SUMMARY OF THE 137TH CORPORATE FINANCIAL YEAR

2 Chairman’s Statement 4 Editorial 6 2017 highlights 10 CFE in figures 12 Strategy 16 Board of Directors 18 Social responsibility 24 Innovation 28 Environmental responsability 30 Holding and non-transferred activities 34 Operational chart

36 Dredging, Environment, Offshore and Infra

40 Dredging 46 Dredging-Plus 54 DEME Concessions

56 Contracting

62 Construction 68 Multitechnics 70 Rail Infra & Utility Networks

72 Real Estate Development

1

Annual report 2017 Ongoing successful development

CHAIRMAN’S STATEMENT

Having assumed the chairmanship of CFE in mid-2016, I The Contracting division made substantial progress. finished the group’s first full financial year in 2017. Not only Its figures for 2017 were up to expectations, and we am I not disappointed, I am actually very satisfied with the are convinced that this division still holds plenty of development of each of CFE’s divisions. opportunities for growth. In an economic climate perhaps rather less buoyant than it When the Ackermans & van Haaren group acquired a was before - a passing phase, I am sure - DEME managed majority shareholding in the CFE group in 2013, many to hold its own remarkably well thanks to the installation believed that we were only interested in DEME and that the of offshore wind farms, as well as to the dynamism of the other activities, Contracting and Real Estate Development, teams. The substantial investments that we carried out, will would be neglected. Those people do not know us! The allow us to remain very competitive in the future. recent acquisition of the Van Laere group is proof - if that was still needed - of Ackermans & van Haaren’s attachment For Real Estate Development, 2017 was an exceptionally to CFE, as it strengthened CFE’s position in Contracting. positive year. BPI, which took on a new visual identity, confirms its position as one of the leading property Our ambition is to keep improving the operational developers in Belgium, Luxembourg and Poland. The excellence of every one of the companies in which we are investors were not wrong, and responded favourably to calls active. The work done by the managing directors and for corporate funding on the financial market. their teams was shown to pay off in 2017. I am sure it will continue to pay off in the years to come.

2

Annual report 2017 LUC BERTRAND CHAIRMAN OF THE BOARD OF DIRECTORS

3

Annual report 2017 The CFE group: riding on the crest of a wave!

CFE ended 2017 with a net result after tax The trend observed in 2017 also bears out the of € 180.4 million, which is more than in logic of our organization: while the results 2016. The past year thus clearly confirms the of Dredging remained stable, Contracting Editorial upturn realized by the CFE group. and Real Estate Development reported a considerably better performance. The This positive result can be seen across the synergies that we will continue to develop three divisions. Not only DEME reported between the divisions will further consolidate results in line with the particularly excellent our economic model. That will become performance of 2016, the Contracting and evident very soon. Real Estate Development divisions also confirmed the favourable outlook at the The group should take another step forward beginning of the year. When we also look in 2018, given the quality of the orders that at the all-time high order book (with in have been won, in particular by DEME, which particular a more than € 350 million increase today can rely on the most efficient fleet in compared with the previous year for the the dredging industry and related services. Contracting division), we see that the CFE This leap forward will become a reality group is evidently on the right track. for the Contracting division in particular, which was joined by the Van Laere group in December. The arrival of this new member will substantially strengthen the construction business in Belgium and will enable the

4

Annual report 2017 The CFE

RENAUD BENTÉGEAT PIET DEJONGHE MANAGING DIRECTOR MANAGING DIRECTOR

extended group to take on the future We can all be proud of CFE’s performance in challenges more effectively. 2017, for it is the exceptional commitment of the entire workforce of the group that made After this year’s excellent performance, the it possible to achieve those results and that Real Estate Development division is well is still our greatest asset for the continuation placed to progressively become a major real and success of our future development. estate player in Belgium, Luxembourg and Poland. To this end, we must in 2018 continue the current programmes and further strengthen the development capabilities. The holding and non-transferred activities, which remain in CFE SA, underwent thoroughgoing reorganizations in 2016, particularly the international and civil engineering activities. Those reorganizations permitted in 2017 the continuation and, in some cases, the completion of contracts that were concluded several years ago and of which the results could have constituted a risk factor for the company.

5

Annual report 2017 2017 Highlights

01 02 03

BPI sold its stakes in the project DIMCO won, in joint venture, the contract development companies of the for the construction of the RijnlandRoute, ‘Oosteroever’ site in Ostend to the Versluys the new road link between Katwijk and Group. Leiden, which is intended to make the area more easily accessible, improve traffic flow, BPI Luxembourg SA, IMMOBEL SA, and and stimulate economic growth. BESIX RED SA finally sold the shares of the company PEF KONS INVESTMENT SA to AXA IM – Real Assets on behalf of AXA Belgium.

GeoSea, the marine offshore engineering subsidiary of the DEME group, will design, build and install 71 wind turbine foundations for the Hohe See offshore wind farm in the German North Sea, for which GeoSea is the EPCI partner of Siemens. This partnership enables Siemens to provide offshore wind turbines including foundations to EnBW.

6

Annual report 2017 04 05 06

CLE began construction work on the BPC won the first contract for the modern residence ‘Fuussbann’ in construction of a building and hotel for Differdange, with spacious apartments, the China Belgium Technology Center in retail outlets, and a supermarket. the science park of Louvain-la-Neuve, the first Chinese incubator in Western DEME officially launched ‘Minerva’ in the Amart started up a new phase of the Europe. This first Chinese incubator port of Zeebrugge. This 3,500 m³ hopper residential project ‘Les Hauts Prés’ in complex will become an Intelligence dredger is the first dual fuel dredger in Uccle for the property developers BPI and Valley for Chinese businesses. The works the world able to run entirely on liquefied Belgian Land. are expected to last eight years. The natural gas (LNG). This vessel has a Green China Belgium Technology Center will Passport and a Clean Design certificate, eventually comprise five incubators for and meets the strictest international high-tech Chinese companies specializing emission standards. in biotechnology, nanotechnology, IT and The boards of directors of Ackermans telecommunication, optoelectronics, and & van Haaren and CFE examined the sustainable development. possibility of bringing together the activities of the Van Laere group and of CFE Contracting under CFE. The Van Laere group, a leading general contractor in Belgium, is 100% owned by Ackermans & van Haaren. The main entities of the Van Laere group are Algemene Aannemingen Van Laere NV, Groupe Thiran SA and Arthur Vandendorpe NV. CFE Polska signed several contracts for international customers, such as the construction of the residential project Riverview in Gdansk for VASTINT, the real estate division of the IKEA group, and the extension of the Platan shopping centre for ROCKCASTLE.

7

Annual report 2017 2017 highlights

07 09 10

The joint venture Sassevaart will build GeoSea signed an agreement with Moray the New Terneuzen Lock. The Belgo- East for the design, supply, construction Dutch joint venture Sassevaart consists and installation of around 100 wind turbine of construction firms such as Van foundations and three offshore substation Laere, and includes two subsidiaries of platform foundations, and for the DEME, namely the dredging company transport and installation of three offshore Dredging International, and DIMCO, substation platforms. The agreement is which specializes in civil and hydraulic subject to financial close which is expected engineering structures. The joint venture in the second half of 2018. Moray Offshore will design, build and maintain the New Windfarm East is a joint venture between Lock for a two-year period. It will be put EDP Renewables (77%) and ENGIE (23%). up in the present Terneuzen lock complex, between Westsluis and Oostsluis. It will be 427 metres high, 55 metres wide, and GeoSea signed an agreement with 16 metres deep. Work is due to start at the DONG Energy and Siemens to acquire end of 2017 and will take about five years. full ownership of A2SEA. A2SEA will The first ship is expected to pass through it continue to operate from Denmark for the in 2022. The New Lock will improve access maintenance and installation of offshore to the ports of Ghent and Terneuzen, and wind turbines. will facilitate maritime shipping between the Netherlands, Belgium and France. It will also give a fresh boost to the economy of Zeeland Flanders and the Flemish Region. CLE began construction work on the residential project ‘Domaine de l’Europe - Kiem’ on the Kirchberg plateau in Luxembourg for the property developer BPI.

8

Annual report 2017 11 12

GeoSea announced the acquisition CFE Contracting acquired full ownership After changing its company name into of a majority shareholding (72.5%) in of the company Aannemingen Van Laere BPI Real Estate Belgium for a better G-tec. This company, based in Milmort NV for the price of € 18.4 million. This description of its activity, BPI launched a in the Liège area (Belgium), specializes acquisition had been approved beforehand new website and strengthened its image. in offshore geotechnical and geological by the boards of directors of CFE and CFE This came with a new logo in new colours exploration, marine geophysical and Contracting after having been submitted expressing the dynamism of this company, environmental surveys, and deep-sea to the committee of independent which is one of the leaders on the Belgian, marine engineering services. The remaining directors. The Van Laere group will Luxembourg and Polish property markets. shares are held by SRIW (Société Régionale continue to operate under its own trade BPI successfully launched the first bond d’Investissement de Wallonie). names. Its activities will complement issue in its history. The private placement those of the other Belgian construction was subscribed on the first day up to the companies of CFE Contracting. The CEO desired maximum amount of € 30 million. of the Van Laere group, Manu Coppens, The bonds have a five-year maturity and joined the executive committee of CFE pay an annual coupon rate of 3.75%. Contracting. GeoSea signed a partnership agreement CFE Contracting acquired the company with CSBC Corporation to develop SA José Coghe-Werbrouck. This company, offshore wind energy in Taiwan. The established in 1966 and headquartered Taiwan government outlined an ambitious in Hooglede, has a plant in Péruwelz and programme to reduce the island’s specializes in railway works. Its strength lies dependence on fossil and nuclear energy, in the skill of its highly qualified workforce and instead to tap its vast resources of and in an extensive array of machinery. offshore wind power. A target of at least Coghe recently invested in a state-of-the- 3 GW offshore wind power capacity to art Tracklayer machine to replace railway be installed in the strait of Taiwan has switches, enabling it to fit prefabricated been set for 2025. GeoSea and CSBC will switches with concrete sleepers in one together set up a Taiwanese joint venture whole unit. for the transport and installation of the necessary foundations and wind turbines for those wind farms.

9

Annual report 2017 CFE in figures In 2017, CFE Contracting presented Practice Awards for the first time.

Revenue Increase of DEME’s revenue by The project « Erasmus Gardens » in Brussels won 3,066 19.6 % the « Best million € Sustainable Real Estate Project » award in Belgium.

10

Annual report 2017 Employees Net income part of the group 8 689 180.4 million €

The operating income (EBIT) ENGEMA Order book increased Caténaires and by 10% to VMA Nizet achieve 4,851 249.4 0 million € million € lost-time accidents in 2017.

The order book of CFE Contracting increased by 44.6 % which is explained by the incorporation of the group Van Laere.

11

Annual report 2017 DEME will remain focused, Strategy will pioneer and innovate, and continue to look to the future. A strategy staking on a winning combination of collaboration, operational excellence and innovation

2017 was a good year, but there is still plenty of room for improvement. To ensure continued and profitable growth, the strategy of the CFE group will therefore focus in 2018 more than ever on three important levers: retention and intensification of synergies and partnerships within the group, operational excellence, which is essential to achieve our goals, and innovation, which involves thinking about tomorrow’s world. Valuable synergies between divisions…

This year we have seen growing synergies Those synergies have proved beneficial and partnerships between subsidiaries of the in many respects. For instance, the same division as well as between the three continuation of civil engineering activities, independent divisions of the CFE group, which were transferred to DEME, created notably between DEME with its dredging and employment and solid skills within the marine and environmental civil engineering group as a source of numerous successes activities, BPI with all its real estate internationally and in the Benelux area. development activities, and CFE Contracting Collaboration between Real Estate with its construction, multitechnics and rail Development and Construction resulted activities in the Benelux area, Poland and in highly effective technical solutions for Tunisia. the benefit of property developer and contractor alike. This collaboration confirms - if that was still necessary - that we have complementary skills for the future within the group. Artist impression of the project ‘Entrée en Ville’ at Differdange, a mixed-used project of 25,000 m².

12

Annual report 2017 … and between teams of make known what each of the entities’ competences are throughout CFE, so that the same division priority is given to internal solutions within the group. This collaboration is also essential between Within the Contracting division, the sharing different teams of the same division, and of knowledge and skills is already made brings added value to each entity. 2017 possible by the creation of three clusters, proved the relevance of those partnerships, each covering all the activities of a particular which will be intensified at all levels in segment: electricity, HVAC and rail. Very 2018 and in the coming years. How? By interesting synergies and complementarities sharing knowledge and experience beyond are also systematically being investigated More and more productive the confines of each entity, working between the entities of the Construction synergies within the together on projects that call for different segment. HVAC cluster and, more skills, prioritizing the use of the group’s generally, within the own competences, sharing opportunities Contracting division. according to the geographical location, or by Operational excellence: transferring activities between entities. essential for profitable This willingness to work together not only involves the management of the entities, but growth also calls for the deployment of the group’s communication and human resources Growth requires a carefully considered departments to ensure that knowledge approach. There lies the essence of our is shared in the best possible way and to pursuit of operational excellence. The

13

Annual report 2017 Strategy

The potential of new technologies such as BIM is really tremendous - AMS De Boogkeers - Antwerp.

construction entities of the group took ‘Scheldt River’. The delivery marked a major an important step in 2017 with the milestone in the dredging industry, as these implementation of Lean management. But are the first dredgers in the world to operate that is just a start. The lean approach now on LNG. has to be systematically put into practice In addition, the DRIVE programme covers on the building projects, as well as in the a wide range of operational improvements other segments and in the offices, in order during all project phases. The Opportunity to facilitate and simplify the different & Risk Management system was further management processes. refined based on the 2016 insights and lessons learnt. This has resulted in an Innovation: enormous improved, and deeply embedded, risk-aware entrepreneurship by all stakeholders in the potential! DEME entities.

