REMUNERATION REPORT 2017 REPORT REMUNERATION 2017

REMUNERATION REPORT 2017 — BOSKALIS 1 CONTENTS TABLE OF 9 7 5 3 REMUNERATION POLICY SUPERVISORY BOARD IN 2017 REMUNERATION POLICY APPLICATION OF MANAGEMENT FOR THEBOARDOF REMUNERATION POLICY INTRODUCTION

2 REMUNERATION REPORT 2017 — BOSKALIS REMUNERATION REPORT 2017 — BOSKALIS 3 INTRODUCTION advice tothemembers oftheBoardManagement. thatthisremunerationadviser doesnotprovide ascertained ofanindependentremunerationadviser andhas services The RemunerationCommittee regularlyavailsitselfofthe Mr. Van derVeer. Remuneration Committeeandwassucceededby Mr. Niggebruggesteppeddown asmemberofthe Mr. Niggebruggeasamember. On10May2017 members, withMr. Van Woudenberg and aschairman In 2017theRemunerationCommitteeconsistedoftwo MEMBERS OFTHEREMUNERATION COMMITTEE ‚ Boardon: Supervisory It istheroleofRemunerationCommitteetoadvise THE REMUNERATION COMMITTEE DUTIES ANDRESPONSIBILITIESOF ‚ Meeting ofShareholders foradoption; Boardshall presentthepolicytoGeneral Supervisory Code2016(the “Code”).The the Corporate Governance shall considerandincludeall mattersrequiredbylawand ratios withinthecompany. TheRemunerationCommittee pay connected withitandtaking intoaccounttheinternal value creationforthecompanyandbusiness long-term members oftheBoardManagement withfocuson theremunerationpolicytobepursuedfor concerning the submissionofaclearandunderstandableproposal

