Dredging Offshore Foundation

AN n u a l r e p o r t I H C H o l l A N D M e r W E D E B V N A n u a t r o p e r l 2006 H C H I l l o M D N A r e W E D E V B 6 0 0 2

IHC HOLLAND MERWEDE

P.O. Box 204 3360 AE Sliedrecht

J.J.C.M. van Dooremalen, Chairman C.J. de Bruin I.A.C. Hoogstad - Boon D.J.M.G. baron van Slingelandt M.L. Wilke

Board of Management

G.L.M. Hamers*, President F. Brouwer* J.C.A. Hulst J.H. Hylkema A.E. Kips A. Klijnsoon A. Korevaar T. Rietdijk A. Roelse

*Managing Director

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Corporate profile 3

Product lines 4

Key figures 5

Report of the Supervisory Board 6

Report of the Board of Management 8

Developments in operating units 16

Dredging 16

Offshore & marine 28

Foundation & support 36

Financial statements

Consolidated profit and loss account 42

Consolidated balance sheet 43

Consolidated cash flow statement 44

Notes to the consolidated financial statements 45

Company profit and loss account 56

Company balance sheet 57

Notes to the company financial statements 58

Other information 61

Auditor’s report 61

Appropriation of profit 62

Business units' addresses 64 I H C H o l l A N D M e r W E D E

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C o r p o r A t e p r o FI l e

IHC Holland Merwede focuses on the ongoing development of its design and construction activities in specialised equipment and shipbuilding, especially dredging and offshore. The company is world market leader in the building of specialist dredging equipment. IHC Holland Merwede is a technological innovator and provides its customers with added value by means of integral service: the construction of specialised equipment along with the development and integration of technological systems and life cycle support. IHC Holland Merwede builds, supplies and maintains equipment in accordance with customer requirements; equipment that

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can be used under the most extreme circumstances. In this way, IHC Holland Merwede contributes to the efficient and profitable business operation of its customers, preferably through close cooperation in partnerships.

1. The IHC Holland facility in Kinderdijk, 10km east of Rotterdam 3. The IHC Holland Merwede Krimpen shipyard in Krimpen aan den IJssel, 2. The Merwede shipyard in Hardinxveld-Giessendam, 30km east of near Rotterdam Rotterdam 4. The IHC Holland shipyard in Sliedrecht, 20km east of Rotterdam I H C H o l l A N D M e r W E D E

p r o D U C T L I n e S

The dredging cluster of IHC Holland Merwede, IHC The cluster distinguishes itself in the various markets by Holland, which consists of the shipyards at Kinderdijk, means of its versatility and flexibility. In the offshore Krimpen aan den IJssel and Sliedrecht (the Netherlands) market, the cluster focuses on large ‘Engineered to and a number of specialised internal suppliers, builds and Order’ specialised offshore construction ships. Besides delivers high-quality equipment for the dredging and the offshore market, the Group is active in the Cruise & alluvial mining industry. IHC Holland combines a high level Ferry, the Marine and the Specials markets. of process knowledge with design strength, innovation and production capacity. In this way, IHC Holland IHC Holland Merwede’s foundation companies design, manufactures high-quality integrated capital goods with manufacture, lease and sell advanced equipment systems added value, which help its customers to optimise their and a wide range of related services for constructing business operations. foundations in soft soil. The support companies support the other members of the IHC Holland Merwede The expertise of IHC Holland has been developed over organisation by providing strategic components and more than 300 years. During this time, IHC Holland has services, as well as supplying similar components and designed and built thousands of ships and equipment for services for other advanced applications in specific customers throughout the world, both stationary and self- markets outside the Group. propelled, trailing suction hopper dredgers and cutter suction dredgers, standard and ‘custom-built’. This requires typically Dutch knowledge and experience, which is continuously updated. As a result, IHC Holland is the world’s leading Company in this field. As a technology Company, IHC Holland facilitates the life cycle of these durable capital goods. In this way, IHC Holland establishes long-lasting partnerships with its customers. IHC Holland therefore has service centres in Kinderdijk, Dubai, Singapore and China. A service centre in Nigeria is being set up.

The Offshore & Marine cluster, consisting of the shipyards at Hardinxveld-Giessendam and Krimpen aan den IJssel, produces specialised ships. Characteristics are short delivery times, efficient system integration, the high level of specialisation and a very competitive total cost of ownership. The Offshore & Marine cluster responds continuously to changes in the market and in the needs of shipping companies. The ships are characterised by their innovative concept and up-to-date engineering, and are usually developed and produced on a one-off and customer-specific basis.

The Offshore & Marine cluster has a reputation where the construction of specialised ships is concerned.

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K E Y F I G u r e S 2002-2006 Amounts in millions of euros, unless stated otherwise

2006 2005 2004 2003 2002

New orders 967.2 519.2 370.5 333.3 319.9

Completed orders 422.3 456.8 460.2 374.6 387.2

Order portfolio as at 31 December 1,030.3 527.4 444.8 534.5 576.0

Net profit 31.2 9.8 4.1 (10.2) 13.5

Cash flow (net profit plus depreciation) less dividend paid 31.3 16.1 11.6 (2.7) 13.2

Group equity 107.4 80.4 71.1 60.9 73.5

Total assets 340.7 228.0 236.3 254.7 295.0

Group equity / Total assets 32% 35% 30% 24% 25%

Group equity / Capital employed 90% 71% 65% 61% 67%

Average number of employees 1,833 1,850 1,884 1,921 1,913

The figures for 2004 and earlier have been consolidated pro forma. I H C H o l l A N D M e r W E D E

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Financial Statements 2006 We hereby present to you the Financial Statements for As a result of favourable developments in the markets the year 2006 drawn up by the Board of Management of where the Company is active, both sales during the IHC Holland Merwede BV. The Financial Statements have financial year and the order book at the end of the been audited by and discussed with our external auditors: financial year were almost double the figures for 2005. KPMG Accountants NV. The unqualified auditor’s opinion The financial results achieved were also extremely on the annual accounts is included on page 61. satisfactory. The Financial Statements were approved at our meeting On the basis of the increased order book and the market on 3 April 2007. The Financial Statements will be outlook, we have agreed to the proposal of the Board of presented for adoption at the Annual General Meeting of Management to hire a fourth slipway. Shareholders that will be held on 5 june 2007.

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The net profit for the 2006 financial year is € 31.2 million. Because of improved market conditions and better The Board of Management of the Company proposes internal process management, the operational results paying a dividend to the shareholders of € 15.6 million show a great improvement in comparison with previous and adding the remainder of the profit, € 15.6 million, to years, and as a result, the net profit has tripled compared the retained earnings. with 2005. The Supervisory Board has agreed to this proposal.

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Supervision years, during 17 of which he was President of the Board The Supervisory Board met seven times during the year of Management. In appreciation of this, Mr. J.J.C.M. van under review, and in its supervisory role, discussed the Dooremalen was awarded a Royal Honour at his farewell following subjects: reception on 16 June 2006. • market developments; • corporate strategy; With effect from 1 March 2006, Mr. G.L.M. Hamers • operational and financial reports; was appointed President of the Board of Management of • the initiation of new activities; IHC Holland Merwede BV by the shareholders. • tenders for prospective orders; • safety, health and environmental issues; Conclusion • risk management; In conclusion, the Supervisory Board expresses its • efficiency improvement projects; appreciation for the efforts made by the Board of • investment proposals. Management and all employees during the past year and for the results achieved. The external auditor was present during the examination of the Financial Statements for 2006. The auditor’s report Sliedrecht, 3 April 2007 was also discussed. The Supervisory Board The meetings between the Works Council and the Board J.J.C.M. van Dooremalen, Chairman of Management were attended by a member of the C.J. de Bruin Supervisory Board. We note that these meetings were I.A.C. Hoogstad - Boon held in a constructive and cooperative manner. D.J.M.G. baron van Slingelandt M.L. Wilke Composition of the Supervisory Board During the General Meeting of Shareholders held on 30 May 2006, Mr. J.D.R.A. Bax and Mr. M.W. Dekker stepped down as members of the Supervisory Board. The Company is very grateful to them for the valuable contribution they have made over a period of many years to the development of the Company and its predecessors. The vacancy of Chairman of the Supervisory Board created by the departure of Mr. J.D.R.A. Bax was filled by the appointment of Mr. J.J.C.M. van Dooremalen with effect from 30 May 2006. The Shareholders and the Works Council approved this appointment.

Composition of the Board of Management Mr. J.J.C.M. van Dooremalen retired as President of the Board of Management with effect from 1 March 2006. We are very grateful to him for his significant contribution to the development of the business over a period of 35

5. Dredged soil can be discharged using a spraying nozzle: this is known as “rainbowing” 6. Impression of the bows of the RIJNBORG I H C H o l l A N D M e r W E D E

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Financial Results The invested capital increased by EUR 5.7 million in 2006. The net profit for the 2006 financial year was € 31.2 This increase can be attributed largely to an increase in million (2005: € 9.8 million). Higher order results on the working capital resulting from the growth in turnover completed contracts and overrecovery of overheads and the value of the production (2006: € 514.5; 2005: made a substantial contribution to the tripling of the net € 438.4). profit. The early repayment of long-term debts and the improved liquidity position mean that the interest result With the early repayment of two subordinated loans at a changed from € 1.5 million paid out in 2005 to € 3.3 total sum of € 20 million, the balance sheet has become million received in 2006. practically free of debt.

The results also incorporate extraordinary income to a The Company equity increased by € 26.3 million in 2006. value of € 3.4 million (2005: zero). A large proportion of The increase is the balance of the net profit over 2006 of this relates to the book profit from the sale of the € 31.2 million less the dividend paid in 2006 of € 4.9 subsidiary Litostroj Ulitki d.o.o. in Slovenia. million.

The total sales in 2006 were € 967 million (2005: € 519 The solvency on 31 December 2006 was 32%; this is a million). Sales in all markets were substantially higher slight decrease compared with 35% on 31 December than in the previous financial year. 2005.

The value of the order book on 31 December 2006 was On 1 March 2005, the Company took out a three-year € 1,030 million (2005: € 527 million). committed credit facility for the sum of € 225 million with The proportion of offshore-related orders at the end of a bank consortium consisting of ABN AMRO Bank, 2006 was about 45% of the total (2005: about 15%). Rabobank and Commerzbank. Due to the growth of the activities and the increase in orders, the amount of the The orders at the end of the year mean that all new credit facility was increased from € 225 million to € 320 building yards of the Group will be working at full capacity million in the course of 2006. At the end of 2006, until mid 2008. On the basis of open tenders and the IHC Holland Merwede fully meets the covenants agreed present market prognoses, a further increase of the order with the banks. book is expected in 2007.

Balance sheet and Financing The summarised balance sheet on the basis of invested capital is presented below:

In x 31 december 31 december difference million 2006 2005 Fixed 33.2 36.7 - 3.5 assets

Working 85.8 76.6 + 9.2 capital

Invested 119.0 113.3 + 5.7 capital

Long-term 3.9 27.5 - 23.6 debts

Provisions 7.7 5.4 + 2.3

Equity 104.7 78.4 +26.3

Minority 2.7 2.0 + 0.7 interests 107.4 80.4 + 27.0

Financing 119.0 113.3 + 5.7

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The cash flow for the financial year is: 2006 of € 4.9 million and the early repayment of the subordinated loans amounting to € 20 million. In x million 2006 2005 Operational 66.8 100.7 International Financial Reporting Standards (IFRS) Investments - 0.6 23.2 With effect from the 2007 financial year, IHC Holland Financing - 25.8 - 6.5 Merwede will prepare its financial reports in accordance Changes in liquid assets 40.4 117.4 with the International Financial Reporting Standards (IFRS). The comparable figures for the 2006 financial year will then also be based on the appropriate IFRS principles. Based on the present estimates, the transition to IFRS will result in a one-off positive adjustment to the equity of the Company.

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Besides the cash flow from the profit and the depreciation, the operational cash flow is controlled to a great extent by the payment conditions agreed with customers and suppliers. Solid working capital management is one of the main targets of the Company.

