Press release

Papendrecht, 14 March 2013

Highlights of 2012
·         Record revenue of EUR 3.1 billion
·         Record order book of EUR 4.1 billion
·         Net profit of EUR 250 million
·         EBITDA of EUR 568 million
·         Proposed unchanged dividend: EUR 1.24 per share

outlook
·         Continued challenging market conditions in 2013
·         Integration and consolidation of Dockwise from second quarter 2013

Royal Boskalis Westminster N.V. (Boskalis) achieved a record revenue of EUR 3.1 billion in 2012 (2011: EUR 2.8 billion). Net profit amounted to EUR 250 million, thus remaining virtually stable compared to 2011 (EUR 254 million). Despite the slight decline in net profit and a substantial increase in the number of outstanding shares as a consequence of the recent equity issue in connection with the acquisition of Dockwise, Boskalis intends to pay-out an unchanged dividend of EUR 1.24 per share.

EBITDA dropped to EUR 568 million (2011: EUR 591 million) and the operating result (EBIT) fell to EUR 337 million (2011: EUR 354 million). The contribution from Dredging declined as a consequence of lower volume of work. Challenging market conditions in Inland Infra led to a lower result with an increase in revenue. The remaining activities, Offshore Energy and Towage & Salvage, achieved a respectively virtually stable and slightly higher operating result.

The order book increased to EUR 4.106 million as per end-2012 (end-2011: EUR EUR 3.489 million). Compared to the 2012 mid-year level the order book was also higher at the end of the year.

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Peter Berdowski, CEO Boskalis:
"Despite the challenging market conditions we look back on a fine year in which we took major steps in further strengthening and expanding the company. 2012 was a year in which a broad recovery of the global economy failed to materialize. Against that background we turned in a good performance with record revenue and an all-time high order book of EUR 4.1 billion, evenly spread across all our activities.

While executing and acquiring works kept us busy, we continued to expand the business within the strategic framework of our business plan. In addition to completing the integration with SMIT we took an important step with the acquisition of Dockwise. The combination will sharply grow our position in the offshore energy sector and allow us to offer new perspectives to both our clients and our staff.

No material change is expected in market conditions in 2013, with volumes and margins remaining under pressure. Based on the current level of the order book we expect healthy utilization levels of the equipment, in particular the hoppers. Furthermore 2013 will revolve around the integration and consolidation of Dockwise. Together with the management of Dockwise we have already taken the first concrete steps in this direction."

Market Developments
The markets in which Boskalis operates are driven in the long term by growth in global trade, energy consumption and the world's population, as well as by the effects of climate change.

The medium-term picture is mixed for the markets in which we operate. On the one hand we are seeing continued reluctance on the part of governments, particularly in Europe, to invest. On the other we are seeing private initiatives for new infrastructure projects being developed by clients in various regions of the world and across the different market segments. This applies in particular to energy and raw materials-related projects in South America, West Africa and Australasia as well as to port developments outside of Europe.

Market developments in the offshore energy market have a bearing on a substantial part of our business. We expect demand for and construction of new oil and LNG import and export terminals (Dredging and Dockwise) to lead to growth in terminal services (Smit Lamnalco).

For the rest, developments at Offshore Energy are strongly dependent on an upturn in demand from the energy markets, particularly those in North-West Europe, Brazil and Southeast Asia.

Outlook
Capital expenditure for the coming year is expected to be around EUR 325 million, excluding Dockwise which can be funded form the cash flow. The acquisition financing for Dockwise and the refinancing of existing Dockwise and Boskalis bank facilities will push up the total debt position. Subsequent to the (re)financing, Boskalis will retain a solid financial position.

For 2013, we expect that the current market developments will once again have a dampening effect on the structurally positive trends that underpin our strategy. Current information suggests that the year ahead will bring little change to the market picture compared to 2012. At Dredging we expect to see healthy fleet utilization levels and a stable operating margin development. The same outlook also applies to the other activities Offshore Energy, Inland Infra and Towage & Salvage.