‚ ‚ Remuneration Committeeincluded: During theyearunderreviewactivitiesof Board. Committee werepresentedtotheentireSupervisory andfindingsofthemeetingsRemuneration Reports meetings. The Committeealsoheldregularconsultationsoutsidethese with allmembershavingattendedeachofthemeetings. The RemunerationCommitteemetthreetimesduring2017, ACTIVITIES DURING2017 ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ performing a remuneration survey for the Supervisory for the Supervisory aremuneration survey performing Management; for the Boardof aremuneration survey performing revising thelabormarketreference group; all contractsoftheBoard Management withtheCode; submitting aproposaltoaligntheseverancepaymentsin who arenotmembersoftheBoardManagement; remuneration ofthemembersGroupManagement, discussing withtheBoardofManagement framework oftheRemunerationPolicy; amount andstructureoftheirownremunerationinthe members oftheBoardManagementwithregardto others notehasbeentakenofviewstheindividual accordance withthelawandCode,whereinamong individual membersoftheBoardManagementin theremunerationof submitting aproposalconcerning scenarioanalyses; performing developments intheNetherlandsandinternationally; staying abreastofthelatestcorporategovernance market; international policy forseniormanagementintheDutchand itselfofdevelopments surroundingremuneration informing website. shallbeplacedonthecompany’sremuneration report Board’s by lawandtheCode.TheSupervisory Committee shallconsiderandincludeallmattersrequired implemented inthepastfinancialyear. TheRemuneration ontheremunerationpolicy the preparationofreport regard totheamountandstructureoftheirremuneration; individual membersoftheBoardManagementwith Remuneration Committeeshalltakenoteoftheviews remuneration oftheBoardManagement, theproposalfor affiliated enterprise.Whenformulating carried outandthepayratioswithcompanyits criteriaused,thescenarioanalysesthatare performance the fixedandvariableremunerationcomponents, any event,covertheremunerationstructure,amountof remuneration policythathasbeenestablishedandwill,in proposal shallbedrawnupinaccordancewiththe of individualmemberstheBoardManagement.The theremuneration the submissionofaproposalconcerning Board. 28 March 2018. General Meeting ofShareholderstobepublished on notesto theagendaof oftheexplanatory part will form line withmarketlevel.Thetext oftheproposedadjustment Meeting ofShareholderstobring thelevelofremunerationin BoardtotheGeneral remuneration policyfortheSupervisory Board willproposeanadjustmentinthe The Supervisory than themedianoflabor marketreferencegroup. Boardisrelatively lower remuneration oftheSupervisory showthatthe Board.Theresultsofthissurvey Supervisory calibrate thelevelofremunerationmembers to hasbeenperformed In 2017alsoaremunerationsurvey circumstances. Management inlightofthecurrentmarketdevelopmentsand remuneration policyforthemembersofBoard Remuneration Committeere-evaluatedin2017theprevailing 2016,the As alreadyannouncedintheRemunerationReport Industries, OCI,KPNandTKHGroup. Group, PostNL,Wolters Kluwer, Arcadis,Vopak, Aalberts byBAM,DSM,Fugro,SBMOffshore,Sligro,RELX formed activities. Thenewlabormarketreferencegroupisthus ofsizeandbusiness companies thatarecomparableinterms Dutch(AEXandAMX-listed) consists ofamixfourteen Board.Thenewcomposition approved bytheSupervisory of theincludedcompanies,whichproposalhasbeen market referencegroupduetoachangeinthestatusofone The RemunerationCommitteeproposedtorevisethelabor the executionofitsactivities. remunerationadvisortoassistin commissioned anexternal In theyearunderreview, theRemunerationCommittee GROUP REVISION OFTHELABORMARKETREFERENCE Meeting ofShareholderstobepublishedon28March2018. notestotheagendaofGeneral of theexplanatory part The textoftheproposedremunerationpolicywillform 2018. will beintroducedtoapplicablefrom1January incentivescheme the marketandashare-basedlong-term the BoardofManagementwillbebroughtmoreinlinewith held on9May2018,whereinthelevelofremunerationfor Management totheGeneralMeetingofShareholdersbe an adjustmentintheremunerationpolicyforBoardof Boardhasdecidedtopropose Based onthistheSupervisory incentive scheme. – incontrasttoBoskalishaveashare-basedlong-term In addition,moreand(AEXAMX-listed)companies variableelement. This asaresultofrelativelylowlong-term (P25). reference groupbeloworaroundthelowestquartile Management areincomparisonwiththelabormarket compensation packageforallmembersoftheBoard appropriate basicsalary, butthattheoveralldirect members oftheBoardManagementreceivean showsthatthe The outcomeofthisremunerationsurvey AND REMUNERATION SURVEYS 4 REMUNERATION REPORT 2017 — BOSKALIS REMUNERATION REPORT 2017 — BOSKALIS Remuneration policy for the Board of Management 5 Variable Fixed remuneration Type of REMUNERATION PACKAGE FORMEMBERSOFTHEBOARDMANAGEMENT measures). performance (including pay-outlevelsand–whereapplicable package formembersoftheBoardManagement oftheremuneration The tablebelowprovidesanoverview ELEMENTS OFREMUNERATION Boskalis website(www.boskalis.com). The fulltextoftheremunerationpolicycanbefoundon consideration oftheriskstocompany. andnon-financialindicatorswithdue performance included thedevelopmentofresults,Boskalisshareprice theamountand structureoftheremuneration determining scenario analyses.Otherfactorstakenintoaccountin byperforming determined were analyzedandinpart fortheremunerationofindividualboardmembers long term) and outcomes ofthevariableremunerationelements(short within thecompanywereadheredtoandthatpotential executing theremunerationpolicyratios thatindefiningand Remuneration Committeeascertained clients, employeesaswellthe‘widerenvironment’.The and takeintoaccounttheinterestsofBoskalis’shareholders, orientationandcontinuity which arecenteredonlong-term is consistentwiththestrategyandcorevaluesofBoskalis, 2011.Theremunerationpolicy Shareholders on21January Management wasadoptedbytheGeneralMeetingof The currentremunerationpolicyfortheBoardof THE BOARDOFMANAGEMENT REMUNERATION POLICYFOR