The investments minus disposals of tangible fixed assets come to € 6.9 million and consist primarily of replacement of and additions to rental equipment. The financing cash flow includes the dividend payment in

7. Cutter suction dredger, type IHC Beaver 1200, at work in Nigeria 8. The rigid-reeled pipe-laying vessel SEVEN OCEANS 10 I H C H o l l A N D M e r W E D E

Market developments largest cities are situated on the coast. All together these Two core markets phenomenae provide a strong boost for the dredging IHC Holland Merwede supplies equipment and services to industry. two core markets: dredging and offshore. The Company Many of the world’s largest cities are situated on the coast. has traditionally a strong position in the market for The latest trend is that land reclamation is also booming for specialised dredging equipment, and is the global market leisure purposes. leader. Last year, it was decided to focus on a second core The recent UN report on climate change supports the market: the offshore construction market. The shipyards of assumption that the need for this type of work will only the Offshore & Marine cluster and a number of successful increase in the near future, as the sea level will go on rising. units in the Foundation & Support cluster focus on this The other three market sectors are: maintenance dredging market: work, the extraction of sand and gravel from the sea and the IHC Hydrohammer, IHC Handling Systems, GN Piping, alluvial mining industry. IHC Lagersmit and Hytop. The core competencies that An upward trend exists in these three markets as well. have made IHC Holland Merwede so successful in the Maintenance work is always necessary, whatever the dredging market are similar to those needed for the economic climate. The extraction of sand and gravel on land offshore construction market. is meeting increasing opposition, particularly for Both markets are ultimately involved in facilitating the basic environmental reasons, so that the seabed is becoming a needs of society: energy, mobility, comfort and safety. more and more attractive alternative. Extracting metals and The customers of IHC Holland Merwede include dredging minerals from the seabed at great depths is an emerging companies, offshore contractors, oil and gas companies industry in which IHC Holland Merwede is participating and governments. successfully. The size of the dredging market over the next few years will Other markets be considerably larger than the capacity of the dredging To ensure a good market spread, IHC Holland Merwede operators. The number of dredging companies will increase continues serving a number of other markets. These are throughout the world, leading to a greater demand for markets that match the specific competencies of the equipment. This growing demand and the utilisation of the Group: cruise & ferry, river cruise vessels, military existing vessels to their full capacity means that the leading auxiliary ships and other specialised one-off ships. Belgian and Dutch dredging contractors will need to make Besides this, the Group is active in the foundation market major investments in renovation, replacement and additions with the units IHC Hydrohammer and IHC Fundex to their fleets. Customers in other countries are also Equipment. extremely active in this field, with the BRIC countries (Brazil, Russia, India and China) at the forefront. Dredging market IHC Holland Merwede is the global market leader in the new Offshore & Marine building of specialised dredging equipment, with a market Investments in the oil and gas markets have picked up share of more than fifty percent. IHC Holland Merwede rapidly in recent years. Oil and gas are increasingly being recognises four distinct sectors in this market, the most extracted from the seabed. With the current price of oil, important of which is land reclamation. The growing world offshore extraction at great depths and/or small gas and oil economy fuels a great need for new ports and infrastructure. fields are now profitable. The ever-increasing production of oil and gas demands new In addition, the offshore extraction of oil and gas makes it infrastructure such as LNG terminals, trenching for pipelines possible to avoid political high-risk areas. Oil companies on the seabed, but also glory holes for the protection of initially open up sources that are easy to reach. Once these drilling wells from icebergs. In addition, a global trend of are being worked, the fields that are more difficult to reach people migration to the coast is evident, 80% of the world’s become viable. The equipment for opening up such

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sources becomes increasingly specialised. This is one of available shipping design and shipbuilding capacity, but the the strengths of IHC Holland Merwede: the completion of Group also includes several product and system suppliers. complex projects geared to the specific situation involved, IHC Holland Parts & Services supplies state-of-the-art within a tight time schedule and the agreed budget and dredging systems. The Foundation & Support units supply with the intended result. This competency fits in perfectly sophisticated products for the dredging, offshore and with the developments in the offshore market. Examples foundation markets. of such equipment include pipe lay vessels, diving support IHC Systems supplies advanced automation systems. vessels, well intervention vessels and support vessels. In addition, IHC Holland Merwede has a number of specialised providers of capacity within the Group in order to Foundation guarantee and further develop the knowledge and continuity The Foundation market is developing favourably. The of the building process. Group is not only active in design, production and sales but It is primarily our knowledge of our customers’ markets and also in rentals of equipment. The Group has a number of our extensive knowledge of the specific functions of the local support centres for this purpose in several continents. equipment and how they are used in day-to-day practice that The prospect of using wind and sunlight as new energy distinguishes IHC Holland Merwede from its competitors. sources is very attractive, partly because public support for The development of ships, systems and applications always the use of alternative energy sources on a large scale is takes place in close cooperation with the customers. growing. For these projects, the foundation equipment of IHC Holland Merwede has a solid track record in supplying the Group is in great demand. The number of orders on our customers with new innovative products on time and land also shows an upward trend, often in connection with within budget. To make this possible, IHC Holland Merwede major infrastructural projects. employs a large and highly-qualified engineering staff.

Strategy More capacity Added value There is a trend towards larger and wider ships both in the The strategy of IHC Holland Merwede is primarily dredging industry and the offshore industry. Partly because directed towards giving our customers greater added the slipway capacity of the three existing IHC Holland value than our competitors. We achieve this by supplying Merwede shipyards was already fully used, but primarily in a better product, with higher productivity and lower order to meet the demand for larger ships, it was decided operational costs. In addition, we provide our customers in 2006 to open a fourth shipyard in Krimpen aan den with the best possible support in using ships and IJssel (the Netherlands): IHC Holland Merwede Krimpen. equipment even after delivery: Full Life Cycle support. Here, ships can be built up to thirty-eight metres wide and two hundred and forty metres long. Technological Innovator IHC Holland Merwede has a global reputation as a builder of Production complex, custom-built vessels and equipment, which often IHC Holland Merwede assembles ships at its own have to function under extreme conditions. shipyards in Kinderdijk, Sliedrecht, Hardinxveld- State-of-the-art technology is used in the vessels and Giessendam and Krimpen aan den IJssel. In this way, equipment in order to maximise our customers’ earning advanced, custom-built ships and products can be built capacity. Continuous Research & Development ensures that with a short time-to-market. It also enables us to deliver this competitive advantage is maintained and expanded. IHC the quality our customers expect. Holland Merwede takes total responsibility for all the For the standard range cutter suction dredgers, systems and technology on its ships and in this way, it is the Beavers, IHC Holland Merwede has a policy of able to supply an optimally functioning, integrated ship. maintaining a reasonable stock so that customer orders For this purpose, IHC Holland Merwede not only has can be supplied quickly. 12 I H C H o l l A N D M e r W E D E

About 70% of the turnover is bought by the Group externally Merwede has an ever-growing network of service or contracted out. A large proportion of the production is locations throughout the world. At present, we have contracted out in the Netherlands or to low-wage service centres in Kinderdijk, Singapore, Dubai and China. countries in Europe, but also to China, where the Group A service centre in Nigeria is also being set up. has its own production location in Guangzhou. Some subsidiary markets are not accessible for products Dredging and offshore clusters built in the Netherlands. In many cases, this is due to IHC Holland Merwede has chosen the dredging and reasons of local politics. IHC Holland Merwede responds offshore markets as its two core markets. The Netherlands to this situation with its ‘local-for-local’ policy. The unit has a strong position in both these markets, a position that IHC Holland Engineering & Renovation creates the design is partly due to the existence of strong clusters of dredging and delivers it, along with a large package of components, and offshore companies. In the long term, a cluster offers to local shipyards who then build the ship. an important competitive advantage to a country or region. In the year under review, we were very successful in China Companies from the entire business column are active in with a standardised 7025 cutter suction dredger design. the dredging and offshore clusters: dredging companies, offshore contractors, banks, insurers, subcontractors, Suppliers market shipyards as well as consultants, schools, universities and During the past year, the market of suppliers and research & development institutions. The clusters can also subcontractors has changed fundamentally. Due to the benefit from political support and a number of subsidies for improving global economy, the demand for a number of core Research & Development. All these activities are located in products and services relevant to our activities has risen a relatively small geographic area and work together sharply, and capacity increases have not been able to keep closely in many fields. IHC Holland Merwede actively up with this. Where overcapacity existed several years ago, supports these two clusters and is involved in many we now find ourselves in a situation of insufficient capacity cooperation projects within these clusters. in the market of suppliers and subcontractors. This has led to price surges, long delivery times and reduced delivery Research & Development reliability. The delivery times for important products such as IHC Holland Merwede aims to maintain and strengthen its engines, propeller shafts and moulded and forged technological leadership. Its intention is to distinguish itself components have increased to such an extent that they no from its competitors by providing its customers with better longer fit in with our normal slipway planning schedule. products in combination with extensive service and To be assured of these components, capacity reservations support. IHC Holland Merwede’s mission is to provide its and even orders must now be made far in advance. customers with products that enable them to improve their work; products with a lower cost-of-ownership, greater Integral services: Full Life Cycle Support productivity and therefore a higher earning potential. The service provided by IHC Holland Merwede covers For this reason, IHC Holland Merwede spends four percent more than just building ships and systems. We supply of its turnover on R&D. This is done to a large extent on a spare parts, training courses and hands-on training, provide project basis. Examples of such innovations are the service and advice for renovation. Our range of services is operational efficiency of the one-man bridge for dredging extensive. Increasingly, owners of ships are considering vessels developed in close cooperation with DEME, the contracting out the (corrective and preventive) Hydrohammer PD12 for offshore pile driving at great maintenance of their ships. With its specific knowledge of depths, the Wild Dragon® draghead with greatly increased the technology on specialised ships of this type, IHC productivity, the flexible spud carriage system, which Holland Merwede is developing into a partner that provides makes dredging possible even in rough seas, and the integral services during the entire life cycle of a ship. environmentally-friendly drilling rig technique used by IHC To provide support for this on a global level, IHC Holland Fundex Equipment.

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Within the offshore sector, attention is being paid to the close contacts with a wide network of knowledge further development of standardised multifunctional organisations. platforms: designs that are suitable for the use of pipe- laying machinery, well intervention equipment, dive The Netherlands has a pre-eminent network of maritime spreads, offshore cranes, specific deck loads, moonpools, research institutions including Delft University of etc., depending on the customer-specific requirements. Technology, Marin, KIM and TNO. IHC Holland Merwede Factors that are taken into account are the necessary is associated closely with this network. The company dynamic positioning qualification with corresponding welcomes the fact that in connection with its innovation redundancy requirements, propulsion systems and other policy, the Dutch government has decided to grant the onboard systems as well as the optimum hull shape for the maritime sector a subsidy consisting of three annual specific application. sums of € 20 million, strongly boosting maritime research and the development of new technologies.

In addition to contacts with the Dutch network, IHC Holland Merwede has many contacts at European level, such as the Waterboard Technology Platform. This platform is responsible for the harmonisation of European and national R&D policy, leading to a coherent set of European R&D programmes. Mr. G.L.M. Hamers, Chairman of the Board of Management of IHC Holland Merwede, is Chairman of this international organisation.

Risk management For many years, IHC Holland Merwede has implemented a policy for evaluating and controlling the risks run by the Company. This requires a good balance between entrepreneurship and the recognition and control of the associated risks. Risk management must therefore be firmly embedded at all levels in the organisation. During the year 2006, an extensive risk analysis project was carried out with the help of professional consultants.

