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A N N U A L R E P O R T 2 0 0 1

Royal Boskalis Westminster nvWe move the earth to a better place

Royal Boskalis Westminster nvWe move the earth to a better place

9509419_Omslag_GB 23-04-2002 07:54 Pagina 1

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Royal Boskalis Westminster nvWe move the earth to a better place

Annual Report 2001

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Coastway: Boskalis' latest acquisition: the mid-size hopper Coastway (4,900 m3). This ship went into operation in February 2002 and was special-

ly designed with a shallow draught and a large carrying capacity for carrying out foreshore and beach renourishment work in shallow waters, as

well as dredging and maintenance work. This generally involves dredging sludge, sand, gravel and soft clay. Dredging very dense sediments is

possible because of the powerful jet system on board. The Coastway can also be used for sea-sand desalination.

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Table of contents

Company profile 6

Mission, objectives and strategy 8

Basic principles of the corporate strategy 10

Management 16

Key Figures 18

Investor relations 20

Message to shareholders 24

Report of the Board of Management on 2001 30

Report of the Supervisory Board 40

Financial statements 2001 45

Principles of financial reporting 45

Consolidated balance sheet after 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 after proposed profit appropriation 58

Company profit and loss account 59

Explanatory notes to the company balance sheet and profit and loss account 60

Other information 63

Provisions in the articles of association relating to profit appropriation 63

Proposed profit appropriation 64

Auditor’s report 64

Stichting Continuïteit KBW 65

Report 65

Declaration of Independence 65

Ten years Boskalis 66

We move the earth to a better place:

Environmental dredging 9

People matter 15

International Dredging Academy 19

Looking after tomorrow's world 23

The environment, safety and the economy 29

The environment requires creativity and flexibility 39

Room for nature 43

Organization 67

Legal structure 70

The world of Boskalis 71

Offices around the world 72

Equipment 75

Glossary 76

All amounts in this report are in euros (I), unless stated otherwise. Some of the projects referred to in this report were carried

out in joint venture or in a sub-contractor role. This is a translation of the official Annual Report in the Dutch language.

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Company profile

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Strong growth container port throughput (in TEU million)

South America

North America

Australia

South-East Asia

Africa

Middle East

Southern Europe

Northern Europe

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 defenses and

riverbank protection. In addition, the company operates in numerous home markets in a wide range of related activities such as

sand and gravel production, 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 in 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. Assuming that global trade will continue to expand

in the years to come, Boskalis aims to maintain this rate of growth. The company has a solid financial basis and a healthy cash flow.

Core activities

Construction and maintenance of ports 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),

Western Europe (Rotterdam, Antwerp, Hamburg, Felixstowe) and North America (New York, Halifax). Ports are also being built or

scaled up in numerous industrially-developing countries such as India, Malaysia, and Mexico.

The increasing demand for larger and deeper ports is accompanied by the need for keeping them deep and this results in increases in

maintenance volumes, particularly in areas with strong currents or large tidal variations.

Creation of land in water. The global population is still increasing and economic centers are congested and overpopulated. Solutions

for the increasing scarcity of available land are being sought in the creation of new land, and Boskalis is playing a prominent role here.

A special example of this is the multi-year development program in Singapore, where the ratio of cost price to market price for new

reclaimed land is highly favorable.

Coastal defense and riverbank protection. Here also, Boskalis expects continuing market growth given the intensification in the

global focus on environmental protection and the ongoing growth of tourism.

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In addition to these core activities, Boskalis is involved in a range of related activities such as offshore services, sand trading,

dry earth moving, environmental activities, munitions disposal, underwater rock fragmentation and pipeline construction.

These activities are an extension of our range of services, with margins which 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, resulting in variations in market dynamics. The annual volume of sales on the global dredging

market is approximately J 7 billion and it is increasing steadily by approximately 5% a year. Half of these sales (approximately

J 3.5 billion) are made to reasonably open markets. Approximately 60% of operations in these open markets are accounted for by

five large Western European dredging companies, 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 that 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 the stable flow of assignments and the possibility of extending 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 which together account for approximately 60% of group turnover: The Netherlands, the United Kingdom,

Germany, Finland, Sweden, Portugal, Nigeria, the United States, Mexico and Brazil. 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 40% 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 in which Boskalis provides only

related activities, such as the offshore market and the market for underwater rock fragmentation.

Transparent, consistent and result-driven

Mission

All the work done by Boskalis focuses on maintaining and strengthening its leading position in the global market for dredging

services. In this area, the company is committed to excellent profitability and value creation for its shareholders. Boskalis

wants to be an attractive employer, the customer’s first choice and a responsible citizen in those countries in which it operates.

Objectives

The principal objective of Boskalis is growth. In the years to come, the company aims to achieve an average annual increase

in net profit of 10% and a return on average capital employed of at least 15%.

Strategy

Growth in the home markets through:

where possible, the expansion of the number of home markets;

the extension of the range of services with “dredging-plus” activities which generate above-average value creation;

the strengthening of existing positions in local markets.

Growth in the international projects market through:

strong fundamentals and Boskalis' global presence;

innovation-driven investment policy in fleet renewal and process technology;

responding to the opening up of traditionally closed markets as a result of the globalization of world trade and privatization;

strengthening of the position by concentration in the sector, where possible by means of takeovers and/or alliances.

To achieve its goals, Boskalis has:

a worldwide network of home market organizations, offices, agents and workshops;

experienced, committed and professional staff;

a large and versatile fleet;

sophisticated technological expertise;

good quality management and information technology;

a strong financial structure;

an inventive and enterprising corporate culture.

These factors contribute to the company’s distinctive market positioning. The company is constantly seeking to strengthen

its competitive position. Boskalis will continue to invest in people and resources through: staff training, further fleet

optimization, improvements in production processes (supported by research) and the development and strengthening of

organizational structures using, for example, quality systems and networks in the area of information and communications

technology (ICT).

In the services it provides, Boskalis attempts to find an optimal balance between functionality and the demands of the environment.

Mission, objectives and strategy

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Environmental dredging is an important concept in the dredging

world with different meanings.

For centuries, Dutch people have adapted their lives to the

presence of water but, on the other hand, they have also channeled

water to meet their wishes. Dikes, quays and breakwaters have

been used in the past to gain more and more control over water.

This is the essence of hydraulic engineering: changes to the aquatic

environment to maintain or improve living conditions.

More recently, environmental dredging has come to mean cleaning

up polluted sediments or soils, with government authorities

investing in the restoration of original conditions.

In addition to this, dredging techniques are continuously being

refined in order to minimize damage to the environment. In this

area, Boskalis has to respond not only to the requirements of its

clients but also to legislation and its own quality standards.

To follow this trend, Boskalis has deliberately adopted a consistent

approach. It has subjected its organization to international quality

standards such as ISO and ISM which require environmental

procedures. This is seen in, for example, the changes made to a

considerable proportion of the fleet in order to meet strict

regulations for the processing of waste. We also have a proactive

approach to the implementation of environmentally-sensitive

projects and a particular emphasis on cleanup projects.

Boskalis is also actively engaged in discussions with various

government authorities relating to the technical aspects of

international regulations in the field of environmental dredging

and the recovery of dredging sludge.

This annual report shows what environmental dredging and

environmental working mean to Boskalis by describing a number

of striking projects:

In the Ketelmeer, to the east of the IJsselmeer in The Netherlands,

there is a major cleanup project going on. The very latest

environmental dredging and survey techniques are being used.

On land, Boskalis Dolman (Netherlands) is operating a number of

plants returning clean soil to the ground.

During dredging near Ruwais (Qatar) active monitoring and

responsible process management were used to prevent valuable

coral in the vicinity being affected by the work.

In the Biesbosch (Netherlands), a new area was opened up for

nature development and recreational purposes as compensation for

the loss of natural assets as a result of river control measures.

Virtually all these projects were made possible by the active

involvement of Boskalis, in part based on years of research and

creative plan development.

W E M O V E T H E E A R T H T O A B E T T E R P L A C E

E N V I R O N M E N T A L D R E D G I N G

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The main success factors for a leading international service company in the area of maritime infrastructure are:

entrepreneurship and risk management;

transparency in Corporate Governance;

employee efficiency;

professional expertise and skills;

a broad-based and versatile fleet;

efficient organizational and communications structures.

Efficient performance based on these factors is the key to corporate success.

Entrepreneurship and risk management

Entrepreneurship involves working every day with uncertainties, opportunities and risks. International entrepreneurship 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. The business risks of

the global dredging industry that Boskalis must bear in mind during day-to-day operations can be divided into three categories:

Economic and market risks. Boskalis’ markets are heterogeneous and often develop in different ways. Boskalis is well

positioned 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 because of its occupation of strong positions in the

home markets. The dredging industry also focuses to a major degree on maintenance and the development of infrastructure,

so that long-term economic developments are more important than short-term economic fluctuations.

Boskalis: basic principles of the corporate strategy

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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 major success factor which receives a great deal of emphasis in terms of both investment

strategy and as a critical component of operational management.

Operational risks. Various risks must be taken into account when calculating costs and carrying out projects. These range from

unexpected soil conditions and varying 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, etc. In addition, considerable attention

is paid to 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 applies a strict acceptance and hedging policy with regard to political and payment risks. In principle,

these 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 by means of 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. Because it is essential for the uninterrupted conduct of business that sufficient credit and particularly

bank guarantee facilities remain available, Boskalis pursues a conservative financing policy. At the end of 2001, the company

had extensive and to a large degree 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. To that end, Boskalis has a sound system of Corporate Governance. As this annual report shows, the

company's objectives are clearly defined and Boskalis has a clear strategy. Future prospects and associated risks have been

identified as thoroughly as possible. The interests of all the company's stakeholders should be safeguarded. A great deal of

attention is being paid to investor and shareholder relationships.

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Employee efficiency

At Boskalis, the workforce is central. They are the critical success factor of the enterprise. They are the people who, in the

day-to-day running of the company, deal with changing circumstances and challenging operational situations. The company

works globally with high-grade technical production resources, facing highly varied physical and cultural conditions. There are

many other nationalities involved alongside the Dutch, both onshore and offshore. It is of vital importance for people to be

able to collaborate and develop in a complex environment of this kind.

Boskalis aims to provide an attractive working environment in which employees can make the most of their abilities. This

requires an active human resources policy in which the personal development of employees takes priority. The policy is based

on the continuous orchestration of the requirements of the company and the quality of the workforce. This goal is served by

a coordinated program of 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. The development of technological knowledge and skills is an important part of the business

process. Boskalis has a large R&D department which carries out R&D using computer simulations in Boskalis’ own

laboratories, on site in the Netherlands and abroad, and on board the vessels. The aim is to improve the understanding of

dredging processes and to improve equipment, production models and calculation standards.

Engineering capacity. Large infrastructure projects are increasingly tendered as Design & Construct projects. In this respect the

engineering capacity of Boskalis and its engineering consultant Hydronamic are of vital importance. These are used both

during the design and tendering stages, as well as during project execution. By taking account at the design stage of working

methods and possibilities afforded by available equipment, efficient solutions can be proposed in terms of costs and

construction time.

A broad-based and versatile fleet

Boskalis has a large and versatile fleet. It includes every variety of dredging equipment so that the right tool can be deployed

everywhere in the world. Fleet renovation and modifications to existing units keep the fleet in line with modern requirements.

Fleet automation is an area which is highly developed. 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 Equipment

Management department in Papendrecht. Equipment Management operates

as a shipowner which 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 has been certified on

the basis of the ISM Code. A Plant Management System creates the conditions

for the optimal deployment and structured management of the ships. In fleet

management, an important element is the safety of the ships and the crews.

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Efficient organizational and communications structures

Health, safety and the environment. The aim of Boskalis policy is to ensure that all personnel can carry out their work in

healthy, safe and environmentally-friendly conditions. The prevention of hazardous and/or unhealthy working conditions

applies to all personnel, including personnel of subcontractors and suppliers. This principle is expressed in the slogan used by

Boskalis: Safety is in your hands.

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 toward reducing

risks. Concern for environmental protection is a component of quality control, and day-to-day thinking and working at

Boskalis. The company is engaged in continuous research into possibilities for making dredging processes more

environmentally-friendly. In that context, techniques are developed which contribute to the prevention of unnecessary

environmental burdens during dredging work.

These activities result in a structural, systematic and transparent approach in the area of safety, health and the environment.

Healthy, safe and environmentally-acceptable working methods require cooperation and communications, not only within the

company but also with third parties, partners and service providers.

Quality assurance. One of the basic principles of quality assurance at Boskalis is the wish to meet customer requirements

according to plan and efficiently. The other involves the continued professionalization of the internal organization.

Considerable efforts are made to bring about continuous improvements in the quality of the preparation, execution and

evaluation of the projects, as well as the availability of equipment and staff planning and supervision: they are all critical

success factors. The quality systems which have been implemented are structured around Boskalis' core business: contracting

and executing dredging and dredging-related work. These systems are designed in accordance with ISO-9001 and partly in

accordance with ISO-9002.

Information and communications technology. As well as an instrument for improving efficiency and management information,

Boskalis views information and communications technology as a tool which can facilitate the work, but above all as a means

of operating more effectively in the market. Boskalis is working on 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. In-house

training is being provided for employees in order to ensure effective implementation of the new standard.

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Jurong Tuas,

Singapore:

A large-scale project

in which teamwork

involving all parties

is very important.

