safety Matters’. 

The number of accidents in 2002 was down slightly compared to 2001, even though the number of 

hours worked increased. On balance, the accident rate (LTIF, the number of accidents per million hours 

worked) continued to fall in 2002. 

In mid-2002, the ISM code became obligatory for self-propelled seagoing dredgers. 

In addition to the unremitting emphasis on safety and health, the development of environmental 

dredging techniques is an important aspect of policy. 

Environmental dredging was a high priority again in 2002. Various projects were conducted under strict 

environmental requirements. Clients regularly asked Boskalis for advice about designing projects on 

environmentally acceptable lines and environmental monitoring systems developed by Boskalis were 

used on several projects (in Chile and Sweden, for example). A biologist was also recruited to the 

company’s team of environmental experts. This means that Boskalis can provide its clients with even 

better advice about biological issues when designing dredging works. 

4 

2 

0 

Equipment 

2000 

2001 


To maintain cost leadership, it is vital for Boskalis to have state-of-the-art equipment. So Boskalis has 

made considerable investments in a large fleet program involving the construction and modification of 

existing equipment. 

For example, the second half of 2002 saw the start of the extension of the jumbo trailing suction hopper 

dredger W.D. Fairway by 54 m, increasing her capacity to more than 35,000 m 3 . The ship went back into 

service in early February 2003. Good progress was also made on the construction of the two trailing 

suction hopper dredgers with a capacity of 16,000 m 3 that will be completed in 2004. 

At the end of 2002, Boskalis acquired the equipment from the liquidation of the Italian dredging company, 

Dragomar. The equipment consists mainly of the Cyrus, a large cutter suction dredger and the 

Rigelstar, a medium-sized trailing suction hopper dredger. The financial year also saw the purchase of 

the Nordic Giant, a large backhoe, and the Cosmos I, a trailing suction hopper dredger with a capacity 

of 6,000 m 3 . 

The trailing suction hopper dredger Waterway received the ‘Ship of the Year’ award in May 2002. The 

‘Ship of the Year’ award is granted by the Royal Netherlands Association of Maritime Technicians to the 

most technically-innovative ship to be built in the past year. The Waterway’s sister ship, the trailing 

suction hopper dredger Coastway, has been operational since February 2002. 

Equipment that is no longer required as a result of the construction of new equipment destined for the 

international projects market will be used in other market segments, sold or dismantled. 

As at the end of the period under review, the trailing suction hopper dredger Prins der Nederlanden 

had been decommissioned. In addition, the cutter suction dredger Oranje is no longer operational. 

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 and this is exploited continuously 

in order to produce innovations. 



A number of examples in this area have been elaborated in the texts you can find at various places 

in this annual report. The strategy involving an in-house research program and active participation in 

joint research was also continued in 2002. New measurement techniques for the fast and accurate 

measurement of line wear underwent thorough field testing. A lot of research went into the practicality 

of cutter suction dredging in rough seas, the reduction of spillages and overdepth, and the use of an 

underwater cutter for loosening very hard beds. With respect to the trailing suction processes, particular 

priority was given to the sedimentation of material in the hopper and the optimization of dragheads. 

A program was also launched for updating on-board instruments. 

Information and communications technology (ICT) 

Investments in hardware and software in recent years mean that Boskalis has good instruments in 

the ICT area for efficient operations. 

The ERP system was implemented in the United States in 2002. The implementation of the fleet 

management system also started there. 

A major step forward was the replacement and valuation of the estimating office systems used for the 

production estimations and cost price calculations. The replacement of the personnel management 

system is progressing steadily. The system will be operational in the second quarter of 2003. 

Prospects for the coming year 

Boskalis is certainly not pessimistic about 2003. Boskalis will continue to invest in its leading market 

position and cost leadership. Investments in 2003 will be maintained at the same high level as 2002. 

The modernization and extension program for the fleet will last until mid-2004. Investments will be 

financed from the company's own funds. This does not take into account the possibility of major 

expansion opportunities. 

The prevailing geopolitical and economic uncertainties do require a cautious approach to a numerical 

profit forecast for 2003. In qualitative terms, 2003 is expected to be a year with a lot of activity, increasing 

competition, pressure on margins here and there, high energy prices, and lower dollar rates. In short, 

2003 will be an uncertain year for the sector in which Boskalis will perform well given the circumstances. 

In conclusion 

Once again in 2002, the Boskalis workforce demonstrated its commitment and professionalism. They 

have had a considerable impact on the good result achieved by Boskalis in more difficult circumstances. 

We wish to express our sincere thanks to all those who have contributed in their various ways. 

Papendrecht / Sliedrecht, 11 March 2003 



Dr. P.A.M. Berdowski 

K.G. van Nes 

36 



The draghead of the jumbo 

trailing suction hopper dredger 

Queen of the Netherlands. 


Dick Bodegom, Chief Engineer 

Research & Development 

Fast settling with BeauDrain soil 

improvement technique 

Compared to ‘traditional’ soil improvement 

techniques, the BeauDrain system produces 

equally good - or even stronger - ground in 

half the usual time. 

For Chief Engineer Research & Development 

Dick Bodegom, an invention usually starts literally 

in his back garden. That was also the case with the 

BeauDrain. “Customers want ground that they can 

build on straightaway. You wonder how you can 

provide them with that. So you first try to understand 

how drainage works. Then you can decide 

what you can do to modify the process. And the 

best place to do that really is the garden. You have 

to feel what’s going on. That’s my motto.” 

BeauDrain is a soil improvement technique that 

combines the two known drainage methods 

(vertical and horizontal) with a vacuum technique. 

A machine developed by Boskalis installs both 

vertical drains and a horizontal drainage pipe in 

the soil in a single pass. They are linked up to one 

another and then a drainage pump removes all 

the air from the system. The resulting difference 

in pressure pushes the groundwater towards the 

vertical drains, which then transport the water 

upwards to the horizontal drainage pipe. The 

drainage pump then removes the water. 

In this way, the earth body reaches half the forecast 

strength after just a few weeks. Because, in 

addition, the forces exerted by the underpressure 

that is generated are directed inwards, the risk of 

the earth body ‘collapsing’ when it is raised is 

reduced. This means that a heavier bank can be 

positioned sooner. 

All in all, BeauDrain saves an enormous amount 

of time and that is a major step forward in a world 

where ‘speed’ is the magic word. 


“Innovation also means combining existing 

techniques in new, smart ways.” 

An operator on the 

BeauDrain machine. 

The complete drainage 

system is installed in a 

single pass. 

The BeauDrain soil improvement 

technique developed by Boskalis 

is already being used successfully 

in practice, like here in Alphen 

aan den Rijn, the Netherlands. 

Longitudinal section 

showing BeauDrain 

installation. 


Report of the Supervisory Board 


Financial statements 

The Supervisory Board is pleased to present the annual report to the Annual General Meeting of 

Shareholders in accordance with Article 26(3) of the Articles of Association. 

The Annual Report 2002, 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 financial statements, including the proposed profit appropriation; 

• the discharge of the members of the Board of Management in respect of their management activities 

and the members of the Supervisory Board for their supervision thereof during the year 2002; 

• the distribution of a dividend to shareholders of € 1.26 per share. 

Membership of the Board of Management 

The Board of Management remained unchanged in the year under review. The Board of Management 

consists of three members. 

Membership of the Supervisory Board 

The Supervisory Board is composed of five members. Given the company’s current size and complexity, 

the Board considers this adequate, without precluding future changes in the size of the Board if required. 

