REMUNERATION REPORT 2018 REPORT REMUNERATION 018 2

REMUNERATION REPORT 2018 — 1 CONTENTS TABLE OF 9 7 5 3 REMUNERATION POLICY SUPERVISORY BOARD IN 2018 REMUNERATION POLICY APPLICATION OF MANAGEMENT FOR THEBOARDOF REMUNERATION POLICY INTRODUCTION

2 REMUNERATION REPORT 2018 — BOSKALIS REMUNERATION REPORT 2018 — BOSKALIS 3 INTRODUCTION advice tothemembers oftheBoardManagement. thatthisremunerationadviser doesnotprovide ascertained ofanindependentremunerationadviser andhas services The RemunerationCommittee regularlyavailsitselfofthe member. Ms. HaaijerjoinedtheRemunerationCommitteeasthird meeting oftheRemunerationCommitteeon15August2018, andMr.chairman Van derVeer asamember. Afterthe consisted oftwomembers,withMr. Van Woudenberg as At thebeginningof2018RemunerationCommittee MEMBERS OFTHEREMUNERATION COMMITTEE ‚ Boardon: the Supervisory It istheroleofRemunerationCommitteetoadvise THE REMUNERATION COMMITTEE DUTIES ANDRESPONSIBILITIESOF ‚ General MeetingofShareholders for adoption; Boardshallpresent thepolicyto The Supervisory Code2016(the “Code”). the Corporate Governance shall considerandincludeall mattersrequiredbylawand ratios withinthecompany. TheRemunerationCommittee pay connected withitandtaking intoaccounttheinternal value creationforthecompanyandbusiness long-term members oftheBoardManagement withfocuson theremunerationpolicytobepursuedfor concerning the submissionofaclearandunderstandableproposal

‚ ‚ ‚ Remuneration Committeeincluded: During theyearunderreviewactivitiesof Board. Committee werepresentedtotheentireSupervisory andfindingsofthemeetingsRemuneration Reports Code. Governance Committee isindependentinaccordancewiththeCorporate meetings. MorethanhalfofthemembersRemuneration The Committeealsoheldregularconsultationsoutsidethese with allmembershavingattendedeachofthemeetings. The RemunerationCommitteemetthreetimesduring2018, ACTIVITIES DURING2018 ‚ ‚ The Remuneration Committee applies fortheexecution ofits the executionof itsactivities. remuneration advisor toassistin commissioned an external In theyearunderreview, theRemunerationCommittee GROUP REVISION OFTHELABOR MARKETREFERENCE ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ ‚ survey thatwasexecutedin2017. survey incentive schemebasedontheoutcomeofaremuneration preparing aproposalfornewshare-basedlong-term who arenotmembersoftheBoardManagement; remuneration ofthemembersGroupManagement, discussing withtheBoardofManagement framework oftheRemunerationPolicy; amount andstructureoftheirownremunerationinthe members oftheBoardManagementwithregardto others notehasbeentakenofviewstheindividual accordance withthelawandCode,whereinamong individual membersoftheBoardManagementin theremunerationof submitting aproposalconcerning scenarioanalyses; performing developments intheNetherlandsandinternationally; staying abreastofthelatestcorporategovernance market; international policy forseniormanagementintheDutchand itselfofdevelopments surroundingremuneration informing shall beplacedonthecompany’sreport website. Board’s remuneration by lawandtheCode.TheSupervisory Committee shallconsiderandincludeallmattersrequired implemented inthepastfinancialyear. TheRemuneration ontheremunerationpolicy the preparationofreport regard totheamountandstructureoftheirremuneration; the individualmembersofBoardManagementwith Remuneration Committeeshalltakenoteoftheviews remuneration oftheBoardManagement, theproposalfor affiliated enterprise.Whenformulating carried outandthepayratioswithcompanyits criteriaused,thescenarioanalysesthatare performance the fixedandvariableremunerationcomponents, any event,covertheremunerationstructure,amountof remuneration policythathasbeenestablishedandwill,in The proposalshallbedrawnupinaccordancewiththe of individualmemberstheBoardManagement. theremuneration the submissionofaproposalconcerning AND REMUNERATION SURVEYS