9 As a result a practical risk analysis system was introduced. The purpose is to embed risk management even more firmly as part of the daily business operation IHC Holland Merwede has its own research institute, MTI and to achieve uniformity of risk management processes Holland, which carries out research and offers consultancy and systems within the various business divisions. services on improvements to the dredging process and techniques used in alluvial mining. MTI carries out both Personnel and Organisation general and specific research on behalf of sister companies On 31 December 2006 IHC Holland Merwede employed and third parties, for example in the field of dynamic 1,831 people (2005 1,834 employees). About 280 simulations, material technology, wear predictability and vacancies were filled in 2006, which is an outstanding vibrations. Where possible, MTI focuses predominantly on achievement in view of the current tight labour market in making a positive contribution to the environment and the Netherlands. Over the coming years, it will remain a sustainable forms of dredging and mining. MTI maintains challenge to recruit the highly-qualified personnel needed

9. Cutter suction dredger (DREDGER III) for India going on transport 14 I H C H o l l A N D M e r W E D E

by IHC Holland Merwede. However, IHC Holland Merwede reintegration. This is partly because new legislation has proved to be a popular employer for those with an allocates the responsibility for this to the employer. We interest in technology. Another factor that will affect IHC make increasingly use of preventive measures to control Holland Merwede over the coming years is the exodus of any increase in sickness absenteeism. the ‘baby boom’ generation as they reach retirement age. Periodic Work-Related Health surveys (PAGO “Periodiek Fortunately, the ‘manufacturing industry’ is becoming more Arbeids Gezondheidskundig Onderzoek”) are conducted popular and the Dutch government is stimulating at all the companies and employee health programmes particularly the development of the maritime sector. have been initiated at some locations. We are involved in Young people are realising that the maritime sector in the talks with the Health and Safety Service and the health Netherlands is a high tech industry where technological insurance company on improving the prevention policy developments take place and that the maritime sector with an integral health care management system. takes a leading position in the global market, and therefore offers promising career prospects. IHC has always devoted The average level of absenteeism in 2006 was 4.55%, considerable attention to recruiting talented young people. a slight drop compared with 2005. This is well under the To guarantee an adequate supply of new operational average level for similar industries. personnel for the shipyards and workshops, IHC Holland Merwede has its own Technical Training Centres in Safety Kinderdijk and Hardinxveld-Giessendam. Substantial Accidents accounted for a loss of 0.16% (2005: 0.15%) of investments will be made in these, so that the number of total man hours. Safety is an important issue. The safety of trainees can rise from 40 to 100 per year. our personnel and our subcontractors at our shipyards and In addition, IHC has its own management development workshops, as well as the crews on board the ships built by programme and a Management School. Personnel who IHC Holland Merwede is a major concern to the Group. participate in this programme study a broad curriculum Working environments have potentially high health and covering marketing, finance, production and management safety risks. In spite of the increased workload, the number as well as personal skills. of accidents at the Group’s companies has not increased and the statistics show the same picture as in 2005. This fits Absenteeism in with our philosophy that every accident is one too many. To keep absence due to illness at IHC Holland Merwede BV under control, considerable attention is being paid to Environment prevention and absenteeism counselling at various IHC Holland Merwede attaches great importance to caring management levels. Once every six weeks, consultation for the environment. Personnel information programmes takes place between the Health and Safety Service, the and on-the-job training procedures are used to stress the heads of production and the P&O department in Social necessity of protecting the environment. No environmental Medical Teams. The unit management and P&O hold a incidents worth reporting took place in 2006. regular quarterly meeting with the Health and Safety Service to discuss absenteeism and safety. Absenteeism is always Socially responsible business an agenda item in the fortnightly production meetings. IHC Holland Merwede is innovative at many levels. These The absenteeism procedures are complied with satisfactorily include projects with important social and environmental within IHC Holland Merwede BV. When employees report objectives: decreasing fuel consumption and noise sick, the Health and Safety Service invites them to an pollution, reducing NOx and SOx emissions, forms of interview and reports on this to P&O and the supervisor. If sustainable dredging, environmentally friendly drilling and necessary, action is taken by P&O and the line manager. the creation of a safe working environment for the crew. Innovation and sustainability often go hand in hand. We are being increasingly confronted with the problem of The development and implementation of innovative

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technologies is a way of making our own contribution to qualified employees will be necessary. For this reason, socially responsible business. IHC Holland Merwede will need to present itself on the labour market as an innovative Company with a strong The future international reputation that offers excellent career At the start of 2006, the question of whether the market prospects for young people. Attracting and training a new would swing upwards was still very open. The ample order generation of technical talent is a challenge that the intake in 2006 shows that this recovery has indeed taken Group will tackle with vigour in cooperation with the place. However, the speed at which this has happened and sector as a whole. the extent of the growth during the year was unexpected and higher than ever before. As a result, we worked at full Besides research, development and growth the company capacity during the second half of 2006. will focus on further cooperation between the various This trend seems likely to continue in the coming years. business units. The main targets are sharing of best practices, sharing of knowledge and if applicable, efficiency improvements. Ultimately the results of this closer cooperation have to be beneficial to our clients.

On the basis of the order book at the end of 2006 and the current market prospects, a growth in turnover of about 35% is forecast for 2007. Barring unforeseen circumstances, a further increase in profit is also anticipated for 2007. In view of the importance the Company attaches to research and development, expenditure in this area will remain at least equal to the amount spent in 2006. In connection with the growth of the Company, investments in material fixed assets will increase compared with 2006. These investments will relate to both additions to our assets and replacements. The investments will be financed from the operational cash flow.

Sliedrecht, 3 April 2007

10 Board of Management G.L.M. Hamers, President IHC Holland Merwede anticipates continued growth on all F. Brouwer fronts over the next few years. The strategy of a second core market, concentrating strongly on the development and construction of both systems and ships and offering customers full life cycle support fits in with the developments in the market. It gives ample opportunities for synergy and for differentiation. The Group will strengthen its position in the coming period with appropriate acquisitions. To facilitate the growth aspirations of IHC Holland Merwede, the recruitment of a large number of highly-

10. Ice on the deck of the MARIEKE in St Petersburg (Russia) 16 I H C H o l l A N D M e r W E D E

D E V e l o p M e n t S I N o p e r A T I N G u n I T S

IHC Holland Dredgers Other contractors are also working hard on new plans. The demand for new dredgers is being boosted by a Profile number of factors. The global recovery of the economy IHC Holland Dredgers focuses on specialised shipbuilding means there is a constant need for increasing the for the dredging market. Its commercial territory covers a available harbour capacity. This leads to a large number of wide range of vessels, from trailing suction hopper projects in almost every continent. Secondly, the scarcity dredgers of all types and sizes to self-propelled cutter of fossil fuels and the high oil price make projects in deep suction dredgers. water now economically viable. New terminals and extra These activities will occasionally be supplemented with harbour capacity are necessary for this purpose as well. specialised ships that fit in with in-house experience A third growth factor is the continuous development of (e.g. offshore) or match slipway availability. System the market for luxury water-related recreational projects. integration capability is an important success factor, in Then there is of course the market of maintenance dredging.

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combination with the specialist services and equipment In China in particular, the number of dredging projects suppliers that form part of the IHC Holland Merwede remains high. The shipping capacity needed for this Group of companies. purpose is usually built locally, a development that started a few years ago. Another striking trend that started even Market developments earlier is the orientation on privatisation of state-owned After a slow start in 2005, the market developed dredging companies. favourably in 2006. The major customers in Belgium and the Netherlands are again making substantial investments Deliveries in renovation, replacements and additions to their fleets. Highlights were the completion of the 1,700 TEU DEME and Boskalis each ordered two ships. container vessel RIJNBORG for Wagenborg Shipping BV

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and the 5,400m³ trailer hopper suction dredger MARIEKE Technological developments for DEME, equipped with the innovative one-man In collaboration with other business units within IHC operated sailing and dredging bridge. Holland Merwede, work is being carried out on a trailing hopper dredger research project that focuses particularly New Orders on the further development of the Wild Dragon® The Belgian company DEME ordered two trailing suction draghead, primarily making it more suitable for a wide hopper dredgers, the BRABO and BREYDEL, which will range of less specialised uses. Research is also being be completed in 2007 and 2008 respectively. Boskalis carried out into the use of synthetic materials and Westminster Shipping BV ordered two 5,600m³ trailing different forms of construction in order to optimise the suction hopper dredgers. weight of the ships. The aim is for the ships to weigh less while keeping the same strength and increase the load capacity. This can help to increase the competitive

Under construction strength and operating possibilities for our customers. Beside the new orders mentioned above, the following Examples are plastic sections of components (e.g. pump ships were still under construction at the end of 2006: housing), alternative cellular box keels and sandwich The 5,400m³ trailing suction hopper dredger REYNAERT designs (e.g. for an engine control room). In connection for DEME and the 6,000m³ trailing suction hopper with extending the lifetime, and also improving the dredger TSHD ABUL for Karachi Port Trust in Pakistan, working conditions aboard, research is being done into which has been subcontracted to the sister yard in the reduction of vibrations. Some of this research is Sliedrecht. taking place within active projects, while other studies are being carried out in close cooperation with the research institute of the Group: MTI.

11. Launch of the RIJNBORG, a 1,700 TEU container carrier for Wagenborg 13. The REYNAERT is a sister ship of the MARIEKE Shipping (The Netherlands) 12. Launch of the 5,600m³ trailing suction hopper dredger REYNAERT for DEME (Belgium) 18 I H C H o l l A N D M e r W E D E

IHC Holland Beaver Dredgers IHC Mining provides dredging equipment and services to the alluvial mining industry. Profile Within the dredging cluster, IHC Holland Beaver Dredgers Market developments serves the market for small and medium-sized stationary The market for IHC Holland Beaver Dredgers developed cutter suction dredgers with its series of standard Beaver favourably in 2006. cutter dredgers suitable for a discharge line diameter of Particularly striking was the great demand for the larger 250 to 700mm and with custom-built cutter and wheel Beaver cutter suction dredgers of the type Beaver 6518C, dredgers of all sizes. several of which were delivered during the year under These dredgers are sold throughout the world to dredging review. The number of new customers was again high. contractors and mining companies. Of the twenty one Beavers sold, fourteen went to new All typical and unique dredging components and systems customers. This result can be attributed to increased

installed on board our cutter suction dredgers are sales efforts and a well-functioning network of agents delivered from units of the Group. throughout the world. The fact that IHC Holland Beaver Dredgers can deliver Beaver dredgers from stock is still a IHC Holland Beaver Dredgers keeps a stock of standard unique selling point. cutter suction dredgers in order to supply these on short The large scale of dredging projects all over the world has term notice if required. All dredgers can be dismantled led to a scarcity of heavy cutter suction dredgers. The and transported easily by road, rail or water. IHC Holland prognosis is therefore that several cutter suction dredger Beaver Dredgers also designs and constructs cutter projects will be started in 2007. ladders and spud carriages for large self-propelled, seagoing cutter suction dredgers.

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Deliveries suction dredger for Madagascar-operations. During the year under review, thirteen Beaver dredgers An order was received from Abu Dhabi for a custom-built and three booster stations were delivered. The dredgers, medium-sized cutter suction dredger (4,020kW of various sizes, were ordered by users from countries monopontoon) and a booster. On commission from IHC all over the world, including Russia, India, Indonesia, Holland Dredgers, the trailing suction hopper dredger Sri Lanka, the United Arab Emirates and Nigeria. For the TSHD ABUL is being built on the slipway in Sliedrecht for mining industry, two electrically driven medium-sized Karachi Port Trust in Pakistan. suction dredgers were delivered for mining operations in Mozambique and a standard Beaver 1200 was delivered Technological developments to a Brazilian mining customer. The trailing suction hopper Building ships as efficiently as possible is still one of the dredger MARIEKE was custom-built for DEME. main points for attention. The achievement of the ISO 9001:2000 certificate has already led to considerable

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New Orders improvement in a number of processes. In 2006, much Where the booking of new orders was concerned, 2006 attention was paid to the further development of a flexible was an outstanding year. In total, twenty Beaver dredgers spud carriage system. The intention is to make it possible were sold, in addition to five booster stations. to continue working in heavier sea conditions, leading to Worth mentioning is the sale of a booster and three more operating time for the suction dredger. The Beaver dredgers and a 600kVa wheel dredger to India. recovering market caused a shortage of diesel engines Middle Eastern countries and Nigeria were also well from the regular suppliers. For this reason, other brands represented among our customers. were sought in the course of the year with the same For Mining, orders were booked for a Beaver 600W for performance and quality. Alternatives were found and India, a Beaver 1200 for Brazil and a 3,600kVA cutter these will be used.

14. 5,600m³ trailing suction hopper dredger MARIEKE for DEME, Belgium 16. Cutter suction dredger, type IHC Beaver 6016W in action 15. Cutter suction dredger type 3800 with anchor booms, ALYASAT, 17. Two IHC cutter suction dredgers for the Moma heavy mineral mining “Al Raha Beach”, Dubai project in Mozambique 20 I H C H o l l A N D M e r W E D E

IHC Systems capacity by enlarging their present fleet and upscaling production capacity using barge loading facilities or deep Profile dredging installations, renovation projects and, of course, IHC Systems is market leader in the field of process new construction programmes. Avoiding downtime and monitoring, control and automation for dredgers, including providing the crew with wear-and-tear forecasts based on the integration of dredging tasks with nautical as well as models increases the availability of the dredger. Crews are hydrographic tasks on board vessels. Dredging is a becoming scarce; more and more dredging contractors are capital-intensive activity: specifications for dredging recruiting crews in Eastern Europe and the Far East. All this works are becoming increasingly demanding. Large provides new challenges for contractors: differences in dredging contractors are consequently employing culture, language and skills. Newly-appointed crews advanced instrumentation and automation systems on undergo a thorough in-house training with advanced board their vessels. This considerably improves the training simulators.