The entities active in Continuous improvement also calls for special techniques are also What will tomorrow’s particulary attentive to an innovative approach. The potential of the sustainable aspect of new technologies such as BIM, 3D printing, construction industry HVAC installations. robotics and prefab is really tremendous. Special emphasis will be on the application look like? of BIM technology, which will allow us to play a central role in the process of digital Innovation means thinking about how construction. We are convinced that this tomorrow’s world will evolve. This reflection approach will not only be conducive to the is obviously crucial in the area of real estate, CFE group’s growth, but will also hold many where projects only begin to take concrete benefits for our customers. shape for investors four or five years later. More than ever, we will focus in 2018 more As a company with a maritime heritage extensively on what form tomorrow’s homes, of more than 140 years, DEME has always offices and shopping centres will take, as well been a pioneer in innovation and new as on mobility, which is in full development technologies. Last year’s highlights include and affects all infrastructures. the addition of two pioneering dual-fuel hoppers to the dredging fleet, ‘Minerva’ and

14

Annual report 2017 A state-of-the-art machine to replace railway Environment and highly skilled workforce and full access to the switches. markets offered by our reference shareholder renewable energies: to all its entities. advanced solutions The CFE group also acquired the company Coghe, attesting to its ambition to Global developments are fundamentally strengthen its activity in the rail segment. changing our markets. But DEME is not This acquisition is an investment that is all standing still. We are continually looking the more important for the future since forward and currently we are focusing on a it will give us the benefit of a substantial series of initiatives with the goal to develop increase of top-quality equipment. breakthrough innovative solutions, tackling Finally, it should be mentioned the challenges like the ‘plastic soup’ threatening acquisition of the Danish offshore wind our oceans, the storage of energy to balance company A2SEA and the Belgium-based, electricity demand and supply, or the Blue geotechnical and geological offshore site Cluster, a partnership in Belgium where we investigation specialist G-tec. This will enable look to smartly combine sustainability and DEME to further reinforce its fully integrated economic growth. For example, DEME is a services and solutions portfolio. pioneer in renewable energy developments The group Van Laere, a and coastal protection, two of the initiatives The results of the past year and the increasing order books confirm for us the leading general contractor driven by the partners of the Blue Cluster in Belgium. platform. appropriateness of the strategic choices we made over the past few years. In order to offer our group the best possible New acquisitions opportunities for the future, we will further strengthen the synergies and partnerships at all levels, with a particular emphasis on The CFE group not only made financial operational excellence and innovation. progress in 2017. It also acquired the three construction companies of the Van Laere group, which have an excellent reputation. A great opportunity for CFE, whose Contracting division benefited from a new

15

Annual report 2017 Board of Directors

CISKA SERVAIS CISKA SERVAIS SPRL, REPRESENTED BY CISKA SERVAIS - INDEPENDENT DIRECTOR CHAIR OF THE APPOINTMENTS AND REMUNERATION COMMITTEE MEMBER OF THE AUDIT COMMITTEE

JAN SUYKENS CHRISTIAN LABEYRIE DIRECTOR DIRECTOR LUC BERTRAND MEMBER OF THE AUDIT COMMITTEE CHAIRMAN OF THE BOARD OF DIRECTORS MEMBER OF THE APPOINTMENTS AND REMUNERATION COMMITTEE

LEEN GEIRNAERDT PAS DE MOTS SPRL, REPRESENTED BY LEEN GEIRNAERDT - INDEPENDENT DIRECTOR MEMBER OF THE AUDIT COMMITTEE

16

Annual report 2017 ALAIN BERNARD JOHN-ERIC BERTRAND DIRECTOR DIRECTOR CHAIRMAN OF THE AUDIT COMMITTEE

RENAUD BENTÉGEAT MANAGING DIRECTOR KOEN JANSSEN DIRECTOR

PHILIPPE DELUSINNE INDEPENDENT DIRECTOR PIET DEJONGHE MEMBER OF THE AUDIT COMMITTEE MANAGING DIRECTOR MEMBER OF THE APPOINTMENTS AND REMUNERATION COMMITTEE

17

Annual report 2017 Social responsibility

Ever greater safety

Safety is more than ever a top priority throughout the CFE group. The first Safety Day held in all entities of the Contracting division at the beginning of 2017 was a success, and a second edition has already taken place at the beginning of 2018. A similar day has existed at DEME for several years already. However, this is just one of the many initiatives that are taken to improve safety at all the entities.

The constant efforts being made in the CFE group are paying off: accident figures The Exxon reveal a favourable trend in terms of both frequency and seriousness. Several entities Mobil Safety achieve a ‘zero accident’ score, such as Award ENGEMA Caténaires and VMA NIZET (zero presented to lost-time accidents). MBG First Safety Day at CFE A fine achievement, Contracting! since the conditions of this prize awarded The Safety Day took place on the same day by Exxon Mobil are at all the Belgian and international entities highly stringent (zero of CFE Contracting. Work stopped for a accidents, daily safety whole day and all employees were specifically reports, regular safety urged to be aware of the importance of meetings, etc) and the safety and to change their behaviour to slightest incident can improve safety. Among the many events jeopardize any chances that took place on that day were interactive of winning the prize. workshops on various topics such as falling MBG won this Safety from a height or fires on building sites, Award for the excellent eyewitness accounts of people who became level of safety that disabled after an accident, guided site was maintained on visits, first-aid courses, coaching, stress the building site of a management, an ergonomics workshop, and factory for Exxon Mobil many other activities. in Antwerp.

18

Annual report 2017 Another Safety Moment Day at DEME

For several years now, DEME has organized a worldwide Safety Moment Day. The theme in 2017 was all forms of hoisting. All hoisting procedures were catalogued so that every employee can find the good practices identified for each type of hoisting equipment.

Numerous training The importance of risk programmes at all analysis entities Awareness campaigns, training programmes and toolbox meetings were also held in Besides this exceptional safety day, many the different clusters and subsidiaries of other initiatives took place, such as a the Contracting division, in Belgium and substantial increase in the number of health internationally, to raise safety awareness and safety advisers at all CFE entities. among the management and to reiterate The companies also organized numerous the basic principles of safety management, technical training programmes specific to as well as for training in fire prevention and their line of business. CFE Bâtiment Brabant first aid in case of accidents. Wallonie (CFE BBW) continued its training Emphasis was on the importance of risk programme on working at heights to make analyses, with an optimization of those sure that every worker or crane operator analyses at CFE BBW and the creation of working on a building shell is properly trained innovative smartphone applications at MBG and equipped with a personal safety harness. and CFE Polska. Training sessions were also organized on sling operations, electrical works, scaffolding etc. at various entities of CFE Contracting, while Safety apps for the Rail Infra & Utility Networks segment focused on the very specific safety aspects of smartphone working on railway sites and the installation of high-voltage power lines in training Those apps are used to report and courses organized by Infrabel. communicate details of an incident or a At DEME, a special Task Force was set up dangerous situation very quickly, so that composed of representatives of the marine preventive safety measures can be taken. engineering activities, QHSE-S and hoisting During the first month, some fifty incidents specialists. This Task Force systematically or dangerous situations were reported in this visits all the vessels of the fleet to explain the way at MBG, compared with just a hundred new safety procedures and train the crews. during the whole of 2016!

19

Annual report 2017 Social responsibility

The Karolina safety app developed by CFE The results of the HIPO analysis also Polska also makes it easy to run audits, constitute an important tool to help the statistics and reports, and was accoladed staff of DEME take the necessary measures CHILD5 with a Best Practice Award. immediately in their area of responsibility, whether on board a vessel, on site, or on a In addition to those various initiatives, project. The CHILD (Colleagues unannounced on-site visits and continuous Help Injuries to improvements to protective equipment Leave DEME) safety (harnesses, cameras on tower cranes, fall A first for DEME: a programme took protection, etc) help to increase safety its normal course. throughout the group. worldwide ‘safety pause’ The CHILD 5 safety awareness sessions, The idea of this safety pause came after which address A new system of high- a QHSE-S performance score for the first various topics potential incident analysis quarter below the usual high standards, and such as leadership, a serious incident on one of the dredgers. The communication, (HIPO) QHSE-S team decided to act immediately cooperation and and called for a safety pause, a course of commitment, were In 2017, DEME introduced a system of action that received the full support of the attended by more than high-potential incident analysis (HIPO) management and shareholders of DEME. 800 staff members in focusing on incidents that may have serious Work was interrupted for half a day at every 2017. An awareness consequences for the company’s quality, project site, office and vessel to allow DEME campaign was also health, safety and environmental standards. to re-emphasize the message ‘safety first’. A organized on the detailed analysis of the incident subsequently subject of blind spots HIPO analyses are conducted on a quarterly resulted in an action plan containing more on earth-moving basis throughout the DEME group. They than 40 items. machinery. highlight worrying incidents or developments that need to be addressed as soon as ‘Risk hunts’ were organized on all vessels and possible. By analyzing QHSE incidents that in the offices, during which staff members occurred during marine, hoisting, earth- identified every potential risk or hazard in moving and other operations, potential their work environment. problems are identified immediately, so At the same time, DEME launched a Safety that the management and QHSE-S team Charter which asks everyone to look out for can use this information to work out a each other. All employees were asked to sign targeted action plan. This may include poster the Charter. An accompanying safety video campaigns, additional training sessions was produced in which the team involved or toolbox meetings, inspection rounds by in an incident urges its colleagues to take the management, and general process safety seriously. improvements.

20

Annual report 2017 CFE’s greatest asset: the men and women who work for the group

CFE has always set great store by the men and women who work for it. This was all the more so in 2017, a year marked by renewed major investment in human resources at different levels.

In a context marked by numerous mergers HR, etc) took place in a knowledge-sharing and combinations of subsidiaries, the human perspective. resources teams were strengthened in all This sharing process also stimulates in entities, more particularly in the Contracting the companies the search for internal division at CFE Bouw Vlaanderen, CFE BBW, competences within the group that meet VMA, the HVAC cluster, and the rail activity. the needs of their assignments. This will be A central human resources department was further intensified in 2018 by the creation of also set up at group level to foster synergies networks between managers and by other and generate interactions between all the initiatives to foster interaction. subsidiaries.

Encouraging and ‘Spencer for DEME’ app facilitating knowledge for the staff sharing The app ‘Spencer for DEME’, which was introduced in 2017, is also part of this sharing Young people The different HR managers meet every and cooperation process. It is a mobile are the future! two months to exchange best practices, application that keeps employees up to date knowledge and experience of their teams on the latest DEME news and gives them between entities as well as between easy access to work-related content and What the youngest divisions. In the context of Ambition 2020, a tools while out of the office. With Spencer, employees have to digital platform was set up to facilitate those DEME wants to improve communication say does not always exchanges, and a team from CFE Polska and cooperation by bringing together get the attention it came to Belgium to visit projects of the all information and the various business deserves in the world group that implement Lean and Bluebeam; applications in one central place, a true of work. CFE BBW and this visit led to fruitful exchanges and mobile ‘hub’. This approach is particularly MBG want to change cooperation projects. necessary as most of DEME’s operations take this by making the place on an international level. most of what those The Ambition 2020 project was initiated in young people have to 2016 in the Contracting division, and clearly offer. Brought together highlights the paramount importance in the ‘Comité des of human resources in the group’s jeunes’ and the group development. The aim is to pool energies ‘Jonge Wolven’, the in a forward-looking common project. In junior members of the 2017, several meetings of managers and teams get a respectful inter-subsidiary working groups centring hearing for the on specific topics (procurement, finance, innovative vision they bring to the company.

21

Annual report 2017 Social responsibility

A healthy mind in a healthy body!

Employee well-being has been gauged in surveys, followed by on-site improvement plans and various training programmes, such as on burnout prevention at BPC. By the same token, sports and health CFE, a group that is good Pursuing its objective of becoming an programmes have been “employer of choice” in the dredging and set up at the different to work for environmental and marine engineering entities to improve industry, in Belgium and internationally, health and well-being, The CFE group, which already boasts an DEME is making considerable efforts to reduce stress and, outstanding reputation as an employer, become a more flexible employer and has ultimately, ensure not strengthened that image further in 2017 by launched a number of initiatives in the only that every worker its highly proactive human resources policy. area of homeworking, mobility and flexible can flourish in his or To make employees aware of their skills and working hours. In the summer of 2017, the her job, but also has to enable them to develop in their job, a HR team of DEME conducted a survey a healthy mind in a programme was set up with tools for career on mobility issues and possible solutions. healthy body. planning, training and internal mobility, as As traffic congestion on the outskirts of well as talent assessment and employee Antwerp is a serious problem, employees can satisfaction. now work from home or make use of several fully equipped and state-of-the-art satellite At the local level, the various clusters and offices situated on main roads that are entities benefit from this strong image well served by public transport. The staff’s when they take part in events at schools response to this new policy has been very and universities where employers and positive. students meet, or when they recruit staff. The subsidiaries are also maximizing their DEME is confident that these measures will own strong points to attract prospective assure its workforce of a more stable work- employees by offering coaching, employee life balance and will diminish the departure induction programmes, training sessions, of workers wearied by the daily transport career development opportunities and problems. mobility between entities. Those assets have become even more attractive as the HR teams and internal interactions were A highly professional strengthened in 2017. recruitment process

Mobility solutions The recruitment process has been improved with the help of professional experts in this field. The idea is to use competence as the The idea of ‘hubworking’, allowing employees only criterion, without discrimination on to work in a satellite office closer to home, grounds of gender, cultural background is also gaining ground, and is already or age, but also to meet the needs of beginning to be put into practice at DEME candidates by taking into account their and MBG. Working from home is also on the personality and discovering what the agenda, particularly at DEME. employer can offer them. This method