propose anadjustmentintheremunerationpolicyfor Boardhaddecidedto 2017,thattheSupervisory Report Based onthis,itwasannouncedintheRemuneration incentivescheme. have ashare-basedlong-term In addition,moreand(AEXAMX-listed)companies variableelement. This asaresultofrelativelylowlong-term (P25). reference groupbeloworaroundthelowestquartile Management areincomparisonwiththelabormarket compensation packageforallmembersoftheBoard appropriate basicsalary, butthattheoveralldirect members oftheBoardManagementreceivean showedthatthe The outcomeofthisremunerationsurvey and circumstances. of Managementinlightthecurrentmarketdevelopments prevailing remunerationpolicyforthemembersofBoard In 2017,theRemunerationCommitteere-evaluated KPN andTKHGroup. , Arcadis,, Industries,OCI, DSM, ,SBMOffshore,Sligro,RELXGroup,PostNL, activities. ThelabormarketreferencegroupconsistsofBAM, ofsizeandbusiness companies thatarecomparableinterms Dutch(AEXandAMX-listed) is composedofamixfourteen remuneration activitiesalabormarketreferencegroup,that a share-based long-term incentive schemewillbe introduced. a share-based long-term Management will bebroughtmoreinlinewith themarketand wherein thelevel ofremunerationfortheBoard of Management totheAnnualGeneral Meetingin2020, adjustment intheremuneration policyfortheBoardof Board willscheduleanewproposalforan The Supervisory of Shareholderson9May2018. the backgroundofthisdecisionatAnnualGeneralMeeting oftheRemunerationCommitteeexplained 2018. Thechairman the agendaofAnnualGeneralMeetingShareholders in Boardfor for theBoardofManagementandSupervisory not toscheduletheproposalsadjustremunerationpolicy decided, incloseconsultationwiththeBoardofManagement, the generalinterestofcompany,Board has theSupervisory However, inviewoftheprevailing businessenvironmentand of remunerationinlinewithmarketlevel. Annual GeneralMeetingofShareholderstobringthelevel Boardtothe the remunerationpolicyforSupervisory Boardwouldproposeanadjustmentin that theSupervisory 2017itwasthereforealsoannounced Remuneration Report than themedianoflabormarketreferencegroup.In Boardisrelativelylower remuneration oftheSupervisory showedthatthe Board.Theresultsofthissurvey Supervisory calibrate thelevelofremunerationmembers to wasalsoperformed In 2017aremunerationsurvey 2018. applicable from1January incentiveschemewouldbeintroducedto long-term brought moreinlinewiththemarketandashare-based of remunerationfortheBoardManagementwouldbe Shareholders tobeheldon9May2018,whereinthelevel Board ofManagementtotheAnnualGeneralMeeting 4 REMUNERATION REPORT 2018 — BOSKALIS REMUNERATION REPORT 2018 — BOSKALIS Remuneration policy for the Board of Management 5 Variable Fixed remuneration Type of REMUNERATION PACKAGE FORMEMBERSOFTHEBOARDMANAGEMENT measures). performance (including pay-outlevelsand–whereapplicable package formembersoftheBoardManagement oftheremuneration The tablebelowprovidesanoverview ELEMENTS OFREMUNERATION Boskalis website(www.boskalis.com). The fulltextoftheremunerationpolicycanbefoundon consideration oftheriskstocompany. andnon-financialindicatorswithdue performance included thedevelopmentofresults,Boskalisshareprice theamountand structureoftheremuneration determining scenario analyses.Otherfactorstakenintoaccountin byperforming determined were analyzedandinpart fortheremunerationofindividualboardmembers long term) and outcomes ofthevariableremunerationelements(short ratios withinthecompanywereadheredtoandthatpotential and executingtheremunerationpolicy thatindefining The RemunerationCommitteeascertained clients, employeesaswellthe‘widerenvironment’. and takeintoaccounttheinterestsofBoskalis’shareholders, orientationandcontinuity which arecenteredonlong-term is consistentwiththestrategyandcorevaluesofBoskalis, 2011.Theremunerationpolicy Shareholders on21January Management wasadoptedbytheGeneralMeetingof The currentremunerationpolicyfortheBoardof THE BOARDOFMANAGEMENT REMUNERATION POLICYFOR