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efficiency of the dredging process, with achievable Deliveries production improvements of between 15 and 25%. An Integrated Hopper Control System for the trailing The accuracy of dredging has also substantially improved, suction hopper dredger MARIEKE which was built at our thereby enabling the stringent specification requirements shipyard in Sliedrecht for DEME in Belgium. The in dredging contracts to be fulfilled. MARIEKE is the very first trailing suction hopper dredger in her class to be equipped with an integrated dredging- Market developments navigation control console. A cutter suction dredger Efficient Dredging is the guiding principle governing market training simulator, including an artificial outside and and technological developments. Dredging capacity is underwater view, was delivered to Jan De Nul in Belgium. becoming scarce; contractors are seeking additional The trailing suction hopper dredger HANSAKAWA,

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operated by the Sri Lanka Port Authorities, received an underwater presentations, displaying the cutter in the instrumentation and presentation upgrade, thereby soil. Karachi Port Thrust has ordered a production enabling on-shore presentation of vessels’ performance. measurement system for its trailing suction hopper An Integrated Monitoring and Control System has been dredger fleet. For its cutter suction dredger delivered for the medium-sized cutter suction dredger VLAANDEREN XIX, DEME has ordered a Control System KAERIUS, built in China for Jan De Nul in Belgium. update featuring the latest developments in pumping sand through various boosters onshore. New orders For its trailing suction hopper dredger ANTIGOON, Under construction delivered in 1989, DEME has ordered a new automation Integrated Hopper Control Systems for trailing suction control system featuring the very latest developments in hopper dredgers REYNAERT, BRABO and BREYDEL Efficient Dredging. Dutch contractor Van Oord has under construction at our shipyard in Kinderdijk for DEME; Integrated Monitoring and Control System for the medium-sized cutter suction dredger HONDIUS, built in China for Jan De Nul; Instrumentation and dredging presentation systems for trailing suction hopper dredger TSHD ABUL and a survey vessel, both under construction at our yard in Sliedrecht for Karachi Port Trust in Pakistan.

Technological developments In close cooperation with the maritime cluster in the Netherlands, the next step was achieved in a joint research project: operating vessels with Artificial Intelligence. A pump controller for pumping soil ashore over large distances with several booster stations was designed using a dose-control-algorithm. Overflow losses are a constant source of concern to every dredging contractor; they result in loss of production and disturb the balance of nature in environmentally-sensitive areas. Artificial Intelligence delivers a highly-effective overflow loss indication. The first trailing suction hopper dredger

21 has been equipped with this latest development concerning Artificial Intelligence. Finally, the simulator product has proved itself to be a ordered its third eXcavator Position Monitor system for its powerful tool in training IHC’s dedicated workforce, as Backhoe HIPPOPOTES; CFE has ordered several Dredge learning by experience is very costly. Track Presentation Systems for its construction works in Ras Laffan Qatar. Huta-Sete Marine Works in Saudi- Arabia has ordered an instrumentation, control and presentation upgrade for both its cutter suction dredgers HUTA 1 and 2. The cutter suction dredger training simulator Constance Bonacieux, operated by French contractor Société de Dragage International, a subsidiary of DEME, has received an upgraded outside view with

18. One-man operated bridge, the first-ever integrated dredging-/navigation boosters. control console. 20. Dredge Track Presentation System on board the TSHD ANTIGOON sailing 19. VlAANDEREN XIX with an updated Automatic Cutter Controller featuring for the Belgium coast. the latest developments on pumping mixture to shore through various 21. Cutter dredge training simulator at Jan De Nul’s office in Aalst (Belgium) 22 I H C H o l l A N D M e r W E D E

IHC Holland Parts & Services contacts with suppliers, IHC Parts & Services sells many products to local dredging companies, but it also has Profile locally built products that are then used in Kinderdijk for Besides creating a global service network for our worldwide sales. customers, the task of IHC Holland Parts & Services The service with respect to maintenance covers not only (IHC Parts & Services) in the dredging cluster is to deliver corrective maintenance and overhauling special specific dredge equipment and components, both for installations during dock servicing periods, but also more new dredgers and after sales, repeat orders and and more preventive maintenance: analysing, monitoring deliveries for existing dredge equipment. and predicting wear. Maintenance contracting is on the rise. Since logistic service is also part of the package offered by IHC Parts & Services, it is only a small step to full life cycle support.

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Market developments Deliveries In the year 2006, considerable attention was paid to the The type of orders was not much different to those in continued expansion of our services. This was not only previous years, but the increase in volume was striking. achieved by further growth of the service centers in As a result of the positive developments in the market, China, Singapore and Dubai and the preparations for a deliveries for the purposes of new construction and service center in Nigeria, but also and primarily by replacement have risen substantially. In order to deliver expanding the range of services offered. In addition to punctually, stocks were tripled in the course of the year. first-line service, this now includes global sourcing: The supply chain principle is becoming more and more organising the local production of components, right prominent: IHC Parts & Services aims to achieve efficient where the customer needs them. Thanks to its good and cost-conscious supply chain management in close

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collaboration with its suppliers and customers. world, to design and build special (mechanical) dredge equipment, carry out basic engineering and design New Orders studies of dredge equipment and finally to carry out Sales doubled in the year 2006. The market is expanding, renovation work. and the degree of capacity utilisation of dredging fleet is high. As a result, the intake of new orders also grew Market developments substantially. These were primarily orders that will be The expansion of IHC Engineering & Renovation completed in 2007 and 2008. Besides new construction continued unabated during the year under review, not just and replacement, many ship owners are working on from a quantitative but also from a qualitative point of renovating and upgrading their dredgers. This also brings view. IHC Engineering & Renovation was called in more an increased demand for modern, more efficient and more often for naval architecture and consultancy and components and systems. In the area of deep sea mining, in the implementation process for renovations.

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a need for even deeper dredging is emerging. Also worth mentioning is the demand in the market for IHC Parts & Services is responding successfully to this special (auxiliary) dredging equipment, such as split development. barges and backhoes, to which we have responded by offering engineering packages. IHC Holland Engineering & Renovation New orders Profile Turnover rose substantially in the year under review. The The task of IHC Holland Engineering & Renovation (IHC sales include a large number of suction dredgers of the Engineering & Renovation) is to build dredge equipment type IHC 7025 MP for construction and delivery in China. at non-IHC Holland Merwede yards anywhere in the For each dredger, a substantial proportion (up to 60%) is

22. Contribution to a major project comprising 72 Jack-up leg fixation systems 25. Renovation of the trailing suction hopper dredgers DCI Dredge XII 23. Pump room of the trailing suction hopper dredger MARIEKE and XIV (India): design, production and delivery of the 28 conical 24. Engineering, cutter suction dredger BEIYA 1 HAO, delivered in bottom valves cooperation with a Chinese shipyard 24 I H C H o l l A N D M e r W E D E

supplied, partly produced at our own production facility in MTI Holland / TID Guangzhou (China). Many contractors are contracting out more and more Profile work because of their full schedules. In the field of MTI Holland, the R&D and Training Institute of IHC Holland renovation, orders have been booked for the renovation of Merwede, is one of the world’s leading institutes for the DCI fleet in India, some of these in collaboration with research and consultancy on dredging processes, dredging local shipyards. methods and equipment. The scope of activities for IHC It is striking that equipment is frequently renovated in Holland Merwede and for third parties includes dredging combination with redesign. The growing number of consultancy and advisory services, research and orders from Dutch and Belgian dredging companies development for the dredging and wet mining industry, indicates that IHC Engineering & Renovation has acquired modelling and (dynamic) simulation of dredging processes, a solid position here. conceptual design studies and measuring services.

Deliveries Two dredgers of the type IHC 7025 MP were successfully The Training Institute for Dredging (TID) provides high- delivered in China. The scope of supply includes the quality training programmes for employees of dredging delivery of the engineering and hardware packages and contractors, port authorities, the mining and aggregates technical assistance for the cutter suction dredgers for industry and other parties involved in the dredging Qing Dao and Xin He. industry.

Market developments The year under review was a good one for all sections of MTI. This applies not just in the field of research and

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development, but also to the measurement service and and improvement of the hydraulic pump design. The TID. Sales to the external market has developed in facilities in the MTI test laboratory were substantially accordance with expectations. expanded and improved for this purpose. This made it possible to carry out a study of the behaviour of gas The number of personnel increased considerably in development in piping systems. Eventually, this will lead 2006, which led to a doubling of the R&D capacity. to improved degasification technology. Progress was also This expansion is necessary in order to satisfy the heavy made in a long-term doctoral research project by a internal demand for MTI activities. Over the coming member of the MTI staff, in which the behaviour of the years, MTI intends to acquire a better position in a mixture in a pump impeller can be followed with a high- number of fundamental and specific fields of knowledge, speed camera. in order to be even better prepared to provide support for This research provides more understanding of the companies of the Group. A start has already been made dynamic behaviour of centrifugal pumps. Tests were

in the field of dynamic simulations, vibration issues, carried out and completed successfully with a material technology, predictability of dredging processes, hydraulically driven submersible pump. This pump design the environment and sustainability. MTI will also operate was successfully introduced in the market by IHC Holland more pro-actively in the external market, both by Parts & Services. The first steps in the development of searching for new contacts and by intensifying the the cutter special pump® were also taken. This pump is relationships with existing sources of knowledge. specially designed for use in situations where a large ball passage is desired in addition to a high pump efficiency. MTI research projects In addition to pump-related research, considerable In 2006, a large number of studies and research projects attention was also paid to the development and were carried out into pump behaviour, dynamic forces improvement of dredging components and systems.

26. Pump casing model produced by a 3-D rapid prototyping machine 27 MTI slurry test facilities for pump scale tests and gas-bulb behaviour 26 I H C H o l l A N D M e r W E D E

A research project was set up together with IHC Parts & and temporary hiring was much higher than budgeted. In Services and an external customer for the further the second half of the year, the supply of rolled material development of the Wild Dragon ® draghead. This was problematical. This was caused by problems both at research is intended to generate more understanding of the steel producers and in the logistic process following mixture formation and the play of forces in the draghead. on from the production. The forecast is that the market Progress was also made in the field of dynamic will remain at least as strained as it now is for the coming simulations for items such as pump drivers and suction years. pipes for dredging at great depths. MTI received various orders from third parties, primarily consultancy studies for mining applications.

TID

Besides equipment courses and general courses on dredging there was a strong demand of operational training for crews of hopper and cutter dredgers. These training activities were organised for clients from all over the world, on board dredgers, and in the Netherlands, with the use of TID’s own cutter training simulator.

TID focuses on the development of new training possibilities in amongst others China, Nigeria and Ghana. This concens long-term training activities that will lead to further reinforcement of the basis of the TID organisation.

Much attention is also paid to the further professionalisation of the organisation so that TID is even better able to satisfy the demand from the market.

Metalix

Metalix serves a range of markets and segments with 28 prefabricated building kits in steel, stainless steel and aluminium. The work preparation services consist of modeling (ship) forms, the calculation of shell plates and matching templates, CAD engineering, the specification and optimisation of required materials, and the supply of production information. The year 2006 was characterised by a sharp rise in demand from within the IHC Holland Merwede companies, caused by the large number of orders received. Sales to third parties were also higher than anticipated. In total, 2.5 times more steel was processed than was forecast in 2005. This made heavy demands on our capacity. The flexibility in subcontracting

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28. TID cutter simulator for operational training 29. Building package IR 3500 Ice Runner, Shipyard Peters, Korcula Metalix supplied to Croatia: the complete steel construction building package of the “Harns”, as well as for 6 sister vessels 28 I H C H o l l A N D M e r W E D E

Merwede Shipyard Market developments In 2006, the offshore market showed an explosive Profile increase in demand, which was caused by several Merwede Shipyard is an ISO 9001:2000-certified, factors. During the past twenty years, there has been internationally-recognised builder of customised, high- little or no investment in new ships in the offshore quality, mainly deep-sea tonnage. The shipyard’s market. Driven by the high oil price, oil companies can business policy is to respond to the needs of ship owners now initiate projects that were not profitable in the past. who require vessels based on innovative concepts and The political instability of countries where oil is extracted modern engineering, built individually to order or in a on land also gives a boost to the extraction of oil offshore. limited series, in the following market areas: As the oilfields in shallow water become exhausted, • Offshore vessels oilfields at greater and greater depths must be put into • Cruise vessels and ferries operation, further and further from the inhabited world.

• Naval vessels This leads to a need for larger ships, ships that are • Specials equipped with complex technology for working in deep Merwede Shipyard’s distinguished track record and water. reputation for producing numerous highly-distinctive The growing demand for new ships exists at all levels. designs confirms the yard’s versatility. Ro-Ro vessels, For the development of new oilfields, pipe layers are passenger-cum-cargo ships, oceanographic research necessary but also all sorts of other working ships for vessels, ferries, chemical products tankers, work ships activities such as seismic research, construction, Remote for offshore operations, deep-sea tugs and suppliers, Operated Vehicle (ROV) support and diving support. heavy-load transport vessels and dredgers are just a few In the market for ferries and cruise ships, the increased examples of the commercial vessels Merwede builds. prices led to some hesitation in new investments.