22

Annual report 2017 In 2017, DEME received the ‘Randstad Award’ for the most attractive employer in Belgium. This award is based on the results of a survey held among 11,000 respondents. DEME also won the ‘Lifetime Achievement Award’ on the basis of the ratings which the company has obtained since 2009 in the ‘Randstad Employer Brand Research’.

of recruitment also makes it possible to Wide range of training Fine boost identify the talents of people who do not necessarily have the qualifications required programmes for a Polish for the job. Internal training programmes primary have been developed specially for them. Broadly speaking, the training programmes This is the case in particular for the job are designed to give people the best possible school of optical fibre welder, of which there is opportunities and to help them grow and currently a shortage: the company Louis develop throughout their career. CFE Polska, together Stevens & Co has developed a short but with two other highly valued training course which ensures Besides numerous training programmes in companies involved in that new recruits who are talented but not safety and technical training specific to the Majaland Park (Plopsa specifically qualified are not discouraged by group’s various activities, training in financial and Momentum the complexity of the task. and analytical aspects etc, emphasis in Capital), fitted out an 2017 at all entities was on training in more ICT room in the primary general and personal competencies, such as school of Boczów in International recruitment leadership, feedback, stimulating personal Poland. The equipment campaign at DEME growth, as well as Lean management at comprises 27 laptops, MBG and BPC, and on-the-job coaching of printers and TV and junior employees at CFE BBW. multimedia materials. DEME launched a major international DEME extended its already wide range of It will be used for recruitment campaign in 2017. In view of training programmes with the launch in numerous purposes: the success of all its entities, the company November of ‘EPC Community’. This virtual IT classes, interactive wants to further strengthen its international training platform assists staff members with teaching, research workforce. The recruitment campaign seems the more technical aspects of EPC projects. and rapid information to have paid off, as evidenced by a recent It testifies to DEME’s intention to expand transfer, and welcome day for some 200 new employees. its range of virtual training programmes communication with Thirty nationalities were represented. DEME and thereby give its staff and crews greater pupils and parents. was particularly active in Spain, Portugal and flexibility. Furthermore, the performance Unquestionably a very Eastern Europe, visiting university campuses, management tool ‘Time To’ developed by useful present! attending regional events, and working DEME helps staff and managers to assess together with local employment agencies. their performance, skills and development It was an effective way to reinforce its needs. A specific ‘Time To’ tool for vessel international brand image as an employer, crews will be implemented in 2018. which was already strong in Belgium and the Netherlands.

23

Annual report 2017 Innovation Innovation: key lever operationalfor excellence

The importance of innovation is beyond doubt. The contribution of new technologies to the construction activities is a decisive productivity factor by its direct impact on operational excellence and in several respects also allows a better protection of the environment and greater safety. Innovation and the desire to push the envelope also remain part of DEME’s DNA. DEME’s investments in new technologies show how important innovation is to the company. Throughout the world, its employees participate in technological developments to introduce sustainable solutions on its markets. Within DEME, this approach calls for close collaboration between the sites, vessel crews, project management teams and the technical and engineering departments.

Working more efficiently CFE group in Belgium and internationally. The Tivoli building project, a sustainable district in the Brussels Region, is a prime Lean Management responds to this example of this approach. expectation. Applied to construction, it The Tivoli building project, optimizes the organization of the site by a sustainable district in the Brussels Region, is a eliminating all forms of inefficiency such BlueBeam, an original prime example. as unnecessary actions and movements, overproduction of materials, time- formula at MBG consuming procedures, etc. Planning is an essential aspect of Lean Management. Based Like BIM (Building Information Modelling), on deadlines, needs and other information BlueBeam is a software program that allows supplied by all the parties involved in the team members to work digitally and in real project - on-site workers, subcontractors, time and facilitates the transmission of suppliers, architects, etc. - this calls for the information. The big difference is that the participation and collaboration of all the information in the BIM model is transmitted parties and makes it possible to cope with in PDF format. This alternative to BIM was any problems that arise. This method was developed by MBG to reflect more closely rolled out in 2017 across the projects of the the real situation in the field and make the

24

Annual report 2017 information accessible without having to use 3D software. BlueBeam was tested this year on MBG’s Antwerp Management School project in Antwerp, which is still in progress. The system clearly proves its relevance on that project: all the partners involved (designers, suppliers, subcontractors, administrative staff, etc.) have easy access to the information, which is also very efficient to manage.

Innovative initiatives in all respects

Everyone can have a good idea. That is why More than 300 new ideas DEME has set up innovation initiatives that were entered, selected, are intended for its employees and really successfully implemented, create value. and accoladed with an ‘Innovation Diver Award’. ‘DEMEx’ emphasizes disruptive innovation by calling on young talents to identify bold commercial opportunities for DEME. ‘Co-creating our future’, an event that was Partnerships for organized at the beginning of 2017, brought innovation together workers and management staff to reflect on the commercial trends of DEME has always entered into partnerships the future and to explore innovative ideas with other companies and with universities, together. academic institutions and government In 2017, the ‘DEME Innovation Diver’ called organizations with a view to working upon all employees across the world to together in the area of research and resolve thirteen challenges and to submit innovation. This sharing of knowledge ideas for innovative solutions. Some 700 and creativity has led to new ideas for staff members joined forces on an online sustainable solutions to meet different innovation platform. More than 300 new environmental and economic challenges of ideas - an impressive figure - were entered. our planet. Several of those were selected, successfully The Flemish Institute for Agriculture and implemented, and accoladed with an Fisheries Research (ILVO) and the University The first lines for mussel ‘Innovation Diver Award’. of Ghent launched the Edulis pilot project to farming were installed on Within the CFE group, innovation examine the possibility of growing mussels the C-Power wind farm in May 2017. increasingly manifests itself in widely diverse on the wind farms off the Belgian coast. areas, as is testified by the development of These institutions are conducting the project several applications in the areas of training – called ‘Noordzee Aquacultuur’ (Aquaculture and safety, such as, for example, the apps in the North Sea) – in partnership with a developed by MBG and CFE Polska to report consortium of seven companies, including and communicate an incident or dangerous DEME. The first lines for mussel farming situation quickly on a digital platform. were installed on the C-Power wind farm Another novelty is the introduction in the in May 2017. Within two years, the experts Rail segment of an innovative safety and should be able to deliver a final opinion on test system to prevent accidents when rail the ecological and economic feasibility of cranes are used. mussel growing on the wind farms.

25

Annual report 2017 Best Practice Awards Sharing good ideas

In 2017, CFE Contracting presented Best Practice Awards optical fibre welding. Louis Stevens & Co set for the first time. This initiative stemmed from the desire to work, and this investment in time paid to share good ideas with everybody. This first edition of the off immediately: half the workers decided to stay. This training course was an excellent Best Practice Awards clearly showed that there is no lack of idea, short and well targeted! good ideas in the group. In the category “Office”:

There were 65 entries, which were assessed MBG for the Bluebeam by a panel composed of Renaud Bentégeat software (CFE), Piet Dejonghe (CFE), Frederik Lesire (BPI), Theo Van De Kerckhove (DEME), Based on a digital 3D model, BIM (Building Bernard Heiderscheidt (SECO) and Information Modelling) is a working method Emmanuel Tual (VINCI). that facilitates the transmission of data of a building model between all the partners involved. MBG uses it, but has also tested And the winners are… a more user-friendly alternative, called BlueBeam, on the Antwerp Management School project. Like BIM, BlueBeam allows In the category “Human team members to work digitally and in real time and facilitates the transmission of Capital”: Louis Stevens & information. The big difference is that the Co for a training course in information is transmitted in PDF format Best Practice Awards, the and that it is very easily accessible for desire to share good ideas optical fibre welding everyone, including on tablet. BlueBeam with everybody. thus more closely reflects the real situation There are very few candidates on the labour in the field, as not all partners are able to market with training in optical fibre welding. use 3D software. This system has helped to Faced with this shortage, the company simplify the process and save a lot of time. A decided to train new employees “in the good idea that has won the interest of other field”. However, many were discouraged by entities. the complexity of the task: nine out of ten workers gave up quickly. The solution was to come up with a two-week training course in

26

Annual report 2017 Category ‘ Grand Prix’ : on the Tivoli project - involving the construction of an entire sustainable district in the Brussels In the category “On Site”: the project (team leaders, subcontractors, Region - the team of BPC etc), frequent meetings and precise but implemented the Lean CFE Polska for a safety app flexible planning, all imbued by a desire for Management principle. continuous improvement. BPC embarked on With the safety app Karolina Safety System, the project with great skill, and its brilliant all the details of a dangerous situation, Lean Management approach incited teams with photos if necessary, can be reported from several other entities of the group, immediately on a digital platform. This is a including Poland, to visit the Tivoli site. major asset in the area of safety, as it allows preventive action to be taken and accidents to be avoided. The application, developed Conclusion by CFE Polska, can also be used for safety audits, keeping safety statistics, and drawing Although four awards were presented, all 65 up reports. The Karolina Safety System will entries provided great inspiration, and were soon be shared and used by the whole group: all shared on One Drive among the entities after the English version, which was ready at of the group! the end of 2017, French and Dutch-language versions are planned for 2018.

Finally, the “Grand Prix”: There were more than 65 entries which were BPC for Lean Management assessed. On the Tivoli project - involving the construction of an entire sustainable district in the Brussels Region - the team of BPC implemented the Lean Management principle, an approach that increases efficiency and avoids waste of resources of every kind by eliminating unnecessary movements and travel, overproduction of materials, time-consuming procedures, etc. This approach involves maximum collaboration between everyone involved in

27

Annual report 2017 Environmental responsability Building sustainablea future

The CFE group has pursued a policy of sustainable Druart) with which they fit out buildings development for many years now, with ever higher that are being constructed or renovated. standards both in construction and in all its activities and The company be.Maintenance, which is increasingly active in passive buildings, related practices. effectively limits energy consumption by fine- tuning settings and alerting its customers to good practices and to the significance The skills acquired in sustainable building of technological advances to reduce energy not only enable the group to meet current consumption. expectations in energy and environment- Certain activities of the group are also related matters, but also to anticipate environmentally friendly by their very future expectations by getting ahead of the nature. This is the case, for example, with regulations currently in force. the activities to maintain and improve the railway network carried out by the Rail Infra & Utility Networks segment, and which Natural materials and contribute to a less polluting mobility policy, low-energy buildings for a or activities of wastewater treatment and power generation by wind farms. sustainable future

This year, numerous building projects Protecting the testify once again to this know-how. environment day by day… Examples include the new head office of AXA in Brussels, which won the BREEAM Excellent certification (BPC and VMA); the Environmental awareness is also put into Renaissance project in Liège, developed by practice on a daily basis in the office and BPI, and the first low-energy project in the on site in many different ways, such as by The entities in special Liège area, and Erasmus Gardens in Brussels, sorting and processing waste, reducing techniques are increasingly which won the “Best Sustainable Real Estate energy consumption, increasing digitalization active in passive buildings. Project” award in Belgium. BPI also initiated to cut down on paper consumption, and a sustainable accommodation project for rationalizing travel movements. In this students, the Woodskot, with its timber respect, the opportunities of hubworking and structure. homeworking are being investigated, and certain entities are already putting this into The entities active in special techniques are practice. also particularly attentive to the sustainable aspect of HVAC installations (Procool and

28

Annual report 2017 The new head office of AXA in Brussels, which won the BREEAM Excellent certification.

won DEME once again a CO Awareness … today and tomorrow 2 Certificate Level 5 on the CO2 Performance Ladder. Other initiatives worth mentioning are the development by CFE BBW of more energy- efficient site office containers, and the Reducing greenhouse gas compilation by CFE Tunisia of a guidebook on good environmental practices and the emissions with a green on-site implementation of performance fleet indicators in that area. BENELMAT has fitted out its buildings in Gembloux with highly efficient insulation and heating Targets are set for DEME’s direct and indirect systems, ventilation systems with heat greenhouse gas emissions from its own recovery, and lighting systems that received activities and from the supply chain. The congratulations of the Walloon Regional new vessels that have joined the fleet are all Energy Consulting Agency. designed as ‘green’ vessels fitted with the latest-generation dual fuel engines with very low gas emissions. They include the brand- DEME rewarded for its new ‘Minerva’ (3,500 m³) and ‘Scheldt River’ (8,400 m³) which joined DEME’s fleet in 2017; integrated environmental they are the first dredgers in the world to be management fitted with duel fuel engines and capable of running entirely on LNG.

The reduction of greenhouse gas emissions As a matter of fact, DEME continues to is essential to control climate change. DEME explore ideas, initiatives and sustainable contributes in its projects to a reduction of technical solutions in the worldwide effort its own greenhouse gas emissions and to a to control greenhouse gas emissions. diversification of energy sources. Although currently no targets have been set The brand-new ‘Minerva’ for the reduction of worldwide emissions in (3,500 m³) which joined To achieve that objective, all the necessary the maritime industry, DEME is constantly DEME’s fleet in 2017. plans are drawn up by different departments looking for sustainable alternative energy (QHSE, technical department, DRIVE, sources in all its activities. etc) at both project and corporate level. The reduction of greenhouse gases is a constituent part of DEME’s integrated environmental management system. This

29

Annual report 2017 Holding and non-transferred activities Various competences

The operations of the holding are essentially the concession Good prospects for activities, the supervision of the activity of Rent-A-Port, the civil engineering activities that were not transferred to Rent-A-Port DIMCO, and the international construction activities that were not transferred to CFE Contracting. In 2017, Rent-A-Port was mainly active internationally, such as in Vietnam where the firm consolidated its position, and in the Middle East where it was able to hold its own Concessions despite a temporarily difficult political and economic context. The most important concession, Green Rent-A-Port specializes in the study, Offshore, concerns the wind farms in the development and management of greenfield North Sea. Construction works on the Rentel port projects and industrial port zones. wind farm should be completed at the The company can ensure the overall beginning of 2019 while the works on the management of everything to do with Seastar and Mermaid offshore wind farms distribution of electricity and water, the has not started yet. However, the green collection and processing of waste, and certifications have been obtained for these wastewater treatment; it can also finance future projects. renewable energy and drinking water supply projects in collaboration with its subsidiary Rent-A-Port Green Energy, which specializes in renewable energy generation. Both Rent-A-Port and its Green Energy subsidiary put their concern for environmental protection into practice in their working methods and by the very nature of their activities, as was testified in 2017 by various ‘green’ initiatives in the field of solar energy, wind energy and wastewater treatment.