The Board believes it has a balanced membership which is in accordance with the prevailing profile for 

the membership of the Supervisory Board. 

Mr. M. van der Vorm and Mr. A.A. Westerlaken will retire from the Board by rotation on 14 May 2003. 

Messrs. Van der Vorm and Westerlaken have expressed their availability for reappointment and the 

Supervisory Board intends to reappoint them. 

Activities of the Supervisory Board 

The Board had five meetings with the Board of Management during the period under review, one of 

which was combined with a working visit to the Middle East lasting several days. 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 environment. 

In response to questions during the Annual General Meeting of Shareholders in 2002, there were 

extensive discussions about the reintroduction of the stock dividend. It was decided that, subject to 

approval of the financial statements, a dividend of € 1.26 will be distributed to the shareholders for 

2002. Shareholders may opt to take this dividend entirely in stock or entirely in cash. 

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. 

40 



The Board has taken a long look at the desirability of an Audit Committee and has concluded that it is 

preferable to invest energy in the broadest possible way in the assessment of matters relating to financial 

reporting by the entire Board. Partly in view of the limited size of the Board, the full and transparent 

financial reporting in the organisation and the direct linkage to operational issues and risks, the Board 

has decided to grant the status of Audit Committee to the Board as a whole. In addition, it has also 

been noted that the entire Board considers discussions with the auditor to be of major importance. 

The Remuneration Committee has advised the Supervisory Board about remuneration for the Board 

of Management. The objective of the remuneration policy is to establish a structure for remuneration 

and employment conditions such that the remuneration for the members of the Board of Management 

can be considered to be adequate compared to the market for comparable companies. This takes 

into account a fixed remuneration component and short- and long-term performance elements. 

In accordance with the current corporate governance policy, the Supervisory Board meets at least 

once a year without the Board of Management. On that occasion, the performance of the Supervisory 

Board and of the Board of Management are evaluated. 

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 Supervisory Board extends its compliments to the company’s employees and the Board of 

Management for the results achieved and the policy pursued in 2002 and expresses its special 

appreciation for the dedication and commitment shown by all. 


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. 


Left Frances Buirma, director Personnel and Organization, 

in the middle Gert Blom, Project director and right 

Jan Eygenraam, head of Research and Development. 

Knowledge transfer creates a lead 

“You can’t learn about dredging from books 

alone. Much expertise is lodged in the minds of 

experienced personnel. Boskalis looks for ways 

of transferring that expertise efficiently to the 

new generation”, says Frances Buirma, director 

Personnel and Organization. 

Project director Gert Blom wrote a manual for 

young superintendents and developed, in collaboration 

with a training institute, the course 

‘Dredging in Practice’. 

“The manual contains the specifications of all 

Boskalis equipment. ‘What can this backhoe do?’ 

‘How do you go about submerging a pipe?’ It has 

turned into a real reference work. In the course, 

people from the practical side - masters, captains, 

chief inspectors from the Technical Department - pass 

on their expertise and experience. They also act as 

mentors for the people on the course for six months. 

But that’s not all. The ability to run a project involves 

being able to think logically. The course deals with 

this side by looking at management skills and 

practising with cases taken from real life. And it 

works. You see people getting better.” 

Boskalis has simulators for trailing suction hopper 

dredgers and cutter suction dredgers. The simulators 

are specially designed for training purposes. 

“It’s incredible how much fun they are to work with 

and how much you learn from them”, says Jan 

Eygenraam, who developed some of the teaching 

materials for the International Dredging Academy. 

“And they are very true to life. You can even introduce 

different types of seas”, he continues. 

Since the simulator is structured like a cabin and 

because of the projection of the ship’s bow on the 

water, it really is just like being at sea. “As a result, 

some people find it difficult to try out new things. 

They panic if something goes wrong. But all you 

need to do is press the reset button and start 

again”, he adds. These simulators allow fleet crews 

to learn new things and superintendents to acquire 

practical experience. They can also be used to test 

and pass on new techniques “in practice”. 


“Structural knowledge transfer gets us ahead 

in the innovation stakes.” 

The “Dredging in Practice” 

manuals that were specially 

developed for young superintendents. 

One of the operating rooms in 

the cutter suction dredger simulator. 

“Since the simulator is 

structured like a cabin and 

because of the projection of the 

ship's bow on the water, it really 

is just like being at sea”. 

Knowledge transfer in 

practice. Here on board 

the jumbo trailing suction 

hopper dredger Queen of 

the Netherlands. 


The trailing suction hopper 

dredger Cornelis Zanen 

was deployed in 2002 for the 

expansion of the Kwai Chung 

container harbor in South Korea. 


Financial Statements 2002 

Principles of financial reporting 

General 

The financial statements on pages 45 to 64 inclusive 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. 

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. Important 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. 



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 depreciation charges are based upon the expected economic life of the assets. For the fleet, life 

expectancy is in general 15-18 years and 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 deemed necessary. 

Work in progress 

Work in progress is valued at cost (wages, materials, other direct costs and charges for plant 

employed) without any surcharge for general overhead costs. If losses on works in progress are 

anticipated, provisions are made. 

On large long-term contracts (with a contract value of € 25 million or more), where such calculations can 

be made on a reliable basis, profits are accounted for as the work proceeds on the basis of costs incurred. 

Progress payments invoiced and advance payments received are deducted from Work in progress. 

46 



Provisions 

Provisions are made for commitments and contingencies 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 of a foreign group company and has been 

discounted at the rate of 6%. 

Net turnover 

Net turnover is the cash value of contracts completed during the year for third parties, calculated from 

contract commencement to contract completion, together with the value of the work done during the 

year on large long-term contracts, as explained in the accounting principles for Work in progress. 

The share of Royal Boskalis Westminster nv in the turnover of joint ventures, calculated on the same 

basis, is also included. 

Operating result 

The operating result consists of: 

• results of contracts completed or almost completed during the financial year; 

• profits on large long-term contracts not yet completed, if the results can be determined 

on a reliable basis; 

• movements in the provisions for anticipated losses on work in progress; 

• deferred profits from contracts completed in earlier years, realized during the financial year 

under review; 

• 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 results on 

the sale of tangible fixed assets and currency results. 

Result from associated companies 

This relates to the share of Royal Boskalis Westminster nv of 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. 

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. 



Consolidated balance sheet before profit appropriation (1) 

(in € 1,000) 31 December 2002 31 December 2001 *) 

Fixed assets 

Tangible fixed assets (2) 544,700 479,834 

Financial fixed assets 

• associated companies (3) 56,271 54,280 

• other financial fixed assets (4) 4,152 4,435 

60,423 58,715 

Total fixed assets 605,123 538,549 

Current assets 

Inventory 25,769 20,715 

Work in progress (5) ( 126,938 ) ( 91,550 ) 

Debtors and prepayments (6) 380,771 318,976 

Bank deposits and cash (7) 108,574 193,179 

Total current assets 388,176 441,320 

Current liabilities 

Creditors and accruals (8) 446,521 427,421 

Repayments and bank debts (9) 8,807 20,696 

Total current liabilities 455,328 448,117 

Net current assets ( 67,152 ) ( 6,797 ) 

Total assets less current liabilities 537,971 531,752 

Long-term loans (10) 8,707 13,741 

Long-term liabilities (11) 40,571 51,220 

Provisions (12) 75,703 90,822 

Shareholders’ equity (13) 412,990 375,969 

537,971 531,752 

(1) The figures in brackets outside the columns refer to the explanatory notes (see pages 51 - 59). 