P E O P L E M A T T E R . C O R E C O M P E T E N C E S F O R S U C C E S S :

P R O F E S S I O N A L I S M , C O L L A B O R A T I O N , E N T R E P R E N E U R S H I P

Peter Berdowski explains: “Boskalis has always

had a strong culture of its own. A high level of

homogeneity among its workforce, resulting in a

powerful corporate image. In the past, that strong

individual culture saved the company in difficult

times. In the middle of the eighties, when the

entire dredging world was at rock bottom,

Boskalis recovered because of the loyalty and the

fighting mentality of its own people. Those were

our core qualities then: commitment and

workmanship were the forces which kept the

company afloat.

The modern age requires different key concepts.

Commitment and workmanship remain

important but the company now runs on other

types of fuel as well. Both within the company

and outside it, all sorts of factors now play a role

and our approach to them used to be completely

different. Quality management for example, and

the strong emphasis on health, safety & the

environment. This has implications for our

working conditions policy, but also for how we

set up works, and prepare, contract and

implement projects. In the area of contracts, joint

public-private ventures have become

increasingly important. This also involves

investigating and demonstrating the social and

environmental impact of our work. Our work has

turned into a more complex whole and we need

to take all the various elements into account.

The approach our people took to business in the

past was primarily an individual question. There

were managers who had an overall view and took

marketing decisions on that basis. That is a thing

of the past. There are too many areas to be

covered by a single man. What we need these

days are team players. People who can work

together: not just with their colleagues within

Boskalis, but also with disciplines from outside.

Large contracts increasingly involve several

contractors. That means that the ability to work

with others becomes even more vital. At present,

professionalism means optimal contract

preparation and optimal management.

Team players are not born: they have to be

trained. On top of that, a professional human

resources policy means that you put your people

in places that do justice to their talents. So we

will have to look much more at individual

potential and think of ways to make the most of

that potential.

For the Board of Management, this means that

competence management is being given high

priority. We are taking direct steps to develop

business qualities, collaborative skills and

professionalism among our people. And we

expect that an interaction will result. Our staff

will therefore have to become aware of their own

competence profiles. Often, this means that they

must develop skills which are still latent. And

when they want to develop those skills, they

must be given the opportunity to do so. It is our

job to create the right conditions.

Incidentally, I think it is very important to

emphasize that competence management is not

an aim in itself or a way of forcing people to stay

in one job. On the contrary. What matters is for

the company and the employees to agree on how

individuals' careers should develop. And we are

working hard to achieve that.”

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“Our position is based on commitment and workmanship. Further growth requires

professionalism, collaboration and entrepreneurship.” These are the guiding principles behind the

Boskalis human resources policy. The core competences were easily identified. A solid campaign

plan has been established for implementation.

Supervisory Board

S.D. de Bree, chairman (64)

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

director of Entergy Corp, New Orleans, USA

first appointment: 1998, current term: 1998-2002

M.W. Dekker (63)

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 I.H.C. 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 Macintosh N.V.

first appointment: 1989, current term: 2001-2005

M. van der Vorm MBA (43)

chairman of the Executive Board 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.

first appointment: 1993, current term: 1999-2003

A.A. Westerlaken (47)

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

first appointment: 1999, current term: 1999-2003

J. Aalberts (62)

chairman of the Board of Management of Aalberts Industries N.V.

member of the Supervisory Board of Stork N.V.

member of the Supervisory Board of Van der Moolen Holding N.V.

first appointment: 2001, current term: 2001-2005

Management

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All members of the Supervisory Board are Dutch.

They do not hold shares in Royal Boskalis Westminster nv or

associated option rights.

Board of Management

R. van Gelder BA, chairman (56)

member of the Board of Management since 1985

chairman of the Board of Management since 1993

member of the Supervisory Board of Delta Lloyd Investment Fund

member of the Supervisory Board of HES Beheer N.V.

member of the Supervisory Board of Brunel International 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 (44)

member of the Board of Management since 1997

vice-chairman of the Board of Management since 2001

member 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 (57)

member of the Board of Management since 2000

former managing director of Boskalis bv in Rotterdam

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

Secretary

M.M.A. van den Berg (40)

The above information is valid as at 12 March 2002.

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Left to right: K.G. van Nes, R. van Gelder BA, Dr. P.A.M. Berdowski

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Key figures 1)

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1)

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*)

(amounts x J 1 million, unless stated otherwise) 2001 2000

Turnover (work done) 1,083 960

Turnover (completed contracts) 1,081 882

Orderbook (work to be done) 2) 1,224 1,214

EBIT (=Operating result) 3) 97.7 84.4

EBITDA 4) 159.9 139.6

Net result 77.7 67.2

Depreciation 62.2 55.2

Cash flow 139.9 122.4

Shareholders’ equity 2) 345.0 300.3

Number of outstanding shares (x 1,000) 2/8) 25,900 25,784

Personnel (number of persons) 2) 3,119 3,295

Ratios (in percentages)

Operating result as % of the turnover 9.0 9.6

Return on capital employed 5) 16.9 15.9 *)

Return on equity 6) 24.1 23.7

Solvency 2/7) 35.2 34.4

Figures per share (amounts x J 1.00)

Result per share 8/9) 3.00 2.61

Cash flow 8) 5.40 4.75

Shareholders' equity 2/8) 13.32 11.65

Dividend per share 1.20 1.05

Share information Euronext Amsterdam

(Depositary receipts of) shares (amounts x J 1.00)

Price range 25.15/37.15 16.50/30.50

Closing price at year-end 30.10 26.30

Price/earnings ratio 10.0 10.1

Figures taken from the respective financial statements.

As at 31 December.

Consists of earnings before interest, result from associated companies and taxation.

Consists of earnings before interest, result from associated companies, taxation, depreciation and amortization.

Net result + interest paid as % of the average capital employed (fixed assets + current assets – current liabilities).

Net result as % of the average shareholders’ equity.

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

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

The dilution effect was practically nil up to the financial year 2001.

Adjusted for comparison purposes.

In a company that grows as fast as Boskalis, finding the right staff

is a constant concern. The Netherlands is the main recruitment area

but, with a view to the future, we are also looking elsewhere.

Boskalis has taken a striking initiative, creating its own training

institute for fleet workers.

“We have trained people on board from the very beginning. There

is also a dredging school in The Netherlands where a lot of our staff

used to come from. Training took place on board but there was no

specific, structured Boskalis training. There was no need for one.

That has changed. We need to start training people in a more

planned way.” Human resources manager Dirk-Jan van Leeuwen,

who shares responsibility for the new training structure with his

colleague Peter Tijmes, is happy to tell us all about it.

Exclusive training “Boskalis has made a major step forward:

training specifically for Boskalis fleet personnel. It is precisely that

dedicated approach which is special. Boskalis entered into an

agreement with the STC, the Shipping and Transport College.

The foreign and Dutch students who are given this training already

have a sound nautical background and, for them, the training is an

introduction to dredging, something which we think they will

need in the future if they are to act as officers on board. Our

training also makes it possible for Dutch people with no

background in dredging to acquire professional schooling. This

means that we have more options on the Dutch labor market.”

Peter Tijmes explains: “In meetings for ship's officers, we prepare

everyone thoroughly for the future. We describe the background to

the training and to the decisions we have made about recruiting

people from abroad, alongside the Dutch sources for staff that we

will always depend on. The form and the content of the training

are also dealt with. In that way, we hope to get everybody involved

and to encourage commitment from the people in place because, in

the end, they are the ones who will ultimately have to help their

new colleagues with their careers.”

The STC has developed the International Dredging Academy

exclusively for Boskalis. The STC designed the study material,

which was assessed by a committee consisting of a captain, a ship's

master, a chief engineer and three dredging specialists from

Boskalis. Boskalis drew up the curriculum.

I N T E R N A T I O N A L D R E D G I N G A C A D E M Y

A G U A R A N T E E F O R T H E F U T U R E

19

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 involving open communications with analysts, shareholders, investors and

media. A steady flow of information provides investors with a picture of both 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. There is a strong emphasis, in addition to institutional investors, on private investors. The Boskalis share is

monitored with great interest in international circles and new contacts are regularly established with investors in Europe, the

United States and Canada.

Boskalis has its own website (www.boskalis.com), which provides financial information as well as general company

information, vacancies, fleet information, projects and the latest press releases. Presentations for analists are also published

on the site. The website is maintained and improved continuously.

Increase in share price of 14%

Against a background of generally negative movements in share prices, the Boskalis share price continued to rise. After the

increase of 47% in 2000, the share rose from J 26.30 to J 30.10 in 2001, an increase of more than 14%. Investors saw the

Boskalis share as a stable factor in their portfolios and many analysts recommended the share.

Royal Boskalis Westminster nv shares are listed on the Euronext Amsterdam.

Share price in euros, closing prices (1 January 1999 through 31 December 2001)

As in 1999 and 2000, the Boskalis share performed better than the leading

market indexes in 2001:

2001 2000 1999

Boskalis share price +14% +47% +30%

AEX index -20% -5% -25%

Midkap index -20% -8% +1%

The dividend yield on Boskalis shares was approximately 3.5% in 2001 (J 1.05 per share), resulting in a total yield for 2001 of

more than 18%.

Increased shareholder value

These statistics show that the enterprise value created in the past year was translated into added shareholder value: the

company's market capitalization increased from J 677 million to J 780 million, while more than J 27 million was distributed

in cash dividend. The corporate strategy is to increase shareholder value further.

20

Investor relations

40

35

30

25

20

15

10

1999 2000 2001

21

Large shareholders

As at 12 March 2002, 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%

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 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 over the year 2001 of e 1.20 will

be distributed to the shareholders.

Euronext listing

The Boskalis share is listed on the Next 150 Index on the Euronext exchange and is traded there continuously.

Boskalis believes that shares in the Next 150 Index should also qualify as a ”Midkap” fund in Amsterdam.

Withdrawal of depositary receipts of shares

In accordance with the proposal from the Board of Management and the Supervisory Board, the General Meeting of

Shareholders decided on 9 May 2001 to withdraw the depositary receipts of shares in the capital of the company.

Most of the shares administered by the Stichting Administratiekantoor Koninklijke Boskalis Westminster have now been

transferred to the holders of depositary receipts of shares in question in exchange.

Financial agenda

Agenda in 2002

13 March Publication provisional annual figures for 2001

14 May Annual General Meeting of Shareholders

16 May Shares go ex-dividend

21 May Dividend payment for 2001

21 August Publication of 2002 half-year results

Information

Investor relations

R.T. Berends

Telephone +31 (0) 78 69 69 822

Telefax +31 (0) 78 69 69 805

e-mail r.t.berends@boskalis.nl

Internet www.boskalis.com

22

Above: The ’eye of the

IJssel’, watching over

the surroundings.

Below: The specially-

developed

environmental disc

cutter De Vecht.

L O O K I N G A F T E R T O M O R R O W ’ S W O R L D W I T H T O D A Y ’ S T E C H N O L O G Y

The Dutch Ketelmeer is being cleaned up to

make it suitable for water sports. That means

that 6,000,000 m3 of polluted sludge is being

removed, a layer varying between twenty

centimeters and three meters. Specially-

developed advanced equipment means that

Boskalis can work to within a centimeter.

Frank Stikkel is the project manager:

"Check, check and then check again. That's

what it's all about. We often carry out at least

ten, but generally fifty, check measurements per

square meter. Those measurements are carried

out using a multibeam echosounder. The depth

data for the bed allows us to monitor our

progress exactly. And we have to, because

tolerances are tight. To make sure we don't

leave any polluted sludge behind and that we

don't actually remove clean sediment, we have

to dredge in a narrow range between + 1.5

centimeters and - 3.5 centimeters. Twenty years

ago, that would have been unthinkable with a

job of this scale. But developments in the

technology mean that we can do it now."

Roeland Neelissen works in Research &

Development:

"We developed the environmental disc cutter De

Vecht specially for this sort of work. A unique

dredger which can work to incredible tolerances

because of the advanced on-board computer

systems. The design of the disc cutter and

suction nozzle also means that there is hardly

any muddying of the water during dredging. The

sludge is pumped straight to the depot through

pipelines. Boskalis was involved in the

construction of this depot in the middle of the

lake. Appropriately, it is known as the ’eye of the

IJssel’, watching over the surroundings."

23

24

Dear shareholders,

In an eventful year, in which economic stagnation, international political tensions and falling share prices dominated the

picture, Royal Boskalis Westminster nv managed to achieve excellent results. Turnover increased by 13% to well over the J

1 billion mark and the earnings per share increased by 15% to J 3.00. Our share price at the end of the year was 14% higher

than at the beginning of the year, while both the AEX and AMX index fell by approximately 20%. Your company is geared

towards sustainable growth and we again achieved this goal during a turbulent 2001.

This emphasis on sustainable growth has been a consistent component of our strategy in recent years and it will continue

to be so in the years to come. It is based, on the one hand, on our confidence in the long-term prospects in the international

dredging markets and, on the other hand, on our broad-based position in those markets, combined with our capacity to

operate successfully in them. However, we are also confident about the more concrete picture in the short-term. The

orderbook is well filled and continued growth can be expected in 2002 in our activities and results.

As in the past year, our efforts in the immediate future can be summed up as a combination of “reaping and sowing”. In the

world of global dredging, the sun never sets. Success is therefore a question of: professional people, state-of-the-art

equipment and advanced systems. On top of that, the organization is always on the move.

The “sowing” side focuses mainly on the training and development of our personnel and the recruitment of young

professionals. In addition, considerable amounts are invested in innovations and the expansion of important parts of the

fleet. Last but not least, a lot of energy and resources are put into the development and implementation of ICT, quality

assurance and safety systems. The above elements, together with promising market prospects, are the springboard for our

growth opportunities.