30

Annual report 2017 In the Netherlands, the exit from the Zuiderzeehaven project in 2016 should generate Vietnam Qatar a substantial cash flow in the spring of 2018. Rent-A-Port worked closely together with the In Qatar, 2017 was a year troubled by the authorities of the Port of Azov in Russia for decision of some neighbouring countries to the joint management of the liquids jetty boycott all supplies to Qatar, particularly for diesel and LPG imports, where a capacity aggregates for concrete and asphalt from utilization rate of 80% was attained in 2017. the Emirates. This boycott came at a time This collaboration with the Port of Azov when Rent-A-Port, after considerable will also extend to the joint management engineering efforts, won a five-year contract (50/50) of the new port area that is planned for the management of port, sorting and on the Tien Phong peninsula, in the Province warehousing operations for 10 million tonnes of Quan Ninh. As a matter of fact, Rent- per year. Because of the boycott, Qatar was A-Port has very good relations with the forced to cancel the contract. Vietnamese authorities in the context of However, by way of compensation, the consultancy services for the privatization of Qatari government awarded another the state-owned port authority (Vinalines). contract to Rent-A-Port for the Khatmat Thanks to the good local contacts and the Millaha project, involving the start-up of a fact that Rent-A-Port manages a power new aggregate production site. This project grid that serves more than 60 industrial was initiated in October 2017. customers, the subsidiary RAP Green Energy will be able to start up two new projects in 2018, one for solar energy and the other for wind energy.

31

Annual report 2017 Holding and non-transferred activities

Oman

Under the terms of the concession agreement that was signed six years ago with the Antwerp Port Consortium (60% RAP and 40% PAI), the Sultanate of Oman is in charge of the completion of the port’s construction, while the Antwerp Port Consortium is entrusted with the development of the industrial sites. Unfortunately, the fall in oil prices since 2015 has had a significant impact on the Sultanate’s national budget; consequently, the port infrastructure will only be finished in 2019, delaying the arrival of new customers. Nevertheless, thanks to the dynamism of the local team in Duqm and Muscat, more than two-thirds of the operating costs have been covered by the first customers in 2017, and in view of the current situation and the commercial contracts in progress, the operation of the port is expected to start showing a profit in 2020. A steady future

2018 looks favourable for Rent-A-Port and its subsidiary, with a solid order book in Vietnam, a steadily improving situation in Oman, and the probable confirmation of new projects in the renewable energy segment. In the Netherlands, the exit from the Zuiderzeehaven project in 2016 should civil engineering and the electromechanical generate a substantial cash flow in the activities should lead to the completion spring of 2018. Rent-A-Port has also carried of phase B, and a large part of the plant out studies in Gabon and Guinea that are should become operational at the beginning likely to expand its activities on the African of 2019. The stakes are high: the entire continent in the future. second phase of this huge wastewater treatment plant should be delivered by 31 December 2018. This challenge meant Civil Engineering having the whole workforce work 24 hours a day, six days a week, on this project during last November and December in order to Intense activity at the Brussels- guarantee delivery by the end of 2018. South wastewater treatment In Wallonia, the Kain dam project on the plant river Scheldt is progressing to the customer’s satisfaction and is due for delivery in The biggest civil engineering project (not June 2018, as is the water pumping station transferred to DIMCO) is the Brussels-South in Jemeppe (Liège), which is now in the wastewater treatment plant (STEP). Activity process of being awarded the certificate of on this project was intense throughout completion. 2017 and is set to remain so in 2018. The

32

Annual report 2017 Activity at the Brussels- South wastewater treatment plant was intense throughout 2017 and is set to remain so in International Construction or part of the amounts due, although by the 2018. end of February 2018, the date on which the financial statements for 2017 were drawn up, Activity continues in several no payments had been made yet. Activity in Nigeria was buoyant, with the Eko Tower II countries, more particularly in building in Lagos having been delivered and Africa currently occupied by Total.

In Algeria, performance of the maintenance In Romania, the hospital project in Bucharest contract for the head office of BNP progressed well in 2017, and the works continued. This building remains a reference will definitely be finished in April 2018. All for this customer, which considers it to be amounts due to CFE in Romania were settled the most attractive office building in Africa. during 2017. In Hungary, we ended by mutual In Chad, the company continued its efforts agreement the company Bayer-CFE which to secure payment of the outstanding will continue its activities as Bayer. receivables on the Grand Hotel contract in N’Djamena, which was officially opened in July 2017 under the banner of the Radisson group. Negotiations are in progress with the financial institutions to secure payment of all

33

Annual report 2017 Operational Chart CFE HOLDING March 2018 – main entities

REAL ESTATE DREDGING, ENVIRONMENTAL & MARINE ENGINEERING CFE CONTRACTING DEVELOPMENT

DREDGING & LAND DREDGING-PLUS DEME CONCESSIONS CONSTRUCTION MULTITECHNICS REAL ESTATE RECLAMATION DEVELOPMENT

MARINE & OFFSHORE SOLUTIONS ELECTRO

BOND LAMINATED STRUCTURES/TIMBER HVAC CONSTRUCTION

ENVIRONMENTAL SOLUTIONS INTERNATIONAL RAIL INFRA & UTILITY NETWORKS

CONSTRUCTION SITE ASSISTANCE

FLUVIAL INFRA 3 STORES & MARINE MARINE SOLUTIONS SOLUTIONS

34

Annual report 2017 Operational Chart CFE HOLDING March 2018 – main entities

REAL ESTATE DREDGING, ENVIRONMENTAL & MARINE ENGINEERING CFE CONTRACTING DEVELOPMENT

DREDGING & LAND DREDGING-PLUS DEME CONCESSIONS CONSTRUCTION MULTITECHNICS REAL ESTATE RECLAMATION DEVELOPMENT

MARINE & OFFSHORE SOLUTIONS ELECTRO

BOND LAMINATED STRUCTURES/TIMBER HVAC CONSTRUCTION

ENVIRONMENTAL SOLUTIONS INTERNATIONAL RAIL INFRA & UTILITY NETWORKS

CONSTRUCTION SITE ASSISTANCE

FLUVIAL INFRA 3 STORES & MARINE MARINE SOLUTIONS SOLUTIONS

35

Annual report 2017 Dredging Environment,

2017, once again a New Lock Terneuzen and Blankenburg have gained from projects in Belgium tunnel, we can optimally exploit the and Europe. good year synergies in our activities within the In the dredging market, activities are DEME Group. Projects in the Benelux still dominated by the Tuas Terminal home market are important for the DEME had again a very good year Phase 1 mega project in Singapore. further development of our global in 2017. The offshore wind market A new contract was secured by DIAP operations. In the meantime DIMCO, and infra marine solutions were (Dredging International Asia Pacific) together with its partners, are particularly strong performers with for Ayer Merbau Reclamation Phase preparing the works for the massive our subsidiaries GeoSea, Tideway 2, which is another addition to the Fehmarnbelt project including a and DEME Infra Marine Contractors land surface area of Jurong Island tunnel of 18 km between Germany (DIMCO), while the other activities on which one of the world’s largest and Denmark. (dredging, environment, oil & gas, oil refining and petrochemical hubs resources) performed well, taking GeoSea expanded its global footprint is being built as part of Singapore’s into account the challenging market to Asia. In a unique joint venture national development. In the Middle conditions in these sectors in 2017. partnership with COSCO – CDNE East, DEME will execute dredging Thanks to our multi-disciplinary, (COSCO DEME New Energies), the works for the Old Port Redevelopment innovative approach and a broad first offshore wind farm is being Project in Qatar. A high level of range of activities we were able to realised off China’s east coast. We activity was maintained in Africa, keep our results at a healthy level. also entered into a Cooperation Europe, India and Latin America. A It has been an exceptionally busy Agreement with CSBC Corporation major contract was secured in Latin year for DEME’s infra marine to develop offshore wind projects in America for the deepening and solutions provider DIMCO, with three Taiwan. As a pioneering company in maintenance dredging of the Canal prestigious contracts awarded for offshore renewable energy, this is an Martín García, located between major infrastructure projects in the excellent opportunity for exporting Uruguay and Argentina. In Belgium, Netherlands. With the RijnlandRoute, the experience and knowledge we DEME was awarded the contract

36

Annual report 2017 Environment, Offshore and Infra

for Elia’s Modular Offshore Grid in programme means that DEME will in 2018 in search of additional staff the North Sea, including the supply, operate the youngest, most modern and crew in different fields of activity. installation and maintenance of the and versatile fleet in the dredging, We are proud of last year’s submarine power cables. offshore renewables and oil & gas achievements. But DEME is not industry. DEME seized the opportunity Against the background of a growing resting on its laurels. In 2018 we will when steel prices were favourable population and an increasing remain focused, we will pioneer and and shipyards had ample capacity, scarcity of resources, DEME’s marine innovate, and continue to look to the ensuring its investment in a new fleet harvesting specialist Global Sea future to make sure we are fully ready was made at precisely the right time. Mineral Resources (GSR) is developing for developments to come. breakthrough, deep sea mining technologies. The so-called tracked Outlook soil testing device ‘Patania’ was ALAIN BERNARD successfully tested at a water depth DEME NV of 4,500 m in the Pacific Ocean. The Looking ahead, we are well positioned ‘Patania’ serves as a testing vehicle for a strong 2018. The year got off to that will lead to the development a good start with important contract of a larger tracked nodule collector, awards in several different sectors expected to be ready in 2019. With and areas. Major projects are starting this pioneering vehicle, the actual such as the Hornsea Project One harvesting of the nodules can begin. offshore wind farm in the UK, the New Lock Terneuzen and Blankenburg The fleet investment programme will Tunnel in the Netherlands. The continue this year, with the offshore multitude of projects led to the installation vessel ‘Apollo’ and cable launch of a big recruitment campaign laying vessel ‘Living Stone’ joining the fleet. This ambitious fleet investment

37

Annual report 2017 Dredging, Environment, Offshore and Infra Management team DEME

PIERRE CATTEAU AREA DIRECTOR BERNARD PAQUOT MEDITERRANEAN, WIM BIESEMANS HANS CASIER AREA DIRECTOR MIDDLE SOUTH AND MIDDLE MANAGING DIRECTOR HUMAN RESOURCES EAST AMERICAS DEME CONCESSIONS MANAGER

STEVEN POPPE ERIC TANCRÉ PHILIP HERMANS ELS VERBRAECKEN TOM LENAERTS AREA DIRECTOR AFRICA AREA DIRECTOR AREA DIRECTOR ASIA, CHIEF FINANCIAL OFFICER CHIEF LEGAL OFFICER NORTH EUROPE OCEANIA AND NORTH AMERICA GENERAL MANAGER DREDGING INTERNATIONAL

38

Annual report 2017 DIRK POPPE BART VERBOOMEN AREA DIRECTOR MANAGER EASTERN EUROPE AND TECHNICAL DEPARTMENT LUC VANDENBULCKE RUSSIA HUGO BOUVY LUCAS BOLS GENERAL MANAGER DEPUTY CHIEF OPERATING MANAGING DIRECTOR GENERAL MANAGER GENERAL MANAGER BAGGERWERKEN DECLOEDT OFFICER ECOTERRES HOLDING TIDEWAY TIDEWAY & ZN. MANAGING DIRECTOR GEOSEA

ALAIN BERNARD CHRISTEL PIERRE POTVLIEGE MARTIN OCKIER* THEO VAN DE DIRECTOR GOETSCHALCKX AREA DIRECTOR INDIAN AREA DIRECTOR BENELUX KERCKHOVE CHIEF EXECUTIVE OFFICER SECRETARY TO THE SUBCONTINENT CHIEF OPERATING OFFICER MANAGEMENT TEAM

(*) It is with deep regret that we announce the death of our friend and colleague Martin Ockier, Area Director Benelux, who sadly passed away on March 5, 2018. Martin’s career with DEME spanned more than 30 years. Given his vast experience and wisdom, Martin became a beacon, guide, mentor and coach for many of us within DEME, the management team, the Area Benelux and DIMCO. His entrepreneurship, leadership, technical and strategic mastery and social ingenuity will 39 be truly missed. Annual report 2017 Dredging, Environment, Offshore and Infra

Dredging Dredging and land reclamation

Benelux

In Belgium DEME continued a number of long-term maintenance dredging contracts on main waterways and the North Sea. Early 2017 a new four-year contract has been awarded for the maintenance dredging and treatment of contaminated sediments on In October DEME deployed the canal Ghent-Terneuzen. DEME executed the newest dual fuel sand suppletion works in Bredene to restore hopper ‘Minerva’ for the beach after a severe winter storm. In beach nourishment works October DEME deployed the newest dual in Nieuwpoort. fuel hopper ‘Minerva’ for beach nourishment the Netherlands, the River Maas deepening works in Nieuwpoort. DEME also executed and widening and the development of dredging, trenching and backfilling works Kooyhaven at the port of Den Helder. for the 309 MW Rentel offshore wind farm, located in the Belgian North Sea. In the Netherlands de Vries & van de Wiel Northern Europe is working alongside DIMCO in a weir renovation on the rivers Nederrijn and Lek. In France SDI secured the contract for the Other projects included a maintenance maintenance dredging at the ports of dredging programme for rivers in the West of Boulogne-sur-Mer and Calais, the Gironde and the access channel to the port of Gravelines. Early 2017 SDI completed the deepening works on the Seine in the Courval- Duclair section. As part of a joint venture, SDI is involved in the construction of the new heavy loads terminal in the port of Brest. In Germany DEME’s German subsidiary, Nordsee Nassbagger- und Tiefbau (Nordsee), has acquired the maintenance dredging contract on the River Elbe. Nordsee is also executing the two-year maintenance dredging contract on the River Weser. In October 2017 Nordsee successfully completed the dredging and land reclamation works for the expansion of the Europakai in Cuxhaven. As part of the Dawlish Warren Beach Management Scheme, DEME’s UK subsidiary NewWaves Solutions executed dredging and beach nourishment works in June and July 2017. Capital dredging works were carried out on the approach channel and inner harbor at Portsmouth. NewWaves Solutions was awarded a contract for the deepening of the access channel and basin