*) Adjusted for comparison purposes. 

48 



Consolidated profit and loss account (1) 

(in € 1,000) 2002 2001 

Net turnover (16) 1,123,510 1,081,452 

Movement in work in progress ( 88,704 ) 1,483 

Other operating income (17) 983 2,473 

Total operating income 1,035,789 1,085,408 

External costs (18) ( 703,746 ) ( 767,838 ) 

Wages and salaries (19) ( 139,069 ) ( 133,778 ) 

Social security costs (20) ( 26,814 ) ( 23,862 ) 

Depreciation of tangible fixed assets (2) ( 66,649 ) ( 62,214 ) 

Total operating costs ( 936,278 ) ( 987,692 ) 

Operating result 99,511 97,716 

Interest received 4,497 6,987 

Interest paid ( 3,778 ) ( 3,550 ) 

Result from associated companies (3) 9,758 5,703 

Net financial income 10,477 9,140 

Result before taxation 109,988 106,856 

Taxation (21) ( 27,892 ) ( 29,138 ) 

Net result 82,096 77,718 

Profit per share (€ 1.00) *) 3.16 3.00 

Profit per share, fully diluted (€ 1.00) **) 3.16 3.00 


*) 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. 



Consolidated cash flow statement 


Cash flow from operations 

Net result 82,096 77,718 

Depreciation 66,649 62,214 

Cash flow 148,745 139,932 

(Increase) / decrease working capital ( 12,360 ) 45,813 

Increase financial fixed assets ( 6,653 ) ( 355 ) 

(Decrease) / increase long-term liabilities ( 10,649 ) 13,625 

Decrease provisions ( 15,119 ) ( 16,829 ) 

Direct movements in reserves and other movements ( 54 ) ( 2,039 ) 

Net cash flow from operations 103,910 180,147 

Investments 

Net investments in tangible fixed assets ( 140,089 ) ( 123,703 ) 

(In) / out of consolidation ( 1,774 ) 8,139 

Acquisitions and disposals of group companies 

and associated companies 1,231 ( 3,189 ) 

Total investments ( 140,632 ) ( 118,753 ) 

Financing 

Decrease long-term loans + repayments on long-term loans ( 2,866 ) ( 1,450 ) 

Payment of dividend previous financial year ( 30,960 ) ( 27,129 ) 

Total financing ( 33,826 ) ( 28,579 ) 

Net cash flow from investments and financing ( 174,458 ) ( 147,332 ) 

(Decrease) / increase in bank deposits and 

cash/other short-term bank debts ( 70,548 ) 32,815 

Bank deposits and cash/other short-term bank debts 

As at 1 January 173,595 140,780 

As at 31 December 103,047 173,595 

(Decrease) / increase in bank deposits and 

cash/other short-term bank debts ( 70,548 ) 32,815 

50 



Explanatory notes to the consolidated balance sheet 

and profit and loss account 

1. General 

Unless stated otherwise, all amounts in these explanatory notes are in thousands of euros. 

The consolidated balance sheet was, by contrast with previous years, drawn up before profit 

appropriation. The comparative figures have been adjusted accordingly. 

The most important group companies included in the consolidation of Royal Boskalis Westminster nv are: 


Aannemersbedrijf M. de Haan bv, 

Drachtstercompagnie 

Aannemingsmaatschappij Markus bv, 

Halfweg 

Archirodon Group NV, Dordrecht (30%) 

Baggermaatschappij Boskalis bv, 

Papendrecht 

Baggermaatschappij Breejenbout bv, 

Papendrecht 

Baggermaatschappij Holland bv, 

Papendrecht 

Beleggingsmaatschappij Zanen 

Verstoep bv, the Hague 

Boskalis Dolman bv, Dordrecht 

Boskalis International bv, Sliedrecht 

Boskalis Markus bv, Papendrecht 

Boskalis Offshore bv, Papendrecht 

Boskalis bv, Rotterdam 

Boskalis Zinkcon bv, Papendrecht 

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 (new) 

Hydronamic bv, Sliedrecht 

Zanen Verstoep bv, Papendrecht 

Zinkcon Contractors bv, Papendrecht 

Zinkcon Dekker bv, Papendrecht 

Zinkcon International bv, Sliedrecht 

Other areas 

Boskalis Westminster Ltd, Fareham 

(United Kingdom) 

Rock Fall Company Ltd, Ayrshire (United Kingdom) 

Westminster Dredging Company Ltd, Fareham 

(United Kingdom) 

Zanen Dredging and Contracting Company Ltd, 

Fareham (United Kingdom) 

Boskalis Zinkcon Ltd, Fareham (United Kingdom) 

Irish Dredging Company Ltd, Cork (Ireland) 

Boskalis Sweden AB, Göteborg (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) 

Zinkcon Marine Singapore Pte Ltd (Singapore) 

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. 



2. Tangible fixed assets 

Land and Floating Other Fixed assets Tangible Total 

buildings and other fixed not engaged fixed assets 

construction assets in normal under 

equipmentl operations construction 

Balance as at 1 January 2002 

Cost 48,901 976,877 38,701 482 72,081 1,137,042 

Depreciation ( 20,505 ) ( 612,546 ) ( 23,996 ) ( 161 ) – ( 657,208 ) 

Net book value 28,396 364,331 14,705 321 72,081 479,834 

Movements 

Additions 691 38,890 7,876 4 104,631 152,092 

In/(out of) consolidation – 1,759 15 – – 1,774 

Taken into service 7,668 67,371 22 – ( 75,061 ) – 

Disposals at net book value ( 1 ) ( 6,703 ) ( 5,299 ) – – ( 12,003 ) 

Depreciation ( 2,876 ) ( 59,132 ) ( 4,624 ) ( 17 ) – ( 66,649 ) 

Currency fluctuations 

& other movements ( 114 ) ( 9,251 ) ( 610 ) ( 27 ) ( 346 ) ( 10,348 ) 

Total movements in 2002 5,368 32,934 ( 2,620 ) ( 40 ) 29,224 64,866 

Balance as at 31 December 2002 

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 

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 € 1.5 million, 

representing land used for sand production, has been accounted for under land and buildings (2001: 

€ 1.7 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% 

52 



Movements during 2002 were as follows: 

Book value as at 1 January 2002 54,280 

Share of results 9,758 

Dividends received ( 3,105 ) 

Investments/divestments ( 1,231 ) 

Currency fluctuations & other movements ( 3,431 ) 

Book value as at 31 December 2002 56,271 

4. Other financial fixed assets 


Book value as at 1 January 2002 4,435 

Other movements ( 283 ) 


5. Work in progress 2002 2001 

Work in progress 274,318 356,512 

Progress payments ( 401,256 ) ( 448,062 ) 

( 126,938 ) ( 91,550 ) 

Work in progress includes contracts of which the value of work done exceeds 

customer progress payments. At year-end 2002, the total amounts of the value 

of work done and the customer progress payments of these contracts were 

€ 62.2 million and € 44.2 million respectively. The movement in Work in progress 

in the consolidated profit and loss account does not equal the movement in Work 

in progress in the balance sheet. This difference is caused by currency translation 

differences and the accounting treatment of large long-term contracts. 

6. Debtors and prepayments 2002 2001 

Trade debtors 196,003 149,417 

Amounts due from associated companies 22,077 19,801 

Other debtors and prepayments 162,691 149,758 

380,771 318,976 

Included in Other debtors and prepayments as at the end of 2002 are 

receivables amounting to € 4.7 million which do not fall due within one year 

(2001: € 2.8 million) 



7. Bank deposits and cash 

This includes € 46.9 million (2001: € 58.1 million) of joint-venture funds. In addition, 

at year-end 2002, € 6.2 million was in frozen accounts (2001: € 15.1 million). 