D. Long-term element D. Long-term element C. Short-term B. Pensionplan (xEUR1,000) A. Basicsalary Element ofremuneration - Realizingcorporate policy -  measured: Performance Period: - 50%individualtargets - 50%full-yearnetresult measure: Performance Period: — Period: Performance period&measures Share priceperformance 3years 1year 2018 individual performance, with payment of the short-term withpayment oftheshort-term individual performance, Boardsetstargetsforfull-yearnetresultand The Supervisory C –SHORT-TERM VARIABLE ELEMENT fiscal capofEUR105,075.Theretirementtargetageis68. schemewitha averageearnings indexed non-contributory pension fund.Pensionaccrualisbasedonaconditionally Boskalis pensionscheme,whichisadministeredbyPGB inthe The membersoftheBoardManagementparticipate B –PENSIONPLAN advisor.obtained byanexternal remuneration policyandcheckedperiodicallyusingdata labor marketreferencegroupinaccordancewiththe basedonthe isdetermined The amountofthebasicsalary A –BASICSALARY commercial achievements. strengthening ofthedivisionalactivitiesandspecific strengthening ofthedivisionaltopstructure,further objectives asdefinedfor2018.Examplesincludethe Boskalis’ strategicagendaandareinlinewiththecorporate objectivesare directlyderivedfrom Individual performance that therelevantproceduresarefollowedcorrectly. variableelementandisresponsible forensuring short-term ofthe auditorisinvolved inthefinaldetermination external ofquantity. solely interms net resultisdetermined The quantity (dependingonthespecifictarget),whilefull-year ofqualityand/or Individual targetsareassessedinterms variable elementsubjecttothesebeingmet. Maximum BoMmember: At targetBoMmember: Maximum CEO: At targetCEO: Maximum BoMmember: At targetBoMmember: Maximum CEO: At targetCEO: See tableonpage8 BoM member: CEO: Payout EUR805 EUR582or450 50%ofbasicsalary 50%ofbasicsalary

75%ofbasicsalary 75%ofbasicsalary 45%ofbasicsalary 45%ofbasicsalary 67.5%ofbasic salary 67.5%ofbasicsalary ensuring thattherelevantproceduresarefollowedcorrectly. variableelement andisresponsiblefor the long-term of auditorisinvolvedinthefinaldetermination The external corporate objectivesarelargelyassessedquantitively. shareholder valueisassessedqualitativelywhilethe were metoverthepastthree-yearperiod.Thecreationof bythedegree to whichthestatedtargets determined variableelement)is the ultimatescore(oflong-term Management and45%fortheothermembers).Establishing oftheBoard fixed annualincomeforthechairman is establishedequaltothe‘attarget’percentages(50%of periodabasicbonusamount oftheperformance At thestart period. performance andpriortotheendofthree-year prior tothestart ratio betweentheaveragesharepriceoverthreemonths ismeasuredbythe Sharepriceperformance performance. creation ofshareholdervalueisbasedonshareprice variableelementthatislinkedtothe of thelong-term The part variableelementsubjecttothesebeingmet. of thelong-term measurable/assessable targetsintheseareas,withpayment Boardsets senior staffdevelopment.TheSupervisory of thecompanyaswellCSRaspectssuchsafetyand corporate objectivesareachieved,suchasgrowthandresult long-term andtheextenttowhichcertain price performance variableelementdependsontheBoskalisshare the long-term (three-year)remunerationscheme.Theamountof long-term ina The membersoftheBoardManagementparticipate D –LONG-TERMVARIABLE ELEMENT further tighteneduptoreflect theDutchClawback Act. further in2014thecontractswere clause’). Wherenecessary (‘clawback of incorrectfinancialorother information variable bonusintheeventthese wereawardedonthebasis variableandthelong-term repayment ofboththeshort-term Board alsohastheauthoritytodemand The Supervisory periods. circumstances havearisenduringtheperformance Board hastheauthoritytoadjustpayoutifexceptional inconsistent withsoundbusinesspractice.TheSupervisory such awayasnottoencouragethetakingofrisksthatare variableelementarestructuredin variable andthelong-term thatboththeshort-term Boardascertains The Supervisory Boskalis’ strategicagenda. company. Thecorporate objectivesaredirectlyderivedfrom price andisthereforelinkedtothevaluedevelopmentof dependentontheBoskalisshare of Managementispartly This meansthatthevariableincomeofmembersBoard

Member oftheBoard T.L. Baartmans Chief FinancialOfficer J.H. Kamps Chief ExecutiveOfficer Dr. P.A.M. Berdowski of Management Members oftheBoard SEVERANCE PAY OFTHEMEMBERSBOARDMANAGEMENT LENGTH OFEMPLOYMENTCONTRACTS,TERMSOFFICEAND comply withtheCode. All contractsofthemembersBoardManagement severance payofthemembersBoardManagement. ofofficeand including thelengthofcontracts,terms the contractsofmembersBoardManagement, ofmainelements The tablebelowprovidesanoverview OTHER TERMSANDCONDITIONS ‚ ‚ ‚ * Annualbasicsalary Member oftheBoard B.H. Heijermans ‚ ‚ ‚ Supervisory Board. Supervisory ofthe the explicitpriorapprovalofchairman Positions outsidethecompanymayonlybeacceptedwith executives. No loans,advancesorguaranteesareextendedto car, expenseallowance). by thecompanyisinlinewithmarket(includingphone, employmentconditionsoffered The packageofsecondary 13-12-2019 Contract 4 years 4 years length 1 year until