41

Annual report 2017 Dredging, Environment, Offshore and Infra Fleet investment program

DEME’s fleet investment program is focused construction of the 44,180 kW cutter suction on further increasing efficiency, both in dredger (CSD) ‘Spartacus’. terms of productivity and environmental The cable laying and multipurpose vessel performance. The dual fuel trailing suction ‘Living Stone’ and jack-up vessel ‘Apollo’ hopper dredgers ‘Minerva’ and ‘Scheldt River’ will join the fleet in 2018. Another giant joined the fleet, being the first dredgers in DEME is investing in, the ‘Orion’, will largely the world equipped with dual fuel engines serve the offshore wind market. The 216.5 m and capable of operating in full LNG mode. long offshore construction vessel features With the 15,000 m³ ‘Bonny River’, DEME a crane with an unseen lifting capacity of is investing in a new generation of 5,000 tonnes. trailing suction hopper dredgers, which The 4,000-tonnes crane vessel ‘Gulliver’, due is trendsetting in terms of coastal to be operated by Scaldis, is set to enter protection and for dredging hard soils. service in 2018. In September 2017 the first steel cutting ceremony marked the start of the

at Able Seaton Port. A contract was secured dredging project started in the Port of for capital dredging works on the access Naples. channel to the port and the maintenance In Turkey DEME was awarded a contract dredging contract for the ports of Harwich to dredge the foundation pits for the new and Felixstowe. Canakkale Bridge, the largest suspension bridge in the world. In Algeria DEME will Mediterranean dredge a trench and carry out the backfilling for the water intake of a new power plant, close to the port of Mostaganem. Following on from several successful projects for the Egyptian Navy in Alexandria, DI was awarded a contract to dredge the Eastern Europe access channel and new quay wall for the navy base. The project for the Combined DEME had its first project in Ukraine when it Cycle Power Project in Burullus, Egypt was carried out maintenance works for the Port in full swing in 2017, including more than of Yuzhny. Completed in November 2017, 600,000 m³ of dredging and backfilling, as the project involved dredging a volume of well as pipe laying. 500,000 m³. In Spain DEME carried out a contract for dredging works in the Port of Barcelona for the construction of a new quay wall. In Italy Asia-Pacific DEME was again busy in the port of Livorno, where works were completed at the end of The contours of the future container terminal the year. Additionally, in Italy, a maintenance at the Tuas Terminal Phase 1 mega port project in Singapore are clearly taking

42

Annual report 2017 shape, with 143 of 222 caissons placed in land reclamation works on the project for December 2017 to form the future quay nearly three years. Building on a strong track wall, and 33.7 million m3 of the platform record in the Middle East, and the successful reclaimed, out of a total of 70 million m3. early delivery of Hamad Port, MEDCO was awarded the contract for the Old Doha In August 2017, DIAP has been awarded a Port Redevelopment project in Qatar in major Design and Build contract for 35 ha August 2017. of land reclamation that will further extend Jurong Island. Works at the Jurong Island The vast La Mer Jumeirah Open Beach Westward Extension project in Singapore, project in Dubai was officially handed where 38 million m3 is being reclaimed, are over in 2017. DEME reclaimed an area of progressing according to schedule and are 2.9 million m², mainly located along the expected to be completed in 2018. Jumeirah beachfront. The Lower Ok Tedi project in Papua New Guinea celebrated its 20th year of operations Latin America in 2017. The contract includes the removal of potentially polluted sediments from the Works at the Jurong Island Lower Ok Tedi River system. DEME again returned to the historic Panama Westward Extension Canal project in 2017. After the successful project in Singapore, completion of the further widening and where 38 million m3 is Middle East deepening of the Pacific Access Channel being reclaimed, are in 2016, DEME was also awarded a similar progressing according to schedule. contract for the Atlantic Access Channel. In September 2017 Hamad Port in Qatar was officially inaugurated. The Middle East In Brazil Dragabras completed its first year Dredging Company (MEDCO), DEME’s carrying out a maintenance dredging project subsidiary in Qatar, carried out dredging and on the access channel and inner harbour

43

Annual report 2017 DEME further reinforced Dredging, its footprint on the African Environment, continent with a first Offshore and project in Sierra Leone. Infra

In Spain DEME carried out a contract for dredging works in the Port of Barcelona for the construction of a new quay wall. of the Port of Santos. Following the first Elegushi Island in the Lagos Lagoon and will project, the client renewed the maintenance continue in 2018. contract for another year. In addition, DEME As part of a long-term contract executed several projects for private clients maintenance dredging works were carried in the Sepetiba Bay area. DEME was awarded out in the port of Conakry. Early 2017 a major, five-year contract in a joint venture dredging works were completed at the for the deepening and maintenance of the port of Kamsar as part of the expansion Canal Martín García. of the mineral wharf owned by the Compagnie des Bauxites de Guinée. In Africa the same port a maintenance dredging campaign was carried out at the Kamsar Container Facilities for the Guinea Alumina DEME further reinforced its footprint on Corporation. the African continent with a first project in Sierra Leone. A consortium including DEME In April 2017, DEME has been awarded is working on the extension of the Freetown a contract in Ghana for the Tema Port Terminal in Sierra Leone. expansion project. Also in Ghana dredging works were executed for the water inlet of In Nigeria DEME continued the maintenance the Kpone Power Plant in Ghana. dredging works to ensure the channel to the LNG terminal in Bonny and the ports of A five-year maintenance dredging contract Onne and Port Harcourt remains accessible. has been awarded by Angola LNG to a joint After the successful completion of phase 3 venture including DEME to maintain a safe of land reclamation works at Eko Atlantic, navigation to the terminal in the Port of DEME is set to execute phase 4 when works Soyo. will resume on the site. In April the capital Early 2017, ‘Orwell’ carried out a dredging works at the Lagos Deep Offshore maintenance dredging campaign on the Base (LADOL) were completed. Dredging Congo River to guarantee a 26 feet draught and land reclamation works started on and a safe access to the ports of Boma and Matadi.

44

Annual report 2017 The Lower Ok Tedi project in Papua New Guinea celebrated its 20th year of operations in 2017.

In Benin DEME was awarded a contract the northeast coast of India, were completed for coastal protection works at the by February. Cotonou shoreline. Works will include In Nigeria DEME continued beach nourishment with a total volume of the maintenance dredging 1,5 million m³ as well as revetment works Indian Ocean works. and groyne construction. The project started in September 2017 and will continue for the In La Réunion works continued at pace for whole of 2018. the ‘Nouvelle Route du Littoral’. SDI executes In 2017 DEME also returned to Liberia for the dredging, gravel bed installation and maintenance dredging works in the Freeport backfilling works of 48 gravity-based of Monrovia. foundations for the 5,400 m viaduct. Three reclamation projects were executed at Embboodhoo Lagoon, Rah Falhu Indian Subcontinent Huraa and Hulhumalé in the Maldives. In June 2017 DEME successfully completed the capital dredging works at Port Louis for A contract has been awarded for the the extension of the Mauritius Container dredging, reclamation and soil improvement Terminal. works for the Seabird Phase II project in a joint venture. These works are part of a major expansion project located near Karwar, on the west coast of the country. End 2017, ISD also started with the maintenance dredging of the approach channel, turning circle and berth basin at the civil port in Karwar. The annual pre-monsoon maintenance dredging works in the access channel and turning basin of Dhamra Port, on

45

Annual report 2017 Dredging, Environment, Offshore and Infra

Dredging-Plus Marine and offshore solutions

The company G-tec owns the unique offshore geotechnical investigation vessel ‘Omalius’.

engineering services. The other shares are owned by SRIW (Sociéte Régionale d’Investissement de Wallonie). The company owns the unique offshore geotechnical investigation vessel ‘Omalius’. The company operates in the markets of offshore renewables, oil & gas, civil works and offshore mining. In the UK GeoSea successfully completed the foundation installation at the Race Bank and Galloper offshore wind farms. At the end of 2017 GeoSea started the mobilisation GeoSea for offshore construction at Hornsea Project One, where 174 monopile foundations will be installed. In August 2017 GeoSea completed the acquisition of the Danish company A2SEA, GeoSea has been awarded a contract for the a market leader in the transport and transportation and installation of 90 wind installation of offshore wind turbines. turbine generators for the 860 MW Triton The activities of A2SEA are a strong and Knoll Offshore Wind Farm. An agreement complementary fit to the activities of was also signed with the Moray East GeoSea. While GeoSea is mainly specialised Offshore Wind Farm for ca. 100 wind turbine in foundation works and EPCI contracts, foundations and 3 offshore substation A2SEA is a pioneer in installing turbines and platform foundations, and the transport their maintenance. and installation of 3 offshore substation platforms. GeoSea also acquired the majority of the shares (72,5%) of G-tec, a Belgium In April 2017 installation works started at based contractor specialised in offshore the Merkur offshore wind farm in Germany. geotechnical and geological site GeoSea is executing a full Balance of investigations, marine geophysical and Plant EPCI contract including an offshore environmental surveys and deep-sea substation.

47

Annual report 2017 Dredging-Plus

In April 2017 installation works started at the Merkur offshore wind farm in Germany.

GeoSea will provide the design, of the project includes the installation manufacturing and installation of 71 turbine of 60 turbines on the foundations at the foundations for the 497 MW Hohe See 400 MW wind farm. offshore wind farm. GeoSea will also provide Geosea entered into a Cooperation the design, fabrication and installation of Agreement for the Taiwanese offshore wind foundations at the 112 MW Albatros offshore market with CSBC Corporation, Taiwan’s wind farm. largest shipyard. Together, GeoSea and CSBC In July 2017 construction started at the will now form a Taiwanese joint venture 309 MW Rentel offshore wind farm in the that will undertake the transportation and Belgian North Sea. The last foundation was installation of the foundations and wind hammered in September 2017, followed by turbines required for these wind farms. the installation of the offshore substation Subject to regulatory approval procedures, foundation. the joint venture will be incorporated in Taipei by the middle of 2018, and will Monopile installation kicked off at the start bidding for the upcoming offshore 406,7 MW Horns Rev 3 wind farm in renewables developments immediately Denmark. thereafter. DEME and COSCO Shipping are partnering In 2017 GeoSea Maintenance reinforced its in a joint venture to develop offshore wind market leading position in the maintenance energy in China. With the extensive know- of +5 MW wind turbines. Major component how in developing, building and maintaining exchange campaigns were carried out for offshore wind farms, DEME can support different customers. COSCO Shipping’s offshore wind ambitions to become a significant player in this market In Ghana GeoSea Civils operated as a segment. In December 2017 the first turbine subcontractor at the Kpone Independent has been installed at the Binhai H2 wind Power Plant project, providing engineering farm for CDNE, the joint venture between and advice for the jacking works. In the COSCO and GeoSea in China. The scope UK GeoSea has been appointed as a

48

Annual report 2017 A contract was secured for Elia’s Modular Offshore Grid in the North Sea, including the supply, installation and maintenance of the submarine power cables.

subcontractor for the Hinkley Point shaft A contract was secured for Elia’s Modular construction. Offshore Grid in the North Sea, including the supply, installation and maintenance of the In 2017 EverSea secured a contract for the submarine power cables. decommissioning of seven satellite platforms in the North Sea. At the Rentel offshore wind farm Tideway installed all inter-array cables and the export cable. Tideway Tideway was awarded all inter-array cable installation works for the Merkur offshore Tideway has been awarded, in a joint wind farm. Tideway has been awarded all venture, all pre-trenching and backfilling cable installation, pre-trenching, backfilling landfall works for the Saudi Aramco Hasbah and rock placement works for the world’s Offshore gas facilities. A contract was largest offshore wind farm Hornsea One. secured in Bangladesh for the Moheshkali Floating LNG Terminal project, including the Rock placement for the cable protection at dredging and pre-trenching works for the the Caithness-Moray power link project in access channel to enable the client’s pipe lay Scotland started in 2017 and will continue in barge to perform the shore pull operation 2018. of a pipeline. Another contract was secured in the gas market for pre-trenching and backfilling works at the Leviathan project DEME Blue Energy (DBE) offshore Israel. DBE plays a leading role in the development In Egypt Tideway successfully completed the of blue energy, which mainly concerns tidal works at the Burullus power plant, including and wave energy projects. To further this the installation of a double HDPE pipe and ambition DEME Concessions acquired a water intake structure between the gas-fired minority interest in the Scottish development power station and the shore.

49

Annual report 2017 Dredging-Plus MeyGen, located at Pentland Firth in Scotland, is seen as the reference project for the global blue energy industry.