On the “reaping” side, the spearheads of our policy concentrate primarily on the optimization and extension of our home

market positions, the successful implementation of the large international projects and the achievements of good utilization

levels and results for our main fleet units.

At Boskalis, growth and development play a central role and they are vitally important for our staff and their development

opportunities, as well as for the quality we wish to achieve for our customers and markets. Success in terms of growth in

our activities and corporate results will primarily have to be seen in an increase in shareholder value. Your company is the

only listed dredging company in the world and it should therefore provide maximum transparency, not only with respect to

its own business but also in the global dredging market. Here, you are referred (in all probability unnecessarily) to the

regular reports in the media, the analyst reports from virtually all major financial institutions, our own website, statements

made at numerous investment meetings and the relevant chapters in our annual report.

Despite current economic uncertainty, we are maintaining in full our long-term financial objective of 10% net profit growth

on average, accompanied by a return on average capital employed of at least 15%. On the basis of, among other things, the

condition of the orderbook and the good position which Boskalis has on most of its markets, the Board of Management

expects an increase in the net profit in 2002 of 5-10%.

We are pleased to propose increasing the dividend from the profit to J 1.20 per share (2000: J 1.05 per share).

Message to shareholders

The demand for dredging services continued to hold up in 2001. Infrastructure in

general and maritime infrastructure in both developed and developing regions make

up the backbone of future economic growth and development.

Despite stagnation of economic growth at present, the prospects with respect to the

global economy and the related volume of world trade are favorable in the long term.

The global population is increasing, there is a shortage of space in densely-populated

coastal areas, international markets are continuing to extend their boundaries and the

demand for road transport, whether over water, on the road or by air, is growing all the

time. Our products and markets are directly related to these factors. The provision of

dredging services and work on the maritime infrastructure of tomorrow is a global job

with a future.

A broad global spread means that Boskalis has the opportunity to adjust its course to

navigate through the shifting sands of the world stage. The supply of work in Europe

and North America came from a range of sources and increased slightly in recent

years. At present, a lot of work is still in progress in Singapore and Hong Kong and we

expect to maintain this level in the years to come. The market situation in South

America has worsened recently; and there are as yet no signs of recovery. Africa

remains mediocre, but much more work will be carried out in the Middle East in the

years to come than in recent years. On balance, this is a lively market profile with

good opportunities (especially for Boskalis).

Boskalis has, in the last decade, built up a series of home market positions and

regional alliances which are the foundation for its present unique market position.

Alongside our fleet for large international projects, the home market positions allow

us to cater to a more continuous flow of medium-sized and smaller projects with local

expertise, materials and cost structures which are tailored to customer requirements.

In the past year, we have been able to extend our position further in the Middle East

by acquiring a 30% participating interest in Archirodon. This position will allow us

to respond well to the increased level of activity which we expect in the coming years

in the United Arab Emirates, Qatar, Bahrain and the North African area and

Mediterranean Basin.

As in 2000, we took steps last year with a view to further consolidation in our branch

of industry. In May, we made a bid for HAM. However, HAM merged with Ballast

Nedam Dredging in the autumn. The resulting consolidation will benefit the market

and investment discipline in the industry. We are continuing to look for other

consolidation openings.

25

Demand for dredging services

continues to hold up

Long-term prospects

determine favorable market climate

Shifting sands…

require global capability…

and, on balance, provide

a good supply of work

Home markets and regional alliances

basis for unique market position

Archirodon alliance

Consolidation good for

market and investment discipline

26

We follow a clear and consistent strategy of ”reaping and sowing” and will continue

to do that consistently in the year to come. This will involve putting a lot of effort

into the training and development of our workforce on the global level. The broad

international nature of our company means that the organization is acquiring an

increasingly global orientation in terms of human resources, with numerous

nationalities transforming the company into a multi-cultural society.

Professionalism, entrepreneurship and clear policy mean that flexibility and a focus

on results constitute a winning formula.

Cost leadership will, in the years to come, be one of the factors which determines

the position and the success of the company. Considerable investments, both in recent

years and in the years to come, will focus on fleet innovation and cost-effectiveness, with

increases in capacity also playing a role in allowing us to meet increasing market demand.

The ”harvest” of the past year in terms of turnover and increased profits exceeded our

long-term target of 10%. The good results were achieved in both the home markets

and the international projects market. Furthermore, the high utilization levels of, in

particular, our international trailer fleet contributed to the rise in profits.

At the end of the year, the orderbook amounted to J 1,224 million, meaning that it is

well-filled. Although a slight decrease in the orderbook could be expected with

respect to the implementation of long-term major works, particularly in Singapore,

the amount of work in hand was, on balance, maintained at the same level last year.

The work in hand constitutes a healthy basis for the utilization of our large equipment.

You are used to hearing clear and concrete forecasts from us. We wish to maintain

that pattern again this year, even though the current economic uncertainties require

caution. Against that background, we can forecast a continuing increase in the net

result in 2002. At present, we expect that growth to amount to 5%-10%.

On behalf of the Board of Management,

R. van Gelder.

Strategy consistent and focused on

”Reaping and Sowing”

Increase in profits for 2001

above-average

Well-filled orderbook

Higher profits in 2002

27

28

One of the six

treatment plants of

Boskalis Dolman

Boskalis Dolman

Amsterdam joined forces with Boskalis Dolman

121/2 years ago. It was the first city in The

Netherlands to take serious steps to tackle the

processing of contaminated sludge from the

canals of the capital city. In the meantime,

hundreds of thousands of cubic meters of mud

have been processed and the operation in the Jan

van Riebeeck harbor is part of the largest water

authority organization in The Netherlands.

Johan Dolman, managing director of Boskalis

Dolman bv:

”The links between the environment, safety and

the economy are clearly shown when cleaning

up aquatic sediment in urban areas. In 2001,

Boskalis Dolman celebrated 121/2 years of

operations in the Jan van Riebeeck harbor in

Amsterdam. It was originally intended as a

processing site for all contaminated sludge from

the canals of Amsterdam, in accordance with

instructions from the Amsterdam city

authority. The site is now controlled by the

largest water authority in The Netherlands, the

Water & Sewage Service (DWR), which now also

includes Amsterdam.

Improvements in drainage, improvements to the

quality of the aquatic sediment, and increased

depth for shipping. These were the basic

principles which all played a part in the cleanup

of, in particular, the smaller water bodies

controlled by DWR.

So it is surprising to see how quickly the

biological equilibrium is restored in the waters

which have been cleared up. Water plants are

clearly flourishing in clear water. But the sand

we use in our own works in Amsterdam is also

obtained from the dredging sludge, giving us the

feeling that we are seeing the roll-on effects of

our own work. The sustainable re-use of

building materials by processing dredging sludge

is becoming an increasingly important part of

the activities of Boskalis Dolman.”

T H E E N V I R O N M E N T , S A F E T Y A N D T H E E C O N O M Y

I N E X T R I C A B L Y L I N K E D

29

30

Results

Good results were achieved in 2001 as a result of an increase in turnover, satisfactory margins on executed projects and good

fleet utilization. The operating result increased in 2001 by 16% to J 97.7 million (2000: J 84.4 million) and net profit by more

than 15% to J 77.7 million (2000: J 67.2 million).

The operating result was higher in both the home markets and the international projects market. Not only were volumes in

those markets higher, the results on the completed projects were also generally positive. In line with the higher volumes, fleet

utilization was high, especially in the case of the jumbohoppers and the large cutters. Turnover (completed contracts) increased

by 23% from J 882 million to J 1,081 million. The operating result in relation to turnover (completed contracts) was 9.0%

(2000: 9.6%). Depreciation costs increased in 2001 as a result of investments in replacements and new equipment amounting

to J 62.2 million (2000: J 55.2 million).

The result from associated companies increased to J 5.7 million (2000: J 5.3 million). The largest group company, Lamnalco,

which is primarily active in the Middle East and Nigeria in harbor and offshore services, had a excellent year, partly because

of good results on investments in equipment made in 2001.

The persistently strong liquidity position and the high cash flow from operating activities in 2001 meant that net interest

revenues in 2001 amounted to J 3.4 million (2000: J 1.7 million).

Taxation increased to J 29.1 million (2000: J 24.2 million), which implies a tax rate of 27.3% (2000: 26.5%). The company

works under a range of tax regimes so that there is no direct relationship between this item and the results achieved.

Cash flow

The cash flow increased in 2001 to J 139.9 million (2000: J 122.4 million), on the one hand as a result of the increase in profit

and on the other hand because of the increase in depreciation.

Turnover, utilization and work done

In the year under review, the turnover of work done in the various markets in which Boskalis operates increased from a total

of J 960 million in 2000 to J 1,083 million.

Report of the Board of Management on 2001

1100

1000

900

800

700

600

500

400

300

200

100

0

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

697

960

20

01

1,083

425

545582

493

569

Turnover work done

In J million80

70

60

50

40

30

20

10

0

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

Net result

In J million

24

35

40

3228

37

47

58

672

00

1

78

801851

Home markets. On the home markets, turnover increased in 2001

by 6% to J 627 million (2000: J 594 million). The share of the

home markets in the turnover of work done fell slightly in the past

year to 58% (2000: 62%) as a result of the sharp increase in

turnover achieved on the international projects market. The

Boskalis home markets are:

The Netherlands

Germany

United Kingdom

Finland

Sweden

Portugal

Mexico

United States

Brazil

Nigeria

In Europe, The Netherlands expanded strongly in all activities:

dredging, sand production and trading, dry earth moving and

environmental projects. The activities in Germany, the United

Kingdom, Finland and the Iberian Peninsula matched or were a slight

improvement on the 2000 level. Sweden was acquired as a home

market in 2000 and made a modest contribution to turnover in 2001.

Outside Europe, there was a steady stream of relatively small

capital projects in Mexico and there was again an increase in the

level of activities in the United States. Home market Nigeria had

Turnover of work done according to market

(in J million)

2001 2000 1999 1998

Home markets

The Netherlands 283 223 160 142

Rest of Europe 177 181 228 235

Outside Europe 167 190 108 76

627 594 496 453

International projects market

(‘hit and run’) 400 302 285 306

Specialist niche markets 56 64 70 42

1,083 960 851 801

Turnover of work done according to geographical area

(in J million)

2001 2000 1999 1998

The Netherlands 283 223 160 142

Rest of Europe 208 234 276 282

Australia / Asia 265 148 146 143

Middle East 61 64 66 90

Africa 77 103 55 54

North and South America 189 188 148 90

1,083 960 851 801

Orderbook composition as at 31 December

(in J million)

2001 2000 1999 1998

Home markets

The Netherlands 241 243 231 177

Rest of Europe 71 75 99 132

Outside Europe 83 91 166 45

395 409 496 354

International projects market

(‘hit and run’) 781 765 256 359

Specialist niche markets 48 40 68 72

1,224 1,214 820 785

-

-

-

140

130

120

110

100

90

80

70

60

50

40

30

20

10

0

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

Cash flow

In J million

64

75

88

7871

8593

112

122

20

01

140

31

-

-

-

-

-

-

-

-

-

-

-

-

-

32

a difficult year because of persistently difficult operating conditions resulting from social

and political unrest. The organization in this home market underwent changes in

response to the reduction in the level of activity. In Brazil, turnover was modest in 2001.

International projects market On the international projects market, turnover in 2001 was

J 400 million, 32% higher than in 2000. This increase was primarily achieved in the Far

East by the land reclamation projects in Singapore, and on the Indian subcontinent, where

work took place on a large land reclamation project in India. In addition, there was a

project in Bahrain involving a large bridge linking two Arab Emirates and deepening work

took place at the port of Tema in Ghana. In Argentina, the bridge / road connection near

Rosario was completed. In Central America and the Caribbean, various smaller projects

were executed in addition to a harbor project in Antigua.

The strategic alliance with Archirodon was completed in May 2001. The share in turnover for 2001 was J 28 million, most of

which was achieved in the Middle East.

Specialist niche markets In the specialist niche markets, the volume of activities related to the offshore industry was

comparable to 2000 but the activities of cable laying company Van der Stoel Cable were disappointing. On balance, turnover

amounted to J 56 million.

1400

1300

1200

1100

1000

900

800

700

600

500

400

300

200

100

0

19

97

19

98

19

99

20

00

Acquired work and orderbook

as at 31 December

In J million

acquired work orderbook

765

661

924

785

886820

1,354

1,214

20

01

1,093

1,224

40

30

20

10

0

19

97

19

98

19

99

20

00

Equipment utilization

In weeks per year

38

41

26

38

29

40

30

402

00

1

29

43

cutters hoppers

Home markets 58%

International project markets 37%

Specialist niche markets 5%

Turnover work done by market

33

The high level of activities generated high utilization levels for hoppers and cutters, both in the central fleet and in the home

market fleets. During the first six months of 2001, utilization levels for the large cutters were above average but repairs to the

larger cutters in the latter half of the year meant that the annual utilization rate for the cutter fleet was 29 weeks. The

utilization figure for the hoppers was 43 weeks.

The total amount of acquired orders in 2001 was J 1,093 million. This was less than in 2000, when the multi-year large order

of J 450 million for land reclamation in Singapore was acquired. Despite the high turnover of work done in 2001 (J 1,083

million), the orderbook grew from J 1,214 million at year-end 2000 to J 1,224 million as at 31 December 2001.

