Annual r eport 2002 Annual r eport 2002 - Boskalis

Basic principles of the corporate strategy
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.
13 Royal Boskalis Westminster nv