The remaining funds at the end of 2002 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 discounted value of these lease obligations, amounting to 

€ 69.0 million as per 31 December 2002 (2001: € 70.1 million), is offset against 

the value of the currency swap and the related deposits, which also amounts to 

€ 69.0 million. 

8. Creditors and accruals 2002 2001 

Trade creditors 85,544 97,810 

Corporate taxes 55,334 36,055 

Other taxes and social security payables 29,422 32,796 

Amounts due to associated companies 8,426 10,216 

Other creditors and accruals 267,795 250,544 

446,521 427,421 

9. Repayments and bank debts 2002 2001 

Repayments on long-term loans 3,280 1,112 

Other debts 5,527 19,584 

8,807 20,696 

With respect to an amount of € 2.1 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 2002, the average interest rate for the long-term loans was 

3.4%. The average remaining maturity period of these loans is approximately 

2 years. Long-term loans with a remaining term in excess of 5 years are approximately 

nil. The repayments due in 2003 are accounted for under Repayments 

and bank debts. By means of a mortgage on equipment and silent pledge, 

securities have been provided in respect of € 0.7 million of the long-term loans 

outstanding as at year-end 2002. 

54 



11. Long-term liabilities 2002 2001 

Taxes 16,142 25,557 

Other creditors and accruals 24,429 25,663 

40,571 51,220 

Long-term taxes payable consist of taxes that are due after one year but 

expected to be due within 5 years. 

No interest is due on other creditors and accruals and payment is expected 

to be due after 5 years. 

12. Provisions 2002 2001 

Deferred taxation 22,811 19,013 

Maintenance and repair 45,837 64,749 

Pensions 3,810 3,673 

Other 3,245 3,387 

75,703 90,822 

The provision for deferred taxation mainly refers to temporary differences 

between the fiscal and commercial valuation of equipment lasting more than 

one year. Deferred tax assets are not capitalized as a result of uncertainties in 

the fiscal treatment of profits subject to taxation in The Netherlands and 

abroad. For maintenance and repair, amounts of approximately € 90 million 

(2001: approximately € 102 million) have been charged to the profit and loss account. 

Repairs amounting to approximately € 109 million (2001: approximately 

€ 119 million) were carried out during the 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. 

13. Shareholders’ equity 

Reference is made to notes 3. - 5. of the explanatory notes to the company 

balance sheet and profit and loss account. 

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 currencies 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 long-term loans 

payable are fixed for the entire maturity period. This is achieved by contracting 

loans with a fixed interest rate or by using derivatives, such as interest rate swaps. 

Given the nature of the activities and the corresponding strong fluctuations in 

cash flows, the available cash funds are usually not tied up for periods longer 

than one year. Royal Boskalis Westminster nv applies a strict acceptance and 

hedging policy with regard to 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 market value of the off-balance-sheet 

financial instruments as at 31 December 2002 reflects the unrealized result at 

revaluation of the contracts against calculated forward exchange rates. 

As at 31 December 2002 the unrealized positive result amounts to € 39 million 

(2001: € 1 million negative). 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 € 362 million (2001: € 264 million). 

15. Commitments and contingent liabilities 

The guarantee commitments as at 31 December 2002 amount to € 551 million 

and can be specified as follows (x € 1 million): 

Guarantees provided by third parties on behalf of: 2002 2001 

• associated companies 30 42 

• contracts and joint ventures 475 423 

• lease obligations and other financial obligations 46 56 

551 521 

For the above guarantees outstanding at the end of 2002, counter-guarantees 

have been provided to financial institutions for approximately € 551 million 

(2001: approximately € 521 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. 

56 



Group companies are jointly and severally liable for the non-consolidated part of the liabilities of their 

joint ventures, in total € 181 million. In addition, certain recourse obligations exist in respect of project 

financiers. Where deemed necessary, 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 2002 amounted to approximately € 155 million. 

16. Net turnover 

For the net turnover, in respect of contracts completed and specified per geographical 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 2002, amounted to € 1,035 million (2001: € 1,083 million). 

17. Other operating income 

This relates to profits realized on the disposal of tangible fixed assets and currency results on transactions. 

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. 

19. Wages and salaries 

The emoluments for directors and members of the supervisory board of Royal Boskalis Westminster nv 

for 2002 were as follows: 

Members of Board of Management 

Salaries and other Pensions Bonuses Total 

emoluments 

R. van Gelder 374 80 212 666 

P.A.M. Berdowski 320 54 160 534 

K.G. van Nes 266 47 137 450 

960 181 509 1,650 

Members of Supervisory Board 

S.D. de Bree 25 – – 25 

J. Aalberts 18 – – 18 

M.W. Dekker 18 – – 18 

M. van der Vorm 18 – – 18 

A.A. Westerlaken 18 – – 18 

97 – – 97 

Total 1,057 181 509 1,747 



The bonuses were given for the achievement of certain targets during the 2001 

financial year. In 2001, the remuneration for members of the Board of Management 

and Supervisory Board amounted to € 1.6 million and € 0.1 million respectively. 

No loans or guarantees have been provided to, or on behalf of, the managing 

and supervisory directors. At the end of 2002, the group companies included in 

the consolidation had a total of 3,285 employees (2001: 3,119) of whom 1,804 

(2001: 1,865) were paid on a weekly basis. The average number of employees 

in 2002 was 3,192 (2001: 3,257). 

20. Social security costs 

These include an amount of € 11.4 million for pension costs (2001: € 7.5 million). 

21. Taxation 

The operational activities of Royal Boskalis Westminster nv are subject to various 

tax regimes with tax rates varying from 4% 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 

25.4 % (2001: 27.3%). 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): 

2002 2001 

Weighted average tax rate 28.1 30.1 

Tax effect of: 

Utilization of non-capitalized losses carried forward ( 4.9 ) ( 7.4 ) 

Non-capitalized future losses carried forward 3.9 10.5 

Results not subject to taxation and non-deductible costs ( 5.2 ) ( 2.8 ) 

Non-deductible and exceptional regimes 3.5 ( 3.1 ) 

Effective tax rate 25.4 27.3 

Taxation consists entirely of taxes on results from operating activities. 

22. Segmentation 

Royal Boskalis Westminster nv is a dredging company with international operations 

and a strong focus. The necessary assets are in general 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. 

58 



To understand the return and risk profile of Royal Boskalis Westminster nv, it is 

therefore less relevant to provide detailed information 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. 

The consolidated information per geographical segment can be specified as 

follows (x € 1 million): 

2002 2001 

Net Total Total Net Total Total 

turnover book value investments turnover book value investments 

completed tangible tangible completed tangible tangible 

contracts fixed assets* fixed assets* contracts fixed assets* fixed assets* 

The Netherlands 311 236 

Rest of Europe 174 228 

Australia / Asia 209 280 

Middle East 162 44 

Africa 114 91 

North and South America 154 202 

1,124 545 152 1,081 480 134 

*) 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. 