The ‘CTOW Eli’, which entered service in November 2017, joined the Bonny fleet. company Tidal Power Scotland Limited pull ASD tugs which support Nigeria LNG (TPSL), which controls the MeyGen project, Ltd (NLNG). Meanwhile in Onne, CTOW the world’s first tidal stream turbine array continued to provide harbour towage power station connected to the electricity services to the port’s container terminal. grid. MeyGen, located at Pentland Firth in After the award of a second contract by Scotland, is seen as the reference project for NLNG, the Bonny fleet was joined by a Stan the global blue energy industry. At the end Tender 1905 pilot launch - the ‘CTOW Eli’ - of 2016, DEME’s subsidiary GeoSea installed which entered service in November 2017. In the four gravity-based foundations for Phase 2018, two additional newbuild tugs will join 1A, (each of 1.5 MW), and these are now the vessels in Bonny. successfully operational. Late last year, the UK Government announced the cancellation of a separate Scaldis support mechanism for wave and tidal energy projects. This has led to the In the oil & gas market Scaldis installed the postponement of the financial close for unmanned gas platform L13-FI for NAM MeyGen Phase 1B, originally foreseen in 2017. and carried out the decommissioning of the In addition to the participation in TPSL, Horne & Wren platform and three Perenco DEME Blue Energy is involved in two other gas platforms. In the offshore renewables tidal energy developments – the West Islay segment Scaldis was contracted to transport Tidal Energy Park in Scotland and Fair Head and install the Rampion substation for EON. in Northern Ireland. WPD contracted Scaldis to install the first bolted substation for the Nordergründe offshore wind farm. CTOW

At Bonny Island LNG terminal, CTOW was awarded an extension of a contract to operate two newbuild 60-tonne bollard

50

Annual report 2017 An impressive project executed by DIMCO: construction of a rail tunnel and underground station for Spoor & Stad Delft.

Infra marine solutions

DEME Infra Marine Contractors (DIMCO)

DIMCO secured the contract for the RijnlandRoute. The COMOL5 joint venture, including DIMCO, will be responsible for the reconstruction of the Leiden West motorway junction and the construction of the 4 km new road N434, including a 2.2 km bored tunnel. The Flemish-Dutch Scheldt Commission awarded the Sassevaart joint venture, including DIMCO, the contract for constructing the New Lock Terneuzen. The joint venture will be responsible for the design, construction as well as the maintenance of the New Lock for a period of two years. Rijkswaterstaat awarded the project A24 Blankenburgverbinding to BAAK Blankenburg-Verbinding, a consortium including DEME. The project consists of the design, build, financing and maintenance for a period of 20 years of the existing and new infrastructure, including an immersed tunnel. DIMCO successfully concluded the works at the Offshore Terminal in Rotterdam and continued the upgrading works of the lock and weir complex on the river Lek.

51

Annual report 2017 Dredging-Plus

The ‘Patania’ was successfully tested on land in to make sure it was ready for its first expedition offshore in May.

It was a busy year for Fluvial and marine DBM with among others the major contract to supply gravel for the resources new IJmuiden Lock in Amsterdam.

DEME Building Materials Global Sea Mineral (DBM) Resources (GSR)

It was a busy year for DBM as the European GSR is well on the way to developing the economy showed a definite improvement world’s first tracked nodule collector. and the construction industry picked up The so-called tracked soil-testing device further in the UK, France, Germany, Belgium ‘Patania’ was successfully tested on land and the Netherlands. The aggregates’ facility in to make sure it was ready for its first reopened in Amsterdam and DBM added expedition offshore in May. The ‘Patania’ a third vessel to its fleet. A major contract was then shipped off for a 45-day expedition was awarded to supply gravel for the new in the Central Pacific. At the same time, IJmuiden Lock in Amsterdam. the nodule collector ‘Patania 2’ is under An increasing demand for marine development. aggregates is highlighted by the addition of ‘Mellina’ to the fleet, a standard hopper converted into a dry-discharging aggregate dredger, with a capacity of 5,000 tonnes. Since joining DBM’s other gravel trailers, ‘Charlemagne’ and ‘Victor Horta’, the vessel has not stopped work and has a healthy order book.

52

Annual report 2017 After a three-year project DEC, with a joint venture partner, cleaned up nine former Eandis gas sites in Environmental solutions Flanders.

DEME Environmental Remediation work continued on a former refinery site located at Valløy near Tønsberg Contractors (DEC) – in Norway. de Vries & van de Wiel In the UK Phase 3 of the remediation project of a 100 ha coking site near Chesterfield was - Ecoterres completed in mid-2017.

After a three-year project DEC, with a joint DEC was awarded a contract to dredge an venture partner, cleaned up nine former outlet and to treat the dredged material Eandis gas sites in Flanders. A major project, using a soil washing installation at the ILVA which highlights DEME’s proactive way steel plant in Taranto, Italy. of tackling brownfield sites, is Blue Gate De Vries & van de Wiel was involved in several Antwerp. DEC is involved to remediate and major remediation projects in Amsterdam, redevelop a 63 ha site into a top location for Haarlem, Den Helder and their surrounding eco-innovation. areas. DEC will also remediate the former Ford Ecoterres carried out depollution works at site in Genk, the former premises of UCB sites in Belgium and France. Ecoterres’ soil and Taminco in Ghent and a brownfield site and sediment recycling centres performed from Bayer in the port of Ghent. At a nearby well. More than 250,000 tonnes of polluted brownfield site in the port, DEC worked soils and sediments have been treated on the remediation of a former gas works in the facilities in Belgium and about site. Completed in 2017, the site will now be 150,000 tonnes in France. used to establish a new chemical cluster, ‘Dockland’. Purazur built a new water treatment installation for Indaver, including the design, The first phase of the prestigious ‘New construction and commissioning of the new Docks’ project in Ghent has been facility. Purazur is also building a new water successfully executed. The former docks treatment installation for the chemical were bought by project developers and company Borealis. DEC is working in partnership with them to remediate the ground to the highest Remediation work environmental standards. continued on a former refinery site located at DEC has a 15-year contract for the AMORAS Valløy near Tønsberg in facilities in Antwerp. This is a major design, Norway. construction and operation contract for sediment treatment and storage in the port of Antwerp.

53

Annual report 2017 Dredging, Environment, Offshore and Infra

DEME Concessions The project ‘A24 Blankenburg Tunnel’ comprises the design, build, finance, management and maintenance for a period of 20 years of the existing and new infrastructure.

DEME Concessions acquired a minority interest in the Scottish development company Tidal Power Scotland Limited (TPSL). Together with Scottish Enterprise, TPSL controls the MeyGen project, the world’s first tidal stream turbine array power station connected to the electricity grid. DEME and the MeyGen partners are hoping to get financial close for Phase 1B in 2018. Besides the participation in TPSL, DEME is DEME Concessions has a 12.5% share in involved in DEME Blue Energy (70% DEME the 396 MW Merkur offshore wind farm Concessions - 30% ParticipatieMaatschappij in Germany. Close to EUR 500 million in Vlaanderen) and in cooperation with equity was provided by a consortium of Nuhma, it is also a partner (50% - 50%) in five partners, including DEME Concessions. BluePower, another tidal energy development The Rentel project will be the fifth offshore company. DEME takes part in two other tidal wind project in the Belgian North Sea. The energy developments – the West Islay Tidal total investment is EUR 1.1 billion. Together Energy Park in Scotland (30 MW) and Fair with the other shareholders of Otary, DEME Head in Northern Ireland (100 MW). holds a participation in the concessions for the Seastar (246 MW) and Mermaid Rijkswaterstaat has awarded the (266 MW) offshore wind farms in Belgium. EUR 1 billion, Public-Private Partnership The French energy regulator pre-selected (PPP) project ‘A24 Blankenburg Tunnel’ to DEME Concessions, amongst others, to the BAAK Consortium, which includes DEME. potentially develop an offshore wind farm The project comprises the design, build, with a capacity of 750 MW off Dunkirk. The finance, management and maintenance for tender is expected to take place in the first a period of 20 years of the existing and new half of 2018. infrastructure.

55

Annual report 2017 Contracting

2017, an important People are at the benefit of the end customer. Sustainable development will quickly stage on our Ambition the heart of become a major issue and at the same time a catalyst for innovation in 2020 journey our operational all our lines of business, with profound excellence, innovation changes across the whole chain of Our figures saw substantial progress design, logistics and production. We in 2017, thanks to the outstanding and partnerships will also investigate new forms of work done by all the teams of the collaboration and partnerships so division and the progress made in Emphasis this year was on that we are better equipped to meet the implementation of the actions operational excellence, with the challenges of a world in perpetual set out in our strategic plan. We careful risk management, more change. also benefited from fairly favourable thoroughgoing upstream studies Our prime focus of attention, market conditions, with a satisfactory and methods, and roll-out of the however, will always be on the good volume of business on our traditional Lean approach on a large number of management of our main capital markets in Belgium, Luxembourg projects. and Poland, the latter of which even asset, our men and women who by saw an amazing level of growth. In Operational excellence will remain a their competence, daily involvement Tunisia, however, we faced difficulties key factor in the professionalization and team spirit offer innovative presented by the country’s economic of our activities in the years to come, solutions to our customers in keeping situation, which had a significant but will also be accompanied by with our commitments. impact on our results. greater innovation efforts. Emphasis will be on digitalization, which will ultimately revolutionize the way in which all the parties involved in a project work together and the way the project is managed for

56

Annual report 2017 A year marked The combination with the Van In general, our lines of business are Laere group will enable us to further evolving more and more quickly, by business consolidate our presence on the and the new technologies will play Belgian construction market. a decisive role in the near future. combinations Although the Van Laere group However, in view of the difficulties experienced a difficult past year, it we are encountering in workforce The integration of all our holds a real wealth of talent and best recruitment and in attracting young electrotechnical activities in the new practices, and 2018 looks to be a people to our activities, it is essential VMA cluster has already proved its year of stabilization and creation of that all parties search for new ways worth in 2017. It will be followed by valuable synergies that are perfectly to make the industry more attractive, the gradual integration of the HVAC in keeping with our Ambition 2020 and this should unquestionably be activities in that same cluster, which programme and will benefit all our one of our priorities in the coming will constitute a solid entity capable subsidiaries. years. of offering our customers a full and integrated range of multitechnics services. Positive business RAYMUND TROST CFE CONTRACTING SA The past year was also marked by the outlook acquisition of the company Coghe, whose human and technical skills 2018 looks to be a positive year with have come to strengthen our Rail a growing order book for most of the activity, which is also in the process division’s activities. The investment of being integrated in a cluster climate in the public and private called MOBIX, a partner of choice sectors is expected to remain stable capable of offering all-in solutions in in our traditional markets in the the transport, utilities and telecom coming years. segments.

57

Annual report 2017 Contracting

MANU COPPENS FRÉDÉRIC CLAES RAYMUND TROST MANAGING DIRECTOR MANAGING DIRECTOR CEO CFE CONTRACTING SA GROUP VAN LAERE SA CFE BÂTIMENT BRABANT WALLONIE SA

58

Annual report 2017 FABIEN DE JONGE YVES WEYTS CHIEF FINANCIAL OFFICER MANAGING DIRECTOR CFE OF THE CFE GROUP BOUW VLAANDEREN SA AND GENERAL MANAGER OF THE MULTITECHNICS SEGMENT AND RAIL INFRA & UTILITY NETWORKS Executive Committee

59

Annual report 2017 Contracting

Van Laere has joined CFE

The Van Laere group has been part of Ackermans & van Haaren since the late 1980s. It joined the ranks of CFE in December 2017. This is excellent news, as this combination strengthens the position of CFE on the Belgian construction market and already proves fruitful in terms of new complementarities and opportunities for all the entities of the Contracting division.

The Van Laere group: three sector and in the Walloon and Brussels regions of Belgium. successful companies - Arthur Vandendorpe NV, which specializes Based in Zwijndrecht, the Van Laere group in the restoration of buildings and is active enjoys an excellent reputation on the Belgian in East and West Flanders, as well as in construction market. Its history began in Antwerp and Brussels. 1938, and over the years its activities have developed and became divided over three Importance of the human companies: aspect - Algemene Aannemingen Van Laere NV which constructs buildings worth upwards Like CFE, Van Laere attaches the utmost of seven million euros, as well as civil importance to the human aspect. The engineering projects in the public and small company of the nineteen thirties that private sectors; the firm operates primarily has developed into a business employing in Flanders and in Brussels, and sometimes 450 people at its three entities has always also in the north of France and in the managed to preserve the family spirit, as is Netherlands. testified by the importance that it attaches to training and its determination to foster - Groupe Thiran SA which puts up buildings cohesion and collaboration between all worth approximately between two and employees. fifteen million euros, mainly in the public

60

Annual report 2017 The Herman Teirlinck passive office building, designed for the Flemish Government in Brussels and delivered in the summer of 2017.

A fine diversity of projects Another iconic project: the underground car parks of the “Gedempte Zuiderdokken” in The Van Laere group builds residential Antwerp. properties as well as offices, schools, Until the 1960s, the Kooldok, Steendok and cinemas, and civil engineering projects Schippersdok (which together make up the such as the new lock under construction in Zuiderdokken, or South Docks) were used Terneuzen. as docking places by the boatmen. In 1969, One of the latest projects was the Herman those docks were filled in, and since then Teirlinck passive office building, designed the area between the Flemish and Walloon for the Flemish Government in Brussels and Quays (Vlaamse en Waalse Kaai) has been delivered in the summer of 2017. The building, used as car park and fairground. This area situated on the Tour & Taxis site, comprises will now be transformed into a large urban offices, reception rooms, auditoriums, park, where Van Laere will build two large information and exhibition areas, a lounge, four-storey underground car parks for a restaurant, and a two-storey underground Q-Park (car park operator for the City of The group Van Laere builds car park. Designed by the architect Antwerp), with parking space for a total of also civil engineering Neutelings Riedijk, the Herman Teirlinck 2,000 vehicles. The first excavation works projects such as the A11 project begins next to the Brussels Canal in have revealed the old quay walls, which will motorway between Bruges the shape of a low horizontal building and be preserved and remain visible in the final and Westkapelle. ends on a 60 metre-high tower block. project.

61

Annual report 2017 The kindergarten of Contracting the Lycée Français du Luxembourg, which was finished in record time.