The project-based nature of a significant part of our activities tends to make it difficult to give a specific quantitative forecast of the full-year result early on in the year. In addition the 2013 result will be strongly influenced by the consolidation of Dockwise (from the beginning of the second quarter of 2013), the possible sale of our 40% stake in Archirodon and the customary exceptional (one-off) effects associated with an acquisition. In light of these factors we are currently unable to provide quantitative guidance with regard to the 2013 full-year result.


Dividend Policy And Proposal
The main principle underlying the Boskalis dividend policy is to distribute 40% to 50% of the net profit from ordinary operations as dividend, whereby Boskalis aims to achieve a stable development of the dividend for the longer term. The choice of dividend form (in cash and/or entirely or partly in shares) takes into account the company's desired balance sheet structure as well as the interests and wishes of the shareholders.

Despite the slightly lower net profit and a substantial increase in the number of outstanding shares due to the recent equity issue in connection with the acquisition of Dockwise, Boskalis intends to pay-out an unchanged dividend of EUR 1.24 per share. This equates to a profit payout of 58%. In light of this, Boskalis will propose to the Annual General Meeting of Shareholders on 8 May 2013 that a dividend of EUR 1.24 per share be distributed in the form of ordinary shares, unless the shareholder opts to receive a cash dividend. The dividend will be payable from 4 June 2013.

Key figures 2012 2011
(in millions of EUR)    
Revenue 3,081 2,801
EBITDA 568 591
Operating profit 337 354
Result of associated companies 0.3 2.0
Net profit 250 254
Dividend per share (in EUR) 1.24 1.24
     
  31-12-2012 31-12-2011
Order book 4,106 3,489

Click here for the full version of the press release including all the financial details

Live Audio Webcast
The Board of Management of Royal Boskalis Westminster will comment on the 2012 full-year results at the analyst meeting (11.15 am - 12.30pm CET) on 14 March 2013. This meeting can be followed by means of a live audio webcast (Dutch spoken with a simultaneous translation), details of which can be found on the homepage (www.boskalis.com).

Publication of Annual Report
Royal Boskalis Westminster N.V. will publish both its 2012 Annual Report and its 2012 Corporate Social Responsibility (CSR) report today. These reports are being released in both Dutch and English and will be available at www.boskalis.com from 11.00 CET.




FINANCIAL AGENDA
2013
14 March Publication of 2012 Annual Report
14 March Publication of 2012 CSR Report
8 May Trading update on first quarter 2013
8 May General Meeting of Shareholders
10 May Ex-dividend date
14 May Record date for dividend entitlement (after market close)
27 May  

Final date for stating preference for dividend in cash or shares

 
30 May Determination and publication of conversion rate for stock dividend based on the volume-weighted average share price on 28, 29 and 30 May (after market close)

 
4 June Date of dividend payment and delivery of shares
15 August Publication of 2013 half-year results
15 November Trading update on third quarter of 2013

This is an English translation of the Dutch press release. In the event of any disparity between the Dutch original and this translation, the Dutch text will prevail.

FOR FURTHER INFORMATION


Investor Relations:

Martijn L.D. Schuttevâer

ir@boskalis.com


Press:

Arno Schikker

press@boskalis.com


T +31 78 6969310

F +31 78 6969020

Royal Boskalis Westminster N.V. is a leading global services provider operating in the dredging, maritime infrastructure and maritime services sectors. The company provides creative and innovative all-round solutions to infrastructural challenges in the maritime, coastal and delta regions of the world through the construction and maintenance of ports and waterways, land reclamation, coastal defense and riverbank protection. In addition Boskalis executes projects and offers a wide variety of marine services for the offshore energy sector including subsea, transport, heavy lift and installation services (carried out by Boskalis Offshore) and performs towage services and marine salvage work (carried out by SMIT). Boskalis also has strategic partnerships in the Middle East (Archirodon) and in terminal services (Smit Lamnalco). Boskalis has a versatile fleet of over 1,100 units and operates in around 75 countries across six continents. Including its share in partnerships, Boskalis has approximately 15,600 employees.

This press release can also be found on our website www.boskalis.com.

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