Company balance sheet before profit appropriation (1) 

(in € 1,000) 31 December 2002 31 December 2001 *) 

Fixed assets 

Investment in group company (2) 414,705 374,976 

Total fixed assets 414,705 374,976 

Current assets 

Amounts due from group companies – 993 

Total current assets – 993 

Current liabilities 

Amounts due to group companies 1,715 – 

Total current liabilities 1,715 – 

Net current assets ( 1,715 ) 993 

Total assets less current liabilities 412,990 375,969 

Shareholders’ equity 

Issued and fully paid share capital (3) 63,520 63,520 

Share premium reserve (4) 17,650 17,650 

Other reserves (5) 249,724 217,081 

Non-distributed profit 82,096 77,718 

412,990 375,969 



60 



Company profit and loss account (1) 


Company result ( 1,512 ) ( 283 ) 

Result of group company (2) 83,608 78,001 

Net result 82,096 77,718 




Explanatory notes to the company balance sheet and profit and loss account 

1. General 

Unless stated otherwise, all amounts in these explanatory notes are stated in 

thousands of euros. The company balance sheet was, by contrast with previous 

years, drawn up before profit appropriation. The comparative figures have 

been adjusted accordingly. 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. 


Book value as at 1 January 2002 374,976 *) 

Dividend received 2001 ( 30,000 ) 

Changes in ownership of own ordinary shares 893 

Currency translation differences ( 14,772 ) 

Result of group company 83,608 


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: 2002 2001 

Balance as at 1 January 63,520 60,050 

Increase due to par value conversion from guilders to euros – 3,470 

Balance as at 31 December 63,520 63,520 

Movements in the number of ordinary shares and depositary receipts of shares 

owned by the company were as follows: 2002 2001 


Exercised option rights ( 53,500 ) ( 35,500 ) 


The issued and fully paid share capital as at 31 December 2002 consists of 

26,466,853 ordinary shares with par value € 2.40 each, and consequently 

amounts to € 63.5 million. Of the issued and fully paid share capital as at 

31 December 2002, 496,744 ordinary shares are owned by Royal Boskalis 

Westminster nv. In 1997 and 1998, option rights were granted to twenty 

senior managers of Royal Boskalis Westminster nv and its group companies. 

In 2002, no option rights were granted. 


62 



The number of outstanding options as at 31 December 2002, with one option 

entitling the holder to one ordinary share, was as follows: 

Year Outstanding Exercised Outstanding Exercise Maturity 

granted options as options options as at price 

at 1 January 

31 December 

Directors 

R. van Gelder 1997 17,500 ( 17,500 ) – € 17.38 21 May 2002 

1998 20,000 – 20,000 € 15.70 8 April 2003 

K.G. van Nes 1997 8,000 ( 8,000 ) – € 17.38 21 May 2002 

45,500 ( 25,500 ) 20,000 

Staff 1997 6,000 ( 6,000 ) – € 17.38 21 May 2002 

1998 32,000 ( 22,000 ) 10,000 € 15.70 8 April 2003 

38,000 ( 28,000 ) 10,000 

Total 1997 31,500 ( 31,500 ) – € 17.38 21 May 2002 

1998 52,000 ( 22,000 ) 30,000 € 15.70 8 April 2003 

83,500 ( 53,500 ) 30,000 

The number of shares owned by directors as at 31 December 2002 is as follows: 

R. van Gelder 17,500 

17,500 

4. Share premium reserve 

Movements were as follows: 2002 2001 


Decrease due to par value conversion from guilders to euros – ( 3,470 ) 


€ 17.2 million of the share premium reserve is distributable free of tax. 

5. Other reserves 

Movements were as follows: 2002 2001*) 


Profit appropriation for previous reporting year 46,758 40,055 

Issue of formerly purchased own ordinary 

shares for purposes of exercised options 893 540 

Currency translation differences and other movements ( 15,008 ) ( 2,578 ) 


A legal reserve for non-distributed profits of group and/or associated companies 

was not required at the end of 2002. 




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 € 4 million at the end of 2002 (2001: € 4 million). 

Furthermore, the long-term operational lease commitments of a foreign group 

company have been guaranteed for approximately € 5 million (2001: € 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. 


Supervisory Board 

S.D. de Bree 

J. Aalberts 

M.W. Dekker 

M. van der Vorm 

A.A. Westerlaken 



Dr. P.A.M. Berdowski 

K.G. van Nes 

64 


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 Board 

of Supervisory Directors. 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 Board of Supervisory Directors. 

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 Board of Supervisory Directors, 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. 



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, € 49.4 million of the net result after tax will 

be added to other reserves. It is proposed to appropriate the balance of € 32.7 million for a dividend 

payment of € 1.26 per share. 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; € 1.26 per share will be distributed, after the deduction of dividend tax. 

The option period will start on 16 May and end on 27 May next. The conversion ratio between the stock 

dividend and the cash dividend will be announced on 27 May, after closing of the Euronext Exchange. 

The conversion ratio will be determined on the basis of the average of the closing rate of the Boskalis 

share on that day and the closing rates of the two preceding days. The new shares will share in the 

profit for the 2003 financial year and subsequent years. 

Auditor’s Report 

Introduction. We have audited the 2002 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 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. We believe that our audit provides 

a reasonable basis for our opinion. 

Opinion. In our opinion, the financial statements give a true and fair view of the financial position of the 

company at 31 December 2002 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, 11 March 2003 

KPMG Accountants N.V. 

66 


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 2003 

Royal Boskalis Westminster nv 



The Board 


Ten years Boskalis 

Ten years Boskalis (1) Annual Report 2002 

(amounts x € 1 million, unless stated otherwise) 

2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 

Turnover (work done) 1,035 1,083 960 851 801 697 569 493 582 545 

Turnover (completed contracts) 1,124 1,081 882 784 782 637 520 499 594 486 

Orderbook (work to be done) (2) 1,273 1,224 1,214 820 785 661 593 400 322 429 

EBIT (3) 109.3 103.4 89.7 77.6 63.2 44.2 32.0 33.8 41.0 40.0 

EBITDA (4) 175.9 165.6 144.9 131.6 108.7 92.0 74.6 79.8 88.8 80.8 

Net result 82.1 77.7 67.2 57.5 47.1 37.3 28.2 32.2 40.1 34.6 

Depreciation 66.6 62.2 55.2 54.0 45.5 47.8 42.6 46.0 47.8 40.8 

Cash flow 148.7 139.9 122.4 111.5 92.6 85.1 70.8 78.2 87.9 75.4 

Shareholders’ equity (2) 413.0 376.0 327.4 288.8 253.5 225.3 203.2 184.0 165.0 133.2 

Average number of outstanding shares 

(x 1,000) (8) 25,949 25,900 25,784 25,902 25,941 25,788 25,650 25,441 25,200 24,999 

Number of outstanding shares (x 1,000) (9) 25,970 25,917 25,881 25,902 25,941 25,788 25,650 25,441 25,200 24,999 

Personnel (number of persons) (2) 3,285 3,119 3,295 3,186 3,115 3,075 3,179 2,679 2,905 2,768 

Ratios (percentages) 

Operating result as % of the turnover 8.9 9.0 9.6 9.4 7.3 6.5 5.5 6.2 6.5 7.2 

Return on capital employed (5) 20.3 21.4 21.0 20.8 18.3 15.2 12.6 15.7 21.9 23.4 

Return on equity (6) 20.8 22.1 21.8 21.2 19.7 17.4 14.5 18.4 26.9 28.8 

Solvency (2/7) 41.6 38.4 37.5 39.6 18.7 16.6 16.8 17.2 15.4 12.8 

Figures per share (x € 1.00) 

Profit (8/10) 3.16 3.00 2.61 2.22 1.82 1.45 1.10 1.27 1.59 1.38 

Cash flow (8) 5.73 5.40 4.75 4.30 3.57 3.30 2.76 3.07 3.49 3.02 

Shareholders’ equity (2/9) 15.90 14.51 12.65 11.15 9.77 8.74 7.92 7.23 6.55 5.33 

Dividend 1.26 1.20 1.05 0.90 0.73 0.57 0.50 0.50 0.57 0.50 

Share price range (x € 1.00) 

(Depositary receipts of) ordinary shares 17.80 25.15 16.50 10.50 8.85 13.93 10.39 8.08 15.61 11.66 

35.55 37.15 30.50 18.40 18.38 20.42 16.38 16.25 23.60 22.92 

(1) Figures taken from the financial statements. 