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The naval projects that are in the pipeline are less • Two landing craft medium (LCM) for New sensitive to the economic situation however these are Zealand’s MOD more long term projects. During the engineering phase of the MRV, Merwede Shipyard was awarded the contract for two LCMs. Deliveries The LCMs are carried on board the MRV and their • One multi-role vessel for Tenix Defence/ main task is the transfer of personnel, vehicles, cargo New Zealand’s MOD and equipment between the MRV and the shore. The Multi-Role Vessel (MRV) is capable of undertaking a number of roles including amphibious operations, helicopter operations, surface patrol and at-sea training. The vessel provides the New Zealand Defence Force with a tactical sealift capacity to enable the

transfer of personnel, equipment and stores into a theatre of operations and thence from the ship to the shore. Given the limited port facilities in the Pacific and parts of Asia, the tactical sealift requirement also includes transfer in the event that port facilities are not available. The vessel is capable of carrying 400 lane metres of RoRo material and troops and personnel numbering up to 359 persons. The helicopter facilities include 2 landing sites, 1 hangar and 4 storage sites for large naval helicopters as well as transport helicopters.

30. Merwede Shipyard in Hardinxveld-Giessendam, 30 km east of 31. The Multi-Role Vessel for Tenix defence / New Zealand MOD during Rotterdam, with the rigid-reeled pipe-laying vessel for Subsea 7 seatrials alongside the outfitting quay 30 I H C H o l l A N D M e r W E D E

• One inland cruise vessel for Phoenix Reisen • One flexible pipe-laying/offshore construction The unrivalled high level of comfort on board this vessel for Subsea 7 inland cruise vessel has been achieved by means of The fully dynamically-positioned flexible pipe-laying / low noise levels and an extremely luxurious interior offshore-construction vessel has been specifically outfitting. The vessel has an extensive sailing area, designed for laying flexible pipes in deep water. The stretching from Amsterdam to the Black Sea, and vessel is equipped with 2 ROVs, a large 400 metric ton thanks to its shallow draught and low air draught, the deep water crane, and two other large offshore deck vessel is able to maintain its sailing schedule even cranes. during extreme water levels.

Under construction • One diving support/offshore-construction vessel • One rigid reeled pipe-laying/offshore for Toisa Limited construction vessel for Subsea 7 As an enhanced sister vessel to the Toisa Proteus, but The fully dynamically-positioned rigid reeled pipe- with a fully-incorporated saturation diving system, this laying / offshore-construction vessel has been dynamically-positioned vessel (DP3) can support a specifically designed for laying rigid pipes in deep wide variety of sub-sea operations. The vessel will be water. The vessel is equipped with 2 Remote Operated built with an 18-man twin-bell saturation diving system Vehicles (ROVs), a large 400 metric ton deep water and will have a maximum operating depth of 300 crane, and two large offshore deck cranes. metres. Offshore construction operations are supported by a large 400 metric ton offshore crane.

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• One diving support/offshore-construction vessel Technological developments for Subsea 7 The development of technology at Merwede Shipyard The fully dynamically-positioned (DP3) diving support / takes place primarily on a project-related basis. During the offshore-construction vessel has been designed for year under review, a major step was taken towards a new saturation and air diving support operations. The generation of diving support vessels, which perform better integrated twin-bell saturation diving system will be both in relation to capacity and to safety and redundancy. accommodated in the midship of the vessel and will be With these ships, diving operations can take place at a suitable for 8 diving teams with a total capacity for 24 greater range of depths and at greater depth. They can divers. The diving system will be designed for accommodate a larger number of divers. The ships are also operations up to a water depth of 350 metres. fitted with three instead of two engine rooms, which In addition, the vessel will be prepared for a 3000-ton increases their operational reliability. Investments have also carousel and fitted out with two fully-integrated been made in developing a hull form to minimise the

observation ROVs, one modular work class ROV and a dynamic forces that arise on the pipe-laying installation as 12-metre-long air diving daughter craft. Operations will a result of the dynamic behaviour of the ship. Finally, a new be served by a 150-ton heave-compensated offshore design for an inland waterways cruise ship has been made. crane and two 10-ton auxiliary deck cranes. This complies with new regulations and satisfies the customer wish for maximisation of the number of passengers in a luxury, low-noise environment with a low air draught, in combination with a shallow draught.

32. Seven Oceans during installation of the pipelay equipment and cranes 34. The inland cruise vessel Aurelia for Phoenix Reisen 33. One of the LCMs to be carried on board the MRV 32 I H C H o l l A N D M e r W E D E

Merwede Interior Merwede Interior is a specialist builder of high-quality, customised interiors for both the marine and the civil construction industry. Product quality is assured by maintaining a certified quality management system.

Merwede Repair Merwede Repair is a shipyard that specialises in maintenance, repair and conversion work on short-sea vessels, offshore work ships, dredgers, tugs and all kinds of inland transport craft, including inland cruise vessels.

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Merwede Design Merwede Design is a marine and mechanical design office consisting of a well-qualified team of specialists who are highly experienced in shipbuilding, ship repairs and mechanical engineering design works.

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35a. The restaurant of the inland cruise vessel VIKING HELVETIA 36. After a hesitant start, the market firmed up and Merwede Repair had 35b. The atrium and reception area of the VIKING HELVETIA plenty to do throughout the year, with positive results 35c. The reception area with alfresco paintings of the inland cruise vessel SOUND OF MUSIC 34 I H C H o l l A N D M e r W E D E

IHC Holland Merwede Krimpen 2006, and work started on the first order in October. Besides offshore vessels, this shipyard is also suitable for Profile the construction of dredging equipment. The opening of a fourth slipway in Krimpen aan den IJssel was a logical step after the strategic decision by IHC Market developments Holland Merwede to define offshore as a second core The favourable development of the oil market is boosting activity. The yard was named IHC Holland Merwede the demand for new vessels. This brings to an end a long Krimpen and its premises are at the location of the former period in which practically no investments were made in company Van der Giessen-de Noord. The explicit added new offshore vessels. Not only is there a trend in the value of this shipyard is that vessels wider than thirty-one market towards larger and larger vessels, because they metres can be built there. The width of the slipway is are more frequently being used for oil extraction in deep forty metres and the maximum width of the vessels, that waters, but the requirements for technological facilities

can be built on this slipway is thirty-eight metres. The on board these vessels are much more demanding. This opening of this extra slipway makes it also possible to is clearly reflected by the first two vessels that will be accommodate overflow in capacity from the other IHC built at the shipyard of IHC Holland Merwede Krimpen Holland Merwede yards. IHC Holland Merwede Krimpen over the coming years. is independently responsible for its results. For sales purposes, it cooperates closely with the sales organisation of Merwede Shipyard. Parts of the primary process, such as procurement and engineering, are carried out by Merwede Shipyard. The first steps towards setting up the organisation started in the third quarter of

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New Orders and diving support vessel is specifically designed for Two orders were received in the course of 2006: well-servicing operations such as live well intervention, • One multi-purpose / offshore support vessel for slick line, electric line and coiled tubing. The integrated Superior Offshore International Limited twin-bell saturation diving system will be positioned The vessel will be a fully dynamically-positioned diving crosswise and will have a capacity for 18 divers. The support / ROV support / deep water construction diving system will have a maximum operating depth of vessel, suitable for worldwide operations. 300 metres and is executed with two self-propelled A modular single-bell saturation diving system with hyperbaric lifeboats. Furthermore, two deck-mounted hyperbaric rescue chamber will be installed. The diving A-frame launched ROVs will be installed, as well as a system will have a capacity for 12 divers and a 100-ton offshore crane. maximum operating depth of 300 metres. The vessel will have sufficient capacity to support a

second 12-man saturation diving system. Prognosis for the future A fully-integrated double Trition XL ROV system will be The prognosis is that the demand for new large vessels housed in a hangar. Furthermore, several offshore will continue in the coming years, both in the offshore cranes will be provided (up to a maximum hoisting and in the dredging market. IHC Holland Merwede capacity of 160 tons), as well as a 300-ton heave- Krimpen expects to be able to take advantage of this compensated A&R. This vessel can support a wide development together with its sister companies. variety of sub-sea operations worldwide. • One well intervention / diving support vessel for Helix Energy Solutions This fully dynamically-positioned DP3 well intervention

37. Multi-purpose / offshore vessel for Superior Offshore International Limited 38. Well intervention / diving support vessel for Helix Energy Solutions 36 I H C H o l l A N D M e r W E D E

F o u n DA T I o n & S u p p o r t

Foundation Companies IHC Handling Systems were able to capitalise on this. There was also substantial growth in the activities for the Profile removal of existing jackets and pipelines. This market is The foundation companies design, manufacture, lease expected to continue growing over the coming years. and sell advanced equipment and systems for the The overheated market also causes various problems. construction of foundations in soft soil and support their Increasingly, suppliers form the bottleneck for the customers with a wide range of services. The foundation production of equipment. Demand is exceeding supply, companies work together closely in their market particularly for large forged items, steel castings and approach, product development and order execution. hydraulic components. This leads to longer delivery There is also close collaboration with other business units times. within the Group. In order to serve customers as quickly as possible, IHC Foundation & Support has support

centres on several continents with equipment, spare IHC Hydrohammer parts and service capacity. IHC Hydrohammer is a leading supplier of sophisticated pile Market developments drivers and pile-driving systems. Important markets are the The foundation companies can look back on a successful offshore oil & gas markets, major civil engineering projects year. The turnover of each company was higher than ever and onshore construction. The high demand for energy and before. They were able to take advantage of the rapid consequently the high oil price led to an enormous demand growth of the oil & gas market and the onshore for pile drivers, particularly for the conductor installation construction market. The growth of the market in South market. IHC Hydrohammer is absolute market leader in this East Asia was particularly striking. IHC Hydrohammer and market segment. The market for the installation of offshore

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structures also developed well. IHC Hydrohammer won accepted in the European market, and for the first time many rental contracts and sales for pile drivers and these new rigs had the largest share in the turnover accessories for constructing the foundations of new oil achieved in 2006. Research is currently being carried out platforms, including a S-1200 Hydrohammer for an offshore into how the full displacement drilling process can also be contractor. A S-1200 Hydrohammer from the rental fleet made more competitive from an economic point of view. was used in the construction of the first Dutch offshore A new type of power pack was developed and introduced wind turbine farm near Egmond aan Zee (the Netherlands). in 2006. A start was also made on the development of In the field of R&D, an important breakthrough was the the Fundex F2200 to extend the range of new drilling rigs. development of the PD-12 Pyrodriver, which can work up Furthermore a new ‘high-frequency vibrator’ for to water depths of 2,500 metres. A successful onshore installation and extraction of casings was developed. test was held in 2006, and the first offshore trials of the The vibrator is suitable for piling projects in weak soils PD-12 will take place in 2007. and with noise limitations.

40 41

IHC Fundex Equipment IHC Handling Systems

IHC Fundex Equipment is solely active on land. The problem-solving capability for specific customer IHC Fundex sells machines that can be used for several requirements in the field of the handling of components sophisticated foundation methods. One of the well offshore is one of the main characteristics of IHC known methods is a cast in situ, soil displacement drilled Handling Systems, which for this reason focuses strongly pile which is extremely suitable for building projects with on innovation and the development of custom made noise and vibration limitations and other environmental equipment. In the year under review, “buoyancy clamps” requirements. After an introductory period of several were developed for Aker Kvaerner, which are used during years, the new Fundex drilling rigs are now widely the innovative removal of jackets in floating condition.