Construction CFE Contracting was in good health in 2017, with buoyant activity in Belgium and internationally (Poland and Luxembourg) and a net growing order book. Additionally, the division, reporting a volume of business in 2017 in excess of € 700 million, acquired the Van Laere group at the year-end.

Construction New low-energy headquarters for BENELMAT

BENELMAT moved into its new premises in Gembloux in 2017, allowing it to optimize the streamlining of its hardware resources. This puts the company in the best position to carry out its mission of providing technical assistance to the operational teams in the choice, study and supply of the equipment needed on the construction projects. What is more, BENELMAT initiated a series of works at its new establishment aimed at optimizing its energy management. Those amenities won so much admiration from the Work on the AZ Sint- energy consultants of the Walloon Regional Maarten hospital in Mechelen progressed Agency that they wanted to organize a well, with the provisional seminar at BENELMAT for heating experts. A acceptance of the fine endorsement! structural work for the first lot. Buildings, industrial for the first lot. In Brussels, the prestigious Gare Maritime project on the Tour & Taxis constructions and site for Extensa is in progress, along with the renovation design of the interior. MBG has also been entrusted by the City of Brussels with the Design & Build of a Dutch-speaking school Belgium and crèche in Laken. MBG highly appreciated for the quality Flanders of its work In Bruges, MBG, which presented a project A highly satisfactory 2017 for MBG and for the development of the new Trade Fair several fine projects in the pipeline and Congress Venue together with the architects Eduardo Souto de Moura de Porto The integration of Atro Bouw and MBG and the Belgian META, was selected as sole was finalized in May 2017 under the name ‘preferred bidder’. It was awarded this title MBG. The new entity reported a very good in December 2017, and the final decision is year. The fifteen schools of the ‘Schools expected in the spring of 2018. of Tomorrow’ programme were delivered and are now under maintenance for a MBG distinguished itself in many other ways 30-year period. As from March 2018, MBG during the past year. The company won the will start up a new ‘Schools of Tomorrow’ CFE Best Practice Award in the category project worth more than € 5 million in ‘Office’ for the BlueBeam software that is Gierle, involving the construction of a new used as a user-friendly digital alternative to wing of the municipal school as well as BIM. It was also presented with the Safety refurbishment and conversion works. Award by its customer Exxon Mobile for its outstanding site safety performance, and Work on the AZ Sint-Maarten hospital the Fritz Höher 2017 prize for the splendid in Mechelen progressed well, with the masonry work on residential tower blocks 5 provisional acceptance of the structural work and 6 on the Kattendijkdok in Antwerp.

63

Annual report 2017 Contracting

Inaugurated in december 2017, the new Chirec Delta hospital in Brussels regroups, on a ultra modern site, the former hospitals of Edith Cavell and Parc Léopold.

Brussels and Wallonia as roadways and greenery: a large-scale project perfectly managed according to the Lean Management approach. Other The CFE group leads the Brussels projects in progress include the construction construction market of an underground depot for the Brussels public transport company STIB at Erasme, In Brussels and in Brabant, the group’s the extension of the Bordet hospital in construction activities are presently divided Anderlecht, the Agora project in Louvain- between two entities: BPC, which emerged la-Neuve, and the second phase of the from the amalgamation of CFE Brabant Papeteries de Genval (Genval Paper Mill) site. and BPC Brabant, and is now market leader BPC also launched a dozen new projects, on the Brussels construction market with such as the new city Hall of Etterbeek projects equally divided between the public (15,000 m2 divided over six floors) and an and private sectors, and Amart, which since office complex in Louvain-la-Neuve for the 2017 encompasses the entities Amart and China Belgium Technology Centre. This year, Leloup Entreprise Générale, and is primarily its construction activities encompassed a active on the medium-sized markets. Twice, an exceptional total of twenty-five projects, ten of which BPC Hainaut, BPC Liège and BPC Namur residential project in are worth more than € 50 million. In view Boitsfort. ensure all the building projects of CFE in the of its order book, BPC expects its volume southern part of Belgium. of business to increase in 2018, with a concomitant growth in its workforce. Numerous large projects delivered or in progress for BPC A year marked by very high order In 2017, BPC delivered the head office of intake for Amart Axa Belgium and two office buildings Amart finished several projects during converted into apartments for Atenor, next the year: Bluestone Invest, Evere Housing, to the Palais de Justice, and in December Château Ste Anne sports club, and in the large CHIREC Delta hospital (more particular Twice, an exceptional residential than 100,000 m2). The firm also continued project in Boitsfort for the property work on many other projects, such as developer Eaglestone. Several major projects the sustainable Tivoli district in Laken, are still in progress, such as a building with consisting of twelve buildings with residential student rooms for BPI, noteworthy for units, crèches and retail outlets, as well its sustainable design in cross-laminated

64

Annual report 2017 BPC Hainaut renovated the 20,000 m² car park of Charleroi Airport and built a 200 metre-long access ramp over the roads without inconveniencing passenger traffic. timber. For Amart, 2017 was marked by a the bridge at Mons railway station (architect very high order intake, including a contract Calatrava), and in the healthcare sector for the construction of a research and the large CHC Montlégia hospital in Liège, innovation centre for Deltatech in Evere of which the structural work is finished. In and several projects for Redevco, Atenor, partnership with Moury, BPC Liège is also BPI and AG Real Estate (renovation of the building the future aquatic centre of the city commercial centre City 2), Anima Care, of Eupen on the site of the old Wetslarbad among others. All of this is expected to boost swimming pool and the new swimming pool business significantly in 2018. for the city of Liège at Jonfosse. A wide diversity of projects across International Wallonia Activity in Wallonia saw a temporary Luxembourg downturn due, among other things, to the postponement to 2018 of projects in CLE maintains a high level of activity the public sector, which represent two- thirds of the business of BPC Wallonie. In Luxembourg, the year was marked by the Nevertheless, several fine projects were delivery of several major building projects, delivered or continued this year in various such as the prestigious Kons project in segments. In industrial construction, BPC Luxembourg City, which accommodates Hainaut renovated the 20,000 m² car park the head office of ING Luxembourg, for the of Charleroi Airport and built a 200 metre- investor Axa; the Aloyse Kayser school, a long access ramp over the roads without remarkable project that was completed in inconveniencing passenger traffic: the just one year for the City of Luxembourg; project was efficiently completed in four the kindergarten of the Lycée Français, months under difficult conditions, on which was also finished in record time, and an occupied site and during the holiday a residence with 63 apartments for the departure period! The year was also marked property developer CIP. Other projects are in by other major construction or renovation progress, more particularly with BPI. projects: the head office of CBC in Namur, the Médiasambre building, the head office In civil engineering, CLE started up two new of RTBF in Charleroi, the steel structure of projects: railway crossings in Schifflange and a bridge in Dudelange. The rollout of

65

Annual report 2017 CFE Polska ensures the Design & Build of the ‘Platan’ shopping centre in Zabrze.

the Lean approach in the construction MATEXI for the residential project ‘Kolska od of buildings clearly has a highly positive Nowa’ in Warsaw, of which the third phase impact, and the company, which this has been delivered, as well as Arcelor Mittal year maintained the high level of business and Coca Cola for various projects. achieved in 2016, plans to diversify its But CFE Polska also works together very activities in 2018 by stepping up synergies closely with BPI, as is evidenced by the with the other entities of CFE Contracting. residential complex ‘Bulwary Ksiazece’ in the centre of Wroclaw, of which the first phase Poland will be delivered, and the ‘Four Oceans’ project in Gdansk, which is now finished. The The theme park ‘Holiday Park Kownaty ‘ (Majaland) Solid growth and new important ‘Marina Royale’ project in Darlowo, delivered will open soon. customers for CFE Polska this year, was built for the Belgian property developer POC Partners. Several other In Poland, CFE Polska reported a further projects were delivered or are in progress, increase in revenue and margins. The such as ‘Holiday Park Kownaty’ (Majaland). company enjoys the confidence of a growing And the future looks favorable, with the size number of big international names. The of the order book and the proven loyalty international property developer NEPI of its customers opening up very good Rockcastle chose CFE Polska for the Design perspectives for CFE Polska. & Build of the ‘Platan’ shopping centre in Zabrze, in the south of the country. Work started this year. Similarly, VASTINT, the real estate division of the IKEA group, chose CFE for the construction of a prestigious residential complex in the centre of Gdansk; GOODMAN for a large logistics centre that was built this year in just eight months;

66

Annual report 2017 Laminated Timber Solutions reported solid growth in the segment of glued and cross-laminated timber solutions.

Tunisia Industrial construction and

New major projects in the public and laminated timber solutions private sectors Timber is popular in the For CTE, which has seen a solid growth in construction business contracts for deep foundations, 2017 was marked by the acquisition and start-up Groep Terryn changed its name at the of two major projects: for the Ministry beginning of 2018 in Laminated Timber of Infrastructure, the construction of a Solutions. The company reported solid motorway junction on the intersection of growth in the segment of glued and the X20 bypass and the X3 axis northwest of cross-laminated timber solutions. The new Tunis - a project comprising two tunnels and management team actively concentrated on three viaducts; and civil engineering works the development of its portfolio, particularly on four power transformers for Siemens in in the segment of schools, offices, sports Sousse, Chotrana, Radès and Ben Arous. complexes and industrial buildings. The firm CTE also worked on the construction of a contributed to various projects involving the hospital in Bizerte, an office building for use of timber, such as the Trilogiport in Liège, the real estate company Miniar, and the the STIB depot in Haren, several swimming industrial platform of Sahline (roadworks pools and sports centres, several schools in and networks). Bearing in mind the difficult Brussels, as well as the passive residential economic situation in Tunisia, caution is building Perle, built by Amart, and industrial recommended when deciding to take in new constructions in Watelle and Santele. In a orders. construction market that is increasingly resorting to timber, Groep Terryn is seeing a substantial growth in its order book across all its activities, offering a positive outlook for 2018.

67

Annual report 2017 Contracting

Multitechnics Electrotechnics works for the retirement and nursing (Van Laere) and the ‘Van Oost’ home ‘La Plaine’ in Liège, as well school (BPC). A major assignment as for the hospitals Erasme, St for Brussels Mobility was landed by Jean, Iris Sud and St Michel in the Druart, Procool and be.Maintenance 2017 saw the Brussels Region, CHC in Dinant, St in joint venture, involving the supply, formation of a VMA Elisabeth in Namur, and Jolimont installation and commissioning of in La Louvière. Other major works pressure boosting and cooling units in ‘Electrotechnics were completed or continued at the utility areas of 80 metro and pre- Cluster’ comprising the Gare du Nord railway station metro stations. in Brussels, the International Duty Although the first six months were VMA, VMA West, VMA Free offices of Brussels Airport, the often difficult for Druart, the situation new Marconi depot of STIB, and the improved as the year went on, and Vanderhoydoncks and Konrad Adenauer parliament building 2018 clearly looks promising in light in Luxembourg. In 2018, the Infra Nizet as well as several of the well-filled order book. Its segment of VMA Nizet will embark on subsidiary Procool reported a fresh international entities a project of three pumping stations in boost in revenue after a year marked the province of Ha Nam in Vietnam. by the projects of Brussels Mobility The cluster generated a As a whole, 2017 was a good year for and the Vandervalk hotel, as well substantial part of its the VMA cluster with a favourable as the installation of cold storage outlook for 2018. rooms at the new CHIREC hospital revenue in the sector of in Brussels, the installations for the health care and office Agora complex in Louvain-la-Neuve facilities HVAC for Imtech, besides other projects such as for GSK and Gaume Logistics. The Electrotechnics Buildings segment of VMA and VMA West More and more be.Maintenance continued handled the installations for AZ Delta in Roeselare, ZNA-Cadix in Antwerp productive synergies its growth and numerous retirement and nursing within the HVAC be.Maintenance, which specializes in homes. Business was particularly the maintenance and management thriving in the office facilities sector cluster and, more of technical installations, further with, among others, installations for generally, within the consolidated its position as a the passive building Herman Teirlinck major player on this market. The on the Tour & Taxis site, the Passport Contracting division synergies established with the project at Zaventem Airport, the other entities of CFE Contracting new head office of AXA, and the Van strengthened its position in several Eyck building in Ghent for Belfius. Wide diversity of projects projects. be.Maintenance saw its VMA Vanderhoydoncks worked on across Belgium for Druart activities develop in the sector of projects such as Corda Campus in and Procool health care and retirement homes, Hasselt and EnergyVille 2 for IMEC in in the public sector in Brussels and Genk, as well as for Nike in Laakdal, For Druart, the beginning of the Flanders (CPAS (Welfare Office) and Punch Powertrain in Sint-Truiden, and year was marked by the completion various municipal services, Schools Colruyt. of projects at the logistics centre of Tomorrow, etc), and also in the The ‘Automotive’ segment of the VMA of Lidl in Marche-en-Famenne and Charleroi area (Police Station, CPAS, cluster carried out major automation the ‘Rive Gauche’ Shopping Centre Intermunicipal Public Health Agency, works in the automotive industry, in Charleroi, where the firm also etc), along with other interesting such as for Audi in Brussels on the fitted out the Novotel hotel. In 2017, assignments such as for the Aspria assembly lines of the new electric Druart also carried out work on sports clubs and the Upsite complex Audi model, and for Volvo in Ghent. the urban complex ‘Regatta’ and in Brussels. The company also took its first steps the KBC bank in Antwerp, as well on the US automotive market for as installations at the Ibis hotel in Kuka and Volvo in Charleston. Wavre and the Vandervalk hotel in Liège (together with Procool), and At VMA Nizet, the Tertiary several buildings in Brussels, such as department carried out electrical the ‘Square de Meeus’ office building