Investments, acquisitions, capital ratio and liquidity

The level of investment was much higher in 2001 than in 2000. Investments of J 134 million (2000: J 108 million) were made

in tangible fixed assets. These included:

the completion and building respectively of the mid-size hoppers Waterway and Coastway (both 4,900m3);

the start of building work on two hoppers, each with a capacity of 16,000 m3;

the preparations for the extension of the jumbohopper Fairway (to 33,000 m3);

the construction of the head offices in Papendrecht.

Furthermore, investments were made in numerous modifications and improvements in equipment, for example on the hoppers

Seaway and Cornelis Zanen.

The book value of the divestments was J 10 million (2000: J 9 million). On balance, the book profit on the divestments was

J 0.7 million (2000: J 3.7 million), and this has been included in other operating income.

140

120

100

80

60

40

20

0

19

97

19

98

19

99

20

00

Investments

In J million

divestments net investments

10

93

12

67

10

86

9

99

20

01

10

124

-

-

-

-

34

The capital tied up in the associated companies increased by J 1 million to J 54 million, primarily because of the good results

achieved by the associated company Lamnalco.

Working capital (stocks, work in progress, receivables less short-term liabilities) fell by J 54 million to J 231 million negative

(2000: J 177 million negative).

Equity to total assets as at 31 December 2001 was 35.2% (year-end 2000: 34.4%).

Return on average capital employed was 16.9% (2000: 15.9%), while return on equity was 24.1% (2000: 23.7%).

Provisions fell to J 91 million as at year-end 2001 (2000: J 108 million). The main components of this item were maintenance

of equipment and deferred tax. The financial year saw the implementation of a repairs program that was more extensive than

usual. This led to a reduction in the repairs provision but also to improvements in fleet quality.

The combination of the higher cash flow, the higher level of investment and the lower working capital resulted, on balance,

in an increase in the cash position to J 193 million at the end of the financial year (year-end 2000: J 155 million).

Some of this cash, J 58 million, was held by projects being executed in cooperation with third parties (2000: J 44 million).

Equity, after inclusion of the proposed profit appropriation, increased to J 345 million at the end of the financial year (year-

end 2000: J 300 million). The increase resulting from the proposed profit appropriation was J 46.7 million.

Proposed profit appropriation

An amount of J 46.7 million from the after-tax result will be added to other reserves. It is proposed that the balance of J 31.0

million should be appropriated for a dividend payment of J 1.20 per share.

35

Personnel & Organization

Staff recruitment, promotion and development continued to be important focus areas in 2001. Boskalis again recruited a large

number of fleet and management employees.

Until now, the Boskalis profile on the labor market and its terms of employment have ensured that the company has been able

to find enough well-qualified new employees for the organization.

The extensive internationalization of the fleet crews was completed successfully, in part by turning to the Baltic labor market.

The structured transfer of expertise from experienced personnel to the ”new generation” continued to take shape during the

year under review. In close collaboration with the Shipping and Transport College in Rotterdam, the International Dredging

Academy has been established exclusively for Boskalis (see also page 19). The program is structured on modular lines and

trains Dutch people and people from abroad with a nautical background to work on the Boskalis fleet. This professional

training will enable them to take up officer positions in the future.

An emphasis on career development and management development programs has also contributed to faster promotion to

management positions.

In 2001, the average size of the workforce was 3,257. At year-end 2001, the number of employees was 3,119 (3,295 at the end of 2000).

During the year, there were regular consultations about a variety of subjects with the Works Council and its Committees. The

level of commitment among the individual members was very high. The way in which the Works Council fulfilled its duties

was felt to be positive and constructive. The way in which the Works Council advised on the proposed takeover of HAM by

Boskalis was a good example of this.

Health, safety and the environment

Safety-related activities in the past year were primarily focused on increasing safety awareness within the organization. The

intensity of safety inspections at projects and on ships was raised. Internal safety audits of this kind fit in with the objective

of raising safety awareness in constructive ways. Increasing numbers of QA/HSE specialists were also appointed this year to

run projects with the aim of improving safety and quality on the workfloor. Particularly on larger works, there is an ongoing

process of professionalization in safety and quality assurance which is taking shape as a result of the deployment of specialists

to these works.

The number of accidents in 2001 was lower than in 2000, while the number of worked hours was higher. As a result, on

balance, the injury frequency (LTIF, or the number of accidents per million hours worked) fell further in 2001. This fits in with

the long-term trend of a steady fall in the number of accidents. In order to maintain this downward trend and make further

improvements where possible, we will continue to focus in the years to come on further increasing safety awareness among

our employees and on the prevention of accidents.

In 2001, work continued on the implementation of the ISM Code on the fleet (International Safety Management Code for the

Safe Operation of Ships and for Pollution Prevention). ISM is the international standard for safety, environment and welfare

on board sea-going vessels. From 1 July 2002 onwards, sea-going dredging vessels will also be required to meet the

requirements of this standard.

Boskalis is very aware of the effects of its activities on people and the environment. Important examples of this constitute the leitmotif

of this annual report (see pages 9, 23, 29, 39 and 43) and emphasize our commitment to nature and the human living environment.

36

Equipment

Against the background of the well-filled orderbook and the favorable market prospects, Boskalis is conducting an extensive

investment program for further technological innovation and expansion of the fleet. The main components of this program are:

construction of a second 4,900 m3 hopper dredger, the Coastway. This ship will be used mainly for dredging projects on short

and medium sailing distances. The Coastway was launched in November 2001 and has been operational since late February 2002.

extension in the latter half of 2002 of the jumbohopper W.D. Fairway by 54 m to make it the largest hopper in the industry

with a capacity of more than 33,000 m3;

the construction of two trailing suction hopper dredgers, each with a capacity of approximately 16,000 m3, which will include

the latest technology and be the cost leaders in their class. Both vessels will start operations in 2004.

This program involves a total investment of more than J 200 million, of which approximately J 160 million will be spent in

the next three years. In addition, modifications were again made in 2001 to existing fleet units in order to increase efficiency

and improve our capacity to meet customer requirements.

During the year under review, implementation was completed on the Central Fleet of the Maximo automation package

purchased in 1999. This package is used for the control and optimization of inventory management and maintenance planning

for fleet units.

Research and development

The past year saw a range of research projects, including in-house research and Joint Industry Projects. Joint research was also

contracted out to knowledge institutions and universities.

For example, work took place on new measurement techniques which make it possible to use practical measurements as a way

of linking current processing conditions to wear and tear in pumps and pipelines. This makes it possible to improve

computation models for predicting wear. During the year under review, other research included studies of improvements to

hopper loading procedures.

In order to cater to the demand for the accelerated construction of roads and construction sites, an innovative method of

vacuum consolidation was developed under the name BeauDrain. This process of development was initiated in 2000. It has

now resulted in successful practical applications.

Information and Communications Technology (ICT)

In 2001, additional functionality was installed at the head office in Papendrecht in the ERP system which went into operation

in 2000. Improvements were also made in ERP working practices. In addition, the system was implemented in the United

Kingdom and Netherlands home markets. The implementation of the fleet management system was also completed on the

most important ships so that the system was operational on the 25 relevant vessels of the central fleet at the end of 2001. The

program for 2002 includes the introduction of a version with less functionality for the smaller production units. All Boskalis

personnel are now linked up to the global communications network. There has been a considerable increase in the staffing

levels of the ICT organization, resulting in improved safeguards for the preservation of expertise and experience. This

expansion will continue and reach completion in 2002.

In 2002, the personnel management system will be replaced by a system with much more functionality so that modern

information requirements will also be met in that respect.

-

-

-

37

Prospects for the coming year

In 2002, it is expected that turnover will continue to increase and that this will be accompanied by an increase in profits of 5-10%.

Further professionalization of the organization will be a high priority again in 2002. The investments will continue at the same

high level as in 2001 and will concentrate on the replacement and extension program for the hopper fleet. Investments will be

financed from the company's own funds and 2002 will not see any major changes to the financing structure of the company.

This approach to financing does not take into account the possibility of major expansion opportunities.

Success depends on people

Finally, we wish to emphasize that the success of the company is primarily achieved through the commitment and

professionalism of our staff. Once again, in the past year, they have been the people behind the results achieved. We wish to

express our particular thanks to all those who have contributed in their various ways.

Papendrecht / Sliedrecht, 12 March 2002

Board of Management

R. van Gelder

P.A.M. Berdowski

K.G. van Nes

38

Above: A bulldozer

carries a discharge

pipe over a reclaimed

area.

Below: Discharge of

stone, sand, silt, clay

and water mixture

onto the landfill.

T H E E N V I R O N M E N T R E Q U I R E S C R E A T I V I T Y A N D F L E X I B I L I T Y

A valuable coral reef and the presence of

petrochemical installations meant a special

approach was required when the port of Ruwais

in the United Arab Emirates was being extended.

Sander Vlug, project manager:

"Clean water is what matters here. The water

has to be clean to preserve the coral reefs and

because the local petrochemical industry uses

seawater as cooling water. Dirty water would

clog up the filters and disrupt operations.

So our clients, ADNOC (Abu Dhabi National

Oil Company), Borealis and EPC Contractor

Technimont, asked us to make sure that the

concentrations of sand, silt and clay in the water

were kept to a minimum. Not just in the

dredging area around the dredger but also in the

water returning to the sea after the dredged

material had been pumped onshore."

Karoune Nipius, Hydronamic project engineer:

"The selected landfill site on shore was not

appropriate for natural water treatment. The

water would have flowed back into the sea too

quickly, taking too many suspended particles

with it. So we set up an area of 108 hectares as a

complex of meandering creeks, through which

we directed the water. In this way, all the fine

particles were given the opportunity to settle.

Continuous measurements we conducted

confirmed this. This meant that the water going

back into the sea was clean, a result which kept

everybody happy.

Environmental requirements of this kind mean

we have to be creative. That is what makes our

job so challenging."

39

40

Financial statements

The Annual Report 2001, including the financial statements for the same year, has been presented to the Supervisory Board by

the Board of Management. The financial statements, which have been audited and approved by KPMG Accountants nv, 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 2001;

the distribution of a cash dividend to shareholders of J 1.20 per share.

Membership of the Board of Management

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

members.

Membership of the Supervisory Board

The Supervisory Board is currently 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.

As at 9 May 2001, Mr. R.J. Nelissen stepped down upon reaching the statutory age limit. Mr. Nelissen has been a member of

the Supervisory Board since 1992 and Chairman of the Supervisory Board of the company since 1993. The Supervisory Board

is particularly grateful to Mr. Nelissen for the contributions he has made to the company and for the skillful way in which he

has presided over the board for many years.

The Supervisory Board has appointed one of its own members, Mr. S.D. de Bree, as chairman.

As at 9 May 2001 also, Mr. J. Aalberts was appointed to the Supervisory Board. His appointment was subject to the criteria

stated in the annex to the agenda of the Annual General Meeting of Shareholders of 9 May 2001.

Mr. S.D. de Bree will retire from the Board by rotation on 14 May 2002. Mr. De Bree has expressed his availability for

reappointment and the Supervisory Board intends to reappoint him.

Report of the Supervisory Board

-

-

-

41

Activities of the Supervisory Board

The Board had seven meetings with the Board of Management during the period under review. Permanent items on the agenda

were the results and the balance sheet, as well as industry and market developments. Some of the meetings were devoted to

the proposals made to Hollandsche Beton Groep nv with respect to dredging activities. The Board was also given extensive

information about the exchange of depositary receipts of shares and the associated amendment of the Articles of Association.

In addition, these meetings included discussions of strategic positioning, the corporate budget, acquisition and investment

proposals, internal control and risk management, as well as the human resources policy, the safety and health of the personnel

and the environment.

The report and management letter of the external auditor was also discussed in their presence. In addition, the Board discussed

the membership, succession and allocation of duties within the Board of Management.

Extensive consultations took place with the Board of Management outside these meetings to discuss current developments

concerning the company.

The Supervisory Board also met, outside the presence of the members of the Board of Management, to discuss topics

concerning the management of the company. Members of the Supervisory Board were also interested participants at

consultative meetings of 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 2001 and expresses its special appreciation for the dedication and commitment shown by all.

Papendrecht / Sliedrecht, 12 March 2002

The Supervisory Board

S.D. de Bree

J. Aalberts

M.W. Dekker

M. van der Vorm

A.A. Westerlaken

42

With European subsidies, 150 hectares of

farming land have been transformed into a

unique nature and recreational area on the edge

of the National Park 'de Biesbosch' in the south

of The Netherlands.

Kees Vreugdenhil, vice-director of subsidiary

A.H. Breijs & Zonen bv:

"Room for the river. That is the heart of this

Aakvlaai project. It was talked about for 30

years before we could get started. That is quite

understandable. People find it difficult to give

up the land they have won from the water.

But it is fascinating to see public opinion shift

over the course of time. There is an awareness

that space has to be created for nature and that

is good for people too. With sand and clay

recovered locally, we have created a magnificent

natural and recreational area. And that is

something we are quite proud of.

As a company, we have years of experience in

the Biesbosch. It is precisely for that reason that

this project was a unique challenge. We lowered

the dike which we strengthened ourselves at one

time. The water now flows over it when the

river is high.

We have been working here for two years and

you do fall in love with an area like this. You

must admit that there's something special about

meeting a pair of deer on your way to work."

R O O M F O R N A T U R E I S A L S O G O O D F O R P E O P L E

43

44

Principles of financial reporting

General

The financial statements on pages 45 to 62 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.