D. Long-term element D. Long-term element C. Short-term B. Pensionplan (xEUR1,000) A. Basicsalary Element ofremuneration - Realizingcorporate policy -  measured: Performance Period: - 50%individualtargets - 50%full-yearnetresult measure: Performance Period: — Period: Performance period&measures Share priceperformance 3years 1year 2017 individual performance, with payment of the short-term withpayment oftheshort-term individual performance, Boardsetstargetsforfull-yearnetresultand The Supervisory C –SHORT-TERM VARIABLE ELEMENT fiscal capofEUR105,075.Theretirementtargetageis68. schemewitha averageearnings indexed non-contributory pension fund.Pensionaccrualisbasedonaconditionally Boskalis pensionscheme,whichisadministeredbyPGB inthe The membersoftheBoardManagementparticipate B –PENSIONPLAN advisor.obtained byanexternal remuneration policyandcheckedperiodicallyusingdata labor marketreferencegroupinaccordancewiththe basedonthe isdetermined The amountofthebasicsalary A –BASICSALARY commercial achievements. strengthening ofthedivisionalactivitiesandspecific execution ofthestaffrationalizationplan,further objectives asdefinedfor2017.Examplesincludethe Boskalis’ strategicagendaandareinlinewiththecorporate objectivesare directlyderivedfrom Individual performance that therelevantproceduresarefollowedcorrectly. variableelementandisresponsible forensuring short-term ofthe auditorisinvolved inthefinaldetermination external ofquantity. solely interms net resultisdetermined The quantity (dependingonthespecifictarget),whilefull-year ofqualityand/or Individual targetsareassessedinterms variable elementsubjecttothesebeingmet. Maximum BoMmember: At targetBoMmember: Maximum CEO: At targetCEO: Maximum BoMmember: At targetBoMmember: Maximum CEO: At targetCEO: See tableonpage8 BoM member: CEO: Payout EUR792.8 EUR573.5 50%ofbasicsalary 50%ofbasicsalary 75%ofbasicsalary 75%ofbasicsalary

45%ofbasicsalary 45%ofbasicsalary 67.5%ofbasic salary 67.5%ofbasicsalary ensuring thattherelevantproceduresarefollowedcorrectly. variableelement andisresponsiblefor the long-term of auditorisinvolvedinthefinaldetermination The external the corporateobjectivesarelargelyassessedquantitively. creation ofshareholdervalueisassessedqualitativelywhile targets weremetoverthepastthree-yearperiod.The by the degreetowhichstated element) isdetermined variable Establishing theultimatescore(oflong-term Management and45%fortheothermembers). oftheBoard fixed annualincomeforthechairman is establishedequaltothe‘attarget’percentages(50%of periodabasicbonusamount oftheperformance At thestart period. performance andpriortotheendofthree-year prior tothestart ratio betweentheaveragesharepriceoverthreemonths ismeasuredbythe Sharepriceperformance performance. creation ofshareholdervalueisbasedonshareprice variableelementthatislinkedtothe of thelong-term The part variableelementsubjecttothesebeingmet. of thelong-term measurable/assessable targetsintheseareas,withpayment Boardsets senior staffdevelopment.TheSupervisory of thecompanyaswellCSRaspectssuchsafetyand corporate objectivesareachieved,suchasgrowthandresult long-term andtheextenttowhichcertain price performance variableelementdependsontheBoskalisshare the long-term (three-year)remunerationscheme.Theamountof long-term ina The membersoftheBoardManagementparticipate D –LONG-TERMVARIABLE ELEMENT further tighteneduptoreflect theDutchClawback Act. further in2014thecontractswere clause’). Wherenecessary (‘clawback of incorrectfinancialorother information variable bonusintheeventthese wereawardedonthebasis variableandthelong-term repayment ofboththeshort-term Board alsohastheauthoritytodemand The Supervisory periods. circumstances havearisenduringtheperformance Board hastheauthoritytoadjustpayoutifexceptional inconsistent withsoundbusinesspractice.TheSupervisory such awayasnottoencouragethetakingofrisksthatare variableelementarestructuredin variable andthelong-term thatboththeshort-term Boardascertains The Supervisory Boskalis’ strategicagenda. company. Thecorporate objectivesaredirectlyderivedfrom price andisthereforelinkedtothevaluedevelopmentof the dependentontheBoskalisshare of Managementispartly This meansthatthevariableincomeofmembersBoard Chief ExecutiveOfficer Dr. P.A.M. Berdowski of Management Members oftheBoard SEVERANCE PAY OFTHEMEMBERSBOARDMANAGEMENT LENGTH OFEMPLOYMENTCONTRACTS,TERMSOFFICEAND regard tomaximumseverancepay. of Managementcomplywiththerequirementsset amended, sothatallcontractsofthemembersBoard Executive OfficerandtheChiefFinancialhavebeen In December2017thecurrentcontractsofChief severance payofthemembersBoardManagement. ofofficeand including thelengthofcontracts,terms the contractsofmembersBoardManagement, ofmainelements The tablebelowprovidesanoverview OTHER TERMSANDCONDITIONS ‚ ‚ ‚ Member oftheBoard T.L. Baartmans Chief FinancialOfficer J.H. Kamps ‚ ‚ ‚ Supervisory Board. Supervisory ofthe the explicitpriorapprovalofchairman Positions outsidethecompanymayonlybeacceptedwith executives. No loans,advancesorguaranteesareextendedto car, expenseallowance). by thecompanyisinlinewithmarket(includingphone, employmentconditionsoffered The packageofsecondary pension date Contract 4 years 4 years length until