39. Hydrohammer S-1200 was used at Egmond aan Zee wind farm, 41. 4 ILT’s of 1,750 tons each used for Jacket removal the Netherlands 40. Fundex® F3500 on a job site in St. Petersburg, Russia 38 I H C H o l l A N D M e r W E D E

For a project in the Gulf of Mexico, “anti-running clamps” Support Companies were developed, which make an important contribution to the progress of the pile-driving process in areas with poor The support companies provide support to the other soil conditions. IHC Handling Systems worked closely on IHC Holland Merwede companies by supplying strategic the development of a 500 tonne lifting tool for monopiles, components and services, as well as similar components for the Q7 Wind Farm project of Mammoet Van Oord. and services. These are also supplied for other advanced In order to respond as quickly as possible to the growing applications in specific markets. demand, particularly in South East Asia, IHC Handling Systems produces standard equipment such as Internal Hytop Lifting Tools (ILTs) for stock. Other highlights from the long list of orders were the delivery of a fourth tunnel Hytop is brand-independent and specialises in top-quality boring machine (TBM) for the North-South line in complete hydraulic systems for the dredging and offshore

42 43

Amsterdam and ILTs for the Kikeh deep water project in markets. In the dredging market, Hytop is market leader Malaysia for handling 84 inch anchor piles in a water as supplier of customised hydraulic systems for new depth of 1,850 metres. dredgers built by sister companies and third parties. For example, Hytop sold winches and hydraulic cylinders for the largest ever trailing suction hopper dredger, to be built for Jan De Nul in Spain. Hytop improved its position as offshore supplier. This is demonstrated by orders such as the hydraulic system for a disconnectable turret for Bluewater, hawser storage reel and mooring system for Thome and a Stinger handling System for Helix Energy

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Solutions. In the field of product development, important GN Piping steps forward were made in the winches product group, particularly in relation to product design, facilities and the GN Piping is a leading company active in the computer crew. With 24/7 service worldwide, Hytop keeps its aided manufacturing (CAM) and installation of piping customers’ machinery operational. systems for the dredging, offshore and maritime market. GN Piping was able to benefit successfully from the IHC Lagersmit enormous upturn in the market and the scarcity of piping capacity. A great deal of work was carried out not just for IHC Lagersmit has a reputation as a seal specialist the sister units within IHC Holland Merwede, but also for capable of carrying out complex orders. IHC Lagersmit third parties. supplies SUPREME stern tube seals and Liquidyne pump shaft seals. For the SUPREME seals, support products

such as white metal bearings and stern tubes are also supplied. IHC Lagersmit delivers directly to shipyards and shipowners but the focus is increasingly shifting to the role of supplier to the leading global propulsion manufacturers. IHC Lagersmit also develops sealing solutions for special applications. In 2006, for example, these included an 11-lip SUPREME used to seal the 20 bar water supply for a low-speed hollow cutter shaft and a SUPREME seal for the largest mechanical thruster in the world.

42. Hytop: Mooring installation winch 360 tons for FPSO “KIKEH” for SBM 44. Piping in engine room of pipe-laying vessel SEVEN OCEANS for Offshore, The Netherlands SubSea7 43. Testfacility for an 11 lips SUPREME 40 I H C H o l l A N D M e r W E D E

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F i n a n cia l S t a t e m e n t s 2 0 0 6

45. Trailing suction hopper dredger HAM 318, “Palm island” in Dubai. 46. “Palm Jumeirah”, Dubai. 42 FI N A N CIA L S T A t e M e n t S 2 0 0 6

C o n S o l IDA t e D p r o FI T A N D l o S S A C C o u n t In thousands of euros

Notes 2006 2005

Net turnover 1 422,300 456,835 Changes in inventories and work in progress 101,732 ( 20,145 ) Other operating income 1,769 1,647

OPERATING INCOME 525,801 438,337

External costs 2 ( 387,897 ) ( 326,935 ) Wages and salaries 3 ( 74,184 ) ( 70,121 ) Social security charges 4 ( 16,164 ) ( 14,194 ) Depreciation of tangible fixed assets ( 4,907 ) ( 6,320 ) Other operating expenses ( 4,533 ) ( 5,516 )

OPERATING EXPENSES ( 487,685 ) ( 423,086 )

OPERATING RESULT 38,116 15,251

Income from associated companies 5 3,297 ,255 Other financial income / (expenses) 6 3,322 ( 1,510 )

FINANCIAL INCOME / (EXPENSES) 6,619 ( 1,255 )

PROFIT BEFORE TAX 44,735 13,996

Taxes 7 ( 11,948 ) ( 3,024 )

32,787 10,972 Minority Interests ( 1,544 ) ( 1,190 )

NET PROFIT 31,243 9,782

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C o n S o l IDA t e D B A L A N C E S H e e t In thousands of euros, before appropriation of result

Notes 31 December 2006 31 December 2005

FIXED ASSETS

Tangible fixed assets 8 29,485 33,327 Financial fixed assets 9 3,718 3,351

33,203 36,678

CURRENT ASSETS

Inventories 10 91,200 44,462 Receivables 11 60,472 31,506 Cash at bank and in hand 12 155,811 115,372 307,483 191,340

CURRENT LIABILITIES 13 ( 221,658 ) ( 114,708 )

Result of current assets less current liabilities 85,825 76,632

Result of assets less current liabilities 119,028 113,310

LONG-TERM DEBT 14 3,942 27,471

PROVISIONS 15 7,677 5,407

GROUP EQUITY Shareholders’ equity 16 104,735 78,403 Minority interests 2,674 2,029 107,409 80,432

119,028 113,310

44 FI N A N CIA L S T A t e M e n t S 2 0 0 6

C o n S o l IDA t e D C A S H F l o W S T A t e M e n t In thousands of euros

2006 2005 OPERATING ACTIVITIES

Net profit 31,243 9,782 Minority interests 1,544 1,190 Depreciation 4,907 6,320 Gain on sale of subsidiary (2,834) - Subtotal 34,860 17,292

Changes in provisions 2,270 ( 1,264 ) Changes in working capital (excluding cash at bank and in hand) - Inventories ( 47,950 ) 70,745 - Receivables ( 34,021 ) 5,391 - Current liabilities 111,612 8,543

CASH FLOW FROM OPERATING ACTIVITIES 66,771 100,707

INVESTMENTS

Investments in tangible fixed assets ( 9,990 ) ( 5,924 ) Divestments and other movements in tangible fixed assets 3,084 27,915 Divestment of subsidiary 6,729 - Divestments and repayments financial fixed assets ( 377 ) 1,199

CASH FLOW FROM INVESTMENT ACTIVITIES ( 554 ) 23,190

FINANCING

Additions to long-term debt 32 21,749 Reductions in long-term debt ( 20,000 ) ( 27,241 ) Dividends paid ( 4,891 ) - Changes in minority interests ( 899 ) ( 1,072 ) Currency differences ( 20 ) 26

CASH FLOW FROM FINANCING ACTIVITIES ( 25,778 ) ( 6,538 )

Increase/(decrease) in liquid resources 40,439 117,359

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n o t e S t o T H E C o n S o l IDA t e D F I N A N CIA L S T A t e M e n t S

General Principles of consolidation As at 31 December 2006, the company is a 100% The consolidated financial statements include the subsidiary of IHC BV, the investment company of the financial data of IHC Holland Merwede BV and all the three shareholders: Rabo Capital BV, part of Rabobank companies with which IHC Holland Merwede BV forms Group, Stichting Administratiekantoor Management en an organisational and economic entity. Consolidation Personeel IHC, representing the management and staff of takes place on the basis of standard principles using the the company and Parkland NV, which is part of the Indofin full consolidation method, in which mutual assets and group. liabilities, income and expenses as well as the group’s unrealised profits in assets as at the balance sheet date The financial statements are prepared on the basis of are eliminated. The assets and liabilities and the results of the legal requirements as set out in Part 9 of Book 2 of the consolidated companies are stated in full. The minority the Netherlands Civil Code. interests are stated separately. In accordance with legal requirements, a list of consolidated companies has been The company profit and loss account has been drawn up deposited at the Chamber of Commerce in Rotterdam. in accordance with Section 402, Part 9, Book 2 of the Netherlands Civil Code. Translation of foreign currency Assets and liabilities in foreign currencies are translated at Principles of valuation and determination rates that prevailed at the end of the financial year, or at of results rates for which forward transactions were concluded. The principles adopted for the valuation of assets and Exchange rate differences are taken to the profit and loss liabilities and determination of the result are based on the account. historical cost convention. Transactions denominated in foreign currency are translated at the rates applying as at transaction date. Insofar as not otherwise indicated below, all amounts are In view of the immaterial importance, the data from stated in thousands of euros, and assets and liabilities are foreign group companies in the profit and loss account are included at nominal value. translated at the rates applicable as at the balance sheet date. The resulting exchange rate gains or losses are taken directly to Other reserves in Shareholders’ equity.

Determination of the result The net turnover is the sum of the invoiced amounts, excluding VAT, for the orders delivered during the financial year. Profits on orders are taken on delivery. Losses are accounted for as soon as they are recognised.

Taxes are calculated on the basis of the commercial result before taxation, taking into account the applicable tax facilities. 46 FI N A N CIA L S T A t e M e n t S 2 0 0 6

Intangible fixed assets - Goodwill of the asset. Assets for sale are stated at book value or Goodwill upon the acquisition of participating interests lower market value, less selling costs. is capitalised and amortised, depending on the situation at the relevant investment interest. If negative goodwill Inventories (badwill) arises, it is taken to the Revaluation reserve for Work in progress - Work in progress is stated at full participating interests item in Shareholders’ equity and absorption cost, excluding interest on the invested capital, added to the Other reserves when realised. less provisions for expected losses where necessary. Instalments received are deducted from work in progress; Tangible fixed assets advance payments received that significantly exceed the The book value of the tangible fixed assets is determined work in progress are included under Current liabilities. by straight-line depreciation of the acquisition costs from the year of acquisition, based on the estimated useful life. Stocks - The raw materials and consumables are valued at The expected useful life of the asset categories is shown the lower of cost or market value. below. The semi-finished products and spare parts are stated at full absorption cost, excluding interest on the invested Yards, docks, slipways, capital, less provisions for price risk and obsolescence dry docks and business premises 5 to 30 years where necessary. Plant and machinery 5 to 20 years The valuation principle for work under construction for Other operating fixed assets 4 to 20 years own account is: hours spent converted at full absorption cost (excluding interest), materials and services of third Expenses for major maintenance are only capitalised if parties at historical cost, less a provision for expected this extends the useful life of the object. losses where necessary.

Financial fixed assets Receivables Participations in associated companies where substantial Receivables are carried at face value net of provisions for influence can be exercised are valued at net asset value bad debts. Receivables with a residual term of more than according to the valuation principles of IHC Holland one year are stated under financial fixed assets for those Merwede BV. If necessary, a provision is deducted for amounts that fall due more than a year after the end of the associated companies. financial year.

Impairment or disposal of fixed assets Debts The company states intangible, tangible and financial fixed The debts are stated at nominal value. Debts with a assets in accordance with accounting principles generally residual term of more than one year are stated under long- accepted for financial reporting in the Netherlands. term debts for those amounts that fall due more than a Pursuant to these principles, assets with a long life should year after the end of the financial year. be subject to an impairment test in the case of changes or circumstances arising that lead to the suspicion that Provisions the book value of the asset will not be recovered. The Insofar as valuations for tax purposes differ from the recoverability of assets in use is determined by comparing principles described in this section, and these result in the book value of an asset with the future net cash flow deferred tax liabilities, a provision is formed for these that the asset is expected to generate. If the book value liabilities, calculated according to the corporation tax rate of an asset exceeds the estimated future cash flow, an applicable as at balance sheet date. Deferred credits are amount for impairment is charged to the result equal to recognised if likely to be realised within a reasonable the difference between the book value and the fair value term.

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The provision for environmental liability concerns the future clean-up costs of contaminations as required in the current legislation.

The provision for employee benefits concerns compensation payments for long service terms and is stated at net present value. This provision was first accounted for in 2005. The effect of this change in accounting policies was directly charged to equity.

Pension rights The employees’ pension rights have been placed with the industrial pension fund for the metal-electro sector (PME).

In accordance with legal requirements, the accrued rights are immediately funded in full.

Since the PME participants’ only obligation is to pay the yearly premiums, the arrangement can be classified as a defined contribution scheme. Consequently, only those yearly premiums are charged to the profit and loss account.

Minority Interests Minority interests are carried at the third parties’ share of the underlying shareholders’ equity of the group company concerned.

The use of estimates During the preparation of the financial statements, the management must, in accordance with the general prevailing principles, make certain estimates and assumptions that co-determine the stated amounts. The actual results may deviate from these estimates.

Consolidated cash flow statement The consolidated cash flow statement has been prepared using the indirect method. 48 FI N A N CIA L S T A t e M e n t S 2 0 0 6

Notes to the consolidated profit and loss account

1. Net turnover The breakdown into geographical areas is as follows: 2006 2005

The Netherlands 127,706 59,672 Europe 141,214 323,527 Outside Europe 153,380 73,636 422,300 456,835

The turnover as value of production in 2006 amounted to € 514.5 million (2005: € 438.4 million).

Value of production is understood to be the amounts invoiced, excluding VAT, for the orders delivered in the financial year, plus the balance of work in progress at the year-end and less the balance of work in progress at the start of the financial year.