Change in accounting principles

Until 2000, 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, was charged

to the shareholders’ equity in the year of acquisition.

As of 2001, the difference referred to is capitalized and consistently amortized through the profit and loss account during its

estimated economic lifetime in accordance with the new Dutch Guidelines for Annual Reporting. Since no goodwill was paid

during 2001, the change in accounting principles did not affect the financial position as at 31 December 2001 and the result

for the year 2001.

Consolidation

The consolidated statements include Royal Boskalis Westminster nv and its group companies. Group companies are those

companies in which Royal Boskalis Westminster nv, either directly or indirectly, solely or on the basis of an agreement with

other shareholders, holds more than 50% of the voting shares and has a decisive management influence. The statements for

these group companies are fully consolidated.

The key consolidated group companies are listed in note 1. of the explanatory notes to the consolidated balance sheet and

profit and loss account. Joint ventures are consolidated in proportion to the interest held therein. 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 its 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 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.

45

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.

The annual depreciation for most of the plant and equipment is calculated as a percentage of the book value. This method of

declining depreciation is applied until the book value is equal to a predetermined residual value. Newly built large equipment

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. Investments in floating and other construction equipment, which are contract related, 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 I 25 million or more), where such calculations can be made on a reliable

basis, profits are accounted for as the work proceeds. 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.

47

-

-

-

-

-

-

-

Consolidated balance sheet after proposed profit appropriation (1)

(in J 1,000) 31 December 2001 31 December 2000

Fixed assets

Tangible fixed assets (2) 479,834 426,484

Financial fixed assets

associated companies (3) 54,280 52,984

other financial fixed assets (4) 4,435 2,187

58,715 55,171

Total fixed assets 538,549 481,655

Current assets

Inventory 20,715 17,804

Work in progress (5) ( 91,550 ) ( 91,531 )

Debtors and prepayments (6) 318,976 310,561

Bank deposits and cash (7) 193,179 154,590

Total current assets 441,320 391,424

Current liabilities

Creditors and accruals (8) 458,381 397,430

Repayments and bank debts (9) 20,696 15,981

Total current liabilities 479,077 413,411

Net current assets ( 37,757 ) (21,987)

Total assets less current liabilities 500,792 459,668

Long-term liabilities (10) 64,961 51,728

Provisions (11) 90,822 107,651

Shareholders’ equity (12) 345,009 300,289

500,792 459,668

The figures in brackets outside the columns refer to the explanatory notes.

Adjusted for comparison purposes.

48

-

-

*)

*)

(1)

*)

Consolidated profit and loss account (1)

49

(in J 1,000) 2001 2000

Net turnover (15) 1,081,542 882,029

Movement in work in progress 1,483 77,458

Other operating income (16) 2,473 3,710

Total operating income 1,085,408 963,197

External costs (17) ( 767,838 ) ( 675,494 )

Wages and salaries (18) ( 133,778 ) ( 125,939 )

Social security costs (19) ( 23,862 ) ( 22,122 )

Depreciation of tangible fixed assets (2) ( 62,214 ) ( 55,247 )

Total operating costs (987,692 ) ( 878,802 )

Operating result 97,716 84,395

Interest received 6,987 5,128

Interest paid ( 3,550 ) ( 3,417 )

Result from associated companies (3) 5,703 5,280

Net financial income 9,140 6,991

Result before taxation 106,856 91,386

Taxation (20) ( 29,138 ) ( 24,202 )

Net result 77,718 67,184

Profit per share (I 1.00) *) 3.00 2.61

Profit per share, fully diluted (I 1.00) **) 3.00 2.60

The figures in brackets outside the columns refer to the explanatory notes.

Profit for the financial year divided by the average number of outstanding ordinary shares.

Profit for the financial year divided by the average number of outstanding ordinary shares, adjusted for all potential ordinary

shares which will cause dilution effects.

(1)

*)

**)

Consolidated cash flow statement

(in J 1,000) 2001 2000

Cash flow from operations

Net result 77,718 67,184

Depreciation 62,214 55,247

Cash flow 139,932 122,431

Decrease working capital 45,813 1,697

Increase financial fixed assets ( 355 ) ( 2,210 )

(Decrease)/Increase provisions ( 16,829 ) ( 667 )

Direct movements in reserves ( 2,039 ) 378

Net cash flow from operations 166,522 121,629

Investments

Net investments in tangible fixed assets ( 123,703 ) ( 103,219 )

(In)/out of consolidation 8,139 ( 6,822 )

Acquisitions and disposals of group companies

and associated companies ( 3,189 ) ( 16,030 )

Total investments ( 118,753 ) ( 126,071 )

Financing

Movements of long-term liabilities

+ repayments on long-term loans 12,175 ( 667 )

Payment of dividend prior finanical year ( 27,129 ) ( 14,267 )

Purchase of (depositary receipts of) own shares - ( 4,518 )

Total financing ( 14,954 ) ( 19,452 )

Net cash flow from investments and financing ( 133,707 ) ( 145,523 )

(Decrease)/Increase in bank deposits and

cash/other short-term bank debts 32,815 ( 23,894 )

Bank deposits and cash/other short-term bank debts

As at January 1 140,780 164,674

As at December 1 173,595 140,780

(Decrease)/Increase in bank deposits and

cash/other short-term bank debts 32,815 ( 23,894 )

50

51

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

Other areas

Boskalis Westminster Ltd, Fareham (United Kingdom)

Rock Fall Company Ltd, Fareham (United Kingdom)

Westminster Dredging Company Ltd, Fareham (United Kingdom)

Zanen Dredging and Contracting Company Ltd, Fareham

(United Kingdom)

Zinkcon Contractors 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)

Enterpa Dragagem S.A., São Paulo (Brazil) (50%)

Bean Stuyvesant LLC, Delaware (United States of America) (50%)

Archirodon Group NV, Dordrecht (30%) (new)

Coastal and Inland Marine Services Inc., Ancon (Panama)

Dragamex SA de CV, Coatzacoalcos (Mexico) (50%)

Boscampo SARL, Douala (Cameroon)

Boskalis Taiwan Ltd, Taipei (Taiwan)

Boskalis International (S.) Pte Ltd (Singapore)

Zinkcon Marine Singapore Pte Ltd (Singapore)

The Netherlands

Aannemersbedrijf M. de Haan bv, Drachtstercompagnie

Aannemingsmaatschappij Markus bv, Halfweg

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

Hydronamic bv, Sliedrecht

Zanen Verstoep bv, Papendrecht

Zinkcon Contractors bv, Papendrecht

Zinkcon Dekker bv, Papendrecht

Zinkcon International bv, Sliedrecht

The complete list of consolidated group companies, joint ventures and associated companies has been filed at the Chamber of

Commerce in Rotterdam. Section 403, Part 9, Book 2 of the Netherlands Civil Code is applicable to a number of group

companies included in this list.

2. Tangible fixed assets

Balance as at 1 January 2001

Cost 36,001 910,826 38,878 530 60,962 1,047,197

Depreciation ( 19,258 ) ( 578,510 ) ( 22,747 ) ( 198 ) - ( 620,713 )

Net book value 16,743 332,316 16,131 332 60,962 426,484

Additions 2,373 27,373 9,166 3 94,838 133,753

In/(out of) consolidation - ( 5,885 ) ( 30 ) - ( 2,224 ) ( 8,139 )

Taken into service 11,840 67,038 110 - ( 78,988 ) -

Disposals at net book value ( 285 ) ( 2,110 ) ( 4,541 ) ( 1 ) ( 2,873 ) ( 9,810 )

Depreciation ( 2,303 ) ( 53,733 ) ( 6,158 ) ( 20 ) - ( 62,214 )

Other movements 28 ( 668 ) 27 7 366 ( 240 )

Total movements in 2001 11,653 32,015 ( 1,426 ) ( 11 ) 11,119 53,350

Balance as at 31 December 2001

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

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 I 1.7 million representing land used for sand production, has been accounted for under Land and

buildings (2000: I 3.2 million).

3. Associated companies

The key associated companies are:

Afvalstoffendepot Dordrecht bv, Dordrecht 17%

Bean Excavation LLC, Delaware 43.75%

Colcrete Friedrich von Essen Bau GmbH & Co. KG, Rastede 25%

Lamnalco Ltd, Nicosia 50%

New Zealand Dredging & General Works Pty Ltd, Wellington 50%

RW Aggregates Ltd, Dorking 50%

Van der Stoel Cable bv, Groningen 45%

52

TotalTangible fixed

assets under

construction

Fixed assets

not engaged in

normal

operations

Other

fixed assets

Floating and

other

construction

equipment

Land and

buildings

Movements during 2001 were as follows:

Book value as at 1 January 2001 52,984

Share of results 5,703

Dividends received ( 1,591 )

Investments/divestments ( 462 )

Other movements ( 2,354 )

Book value as at 31 December 2001 54,280

4. Other financial fixed assets

Movements during 2001 were as follows:

Book value as at 1 January 2001 2,187

Other movements 2,248

Book value as at 31 December 2001 4,435

5. Work in progress

2001 2000

Work in progress 356,512 328,475

Progress payments ( 448,062 ) ( 420,006 )

( 91,550 ) ( 91,531 )

Work in progress includes contracts of which the value of work done exceeds customer progress payments. At year-end 2001, the total amounts

of the value of work done and the customer progress payments of these contracts were I 105.9 million and I 35.1 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

2001 2000

Trade debtors 149,417 163,198

Amounts due from associated companies 19,801 19,340

Other debtors and prepayments 149,758 128,023

318,976 310,561

Included in Other debtors and prepayments as at the end of 2001 are receivables amounting to I 2.8 million which do not fall

due within one year (2000: I 2.3 million).

7. Bank deposits and cash

This includes is I 58.1 million (2000: I 43.7 million) of joint-venture funds. The remaining funds at the end of 2001 are at free

disposal. In order to hedge exchange and interest rate risks related to lease obligations for the trailer WD 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 I 70.1 million as per 31 December 2001 (2000: I 71.1 million),

is offset against the value of the currency swap and the related deposits, which also amounts to I 70.1 million.

53

8. Creditors and accruals

2001 2000

Trade creditors 97,810 72,386

Corporate taxes 36,055 29,853

Other taxes and social security payables 32,796 32,055

Dividend payable 30,960 27,129

Amounts due to associated companies 10,216 19,783

Other creditors and accruals 250,544 216,224

458,381 397,430

9. Repayments and bank debts

2001 2000

Repayments on long-term loans 1,112 2,171

Other debts 19,584 13,810

20,696 15,981

With respect to an amount of I 2.4 million in other bank loans, securities have been provided by means of the assignment of

debts for the same amount.

10. Long-term liabilities

2001 2000

Long-term loans 13,741 14,132

Taxes 25,557 15,967

Other creditors and accruals 25,663 21,629

64,961 51,728

As at 31 December 2001, the average interest rate for the long-term loans was 4.3%. The average remaining maturity period

of these loans is approximately 3 years. Long-term loans with a remaining term in excess of 5 years are approximately nil. The

repayments due in 2002 are accounted for under Repayments and bank debts. By means of a mortgage on a vessel amounting

to I 1.1 million, securities have been provided in respect of an outstanding long-term loan of I 0.7 million and the associated

repayments of I 0.4 million which, as mentioned in note 9, are due in 2002. Another part of long-term loans amounting to

I 0.5 million has been secured by the assignment of debts for the same amount. Long-term taxes payable consist of taxes due

after one year which are 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.

11. Provisions

2001 2000

Deferred taxation 19,013 17,164

Maintenance and repair 64,749 82,056

Pensions 3,673 3,772

Other 3,387 4,659

90,822 107,651

adjusted for comparison purposes

54

*)

*)

*)

*)

*)

The provision for deferred taxation mainly refers to temporary differences between the fiscal and commercial valuation of

equipment with a duration of 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 I 102 million (2000: approximately I 98 million) have been charged to the profit and loss account. Repairs

amounting to approximately I 119 million (2000: approximately I 93 million) were carried out during the year.

The provision for pensions relates to pension liabilities involving (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 given the

character of the provision for maintenance and repair.

12. Shareholders’ equity

Reference is made to notes 3 - 5 of the explanatory notes to the company balance sheet and profit and loss account.

13. 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 currency. In principle, positions in foreign currency are fully hedged, usually by means of forward

contracts. Financial derivatives (forward contracts, options, etc.) are not used unless there is an underlying real transaction.

In respect of controlling interest risks, the premise is that, in principle, interest rates for 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 as at

31 December 2001 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 2001

reflects the unrealized result at revaluation of the contracts against calculated forward exchange rates. As at 31 December 2001 the

unrealized negative result amounts to I 1 million (2000: I 9 million negative). The nominal value is I 264 million (2000: I 365 million).

55

14. Commitments and contingent liabilities

The guarantee commitments as at 31 December 2001 amount to I 521 million and can be specified as follows (x I 1 million):

2001 2000

Guarantees on behalf of:

associated companies 42 14

contracts and joint ventures 423 336

lease obligations and other financial obligations 56 65

521 415

For the guarantees outstanding at the end of 2001, counter-guarantees have been provided to banking institutions for approximately I 521

million (2000: approximately I 415 million). Two key group companies are jointly and severally liable in respect of several guarantees. In

respect of credit facilities, it has been agreed that no further securities on existing tangible fixed assets will be provided. Group companies

are jointly and severally liable for the non-consolidated part of the liabilities of their joint ventures, in total

I 220 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 I 5 million. In respect of some matters legal proceedings have been instituted against Royal Boskalis Westminster nv

or former group companies. Where deemed necessary, provisions have been made.