69

Annual report 2017 Contracting Rail Infra & Utility Networks The Rail Infra & Utility Networks reported a good well-filled year with cluster has been renamed MOBIX. several projects for Infrabel and Tuc Along with ENGEMA, Louis Stevens Rail, and focused on strengthening & Co, ENGETEC and Remacom, the ‘Rail Caténaires’ activities by MOBIX also includes the company hiring new employees. The company José Coghe – Werbrouck, which started or continued several projects CFE Contracting acquired in involving the installation of cables December 2017. or overhead contact lines, and electrification works for Infrabel MOBIX thus sees its revenue increase throughout the country, in particular to over € 70 million in 2018 and in the Ghent, Brussels and Namur ENGETEC finished the splendid lighting of now positions itself as a global zones. the Belfry of Mons, which appears on the multidisciplinary contractor for UNESCO World Heritage List. rail-track laying and the installation In the Montage segment, ENGEMA of signalling and overhead contact finished the STEVIN project in the lines. Operating throughout Belgium Zeebrugge zone and worked on the from six business locations, the group Mechelen-Schelle, Jodoigne-Tienen also provides services to public utility and Breughel-Courcelles railway lines, companies, such as the installation as well as on the Moow tunnel for of fibre optic networks, high-voltage Fluxys in Antwerp. power lines, and the maintenance Remacom, which specializes in of street lighting, as well as the the laying and maintenance of installation of security systems for The lighting of our railway tracks, also worked on the fire detection and video surveillance renovation of railway tracks, rails built heritage is also systems. and switching points in Brussels, part of our stock in Ghent, Antwerp and West Flanders. José Coghe- Of those projects, the renovation of trade Werbrouck, another line L161 in the Schuman tunnel will be accompanied by heavy restoration ENGETEC, which emerged from the asset for the future of works necessitated by nearby ground amalgamation of ETEC and ENGEMA subsidence. Lignes, carried out various low and MOBIX medium-voltage aboveground and underground works and public José Coghe-Werbrouck, a firm Growth in signalling lighting contracts for Ores and Resa, specializing in railway works, is activities while at the same time starting up based in Hooglede and has a plant a railway signalling business unit. in Péruwelz. Its highly qualified In the area of signalling - a Further projects include the very workforce and extensive machinery growing activity - Louis Stevens & splendid lighting of the Belfry of constitute a perfect reinforcement. Co deployed its teams on Infrabel Mons, which appears on the UNESCO The firm has ten rail-road cranes, projects in Schaarbeek, Huy and in World Heritage List, the installation of special equipment to stabilize the the Denderleeuw and Dendermonde high-voltage cabins for ‘Les carrières ballast and prepare the rail tracks for zones. The firm also handled the de la pierre bleue belge’ in Soignies, railway traffic, and a state-of-the-art wiring of cell phone masts for Infrabel and the electrical installations of machine to replace railway switches. and worked on low and high-voltage various buildings in Walloon Brabant. cables and connections at Brussels Reinforcement of the Airport and on onshore wind farms. Caténaires segment The Telecom & Security activities were essentially focused on the In the area of signalling, ENGEMA and installation of surveillance cameras Louis Stevens & Co worked on several and security systems for the Belgian projects and began preparation work railway company SNCB as part of the for the ETCS Level 2 project on the anti-terrorism action programme, in Belgian railway network. The segment partnership with Siemens. specializing in overhead contact lines

71

Annual report 2017 Real Estate Development

In 2017, a new organization was through Inspiring Real Estate technologies connected with our set up within BPI that is better Developments’, drives us in everything activity, connectivity, mobility, adapted to the development of we do. It was therefore a logical flexibility, or more generally the our activity. The aim is to improve step to modernize and reinforce our adaptability of our projects to the coordination of all the projects corporate image and to make our rapid market change. and ensure a perfect view of their projects more visible on the market. development in keeping with the By the same token, our website rapid changes in market demand. In Connected to the was redesigned to become more Belgium, this organization was put customer-focused, with a search into practice with the appointment future development engine that makes it easier to match of two Heads of Development for supply and demand. Within two years of real estate the Brussels-Flanders and Brussels- we want to have our projects fully Wallonia axes. It is also reflected in digitalized: We keep close track of developments the successful reconfiguration of on the real estate market, which are our offices into co-working spaces • Marketing of our projects characterized, among other things, that optimize communication and (website, social networks, Google by a demand for more modular collaboration. referencing) and customer multi-purpose building solutions and follow-up, thanks to an online by concepts such as co-working, co- customer portal that allows our living, etc. Not only our new projects A new market customers to follow the progress currently going through the planning dynamic of their apartment, have access process take this into account; we to their documents such as are also well ahead in that respect in plans, notarial deeds, etc; projects that are already completed 2017 also saw the culmination of the or under construction. A case in point process of redefining our mission and • Design of our projects: we is the ‘Grand-Poste’ site in Liège, values through a rebranding that was have also set up an internal which we are transforming into a formalized at the end of the year. Our committee to reflect on multi-purpose building that satisfies mission, ‘Shaping Urban Harmony the implementation of new

72

Annual report 2017 Real Estate Development

the new expectations of the younger Favourable outlook on In conclusion, even though we must generations in the area of economic always keep an eye on the economic activity and professional life. all our markets or political factors that are likely to have an impact on our business, the The 2017 result is exceptional, thanks outlook is clearly favourable in the We enjoy the to the considerable advantage we present context. confidence of were able to take of the opportunities investors that presented themselves. JACQUES LEFÈVRE In Poland, BPI Polska was and remains BPI REAL ESTATE SA essentially present on the residential This year, BPI achieved its financial market. Sales of projects in progress independence from the group and are remarkably successful; two secured its own financial means major new projects were acquired, by issuing a bond and setting up and several others are in the corporate credit lines. The very course of being acquired in 2018. In good terms on which we were Luxembourg, BPI Luxembourg sold, able to accomplish that financial delivered, developed or acquired independence show that the investors several major projects – such as the appreciate the solidity of our position iconic ‘Entrée de ville’ in Luxembourg, on the real estate market and that which was won in a competition - they recognize the quality of our and shows good prospects of future projects. Our new identity will only residential and office projects. On strengthen that confidence of the the Belgian market, our projects are financial markets and so foster our also evolving positively in terms of future development. sales, progress of work, and planning permissions.

73

Annual report 2017 Real Estate Development

FREDERIK LESIRE FABIEN DE JONGE JACQUES LEFÈVRE HEAD OF DEVELOPMENT CHIEF FINANCIAL OFFICER OF MANAGING DIRECTOR BRUSSELS-FLANDERS-POLAND THE CFE GROUP

74

Annual report 2017 Artist impression of the Grand-Poste project in Liège, which will become a multi-purpose building that satisfies the new expectations of the younger generations in the area of economic activity and professional life.

MARIUSZ RODAK CATHERINE VINCENT ARNAUD REGOUT PHILIPPE SALLÉ HEAD OF BPI POLSKA HEAD OF LEGAL HEAD OF BPI LUXEMBOURG HEAD OF DEVELOPMENT BRUSSELS-WALLONIA

Steering Committee

75

Annual report 2017 Real estateEstate In Anderlecht, sales and construction of the iconic developmentDevelopment ‘Erasmus Gardens’ project continued, and the first phase will be delivered during the first quarter of 2018.

In view of the vigorous development of its mission over the past few years, BPI, which encompasses the group’s real estate activities in Belgium, Luxembourg and Poland, has reshaped its organization and renewed its corporate identity in order to take on more effectively the challenges of a market that has become increasingly competitive. This new corporate identity is reflected in a new logo, a new website and a graphic charter that is the same for the three countries, as well as a new company name, BPI Real Estate. The company also ensured its financial autonomy by setting up corporate credit lines and the successful issue of a €30 million bond.

Belgium

BPI has set up an organization closer to its At the same time, the company moved into Belgian markets by the appointment of two new offices that are more open and more Heads of Development for the Wallonia- flexible to permit a new way of working that In the Brussels area, BPI Brussels area and the Flanders-Brussels area. allows better communication and better Belgium successfully synergies between employees. continued the redevelopment of the former Solvay site in Ixelles with the sale and delivery of the last apartments in the ‘Ernest The Garden’ project. BPI’s new mission: ‘Shaping Urban Harmony Trough Inspiring Real Estate Developments’

A mission based on values that are put into practice on a daily basis: teamwork, customer focus, professionalism and responsibility, openness and transparency, commitment and passion.

76

Annual report 2017 Several fine residential BPI develops the first projects in the capital new-generation buildings in the Liège area In the Brussels area, BPI Belgium successfully continued the redevelopment of the former In Liège, the ‘Renaissance’ project (previously Solvay site in Ixelles with the sale and delivery known as Ernest 11), which is part of the of the last apartments in the ‘Ernest The redevelopment of the former university Garden’ project and sales of the ‘Ernest site of Val Benoit, made good progress. The Park’ project, work on which began Construction work has begun, and an in September. In Anderlecht, sales and 18-year lease was signed with Forem for a construction of the iconic ‘Erasmus Gardens’ building with 5,500 m² office space, which project, already accoladed ‘Best Sustainable is nearly 45% of the whole complex. It is the Real Estate Project’ in Belgium, continued, first high-quality office building in the Liège and the first phase will be delivered during area to meet the low-energy criteria. the first quarter of 2018. Construction and sales of the ‘Les Hauts Prés’ project in Uccle In Flanders, BPI sold the shares which it and of the ‘Voltaire’ project in Schaarbeek held in the companies developing the In Liège, the ‘Renaissance’ have started. project, which is part of ‘Oosteroever’ project in the port of Ostend the redevelopment of the (previously owned on a 50/50 basis) to its In Brussels, the Brussels Town Planning former university site of historical partner. This will allow it to reinvest Code (CoBAT), which constitutes the legal Val Benoit. in several major urban projects. BPI also framework for planning, urban development secured final planning permission for the and built heritage in Brussels, was reformed ‘Godskespark’ in Godsheide. and approved by the regional authorities. It will allow the creation of a clear framework Several other major projects in Belgium are for urban planning through the Master going through the planning process. Development Plan, and reopen the submission of planning and environmental applications for the mixed-use project ‘Victor’ in the Gare du Midi district, in the municipalities of Anderlecht and Saint-Gilles.

77

Annual report 2017 Real Estate Development

BPI Polska finished, with great commercial success, the fourth and final phase of the ‘Ocean’s Four’ project in Gdansk.

Luxembourg Attractive current and future projects throughout the Delivery of the ‘Kons’ and country ‘Glesener 21’ projects in The moderately priced housing units of the Luxembourg City ‘Domaine de l’Europe’ project, currently under construction, are selling very well. Certified BREEAM Very Good, the splendid The two phases of the 35,000 m² mixed- ‘Kons’ project opposite Luxembourg City use project ‘Livingstone’, developed in joint station was delivered in February 2017. venture, are now being marketed and are This mixed-use office, residential and retail attracting a lot of interest. Decontamination complex accommodates the headquarters and demolition works have begun. of ING Luxembourg, and the retail space is already fully let. Also in Luxembourg City, In the south of the country, work on the BPI Luxembourg undertakes the delegated mixed-use project ‘Fuussbann’, comprising The splendid ‘Kons’ project project management and sales of the 5,000 m² residential and 2,000 m² retail opposite Luxembourg City ‘Glesener 21’ project that was acquired space, began in 2017. Aldi acquired more station was delivered in by a private investor. Construction work than three quarters of the retail space. February 2017. began in 2016 and is now finished, and the building has been delivered. Silversquare, New acquisitions a firm specializing in the management of co-working spaces, has signed a 15-year BPI Luxembourg acquired two office lease and is now in the process of fitting buildings from the company Swiss Life with a out its offices. Furthermore, the sale of the floor area of 3,700 m² on the Route d’Arlon in ‘Rondriesch’ project to a private investor was Strassen. The building will be demolished and finalized. rebuilt in order to meet the current energy performance standards. BPI Luxembourg also won the ‘Entrée en Ville’ competition organized by the city of Differdange for a mixed-use project of 25,000 m² in the city centre.

78

Annual report 2017 The ‘Bulwary Ksiąźęce’ project along the river Oder made good progress, Poland A year of organic growth and sales are exceeding expectations. BPI Polska acquired two new projects in BPI Polska continued or joint venture: the ‘Vilda Park’ project in completed several attractive, Poznan and the ‘Ostroroga’ project in the Vola district of Warsaw. The site in Poznań mainly residential projects has been acquired, and construction and sales will begin in early 2018. In Warsaw, the Among those projects, BPI Polska finished, acquisition will be finalized during the second with great commercial success, the fourth quarter of 2018, once the seller has finished and final phase of the ‘Ocean’s Four’ project decontaminating the site according to our in Gdansk. The team was able to take full environmental standards. advantage of the favourable economic environment and the location near the sea, The local team takes special care in handling contributing to the total success of its first new developments. major project in Poland. See all our projects and stay up-to-date on In Wroclaw, the ‘Bulwary Ksiąźęce’ project BPI news on our new website: www.bpi- along the river Oder made good progress, realestate.com and sales are exceeding expectations. Delivery is scheduled for the second quarter of 2018. Construction and sales of the second phase have already been initiated to sustain the commercial dynamic. After having remediated the site in accordance with our environmental standards and our values, sales of the ‘Wola Libre’ project in Warsaw continue with success. BPI Polska will deliver this building during the second quarter of 2018 with much enthusiasm.

79

Annual report 2017 Editor Ann Vansumere Tel. : +32.2.661.13.97 [email protected]

Copyright for the pictures in alphabetical order: A2RC Architects Art & Build Architects CFE Polska DEME Jaspers Eyers & Architects Jonas Roosens Moreno Architecture PETITDIDIERPRIOUX ARCHITECTES Philippe van Gelooven Studio 100 Tom D’Haenens Yvan Glavie

Concept and realisation: Concerto Communication Agency Rue Washington 65 1050 Brussels

This annual report is available in French, Dutch and English. In the event of descrepancies between the editions, the French version shall prevail.

80

Annual report 2017