Group companies regularly perform work for, or outsource work to sister companies.

In view of the limited importance, there is no breakdown into business sector.

2. External costs The external costs include those for the materials and services supplied by third parties, including subcontracts and after deduction of grants, to an amount of € 3.2 million (2005: € 1.5 million).

In 2006 € 5.2 million was spent on research and development after deduction of grants received (2005: € 6.3 million).

3. Wages and salaries The remuneration of the managing directors, including pension charges, amounted to € 0.8 million (2005: € 0.5 million).

The remuneration of the supervisory board amounted to € 0.1 million (2005: € 0.1 million).

The average number of personnel can be categorised as follows: 2006 2005

Directly productive 1,206 1,210 Indirectly productive 627 640 1,833 1,850

The number of employees employed outside the Netherlands at year-end is 68 (2005: 240).

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4. Social security charges This includes pension charges of € 7.0 million (2005: € 7.4 million).

5. Income from associated companies The income from associated companies includes a gain in the amount of € 2.8 million with respect to the sale of a subsidiary.

6. Other financial income and expenses The specification is as follows: 2006 2005

Interest income 4,065 1,039 Interest expenses ( 743 ) ( 2,549 ) 3,322 ( 1,510 )

7. Taxes The tax charge can be broken down as follows: 2006 2005

Current tax charge ( 11,210 ) ( 3,772 ) Differences due to tax facilities ( 738 ) 748 Total tax charge ( 11,948 ) ( 3,024 )

The current tax charge is based on the profit before tax at the nominal tax rate. The effective tax rate amounts to around 27% in 2006 (2005: 22%). The difference with the nominal rate of 29.6% in The Netherlands is primarily the result of different rates applying to foreign business units, tax facilities and a prudent approach in the valuation of deferred tax credits. 50 FI N A N CIA L S T A t e M e n t S 2 0 0 6

Notes to the consolidated balance sheet

8. Tangible fixed assets A specification of the changes in the acquisition value and the book value of the tangible fixed assets is shown below.

Land, docks, slipways, Residential dry docks, property business Other and other premises and Plant operating assets not Investments floating and fixed tied to under equipment machinery assets operations construction Total

Balance as at 1 January 2006 Cost 94,295 63,678 22,567 712 756 182,008 Accumulated depreciation ( 83,052 ) ( 47,290 ) ( 16,855 ) ( 136 ) ( 59) ( 147,392 )

Book value 11,243 16,388 5,712 576 697 34,616

Movements: Investments 740 2,341 5,558 59 1,292 9,990 Disposals - ( 144 ) ( 46 ) - - ( 190 ) Deconsolidation of subsidiary ( 1,905 ) ( 3,936 ) - - - ( 5,841 ) Depreciation ( 1,852 ) ( 936 ) ( 2,067 ) ( 11 ) ( 41 ) ( 4,907 ) Other movements 52 279 ( 2,448 ) ( 624 ) ( 312 ) ( 3,053 )

( 2,965 ) ( 2,396 ) 997 ( 576 ) 939 ( 4,001 )

Balance as at 31 December 2006 Cost 62,526 57,918 24,277 8 1,801 146,530 Accumulated depreciation ( 54,248 ) ( 43,926 ) ( 17,568 ) ( 8 ) ( 165 ) ( 115,915 )

Book value 8,278 13,992 6,709 - 1,636 30,615

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Summary of tangible fixed assets: 31 Dec. 2006 31 Dec. 2005

Land, docks, slipways, dry docks, business premises and floating equipment 8,278 11,243 Plant and machinery 13,992 16,388 Other operating fixed assets 6,709 5,712 Residential property and other assets not tied to operations - 576 Investments under construction 1,636 697 30,615 34,616 Less: WIR premiums ( 1,130 ) ( 1,289 ) 29,485 33,327

The surface area of the land is 67.41 hectares, of which 14.47 hectares in leasehold and long-term lease.

9. Financial fixed assets The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Participations in associated companies 1,597 1,285 Receivables 2,121 2,066 3,718 3,351

Movements in the participations in associated companies were as follows: 2006 2005

Book value as at 1 January 1,285 1,640 Divestments - ( 400 ) Share in results 463 255 Dividends received ( 151 ) ( 210 ) Book value as at 31 December 1,597 1,285

Movements in the receivables were as follows: 2006 2005

Balance Sheet as at 1 January 2,066 2,910 Investments 84 7 Repayments ( 29 ) ( 851 ) Balance Sheet as at 31 December 2,121 2,066 52 FI N A N CIA L S T A t e M e n t S 2 0 0 6

10. Inventories The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Work in progress 55,001 17,825 Stocks 36,199 26,637 91,200 44,462

Work in progress The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Work in progress 270,208 178,038 Less: Instalments received ( 215,207 ) ( 160,213 ) 55,001 17,825

The order book at year-end 2006 amounted to € 1,030.3 million (year-end 2005: € 527.4 million). The company’s banks have issued guarantees for part of the advance payments received.

Stocks The stocks can be broken down as follows: 31 Dec. 2006 31 Dec. 2005

Raw materials and consumables 1,312 3,116 Semi-finished products and spare parts 20,447 13,511 Work under construction for own account 14,440 10,010 36,199 26,637

11. Receivables The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Trade debtors 46,973 17,978 Other receivables, prepayments and accrued income 13,499 13,528 60,472 31,506

The ‘Other receivables, prepayments and accrued income’ item includes deferred tax credits in connection with a long-term difference in valuation of assets of € 0.6 million (2005: € 3.1 million).

12. Cash at bank and in hand The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Cash in hand and bank balances 8,479 5,245 Short-term deposits 147,332 110,127 155,811 115,372 The cash at bank and in hand is freely available.

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13. Current liabilities The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Advance payments received for work in progress 102,006 21,590 Other current liabilities 119,652 93,118 221,658 114,708

Specification of other current liabilities: 31 Dec. 2006 31 Dec. 2005

Trade creditors 64,555 48,247 Taxes and social security contributions 2,689 1,637 Liabilities related to pensions 210 2,223 Other debts, accruals and deferred income 52,198 41,011 119,652 93,118

14. Long-term debt The composition of the long-term debt is as follows: 31 Dec. 2006 31 Dec. 2005

Loans Term to Interest rate

Subordinated loans see note EURIBOR + 3% - 20,000 ABANKA range 2004-7 range 4.00-7.00 - 2,663 ELES 2009 ranging - 898 Other loans n/a 3,942 3,910 3,942 27,471

The subordinated loans from SBM Offshore NV (€ 10 million) and IHC BV (€ 10 million) were repaid in 2006.

The ABANKA and ELES loans were obtained by Litostroj. This subsidiary is divested during 2006.

The other loans at year-end 2006 concern two, mainly interest-free, development credits, the redemption of which is related to the turnover of the developed product. 54 FI N A N CIA L S T A t e M e n t S 2 0 0 6

15. Provisions The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Environmental liability 1,134 1,134 Pensions 58 61 Other employee benefits 819 852 Deferred tax liabilities 5,666 3,360 Total 7,677 5,407

Movements in the provisions were as follows: 2006 2005

Balance Sheet as at 1 January 5,407 6,087 Additions 2,506 1,165 Release ( 236 ) ( 1,845 ) Balance Sheet as at 31 December 7,677 5,407

The provision for environmental liability concerns the future clean-up costs of contaminations as required in the current legislation. The provision for other employee benefits concerns compensation payments for long service terms. This provision was first accounted for in 2005. The effect of this change in accounting policies was directly charged to equity. The tax deferral mainly concerns the lower valuation of the work in progress for tax purposes and is in principle of a short term nature.

16. Shareholders’ equity The movements in Shareholders’ equity were as follows: 2006 2005

Shareholders’ equity as at 1 January 78,403 69,179 Consolidated net profit 31,243 9,782 Currency differences as direct movements in shareholders’ equity ( 20 ) 26 Total Result 31,223 9,808

Dividends paid ( 4,891 ) - Change in accounting principles relating to employee benefits net of tax - ( 584 ) Other movements in shareholders’ equity ( 4,891 ) ( 584 )

Shareholders’ equity as at 31 December 104,735 78,403

Also refer to item 6 in the notes to the company financial statements.

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17. Financial instruments Financial instruments accounted for in the balance sheet under assets and liabilities relate to financial fixed assets, trade debtors, cash and cash equivalents as well as liabilities and long term debt. The estimated market value of these financial instruments at year-end equals (or does not materially deviate from) the nominal value.

Financial instruments are exclusively concluded with prime banks. The available liquid assets are also exclusively invested with prime banks.

Interest rate and currency risk management - The company concludes interest rate instruments and forward exchange transactions with the aim of hedging risks that ensue from normal business activities. The central aim of this policy is to protect the enterprise against the risk of the ultimate cash flow being affected negatively by interest or exchange rate fluctuations. The total outstanding transactions are modest in relation to the entire enterprise.

Credit risk management - This risk consists of the loss that could arise if counterparties failed to fulfil their contractual obligations. The normal default risk is hedged by using information from recognised institutions that focus on providing credit information. Moreover, default risk is limited by invoicing orders in instalments and, if necessary, by taking out credit risk insurance.

18. Guarantees and other financial obligations Recourse commitments as at 31 December 2006, resulting from medium-term accounts receivable transferred to banks, amounted to € 5.6 million. These commitments are covered by credit insurance policies and guarantees from banks up to a total of € 5.2 million. The financial obligations arising from long-term rental and lease agreements are:

2006 2005 < 1 year 1-5 years >5 years Total Total

Operational lease 825 1,285 2 2,112 2,438 Rent 189 10,781 - 10,970 2,341 1,014 12,066 2 13,082 4,779

In the context of a financing agreement, concluded with a consortium of banks for IHC Holland Merwede BV and a number of subsidiaries, immovable property has been mortgaged and stocks, receivables, bank balances, other movable property and current assets have been pledged to the banks. 56 FI N A N CIA L S T A t e M e n t S 2 0 0 6

C O M P A N Y p r o FI T A N D l o S S A C C o u n t In thousands of euros 2006 2005

Result on group companies after taxation 29,737 12,585 Other income and expenses after taxation 1,506 ( 2,803 )

NET PROFIT 31,243 9,782

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C O M P A N Y B A L A N C E S H e e t In thousands of euros, before appropriation of result

Notes 31 December 2006 31 December 2005

FIXED ASSETS

Financial fixed assets 1 87,642 76,486

CURRENT ASSETS

Receivables 2 46,341 47,676 Cash at bank and in hand 171,116 104,990 217,457 152,666

CURRENT LIABILITIES 3 ( 199,215 ) ( 128,763 )

Result of current assets less current liabilities 18,242 23,903

Result of assets less current liabilities 105,884 100,389

LONG-TERM DEBT 4 - 20,000

PROVISIONS 5 1,149 1,986

SHAREHOLDERS’ EQUITY 6 Issued capital 250 250 Share premium reserve 68,136 68,136 Revaluation reserve group companies 2,150 2,150 Other reserves 2,956 ( 1,915 ) Unallocated results 31,243 9,782 104,735 78,403

105,884 100,389

58 FI N A N CIA L S T A t e M e n t S 2 0 0 6

n o t e S t o T H E C O M P A N Y F I N A N CIA L S T A t e M e n t S

General As at 31 December 2006, the company is a wholly-owned subsidiary of IHC BV.

For the notes on the valuation principles, insofar as not reported below, please refer to the notes to the consolidated financial statements.

Unless stated otherwise, all amounts are denominated in thousands of euros.

1. Financial fixed assets The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Net asset value of group companies 43,707 37,580 Book value of participations in associated companies 485 456 Subordinated loans to group companies 43,450 38,450 87,642 76,486

The movements in net asset value in group companies are as follows:

Book value as at 1 January 37,580 27,497 Merger with De Merwede Holding BV - 6,819 Acquisitions - 507 Disposals ( 4,047 ) ( 306 ) Other movements - ( 2,454 ) Results 29,737 12,585 Dividends ( 19,584 ) ( 6,966 ) Exchange rate differences 21 ( 102 ) Book value as at 31 December 43,707 37,580

In compliance with legal requirements, a list of the group companies and associated companies is filed at the offices of the Trade Register in Rotterdam.

Subordinated loans were granted to group companies for an unspecified term. These loans are subordinated to all the company’s debts. The interest amounts to 4% per year (2005: 5%).