Term of 4 years 4 years 1 year office Severance 1 year 1 year 1 year 1 year pay* 6 REMUNERATION REPORT 2018 — BOSKALIS REMUNERATION REPORT 2018 — BOSKALIS Remuneration policy for the Board of Management 7 execution ofBoskalis’ strategicagenda. achievedcontributed towardsthesuccessful performance 2018, 2017and2016,respectively. Assuchthe achievedin granted isappropriatetothe performance Boardtheremuneration In theopinionofSupervisory was paidoutaccordingly. was alsodeemedtobeinexcessofthe‘attarget’leveland variableelementovertheperiod2015-2017 The long-term element in2018. variable excess ofthe‘attarget’levelshort-term variable elementwereexceeded.Thisresultedinapayout in Management. During2017thetargetssetforshort-term to theremunerationofmembersBoard withregard The tableonthenextpageprovidesanoverview 2011. Meeting ofShareholderson21January with theremunerationpolicyaslastadoptedbyGeneral In 2018theremunerationpolicywasappliedinaccordance IN 2018 REMUNERATION POLICY APPLICATION OF ratio of23.35(2017:22.77). BoskalisB.V.Baggermaatschappij pay leadstoaninternal pension costs)perFTEoftheDutchemployees direct compensationcosts(includingbenefitsandexcluding excluding pensioncosts)dividedbytheaverageoftotal compensation costsoftheCEO(includingbenefitsand calculation methodhasbeenapplied:thetotaldirect payratiothefollowing In theapproachofinternal payratiowithinthecompany.considered theinternal the RemunerationCommitteehasinyearunderreview In connectiontotheapplicationofremunerationpolicy, INTERNAL PAY RATIO OVERVIEW OFTHETOTAL REMUNERATION OFTHEMEMBERSBOARDMANAGEMENT Chief ExecutiveOfficer Dr. P.A.M. Berdowski the yearconcernedxEUR1,000) (Payments madebythecompanyin Chief FinancialOfficer J.H. Kamps Member oftheBoard T.L. Baartmans Member oftheBoard B.H. Heijermans

2 2017 2 2017 2 2017 2018 2018 2018 2018 Year 016 016 016 582 remuneration 582 Basic salary Fixed Fixed 147 573 574 573 574 793 793 805

remuneration

483 291 291 Variable remuneration Short-term 541 352 313 235 352 235 -

remuneration

245 Long-term Long-term 649 463 423 301 423 301 376 245 -

561 320 279

243 150 Pension 205 148 148 150 35 allowances Other 28 28 28 28 31 31 28 28 31 3 1,657 1,658 2,572

1,296 1,299

1,935 1,935 1,286 1,289 1,841 1,841 Total 185

8 REMUNERATION REPORT 2018 — BOSKALIS REMUNERATION REPORT 2018 — BOSKALIS SUPERVISORY BOARD REMUNERATION POLICY 9 with thepolicyasadopted. remuneration policywasappliedinaccordance Shareholders on10May2012.In2018the Board wasadoptedbytheGeneralMeetingof The remunerationpolicyfortheSupervisory REMUNERATION POLICY SUPERVISORY BOARD Member oftheAuditCommittee oftheAuditCommittee Chairman Board Member oftheSupervisory (x EUR1,000) SUPERVISORY BOARD OVERVIEW OFTHEANNUALANDCOMMITTEEALLOWANCES FORTHE Member oftheSelectionandAppointmentCommittee oftheSelectionandAppointment Committee Chairman Member oftheRemunerationCommittee oftheRemunerationCommittee Chairman Chairman of the Supervisory Board oftheSupervisory Chairman extended to members of the Supervisory Board. extended tomembersoftheSupervisory not remuneratedinshares,norareanyloans,advancesorguarantees Boardmembersare expenses allowanceofEUR2,368.Supervisory Boardreceiveanannual In additionmembersoftheSupervisory

10 45 60 4 6 5 7 7

Royal Boskalis Westminster N.V. Rosmolenweg 20 PO Box 43 3350 AA Papendrecht The [email protected] T +31 78 6969000 www.boskalis.com