(2) As at 31 December. 

(3) Consists of earnings before interest and taxation. 

(4) Consists of earnings before interest, taxation, depreciation and amortization. 

(5) Net result + interest paid on long-term loans as % of the average capital employed (shareholders' equity + long-term loans). 

(6) Net result as % of the average shareholders’ equity. 

(7) Shareholders’ equity as % of the balance sheet total (fixed assets + current assets). 

(8) Weighted average number of outstanding shares less the number of shares owned by the company. 

(9) Number of outstanding ordinary shares less the number of shares owned by the company. 

(10) The dilution effect was practically nil up to the financial year 2002. 

68

Legal structure 

Legal structure 

Royal Boskalis Westminster nv 

Boskalis Westminster Dredging bv 

Holding and service 

companies 

A selection of operating companies and participating interests 

Baggermaatschappij 

Boskalis bv 


Aannemersbedrijf M. de Haan bv 

Boskalis Dolman bv 

Hydronamic bv 

J. van Vliet bv 

A.H. Breijs & Zonen bv 

Boskalis Markus bv 

Zinkcon Dekker bv 

Baggermaatschappij Holland bv 

Boskalis 

Westminster Ltd 

Westminster Dredging Company Ltd Boskalis Zinkcon Ltd 

Westminster Gravels Ltd 

Rock Fall Company Ltd 

Zanen Dredging & Contracting Co. Ltd RW Aggregates Ltd (50%) 

PVW Int. Dredging & Harbour Works Ltd 

Boskalis 

Westminster 

International bv 

Archirodon Group N.V. (30%) 

Coastal and Inland Marine Services Inc. 

Atlantique Dragage SARL 

Delta GmbH 

Bean Stuyvesant LLC (50%) Dragamex SA de CV (50%) 

Boskalis Australia Pty Ltd 

Dravensa CA 

Boskalis Dragomar S.r.l. Enka-Boskalis AS (50%) 

Boskalis Dredging India Ltd 

Heinrich Hirdes GmbH 

Boskalis International bv 

Heinrich Hirdes Wasser- und Tiefbau GmbH 

Boskalis International Egypt SAE Koon Zinkcon Pte Ltd (50%) 

Boskalis International (M) Sdn Bhd Nigerian Westminster Dredging & Marine Ltd (60%) 

Boskalis International (S) Pte Ltd 

Paragon International Engineers & Consultants bv 

Boskalis International Uruguay S.A. 

P.T. Boskalis International Indonesia 

Boskalis Polska Sp. z o.o. 

Seadreco Dredging (Malaysia) Sdn Bhd 

Boskalis South Africa (Pty) Ltd 

Soc. Española de Dragados SA 

Boskalis Sweden AB 

Dragapor Dragagens de Portugal S.A. 

Boskalis Taiwan Ltd 

Terramare Oy 

Boskalis Westminster Aannemers N.V. WestHam Dredging Company Pty Ltd (50%) 

Boskalis Westminster Cameroun SARL Zinkcon Contractors bv 

Boskalis Westminster (Oman) LLC (49%) Zinkcon Dekker Wasserbau GmbH 

Boskalis Zinkcon bv 

Zinkcon International bv 

Boskalis Offshore bv 

Sandpiper A/S 

Boskalis Offshore A/S 

Boskalis Westminster 

Middle East Ltd 

Zanen Verstoep bv 

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%) 

BV Beheermaatschappij 

T. den Breejen 

van den Bout 

Boskalis Finance bv 


Left Paul van der Burg, specialist submerged tunnels & 

special survey applications and right Jan de Reus, director 

Heinrich Hirdes. 

Rostock tunnel project: 

innovative approach 

In the German harbor of Rostock, Boskalis 

subsidiary Heinrich Hirdes is involved in the 

building of a tunnel under the river Warnow. The 

remarkably low weight of the tunnel elements 

demands an integrated approach to the work. No 

separate links, but a connected chain of work. 

“The nice thing about the Rostock tunnel is that we 

are involved in the project from A to Z, and not just 

in a part of it”, says Paul van der Burg, a specialist 

in submerged tunnels & special survey applications. 

Heinrich Hirdes did all the dredging work using its 

own equipment and people. A joint venture was 

established with the German subsidiary of Van 

Hattum en Blankevoort for the immersion of the 

six tunnel elements. “A real ‘home market project’”, 

says Heinrich Hirdes director Jan de Reus. 

“Because the concrete tunnel elements are relatively 

light, there was a risk that they might float upwards 

during and after immersion. To make sure that didn’t 

happen, ballast tanks in the elements were filled up 

to the top with water. In addition, the immersion of 

the tunnel elements and all the ground and dredging 

work involved was dealt with as a single integrated 

process. That needed well-planned logistics and 

considerable precision in the implementation of the 

work,” continues Jan de Reus. 

The design of the armor on the roof of the tunnel also 

required precise calculations for another reason, 

namely the fact that the depth of the fairway had 

to be maintained. So Heinrich Hirdes talked to the 

number crunchers at Boskalis’ engineering consultancy 

Hydronamic. In the spring of 2003, the layer 

of stones that they have worked out as anchor 

protection will be positioned on top of the tunnel. 


“Innovation is a matter of courage. The courage to abandon 

tried and trusted methods and create something new.” 

In the foreground, the 

construction dock, where 

a 400-meter-long channel 

was dredged for moving 

the tunnel elements. 

The submerging of the tunnel 

elements for the tunnel under 

the river Warnow. 

To hold the tunnel elements 

in place, the tunnel trench 

was filled with sand. 

This work was done by the 

Coastway and the Bremen. 


The world of Boskalis 

The world of Boskalis 

United Kingdom The Netherlands Germany 

Portugal 

Sweden 

United States 

of America 

Finland 

Area 

West North 

Area Middle 

Area East 

Area 

West South 

Mexico Italy Nigeria 

Head office/Home market Home markets Offices of Boskalis 

72 


Organization 

Organization 

International projects market 


Area East 

Area Middle 

Area West North 

Area West South 

M.C. Dekker, Dr. K.F. Bogaert, J.J. Scheele, 

B.J.H. Pröpper 

H.B. Huisman, H. Hesseling, W.D. Keij, 

C. Kootstra 

H.P.M. Sanders 

T.L. Baartmans 

Home market 



F.A. Verhoeven, J.J. de With, B.M. de Witt 

United Kingdom 

Westminster Dredging Company Ltd 

P.G. Roland, J.J. Dekker, 

T.P. Greenall, D. Hough, N. Haworth 

Germany 


H.G. Peistrup, J. de Reus 

Nordic (Finland and Sweden) 

Terramare Oy and Boskalis Sweden AB J. Yletyinen, H. Lindström 

Portugal 

Dragapor Dragagens de Portugal S.A. P. Venis 

Mexico 

Dragamex SA de CV P. Klip, C.D. Versteeg Z. 