15. Net turnover

For the net turnover, in respect of contracts completed and specified per geographical region, reference is made to note 21. of

the explanatory notes. The turnover in respect of work done, defined as the total value of work done for third parties in 2001,

amounted to I 1,083 million (2000: I 960 million).

16. Other operating income

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

17. 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.

18. Wages and salaries

The remuneration (including social security and pension costs) of (former) members of the Board of Management and Supervisory

Board of Royal Boskalis Westminster nv amounted to I 1.6 million and I 0.1 million respectively (2000: I 1.5 million and I

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 2001 the group companies included in the consolidation had a total of 3,119 employees (2000: 3,295)

of whom 1,865 (2000: 1,901) were paid on a weekly basis. The average number of employees in 2001 was 3,257 (2000: 3,233).

56

-

-

-

19. Social security costs

These include an amount of I 7.5 million for pension costs (2000: I 7.0 million).

20. Taxation

The operational activities of Royal Boskalis Westminster nv are subject to various foreign 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 in an effective tax rate in the reporting period of 27.3 % (2000: 26.5%). 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):

2001 2000

Weighted average tax rate 30.1 29.5

Tax effect of:

Utilization of non-capitalized losses carried forward ( 7.4 ) ( 7.1 )

Non-capitalized future losses carried forward 10.5 4.2

Results not subject to taxation and non-deductible costs ( 5.9 ) ( 0.1 )

Effective tax rate 27.3 26.5

Taxation consists entirely of taxes on results from operating activities.

21. 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. 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 I 1 million):

2001 2000

The Netherlands 236 176

Rest of Europe 228 216

Australia / Asia 280 178

Middle East 44 63

Africa 91 99

North and South America 202 150

1,081 480 134 882 426 108

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.

57

Total investments

tangible fixed assets *)

Total book value

tangible fixed assets *)

Net turnover

completed contracts

Total investments

tangible fixed assets *)

Total book value

tangible fixed assets *)

Net turnover

completed contracts

*)

Company balance sheet after proposed profit appropriation (1)

(in J 1,000) 31 December 2001 31 December 2000

Fixed assets

Investment in group company (2) 344,976 299,008

Total fixed assets 344,976 299,008

Current assets

Amounts due from group companies 993 8,410

Dividend receivable 30,000 20,000

Total current assets 30,933 28,410

Current liabilities

Dividend payable 30,960 27,129

Total current liabilities 30,960 27,129

Net current assets 33 1,281

Total assets less current liabilities 345,009 300,289

Shareholders’ equity

Issued and fully paid share capital (3) 63,520 60,050

Share premium reserve (4) 17,650 21,120

Other reserves (5) 263,839 219,119

345,009 300,289

The figures in brackets outside the columns refer to the explanatory notes.

58

(1)

Company profit and loss account (1)

(in J 1,000) 2001 2000

Company result ( 283 ) 302

Result of group company (2) 78,001 66,882

Net result 77,718 67,184

(1) The figures in brackets outside the columns refer to the explanatory notes.

59

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 profit and loss account is limited in accordance with Section 402, Part 9, Book 2 of the Netherlands Civil Code.

2. Investment in group company

This refers to the 100% investment in Boskalis Westminster Dredging bv, Papendrecht. Movements during 2001 were as follows:

Book value as at 1 January 2001 299,008

Result of group company 78,001

Purchase of own (depositary receipts of) shares 540

2001 dividend to be received ( 30,000 )

Currency translation differences ( 2,573 )

Book value as at 31 December 2001 344,976

3. Issued and fully paid share capital

The authorized share capital has been amended in 2001 due to the conversion of the par value of a share from I 2.27 (NLG 5.00)

to I 2.40. Consequently, the total authorized share capital, consisting of 100,000,000 shares, increased from I 227 million to

I 240 million. The increase was fully charged to the share premium reserve. Furthermore the total authorized share capital is

divided into 50,000,000 ordinary shares (2000: 100,000,000 ordinary shares) and 50,000,000 cumulative protective preference

shares of I 2.40 par value each.

Movements of the issued and fully paid share capital were as follows:

2001 2000

Balance as at 1 January 60,050 59,497

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

Stock dividend for the prior reporting year debited to

the share premium reserve - 553

Balance as at 31 December 63,520 60,050

Movements in the number of ordinary (depositary receipts of) shares owned by the company were as follows:

2001 2000

Balance as at 1 January 585,744 571,036

Purchase of own (depositary receipts of) shares - 400,000

Issued as stock dividend - ( 228,292 )

Exercised option rights ( 35,500 ) ( 157,000 )

Balance as at 31 December 550,244 585,744

60

During the financial year 35,500 (depositary receipts of) ordinary shares have been issued. The issued and fully paid share

capital as at 31 December 2001 consists of 26,466,853 ordinary shares with par value I 2.40 each, and consequently amounts

to I 63.5 million. Of the issued and fully paid share capital as at 31 December 2001, one share is owned by Royal Boskalis

Westminster nv, as well as 550,244 ordinary shares.

In 1997 and 1998, option rights were granted to twenty senior managers of Royal Boskalis Westminster nv and its group

companies. In 2001 no option rights were granted. The number of outstanding options as at 31 December 2001, with one option

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

1997 31,500 25,500 g 17.38 21 May 1998 - 2002

1998 52,000 20,000 g 15.70 8 Apri l 1999 - 2003

83,500 45,500

4. Share premium reserve

Movements were as follows:

2001 2000

Balance as at 1 January 21,120 21,673

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

Issued stock dividend for the prior reporting year, see note 3. - ( 553 )

Balance as at 31 December 17,650 21,120

The share premium reserve is distributable free of tax.

5. Other reserves

Movements were as follows:

2001 2000

Balance as at 1 January 219,119 184,623

Reversal of dividend payable resulting from shareholders opting for a

stock dividend for the prior reporting year:

issue of new (depositary receipts of) shares - 4,756

issue of formerly purchased own (depositary receipts of) shares 540 4,025

Goodwill paid - ( 10,201 )

Purchase of own (depositary receipts of) shares - ( 4,518 )

Currency translation differences ( 2,578 ) 379

Proposed profit appropriation 46,758 40,055

Balance as at 31 December 263,839 219,119

A legal reserve for non-distributed profits of group and/or associated companies was not required at the end of 2001.

61

Period during which option

rights may be exercised

Exercise

price

Of which to members of

the Board of Management

Total remaining

option rights

Year

Granted

-

-

62

6. Commitments and contingent liabilities

Royal Boskalis Westminster nv heads the fiscal entity in which almost all Dutch 100% subsidiaries are included. The company

has issued guarantees on behalf of contracts, joint ventures and group companies.

These amounted to I 4 million at the end of 2001 (2000: I 2 million). Furthermore, the long-term operational lease commitments

of a foreign group company have been guaranteed for approximately I 5 million (2000: I 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 have been instituted against Royal Boskalis Westminster nv or former group companies.

Papendrecht / Sliedrecht, 12 March 2002

Supervisory Board

S.D. de Bree

J. Aalberts

M.W. Dekker

M. van der Vorm

A.A. Westerlaken

Board of Management

R. van Gelder

P.A.M. Berdowski

K.G. van Nes

63

Provisions in the articles of association relating to profit appropriation

Article 27

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.

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.

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.

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

Dividends shall be made available for payment within thirty days of their adoption, or any sooner as the Board of Management

may determine.

Unclaimed dividends will revert to the company after five years.

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.

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.

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.

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.

Other information

1.

2.

3.

4.

1.

2.

3.

4.

5.

6.

64

Proposed profit appropriation

In accordance with Article 27 of the articles of association, an amount of I 46.7 million of the net result after tax will be added

to other reserves. It is proposed that the balance of I 31.0 million should be appropriated for a dividend payment of I 1.20 per share.

Auditor’s Report

Introduction. We have audited the 2001 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 2001 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, 12 March 2002

KPMG Accountants nv

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.A. 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 2002

Royal Boskalis Westminster nv

Board of Management

Stichting Continuïteit KBW

The Board

65

Stichting Continuïteit KBW

66

Ten years Boskalis 1)

(amounts x t 1 million, unless stated otherwise) 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992

Turnover (work done) 1,083 960 851 801 697 569 493 582 545 425

Turnover (completed contracts) 1,081 882 784 782 637 520 499 594 486 446

Orderbook (work to be done) 2) 1,224 1,214 820 785 661 593 400 322 429 459

EBIT (= Operating result) 3) 97.7 84.4 73.9 56.8 41.4 28.6 30.9 38.6 35.2 25.1

EBITDA 4) 159.9 139.6 127.9 102.3 89.2 71.2 76.9 86.4 76.0 65.1

Net result 77.7 67.2 57.5 47.1 37.3 28.2 32.2 40.1 34.6 24.3

Depreciation 62.2 55.2 54.0 45.5 47.8 42.6 46.0 47.8 40.8 40.0

Cash flow 139.9 122.4 111.5 92.6 85.1 70.8 78.2 87.9 75.4 64.3

Shareholders’ equity 2) 345.0 300.3 265.8 234.9 211.4 190.4 171.3 150.7 120.8 97.7

Guarantee capital 2/5) 345.0 300.3 265.8 234.9 247.7 226.7 208.9 191.8 165.4 109.5

Number of oustanding shares (x 1,000) 2/9) 25,900 25,784 25,902 25,941 25,788 25,650 25,441 25,200 24,999 24,999

Personnel (number of persons) 2) 3,119 3,295 3,186 3,115 3,075 3,179 2,679 2,905 2,768 2,692

Ratios (percentages)

Operating result as % of the turnover 9.0 9.6 9.4 7.3 6.5 5.5 6.2 6.5 7.2 5.6

Return on capital employed 6) 16.9 15.9 16.8 15.7 13.2 11.5 13.5 18.5 19.7 17.4

Return on equity 7) 24.1 23.7 23.0 21.1 18.6 15.6 20.0 29.5 31.7 26.9

Solvency 2/8) 35.2 34.4 36.5 38.1 34.4 34.8 35.4 30.9 25.5 28.8

Figures per share (amounts x t 1.00)

Result per share 9/11) 3.00 2.61 2.22 1.82 1.45 1.10 1.27 1.59 1.38 0.98

Cash flow 9) 5.40 4.75 4.30 3.57 3.30 2.76 3.07 3.49 3.02 2.57

Shareholders’ equity 2/9) 13.32 11.65 10.26 9.05 8.20 7.42 6.73 5.98 4.83 3.91

Dividend per ordinary share 1.20 1.05 0.90 0.73 0.57 0.50 0.50 0.57 0.50 0.29

Dividend per cumulative preference share 10) - - - - - - - - - 0.41

Share price range (amounts x t 1.00)

(Depositary receipts of) ordinary shares 25.15 16.50 10.50 8.85 13.93 10.39 8.08 15.61 11.66 9.17

37.15 30.50 18.40 18.38 20.42 16.38 16.25 23.60 22.92 12.25

Certificates of cum. pref. shares 10) - - - - - - - - - 9.12

- - - - - - - - - 12.93

Figures taken from the financial statements.

As at 31 December.

Consists of earnings before interest, result from associated companies and taxation.

Consists of earnings before interest, result from associated companies, taxation, depreciation and amortization.

Defined as shareholders’ equity + long-term part of subordinated loans.

Net result + interest paid as % of the average capital employed (fixed assets + current assets – current liabilities).

Net result as % of the average shareholders’ equity.

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

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

On 1 June 1993 the cumulative preference shares were converted to ordinary shares in accordance with the Articles of Association.

The dilution effect was practically nil up to the financial year 2001.

Adjusted for comparison purposes.

