2 of 136 3 of 136 4 of 136 5 of 136 Table of contents Report of the Board of Management Introduction ............................................................................................................................................................................... 8 1. Profile of Ballast Nedam ................................................................................................................................................ 11 1.1 Who we are ........................................................................................................................................................... 13 1.2 What we do ............................................................................................................................................................ 15 1.3 How we do it .......................................................................................................................................................... 16 1.4 Our stakeholders ................................................................................................................................................... 17 1.5 Market trends ......................................................................................................................................................... 19 2. Business Review ............................................................................................................................................................ 23 2.1 Overview of 2020 ................................................................................................................................................... 23 2.2 Financial Results ................................................................................................................................................... 25 2.3 Outlook for 2021 .................................................................................................................................................... 26 3. Risk Management ........................................................................................................................................................... 29 3.1 Outline of risk management ................................................................................................................................... 29 3.2 Risk control process ............................................................................................................................................... 29 3.3 Risk mitigation ....................................................................................................................................................... 31 3.4 Relevant risks ........................................................................................................................................................ 32 4. Corporate Governance ................................................................................................................................................... 39 4.1 Management and control structure ......................................................................................................................... 39 4.2 Independent statutory auditor................................................................................................................................. 42 Report of the Supervisory Board 5. Supervisory Board ......................................................................................................................................................... 45 5.1 Report of the Supervisory Board ............................................................................................................................ 45 5.2 Financial statements and recommendation to the General Meeting ....................................................................... 46 Focus themes 6. Health, Safety and the Environment .............................................................................................................................. 48 6.1 Introduction ............................................................................................................................................................ 48 6.2 Safety strategy ....................................................................................................................................................... 48 6.3 Safety vision .......................................................................................................................................................... 48 6.4 Target value for 2020 ............................................................................................................................................. 48 6.5 Results .................................................................................................................................................................. 48 6.6 Safety initiatives in 2020 ........................................................................................................................................ 49 6.7 HSE action plan ..................................................................................................................................................... 49 6.8 Leadership, commitment and responsibility ............................................................................................................ 49 6.9 Safety in the supply chain ...................................................................................................................................... 50 6.10 Governance Code: ‘Safety in the Construction Industry’......................................................................................... 50 7. Corporate Social Responsibility (CSR) ......................................................................................................................... 52 7.1 Introduction ............................................................................................................................................................ 52 7.2 Commitments......................................................................................................................................................... 52 7.3 Stakeholder and materiality analysis ...................................................................................................................... 53 7.4 Sustainable Development Goals (SDGs) and IFC .................................................................................................. 53 7.5 Main CSR Themes for Ballast Nedam .................................................................................................................... 54 7.6 Social responsibility ............................................................................................................................................... 55 7.7 Good Employment Practices .................................................................................................................................. 56 7.8 Business ethics and integrity .................................................................................................................................. 58 8. Sustainability .................................................................................................................................................................. 60 8.1 Introduction ............................................................................................................................................................ 60 8.2 Sustainability targets and achievements ................................................................................................................ 60 8.3 Way of reporting .................................................................................................................................................... 64 9. Digital Transformation & Innovation ............................................................................................................................. 66 9.1 Introduction ............................................................................................................................................................ 66 6 of 136 9.2 Achievements in 2020 ............................................................................................................................................ 66 9.3 The near future ...................................................................................................................................................... 67 Consolidated Finanical Statements 10. Consolidated Financial Statements .............................................................................................................................. 69 10.1 Consolidated statement of financial position .......................................................................................................... 69 10.2 Consolidated statement of profit and loss ............................................................................................................... 71 10.3 Consolidated statement of comprehensive income ................................................................................................ 72 10.4 Consolidated statement of changes in equity ......................................................................................................... 73 10.5 Consolidated statement of cashflows ....................................................................................................................