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2. Receivables The specification is as follows: 31 Dec. 2006 31 Dec. 2005

Receivables from group companies 43,697 41,729 Other receivables, prepayments and accrued income 2,644 5,947 46,341 47,676

3. Current liabilities The specification is as follows 31 Dec. 2006 31 Dec. 2005

Liabilities related to pensions 267 2,231 Debts to group companies 196,066 121,900 Other debts, accruals and deferred income 2,882 4,632 199,215 128,763

4. Long-term debt The two subordinated loans that were obtained during 2005 from SBM Offshore NV (€ 10 million) and IHC BV (€ 10 million) were fully repaid in 2006.

5. Provisions These concern a provision for environmental liability for the future clean-up of contaminations as required in the current legislation and a provision for employee benefits with respect to compensation payments for long service terms.

6. Shareholders’ equity The authorised capital of the company amounts to € 1,250,000 and consists of 12,500 shares with a nominal value of € 100 each. As at 31 December 2006, 2,500 shares had been issued and paid up.

The movements in the shareholders’ equity in 2006 were as follows:

Share Issued premium Revaluation Retained Unallocated capital reserve reserve earnings results Total

Balance as at 1 January 2006 250 68,136 2,150 ( 1,915 ) 9,782 78,403 Result 2005 - - - 9,782 ( 9,782 ) 0 Dividends paid - - - ( 4,891 ) - ( 4,891 ) Currency differences - - - ( 20 ) - ( 20 ) Result 2006 - - - - 31,243 31,243 Balance as at 31 December 2006 250 68,136 2,150 2,956 31,243 104,735 60 FI N A N CIA L S T A t e M e n t S 2 0 0 6

7. Guarantees and other financial obligations The company is part of the tax entity of IHC BV and on this basis is jointly and severally liable for the tax liabilities of the tax entity in its entirety. The tax is settled in current account with the taxable subsidiary companies.

The company is jointly and severally liable for debts that could arise from a financing arrangement, entered into with a consortium of banks, for IHC Holland Merwede BV and several subsidiaries. With respect to this arrangement, immovable property has been mortgaged and stocks, receivables, bank balances, other movable property and current assets have been pledged to the banks.

Sliedrecht, 3 April 2007

Board of Management Supervisory Board

G.L.M. Hamers J.J.C.M. van Dooremalen

F. Brouwer C.J. de Bruin

I.A.C. Hoogstad-Boon

D.J.M.G. baron van Slingelandt

M.L. Wilke

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o t H e r I N F o r MA T I o n of the financial statements in order to design audit procedures that are appropriate in the circumstances, Auditor’s report but not for the purpose of expressing an opinion on the To: The Shareholders of IHC Holland Merwede B.V. effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting Report on the financial statements policies used and the reasonableness of accounting estimates made by management, as well as evaluating We have audited the 2006 financial statements of IHC the overall presentation of the financial statements. Holland Merwede B.V., Sliedrecht, as set out on pages 42 to 60 which comprise the consolidated and company We believe that the audit evidence we have obtained is balance sheet as at 31 December 2006, the consolidated sufficient and appropriate to provide a basis for our audit and company profit and loss account for the year then opinion. ended and the notes. Opinion Management’s responsibility In our opinion, the financial statements give a true and fair Management is responsible for the preparation and fair view of the financial position of IHC Holland Merwede B.V. presentation of the financial statements and for the as at 31 December 2006 and of its result for the year then preparation of the Report of the Board of Management, ended in accordance with Part 9 of Book 2 of both in accordance with Part 9 of Book 2 of the the Netherlands Civil Code. Netherlands Civil Code. This responsibility includes: designing, implementing and maintaining internal Report on other legal requirements control relevant to the preparation and fair presentation of the financial statements that are free from material Pursuant to the legal requirement under 2:393 sub 5 misstatement, whether due to fraud or error; selecting part e of the Netherlands Civil Code, we report, to the and applying appropriate accounting policies; and extent of our competence, that the Report of the Board of making accounting estimates that are reasonable in the Management is consistent with the financial statements circumstances. as required by 2:391 sub 4 of the Netherlands Civil Code.

Auditor’s responsibility Our responsibility is to express an opinion on the financial Rotterdam, 3 April 2007 statements based on our audit. We conducted our audit in accordance with Dutch law. This law requires that we KPMG Accountants N.V. comply with ethical requirements and plan and perform W.L. van de Vrie RA the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation 62 FI N A N CIA L S T A t e M e n t S 2 0 0 6

Appropriation of profit Article 33 of the Articles of Association states: 1. From the profit that is presented in the financial statements as adopted by the General Meeting of Shareholders, the Supervisory Board determines a portion to be reserved. The remaining profit is at the free disposal of the General Meeting of Shareholders. 2. On the proposal of the management and after approval of this proposal by the Supervisory Board, the General Meeting of Shareholders may resolve that dividends be paid in full or in part in a form other than cash. 3. The company can only make payments to the shareholders insofar as the shareholders’ equity is greater than the paid-up and called-up part of the capital plus the legally required reserves. 4. A deficit may only be offset from the statutory reserves to the extent that this is permissible under the regulations.

Proposal for appropriation of 2006 profit The profit for 2006 amounts to € 31,243,000. The Board of Management proposes a dividend of € 15,621,500 to the shareholders. The remainder of the profit for 2006 will be added to the Other reserves.

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47. Detail of a TSHD rainbowing 64 B U SI n e S S u n I T S

d r e dgi n g IHC Holland BV MTI Holland BV IHC Holland China Representative Office Molendijk 94, P.O. Box 204 Smitweg 6, P.O. Box 8 Room 916, Beijing Towercrest Plaza 3360 AE Sliedrecht, The Netherlands 2960 AA Kinderdijk, The Netherlands 3 Mai Zi Dian West Road T +31 (0)184 41 15 55 T +31 (0)78 691 03 22 Chaoyang District Beijing 100 016 F +31 (0)184 41 18 84 F +31 (0)78 691 03 31 People's Republic of China E [email protected] E [email protected] T +86 10 6467 2608 F +86 10 6467 2628 IHC Holland Dredgers BV Training Institute for Dredging-TID E [email protected] Smitweg 6, P.O. Box 1 Smitweg 6, P.O. Box 8 2960 AA Kinderdijk, The Netherlands 2960 AA Kinderdijk, The Netherlands IHC Parts & Services China BV T +31 (0)78 691 09 11 T +31 (0)78 691 05 00 P.O. Box 50 F +31 (0)78 691 38 66 F +31 (0)78 691 03 31 2960 AB Kinderdijk, The Netherlands E [email protected] E [email protected] T +31 (0)78 691 00 05 M +31 6 51843700 IHC Holland Beaver Dredgers BV Promin BV F +31 (0)78 691 07 27 Molendijk 94, P.O. Box 3 Smitweg 6, P.O. Box 9 E [email protected] 3360 AA Sliedrecht, The Netherlands 2960 AA Kinderdijk, The Netherlands T +31 (0)184 41 15 55 T +31 (0)78 691 06 56 F +31 (0)184 41 17 05 F +31 (0)78 691 09 80 IHC Dredging Technology (Tianjin) Co., Ltd. E [email protected] E [email protected] No 37, Xian Feng Dong Road, DongLi Economic Development Area IHC Mining Metalix BV Tianjin 300300 Molendijk 94, P.O. Box 204 Smitweg 6, P.O. Box 4 People’s Republic of China 3360 AA Sliedrecht, The Netherlands 2960 AA Kinderdijk, The Netherlands T +86 22 2499 8806 T +31 (0)184 41 15 55 T +31 (0)78 691 06 27 F +86 22 2499 8766 F +31 (0)184 41 18 84 F +31 (0)78 691 45 20 E [email protected] E [email protected] E [email protected] IHC China Support Ltd IHC Holland Delta Shipyard Rohr Bagger GmbH No.12 Zhenxing Dajie, Lijiao, Haizhu District Molendijk 94, P.O. Box 3 Rotterdamer Str. 15 Guangzhou, 510290 3360 AA Sliedrecht, The Netherlands D-68219 Mannheim, Germany People's Republic of China T +31 (0)184 41 15 55 T +49 (0)621 84 55 9-0 T +86 20 8417 4671 F +31 (0)184 41 17 05 F +49 (0)621 84 55 9-188 F +86 20 8417 4803 E [email protected] E [email protected] E [email protected]

IHC Holland Parts & Services BV Dredge Technology Corporation-DTC IHC Service Center Dubai Smitweg 6, P.O. Box 50 P.O. Box 1520, IHC Holland Parts & Services BV 2960 AB Kinderdijk, The Netherlands Wayne, NJ 074747-1520, USA Jebel Ali Free Zone Branch Office T +31 (0)78 691 09 11 T +1(973) 696-1559 P.O. Box 261342 F +31 (0)78 691 04 39 F +1(973) 696-3572 Jebel Ali Free Zone, Dubai E [email protected] P.O. Box 204 United Arab Emirates 3360 AE Sliedrecht, The Netherlands T +971 4 3382021 IHC Holland Engineering & Renovation BV T +31 (0)184 43 63 70 F +971 4 3382261 Molenstraat 24, P.O. Box 2 F +31 (0)184 43 63 75 E [email protected] 2960 AA Kinderdijk, The Netherlands E [email protected] T +31 (0)78 691 02 28 IHC Service Center Singapore F +31 (0)78 691 02 31 IHC Holland Liaison Office India IHC Holland Parts & Services BV E [email protected] R-3, Hauz Khas 22 Jalan Terusan New Delhi-110016-India Singapore 619299 IHC Systems BV T +91 11 2651 5825 T +65 6264 84 33 Industrieweg 30, P.O. Box 41 F +91 11 2651 6579 F +65 6264 19 33 3360 AA Sliedrecht, The Netherlands E [email protected] E [email protected] T +31 (0)184 43 19 22 F +31 (0)184 43 15 05 IHC Service center Kinderdijk E [email protected] Smitweg 6, P.O. Box 50 2960 AB Kinderdijk, The Netherlands T +31(0)78 69 10 895 F +31(0)78 69 10 961 E [email protected]

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O FFSH o r e & M A R I n e f o u n da t i o n Merwede Shipyard BV IHC Hydrohammer BV Rivierdijk 586, P.O. Box 5 Smitweg 6, P.O. Box 26 3370 AA Hardinxveld-Giessendam, 2960 AA Kinderdijk, The Netherlands The Netherlands T +31 (0)78 691 03 02 T +31 (0)184 67 73 00 F +31 (0)78 691 03 04 F +31 (0)184 67 73 01 E [email protected] E [email protected] IHC FUNDEX Equipment® BV IHC Holland Merwede Krimpen BV Houtkade 50, P.O. Box 83 Schaardijk 24, P.O. Box 216 4460 AB Goes, The Netherlands 2920 AE Krimpen aan den IJssel, T +31 (0)113 23 29 00 The Netherlands F +31 (0)113 21 26 30 T +31 (0)180 445 144 E [email protected] F +31 (0)180 445 199 E [email protected] IHC Handling Systems VOF Distributieweg 3, 2645 EG Delfgauw, Merwede Interior BV The Netherlands Helling 7, P.O. Box 5 P.O. Box 493, 2600 AL Delft, The Netherlands 3370 AA Hardinxveld-Giessendam, T +31 (0)15 251 20 00 The Netherlands F +31 (0)15 251 20 05 T +31 (0)184 67 73 00 E [email protected] F +31 (0)184 61 23 43 E [email protected] HYTOP BV Industrieweg 30, P.O. Box 335 Merwede Repair BV 3360 AH Sliedrecht, The Netherlands Rivierdijk 509, P.O. Box 5 T +31 (0)184 43 19 33 3370 AA Hardinxveld-Giessendam, F +31 (0)184 43 16 16 The Netherlands E [email protected] T +31 (0)184 67 73 00 F +31 (0)184 67 74 65 IHC Lagersmit BV E [email protected] Smitweg 6, P.O. Box 5 2960 AA Kinderdijk, The Netherlands Merwede Valves BV T +31 (0)78 691 04 72 Helling 5, P.O. Box 5 F +31 (0)78 691 04 77 3370 AA Hardinxveld-Giessendam, E [email protected] The Netherlands T +31 (0)184 67 73 00 GN Piping BV F +31 (0)184 61 12 10 Molendijk 94 E [email protected] 3361 EP Sliedrecht, The Netherlands T + 31 (0)184 43 63 50 Merwede Design s.r.o. F + 31 (0)184 43 63 55 Ul. Práce 6 E [email protected] 945 01 Komarno Slovakia T +421 35 7705960 F +421 35 7705961 E [email protected] AN n u a l r e p o r t I H C H o l l A N D M e r W E D E B V N A n u a t r o p e r l 2006 H C H I l l o M D N A r e W E D E V B 6 0 0 2

IHC HOLLAND MERWEDE

P.O. Box 204 3360 AE Sliedrecht