Term of 4 years 4 years office Severance 1 year 1 year 1 year pay 6 REMUNERATION REPORT 2017 — BOSKALIS REMUNERATION REPORT 2017 — BOSKALIS 7 execution ofBoskalis’ strategicagenda. achievedcontributed towardsthesuccessful performance 2017, 2016and2015,respectively. Assuchthe achievedin granted isappropriatetothe performance Boardtheremuneration In theopinionofSupervisory was paidoutaccordingly. was alsodeemedtobeinexcessofthe‘attarget’leveland variableelementovertheperiod2014-2016 The long-term element in2017. variable in excessofthe‘attarget’levelshort-term variable elementwereexceeded.Thisresultedinapayout Management. During2016thetargetssetforshort-term regard totheremunerationofmembersBoard of with The tableonthenextpageprovidesanoverview 2011. Meeting ofShareholderson21January with theremunerationpolicyaslastadoptedbyGeneral In 2017theremunerationpolicywasappliedinaccordance IN 2017 REMUNERATION POLICY APPLICATION OF practices in relation to internal pay ratios. practices inrelationto internal The Remuneration Committeewillin2018 monitor best pay ratio. the yearunderreview, changes(ifany)totheinternal report In 2018theRemunerationCommittee willincomparisonto payratioisanewdisclosureundertheCode. The internal ratio of22.77. BoskalisB.V.Baggermaatschappij pay leadstoaninternal pension costs)perFTEoftheDutchemployees direct compensationcosts(includingbenefitsandexcluding excluding pensioncosts)dividedbytheaverageoftotal compensation costsoftheCEO(includingbenefitsand calculation methodhasbeenapplied:thetotaldirect payratiothefollowing In theapproachofinternal payratiowithinthecompany.considered theinternal the RemunerationCommitteehasinyearunderreview In connectiontotheapplicationofremunerationpolicy, INTERNAL PAY RATIO OVERVIEW OFTHETOTAL REMUNERATION OFTHEMEMBERSBOARDMANAGEMENT * Includes thegeneralcompensation following theamendmentof thePGBpension schemeregarding thechangefrom unconditional toconditional indexation. Chief FinancialOfficer J.H. Kamps Chief ExecutiveOfficer Dr. P.A.M. Berdowski the yearconcernedxEUR1,000) (Payments madebythecompanyin T.L. Baartmans

2 2016 2 2016 2 2016 2017 2017 2017 Year 015 015 015 remuneration Basic salary Fixed Fixed 793 770 557 573 557 573 574 793 574 remuneration Variable remuneration Short-term 541 546 355 313 355 352 235 352 235 remuneration Long-term Long-term 423 649 423 501 770 501 463 301 301 Pension 320 561 279 195 140 127 205 148 148 * * * allowances Other 30 28 29 28 30 31 28 28 31 2,572 1,658 1,583 1,657 1,570 1,841 1,286 1,289 2,310 2,310 Total 8 REMUNERATION REPORT 2017 — BOSKALIS REMUNERATION REPORT 2017 — BOSKALIS SUPERVISORY BOARD REMUNERATION POLICY 9 with thepolicyasadopted. remuneration policywasappliedinaccordance Shareholders on10May2012.In2017the Board wasadoptedbytheGeneralMeetingof The remunerationpolicyfortheSupervisory REMUNERATION POLICY SUPERVISORY BOARD Member oftheAuditCommittee oftheAuditCommittee Chairman Board Member oftheSupervisory (x EUR1,000) SUPERVISORY BOARD OVERVIEW OFTHEANNUALANDCOMMITTEEALLOWANCES FORTHE Member oftheSelectionandAppointmentCommittee oftheSelectionandAppointment Committee Chairman Member oftheRemunerationCommittee oftheRemunerationCommittee Chairman Chairman of the Supervisory Board oftheSupervisory Chairman extended to members of the Supervisory Board. extended tomembersoftheSupervisory not remuneratedinshares,norareanyloans,advancesorguarantees Boardmembersare expenses allowanceofEUR2,368.Supervisory Boardreceiveanannual In additionmembersoftheSupervisory

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