Nigeria 

Nigerian Westminster Dredging & Marine Ltd L. Slinger 

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 


Underwater rock fragmentation 


Environmental activities 


J. Boender, W.B. Vogelaar 

G. Steel 

J.A. Dolman 

Corporate staff departments 

Finance and Administration 

Corporate Strategy & Business Development 

Investor Relations & Corporate Relations 

Legal Affairs 

Quality Assurance & Safety 

Information & Communications Technology 

Corporate Communications 

J.H. Kamps (a.i.), F.A.J. Rousseau (a.i.) 

J.H. Kamps 

R.T. Berends 

K. Duppen 

S.P. van Woensel 

J.A. Stam 

I.A.M. de Bus 


Organization 

Operational staff departments 

Personnel & Organization 

Research & Development 

Management Support Office 

Central Technical Department 

T.F. Buirma 

J.A. Eygenraam 

H. Postma 

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.J.H. van de Looij 

H.W. van der Pol 

W.T. La Rivière, vice-chairman 

J.C. de Snoo 

M. Treffers 

L. Pasma, secretary 


Offices around the world 


Head office 

Royal Boskalis 

Westminster nv 


P.O. Box 43 



Telephone +31 (0)78 69 69 000 

Fax +31 (0)78 69 69 555 

royal@boskalis.nl 

www.boskalis.com 


Baggermaatschappij 




P.O. Box 43 



Telephone +31 (0)78 69 69 011 

Fax +31 (0)78 69 69 555 

royal@boskalis.nl 



P.O. Box 43 



Telephone +31 (0)78 69 69 011 

Fax +31 (0)78 69 69 571 

offshore@boskalis.nl 


Zinkcon Dekker bv 

‘s-Gravenweg 399-405 

P.O. Box 4234 

3006 AE Rotterdam 


Telephone +31 (0)10 28 88 777 

Fax +31 (0)10 28 88 766 

n.w.europa@boskalis.nl 

www.boskalisbv.nl 


‘s-Gravenweg 399-405 

P.O. Box 4466 

3006 AL Rotterdam 


Telephone +31 (0)10 28 82 800 

Fax +31 (0)10 28 82 810 

dolman@boskalis.nl 

www.boskalisdolman.nl 

Aannemersbedrijf 

M. de Haan bv 

Alde Wei 2, 9222 NG 

Drachtstercompagnie 


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 


Telephone +31 (0)10 4582 022 

Fax +31 (0)10 45 83 775 

ahbreijs@planet.nl 

Hydronamic bv 


P.O. Box 209 

3350 AE Papendrecht 


Telephone +31 (0)78 69 69 099 

Fax +31 (0)78 69 69 869 

general@hydronamic.nl 

www.hydronamic.nl 

Aannemingsmaatschappij 

Markus bv 

Haarlemmerstraatweg 149 

1165 MK Halfweg 

P.O. Box 88 

1160 AB Zwanenburg 


Telephone +31 (0)20 49 74 871 

Fax +31 (0)20 49 78 032 

markus@boskalis.nl 

www.markusbv.nl 

J. van Vliet bv 

Krommenieerpad 42 

P.O. Box 103 

1520 AC Wormerveer 


Telephone +31 (0)75 62 84 558 

Fax +31 (0)75 62 13 331 

info@jvanvlietbv.nl 

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 

wdco@boskalis.co.uk 

www.westminsterdredging.co.uk 

Boskalis Westminster Ltd 


Crompton Way 



Telephone 

+44(0)1489885933 

Fax +44(0)1489578588 




Unit A1a, 

Olympic Business Park 

Drybridge Road, Dundonald 

Ayrshire KA2 9BE, U.K. 

Telephone 

+44(0)1563851302 

Fax +44(0)1563851063 

info@rock-fall.co.uk 

www.rock-fall.co.uk 

Boskalis Zinkcon Ltd 


Crompton Way 



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 

dominicjdaly@eircom.net 

www.irishdredging.com 

Rest of Europe 


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 

adra@atlantique-dragage.fr 

Boskalis Offshore AS 

Tangen 12, 

4070 Randberg 

P.O. Box 5063 Dusavik, 

4084 Stavanger, Norway 

Telephone +4751411100 

Fax +4751411101 

general@boskalis.no 

Sociedad Española de 

Dragados, S.A. 

Plaza Castilla, 3 – 7º A 

28046 Madrid, Spain 

Telephone +34 91 323 7703 

Fax +34 91 323 7128 

sedramadrid@sedra.es 

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 

geral.spdragapor@mail.telepac.pt 

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 


Bauhofstrasse 8b 

21079 Hamburg, Germany 

Telephone 

+49(0)40 76 60 94-0 

Fax +49(0)40 76 60 94-55 

hh.hamburg@heinrichhirdes.de 

www.heinrichhirdes.de 

Heinrich Hirdes Wasser- und 

Tiefbau GmbH 

Baldusstrasse 3 

47138 Duisburg, Germany 

Telephone 

+49(0)2039946511 

Fax +49(0)2039946521 

hh.duisburg@heinrichhirdes.de 

www.hirdes.de 

Terramare Oy 

Laurinmäenkuja 3a 

P.O. Box 14 

FIN-00441 Helsinki, Finland 

Telephone +358(0)9613621 

Fax +358(0)961362700 

terramare@terramare.fi 

www.terramare.fi 

Boskalis Sweden AB 

Lundbyhamnen 122 

S-41754 Gothenborg, Sweden 


Telefax +4631515039 

dredging@boskalis.se 

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 

terramare@hot.ee 

76 



Middle East 



Flat no. 1103, 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@emirates.net.ae 



Falcon Tower Building 

7th Floor, Suite 716 

P.O. Box 10630 

Diplomatic Area, Manama 

Bahrein 

Telephone +973 535757 

Fax +973 535775 

boskalis@batelco.com.bh 


(Oman) LLC 

P.O. Box 2063, 

RUWI, Postal Code 112 

Oman 

Telephone +968 591244 

Fax +968 591478 

Boskalis Westminster Al 

Rushaid Co. Ltd 

P.O. Box 31685 

Dhahran Airport 31952, 

Saudi Arabia 

Telephone +966 3 8933333 

Fax +966 3 8647320 

Lamnalco Ltd 

P.O. Box 5687, Sharjah, 

U.A.E. 

Telephone +971 6 5692111 

Fax +971 6 5691313 

lamnalco@lamnalco.co.ae 

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 

bkdi@bol.net.in 

America 


(Guyana) 

1, Water Street, Quarry 

Wharf, Kingston 

P.O. Box 101768, 

Georgetown, Guyana 

Telephone +592(0)2259241 

Fax +592(0)2258666 

boskalis-guy@solutions2000.net 

Atlantique Dragage Sarl 

Dégrad des Cannes, B.P. 139 

97323 Cayenne Cedex, 

French Guyana 

Telephone +594594354459 

Fax +594594354254 

atlantique.dragage@ 

mdi-guyana.fr 


P.O. Box 10.021 

Onverdacht, district Para, 

Surinam 


Fax +597352177 


Overseas 

# 824 Kenneth Avenue 

Gulf View 

La Romain, Trinidad and 

Tobago 

Telephone +18686539150 

Fax +18686539155 

bwodredging@tstt.net.tt 

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 

bbezemer@cwpanama.net 

Dravensa C.A. 