1)

2)

3)

4)

5)

6)

7)

8)

9)

10)

11)

*)

*)

Dredging and coastal defense, riverbank protection, North-West Europe

The Netherlands Boskalis, Zinkcon Dekker, Rotterdam

Dredging, sand production, trade and transportation,

dry earth moving, coastal defense, riverbank and

bed protection

Boskalis Dolman, Rotterdam

Environmental activities

Aannemersbedrijf M. de Haan, Drachstercompagnie

A.H. Breijs & Zonen, Capelle aan den IJssel

Dry earth moving, transport of sand and gravel

Aannemingsmaatschappij Markus, Halfweg

Dry earth moving, soil decontamination, demolition

Belgium Boskalis Westminster Aannemers, Antwerp

Germany Bagger- und Bauunternehmung Delta, Bremen

Heinrich Hirdes,

Hamburg, Bremen, Kiel, Rostock

Dredging, dry hydraulic engineering, bottom

sealing, detection and disposal of explosives,

coastal and riverbank works

Heinrich Hirdes WuT, Duisburg, Berlin

Dredging, dry hydraulic engineering, bottom

sealing, detection and disposal of explosives,

coastal and riverbank works

Zinkcon Dekker Wasserbau, Bremen

Coastal defense, riverbank and bed protection

Finland Terramare, Helsinki

Dredging, underwater rock fragmentation, dry

earth moving, road building and civil engineering,

construction and foundation techniques

Estonia Terramare Eesti Osaühing, Tallinn

United Kingdom Westminster Dredging Company, Fareham

Boskalis Zinkcon, Fareham

Ireland Irish Dredging Company, Cork

Sweden Boskalis Sweden AB

67

Organization

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

C. Wielaart

J.A. Dolman

F.A. Verhoeven

C. Vreugdenhil, J.J. de With

C. Nelis

K.G. van Nes, J.H. Kamps

K.G. van Nes, H.G. Peistrup, G. Kensy

H.G. Peistrup J. de Reus

G. Kensy

J. J. de With

J. Yletyinen, H. Lindström, L. Kaijala

J. Yletyinen, T. Mäkelä, A. Vahepold

P.G. Roland, T.P. Greenall,

G. Willekes, D. Hough

R.M.J. Gardner, P.G. Roland

H. Lindström, J. Yletyinen, L. Kaijala

68

Dredging and coastal defense, riverbank and bed protection, rest of the world

The Netherlands Boskalis International, Papendrecht H.B. Huisman, M.C. Dekker, J.J. Scheele,

H.P.M. Sanders, T.L. Baartmans

France Atlantique Dragage, Nanterre C. Decrulle-Droulin, H.B. Huisman,

T.L. Baartmans

Spain Sociedad Española de Dragados, Madrid P. Venis, T.L. Baartmans, H.P.M. Sanders

Portugal Dragapor Dragagens de Portugal, Alcochete P. Venis, T.L. Baartmans, H.P.M. Sanders

Turkey Enka-Boskalis, Istanbul Prof. F. Keskinel, H.B. Huisman

Nigeria Nigerian Westminster Dredging and Marine, Lagos Chief Dr. M.A. Majekodunmi, S.B. Fasan,

G. Visser, L. Slinger

Gabon Boskalis International, Libreville H.B. Huisman, R. de Boer

South Africa Boskalis South Africa, Cape Town H.B. Huisman, R. de Boer

Middle East Boskalis Westminster Middle East, H.B. Huisman, K.A. Vakanas

Abu Dhabi/Dubai/Umm, Al-Quwain (UAE),

Manama (Bahrain), Doha (Qatar)

Boskalis Westminster Al-Rushaid, Dhahran (Saudi Arabia) H.B. Huisman, K.A. Vakanas

Boskalis Westminster Oman, Muskat (Oman) H.B. Huisman, K.A. Vakanas

Egypt Boskalis International Egypt, Cairo M. Atawi, H.B. Huisman

India Boskalis Dredging India, Bombay H.B. Huisman, C. Kootstra, D. van Uitert

Malaysia Boskalis International (Malaysia), Kuala Lumpur B.J.H. Pröpper, Dr. K.F. Bogaert, M. Salim

Singapore Boskalis International, Singapore B.J.H. Pröpper, Dr. K.F. Bogaert, J. Kok

Zinkcon Marine Singapore, Singapore B.J.H. Pröpper, J. Verdoorn

Indonesia Boskalis International Indonesia, Jakarta G.J.M. Schavemaker

Hong Kong Boskalis International, Kowloon J.J. Scheele

Taiwan Boskalis International, Taipei J.J. Scheele, H.P.Vrije

Thailand Boskalis International B.J.H. Pröpper, Dr. K.F. Bogaert

Korea Boskalis Westminster International J.J. Scheele, H.R. Lee

Japan Boskalis International, Tokyo J.J. Scheele, T. Kawai

Vietnam Boskalis International B.J.H. Pröpper, Dr. K.F. Bogaert

Australia WestHam Dredging Company, Sydney F. Hoogerwerf, M. Siebinga

New Zealand New Zealand Dredging & General Works, Wellington F. Hoogerwerf, M. Siebinga

USA Stuyvesant Dredging Company, New Orleans H.P.M. Sanders, J.H. Kamps, M.C. van de Ven

Bean Stuyvesant, New Orleans H.P.M. Sanders, J. Bean, B. Hoffman, M.C. van de Ven

Panama Coastal and Inland Marine Services, Balboa, Ancon H.P.M. Sanders, B. Bezemer

Mexico Dragamex, Coatzacoalcos P. Klip, C.D. Versteeg Z., H.P.M. Sanders,

T.L. Baartmans

French Guyana Atlantique Dragage, Cayenne T. de Veth, T.L. Baartmans, H.P.M. Sanders

Guyana Boskalis International T.L. Baartmans, D.F. Lim A Po, H.P.M. Sanders

Trinidad & Tobago Westminster Dredging (Overseas) T.L. Baartmans, H.P.M. Sanders, H.P. Vogelezang

Brazil Enterpa Dragagem, São Paulo Dr. L. Mendoça, T.L. Baartmans, H.P.M. Sanders

Venezuela Dravensa, Caracas T.L. Baartmans, C. Buitenhuis, H.P.M. Sanders

69

Underwater rock fragmentation

United Kingdom Rock Fall Company, Fareham G. T. Steel

Design and engineering

The Netherlands Engineering and project development Hydronamic, S.G. van Keulen

Papendrecht

Offshore services

The Netherlands Boskalis Offshore, Papendrecht G. Visser, J. Boender, J.F.A. de Blaeij

Pipeline landfalls, dredging of trenches, offshore mining

Norway Boskalis Offshore, Stavanger J. Boender, C.C.O.N. Granneman

Protection and stabilization of pipelines and underwater

installations

Central staff departments Finance and Administration R.T. Berends

Corporate Strategy & Business Development J.H. Kamps

Personnel & Organization T. F. Buirma

Central Plant Management E.C. Holman

Dredging Department H. Postma

Research & Development J.A. Eygenraam

Quality Assurance & Safety S.P. van Woensel

Legal Affairs K. Duppen

Information & Communications Technology J.A. Stam

Investor relations R.T. Berends

Corporate Communications I.A.M. de Bus

Works Council T.A. Scheurwater, chairman

L.J. Bouwens

M.A. Buddingh’

J. van Buren

P.T. den Dekker, secretary

G.C. Dubois

M.C.P. Hanssen-van der Velden

L. Hazenoot

M.J. Kooderings Clemens

H. van der Land

G.J. Lodonk

H.W. van der Pol

W.T. La Rivière

J.C. de Snoo

M. Treffers, vice-chairman

L. Pasma, secretary

70

Legal structure

Baggermaatschappij Boskalis bv

Boskalis Westminster Ltd

Boskalis Westminster International bv

Boskalis Offshore bv

Boskalis Westminster Middle East Ltd

Boskalis Svenska AB

Zanen Verstoep bv

BV Beheermaatschappij

T. den Breejen van den Bout

Boskalis Finance bv

A selection of operating companies and participating interests

Boskalis bv

Aannemersbedrijf M. de Haan bv

Boskalis Dolman bv

Hydronamic bv

Westminster Dredging Company Ltd

Westminster Gravels Ltd

Zanen Dredging & Contract Co. Ltd

PVW Int. Dredging & Harbour Works Ltd

Archirodon Group N.V. (30%)

Atlantique Dragage SARL

Bean Stuyvesant LLC (50%)

Boskalis Australia Pty. Ltd

Boskalis Dredging India Ltd

Boskalis International bv

Boskalis International Egypt SAE

Boskalis International (M) Sdn Bhd

Boskalis International (S) Pte Ltd

Boskalis International Uruguay S.A.

Boskalis Polska Sp. z.o.o.

Boskalis South Africa (Pty) Ltd

Boskalis Sweden AB

Boskalis Taiwan Ltd

Boskalis Westminster Aannemers N.V.

Boskalis Westminster Cameroun SARL

Boskalis Westminster (Oman) LLC (49%)

Boskalis Zinkcon bv

Coastal and Inland Marine Services Inc.

Delta GmbH

Sandpiper A/S

Van der Stoel Cable bv (45%)

Lamnalco Ltd. (50%)

Lamnalco (Malaysia) Sdn Bhd (24.5%)

Lamnalco Namibia (Pty) Ltd (35%)

A.H. Breijs & Zonen bv

Boskalis Markus bv

Zinkcon Dekker bv

Baggermaatschappij Holland bv

Boskalis Zinkcon Ltd

Rock Fall Company Ltd

RW Aggregates Ltd. (50%)

Dragamex SA de CV (50%)

Dravensa CA

Enka-Boskalis AS (50%)

Enterpa Dragagem SA (50%)

Heinrich Hirdes GmbH

Heinrich Hirdes Wasser- und Tiefbau GmbH

Koon Zinkcon Pte Ltd

Nigerian Westminster Dredging & Marine Ltd (60%)

N.Z. Dredging & General Works Ltd (50%)

Paragon International Engineers & Consultants bv

P.T. Boskalis International Indonesia

Seadreco Dredging (Malaysia) Sdn Bhd

Soc. Española de Dragados SA

Dragapor Dragagens de Portugal S.A.

Terramare Oy

WestHam Dredging Company Pty Ltd (50%)

Zinkcon Contractors bv

Zinkcon Dekker Wasserbau GmbH

Zinkcon International bv

Boskalis Offshore A/S

Lamnalco (Nigeria) Ltd (50%)

Lamnalco (Sharjah) Ltd (35%)

Boskalis Westminster Al-Rushaid Ltd (49%)

Holding and service companies

Royal Boskalis Westminster nv

Boskalis Westminster Dredging bv

The world of Boskalis

Mexico

Offices of Boskalis

Brazil Nigeria

United Kingdom

Finland

SwedenPortugal

United States

of America

GermanyThe Netherlands

Head off ice/Home market Home markets

71

72

Boskalis Zinkcon Ltd ‘Westminster House’, Crompton WaySegensworth West, FarehamHampshire PO 15 5SS, U.K.Telephone +44 (0) 1489 885922Fax +44 (0) 1489 578588

Irish Dredging Company Ltd ‘Pembroke House’, Pembroke StreetCork, IrelandTelephone +353 (0) 21 277399Fax +353 (0) 21 277586Mobile +353 (0) 87550486e-mail: dominicjdaly@aircom.netInternet: www.irishdredging.com

Rest of Europe

Boskalis Westminster Aannemers nv P.O. Box 1592000 Antwerp, BelgiumTelephone +32 (0) 3 2327340/2316979Fax +32 (0) 3 2320704Telex 34707

Atlantique Dragage Sarl9 Rue St Eloi78100 St Germain en Laye, FranceTelephone +33(0) 1 39040490Fax +33(0)1 34517459E-mail adra@atlantique-dragage.fr

Boskalis Offshore ASTangen 12, P.O. Box 5063, Dusavik4084 Stavanger, NorwayTelephone +47 5141100Fax +47 5141101e-mail: general@boskalis.no

Sociedad Española de Dragados SA C/sor Angela de la Cruz, No. 24Escalera Izqda. 3 C28020 Madrid, SpainTelephone +34 91 5701106 Fax +34 91 5700870e-mail: sedra@retemail.es

Dragapor Dragagens de Portugal S.A.Av. D. Manuel 12890 – 014 Alcochete, PortugalTelephone +351 (2) 1 234 8240 Fax +351 (2) 1 234 8269e-mail: spd.boskalis@mail.telepac.pt

A.H. Breijs & Zonen bvNijverheidstraat 682901 AR Capelle a/d IJssel P.O. Box 4290, 3006 AG RotterdamTelephone +31 (0) 10 45 82 022Fax +31 (0) 10 45 83 775e-mail: AHBreijs@planet.nl

Hydronamic bv Rosmolenweg 20, P.O. Box 2093350 AE PapendrechtTelephone +31 (0) 78 69 69 099Fax +31 (0) 78 69 69 869Telex 20505e-mail: general@hydronamic.nlInternet: www.hydronamic.nl

Aannemingsmaatschappij Markus bv Haarlemmerstraatweg 1491165 MK HalfwegP.O. Box 88, 1160 AB ZwanenburgTelephone +31 (0) 20 49 74 871Fax +31 (0) 20 49 78 032e-mail: Markus@boskalis.nl

United Kingdom and Ireland

Westminster Dredging Company Ltd ‘Westminster House’, Crompton WaySegensworth West, FarehamHampshire PO 15 5SS, U.K.Telephone +44 (0) 1489 885933Fax +44 (0) 1489 578588e-mail: wdco@boskalis.co.ukInternet:www.westminsterdredging.co.uk

Boskalis Westminster Ltd ‘Westminster House’, Crompton WaySegensworth West, FarehamHampshire PO 15 5SS, U.K.Telephone +44 (0) 1489 885933Fax +44 (0) 1489 578588

Rock Fall Company Ltd ‘Westminster House’, Crompton WaySegensworth West, FarehamHampshire PO 15 5SS, U.K.Telephone +44 (0) 1489 885876Fax +44 (0) 1489 578381e-mail: info@rock-fall.co.ukInternet: www.rock-fall.co.uk

Head office

Royal Boskalis Westminster nvRosmolenweg 20, P.O. Box 433350 AA PapendrechtThe NetherlandsTelephone +31 (0) 78 69 69 000Fax +31 (0) 78 69 69 555e-mail: royal@boskalis.nlInternet: www.boskalis.comTelex 29012

The Netherlands

Baggermaatschappij Boskalis bvBoskalis International bvRosmolen 20, P.O. Box 433350 AA PapendrechtTelephone +31 (0) 78 69 69 011Fax +31 (0) 78 69 69 555e-mail: royal@boskalis.nlTelex 29012

Boskalis Offshore bvRosmolenweg 20, P.O. Box 433350 AA PapendrechtTelephone +31 (0) 78 69 69 011Fax +31 (0) 78 69 69 571 Telex 29012e-mail: offshore@boskalis.nl

Boskalis bvZinkcon Dekker bv‘s-Gravenweg 399-405, P.O. Box 42343006 AE RotterdamTelephone +31 (0) 10 28 88 777Fax +31 (0) 10 28 88 766e-mail: n.w.europa@boskalis.nl

Boskalis Dolman bv‘s-Gravenweg 399-405, P.O. Box 44663006 AL RotterdamTelephone +31 (0) 10 28 82 800Fax +31 (0) 10 28 82 810e-mail: bkdolman@globalxs.nl