Edificio ONIX, Piso 6, 

Oficina 61, Calle Sojo – El 

Rosal, Caracas, Venezuela 

Telephone 

+58(0)2129517967/6712 

Fax +58(0)2129512773 

dravensa@telcel.net.ve 


Sucursal Argentina 

Tucúman 540, piso 6 “H” 

1049 – Capital Federal 

Argentina 

Telephone +54 11 43288566 

Fax +54 11 43288566 

s.cetera@fairwinds.com.ar 

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 

rvpll@netgate.com.uy 



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, 

U.S.A. 

P.O. Box 51118 

New Orleans, LA 70151-1118 

U.S.A. 

Telephone +1 504 587 8700 

Fax +1 504 587 8717 

bsllc@cfbean.com 

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 

dragamex1@terra.com.mx 

www.dragamex.com 

Africa 


(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@intouch.com 

Boscampo G.I.E. 

B.P. 4054, Douala, 

Cameroon 

Telephone 

+2373420909/3420064 

Fax +2373427676/3430907 

boscampo@yahoo.fr/camshi 

p@camnet.cm 


Gabon Z.I. Owendo 

Route du Barracuda 

Boite Postale 336, Libreville, 

Gabon 


Fax +241702185 

ibv@internetgabon.com 

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 

nwdm@micro.com.ng 

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 


The Forrest Centre, Level 29 

221 St Georges Terrace 

Perth WA 6000 Australia 

Telephone +61(0)892880610 

Fax +61(0)892880663 

bkoaus@iinet.net.au 

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 

boskalis@boskalis.com.au 

WestHam Dredging 

Company Pty Ltd 

122 Arthur Street, Level 8 

NSW 2060, North Sydney 

P.O. Box 1891, NSW 2059, 

North Sydney, Australia 

Telephone +61(0)299595715 

Fax +61(0)299595721 

wh.manager@westham.com.au 

Boskalis International (S) 

Pte Ltd 

Koon Building 

17B Pandan Road 

#03-00/#04-00 

Singapore 609269 

Teban Garden Post Office, 

P.O. Box 629 


Telephone +65 67335622 

Fax +65 67327530 

boskalis@boskalis.com.sg 

Zinkcon Marine Singapore 

Pte Ltd 

Koon Building 

17B Pandan Road 

#03-00/#04-00 


Jurong Post Office 

P.O. Box 446 



Fax +6567342510 

78 



The grab crane Atlas Nova at 

work in the port of Lisbon. 


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 


Room 1702, Tower 1 

China Hong Kong City 

33 Canton Road, Tsim Sha 

Tsui, Kowloon 

Hong Kong SAR 

Telephone +85223762330 

Fax +85223763489 

bkihkb@netvigator.com 

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 

boskalis@maxis.net.my 

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@cbn.net.id 


Suite 22, 3rd Floor 

Legaspi Tower 300 

2600 Roxas Blvd. Cor. Vito 

Cruz, Manila, Philippines 

Telephone +63(0)25241627 

Fax +63(0)25217062 


Representative Office Beijing 

Room 512, Lucky Tower B, 

no.3 

Dongsanhuan Beilu, 

Chaoyang District 

Beijing 100027, P.R. China 

Telephone +861064616458 

Fax +861064616459 

xuebing6093@bj1860.net 


Glossary 

Glossary 

Acquired orders 

The contract value of acquired assignments. 

Backhoe 

Hydraulic excavating machine on a pontoon used for a range of soil types, but mainly hard varieties. 

Barge unloading dredger 

A ship for discharging and pumping dredged material from barges lying alongside. 

BeauDrain method 

Innovative method for draining watery sediment. 

Booster station 

Pumping station for the transportation of sediment through pipelines over longer distances. 

Cost leadership 

Achieving lowest cost price. 

Cutter suction dredger 

Ship that can cut sediment or rock before pumping. 

Dredging-plus activities 

Activities that fit in with the core activities and core competences of the company. For example, offshore 

services, gravel and sand trading, soil improvement, dry earth moving, environmental activities, 

munitions clearance, underwater rock fragmentation, pipeline construction and hydraulic engineering. 

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. 

ERP system 

Enterprise Resource Planning System. An information system with full integration of primary 

business processes. 

Fallpipe vessel 

Ship for the controlled dumping of stone at large depths. 


Glossary 

Goodwill 

The difference at the time of the acquisition of participating interests between the acquisition price 

paid for the shares and the net asset value. 

International Dredging Academy 

Collaboration with the Scheepvaart en Transportcollege in Rotterdam in which a modular curriculum 

has been developed exclusively for Boskalis. It trains Dutch people and people from abroad for work 

on the Boskalis fleet. The training will enable them to take up officer positions in the future. 

ISM code 

International Safety Management Code for the Safe Operation of Ships and for Pollution Prevention. 

ISM is setting up an international standard for compliance with safety regulations and the prevention 

of pollution on seagoing self-propelled vessels. The standard requires shipowners to establish and 

maintain a safety management system. From 1 July 2002 onwards, seagoing self-propelled dredging 

vessels will also be required to meet the requirements of this code. 

ISO-9001 

Standards of the International Organization for Standardization; the global federation of national 

standardization organizations. ISO-9001: this standard sets out standard requirements for quality 

management systems. The quality management system of Royal Boskalis Westminster has been 

ISO-certified. 

Joint Industry Project 

Project involving several industrial parties. 

Maximo 

Maintenance management system for directing and optimizing maintenance, stocks and technical 

information about fleet units. 

Orderbook 

The turnover accounted for by parts of orders as yet uncompleted. 

Plant Management System 

System that provides support for the clear and structured management of ships using internal 

procedures. 

QA/HSE specialist 

Quality Assurance / Health, Safety & Environment specialist. 

Trailing suction hopper dredger 

Ship with its own suction and discharge unit and with a hold for the transportation of sediment. 


Glossary 

The extended trailing suction 

hopper dredger W.D. Fairway in 

the Sembawang shipyard dock 

in Singapore. This extension has 

increased the hopper volume 

from approximately 23,350 m 3 

to approximately 35,500 m 3 . 

Immediately after completion 

of the modifications, the 

W.D. Fairway was put into work 

in Malaysia. (Picture courtesy 

of Sembawang Shipyard, 

Singapore.) 

TEU 

Twenty feet Equivalent Unit. 

Tracked underwater dredging unit 

Small vessel which can be remotely controlled for dredging underwater at large depths. 

Turnover completed contracts 

Contract value of completed work. 


Volumes produced. 

82 


Equipment 

Equipment 

8 + 1* Trailing suction 

hopper dredgers 

Hopper capacity >6,000 m 3 

8 Suction dredgers 

Total installed power 

from 656 to 4,050 kW 

19 + 10* Trailing suction 

hopper dredgers 

Hopper capacity

The dredging work done by 

Boskalis International in joint 

venture with Rock Fall in the 

port of Tema, Ghana was 

made possible by ORET 

(development-relevant 

export transaction) financing. 

Hydronamic, Boskalis' own 

engineering consultancy, 

designed the layout of the 

area to be dredged. 

In addition to this work, 

Boskalis is also involved in 

a joint venture with Terramare 

for strengthening one of 

the quay walls. 


Colophon 

Compiled and 

coordinated by Royal 

Boskalis Westminster nv 

Corporate Communications Department 

Design and realisation 

Handelskade, Rotterdam 

Photography 

Flying Focus, Van der Kloet Fotografie, Piet Mes, Ben Wind and others 

Lithography and printing 

PlantijnCasparie Schiedam/Rotterdam

Annual r eport 2002 Annual r eport 2002 - Boskalis

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