Aannemersbedrijf M. de Haan bvAldewein 29222 NG DrachtstercompagnieTelephone +31 (0) 512 341770Fax +31 (0) 512 340473

Offices around the world

73

Lamnalco LtdP.O. Box 45Rahima, Saudi ArabiaTelephone +966 (0) 3 6671565Fax +966 (0) 3 6673093Telex 651012

Boskalis Dredging India Ltd23 Sangeeta, Tagore RoadSantacruz (West)Mumbai 400 054, IndiaTelephone +91 (0) 22 6046699Fax +91 (0) 22 6040579e-mail: bkdi@bol.net.in

America

Boskalis International bv (Guyana)1, Water Cast, Quarry Wharf,KingstonP.O. Box 101768, Georgetown, GuyanaTelephone +592 (0) 22 59241Fax +592 (0) 22 58666e-mail: boskalis-guy@solutions2000.net

Atlantique Dragage SarlDégrad des Cannes, B.P. 13997323 Cayenne Cedex, French GuyanaTelephone +594 594 354459Fax +594 594 354254e-mail: atlantique.dragage@mdi-guyana.fr

Boskalis International bvP.O. Box 10.021Onverdacht, district Para, SurinamTelephone +597 352177Fax +597 352177

Westminster Dredging (Overseas) Ltd.# 824 Kenneth AvenueGulf ViewLa Romain, Trinidad and TobagoTelephone +1 868 6539150Fax +1 868 6539155

Coastal and Inland Marine Services, Inc.P.H. Centro Comercial Ciudad Siglo XXIAvendida Ricardo J. Alfaro y Cl. Juan Pablo IIBethania, Panama Telephone +507 2600051 / 88 / 96Fax +507 2361776e-mail: bbezemer@cwpanama.net

Middle East

Boskalis International (Egypt Branch)1 Ashaheed Gamal Al Fasakhani Street5th Avenue Alsabaa EmarateAlmaza – Heliopolis 11361, Cairo, EgyptTelephone +20 (0) 2 4175688Fax +20 (0) 2 4174262e-mail: Boskalis@intouch.com

Boskalis Westminster Middle East LtdFlat no. 1103, Saif Bin Ghobash BlagZayed 2nd StreetP.O. Box 4831, Abu Dhabi, U.A.E.Telephone +971 (0) 26 447306Fax +971 (0) 26 443158Telex 23068e-mail: boskalis@emirates.net.ae

Boskalis Westminster Middle East LtdP.O. Box 23486, Manama, BahrainTelephone +973 (0) 713255Fax +973 (0) 714276Telex 9900e-mail: bkw@emirates.net.ae

Boskalis Westminster (Oman) LLCP.O. Box 5063, RUWI, Muscat, OmanTelephone +968 705891Fax +968 705304Telex 3481

Boskalis Westminster Al-Rushaid LtdP.O. Box 539Dhahran Airport 31932, Saudi ArabiaTelephone +966 (0) 3 8981047 (Alkhobar)Telephone +966 (0) 3 8980028 (Al-Rushaid)Fax +966 (0) 3 8647320Telex 871072

Lamnalco LtdP.O. Box 5687, Sharjah, U.A.E.Telephone +971 (0) 65 692111Fax +971 (0) 65 691313Telex 68433e-mail: lamnalco@lamnalco.co.ae

Lamnalco LtdP.O. Box 61, Abu Dhabi, U.A.E.Telephone +971 (0)2 6455552Fax +971 (0) 2 6448826Telex 22631

Enka-BoskalisSu Yapilari Inçaati Ticaret A.S.Enka BinasiBestekar Sevki bey Sokak 32Balmumcu 80780 Istanbul, TurkeyTelephone +9021 2274 2574 / 75 Fax +9021 2272 8869 /212 274 2567Telex 26490

Delta GmbH Zinkcon Dekker Wasserbau GmbH11, zum Panrepel28307 Bremen, GermanyTelephone +49 (0) 421 438 350 Fax +49 (0) 421 438 3519

Heinrich Hirdes GmbH Bauhofstrasse 8b21079 Hamburg, GermanyTelephone +49 (0) 40 766 0940 Fax +49 (0) 40 760 9440e-mail: Heinrich.hirdesgmbh@arcormail.deInternet: www.hirdes.de

Heinrich Hirdes Wasser- und Tiefbau GmbHBaldusstrasse 347138 Duisburg, GermanyTelephone +49 (0) 203 994 6511Fax +49 (0) 203 994 6521e-mail: Hhirdes@arcormail.deInternet: www.hirdes.de

Terramare OyLaurinmäenkuja 3a, P.O. Box 14FIN-00441 Helsinki, FinlandTelephone +358 (9) 0 613621Fax +358 (9) 0 61362700e-mail: terramare@terramare.fi Internet: www.teramare.fi

Boskalis Sweden AB Lundbyhamnen 122S-41754 Göteborg, SwedenTelephone +46 31 507330Fax +46 31 515039e-mail: dredging@boskalis.seInternet: www.boskalis.se

Terramare Eesti OsaühingRegati pst.1-33EE-0019 Tallinn, EstoniaTelephone / fax +372 6238113

74

Zinkcon Marine Singapore Pte Ltd19, Pandan RoadSingapore 609271Jurong Post Office P.O. Box 446Singapore 916415Telephone +65.6733.3471Fax: +65.6734.2510

Boskalis Westminster International bvKorea BranchSuite 711, Hanaro Building194-4, Insa-dong, Jongkro-Ku, Seoul,South KoreaTelephone +82 (0) 2 7338973 Fax +82 (0) 2 7338974

Boskalis International bvRoom 1702, Tower 1China Hong Kong City33 Canton Road, Tsim Sha TsuiKowloon, Hong Kong SARTelephone +852 23762330Fax +852 23763489e-mail: bkihkb@netvigator.com

Boskalis International (M) Sdn BhdNo. 4018, 4th Floor, President HouseJalan Sultan Ismail, 50250 Kuala Lumpur,MalaysiaTelephone +60 (0) 3 21448092Fax +60 (0) 3 21448093e-mail: boskalis@pcjaring.my

P.T. Boskalis International IndonesiaPlaza Centris 12Ath FloorJl. H.R. Rasuna Said Kav. B-5,Kuningan Jakarta 12910, IndonesiaTelephone +62 (0) 21 5269020-1Fax +62 (0) 21 5269022e-mail: boskalis@cnb.net.id

Boskalis International bvSuite 22, 3rd FloorLegaspi Towers 3002600 Roxas Blvd. Cor. Vito Druz Manila,PhilippinesTelephone +63 (0) 2 5241627Fax +63 (0) 2 5217062

Boskalis International bvGPHA Headquarters, room 503P.O.Box 150Tema, GhanaTelephone +233.22.203850Fax +233.22.212070

Nigerian Westminster Dredging andMarine Ltd‘Westminster House’ Plot 1601 Adeola Hopewell Street,Victoria IslandP.O. Box 1518, Lagos, NigeriaTelephone +234 (0) 1 2624580 / 581Fax +234 (0) 1 2624582 e-mail: nwdm@nova.net.ng

Lamnalco (Nigeria) Ltd56, Ogunu Road,P.O. Box 799Warri, Delta State, NigeriaTelephone +234 (0) 12 646490 ext 44 727(via Shell Lagos)

Australia and Far East

WestHam Dredging Company Pty LtdP.O. Box 1891, North SydneyN.S.W. 2059, 122 Arthur Street, Level 8 North Sydney, AustraliaTelephone +61 (0) 2 99595715 Fax +61 (0) 2 99595721e-mail: wh.manager@westham.com.au

New Zealand Dredging & General WorksPty LtdP.O. Box 1891, North Sydney N.S.W. 2059, AustraliaTelephone +61 (0) 2 99595715Fax +61 (0) 2 99595721

Boskalis International (S) Pte Ltd19, Pandan RoadSingapore 609271Teban Garden Post Office, P.O. Box 629Singapore 916001Telephone +65 67335622Fax: +65 67327530e-mail: boskalis@boskalis.com.sg

Dravensa C.A.Edificio ONIX, Piso 6, Oficina 61Calle Sojo – El RosalCaracas, VenezuelaTelephone +58 (0) 212 951 7967 / 6712Fax +58 (0) 212 951 2773e-mail: dravensa@telcel.net.ve

Enterpa Dragagem SAAv. Alberto Augusto Alves, 303São Paulo, BrazilTelephone +55 11 3746 0091Fax +55 11 3746 7799

Stuyvesant Dredging Company3525 North Causeway Boulevard,Suite 612Metairie, Louisiana 70002, U.S.A.Telephone +1 504 8310880Fax +1 504 8370407

Bean-Stuyvesant LLC1055 St. Charles Avenue, Suite 500New Orleans, LA 70151-1118P.O. Box 51118New Orleans, LA 70130, U.S.A.Telephone +1 504 5878600Fax +1 504 5861007e-mail: bsllc@cfbean.com

Dragamex SA de CVRnln 7.5 Carretera Coatzacoalcos-MinatitlánC.P. 96400 Coatzacoalcos Veracruz,MexicoTelephone +52 (1) 921 211 8200Fax +52 (1) 921 211 8208e-mail: dragamex1@terra.com.nx

Africa

Boscampo G.I.E.B.P. 4054, Douala, CameroonTelephone +237 420909/420064Fax +237 427676

Boskalis International bv - GabonP.O. Box 336, Libreville, GabonTelephone +241 702186Fax +241 70185e-mail: lbv@internetgabon.com

Equipment

7Screeder pontoons

for waterbed protection (clay and stone)

21 + 5*Booster stations

Total installed power from

390 to 6,150 kW

8 + 1*Stone transportation barges

Capacity 120 to 2,000 t

7Suction dredgers

Total installed power from

656 to 4,050 kW

21 + 6*Backhoes

Bucket capacities from 1.4 to 11 m3

124 + 108*Launches, tugs, supply and crew boats

Propulsion power from 30 to 4,412 kW

25 + 1*Floating grab cranes (grab dredgers)

Grab capacities from 1.2 to 9.2 m3

3Remote-controlled

underwater dredging units

Maximum dredging depth 600 m

4Stone dumping vessels

Carrying capacities 354 to 1,400 t

1Environmental disc cutter

5Barge unloading dredgers

Total installed power from

1,650 to 4,300 kW

9 + 1*Self-propelled hoppers

Hopper capacities from 500 to 1,983 m3

31 + 4*Work boats

Propulsion power from 133 to 918 kW

5 + 1*Drill barges

1 + 1*Dynamically positioned

fallpipe vessel

Carrying capacity 17,000 to 18,500 t

* Owned by associated companies

In addition to the equipment shown here, the group also owns a range of auxiliary equipment such as floating pipelines, winches, pumps, drag lines, hydraulic excavators, wheel loaders,

dumpers, bulldozers, mobile cranes, crawler drill rigs, sand pilers, filling installations for shore protection mattresses, fixed land pipelines, various pontoons and houseboats.

75

8 + 1*Trailing suction hopper dredgers

Hopper capacity >6,000 m3

19 + 10*Trailing suction

hopper dredgers

Hopper capacity <6,000 m3

3 Self-propelled sea-going

cutter suction dredgers

Total installed power from 14,733 to 15,830 kW

26 + 19*Cutter suction and

bucket-wheel dredgers

Total installed power 257 to 9,262 kW

7Bucket dredgers

Bucket capacity

from 450 to 900 liters

102 + 11*Hopper and transportation barges

Hopper capacities from 300 to 2,336 m3

4 Floating hoisting pontoons

Hoisting capacities from 10 to 270 t

1‘Tracked’ underwater

dredging unit

Remote-controlled

Glossary

Acquired orders The contract value of acquired assignments

Backhoe Hydraulic excavating crane 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 in which water is extracted.

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

Cost leadership Achieving lowest cost price.

Cutter suction dredger Ship for pumping solid sediment or rocks which require cutting before pumping.

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, result from associated companies and taxation.

EBITDA Earnings before interest, result from associated companies, taxation, 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.

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 Shipping and Transport College in Rotterdam in which a modular

curriculum has been developed exclusively for Boskalis which trains Dutch people and

people from abroad for work on the Boskalis fleet. This training will enable them to take up

officer positions in the future.

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77

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 sea-going vessels. The standard requires

shipowners to establish and maintain a safety management system. From 1 July 2002

onwards, sea-going dredging vessels will also be required to meet the requirements of this code.

ISO-9001/ISO-9002 Standards of the International Organization for Standardization; the global federation of

national normalization organizations. ISO-9001: This standard sets out standard

requirements for quality management systems. The quality management system of Royal

Boskalis Westminster has been certificated in accordance with this standard. The ISO-9002

(1994) standard covers the same area, but excludes design activities. The operating company

Rockfall is the only one of our companies to be certificated in accordance with this standard,

the others use the 9001 standard.

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 Still uncompleted parts of contracts

Plant Management System System that provides support for the clear and structured management of ships by means of

internal procedures.

QA/HSE Quality Assurance/Health, Safety and Environment specialist

TEU Twenty feet Equivalent Unit

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

remote-controlled

Trailer suction hopper dredger Ship with hold for the transportation of sediment with its own suction and discharge unit

Turnover work done Volumes produced

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A N N U A L R E P O R T 2 0 0 1

Royal Boskalis Westminster nvWe move the earth to a better place

Royal Boskalis Westminster nvWe move the earth to a better place

9509419_Omslag_GB 23-04-2002 07:54 Pagina 1